www.nairobibusinessmonthly.com

COMPANY & INDUSTRY come the way you are - where hos- pitality meets inclusivity halfway

PROPERTY & INVESTMENTS a round up of recent exciting developments in the real estate sector POLITICS, POLICY & LAW LSK and jomo kenyatta: era coming forward brought when the society paid for its me back to myself P. 5 2 www.nairobibusinessmonthly.com colonial sins Vol 10 • Issue No. 2 • September 2020 | Ksh300.00 • Tsh5,000.00 • Ush8,000.00 • RFr2,000.00

CRISIS LOOMS IN FUTURE PENSION Recession strangles retirement savings as employers have suspended a total of Sh2.1b across the economy in contributions to schemes since March The perfect supply chain partner for your business

WHY CHOOSE US?

Industry experience Real-time cargo tracking Customer service focus Logistics lead-time reduction

We have invested heavily in We utilize a highly We understand our customers We have significantly reduced infrastructure and human sophisticated web-based needs and ensure that we our clients’ lead-time by pro- resources to match our cargo tracking system that practice good customer actively co-ordinating all the clients’ needs and changing links with major carriers – sea service logistics process from origin to supply chain requirements. freight & air freight. destination.

ACCELER TOWERS – 1st Freight Lane, Jomo Kenyatta Int’l Airport, P.O. Box 11364 - 00400 Nairobi, Kenya. Tel: 020-2427496 | 254 703 059 000(30 Lines) Wireless: 254 20 242 7255 Mobile: 254 720 607 070, 254 734 607 070 Fax: 254 20 827 128 Email: [email protected] tech@WORK

Africa should take a leaf Contents from China in technology and innovation Nairobi Business Monthly September 2020 P. 51

Briefing COVER STORY & FEATURES

COMPANy & INDUSTRY Lorna Safaris: Where hospitality meets inclusivity halfway P.14 EXECUTIVE ARENA: Gad Ouma, Managing partner, G.M Gamma Advocates P.20

CORPORATE SCENE Building Africa’s network P. 4 IFC partners with DTB to assist SMEs P.5 New Nanyuki Law Courts opened by the PROPERTY Chief Justice David Maraga P.6 & INVESTMENTS Unity Homes hands keys to buyers P.7 Development partners welcome Round up of exciting developments in move to mainstream alternative the real estate sector P.42 justice systems P.8 DATAVIZ: Banking sector p.11 TECHNOLOGY & INNOVATIONS CRISIS LOOMS IN FUTURE PENSION AS POLITICS,BUSINESS A windfall for fintech in Covid-19 RECESSION STRANGLES SAVINGS P.32 & LAW pandemic P. 48 The perfect supply chain LAST WORD: Realty of Africa’s harsh Era when the society paid for its colonial sins P.22 pest load P.60 SOCIETY partner for your business & CULTURE MONEY & MARKETS Bold WHY CHOOSE US? Business restructuring options P.38

Industry experience Real-time cargo tracking Customer service focus Logistics lead-time reduction Our neighborhood was ruptured by violence and We have invested heavily in We utilize a highly We understand our customers We have significantly reduced ruled by fear, and life as ENTERPRISE I’d once understood it had infrastructure and human sophisticated web-based needs and ensure that we our clients’ lead-time by pro- disappeared. resources to match our cargo tracking system that practice good customer actively co-ordinating all the & IDEAS clients’ needs and changing links with major carriers – sea service logistics process from origin to supply chain requirements. freight & air freight. destination. Why it’s customer experience that Seeking justice with social shapes perceptions of the brand in a service business P.46 Chanel Miller’s experiencemedia being P.52 assaulted P. 52 ACCELER TOWERS – 1st Freight Lane, Jomo Kenyatta Int’l Airport, P.O. Box 11364 - 00400 Nairobi, Kenya. Tel: 020-2427496 | 254 703 059 000(30 Lines) Wireless: 254 20 242 7255 Mobile: 254 720 607 070, 254 734 607 070 Fax: 254 20 827 128 Email: [email protected] September 2020 | Nairobi Business Monthly | 1 Editor’s Note

Nairobi Business Monthly

Nairobi Business Monthly magazine is published monthly by Al-Nur Media Africa Limited, Mayfair Office Suites, 1st Floor Suite A1, Parklands Road, P.O. Box 57731 – 00200, Nairobi, Kenya Email: [email protected] [email protected]

Why wasted 2020 has potential Published by Al-Nur Media Africa Limited Managing Editor of ruining a couple more years David Wanjala Staff Writers Victor Adar Antony Mutunga David Onjili airobi has remained a shell of its usual self during the day and a ghost town at night. Shadrack Muyesu Being Kenya’s capital and its heartbeat from where the rest of the country draws Contributors her life, it is an indication that indeed the entire nation’s economy is on its knees. Peter Wanyonyi Gad Wesonga Gilbert Ng’ang’a TheN otherwise bustling and vibrant streets are agonizingly slow, with crestfallen faces of a work- Jacob Oketch Kosta Kioleoglou force that is evidently worried of the uncertainty of their very survival. A city that has always been up and running as early as 3:00am, 24/7, now wakes up as late as 6:00am. Advertising and Marketing Manager Roselyne Okayo You can leave Embakasi by 6:30am on a weekday and be at the office in Parklands via Mombasa Business Executives road by 7:00am, 30mins later for what has normally taken not less than two hours before. No, it Meresha Ogutu Almasi Usama is not more for the 9:00pm - 4:00am curfew as it is for the reduced economic activity in the city. Design and Layout Save for fintech, most other sectors including education, health, hospitality, media, property, Denet Odhiambo and transport, are struggling, with many companies resorting to restructuring to maintain cash Circulation flow. A majority of the workforce is on unpaid leave. Those that are still working are mostly on The Newspoint - TNP pay cuts. Only a lucky few are still working on full terms. Administration Samah Hassan The heightened activity in the moving industry in the city in both the residential and commercial Fatma Yusuf segments bears witness to the fact that all is not well. Every other person is moving houses to cut Photography on costs. The same trend has picked up in office space with companies opting to constrict space NBM Library and save on rent even as they embrace the working from home phenomenon. Printing Emirates Printing Press, LLC, Dubai, UAE Besides, many other Kenyans, especially those that are on unpaid leave or who have lost their jobs and businesses, have opted, with extinguished savings, to move upcountry altogether. Sadly for Kenyans, it is a double tragedy with the entrenched kleptocracy in the bureaucracy, where those in position of power compete to wipe clean the coffers of funds set aside to mitigate the effects of the pandemic. Nairobi Business Monthly may not be copied and or transmitted or stored in any way or form, electronically or otherwise, without the prior and written consent of Even if the Covid-19 pandemic were to be conquered today, say by discovery of both cure and the publisher. Nairobi Business Monthly is published at Parklands Road, by Al-Nur Media Africa Limited, P.O. Box vaccine, it would take more than a year or two to bring life back to normalcy. I say this well aware 57731 – 00200, and Telephone 0735 701702, 0715 061658. Registered at the GPO as a newspaper. that there are many Kenyans out there whose course of life has changed forever with deemed All correspondence to the editor is assumed to be prospects of redemption. intended for publication. Nairobi Business Monthly admits no liability for unsolicited articles or pictures, which must be accompanied with a self-addressed, stamped envelope. Whilst every effort has been made to ensure the accuracy of the information contained in this book, the authors, publishers and editors accept no responsibility for any loss, financial or otherwise, sustained by any person using this publication. No David Wanjala part of this publication may be reproduced, stored MANAGING EDITOR in retrieval systems or transmitted in any form by any means, without prior written permission of Nairobi — [email protected] Business Monthly. All rights are reserved.

2 | Nairobi Business Monthly September 2020 WE'D LOVE TO HEAR FROM YOU: Send your letters to, [email protected] Submission of a letter constitutes permission to publish it in any form or medium. Letters may Mailbox be edited for reasons of space and clarity.

DISCLAIMER: Letters submitted to Nairobi Business Monthly Magazine are presumed to be intended for publication. The editor reserves the right to edit them. Readers are advised to submit their names and addresses even when these are not to be published. email: [email protected]

www.nairobibusinessmonthly.com

COMPANY & INDUSTRY BUSINESS UNUSUAL AS LENDERS RETHINK THE AUCTION PATH

PROPERTY & INVESTMENTS RESIDENTIAL REPORT: PRICE, RENTAL YIELDS AND MARKET UPTAKE

EXPERT OPINION WHY SOME THINGS CAN BE TACKLING COVID-19 SOCIO- ECONOMIC CHALLENGES P. 5 2 www.nairobibusinessmonthly.com MONETISED; PERSONAL DATA SHOULD NOT BE ONE OF THEM Vol 10 • Issue No. 1 • August 2020 | Ksh300.00 • Tsh5,000.00 • Ush8,000.00 • RFr2,000.00

Comments on our stories and topical issues THE STRUGGLE OF KEEPING KQ IN THE SKIES AMID COVID-19 HEADWINDS The industry faces its gravest crisis. Within a matter of a few weeks, our previous worst-case scenario is looking better than our latest estimates. Without immediate government relief measures, there will not be an industry left standing Users should have a say on how their — IATA director-general and CEO Alexandre de Juniac information is being used. In addition, organizations that need some of the user’s data, need to ensure it is safe from hackers to avoid the issue of sensitive data ending in the wrong hands. – Steven Wekesa, Nairobi

Personal data should not be monetised importance and how it can improve their option, and most papers are going that route Not long ago was oil the most valuable daily operations. Fast forward to the future especially during this coronavirus age. I hope product in the world as countries raced to and a similar rule applies. However, this the plans will change after the pandemic and have as much of it as possible. But that is time, it is all of digital technology. Technol- publishers will revert back to hardcopies for no longer the case thanks to technology. ogy is key nowadays and for businesses to the traditional type who believe in seeing Information has taken the top seat; it is now survive and grow they have to integrate it the actual paper, and exchanging a copy with the most valuable product. Organizations in their systems. COVID-19 particularly has colleagues and friends. A hardcopy is quite have offered products to users in exchange taught the world the usefulness of technol- easy to handle. Sometimes I take screenshots of their data such as where they are located, ogy at a time when movement is minimized. of the online version to be able to read later their purchasing patterns, and preferences. In order to not only survive but reach a bigger but it’s tiring. I enjoy reading your magazine With organizations like Facebook continuing audience, digital technology is the way to go. and I hope you will take a bold and unique to amass more data, it is important to ensure Lilian Mungai, Nairobi step to produce both the soft and hard copies they do not monetize it. Users should have a after the pandemic. I think a hardcopy is still say on how their information is being used. Auction story timely the real deal. In addition, organizations that need some of I didn’t know lenders cannot auction some- David Omondi Nyamor, via email the user’s data, need to ensure it is safe from one’s property at less than 75% of the value. hackers to avoid the issue of sensitive data Thanks for bringing it out. Good piece, quite ending in the wrong hands. an eye opener. Steven Wekesa, Nairobi Kevin Kadipo, Nairobi. LIKE US facebook.com/ Technology a boost to enterprises Hardcopy still dominant nairobibusinessmonthly We all know that when the telephone was It’s been a while since I read a hardcopy FOLLOW US invented, it took time before it was widely of your magazine. I have been reading the twitter.com/@ accepted. As time went by, people saw its digital versions because that’s the only nairobibusiness

September 2020 | Nairobi Business Monthly | 3 Briefing A snapshot of the business world

Building Africa’s missing network “We designed this service to be as easy-to-use as possible. A smart- phone user will get free connec- assava Fintech Interna- tivity on-the-go through accessing tional (CFI) and the Liquid the #SasaiWi-Fi Finder network to C Telecom Group (LTG) have download the Sasai App and gain launched Sasai Wi-Fi Finder, a access to a wide range of in-app potential game-changer in driving services,” said Tapera Mushoriwa, digital and financial inclusion in chief operating officer of Sasai. Africa. The service, which will be “When a new smartphone user offered across the Continent was has registered on the Sasai App, or announced mid August and is set to when an existing Sasai App user be rolled at thousands of hotspots opens the App, they receive auto- across Africa. matic notification “pop-up” alerts Cassava FinTech is a pan-Afri- showing available #SasaiWi-Fi can business using an integrated Finder hotspots nearby. They also model to drive financial inclusion receive additional services, such and digital transactions across the as distinct indoor and outdoor continent. Its core operations are Wi-Fi hotspot markers, direc- in Mobile Money, Social Payments tions to Wi-Fi hotspots, session Services, Digital Banking, Inter- usage, range and signal strength national Remittances and Mobile details – making it easier than ever Micro Insurance with a presence in before for African users to access Zimbabwe, South Africa, Burundi, the Internet,” Mushoriwa said. Lesotho and the United Kingdom The Sasai Wi-Fi Finder will allow as well as partnerships in other greater connectivity in a variety of African countries locations, including retail, health A 2019 report by the Global build ‘Africa’s Missing Network’ A smartphone care, education, government and System for Mobile Communica- through partnering with broad- user will small business trade facilities. tions (GSMA) shows that afford- band providers, Internet Service get free The App will also give millions of ability remains a significant Providers and local community connectivity on-the- Africans access to social, enter- barrier to Internet adoption in hubs,” Mandivenga said. go through accessing tainment and on-demand servic- Africa, resulting in social, digital “We’re proud that our best-in- the #SasaiWi-Fi es offered on the Sasai super App, and financial exclusion. This part- class broadband infrastructure Finder network to including Sasai Moments. nership seeks to offer a low-cost network is the backbone of this download the Sasai The partnership between CFI solution for connectivity and to service and is enabling more App and LTG will see the rollout of the expand these services throughout Africans to access the digital and Sasai Wi-Fi Finder in Zimbabwe, the Continent. financial benefits of the Internet,” of the transformative power tech- Kenya, Tanzania, Uganda, Rwanda, “We see this launch as a critical said Ahmad Mokhles, group chief nology can have across the value Democratic Republic of Congo and piece in the social digital inclusion operating officer of LTG. chain,” said Mokhles. South Africa in phases over the agenda we are driving on the Conti- “This partnership is providing The intuitive and easy to use coming months. nent,” said Darlington Mandiven- consumers with affordable Wi-Fi Sasai Wi-Fi Finder will be an in-App The Sasai Wi-Fi Finder is acces- ga, CEO of the CFI Group. “Through access while local franchisees and feature on the Sasai super App that sible and available by download- Sasai Wi-Fi Finder, we plan to partners are able to grow their busi- will allow users to identify hotspots ing the Sasai super App from the establish an expansive network of nesses and the economies of their at which they can access affordable Google Play store or the Apple data access points across Africa and countries. This is a true example data. Appstore.

4 | Nairobi Business Monthly September 2020 DATASTREAM 13 mn 60,800 4.36% The number of Africans expected Acorn Group, Questworks, Century Developments Kenya’s inflation rate as of July 2020 to fall below the poverty line at the Ltd/Kuramo and the Kenya Defence Forces Old which is the lowest since it stood at end of this year due to the pandemic Comrades Association (Defoca) cumulatively plan similar percentage in September 2019 according to World Bank to deliver 60,800 student units in the Nairobi as per data from the Central Bank of Metropolitan Area over the next five years. Kenya

IFC partners up with DTB to assist SMEs

MoneyGram partners with Airtel to extend reach

nternational Financial Corporation also speed the process of recovery,” irtel Africa has partnered up momentum in Africa, and further I(IFC), the private investment of the he said. with MoneyGram Interna- accelerate our digital growth across World Bank Group has partnered According to Nasim Devji, DTB A tional, an American money the globe,” Gely said. up with Diamond Trust Bank Kenya Group CEO and managing director, transfer company, to enable its On the other hand, Raghunath Limited (DTB Kenya) to support SMEs should take advantage of the customers to receive their money Mandava, Airtel Africa CEO said small and medium-sized enterprises facility. transfers straight to their mobile that the company was delighted to (SMEs) struggling under the biting “We are aware that small busi- money wallet. work with MoneyGram to provide effects of the Covid-19 pandemic. nesses are among the hardest hit by The partnership will allow its millions of customers with fast, The move has seen IFC issue DTB the pandemic, therefore this facil- customers to immediately access secure, and convenient options Kenya a loan worth $50m (Sh5.4b) ity will enable us to support SMEs to their money which they can use to receive and send money as well to help SMEs in various sectors address their cash flow challenges, virtually or withdraw by convert- as access their funds from a vast such as financial institutions, tour- which is a key concern as businesses ing to cash at any Airtel branch. distribution of exclusive kiosks, ism, manufacturing and healthcare. need easy access to short-term li- This will be helpful to the over 19 agents and branches at their The funds will help with the short li- quidity. We urge our SME borrowers million Airtel money users. Apart convenience. quidity needed by most SMEs in this to take advantage of the facility to from this, the move is also expect- “This is a significant step period. ensure their survival during these ed to strengthen the presence of forward in our ambition to trans- Manuel Moses, IFC country man- tough times, as we remain commit- MoneyGram in Africa. form lives through greater finan- ager for Kenya, believes that the ted to their development,” she said. According to John Gely, Head cial inclusion and empowerment partnership between the two parties This credit, as well as the one giv- of MoneyGram Africa, this part- across the Continent. Maximizing goes hand in hand with the institu- en to Equity Bank Kenya recently, is nership with Airtel will enable access to global remittances is a key tions’ agendas. part of IFC’s $2b (Sh216b) set apart millions of consumers instant part of this – even more so given “IFC’s partnership with DTB Kenya from the working capital solutions’ access to our global platform to the disruption and economic hard- is part of our strategy to help busi- program to allow banks in emerg- receive money from over 200 coun- ship faced by many because of the nesses in Kenya manage the impacts ing markets to loan to SMEs. IFC set tries & territories without having COVID-19 pandemic,” he said. of COVID-19 so they can continue it apart out of its $8b (Sh864b) for to even step outside. This move comes after a merger providing essential goods and ser- the COVID-19 Emergency Response “We are excited about how this between Airtel Kenya and Telkom vices. IFC is committed to helping working capital solutions (WCS) customer-centric partnership with Kenya collapsed. Airtel Kenya has countries across Africa meet the envelope to address working capi- Airtel will expand our mobile wallet continued to set its limits higher unique challenges of COVID-19 and tal needs during the pandemic. capabilities, build upon our strong in order to expand.

September 2020 | Nairobi Business Monthly | 5 Briefing INSIDE▶ A MODEL COURT

In quest to improve experience of court users

he Chief Justice, Mr David Maraga has opened the new T Nanyuki Law Courts Building in what he termed as a represen- tation of the new direction the Judiciarry is taking in the design and construction of ultra-modern facilities that will greatly improve the experience of all court users “What we have here today is a model High Court building, the first of the type that is being replicated in other places such as Kakamega, Kapenguria, Voi, Maralal, Ol Kalou, Kwale, Mombasa and Garissa,” the CJ said in his address during the launch late August, adding that there are many unique elements to it. Its design, he said, benefitted immensely from consultation Chief Justice David Maraga on Friday, August 28, 2020 officially opened new Nanyuki Law Courts with Judiciary key stakeholders building. He was flanked by Laikipia Governor H. through the Court Users Commit- E. Ndiritu Muriithi and other county leaders. tees. As a result, the premises also host offices for all key justice sector partners such as the ODPP, Prisons, suspects, judicial officers, judicial Several other called up. Eventually, we will even Probation and the Police. staff and for members of the public. courts in this have screens at the waiting bay so The design also incorporated The building, which has eight project are that you see the order of your case many features that safeguard the courtrooms and 12 chambers, now complete, and scrolling down on the screen, just dignity of all court users, includ- has many other unique features, we will be launching like it happens at the airport as you ing suspects. As such, the court such as an Advocates’ lounge and a number of them in wait for your flight,” the CJ added. has segregated cells with separate another one for use by judges and the coming weeks He thanked the World Bank who, facilities for the police and prisons, magistrates. In further pursuit of “through the Judicial Performance with each of them having separate greater convenience for all court Improvement Project, has funded cells for male and female as well as users, there is a lactating room the construction of this court at the for juveniles, which are also sepa- for members of the public, and a ity of service being similar to what sum of Sh318.5m. Several other rated into male and female. separate one for members of staff. you see in a typical banking hall. courts in this project are now Another distinct feature is “We aim to put in place a modern You pick a token for the specific complete, and we will be launch- enhanced security, with sepa- Huduma Centre that will be heavily service you require, then sit down ing a number of them in the coming rate entrances for inmates and supported by ICT, with the qual- and wait for your number to be weeks”.

6 | Nairobi Business Monthly September 2020 Briefing

JUSTICE: Alternative systems P.8

The formulation of the Policy marks an important milestone in Kenya’s endeavour towards the protection of the right to access to justice

UK High Commissioner presents keys to Unity West homes are built with the modern family in mind, in an Unity West owners environment that allows children to flourish. The Unity West commu- nity enjoys 24-hour security, and nity Homes have handed Unity West’s two-bedroom inspiration is driven by the desire a fitness centre, two-acre commu- over keys to buyers of the apartments start at Sh4.75m ($44, to see as many Kenyans as possi- nity park with jogging tracks and U first block of apartments 000), placing them within reach ble access good housing in a safe, a playground, swimming pool, at Unity West, only one year after of middle-income earners. The secure and modern environment.” coffee shop and a mini market breaking ground on the Sh4.5b units are part of a plan by Tatu Officiating at the key handover are under development. Unity project at Tatu City. City to partner with leading Kenyan ceremony, British High Commis- West is near Tatu Central, the new Situated along Tatu City’s first homebuilders to construct more sioner Jane Marriott said: “Unity city’s business district, and Tatu main road – the TC-101 – the than 30,000 homes at the 5,000- Homes have gone from strength Industrial Park, the largest new British-Kenyan venture’s first acre new city, which is a major to strength. The completion of logistics zone in East Africa. This 48 units are spread across four private sector contributor to the the first collection of units here in assures the buyers steady apprecia- blocks, with 12 apartments each. Government’s housing agenda. Tatu City is a testament to the UK’s tion in property value and a quick Another 48 units will be handed “One year after breaking ground, partnership on affordable housing. return on investment, said Latham. over to owners in October, and the Unity Homes has achieved its goal This provides Kenyans with qual- “More than 5,000 homes are occu- entire 384-unit first phase of the of delivering accessibly priced ity, eco-friendly homes in support pied or under construction and project will be completed by the housing,” said John Latham, execu- of His Excellency President Uhuru development at Tatu City, with end of 2022. tive director of Unity Homes. “Our Kenyatta’s Big Four agenda.” prices to suit all incomes. We congratulate Unity Homes on its success in delivering high-quality, accessible homes on schedule,” said Evans Dimba, country head for Rendeavour, Tatu City’s owner and developer. According to the National Housing Corporation, Kenya has a cumulative housing deficit of two million units growing by 200,000 units per year driven mainly by rapid population growth of 2.6% per annum compared to the global average of 1.2%, and a high urbani- sation rate of 4.4% against a global average of 2.1%. With this shortfall, approximately 70% of which is in the low-to-middle income bracket, the Unity Homes project is contrib- uting to the Government’s Big 4 Agenda goal of creating 500,000 new homes by 2022.

September 2020 | Nairobi Business Monthly | 7 Briefing INSIDE▶ DISPUTE RESOLUTION

Partners welcome move to mainstream alternative justice systems

he European Union and the effect to Article 159(2)(c) of the assisted with the policy and Baseline Policy, including councils United Nations Office on Constitution, which is the legal framework drafting processes, of elders, civil society organisa- T Drugs and Crime (UNODC) and constitutional framework on staging more than eight working tions and court users committees, have welcomed the launch by Chief the multiple systems for dispute retreats and discussion forums, and are now expected to be instru- Justice David Maraga of a major resolutions in Kenya.” and communications support mental in operationalising it. policy to mainstream customary EU Ambassador to Kenya, Mr. including video production, graph- A Justice Needs Survey conduct- forms of justice. The two were key Simon Mordue said he hoped the ic design and printing services. ed in 2017 suggested that up to 95% partners in the policy’s develop- AJS Policy would have far- reaching In upholding international of disputes in Kenya were resolved ment. consequences in fostering effective standards and norms, UNODC has through informal and non-state- The Alternative Justice Systems access to justice for all Kenyans. taken great interest in the policy’s based means outside the confines (AJS) Baseline Policy and associated “What’s being launched today intent and content, for example, on of courts. These informal means policy framework were symboli- is a cornerstone policy for Kenya, such aspects as protection of the include a myriad of dispute reso- cally released on Katiba Day on the one that will ultimately bring most vulnerable and the nature of lution processes of which AJS is 10th anniversary of the promulga- customary and traditional means cases appropriate for AJS, includ- just one. tion of the Constitution of Kenya. of dispute resolution from the ing contributing to the debate on One specific PLEAD target is The Constitution obligates the periphery into the mainstream cases of sexual and gender-based to achieve a 50% reduction in Judiciary to promote traditional and recognize the legitimate place violence. the backlog of criminal cases by methods of dispute resolution. of alternative systems in contem- “It’s been a privilege for UNODC 2022. By dealing with appropriate For the past two years, the EU porary justice administration in to partner with the AJS Task Force disputes quickly and more cost- and UNODC have supported the this country,” Ambassador Mordue and the EU in the complex process effectively, AJS is seen as an effec- Judiciary and its multi-stakeholder said. of developing the baseline policy tive mechanism for reducing case Task Force on the Traditional, “I urge decision makers to put and framework,” the UNODC backlog in the courts. Informal and Other Mechanisms the necessary structures in place to regional representative for East- AJS may be defined as the admin- for Dispute Resolution in Kenya ensure the success of AJS mecha- ern Africa, Dr Amado Philip de istration of justice by the people (AJS Task Force) with formulating nisms and processes, as envisioned Andrés, said. using their culture, customary law, the policy and determining the in the Constitution and under- “The process of mainstreaming practices and beliefs to resolve viability and concrete means of scored by the Taskforce,” he added. AJS has received a boost today, but disputes. It is a form of restora- mainstreaming AJS. As key partners to the Judiciary much remains to be done to ensure tive justice, aims to ensure social Speaking at the launch at the in this policy’s development, the the policy is fully adopted and inclusion, and is generally more Supreme Court, the Chief Justice, EU and UNODC have provided that the strategic objectives and affordable, participatory and more David Maraga said: “The formu- wide-ranging support through overall recommendations of the expeditious than court processes. lation of the Policy marks an the Programme for Legal Empow- Task Force are addressed. UNODC Alternative justice processes important milestone in Kenya’s erment and Aid Delivery in Kenya remains committed to supporting help to reduce the burden on courts endeavour towards the fulfill- (PLEAD). the full adoption of the policy,” Dr and are meant to strengthen the ment, respect, observance, promo- This has included engaging de Andrés added. links between formal and informal tion and protection of the right to several expert consultants who Kenyans from all walks of life justice systems rather than replace Access to Justice. The Policy gives reinforced the Task Force and have contributed to shaping the AJS the reliance on courts.

8 | Nairobi Business Monthly September 2020 Briefing

THE PRESIDENCY: WINNING THE WHITE HOUSE P.12

Why the U.S.A’s elections winner must secure stable relations with China.

Election and weak dollar bitcoin ‘high-octane’ drivers

he U.S. presidential election country, such as Bitcoin and gold. and the weakness of the dollar “Bitcoin is currently realising its T will be “high-octane drivers” reputation as a form of digital gold. for the Bitcoin price for the rest of Up to now, the precious metal has 2020, affirms the CEO of one of been perceived as the ultimate safe- Superior Homes Kenya appoints the world’s largest independent haven asset, but Bitcoin - which financial advisory and fintech shares its key characteristics of Shiv Arora CEO organisations.The prediction from being a store of value and scarcity he Board of Superior Homes Shiv to Superior Homes,” said Ian Nigel Green, chief executive and – could potentially knock gold TKenya has appointed Shiv Arora Henderson. “His track record, depth founder of deVere Group, comes as from its long-held top spot as in the position of chief executive of international and local experience the election campaigning moves the world becomes driven by the officer, effective August 2020. The with Citibank, Britam Asset Managers into a critical phase after Joe Biden tech revolution.”Decentralized, CEO position has been created to and Cytonn, and his passion around formally accepted the Democratic non-sovereign, secure digital drive the future growth of Superior joining our growing business make nomination.It also follows the currencies, including Bitcoin, he Homes, who plan to announce two him an ideal leader. Superior Homes dollar hitting a two-year low last says, will become more attrac- new projects before the end of this Kenya has developments in Nakuru week over concerns about the tive to investors as they will offer year, in addition to their ongoing real County, Machakos County and Kilifi health of the U.S. economy. a hedge against turbulence in estate development projects on over County, and is the leader in master- “Bitcoin is already one of the traditional markets.He says that 150-acres. planned real estate developments in best-performing assets of the year, printing of historic sums of heli- Shiv Arora is a well-rounded, East Africa. We are excited to have up around 70% year-to-date. We copter money that’s pushed into seasoned and entrepreneurial pro- Shiv take the business to even greater can expect the world’s largest cryp- the financial system has devalued fessional in the real estate and in- heights.” tocurrency to be further fuelled for the dollar and prompted inflation vestment industry, with experience In his part, Mr Arora said he had the rest of 2020 by the U.S. presi- fears.“You can’t just print Bitcoin. spanning across banking, investment been a fan of Superior Homes for dential election and the weakness The greenback could be in for a management, private equity and long, and had watched the company of the U.S. dollar, which will serve short-term boost, but in the longer real estate. Shiv will take to Supe- grow over the last decade to the lead- as high-octane price drivers,” term there are expectations it’s on rior Homes his extensive experience ing master planned real estate de- says Mr Green, adding that a U.S. a downward trajectory and that it in general management, the abil- veloper in East Africa. “The concept, presidential election always stirs could ultimately lose its global ity to recognize a good opportunity, quality and delivery model are one uncertainty – but 2020 is seen by reserves status – and this environ- translate it into effective strategy with great potential for continued many as particularly important as ment will provide a powerful boost and action, engage with teams and growth and development, in Kenya not only will whoever wins be the for the price of Bitcoin.”This explo- stakeholders, and deliver the oppor- and also in East Africa,” he said. CEO of the world’s largest economy, sive combination together with a tunity. In addition, Superior Homes In addition to the announcement they will be in that role as the world growing number of millennials will benefit from his experience of of Shiv Arora as Chief Executive Offer, economically re-adjusts following and Gen Z investors moving into developing businesses, establishing Superior Homes also announced the the global fallout from coronavirus. digital assets could provide the corporate structures, strong govern- completion and handing over houses As uncertainty heightens, Mr perfect landscape for a multi-year ance practices, and organizational to over 500 families in their Green- Green argues, investors will pile bull market,” he notes, concluding development. park development along Mombasa into safe-haven assets, in particu- that history will show that 2020 was “We are delighted to welcome Road, which are now occupied. lar those not tied to any specific a breakout year for Bitcoin.

September 2020 | Nairobi Business Monthly | 9 Briefing

MILESTONE: MORE INSIDE▶ World Wide Web Foundation apoints new director P.13

as well as a profitable long-term Sanlam invests in tech-innovations to business “in-force” book were key contributors to this. navigate Covid-19 pandemic Innovation and an enhanced customer value proposition are expected to continue supporting ocal non-bank financial solu- Sanlam Kenya Group the group’s performance in the CEO, Dr Patrick Tumbo tions provider Sanlam Kenya future. The long and short-term L has reiterated plans to step up insurance businesses imple- its innovation function to mitigate mented online selling while the the impact of Covid-19 on it’s busi- short-term business transitioned ness. to a paperless environment in In its half-year trading results its underwriting and claims released mid August, the Nairobi functions. The business has also Securities Exchange (NSE) listed managed to on-board some of firm, posted a Sh99.1m after-tax its strategic partners onto digital loss down from a Sh639.6m after- platforms in a co-creative process. tax profit posted within the same Cash and cash equivalents period last year. The firm realized improved from Sh1.67b to Sh1.75b a Sh136m pre-tax loss down from in the current year while solvency a Sh937m pre-tax profit posted in the insurance subsidiaries within the same period the previ- improved compared to the same ous year. period last year, with the long-term Speaking when he released insurance business exceeding the the results, Sanlam Kenya Group prescribed limits. CEO, Dr Patrick Tumbo said that As part of Sanlam’s Covid-19 the half-year under review was Response Plan the Group has set challenging to all segments of the up a Crisis Management Team that economy and this has continued monitors Covid-19 developments in the second half of the year. “The and has developed a response plan Coronavirus pandemic affected the to ensure that Sanlam custom- supply of goods and services as well ers, staff and other stakeholders as consumption at all levels, both are protected. The key pillars of locally and globally. Corporate associated with the resolution of mance reflects the current state of the plan are to ensure that the earnings were greatly affected in the pandemic and severity of its the operating environment albeit customers receive uninterrupted key segments of the economy, such economic and social impacts, Dr with an improvement in its busi- service, staff and agents are safe as manufacturing, agriculture, Tumbo confirmed that the Sanlam ness fundamentals. and protected with the implemen- transport, hospitality and financial Kenya Board had decided to set Gross written premium in the tation of remote working and that services. The insurance industry aside additional reserves to miti- first half of the year improved the highest levels of safety precau- was not spared as the knock-on gate against future shocks. by 17% compared to the previ- tions are upheld at office premises effects in other segments reduced He noted that the capital markets ous year. Short term insurance countrywide. the ability of both corporates and had also been significantly affect- (Sanlam General) improved by With an improvement in the individuals to spend on insurance. ed, with the various stock indices 35% compared to the previous current business fundamentals Experts have revised the economic depreciating in value over the first year, while long term insurance on revenue, cash flows, under- growth projections for the Country, half of the year. “All these elements (Sanlam Life) posted a 10% growth writing results and solvency at pointing to a possible contraction have had a negative impact on our over the previous year. Sanlam half year, the Group is poised in GDP by 1% in the current fiscal performance including foreign General and Sanlam Life posted to weather the challenging year with recovery only expected exchange losses arising from our after-tax earnings of Sh73m and economic environment in 2020 in 2021,” he said. US$ denominated credit facility.” Sh229m respectively. Short term and post better results in 2021 and Considering the uncertainty Overall, the Group’s perfor- insurance underwriting profits the long term.

10 | Nairobi Business Monthly September 2020 Briefing

MONEY & MARKETS: Business restructuring options P.38

DATAVIZ Kenyan banking sector BUSINESS BAROMETER 11.27% Member deposits in Kenya’s savings and credit co-operative societies grew by 11.27% to Sh380.44b last year, the slowest pace in seven years. The performance marked a fifth straight year of slowdown in deposits. If prolonged, the trend may result in higher cost of borrowing since deposits is a key source of lending to members.

Kenya remains over banked as the number of banks are relatively high as compared to the population.

Source: Cytonn

QUOTED:

100kWh Kenya Power will increase charges for consumers using less than 100kWh per month to Sh12.5 per unit up from Sh10 if its application to the Petroleum Regulatory Authority over the same is approved. The company will also increase costs for customers who use over 100 units per month to Sh19.53 per unit up from the current The implication of the capital Sh15.80, a move that will push electricity sufficiency with adequate buffers prices by up to 20%. means that the banking industry has remained a key line of defence in the Sh710.24b According to the Central Bank of Kenya, economy when it comes to responding transactions settled through the Kenya Electronic Payments and Settlement to the current economic slowdown System and Real Time Gross Payment System, well known as KEPSS/RTGS, for the first six months of the year grew 4.79%, or — Kenya Bankers Association CEO Habil Olaka on Sh710.24b, year-on-year to Sh15.54trn. The  rise was slower than 6.26%, or Sh874.02b, the rising banking sector’s deposits. posted in the corresponding period in 2019 when payments amounted to Sh14.83trn.

September 2020 | Nairobi Business Monthly | 11 Briefing INSIDE▶

Why U.S.A’s elections winner StanChart extends credit must urgently secure stable to hospitals relations with China oe Biden or Donald Trump – lems, and contribute to stopping Jwhoever is the President of the human-rights abuses and military United States come November, interventions.” their ultimate challenge is to secure But there is another major reason, “stable relations” with China which says the deVere CEO, why moving to- would win an all-out trade war, warns wards amicable relations with China Nigel Green, CEO of deVere Group, an cannot go unmet by the incumbent independent financial advisory and or the challenger. fintech organisation. “A de-escalation in U.S-China Mr Green says: “Managing China tensions must be a top priority for tandard Chartered has adequate pre-screening process and maintaining America’s fragile whoever is in the Oval Office because extended a credit line to for patient safety and to identify economic superiority over its major it can be very reasonably assumed S Gertrude’s Hospital to assist potential Covid-19 cases prior to trade and commerce rival will be the that China will win an all-out trade in the response to the Covid-19 entrance to the facility. This means defining foreign policy issue of this war because America’s trade deficit pandemic. additional investments in the presidential election,” Green warns, with China is frequently over-esti- The bank said that Gertrude’s necessary equipment and we are adding that both the Democratic mated and barely gives it the upper Hospital was one of the compa- grateful to Standard Cratered Bank and the Republican candidates hand.” nies to complete a draw-down for extending the credit facility at a seemingly share a belief that ‘being Also, he said, China’s central bank from its global $1 billion (Sh108b) competitive rate,” he said. tough’ on China - or whoever can - unlike the U.S. Federal Reserve -- is Covis-19 financing commitment, Birju Sanghrajka, StanChart head knock China the most effectively-- is not independent and can be made underscoring its ongoing efforts of global banking in Kenya and East going to do well with the electorate. to cut interest rates to bolster do- to support local businesses in the Africa, said the bank stands to help “Both Biden and Trump will up mestic demand and devalue the cur- pandemic response. hospitals and other businesses deal the China-bashing between now and rency to make Chinese exports even The hospital will receive a credit with financial strains that set in November 3.” more competitive. of Sh200 million to fund its opera- after Covid-19 disruptions. Whilst this strategy might be a China is better positioned than tions in the wake of the disruptive “Coronavirus disease contin- political weapon to win the White America – which has a record budg- Covid-19 pandemic. According to ues to put pressure on healthcare House, whoever does become the et deficit - to help out industries Robert Nyarango, Gertrude’ s chief system in the country and many next CEO of the world’s largest hit hard by a trade war. Mr Green executive, the pandemic has put hospitals have had to adjust to economy will have a golden oppor- warned that the ruling Communist much pressure on hospitals and this new reality which has also tunity to secure stable, normalised Party of China can take the political the loan will provide cash flow meant that they make additional relations with China. And this should impact of a trade war better than to meet needs such as protective investments in equipment and be high up on their agenda. whichever party wins in the U.S. equipment for doctors and also pay consumables. This line of credit “Cooperation will benefit both The leaders of China don’t need additional staff. will go a long way in helping nations by helping to boost global to play popularity games.“Whoever “The outbreak of the Covid-19 Gertrude’s provide additional PPE economic growth, encourage in- wins the U.S. presidential election has meant that we now have to requirements, additional staff- vestment, secure jobs, keep prices must seize the momentum that spend more to ensure every health- ing and manage its cash flow,” down for consumers, reduce unfair a win gives a political leader and care worker has appropriate PPE for he said. or illegal economic, commercial immediately seek amiable relations their protection during this period. The credit attracts a one-off and technological practices, reduce with the world’s second-largest We also have had to increase our preferential interest rate of 9% as poverty and environmental prob- economy,” he said. staffing to ensure that there is an opposed to the monthly rate.

12 | Nairobi Business Monthly September 2020 Briefing

HOSPITALITY: The rise of Lorna Safaris P.14

Travelling can be a strenuous and nerve wrecking experience for person’s living with disabilities and the seniors

PICTORIAL MILESTONE

r Catherine Adeya Weya has been appointed the new director of Dresearch at the World Wide Web Foundation. She will be replacing Carlos Iglesias, who has served as interim Research Director. Prior to the new role, she had served as director of Business Process Outsourc- Listed company Car and General has entered into an agreement with Mogo Auto ing at the Ministry of ICT in Kenya. Kenya Limited for the provision of finance for the buyers of TVS motorcycles. This In 2013, she was appointed as founder chief executive of the Konza was signed by George Rubiri (left), the general manager for consumer products Technopolis Development Authority, and has led the development of of Car and General and Aloise Munyi Ngari (right), the relationship manager of the East Africa Centre for Internet Governance and Policy (CIGAP) at the Mogo Auto Kenya Limited. Strathmore University in Nairobi. Dr Adeya is also a non-executive director at Standard Chartered Bank and Adrian Kenya Limited while also being a senior consultant at Strathmore University. She is also the former Non-Executive Chairperson of Kenya Accreditation Service (KENAS) as well as Senior Representative East Africa’s Fieldstone Africa International. She has worked in the technology and development field in various organizations including the United Nations and University/Institute for New Technologies (UNU-INTECH) in the Netherlands. But in this era of technology overload, how will she ensure maximum use of her impres- sive CV? Coming at a time when most things go around technology, she has the challenge of ensuring that the web is safe for all on a global scale. She will lead a research team in interrogating and understanding the most critical barriers to achieving the vision of a web that is safe and empow- ering for everybody. Her biggest dream is to empower as many women as possible to follow in her steps to pursue Science, Technology, Engineering, and Mathematics, popular as STEM subjects, and be part of the process as far as research is concerned. Michael Odero (centre) the DT Dobie Nakuru branch manager and Dennis Mulongo With a degree from the Yale School of Management, a Bachelor of (left) a senior sales representative deliver three Mercedes Benz Actros trucks to Science degree in information sciences from Moi University as well as a Peter Mburu (right) the managing director of Mogilla Logistics Limited in Kitale Ph.D. in Information and Development from Edinburgh Napier University, for distribution of cement. she is expected to do a good job.

September 2020 | Nairobi Business Monthly | 13 Company 2017 &Industry Year Judy Muriithi started Lorna Safaris, a tour and safaris ALSO READ ►Why financial planning is not for when you retire P.34 company

nobility BY GAD WESONGA

n February 2017, Judy Muriithi started a tour Come the way you are and safaris company called Lorna Safaris. I Her noble objective was to provide services to people with disabilities. She then coined the – Where hospitality slogan come the way you are and set to touch the lives of this vulnerable group. It is not the destination where you end up, meets inclusivity she says, but the mishap and adventures you create along the way. Once in a while, it is essen- halfway tial for each one of us to break away from our normal routine, and travel to new destinations, interact with new faces, but most importantly, PWDs are stigmatized, and seniors are abandoned or left to fend for recharge. Whilst it is easy for one to just pack themselves but through deliberate actions from national, regional and go, travelling can be a strenuous and nerve and international sectors, we can safeguard their dignity, restore wrecking experience for person’s living with smiles and touch lives, one person at a time — Judy Muriithi disabilities and the seniors, as most of them have limited mobility. Her journey started with both a diploma in marketing and a burning passion and commit- ment to serve the people with disabilities. She had no educational background in tours & travel but was really interested in learning more about it from her high school friend Mercy Mwenda who was running a travel company then. Back in late 2015, she says, she would frequent Mercy’s office and ask endless questions on tours and travel. “Seeing my interest, she offered me a desk and a desktop and committed herself to teach me all about the industry and how things are done”. It was while researching about special tours that she came across seniors travel, but couldn’t find a specific company that deals with seniors’ exclusively in Kenya. This birthed Lorna Safaris, her accessible travel for persons with disabilities and seniors. According to Judy, accessible travel means ensuring destinations, services and products are accessible to all people regardless of physical limitations, disabilities or age. Movement of persons with disabilities like limited mobil- ity, visual impairment, deaf persons, to name just but a few, is quite a challenge and most of the times require assistance. These people, she

14 | Nairobi Business Monthly September 2020 says, face the most difficult challenge even for Adelaide adds that she used to suffer so much challenged. Eventually she sat for KCPE in 2000 a simple task as visiting the bathroom adding when using public transport such as matatus and qualified to join St Cecilia Nangina Girls’ that most of the essential places in Kenya are due to the numerous challenges associated with High School in 2001 for her KCSE and later inaccessible including learning institutions, lack of accommodating infrastructure for PWD. pursued her university education that has now work places, rental houses, churches, mosques, According to her, the coming of mobile taxis opened gates of gainful opportunities for her. public vehicles, parks, hotels and resorts. such as uber services offered some hope since Judy says that we indeed have a long way This is where Lorna Safaris, named after some of them have infrastructure for PWD but to go in Kenya, Africa and around the world her first-born daughter comes in to offer the some of the drivers have very small cars which since PWDs are still stigmatized, and seniors all needed support, which involves collabora- do not have space for carrying the wheel chair are abandoned or left to fend for themselves tion between different stakeholders, such as which then requires having two cars or a big but adds that through deliberate actions from airlines, local transport and accommodation one thus more costly for PWDs. national, regional and international sectors, we providers. Judy says that the constituency for PWD is can safeguard their dignity, restore smiles and “We use vehicles fitted with ramps for easy large enough and cannot be ignored as they touch lives, one person at a time. access, and handpicked adapted accommoda- are the largest minority group and they are This is the vision and mission that drives tion so that no family member, child or elder increasing each day due to population ageing her and her team at Lorna Safaris. “We seek should be confined to their normalcy, or left and increases in chronic health conditions. In to create awareness on accessibility issues in behind due to their limited mobility or disabil- her view, as we grow older, each one of us will public places such as airports, malls, restau- ity”. experience some type of disability such that rants, churches and mosques, tourist attrac- Judy views and defines disability as a physi- whether we have people depending on us for tions, restaurants etc. People lack informa- cal or mental condition that limits a person’s their day-to-day living or not, we are affected tion on where or how they can access suitable movements, senses or activities. According to destinations as there are a few organizations a 2018 report by World Health Organization, No family providing the same. There are numerous places there are 1 billion persons; around 15% of the member, child or and activities the PWDs and seniors can travel to world population, who live with some type of and have authentic experiences, but accessibil- disability globally. China has the largest number elder should be confined ity is a key area for action,” she decries, adding of persons with disabilities. to their normalcy, or that “It is a central element, as well as a human In Africa, there were between 60 – 80 million left behind due to their right. It is also an important aspect of ageing. persons living with disabilities (PWD) in 2018. In the recent years, as people grow older, there According to a report by the Kenya Bureau of limited mobility or are higher chances of temporary or permanent Statistics from the 2019 statistics, 0.9 million disability disabilities, but, this should not hinder them people in Kenya are living with some form of from exploring the world.” disability. Judy says that this figure signifies a large number for travelers, but it is very under- Marketing served. When planning for holidays, families directly or indirectly. Most of these persons live The Lorna Safaris journey has been learning with PWDs opt to leave them behind, or travel in the rural areas and this limits their potential and fulfilling experience for Judy. She says that to shorter destinations due to lack of accessibil- further. together with her friend and mentor Mercy, they ity to attractions and facilities, which is a huge Judy says that in Africa especially, there is have been able to travel to different parts of the obstacle to travel. still a lot of stigma associated with disability world marketing and gaining new experience According to Adelaide Sara Munyolo of and more often people will opt to hide away a for the business. National Council for Persons with disability, member of their family who is challenged like In February 2019, they visited Belgium for a motivational speaker, a sign language inter- it happened to Adelaide Sara Munyolo in 1985, their first exhibition which didn’t turn out as preter, a braille transcriber and founding direc- then aged 10, when she became disabled cour- expected since most potential clients were tor of ‘Inua Mlemavu’ – an NGO whose mission tesy of a polio attack. Her parents responded speaking more of French and less of English, is to support people with disability to enhance by abandoning her at Alupe Hospital in then which none of them spoke. Additionally, they their self-esteem, the enabling facilities and Busia District. also learned that long haul destination clients infrastructure for PWD is not adequate when The search for her kin led to her grandpar- usually make yearly plans and thus 2019 and seeking services in many places. ents in Buyingi Village, Funyula Constituency. much of 2020 was already planned. As a person living with disabilities and now Rather than despair, they embraced optimism Her next destination was South Africa in April a crusader for their well-being, she says that and took Adelaide to Nangina Family Helper 2019. “I went under an organization called She huge challenges exist not only in the hospitality Project in 1988, a catholic run Mission facility Trades which supports women owned business- industry but also in the learning institutions which among other things championed for the es, especially startups in different industries and public transport. rights of children living with disabilities. and facilitates half of the expenses for specific “I have had to cancel team building activi- This leap of faith opened her journey to join exhibitions”. ties, training and workshops when the chosen St Catherine’s Nangina Girl’s Primary School In September 2019, they went for an exhi- facilities cannot cater for our needs,” she says. in 1993; an integrated school for the physically bition in Mumbai, which was a success. This

September 2020 | Nairobi Business Monthly | 15 Company & Industry

prompted them visit Delhi too. accessible luxury camps and lodges. The vehi- not have been exposed to adequate education In line of duty, Judy has received recognition cles are wheelchair adapted fitted with Ramps due to traditional prejudices and discrimination from National Diversity and inclusion Awards for easy access”, he says. which contribute to some of them ending up (DIAR) for her role in inclusivity by serving Lorna Safaris, James adds, have purposed dependents begging in the streets. Yet where people with disability. to offer wheelchair friendly and accessible travel is concerned, they are expected to pay The DIAR Awards celebrate companies, accommodation, accessible safari vehicles and top dollar. government agencies, civil society organiza- accessible air travel. They indulge the seniors in At Lorna Safaris, for instance, a normal 3-day tions, non-governmental organizations and classic safaris, which have fewer destinations safari to Masai Mara will cost from as low as individuals who champion diversity and to allow time for relaxation and rest. For each 16,000 per person in a budget camp in a group promote inclusion at the workplace and the destination, they accommodate their clients in joining tour, for residents and as low as sh38 society at large. unique lodges/tents. They also try to cut down 900 for non-residents. This price is inclusive The awards is the initiative of Daima Trust, the long drives, thus incorporating the fly and of full board accommodation, park fees, and and has grown in breadth and depth since 2018, drive component. transport. This, however, cannot apply to a attracting leading brands and inspiring action In addition, the organization has participated person who uses a wheelchair, as they cannot towards making inclusion an everyday real- in other activities including attending the first join a group of other travelers, and there are no ity. It has seen participation from the nation’s ever Inclusive Diversity Africa Conference in budget lodges, which can accommodate them. most inclusive organizations, distinguished 2019 and contributing an article for the Mosaic A 3-day safari to Masai Mara for such a person private and public sector, C-suite executives, Magazine publication, all aimed at advancing would cost from Sh87, 000 using a safari van social entrepreneurs, and leaders from diverse Diversity and Inclusion. “We believe that Lorna and Sh120, 000 per person using a Land cruiser organizations. Safaris is on a growth trajectory in so far as ‘doing for residents in a comfortable hotel while for The awards process includes nominations business as a force for good’ is concerned,’ says non-residents Sh146, 000 using a safari van and and receipt of submissions, internal and exter- James. Sh190, 000 using a Land cruiser. nal research, shortlisting, voting and finally In 2003, under the Persons with Disabilities the judge’s decision. This process is rigorous Challenges Act, National Council of Persons with Disabili- and incorporates both the voice of the general According to Judy, marketing accessible travel ties; an umbrella under the Government of public and insights from a well-resourced, high- is a really expensive affair as getting staff who Kenya was established to advocate and push ranking panel of venerable jury. The winners are understand the concept and are able to support for the rights of PWD’s, an initiative that Judy arrived at on both qualitative (what you do and is very hard. Furthermore, people who are chal- lauds. “Even though we have a long way ahead of your impact - judge’s decision) and quantitative lenged but willing to travel do not know where us, it has made significant changes in inclusion (votes) basis each carrying 75% and 25% weight to look for information. Most seniors are not and diversity,” she says. respectively. online as much as millennial and therefore use Disability, Judy admits, is a diverse topic, and Lorna Safaris was also one of the award recipi- conventional methods for booking holidays or each person’s needs differ. “When we began, ents in 2019 in the award category: Diversity and depend on their loved ones for the same. “This we focused on persons with limited mobility, Inclusion PWD Inclusion Corporate Champion then forces us to offer other packages such as and the wheelchair users. Currently, we are Award in which it was a finalist. The organiza- luxury travel to families and honeymoon tours looking into suitable transport, facilities and tion is also a year 2020 nominee in the award to honeymooners so as to cushion the business”, activities for persons with visual impairment, category: Diversity and Inclusion Award for a she bemoans. and the deaf. All these individuals need to get Social Enterprise which celebrates organiza- Since Lorna Safaris does not own any safari away and be in touch with nature, at their own tions that address a basic unmet need or solve vehicles, they hire the normal land cruisers on pace”, she says. a social or environmental problem through a need basis and customize them with a ramp Judy says that her biggest dream is to have a market-driven approach such as employing for easy access. “Accommodation too is a chal- lodge in one of the famous parks in Kenya which people who have significant barriers to main- lenge as most of the hotels/lodges/camps are is exclusively designed for PWD’s, and where stream employment, or companies leading not accessible and the ones that do have a few all employees are physically challenged and to social inclusion and responsibility. rooms are expensive and I personally have to also have fully customized vehicles, which are According to James of Daima Trust, Lorna inspect the premises before recommending to modified to cater for PWD’s. Safaris strives and has proven itself among the a client,” she says. “Our main aim is to advocate for inclusivity organizations championing PWD inclusion Ironically, the cost involved in handling and diversion for each and every person who is in Kenya. This has endeared them to the DIAR accessible travel is way high compared to challenged. To be a voice for the voiceless, and Awards process since 2019. individuals outside this group yet most PWDs to empower them socially and economically, “For over 15 years now, Lorna Safaris has been may not be as resourced as the ones without so they can be self-reliant and inspire others arranging fully accessible holidays for people disabilities. PWD, for example, do not qualify to do so. with disabilities, slow pacers & seniors. Their for certain careers due to their limitations. This From Judy and Lorna Safaris to the people safaris are tailor-made specifically for people then shrinks their scope of choices for career with disabilities, the welcoming call is, “Just who are abled differently, using wheelchair and occupation. Additionally, some of them may come the way you are!”

16 | Nairobi Business Monthly September 2020 as design of various hospitality infrastructures equal access such as lifts in the hotel, wash rooms, access ways, telephones, emergency exits among others in ways that capture needs of people Inclusion elevates all with disabilities as much as possible not only for guests but even staff who may have various forms of disability at the work place. The comprehensive human rights Conven- tion for people with disabilities (UNCRPD) recognizes that PWD encounter various barriers that may hinder their full and effective partici- pation in society on an equal basis with others. As mitigation against this threat, the UNCRPD advocates for universal design approach in products range, environments, programmes and services to be usable by all people, to the greatest extent possible that provide inclusivity. In recognition of such efforts towards inclu- sivity, the International Labor Organization (ILO) in their report, Disability in the Workplace Company Practices, Paper number 3 lauds The Accor Group, a French headquartered global hospitality brand to have taken deliberate steps towards inclusivity in hospitality. This is mani- fested in various facets of their organization A special PWD room . It costs higher in hospitality anchored in its policy such as hiring of staff than a normal room. and its products range.

BY GAD WESONGA ing and rejuvenation. Judy Muriithi, proprietor Recruitment of Lorna Safaris, a tours and travel company The repot indicate that at Accor, measures ndia’s founding father Mahtima Gandhi’s designed around inclusivity says that once in a are in place for hiring and integrating people counsel that the true measure of any soci- while, it is essential for each one of us to break with disabilities into the workforce so as to I ety can be found in how it treats its most away from our normal routine, and travel to strengthen the company’s diversity initiatives. vulnerable members provides an opportunity new destinations, interact with new faces, but Additionally, its employees have to sign formal to peep into the concept of inclusivity especially most importantly, recharge. Whilst it is easy for declaration to combat all forms of discrimina- in hospitality industry where our very best in one to just pack and go, she says, things can be tion at the work place. nobility is expected monstrous for persons living with disabilities The company also organizes an informa- Inclusivity is the practice of providing equal (PWDs) and the seniors since most of them have tion day for disabled students so that they can access to opportunities and resources for people limited mobility. meet hotel professionals and learn more about who might otherwise be excluded or marginal- This means that people who are abled the industry. The project approach consists of ized, such as those having physical or mental differently must be protected and their needs alternate periods of study and industrial work disabilities or belonging to other minority well factored in all aspects of the hospitality in a hotel or restaurant leading to permanent groups. This definition is cognizant to the fact industry. Robert Hensel who is a PWD and a placement. that people with disabilities are more prone Guinness World Records holder for the longest Another initiative is based on Accor collabo- to exclusivity in fundamental aspects such as non-stop wheelie in a wheelchair, covering a ration with JobinLive, a French company that hospitality. total distance of 6.178 miles once said; “I have specializes in creating video résumés for people Hospitality is a friendly and generous behav- a disability, yes that’s true, but all that really with disabilities. Job candidates with disabili- ior towards visitors and guests. The July 2020 means is I may have to take a slightly differ- ties record short video résumés to present them- Hotel Tech Repor, traces the origins of the word ent path than you.” This different path, used selves, their competences and experiences, hospitality from hospitalitis in Latin, which metaphorically in this context takes many forms which is used to enhance their recruitment. refers to the relationship between a guest and in the hospitality industry so as to ensure that To better support and retain its disabled host. Broader aspects of hospitality include there is inclusivity in spirit and deed. employees, Accor has disability awareness tourism industry. According to Luke Kizito, proprietor of Sign initiatives such as training for its managers Hospitality industry is a critical aspect of TV, a channel that predominantly broadcasts in and employees to alleviate any communica- human life that provides moments of unwind- sign language, inclusivity involves aspects such tion barriers that may exist between employ-

September 2020 | Nairobi Business Monthly | 17 Company & Industry

ees of different abilities such as sign language At the Pallet Café, a customer is greeted on a pad, which the waiter constantly carries, course to its managers and employees. The goal through sign language and shown to a table together with a pen. is to enhance communication with hearing‐ by one of the wait-staff as soon as they step impaired employees and also increase the qual- into the café whose front page of the menu has Shiatsu Therapy ity of service for hearing‐impaired customers. basic sign language, which they can use to order In Machakos, Evelyne Nzioki, a blind person food items. provides massage therapy. Nzioki learnt Japa- Products and services Given that the waiters cannot hear, they nese massage techniques at Machakos Technical Accor hotels are designed to meet the needs of tend to be more alert, constantly scanning to Training Institute for the Blind. The therapy its disabled guests. The hotels are accessible to see if customers require attendance. When helps relax muscles, regulate blood flow and wheelchair users, and have accessible bedrooms one settles on choices, they can signal over to ward off diseases such as diabetes, pressure, and bathrooms, wide doorways, lifts with wide a waiter to take their order. The customer can minor stroke and general fatigue. entrance and emergency devices, such as vibrat- point on what they would like on the menu In 2007, the school received volunteers from ing pillows to wake hearing‐impaired guests using codes assigned to each meal or drink. the Japan International Cooperation Agency to in the case of alarm and induction loops for Alternatively, they can write their order down train students in Shiatsu, a Japanese massage hearing‐impaired persons attending events at its meeting facilities.

Kenya The National Diversity and Inclusion Awards & Recognition (DIAR) celebrate companies, government agencies, civil society organiza- tions, non-governmental organizations and individuals who champion diversity and promote inclusion at the workplace and the society at large. It is an initiative of Daima Trust, an NGO that practices and champions for inclusiveness, diversity and commitment to making inclu- sion an everyday reality. In 2019, Lorna Safaris was an award recipient and is also a 2020 nominee in the award catego- ry: Diversity and inclusion for a social enterprise that addresses a basic unmet need or solve a social or environmental problem through a market-driven approach such as employing people who have significant impairment.

Pallet Cafe Other unique enterprises in Kenya molded around inclusivity in the hospitality industry include Pallet Café, situated in Nairobi, Laving- ton along James Gichuru Road. The restaurant aims at promoting the hearing-impaired by hiring them and offering them the training required in the food service provision. Founded by Fazul Hussein, Pallet Café prefer to hire staff with hearing impairment so as to give people living with such a disability a chance for employment and to improve their self-confidence. The waiters receive train- ing before working at the café and they are constantly being exposed and trained on the job. Other pool of employees is referrals from Left - Judy Muriithi, the Council for Persons with Disabilities who proprietor, Lorna provide links to qualified candidates for hire. Safaris.

18 | Nairobi Business Monthly September 2020 technique. The training takes them through the people who are deaf in all counties in Kenya a wheelchair. human anatomy, life skills, dressing a massage so they can better understand the world and be According to Jessa Gamble, a Canadian and bed or table, entrepreneurship, engaging clients informed just like everyone else. He also hopes English author, “Being unconscious is the and special needs. to continue having many viewers, both deaf and ultimate disability.” It is in this regard and hearing, so they can learn sign language, and consciousness to inclusivity in society that Arti- Entertainment help create a more inclusive society. cle 9 of the CRPD obliges the State to facilitate Entertainment is integral in Hospitality. This is persons with disabilities to live independently where Sign TV, a brainchild of Luke Kizito comes Legal Framework and participate fully in all aspects of life. The in. He was motivated to provide this inclusivity The Kenya Persons with Disabilities Act of 2003 State is expected to take suitable measures to in the industry due to what he found lacking provide for the rights of persons with disabilities ensure that persons with disabilities have access for her deaf sister in terms of entertainment to achieve equalization and inclusivity. These to the physical environment, to transportation, while growing up in Mundika, Busia County. rights are guaranteed in various international, information and communications, including Kizito recalls being stressed during their regional and domestic laws. information and communications technologies childhood as the rest of the family enjoyed The Constitution of Kenya 2010 under the Bill and systems, and other facilities and services watching television programmes such as of Rights recognizes in Article 54 that persons open to the public on an equal basis with others. movies, music and other local entertainment with disabilities are entitled to be treated with This provision is echoed domestically in Section while the deaf sister was totally missing out and dignity and respect. They are to enabled to 21 of the Persons with disabilities Act, 2003 in a world of her own. This kept him thinking among others things reasonable access to all (PDA), which entitles PWDs to a barrier-free how he could help her. places, public transport and information, to friendly environment. Section 22 of the PDA An Alumni of Kakamega high school and use sign language, Braille or other appropriate requires any proprietor of public facilities to Strathmore University, he says he promised that means of communication and to access materi- adapt it to suit persons with disabilities. one day he would persuade television stations als and devices to overcome constraints arising Sadly, according to the report, the assess- to air sign language programmes so that people from the person’s disability. ment on many private and public buildings who are deaf could enjoy too. In its report, From Norm to Practice, the showed that physical accessibility for persons Unfortunately, the TV stations rejected Kenya Human Rights Commission evaluates with disabilities remains a far-off target with the idea and were not comfortable airing the extent to which this has been achieved in several buildings that house National and programmes that had no voice. Their justifi- the protection and promotion of inclusivity. County government offices, courts, hotels, cation was that it would not augur well with According to the report there are positive steps public toilets, police stations among others their marketers/advertisers and majority of their towards realization of human rights of persons missing out on relevant accessibility standards hearing audience. This rejection pushed him to with disabilities. However a number of chal- and inclusivity consciousness. pursue starting his own station and with that lenges that transcend to the hospitality industry This score indicates that there is work to be the birth of Sign TV which started live broad- continue to plague and disenfranchise PWDs. done to achieve desirable inclusivity in many casting in 2017. Generally, the report indicates that many aspects, which feed the hospitality sector. While the main focus of the station is to aspects of the system lack inclusivity conscious- “I have had to cancel team building activi- serve the deaf, Kizito has also incorporated ness. For example, the report points out, public ties, training and workshops when the chosen other PWDs as presenters. The inclusive Sign transport is completely inaccessible to PWDs. facilities cannot cater for our needs”, laments TV channel airs films/movies, music-both This means that most of persons with disabili- Adelaide Sara Munyolo of National Council for gospel and secular and Bible interpretations. ties must be assisted, usually by being carried, Persons with disabilities. “The enabling facili- Kizito says their programming is guided by to board and alight from the vehicles. In other ties and infrastructure for PWD is not adequate the three pillars: informing, educating and cases, persons with disabilities are asked to pay when seeking services in many places” she adds. entertaining. His goal for Sign TV is to have for the wheelchair. This verdict requires attention in the hospi- mainstream media that is fully accessible to The existence of these challenges has nega- tality industry, which, according to the Hotel tively impacted on the day-to-day activities by Tech Report of June 2020 is about touch points Several buildings persons with disabilities as many would prefer and micro-experiences that make each guest that house National staying at home and not engage in activities that feel valued and at home. Bill Marriott of the are far from their homesteads thus missing out global Marriott International Inc, one of the and County Government on the full enjoyment of what the hospitality world’s largest lodging companies echoes offices, courts, hotels, sector offers. similar sentiments on true spirit of hospitality Additionally, the report points to myriad saying, “This is what it’s all about: Taking care public toilets and police accessibility challenges faced by PWDs when of people, making them feel good when they’re stations miss out on seeking services or participating in public away from home, making them feel that they’re relevant accessibility life. On physical access for example, most of appreciated and recognizing them.” buildings sampled were inaccessible with steep From Elaine Hall, an educator, writer, and standards and inclusivity staircases and no ramps, some with very narrow children’s acting coach for film and TV, “Inclu- consciousness doors that cannot accommodate a person on sion elevates all.”

September 2020 | Nairobi Business Monthly | 19 Executive Arena DrGA DPolycar OUMA, p Mandi, Director Paediatrics and CMANAGINGhild Health PARTNER, at The gM.oim. TgeachingAMMA ADVOCATES and Referral Hospital, Eldoret

Running a law firm

The subject is law. After eight years of legal practice, one of those as Managing Partner at G.M. Gamma Advocates LLP, Gad Ouma’s litigation presence is lithe and assured. He represents a diverse portfolio of corporate clients, personalities and state corporations, including Kenya Power - he successfully navigated a class-action suit for the latter. Establishing the firm in July 2019 as a limited liability partnership based in Nairobi, he and his partners quickly realized that the Firm had grown exponentially with clients across the various regions in the country and, with just months into their operation, established the Mombasa Branch to cater to their growing client base. Barely a year old in the market, the firm is already on the path towards attaining an ISO 9001:2015 certification on Quality Management Systems, an illustration of its extra focus on offering high quality legal services to its clients. A cum laude graduate of Moi University, Gad sat down with the Nairobi Business Monthly for a chat.

What is the philosophy behind G.M. Gamma tion, Aviation, Banking and Financial Services, Advocates? Succession & Real Estate Management, and Our institutional philosophy can be summed labour and employment laws. We straddle a up in the acronym ARCS: Available to our wide range of sectors, from mining, telecom- clients, and reliable service delivery; Result- munication, energy, construction, agribusiness, oriented - meaning we first seek to understand financial services, healthcare, insurance and a client’s business needs to generate solutions manufacturing, among others. In the one year that respond to the unique legal needs of our we have existed, we have morphed into a cogent clients; Confidentiality, which is paramount team of Advocates and Legal Consultants that and non-negotiable; and the Soundness of the prides itself with a bottomline of quality and legal and advisory services we offer. professionalism. We also practice preventive law. What is your niche? We are a versatile firm that offers legal, What does preventive law entail? advisory and training over a broad spectrum It means we anticipate likely legal challenges of laws. We, amongst others, have expertise in and proffer legal solutions in a broad scope of commercial law, dispute resolution, Arbitra- areas through legal and corporate governance,

20 | Nairobi Business Monthly September 2020 training and audits, and compliance legislation. Like preventive medicine, preventive law works to prevent problems before they arise. It entails dealing with ‘hot facts’, which can be altered because they haven’t yet arisen.

What goes into starting a law firm? The practice of law is both a business and a profession. To run a successful law firm, one must see it as both. Before you make the commitment, you need to ask yourself: Do I want to be involved in the entire running of the business? Am I committed to being a business owner and leader – not just an attorney? Do I consider the time I spend working on develop- ing and maturing the business as important as my career/work? If the answers here are all affirmative, you must then focus on building a team that you can trust. It helps if you scout for such people early enough so that you also deter- mine if you have a shared passion and culture. Don’t be after hiring employees simply to fill a position; hire smart - people who embody the vision and mission of the firm, who will help you grow the business.

So like any other business then? You could say so, but it is much more than that, because it is anything but conventional business. To be successful, you will need to invest immense amounts of time so that you over deliver and be consistent at it. Time - for your clients and your firm family - is your most precious commodity. When delivering a draft plaint is expected Wednesday, deliver it on Monday afternoon. Return calls and emails promptly. Create your niche and work outwards as you grow. Break out of your comfort zone and aim to solve problems, then deliver consistent results. Most importantly, build relationships and be grateful - you never understand how important it is to say thank you and appreci- ate those around you until you begin doing it.

What is your financing model? Gad Ouma Sufficient capital is essential for a successful business, as is having the understanding of how

September 2020 | Nairobi Business Monthly | 21 Executive Arena

to manage it properly. It is important to put aside adequate funds to begin and subsequently run for months while you give room for stability of the firm. Planning ahead is also crucial. I often ask myself: how will I finance my busi- ness growth plans for the next half a decade? It is also prudent to consider options for outside financing. Finally, one has to track the firm’s spending to be able to predict trends and plan ahead. Tracking weekly and monthly expendi- ture is a key factor for growth and sustainable development.

You left a good job at Robson Harris & Co. Advocates where you were the head of litiga- tion to start your own firm. Why? The Firm of Robson Harris Advocates, and more so, its Managing Partner Jane Mwangi have been instrumental to my professional growth. Now to answer your question, I started G.M Gamma Advocates, LLP because I felt ready for the challenge, and I believed in myself. I set out to offer a blueprint for those willing to put in the work, to demonstrate that young lawyers can courageously step out of their comfort zones and establish successful legal practice. We are barely one year old yet the firm of G.M Gamma Advocates is already on its path to attaining ISO certification, an accomplishment very few law firms in the country have achieved. We want our reputation to be synonymous with quality. We are keen to progressively create a brand that people associate with honesty, professionalism and service. It will take time and hard work, but we want to show that it can be done-failure is not an option.

What have been your biggest challenges?

What is true for one individual is not necessarily so for the next, no matter how similar their qualifications or circumstance. There are opportunities for lawyers in various sectors thanks to our expanding economy

22 | Nairobi Business Monthly September 2020 As a business, teething challenges are not Conventionally, this requires a sound busi- confrontational, but I am also firm and fair. uncommon. For example, sometimes we have to ness strategy, which entails creating efficient deprioritize some projects by diverting funding systems, retaining and attracting new clients What advice do you have for young lawyers to more pressing needs. At other times, we have through impeccable service and managing your who want to venture in law, and legal prac- found some of our structures to require reorien- finances well. It always pays to be client-centred; tice in particular? tation so as to be in tandem with our 2020-2023 let the experience for clients be like nothing One, believe in yourself and never allow doubt Strategic Plan, which means that we lose both they will get elsewhere. to seep in. Two, learning is lifelong; you won’t time and resources already utilised. In terms Beyond that, in this age, it also helps to build know everything once, but if you commit your- of practice, we are still building fluency around your brand to make it visible in traditional self fully to learning, listening and putting in emerging and under explored areas of law such channels and on professional social media the time and effort, you will become the best as the extractives industry, aviation law, sports platforms. Besides winning cases and offer- version of yourself. Three, patience is a virtue; law, environmental law, and economic crimes ing first rate services that can be associated be ambitious but temper that with objective and cyber law. As these gaps become apparent with excellence, build and develop the actors fortitude. Four, learn to be a leader by owning with time, so does our ever-expanding practice in your circles. Creating and maintaining a up to mistakes and learning from them. Lastly, portfolio. credible presence on professional networking there is no monopoly of knowledge; learn from sites such as LinkedIn and even YouTube one others and be generous enough to pass that on How are you addressing these challenges? of the best investments you can make. As well, by mentoring as much as you can. At the start of the year, the Firm contracted a invest in your company website and populate highly qualified Consultant to help it develop it with compelling internal content; it is the Is business ever slow? How do you cope? its Strategic Plan for the year 2020-2023 Stra- first point of reference for potential clients and It is easy to settle into the famine-feast cycle tegic Plan. This was an elaborate process that your most important resume. Finally, invest in - enjoying times of plenty and bearing out the took 4 months and closely involved its staff the community around you, whether that is so-called famine months. I have learnt to plan and all stakeholders including its clients and corporate social responsibility or doing some ahead. We work with quarterly work plans, relevant professional bodies. The Strategic pro bono work. Whereas this might be looked which feed into annual plans and ultimately Plan was eventuality put into motion on 1st at cynically, service to the local community has into the overall Strategic Plan, 2020-2023. COVID July, 2020. The Plan will enable the Firm to take got its own reward. has reinforced the idea of saving for rainy days, bold initiatives in redefining the business and and this is the principle we live by. We invest practise of law, and propel it to greater heights How is practice in Kenya as compared to in and work towards retaining both staff, who through delivering a unique mix of values. We other jurisdictions in Africa? are our human assets, and clients, who keep are constantly developing our human resource I think what is true for one individual is our bottom-line healthy. capacity, infrastructure, leveraging our partner- not necessarily so for the next, no matter how ships and linkages, and facilitating training to similar their qualifications or circumstances. Where do you see the company in the next develop our firm professionally, and obtain the If you scrutinise the legal space in the country, five years? knowledge we need to build fluency in new or there are opportunities to be found, particu- We anchor this in the full implementation emerging areas. This way, we hope to be well larly because our expanding economy provides and realisation of our strategic priorities as equipped to deal with any challenges that come opportunities for lawyers in different sectors encapsulated in our Strategic Plan, 2020-2023. our way. and industries. The changing nature of legal We want to be the firm of choice for corporate practice, for example the infusion of technol- and individual clients. More specifically, our How many people do you employ? ogy into law, presents both opportunities and strategic priorities are based on the following There are 19 of us, including 10 legal prac- challenges that are not unique to Kenya, but to broad pillars: client management - through titioners and an administration docket with a which different jurisdictions are accommodat- anticipating and catering to their legal needs complement of 9. That makes us a medium- ing differently. intuitively and efficiently; business develop- sized firm. ment - through evolving to adapt to emerging How do you deal with leadership and prac- trends and setting our brand apart, including What, in your view, is the best way to spur tice challenges? by leveraging new practice areas, growing our the growth of a law firm? As the Managing Partner at the Firm and client base and optimising revenue collec- Growth is a deliberate strategy and planning previously during my leadership position at tion; and institutional capacity development in advance is paramount. In our case, the blue Robson Harris Advocates, I have learned the - through strengthening our governance mecha- print for our growth for the next four years is value of maintaining my objectivity and look- nisms and entrenching a performance-based encompassed in our Strategic Plan, 2020-2023. ing for opportunities to collaborate. I am not culture.

September 2020 | Nairobi Business Monthly | 23 Politics, Policy & Law

►Business restructuring options. P.38

footprint LSK and Jomo Kenyatta - Era when the Society paid for its colonial sins

BY GILBERT MUYUMBU attempts that the LSK made to restrain the regime from excesses. n understanding how the LSK attempted If respect for a country’s Constitution is to restrain the Jomo Kenyatta regime from a measure of its government’s fidelity to the I excesses, it requires clarity in two main areas. rule of law, then the Kenyatta regime began on First, we need to understand the general state a shaky footing. The regime came into power of rule of law under the Kenyatta rule, and under the Independence Constitution rati- second, we need to interrogate Kenyatta govern- fied during the third Lancaster Conference in ment’s attitude towards systematic oversight 1963. Upon ascending into power, however, it and restraint, which come through both hori- embarked on dismantling this Constitution. It zontal and vertical accountability, by tracing did this in phases, with the first decisive phase the relationship the government built with of amendments targeting the Majimbo (federal) institutions emerging out of these two types provisions, which the administration replaced of accountability. Establishing facts in these two with a centralized administration in which areas would provide a useful background from the Provincial Administration and ministries which to explain how LSK faired in its attempts directly answerable to Jomo Kenyatta were to restrain the Kenyatta regime. the ones to deliver public goods and services, The interaction with the LSK itself would rather than regional governments. A significant need to be relayed in three phases. These would amendment was The July 1966 amendment was include, first, the interaction between the LSK the most significant. It gave the Minister for and the Kenyatta regime in the early days of Home Affairs powers to detain individuals independence; second, the interaction when without trial in order to deal with the political the regime took a turn towards a highly central- opposition that emerged in the aftermath of ized presidency after the departure of Jaramogi the falling out between Jomo Kenyatta and Jara- and the assassination of Mboya; and third, the mogi Oginga Odinga. The overall justification interaction towards the end of the Kenyatta era. provided for the constitutional amendments This article articulates the first part of laying under the regime was the need to build a stable the background of the general state of rule and united country. of law under the Kenyatta regime, as well as There is, nevertheless, at least one proposed the regime’s interaction with institutions of amendment to the Constitution that the regime systematic oversight and restraint. It forms the declined. This was the provision on the auto- first part of the argument regarding the LSK’s matic replacement of the President by the Jomo Kenyatta, Kenya’s first restraint of the Kenyatta regime. The second Vice President in case of the President’s indis- independence President part of the article will delve into the specific position, which had been pushed by a certain

24 | Nairobi Business Monthly September 2020 section of politicians associated with the GEMA Bruce Mackenzie and Dagoretti MP Johnstone tion through oathing meant to bind the GEMA movement. Muthiora. tribes to it. With the murder of JM Kariuki in Besides amending the Constitution, there For official corruption, when the Kenyatta 1975, it embarked on a campaign of disinforma- existed at least two other arenas where violation regime came into power, there already existed tion, extracted pledges of loyalty from cabinet of rule of law was most blatantly exhibited under The Prevention of Corruption Act of 1956. Although ministers and publicly displayed its military the regime. These were political assassinations it was strengthened further in 1967, this law was power. In the aftermath of the October 1969 and in dealing with official corruption. Granted, still unable to prevent widespread corruption massacre of residents of Kisumu, the regime assassinations did not commence under the by regime functionaries. It thus became notori- downplayed the incident by underreporting Kenyatta administration, since prior to inde- ous for acts of corruption involving mainly the casualty figures, blaming the incident on the pendence, Senior Chief Waruhiu, and the two grabbing of land, stealing of public funds from Opposition and destroying photographic and KAU officials Tom Mbotela and Ambrose Ofafa state enterprises such as the National Maize video evidence of the incident. It should be had been assassinated by suspected Mau Mau Marketing Board and inflation of public tenders. granted, nonetheless, that in the aftermath agents. The regime however had its fair share On the overall, the relationship between the of Ronald Ngala’s death in February 1973, the of victims of assassinations in Pio Gama Pinto, Kenyatta regime and accountability was marked regime staged a public inquest into the death, Tom Mboya and JM Kariuki. Two other deaths by a distinct style. In the first major crisis that it thus making the death uncharacteristically under the regime, which were not resolved faced in the aftermath of Mboya’s assassination transparent. included the deaths of Agriculture minister in 1969, the regime turned to ethnic mobiliza- In terms of the relationship with systematic accountability, the Kenyatta regime foisted a subservient relationship on institutions of accountability, both horizontal and vertical. Under horizontal accountability, the Judiciary, Parliament and the political opposition were all subverted to the regime’s interests. The Judici- ary, for instance, witnessed the regime’s wrath in 1968, when then Chief Justice, Justice Farrell, sitting with Justice Dalton as an appellate court reduced to six months the one-year sentence which had been handed to KPU Vice President Bildad Kaggia. Following this ruling, Jomo Kenyatta replaced the Chief Justice with the Solicitor-General, Mr. Kitili Mwendwa. As for Parliament, the regime transformed it in two main ways. First, it reduced the bi-camer- al Parliament it inherited at independence into a unicameral House. Secondly, it merged with the Opposition Kadu, thus transforming Parliament into a single party House. Undermined in this way, Parliament became attuned more to agree- ing with the Executive, rather than providing oversight. There were flashes of confrontation between the two arms, for instance in the after- math of the JM Kariuki assassination. These were, however, rare and did not result into any sanctions on the Executive. Furthermore, the Kenyatta regime directly violated parliamentary immunity, arresting and detaining at least three members - Martin Shikuku, Jean Marie Seroney and George Anyona, for their utterances and activities on the floor of the House. For the political opposition, the Kenyatta regime used at least five strategies to subvert accountability. First was the use of direct

September 2020 | Nairobi Business Monthly | 25 Politics, Policy & Law

violence against the Opposition, as was witnessed initially against the Northern Fron- tier District (NFD) agitators who had declared intention to secede from Kenya, and later against the KPU. The second strategy against political opposition to the regime involved changing and/or adjusting the law to suppress the Opposition. This was witnessed mostly after the formation of KPU. With KPU threatening to turn into a mass party through the defec- tion of at least 29 Members of Parliament, the regime hastily enacted the fifth amendment to the independence Constitution, which now demanded that those defecting to KPU had to resign and seek re-election on their new party. Besides the constitutional amendment, the regime also passed a cabinet resolution, which banned KPU. The third strategy for dealing with the politi- cal opposition was through electoral malprac- tices meant to lose Opposition politicians their Sir Charles Njonjo - His control of the rule of law institutions as Attorney Gen- parliamentary seats. This was witnessed in the eral in the Kenyatta regime spanned the broad expanse of judicial, parliamen- regime’s fight against KPU, but also against tary, electoral, investigative, and prosecutorial spheres. regime critics such as JM Kariuki. The fourth Parliament, Njonjo wielded immense powers Church, the media, ethnic groupings such as strategy involved concocting propaganda witnessed in the swiftness with which he had GEMA, trade unions, the academia and profes- against the Opposition, including accusing it laws passed such as was the case in passing the sional organisations. In terms of the relation- of seeking to overthrow the Government with law which salvaged Paul Ngei from sanctions ship with the Church, the Kenyatta regime the help of foreign powers, staging discoveries over electoral malpractices. He also controlled inherited a tradition in which the Church, of weapon caches in the offices of Opposition Parliament through detention and exile of vocal both mainstream and independent, had been leaders, and branding the Opposition with backbenchers. quite active in decolonisation politics. With colourful names, the most famous of which For electoral agencies, it was Njonjo who Independence, the relationship with both sets was Attorney General Charles Njonjo’s labelling appointed the national election supervisor, of Church formations set off on a cordial foot- of the group of vocal backbenchers consisting and controlled the entire electoral manage- ing, although some radical ones such as Dini of Koigi Wa Wamwere, James Orengo, Abuya ment system through district commissioners ya Musambwa in Western Province and Dini Abuya, Chelagat Mutai, Chibule wa Tsuma, who acted as election returning officers. For ya Kaggia in Central Province continued with Mwashengu wa Mwachofi and Lawrence Sifuna investigative agencies, he used them to collect agitation of their pre-independence demands as the ‘Seven Bearded Sisters.’ The final strategy information on potential rivals including cabi- and were subsequently banned. involved direct removal of political opponents, net ministers and MPs and used it against them. For mainstream churches, they comple- either through assassinations as witnessed in In the prosecutorial sphere, Njonjo used his mented state efforts in the social and economic the cases of Pinto, Mboya and Kariuki, exile as powers of prosecution to punish opponents and realms. Kenyatta himself adopted the Church as was the case of Orengo and Mutai or detention, media outlets that were critical of government. a platform for preaching unity in the country. as was the case of at least the 26 detainees at The list of people jailed in this way included Due to the minimal or largely negative role the time of Kenyatta’s death in August 1978. Wangari Maathai, media personality Salim Lone, that these churches had played during the A key player in ensuring the subservience MPs Mark Mwithaga, Muhuri Muchiri and Jesse decolonisation period, however, they lacked of horizontal accountability institutions to Gachago and LSK member AR Kapila. With such the legitimacy to be critical of Kenyatta. In the Kenyatta regime was Attorney General expansive influence on horizontal accountabil- time however, especially with the increased Charles Njonjo. Njonjo’s control of the rule of ity institutions, Njonjo was able to reduce their Africanisation of leadership within these main- law institutions spanned the broad expanse of ability in restraining the Kenyatta regime. stream churches, a more critical stance began judicial, parliamentary, electoral, investigative, As for vertical accountability, which largely emerging from some of them. This was largely and prosecutorial spheres. Within the Judiciary, emanates from actions of societal groupings, centred on the National Council of Churches of at least one Chief Justice, Justice Wicks is on the Kenyatta regime cultivated a chequered Kenya (NCCK) and was communicated through record indicating that he asked for direction relationship with many entities within this publications. There were three main critical from Njonjo on how to decide cases. Within realm. Among these entities included the Church-sponsored publications during this

26 | Nairobi Business Monthly September 2020 period, namely Target, Beyond and Rock. witnessed the nationalization of the Voice of academia became a vocal critic of the regime, Of the three, Target was the most radical, Kenya radio and television and its subsequent with both students and academic staff staging publishing on politics. Its editor, John Schof- branding as the Kenya Broadcasting Corpora- protests and generating radical publications. ield was, however, dismissed after he criticized tion in 1967. This in turn led the regime into banning certain the Government for constructing the Kenyatta In terms of editorial content under the academic works from circulation, and also International Conference as Kanu headquarters Kenyatta regime, the record indicates snippets targeting prominent anti-regime academics using public funds. He was replaced by Henry of restraining the regime by a section of the such as Ngugi wa Thiong’o, who was thrown Okullu, who continued Schofield’s critical media, but which were scuttled. As was the case into detention. editorial policy. Okullu was responsible for with the Church-affiliated publications, they The final significant societal grouping that some of the explosive denunciations of the condemned the regime’s excesses, but this was related with the regime in a way that should have Kenyatta excesses through publishing arti- at the risk of personal losses, as happened for the fostered accountability was the labour move- cles such as ‘Complaints of the Wananchi – a Target editor John Schofield, who was sacked for ment. The regime inherited a robust labour Confidential Report to the President’ and ‘Who denouncing use of public funds to construct the movement that had cut its teeth in opposing Controls Industry’ both of which addressed ills Kanu headquarters. A more pronounced case of colonisation. Fully aware of the power which of the Kenyatta regime. how the regime treated the media was witnessed the movement wielded, the Kenyatta regime It was, however, the oathing ceremonies in its relationship with the Daily Nation. Under embarked on a systematic dismantling of the in the aftermath of the assassination of Tom the editorial direction of George Githii who had movement soon after independence. It did Mboya in 1969, which led to open disagreement been Kenyatta’s personal press secretary, the this by appointing a nine-member committee between the Kenyatta regime and the Church. Nation became more critical in its reportage comprising Cabinet Ministers, among them Although Kenyatta attempted to co-opt part of of corruption and bad governance under the former trade union leader Tom Mboya. The the Church into taking part in the ceremonies, regime. One case reported under this direction committee’s mandate was to review the trade it rejected this and wrote at least three letters involved Nairobi Alderman Charles Rubia, union situation in the country, make recom- against the oaths, with the first letter denounc- who wanted to purchase a Rolls Royce. The mendations on how to centralise movement in ing the oaths, the second decrying the plight Nation’s scathing attack of the purchase led to the country into one monolithic entity which into which the oaths were pushing the GEMA the President forbidding it. Another case, which can be easily controlled by government, and community and the third lamenting the brutal- the Nation reported involved corruption at the provide justification for the expected clamp ity with which the oath was forced onto people. National Maize Reserve, implicating veteran down on the movement. Beyond the letters, the Church staged a public politician Paul Ngei. Kenyatta’s reaction in this Following the committee’s recommenda- anti-oath demonstration, forcing Kenyatta to instance consisted of dropping Mr Ngei from the tions, the regime deregistered at least two capitulate and invite them to his Ichaweri home, Cabinet and ordering an inconclusive inquiry unions, the Kenya Federation of Labour and where the end to the oaths was negotiated. into the matter. the Kenya African Workers Congress in 1965. In general, however, the Church’s relation- Direct confrontation between the Nation and Their members were prohibited from affili- ship with the Kenyatta regime was one of, at best the Kenyatta regime occurred over the Preserva- ating to any external labour movements and respectful distance from, or at worst, complicity tion of Public Security Act of 1966. The Nation compelled to join the Central Organisation of in the regime’s excesses. Not only were signifi- vigorously opposed the Act, arguing that there Trade Unions (Cotu), which government created cant sections of the Church complicit in the was no justification for detention without trial. as the new union of all Kenyan workers. The land and property grabbing prevalent during This stance brought its editor-in-chief in direct President appointed Clement Lubembe as the the Kenyatta era, it also relegated any serious conflict with top regime functionaries and union’s first secretary-general, affiliated it to the engagement with the regime’s excesses to a few prompted President Kenyatta to summon and ruling party Kanu and kept its leadership under lone voices in the Church, particularly Okullu warn the editor against going ‘too far’. The news- constant watch to ensure it did not depart from and David Gitari. paper also lost its Ghanaian expatriate deputy supporting government policy. Hence, of all the Besides the Church, the media was part of editor who was deported from the country. societal groupings, it was the labour movement societal groupings whose relationship with The same ambivalent relationship may be that was the most thoroughly co-opted by the the Kenyatta regime was important in fostering said to have applied in the regime’s interac- Kenyatta regime. accountability in the regime. By Independence, tion with the academia. By the time the regime It was hence under this regime of subservient Kenya had at least 2 major dailies – the East wound up in 1978, there was frequent confronta- checks and balance institutions and co-opted African Standard, which started in 1902, and tion between its agents and the academia. This and controlled societal groupings that the LSK the Daily Nation, which emerged in 1960. In was particularly so after the assassination of was expected to restrain the Kenyatta regime. addition to the two newspapers, the Kenyatta JM Kariuki in 1975, although other protests had In part two of this article, we shall explore how era witnessed the gradual expansion in media been witnessed, for instance in the appointment effective the LSK was in this endeavor. outlets, including the emergence of the Weekly of Josephat Karanja as University of Nairobi’s Writer is studying LSK history for a PhD from Review in 1975 and the rise of Church-affiliated Vice Chancellor, which was denounced as Egerton University. publications. Besides, the broadcasting media unmerited. With Kariuki’s assassination, the

September 2020 | Nairobi Business Monthly | 27 Politics, Policy & Law ruined The politics of mediocre

BY JACOB OKETCH that they were contravening the law, as long as over the revenue allocation to the counties. the one in charge was tribally affiliated to their There are counties who stand to lose a substan- group of politicians from Western region master, the DP. tial amount of money should the new proposed were involved in a scuffle with the police It is this kind of attitude that frustrates formula be adopted. On the one hand, there are A who were at their gathering to disperse efforts to eradicate negative ethnicity. That the a group of senators who feel that enacting this a crowd that had apparently contravened the lawmaker could casually trash the rule of law formula is tantamount to weakening Devolu- guidelines for containing the Covid-19 pandem- in favour of tribalism frustrates efforts to unite tion. On the other hand, some Senators have ic. What baffled me about that encounter is that Kenya. The cohesion commission together with claimed that the formula restores the rights of the Mumias East MP Hon Benjamin Washiali other relevant agencies ought to be watchful counties who have higher population. They aver accosted a senior police officer whom he blamed of this kind of impunity, especially when we that the formula that was being used relied on for persecuting them yet they were doing the are approaching the General Election. It could false population data and that this contributed bidding of his fellow tribesman, the Deputy easily lead to lawlessness and anarchy. to unfair allocation. President William Ruto. To him, it did not matter Closer home, there is an impasse in the Senate The impasse is yet to be unlocked with Sena-

28 | Nairobi Business Monthly September 2020 tors failing to pass a Bill after the eighth attempt. tions that are slated for next year. It is therefore quential political leaders. First was the Jubilee Compared to the previous leadership of Senator important that political schemers accommodate party vice chairman David Murathe who even Kipchumba Murkomen as the Majority Leader, it this probability in their calculations. likened Mr Odinga to Nelson Mandela, South is not hard to see how dismal the performance of The Deputy President, Dr William Ruto is in Africa’s former President and liberation hero the current leadership is. Never in the history of a quandary over what role the so-called ‘deep to the entire world. He was swiftly followed by the Senate has the Government taken this long state’ will play in the succession game. Unapolo- COTU secretary general Francis Atwoli who also to pass such a crucial Bill. Matters have been getically, he has come out guns blazing, claim- rooted for the former Prime Minister to succeed complicated by the fact that even some nota- ing that the deep state is indeed working hard President Uhuru Kenyatta in 2022. ble members of the ruling party have ganged to put brakes on his quest for the presidency. In central Kenya, the race to succeed President up with other likeminded Senators to thwart However, some leaders have come out to rebuke Uhuru Kenyatta as a kingpin is heating up by efforts towards the passing of the proposed Bill. the DP for his remarks. They have questioned the day. With the exception of Martha Karua and It is noteworthy that the passing of a revenue the veracity of such claims given that the DP is Peter Kenneth, the rest of the contenders are not allocation bill calls for bipartisanship since the actually at the apex of political power. Others experienced enough to take up the mantle. Much matter at hand affects the entire republic. have also opined that the DP’s remarks are an as Mr Mwangi Kiunjuri has been in politics for Anyhow, it is important to note that the idea affront to his boss - President Uhuru Kenyatta. a long time, he has not handled major respon- of Devolution is to ensure that resources get How this back and forth exchange between the sibilities in the political arena. Had he stayed to the grassroot. As it is, the new formula has antagonistic leaders ends remains to be seen. in his ministerial docket, it would have given to be implemented because the timeline for One thing is clear though; the DP seems to have him leverage to position himself for that role the formula that has been in use has elapsed decided to take on the shadowy powers that but now that he was elbowed out early enough, and nothing can be done about that. We also seem hell bent on stopping him from succeeding there is nothing to clutch on. Hon. Wa Iria just know that the way funds are allocated in the President Uhuru Kenyatta head on. appeared on the political scene when Devolu- counties will, in some way, influence how the Wiper leader Kalonzo Musyoka is claiming tion took effect. He will need to hang on the BBI report will be handled by the electorate. It that he has a secret pact with ODM leader Raila shoulders of the more politically experienced therefore behooves the legislators to look at the Odinga about the 2022 General Election. The leaders before eventually ripening to be the bigger picture and come to a consensus. We ODM fraternity has however come out to deny region’s kingpin. must not sacrifice an opportunity to address this. The former VP may have to consider the The issue of gender representation in Parlia- problems with the Constitution at the expense fact that Raila himself may want to vie. Infact, ment has to be dealt with once and for all. It does of getting higher allocation of funds. I would some of his close allies have been hinting just not look good on us to have passed a Constitu- rather we implement the formula for the sake tion that we have been unable to fully imple- of the progress of the constitutional drive. This is the third ment. This is the third administration since Even as we hurtle towards the General Elec- administration since the 2010 Constitution was promulgated. One tion in 2022, we need to accommodate certain the 2010 Constitution was wonders why it has become so difficult for the scenarios that may play out against the expecta- promulgated. One wonders National Assembly to ensure that the two thirds tion of the public. Looking at what is happening gender rule becomes law. Partriachal tenden- in the US with regards to the covid-19 pandemic, why it has become so cies have emasculated the necessity of passing one cannot ignore the fact that the pandemic difficult for the National the law. It is plausible to argue that even the can change the political direction of a country Assembly to ensure that current clamour for constitutional reforms to in unexpected ways. President Donald Trump the two thirds gender rule expand the Executive does not make sense if we is fighting for his political life after bungling have been unable to live by the spirit and letter the response to the pandemic. What he thought becomes law. Has partriachy of a supreme document that we enacted just a would be his campaign plank, the economy, have emasculated the decade ago. If Rwanda can do it, why is Kenya, has fallen like a house of cards. He is staring necessity of passing the law? the most influential country in the East Africa at defeat. region dithering? In the same way, the pandemic has undoubt- Proponents of winner takes all nature of our edly changed the political calculus locally. We that for some time now. Given the journey both presidential elections have to climb down from have to account for the fact that if the pandemic leaders have travelled since the last election, the high horse. We must have elections that stretches a lot further, there could be a possi- I would caution Hon. Musyoka not to be too give the citizenry clear options regardless of bility of postponing the General Election. That optimistic about whatever alleged agreement the outcome of elections. The endless cycle of would mean that President Uhuru Kenyatta he has with Raila because the race is still wide violence after every poll is a stain on the nation’s would have an extended term. This is not a open and Mr Odinga may be having other ideas conscience. Can you imagine the number of farfetched idea considering that just across the up his sleeve. lives we have to lose whenever we have elections fence, Ugandan President Yoweri Museveni has This school of thought has been hugely vindi- and what this portends to the future genera- already told Ugandans that should the pandemic cated by the flurry of endorsements for the ODM tion? We have to reset this button and quickly prolong, he would not hesitate to cancel elec- leader for the top seat from some of the conse- enough.

September 2020 | Nairobi Business Monthly | 29 Politics, Policy & Law

STRATEGIES Why it is not going to be easy for Donald Trump

This year’s election is not just about the change of guard, but an attempt to stop the nation’s slide from democratic principles, which are neither Democratic nor Republican in nature but American — Barrack Obama

S President Donald Trump is in big trou- Trump administration has responded to the ble. Americans are going to the polls pandemic. Instead of listening to the advisory U in November and everything seems to emanating from health experts from the very have all gone wrong for the leader of the free beginning, the President took to dismissing world. From the very beginning, Trump’s presi- the danger of the pandemic. He termed the dency has been shrouded in controversy; his pandemic as a hoax. At some point, he said victory against Hillary Clinton was mired in that it will just go away. At another time, he allegations of illegalities some of which were questioned the wisdom of extensive testing. subjected to inquiry in the Mueller investiga- Initially, he even discouraged the wearing of tions, which nearly confirmed that indeed the masks as a protective measure. He refused to Russians interfered with the polls in favour of wear a mask for some time and only relented the President. when he was forced to visit a military establish- President Barrack Obama steered an admin- ment that insisted that all attendees must wear spectacular when those who are doing this are istration that was devoid of any scandal propor- masks. He crowned all that by contradicting respectable members of the GOP. During the tions. In fact, the President himself came out health experts regarding projections toward Democratic Party Convention, former Ohio as squeaky clean in that, there wasn’t even one the containment of the pandemic. Governor, Kasich, a sworn card carrying member scandal associated with him. When America lost one of its liberation of the Republican Party gave a speech repudiat- Enter Donald Trump and there have been icons, John Lewis, all the living retired Presi- ing the Trump administration and endorsing Joe uncountable scandals revolving around the dents with the exception of the ailing Jimmy Biden for President. It was even more startling President; if it is not about his businesses Carter attended his memorial service. President when none other than retired General Collin benefiting from the Government then it is his Donald Trump decided to skip it. Presidents Bill Powell also endorsed Biden at the convention. dalliance with Ukraine in an effort to besmirch Clinton, George W Bush and Barrack Obama Powell is not an ordinary republican. He has Vice President Joe Biden’s character, not to were all there and they paid a glowing tribute served the country under republican presidents mention allegations of his sexual escapades. to the fallen icon. It was a show of unity among in various capacities. But what makes him even But what has caused an uproar among the the American people in the face of a tragedy. more revered, is his service in the military where citizenry, especially the minorities, is the Presi- The country is known for rallying in unity in he rose to be the chairman of the Joint Chiefs dent’s brazen approval of racist tendencies and times of tragedy. It still beats me why the person of Staff. He also served as the secretary of state his proclivity for authoritarianism; his order of who is a symbol of unity in that great republic under President George W Bush. the use of force to disperse peaceful protesters decided to sit on the fence; not a good sign for This endorsement of Biden by senior from Lafayette Square so as to pose with the bible the state of the union of a country that has a members of the Republican Party is a demon- in front of a church set off a series of protest troubled history of segregation among other stration of the polarization of the party under across the entire nation in support of the Black civil injustices against the minority groups, President Donald Trump’s administration. It is Lives Matter movement arising from the death particularly people of colour. quite regrettable that the party has been reduced of George Floyd in the hands of the police. It is not quite often that you see republicans to the President’s pet, which he manipulates as Coupled with that unrest, was the outbreak openly showing support for a presidential he wishes. This has been quite notable whenever of the Coronavirus in the US and the way the candidate from a rival party. It is even more there is an issue where Members of Congress are

30 | Nairobi Business Monthly September 2020 expected to take a position. It was quite pitiful to nor Republican in nature but American. the H1N1 virus. He was also the team leader of see Senators ducking questions from members Even when it is obvious that the American the group that steered the economic recovery of the press for fear of resprisals. Given that the economy has taken a severe beating occasioned from 2008 onwards. The endorsement of his election is around the corner, no Republican by the coronavirus pandemic, President Donald convention speech was across the board; even Senator wants to be seen taking an opposite Trump does not tire of reminding Americans some notable republicans like Karl Rove, the view from that of the President in fear of losing that he has steered the most vibrant economy mastermind of George W Bush’s stunning elections. in the country’s history yet it is a known that victory lauded his speech. The Democratic Party Convention was bril- he inherited an economy that had the long- Joe Biden will immensely benefit from liantly crafted regardless of constraints occa- est running recovery in the country’s history. President Barrack Obama’s reservoir. Joe was sioned by the coronavirus pandemic. Since In fact, it is the economy that the President actually Obama’s chief adviser when he was he left office, President Barrack Obama has expected to pitch his reelection on, until the his Vice President. The genius of David Axelrod restrained himself from attacking President virus hit the country. It is not going to be easy and David Plouff in matters to do with manage- Donald Trump directly, but on this day, he came for him to convince Americans that he is capable ment of election strategies must be tapped by out in full throttle, tearing down the President, of steering them back to prosperity when he has the Democratic Party candidate. During his accusing him of derailing America’s democracy been unable to properly manage the pandemic convention speech, President Obama gave the by curtailing people’s freedoms and attempting even when he was equipped with a strategic plan indication that he will do all it takes to put Biden to derail the voting process by interfering with for managing a pandemic from the previous into the White House. So, given his enormous voting by mail. It is instructive to note that he administration, which he blatantly ignored. campaigning skills, we are likely to see Obama delivered his address to the convention from While the President seems not to have a stra- pull all stops to ensure that the Democrats romp Philadelphia where America’s Constitution was tegic plan for managing the pandemic even as to victory and he said as much. This could be written. In his view, this year’s election is not it continues to ravage the country, Biden has the most consequential election in America’s just about the change of guard, but an attempt to one. It is also not lost on observers that Biden history. In fact, Obama considers it a vote in stop the nation’s slide from democratic princi- was quite instrumental in the team that helped defense of democracy. The battle begins now. ples, which he reiterated are neither Democratic President Barrack Obama to effectively manage See you on the other side.

September 2020 | Nairobi Business Monthly | 31 Cover Story

32 | Nairobi Business Monthly September 2020 a shaky future retirement

Crisis looms in future pension as recession strangles retirement savings Across the economy, employers have suspended a total of Sh2.1b in contributions to pension schemes since March as companies took advantage of the authorized payment holiday to maintain their cash flows

BY GILBERT NG’ANG’A

tate pensioner National Social Security Fund the sector. (NSSF), which is smarting from a series of historic Nzomo Mutuku, the RBA chief executive officer said late financial scandals, faces a dicey future as the August that across the economy, employers have suspended COVID-19 pandemic pulls millions of Kenyans a total of Sh2.1b in contributions to pension schemes since out of income, denying them a chance to save March as companies took advantage of the authorized Sfor their retirement. payment holiday to maintain their cash flows. Over one million Kenyans have reportedly been laid off, The agency in April announced temporary relief measures suspended from work or left with no gainful employment that allowed cash-strapped companies to apply for discon- as the healthcare crisis snowballs into one of the worst tinuation of employer-retirement contributions to pension economic downturns since independence. schemes until the Coronavirus crisis thaws. The pandemic has hit so hard that data by the Kenya “The retirement benefit business has been adversely National Bureau of Statistics shows that at least 30.5% of affected. Employers have taken a holiday from payment Kenyan households are for example unable to pay rent on while members have withdrawn money provided by the agreed dates due to tough economic times. law,” Mr Mutuku said. The report also showed that at least 43.2% of the active Economic pundits said the corporate actions highlight the labour force is not contributing to economic activities due substantial hit which workers are facing due to layoffs and to the coronavirus pandemic. slowed economic activity. Pension industry experts have Late August, the Retirement Benefits Authority (RBA) warned that if the crisis worsens into next year, the industry warned the pandemic had significantly weighed down will record massive withdrawal from pension schemes as the pension sector’s long-term assets and cash deposits members seek to conserve cash to meet their basic needs. that stand at Sh1.3tn. NSSF is one of the biggest players in But it is not a Kenyan problem. A June 2020 report by

September 2020 | Nairobi Business Monthly | 33 Cover Story

the Organisation for Economic Co-operation and Development (OECD), a global economic think-tank said that the outbreak of the COVID19 pandemic, the associated lockdowns and the related economic downturn are impact- ing retirement savings, retirement savings schemes, providers, regulators and supervisors, potentially leading to future lower incomes in retirement and important dysfunctions in the market. The report warns that globally; the impact will be a decrease in the value of assets in retirement savings accounts from falling financial markets and an increase in liabilities from falling inter- est rates in retirement savings arrangements with retirement income commitments. “There is likely to be a lower capability to contribute to retirement savings plans by individuals, as they see their wages reduced or lose their jobs, and by employers suffering financial distress,” said the report. “A reduction in savings and compound interest earned as a result of measures intended to provide relief in the short-term that can have a large negative impact in the long-term, especially on retire- ment income adequacy (e.g. contribution holidays, early access to retirement savings)” added the report. Industry experts said during such a down- turn, there is a possibility of workers and other savers raiding their pension pots to find money for survival. “The Covid-19 crisis is exposing the deep cracks in the social fabric of our country and exacerbating the sharp divide between the haves and the have-nots in Kenya. Although a long and terribly harsh retirement. If we can’t The outbreak employers, and hence salaried workers have afford the fiscal cost of supporting them for of the COVID19 been impacted by the pandemic, the extent even a few weeks today, we certainly won’t be pandemic, the associated and scale of the stress this has caused our able to afford to pay them a tax-funded social 15 million non-salaried workers has been pension over two decades,” he added. lockdowns and the related disproportionately larger,” said Sundeep And this is where things get worse for economic downturn are Raichura, Group CEO, Zamara Group. NSSF. Contributions have not been growing impacting retirement “Informal sector workers, who form nearly well enough in the recent past. NSSF said its savings, retirement savings 85%of our workforce, are not eligible for a contributions receivable increased by 5% from pension or any other social security safety Sh13.6b in 2017 to Sh14.04b in 2018. Compar- schemes, providers, net. If their current behaviour and attitude atively, benefits paid out rose to Sh3.78b in regulators and supervisors, towards savings remains unchanged, Kenya 2017/18 compared to Sh3.661b the previous potentially leading to future will witness an exponentially larger and more financial year. The balance sheet increased lower incomes in retirement sustained social and fiscal crisis in the near in size to Sh224b at the close of financial year and important dysfunctions future – once our informal workers are forced ended June 2018. This is compared to Sh198.5b to permanently drop out of the workforce in the previous period. Its developed property in the market. their old age. At that point, unless they have investment portfolio also grew to Sh21.8b in saved enough for at least 20 years, they will face 2018 compared to Sh20.8b the previous year. As

34 | Nairobi Business Monthly September 2020 a shaky future pension

If the crisis “The high cost of administration of the fund worsens into is also a major contributing factor. The dismally low returns the fund earns on its investment next year, the industry portfolio causes a situation whereby very little will record massive is apportioned to members’ accounts. What a withdrawal from pension worker gets from the NSSF as retirement income schemes as members seek is a lump sum that can hardly last 12 months if one is to retain their pre-retirement standard of to conserve cash to meet living. Clearly, the majority of Kenyan retirees their basic needs are doomed to poverty. That the government would want to saddle them with more taxes is indeed baffling,” he added. NSSF is facing scrutiny from Parliament over a Sh243 million claim by a Chinese contractor at Sh3.155tn. This translates to holdings worth who was building the incomplete Hazina Trade Sh929.7b for the pension funds. Centre in Nairobi. Early this year, the Public At the beginning of the year, they held Investments Committee (PIC) said China Jiangxi Sh837.9b worth of debt, equivalent to 28.6% of International had slapped the NSSF with the the total of Sh2.935 trillion. compensation claim for delayed payments to While NSSF has been posting a surplus, the the firm for the stalled construction of the city Office of the Auditor General recently raised centre office block, exposing the fund to a loss, queries over the operations of the fund and its should the contractor claim interest on delayed financial sustainability. payments. Among other things, the auditor in a report In 2018, an audit report by E&Y, an audit firm tabled in Parliament said the fund was sagging had revealed that expected returns from the under the heavy weight of unremitted members’ NSSF’s Sh6.7b Hazina Towers and Sh1.6b Mili- contributions, contributions in transit, long mani executive apartments were hiked during outstanding payments to creditors, unrecon- feasibility studies to make the projects appear ciled cash and bank balances and illegal transfer viable. Cotu, the workers union had contracted of NSSF land. the audit firm in 2016. But not everything has been negative for NSSF. The report says China Jiangxi, which was In June, the National Treasury had proposed a contracted for the Hazina Towers project, was tax of up to 25% on the monthly payment of allowed to submit two bids during the procure- pensioners and NSSF’s annual earnings. The ment process. tax, contained in the Finance Bill 2020, which The fund has also been cited by Parlia- a result, the fund had a net surplus of Sh25.76b, Parliament rejected, would have lowered the ment over unremitted member contributions up 7.8% from Sh23.89b in the 2017. interest that the fund pays on pension savings, amounting to Sh5.6b and its contributions The Fund’s investment is spread across vari- effectively hurting retirees. balance of Sh14b. ous sectors of the economy. Ordinarily, an objec- Taxing NSSF earnings would have seen the In 2018, the then Auditor-General Edward tive evaluation is done on fund managers on a Fund remit nearly Sh.3.5 billion to the Treasury Ouko was pushing for NSSF to kick out four of the regular basis to ensure quality investment. The this year. five fund managers it has contracted to oversee activities of the fund managers are monitored by Experts have over time queried the future retirees’ savings for making risky investment the Board of Trustees through the management, sustainability of NSSF model, saying it risks decisions that led to loss of nearly Sh1 billion. custodians and the Actuary. not being able to meet its financial obligations, Mr Ouko, in the NSSF’s financial statement for As per the 2018 report, the current invest- especially in the event of a long-term crisis. the year ended June 2017 published Thursday, ment mix is made up of 43% in Government “In terms of ability to provide adequate old- wants GenAfrica, Britam, Old Mutual and Stan- securities, 32% stocks in the Nairobi Securities age income, the NSSF which is a mandatory lib locked out for exposing workers to possible Exchange (NSE), 3% in deposits and 22% in other scheme performs very poorly. The lump sums it loss of Sh969.72m in collapsed Imperial and investment options. pays to retiring workers can hardly replace pre- Chase banks, media reports show. The four The Central Bank of Kenya (CBK) May 2020 retirement income. Why is this so? Low ceilings fund managers have been accused of recklessly data shows that pension funds including on monthly contributions is a big factor,” said investing a cumulative Sh996.4m – comprised NSSF now account for 29.46% of government Jaindi Kisero, a renowned economic journalist of Sh666.90m in corporate bonds and Sh329.5m domestic debt, which at the end of May stood in a June 19 commentary in the Business Daily. in fixed deposits – in the two lenders.

September 2020 | Nairobi Business Monthly | 35 Cover Story

priorities Banking on social security: Is it a choice?

BY VICTOR ADAR

n the age of coronavirus pandemic, the Government, non-governmental organi- I zations and private employers should raise the bar to ensure that workers are able to save enough for retirement. Sadly, how do you deal with a situation that has left the two parties, employee and employer, facing hell? Anything that happens during this era, or doesn’t happen, is a story for another day – jobs or no jobs, companies going down, and broken families. Saving money is not a priority at the moment. Perhaps a different approach, and one that gives you control is what could work right now. Many corporates and individuals are navi- gating through a pandemic that has stretched for over 100 days, and nobody knows when things will bounce back to normalcy. Negative performance of most companies was expected, and aviation industry is a real life example. The first six months of 2020 have put airlines between a rock and a hard place. This is backed by data from International Air Transport Association which shows that GDP supported by aviation in Africa might fall by up $35b, which is $7 billion more thatn the figure that the body had previously predicted. A majority of players in the aviation industry have grounded their airlines. Some have been forced to reduce operations and Kenya Airways is one of them. The national career in an online and long-term survival of the airline. Nobody but also shift resources to where there are huge investor briefing that took place end of August wants to lay off people. It’s painful but it needs demands. It is a whole different ball game. said that it has been quite a tough year thanks to be done,” says Michael Joseph, chairman of Indeed, things are quickly going to change. to depressed demand for air travel. It is resizing Kenya Airways board. Experts have analysed the pandemic and across its networks, a move that will obviously The Chairman sounds like a man with a lot of concluded that it will take time to do things affect fleet and employees big time. understanding. Reality is that the coronavirus normally. Already, most companies, though “In the next six months it will be tough time pandemic has troubled not only businesses but trying to operate within the law, are struggling. for the airline… It’s really tough and I would urge also homes so much that building strong social Fund managers too are not spared. A look at the investors to give us 100% support. But going security schemes might be the best solution. National Social Security Fund (NSSF), a national forward, we’ve analysed the situation in detail... The pandemic has created an invisible mess, institution offering retirement solutions show We know that we can continue to be the pride and companies that will fail to innovate will that it is not easy to meet targets as far as revenue of Africa if we make and follow through on suffer. Look at the working from home econom- collection is concerned. the right strategic calls without undue inter- ics, for example. The trend is forcing companies There was a net surplus of Sh25.76b in the ference as we prioritise the financial viability and individuals to not only cut down on rent year to June 2018, up 7.8% from Sh23.89b in the

36 | Nairobi Business Monthly September 2020 a shaky future pension

2017 financial period as per last audited figures have reservations of the promises made by the a scheme is a tedious process that needs time of the NSSF. The figure is expected to dip as employer on their pension arrangements. For and resources. Most of the SMEs are less on many employers have reduced their operations this reason, most employees have little respect human capital and would try to maximize the significantly as it is becoming tough to sustain for pension plans. Most pension plans have poor use of whatever they have to run business. This a workforce amidst the current circumstances. if any pension plan communication policies and means that it may become strenuous to allocate Generally, regular contributors are also affect- due to limited knowledge most employees look resources to non-core business like scheme set ed in such a scenario. When a contributor fails at pension plans as a way for an employer to deny up and management processes. to send payments, the NSSF is absolutely denied them their deferred salaries when the contract Once a scheme is set up the minimum number revenue. As anybody in pension business will is terminated on a sour note,” says Fred Waswa, of trustees required is four. Because of the small tell you, individuals and businesses contribute a group CEO of Octagon Financial Services. staff counts that SMEs have, it is unreasonable to certain amount resulting to a financial freedom As always, the savings that an employee have a large percentage of employees as trustees. for individuals and businesses at retirement. makes in the pension plan earn a tax-free The regulation for trustees to serve a maximum The questions are: How will the NSSF protect income on the investments. These taxes are of six years makes the whole process compli- workers? Are we breeding a new generation that subject to certain limits stipulated in law. cated thanks to the fact that the organization will retire with little or no savings? How will This increases the returns on the savings and is likely to run out of employees to be trustees. pension money be remitted when the workers hence faster growth of the plan to ensure enough The Retirement Benefits Authority (RBA) lack buying power simply because some are on savings at retirement age. requires that for a scheme to be established it pay cuts, or unpaid leave? The Coronavirus pandemic has seemingly must be set up under a trust deed. This is to Over the years, the more enlightened segment tested the government interest in ensuring that ensure the scheme operates as a legal entity of the workforce has come to insist on more the whole workforce is taken care of when it separate from the founder. This is a legal docu- personal control and transparency in dealing comes to pension plan arrangements. Thus, ment that usually is prepared with the help of with employers, hence wanting to manage their what goes into setting up a scheme has been legal experts, which require financing of such a own retirement planning. questioned. process. The SMEs may not afford such start-up There are many reasons employers especially costs of retirement schemes. those in the private sector will be forced to set It is also a requirement that for a scheme to be up pension plans in the near future. Many of Due to poor registered by the RBA, it must have appointed them have been ignoring that route simply management a fund manager who will provide professional because of lack of the needed technical and of these plans in the fund management services, a custodian bank legal support. But the current goings on might to provide settlement and custody services for be an eye opener. past by employers/ scheme assets and administrator to provide For employees, a pension plan is of high Trustees the employees record keeping and general administration interest because it is a savings for their retire- have reservations of the of the scheme. These are services essential to ment. Very few employees will develop personal promises made by the ensure safety of members’ assets. However, each savings for their retirement and therefore a employer on their pension of these service providers will charge minimum pension plan provides an avenue for a forced fees for small start-up schemes. Most SMEs may saving. On the other hand, due to tax exemp- arrangements. not sustain such initial costs. tions that come with a registered pension plan, The trustees of a scheme require training to employees are able to get tax relief on their ensure they are able to provide “trusteeship” contributions to the pension plan and hence which is also a cost that small schemes may not have high take-home pay than when they would sustain. It is at the back of this that umbrella have no pension plan. Establishing a scheme schemes come in handy for the private sector, as Having corporate organisations with pension It is interesting that it is not mandatory for the employer does not have to set up a scheme. plans will be a plus in the fight against poverty. companies to provide retirement savings Knowing the advantage that comes with join- Pension plans will go a long way in reducing avenues for their employees. But the good thing ing a scheme, an employee will simply join an dependency at old age and hence reducing is that the maddening coronavirus has, sort of, existing scheme registered and regulated by poverty at that level of the society. The savings equally exposed the underbelly of employers RBA and the employer will deduct and submit that pension plans mobilise is good for the and workers. As an example, most employees contributions to the umbrella scheme. economy, because they are long-term savings. are becoming more conscious of their future In most developed nations, the retirement But the whole process has many challenges. That income when they get employed and the ques- benefits industry is driven by umbrella schemes is why the government has a high interest and tion of benefits does not leave out retirement whereby multiple and unrelated employers thus ensuring that an enabling environment is schemes. participate in a single pension scheme, a move provided for these schemes to thrive. Companies, particularly the Small and that tends to be cost effective and also avoid “Due to poor management of these plans in Medium Enterprises (SMEs) still face challenges exposing employees to fiduciary risks when the past by employers/Trustees the employees in establishing their own schemes. Establishing they are made trustees.

September 2020 | Nairobi Business Monthly | 37 Cover Story

RETIREMENT Financial planning is not for when you retire Understand the inevitability of retirement, the importance of retirement planning and what power of choice you have as an investor, and make a sound decision that ensures you enjoy the sunset years of your life.

BY DAVID WANJALA Benefits he pensions industry refers to the econom- Retirement savings ensure that your income ic sector comprising of retirement benefits stream does not stop even when you stop work- T schemes, the assets these schemes control ing. After retirement, many experience a decline and relevant regulations affecting the schemes’ in the amount and stability of income relative to operations. their productive years. The savings ensure that The industry has witnessed significant this decline is manageable or is non-existent growth with the number of registered members and enables you to be able to live the lifestyle increasing from 0.7m and assets under manage- you desire even after retirement. ment worth Sh0.42tn in 2010 to 3m members Savings in a pension scheme earns and assets worth Sh1.32tn as of December 2019, compounded interest which means that your according to the Kenya National Bureau of Statis- money grows faster as even the interest earned tics (KNBS) FinAccess Report 2019. is reinvested and grows. Additionally, retire- The Retirement Benefits Authority (RBA) ment schemes are tax-exempt meaning that is the governing body established under the the schemes have more to reinvest. Retirement Benefits Act 1997 and is tasked with Pension contributions enjoy a monthly tax regulating and supervising the establishment, relief of up to Sh20, 000 or 30% of your salary management and promotion of retirement whichever is less – this lessens the total PAYE benefits schemes. The Authority’s mandate also deducted from your earnings. includes protecting the interest of members By providing an income in retirement, and sponsors of retirement benefits schemes; pension schemes ensure that members do not promoting the development of the retirement experience old age poverty where they have to benefits sector; implementing all government rely on their family, relatives and friends for policies relating to the sector and; advising the survival. Cabinet Secretary, National Treasury on the Lastly, savings in a pension scheme can help national policy to be followed with regard to you achieve your dream of owning a home. the retirement benefits industry. This can be done through a mortgage or a The RBA’s mandate covers all private and direct residential house purchase using your government parastatal pension schemes. The pension savings. A member may assign up to pensions department under the Ministry of 60% of their pension benefits or the market National Treasury governs the civil service value of the property, whichever is less, to pension scheme and the Teachers Service provide a mortgage guarantee. The guarantee Commission pension scheme. may enable the member to acquire immovable Despite the aforementioned development property on which a house has been erected, and growth in the pensions sector, about 80% erect a house, add, or carry out repairs to a house, of the working population in Kenya are not secure financing or waiver, as the case may be, members of any pension scheme. for deposits, stamp duty, valuation fees and legal fees and any other transaction costs required.

38 | Nairobi Business Monthly September 2020 a shaky future retirement

On the other hand, a pension scheme member amount paid is Sh2, 000 per household per pillar. It is important that before joining any may utilize up to 40% of their benefits to month delivered every two months through pension scheme you learn how they operate so purchase a residential house directly subject to appointed payment agent to poor and vulner- that you make a more informed decision. The a maximum allowable amount of Sh7m and the able persons over the age of 65 years. As at the schemes here can be categorized in four differ- amount they use should not exceed the buying end of the financial year 2015/2016, the program ent ways depending on contributions, mode of price of the house. had covered 203,111 households. payment at retirement, type of membership and A retirement benefits scheme is a savings First pillar is mandatory to all workers and mode of investment. avenue that allows contributing individuals contribution is by both employer and employee. to make regular contributions during their It targets workers in both the formal and infor- Contributions productive years into the scheme and thereafter mal sectors. It is here that the National Social Under this category, there are two types of get income from the scheme upon retirement. Security Fund (NSSF) comes in. pension schemes; defined contributions In Kenya, the benefits scheme has three Then there is the second pillar, categorized schemes and defined benefits schemes. These pillars. Zero pillar refers to the state-funded by the voluntary nature of all schemes that can be differentiated as below: pension for citizens over the age of 65 and fall under it. It includes both individual and Changes in demographics, volatile interest provides a basic income. It is managed by the employer-based pension schemes. rates, lower expected returns and the greater Ministry in charge of social protection. Through Other than the NSSF, the rest of the pension mobility in today’s workforce has in some way the Older Persons Cash Transfer program, the schemes in the country fall under the second made DC schemes more attractive to employers and employees.

Mode of payment at retirement The aim of a retirement benefits scheme is to provide an income in retirement; however, upon retiring, not all schemes are the same. On one hand, there are pension schemes where at retirement, a member of a pension scheme may access up to a third of their contri- butions plus accrued interest as a lump sum. The remainder is used to purchase an annuity (pension) that pays a periodic income to the pensioner in their retirement years, usually, monthly. On the other hand, there are provident funds. At retirement, a member of a provident fund receives their contributions plus accrued inter- est as a lump sum. It is key to also note the existence of Income drawdown funds which provide individuals and members of retirement benefits schemes with an option to access their benefits as a regular income through an investment fund upon retirement rather than taking up an annuity or a lump sum. In an income drawdown a retiree or any scheme member over the age of 50 years, may transfer their benefits from their current scheme to the income drawdown fund. The benefits are locked in the fund for a minimum period of 10 years while giving the member the ability to withdraw up to a maximum of 15% per annum of their fund balance every year. The remaining balance in the fund is invested and grows in the period of the 10 years.

Type of membership Under this categorization, we have three main

September 2020 | Nairobi Business Monthly | 39 Cover Story

types of pension schemes; Occupational Retire- ment Benefits Schemes that are set up by an employer where only members of staff of the organization are eligible to join; Umbrella Retire- ment Benefits Schemes that pool the retirement contributions of multiple employers on behalf of their employees thereby reducing the aver- age cost per member and enhancing the overall returns of both the employer and the employ- ees’ contributions and; Individual/Personal Retirement Benefits Schemes where individuals contribute directly into the scheme towards saving for their retirement. The contributions may be flexible to accommodate an individual’s financial circumstances.

Mode of investment and governance Under categorization by mode of investment, pension schemes may be said to be either segregated or guaranteed. In Segregated Funds, members’ contributions are invested directly by the Trustees via an appointed Fund Manager. The Trustees establish an appropriate Invest- ment Policy, which is then implemented by the Sources: (a). Segregated Schemes Performances – ACTSERV and Zamara Z-CASS Surveys Fund Manager. The scheme directly holds the investments and the returns are fully accrued reflect this. enjoyed a higher return of 12.2% p.a. to the scheme for the benefit of members. The chart below indicates how the industry It is important to note that on average Guaranteed Funds is a scheme offered by assets have been invested over time: members and pension trustees should aim to insurance companies where the members’ It is good to note that the bulk of the invest- gain returns that are above inflation at all times. contributions are pooled together. The insur- ments are in Government securities, Equities Also, the aim for fund managers should be to ance company guarantees a minimum rate of and immovable properties in that order. The perform better than the various benchmarks return that should not exceed 4% p.a. by law and schemes are yet to take advantage of the new set out in the Investment Policy Statements. should the actual return surpass the minimum asset classes like Real Estate Investment Trusts guaranteed rate, the insurance company tops up (REITs) and Derivatives. Access to savings the minimum rate with a bonus rate of return. Withdrawing from a pension scheme is Historical performances highly discouraged as it foils the retirement Historical asset allocation Some of the different factors that determine the plan one has and may end up reducing their Every retirement benefits scheme must formu- performance of pension schemes include asset income replacement ratio at retirement. The late an Investments Policy Statement (IPS), allocation – the proportion of the assets that are target is that one should have an income which guides how investments are to be done. invested in a certain asset class; security selec- replacement ratio of about 75% if they are to The IPS outlines the process for a retirement tion – the ability to select the best performing lead the same quality of life they had before benefits schemes’ investment-related deci- security within a specific asset class; size of retirement. However, it remains an allowable sion making as well as the investment limits scheme and; risk appetite. provision, should the need arise and a member per each asset class and even the securities has no alternative source of fund. There are that the fund can invest in. The IPS should Performance of retirement schemes two ways one can access their pension benefits; however not conflict with the limits dictated over the last seven years, focusing on early leaving or retirement. by the RBA Investment Guidelines. The IPS of the performances of guaranteed and For a member that opt to leave a scheme the various schemes varies as the characteris- segregated funds early before attaining the retirement age, tics of members differ. For example, a pension From the above chart, it is evident that segre- they have the following four options; transfer scheme with relatively many members nearing gated funds have outperformed guaranteed their savings to another registered retirement the retirement age will not invest too much funds – with the average performance of the benefits scheme; leave their savings in the in long-term and illiquid asset classes such as guaranteed funds over the last seven years at scheme as a deferred member’s account which immovable property, and the scheme’s IPS will 9.7% p.a. whereas segregated schemes have the member may access on or after the age of

40 | Nairobi Business Monthly September 2020 a shaky future pension

pension savings plan and keep contributing as long as they are in a position to. If you do not have a pension plan, you better start one and make contributions. Some pension scheme members may want to withdraw their pension because they are afraid their money is losing value. However, by doing this, the member helps in crystalliz- ing the decline in value. To prevent this they should delay taking their pension if they can. It is key for members to have a long-term view and to allow the income planning and genera- tion course to run its course. Dips in the market are a common occurrence and the market will eventually recover.

What to consider before joining a pension scheme Starting early also means that you will be able to take full advantage of the compounded growth of your savings and have a larger retire- ment pot when you retire. There are several key factors to consider including returns - the return rate of your pension provider should be high enough to ensure a sizeable growth for pension savings. Basically, choose where you get the highest returns. Affordability and flexibility are also key. Choose a plan that you can contribute to without too much strain. Choose a plan you understand how your money will be handled, the access options and how it will be paid out to you at retirement. Your scheme’s features should match your goals. (b). Guaranteed Schemes – Cytonn Research with data collected from 18 Retirement planning is a long-term affair Approved Issuers since 2001 and it is best you have a pension provider that you can trust. Good governance structures fifty; withdraw from the scheme in lump sum an schemes have also been affected as they invest and management experience are two of many amount not exceeding their portion of savings their members’ savings in the same economic aspects you can use to evaluate your pension plus 50% of the employer’s portion with the environment. Some of the key impacts that plan provider. remaining 50% retained in the scheme until the the pandemic has had on retirement schemes Lastly, find out what the other benefits that member retires, opts to transfer the benefits to include a decrease in the value of assets in retire- come with the fund are, such as insurance covers another registered retirement benefits scheme ment savings accounts from falling financial and purpose to take advantage of the same. or emigrates to another country with no present markets; an increase in liabilities for guaran- People’s behavior toward retirement plan- intentions of returning and, lastly; a member teed and defined benefits schemes; a lower ning is intrinsically influenced by their attitude, who has emigrated from Kenya and has no capability to contribute to retirement savings knowledge, and information. By understand- intentions of returning to reside in Kenya can plans by individuals, and by both employers ing the inevitability of retirement, the impor- access all of their savings including the whole and employees; operational disruptions as a tance of retirement planning and what power of the employer portion. result of working remotely and; low to negative of choice you have as an investor, you can be Covid-19 pandemic returns, which impacts the overall retirement able to make a sound decision that ensures you This has had a significant impact on capital income adequacy. enjoy the sunset years of your life. and financial markets performances. Pension Members should however stick to their From a report by Cytonn Investment

September 2020 | Nairobi Business Monthly | 41 Money Sh30.6b From the assessment of Nakumatt’s financial position, &Markets the administrator determined that a liquidation route would mean that Sh30.6b of the total creditors of Sh35.8b, were OTHER STORIES Recent developments in real estate 42 unlikely to be paid recourse Business restructuring options

Rarely are opportunities presented to you in the perfect way, in a nice he world is facing unprecedented times little box with a yellow bow on top. Good opportunities are messy and occasioned by the prevailing Pandemic confusing and hard to recognize. They’re risky. They challenge you — T and we have seen Governments and Susan Wojcicki, CEO YouTube businesses putting in place various measures to ensure continuity of the economies and businesses. The role of government is always to ensure that they provide the requisite operational environment for businesses and individuals to thrive. It is, therefore, the role of the vari- ous arms of government to work together in ensuring that we have the right fiscal and monetary policies, laws and that they are well implemented to protect the citizenry. One of the biggest requirements for busi- nesses and individuals to do well is the avail- ability of liquidity and this is brought about by the ability of the businesses to run profitably. Recently we have seen significant challenges with most businesses being hard hit. If we take the performance of the listed banking sector stocks to represent the overall business perfor- mance, we have seen a 33% drop in the overall profitability as measured using the Earnings per Share in the half-year financial reports. From this, it is therefore important for busi- ness owners to understand what key options are available, to ensure that their businesses remain afloat and grow in the long term. Companies that face significant financial challenges have various options that they can explore including getting in new capital, either Debt or Equity, or going the extra mile and request for time to restructure their businesses.

The law Starting from the point that the biggest chal- lenge is when a business cannot be able to raise enough cash to pay for its obligation, if this happens the company is said to be insolvent.

42 | Nairobi Business Monthly September 2020 Money &Markets

There are two levels of this; where the company’s liabilities are more than the assets, and; techni- cal insolvency where the assets exceed liabili- ties but cannot be easily liquidated to pay off the obligations that are due. It is good to note that mere insolvency does not afford enough ground for lenders to petition for involuntary bankruptcy of the borrower or forced liquidation of the business. The Law has continued to improve and provides alternatives on how a technically insolvent business can be assisted to get back to its feet and be able to service its creditors’ obligations and protect the interests of the other stakeholders. The available options include administration; company voluntary arrange- ments and; liquidation. Administration is a fairly new development in Kenya. It was introduced by the Insolvency Act, No. 18 of 2015 as an alternative to liquida- tion, with three key objectives; to maintain the company as a going concern; to achieve a better outcome for the company’s creditors than liqui- dation would offer, and; to realize the property of the company and make distributions to secured or preferential creditors The process of administration is headed by an Administrator, a certified Insolvency Prac- titioner, who may be appointed by an adminis- tration order of the court, unsecured creditors, or a company or its directors. He is required to perform the administrator’s functions in the shall vote on it. The percentage of an individual The Directors must appoint a person, who interests of the company’s creditors as a whole. vote shall be determined by the amount of debt must be a licensed insolvency practitioner, Once the Administrator is appointed, they are owed to the creditor. The creditor may opt to to supervise the company for the process of entitled to all the records of the company and are either vote for the proposal without amend- implementing the voluntary arrangement. The required to present a proposal to the creditors on ments, vote for the proposal with amendments, Supervisor must within 30 days of the proposal their plan to salvage the company. The Admin- or reject the proposal altogether. The decision or a longer period be allowed by the court to istrator assumes control of all the property the of the creditors meeting shall be final. submit a report detailing their opinion on the company is entitled to manage the affairs, and Company voluntary arrangements were also viability of the proposal and whether a meeting property of the company. While under adminis- introduced in Kenyan law by the Insolvency Act, of the creditors should be called to vote on it and tration, creditors may undertake procedures to No. 18 of 2015. This arrangement is entered into the date and time of such a meeting. enforce security over the company’s property, when a company is insolvent and the directors, On the date of the creditors’ meeting, the with approval from the court or an agreement administrator or liquidator as the case may be, creditors shall appoint a chairperson who shall with the administrator. proposes to the company’s shareholders and its divide the creditors into groups of secured, The Administrator must therefore set a date creditors on the best way to save the company unsecured and preferential creditors. The for the creditors meeting and invite all the credi- from liquidation. However, there are restric- Creditors shall then vote either to approve the tors that it knows of, having had access to the tions. Company Voluntary Arrangements is not proposal as is, approve it with modifications books of the company. Only creditors who have an option banking and insurance companies; or reject it altogether. The proposal is approved filed proof of debt before 4.00 pm of the day companies under administration and liquida- if voted for by a majority of the members and a before the Creditors meeting are entitled to vote tion; a company in respect of which a voluntary majority of each group present at the meeting. at the said creditor’s meeting. arrangement has been carried out; companies The proposal, if approved, shall be binding on At the Creditors’ meeting, the Administrator in public-private partnerships and; companies the company and the creditors. must present their proposal to the Creditors who with liabilities of over Sh1b. The Insolvency Act also provides liquidation

September 2020 | Nairobi Business Monthly | 43 Money &Markets

as an option, for insolvent companies. There are two modes in which a company may be wound up; compulsory winding up by the court and; voluntary winding up.

Nakumatt Holdings Until February 2017, Nakumatt, a local super- market chain, was regarded as the largest Kenyan retailer, with 62 branches across the region, (45 in Kenya, 9 in Uganda, 5 in Tanza- nia and 3 in Rwanda) and a gross turnover of Sh52.2b. However, what was fueling Nakumatt’s rapid expansion was funded through debt. This included short-term borrowings, bank loans and letters of credit to its numerous suppliers. Due to a number of reasons, Nakumatt started experiencing serious cash-flow difficulties in 2016. The retailer was therefore unable to meet its financial obligations to landlords, its suppli- ers and employees. It was for these reasons that the administrator was appointed by an order of the court pursuant to an application filed by unsecured creditors, and Nakumatt Holdings was placed under administration in January 2018. PKF Consulting Limited (PKF) was appointed as Nakumatt Holdings’ administrator. This was to assess the possibility that the company could be revived after a full assessment, and for all creditors of Nakumatt to come forward and register their claims with the retailer. Following the assessment of Nakumatt’s financial position, the administrator deter- mined that if a liquidation route was used, then The proposals brought forth, in the view of company. Ordinary shareholders who did not out of the total creditors of Sh35.8b, Sh30.6b Cytonn Investments, were not equitable and inject additional equity were diluted by 95%. were unlikely to be paid. This represented a fair to all creditors. In addition, they failed to The proposed procedures in line with the significant 85% potential loss to the credi- inspire confidence especially with the major Insolvency Act, Cytonn Report notes, accorded tors. In essence, all unsecured creditors; Trade stakeholders, required to turn around the Nakumatt with a second chance, to pursue the Creditors, Commercial Paper Holders and Short business, especially suppliers, landlords, and recovery strategy dubbed “Nakumatt Bounce Term Noteholders, and private placement loan employees. Back” but it was later in 2020 voted that the providers would suffer the maximum 100% loss The best-case scenario for all creditors is company could not continue with its opera- of their debt amounts, as the available assets a debt to equity conversion of their creditor tions and the creditors voted for its winding up. would first pay off secured creditors. Since the claims, as liquidation is not in the best interest business model of Nakumatt could not support a of anyone. This should include even the banks Athi River Mining (ARM) Cement better outcome for all the creditors as compared that had taken preferential debt. Case in point ARM is a Kenyan manufacturing company to a liquidation scenario, the Administrator set being the recent restructuring of Kenya Airways. listed at the Nairobi Securities Exchange, with out to come up with a restructuring proposal In the case of Kenya Airways’ restructuring, operations in Kenya, Tanzania and Rwanda. The to achieve this outcome based on the company the Government and several banks converted firm specializes in the production of cement, remaining a going concern. their debt into equity to the tune of Sh59b. The fertilizers, quicklime, and other industrial Nakumatt’s administrator came back to Government’s stake in Kenya Airways rose to minerals. creditors with proposals that the creditors were 46.5% from 29.8% before the debt to equity ARM cement, once a stable company, started supposed to take a vote on, and if deemed fit, conversion, while the bank’s consortium (KQ experiencing difficulty in 2016, as the firm’s the company shall adopt as the way forward. Lenders Co.) ended up owning 35.7% of the revenue lines started decreasing, with revenue

44 | Nairobi Business Monthly September 2020 It is key for businesses to note that the Insolvency Act offers struggling businesses a second chance to reorganize and come out stronger and viable. It also encourages entrepreneurship by providing a path to redemption in the case of a viable venture that has run into turbulence

position of Sh2.4b, effectively meaning a complete write-off for shareholders in the event of a liquidation, and that only secured lenders were now fully covered by the current Sh14.2b asset base. The administrators appointed Knight Frank to undertake a valuation of the company’s fixed assets, amid concerns of misrepresenta- tion, and suspicious dealings amounting to Sh153m. Creditors voted for Nakumatt’s wind-up after it With the administrators currently engaged in was established the retail chain could not continue the asset sales of the various subsidiaries, this with operations would provide the company with a capital base to boost and streamline the core operations. The proposed move to look for a strategic investor, declining by 32% from Sh12.8b in FY’2016 to Bank Kenya, Sh3.2b. Cytonn Investments note, may also provide a Sh8.7b in FY’2017, coupled with the rising oper- Unable to service these obligations, the reprieve, with several major companies such ating expenses, which rose by 34.8% to Sh3.1b company was then placed under administration as Dangote Cement and Oman Based Raylat from Sh2.3b in FY’2016. This saw the operating in August 2018, with PwC’s Muniu Thoithi and limited expressing interest in acquiring the loss widen to Sh4.2b in FY’2017 from Sh0.3b George Weru appointed as the administrators. troubled lender. in FY’2016, and consequently the loss after tax The administrators, having full control held The Insolvency Act has thus enabled the widened by 87.5% to Sh7.5b in FY’2017 from Sh4b a creditor’s meeting in October 2018, where company to remain operational as it undertakes in FY’2016. creditors voted to give the administrators up the turnaround strategy, focused on ensuring The shrinking revenue lines were largely to September 2019, to revive the company. the company attains good financial health and attributed to stiff competition in the cement The creditors also approved the sale of some consequently improving its debt-servicing industry both in Kenya and Tanzania, the or even all of the company’s assets, and capital capability to its creditors. company’s main revenue contributors. The injections from strategic investors as part of The Insolvency Act, it is key for businesses declining performance pushed the company the strategies to revive the company. With the to note, offers struggling businesses a second into a negative working capital position, further administrators writing off the Sh21.3b in loans chance to reorganize and come out stronger and exacerbating the poor performance, thereby advanced to its Tanzanian Subsidiary, due to viable. It also encourages entrepreneurship by rendering the company unable to service its alleged misrepresentation of the loan given that providing a path to redemption in the case of a debt obligations to various creditors, such as it had been non-performing for several years viable venture that has run into turbulence and UBA Bank Kenya, which provided the company and that the subsidiary was deemed unable to just needs room to restructure. Research has with a Sh500m short term loan; Africa Finance repay the loan any time soon. shown that the availability of reorganization Corporation (AFC), Sh4.6b loan, and; Stanbic ARM Cement slipped to a negative equity frameworks encourages entrepreneurship.

September 2020 | Nairobi Business Monthly | 45 Property 2021 Year when Kenya Mortgage &Investments Refinance Company intends to issue a green bond to raise funds for lending to retail lenders for onward ALSO READ ► Why customer experience is king. 46 lending to their customers analysis A round up of recent exciting developments in the real estate sector

enya Mortgage Refinance Company (KMRC), a treasury backed lender, has K announced plans to issue a green bond (details are yet to disclosed) by the end of 2021 with the aim of raising funds for lending to retail lenders for onward lending to their customers. The funds raised from the bond will add to the existing pool of approximately Sh37.2b, includ- ing Sh2.2b in equity capital, Sh25b committed by the World Bank and Sh10b from African Devel- opment Bank. The KMRC bond will be placed privately with institutional investors, fund managers and pension funds, but is currently not contemplated to be offered to the public. A green bond is a type of fixed-income instru- ment that is specifically issued to raise money for positive climate and environmental projects. The green bond market was launched in Kenya in February 2019, through the Green Bonds Programme - Kenya, which is a joint initiative between the Central Bank of Kenya, Nairobi Securities Exchange, Climate Bonds Initiative and Kenya Bankers Association, with several other organizations endorsing the program. The KMRC green bond will be the second of its kind in Kenya, with real estate developer Acorn Holdings and private equity fund Helios having issued the first green bond in Kenya rais- ing Sh4.3b of the targeted Sh5b in January; the rate at issuance was 12.3%. The main advantage of green bonds is that they attract a wide range of investors seeking to positively impact the environment and allows traditional investors like pension funds to diversify their portfolio. The issuing of the green bond by KMRC will Source: Centre for Affordable Housing Finance in Africa

46 | Nairobi Business Monthly September 2020 be a step in the right direction towards raising to reduced demand for office spaces as firms put down their outlets. Other retailers in Kenya can of funds from the capital markets to finance on hold expansion plans as they adopt a wait mitigate similar challenges through focusing the facility, which is set to lend money to local and see approach. The Nairobi CBD recorded a onproper corporate governance; partnerships financial institutions at an annual interest rate relatively low rental yield of 6.8%, compared with private equity funds; strategic expan- of 5%, enabling them to issue home loans at to the market average of 7.3%, due to the traffic sion, and; proper supply chain management. 7%, 6% points lower than the market rate of snarl-ups and low-quality office space. Retail centers are expected to record a slump approximately 13%. The commercial office sector shows a nega- in occupancy rates due to the exit of troubled However, to be able to lend at 5%, the green tive outlook, and expect to see a slight reduction retailers such as Tuskys, while some retailers bond will have to be issued at a relatively low in demand with some firms having downsized are shutting down their operations to cushion rate which is likely to make it unattractive to due to financial constraints resulting from the themselves against the effects emanating from investors noting that Acorn’s green bond was current pandemic as several others experience the pandemic. However, retailers will invest issued at 12.3% and attracted 85% subscrip- working from home, which they may make a more in their e-commerce infrastructure and tion, in addition to facing competition from permanent measure. However, the sector’s decentralize to locations that are easily acces- other bonds such as the 91- day bill whose yield performance is expected to gradually recover sible from people’s homes. stands at 6.3%, 1.3% above the intended 5%. once the economy picks up. Massmart, a South Africa retail chain opened According to Central Bank of Kenya, the value a Sh500m building material outlet dubbed of outstanding non-performing mortgages Retail Builders Warehouse in Kenya. The new outlet stood at Sh38.1b as at 2018, with the mortgage Tuskys, a local retail chain, has closed down its will be located in Karen at the Waterfront Mall. to GDP ratio at 3.2%. KMRC will have to raise a Kisumu branch at the United Mall due to rent The latest move by the retailer is part of a strat- significant amount of funds to sustain the 7% arrears totaling to Sh26m. The Victoria Blues egy to increase its footprint in Kenya, targeting interest rate, otherwise, once the initial capital Services Auctioneers (VBSA) stopped the retailer the growing construction sector. The retailer is exhausted, the facility will need to move back from operating and is set to auction the stock currently has three subsidiary outlets of Game to the market rate of approximately 13%. for debt recovery. This follows the auctioning Stores in Garden City, Karen Waterfront and of the Nakuru Midtown branch on August 8, Kisumu’s Mega City Mall. Commercial Office Sector 2020 due to rent arrears. The move to open a branch in Karen is Industrial and Development Corporation The retailer also recently closed three other supported by the high consumer purchasing (ICDC), a Kenyan government owned devel- branches along Tom Mboya in Nairobi’s CBD, power, as it is an affluent neighborhood host- opment finance institution, completed the the Mega Branch in Kitale, and at Digo in ing middle to high-end income earners and, purchase of Development Bank-owned Finance Mombasa, citing consolidation of its services less competition in the market given the rela- House building, located along Loita Street in to other branches which are more spacious so tively low number of similar retailers in the Nairobi’s CBD, for Sh1.2b. as to implement social distancing and personal area. According to the Cytonn H1’2020 Markets The Corporation, which has been linked to hygiene measures more effectively. Review, Karen was the second best performing real estate projects such as Two Rivers Mall The current financial strain is mainly attribut- retail node within Nairobi recording an average owned by Centum Investments Limited, intends ed to strained revenues due to reduced demand, yield of 9.2% while the occupancy rates stood to sell the property and channel the proceeds and the family wrangles among the retail at 75%, compared to the market average of 7.4% to financing industrial, commercial and other chain’s shareholders thus affecting its opera- and 74%, respectively. entrepreneurial undertakings in the economy, tions. In 2019, the market witnessed a similar International retailers are expected to contin- citing that it is not in the business of owning case with Nakumatt, which completely closed ue entering Kenya to enhance the uptake of retail property but contributing to the growth of the space thus heightening the returns for investors industries; it is not clear why ICDC would buy and cushioning the sector’s performance in the the property with a view to selling it, unless it wake of economic slump due to the pandemic bought it at a discount or it was a transaction to We expect the coupled by the existing oversupply of approxi- assist Development Bank improve its liquidity. sector to flourish mately 2.8m SQFT as at 2019. The State-owned Development Bank of Kenya “We expect the real estate sector to continue has been battling liquidity pressures thus forc- with activity driven by on an upward trajectory with activity driven ing it to sell the property in 2019 in efforts to expansion of international by expansion of international retailers, avail- shore up its capital. retailers, availability ability of relatively affordable mortgage loans According to Cytonn H1’2020 Market Review, through KMRC and ongoing transactions on the commercial office sector recorded a decline of relatively affordable the commercial front,” predicts Cytonn Report, in the average rental yield which came in at KMRC mortgage loans and an authoritative weekly research report by 7.3%, down from the 7.5% which was recorded the Cytonn Investments team that provides in H1’2019. The performance is attributable to ongoing transactions on reliable market insights for investors interested the ongoing COVID-19 pandemic, which has led the commercial front in the high-growth East Africa region

September 2020 | Nairobi Business Monthly | 47 delivering Developer promises homebuyers unique houses

BY VICTOR ADAR with the current market price rising to Sh23m as houses in Langata near the Carnivore, with they near completion around mid-2021. upcoming Marigold Residency which boasts of ou cannot help being drawn to Elina “As construction to upper levels progresses 42 units, Serene Park Villas in Machakos, as well Residences. The developer, Purple Dot the price will go up proportionally to approxi- as more than 300 light industrial warehouses in Y International Ltd has launched the resi- mately Sh25 million by Q1 2021,” he says. “The Athi River, a strong indication that the off-plan dential project that is expected to deliver qual- penthouse price at the moment is Sh48m model is sustainable with “trusted” developers. ity houses for upper mid-income homebuyers but once we reach that level and it’s ready it “We wanted a product that is unique, meets around Nairobi and its peripheries. may go up to Sh55m. The duplex penthouse the buyer’s need for value in its own way while Its soon-to-be completed project, located at 4,200 square feet is double the size of the looking at the social dynamics of the family along Mandera Road in Kileleshwa, comprises three-bedroom units, and the space of the living dwelling in the units. The spaces are sculpted; of 66 all en-suite three-bedroom apartments room and the lounge, are quite spacious.” meaning there is thought and creativity put into and four duplex pent houses. While people abreast with the property sector planning the living areas. It is not just ‘mawe’,” The company’s general manager Jiten Kerai say that open market buyers shun the off-plan says Jaspal Singh, the managing director of says most of the apartments were bought off model and would always buy into a project that Sketch Studio and the architect of Elina Resi- plan, with customers buying the units before has gone up to 60%, or 70% of completion, dences project. construction began in earnest in 2019 based on Purple Dot International seems to be thriving To Mr Singh, the building was elevated finishes delivered in their previous residential despite the opinions. through columns to reduce the amount of projects. The off-plan purchase price for the So far, some of the projects that the developer excavation. Further, ground units (first floor) 2,300 square feet apartments was around Sh19m has completed include Daisy, Asopalav town- accurately sit on the ground and will have grass

48 | Nairobi Business Monthly September 2020 and plants. Whether you are walking in the practicality of spaces. Buyers want something coronavirus pandemic, and an intricately tough compound or standing at the main gate you unique and worth the value, which is what we economy, a majority of buyers are merely surviv- will not really think there is underground park- are trying to balance here.” ing with private employers receiving a major ing. At the same time, there are areas where “The show house is really testament to what blow. The current pandemic might also have kids can play; they don’t have to play in parking we intend to deliver. We want buyers to come an impact on designs. There is already a move lots. The units are also wheelchair user-friendly and see the product physically. Brochures don’t by individuals who still have the buying power thanks to ramps that allow the differently abled generally reflect the reality of the project so we considering spaces they can live in and out – it persons to manoeuvre without any difficulty. want customers to come and experience what could be an apartment building, or town house The architect has accommodated four lifts in the value, finishes they are going to get. Do you development with a garden. What it means is six residential blocks, with underground base- really think this is a common development?” that the units that do not have balconies or exter- ment parking to give a seamless structural look. Singh quips, adding that the target market is nal spaces may have a downturn, according to On the overall, Singh says, “I think the whole mid to lower high income. experts. unit is pretty well thought out in its layout, It seems that Covid-19, in the short term, In May market update by HassConsult, functionality, ventilation, natural light and has pushed up demand of houses. Besides the property market remained stable despite the coronavirus effects on economies. The report indicated that house prices slightly edged up by 0.9% over the quarter thanks to a slight performance from detached and semi-detached market, which recorded a 1.3% and 0.9% growth respectively. Apartments recorded a big growth over the quarter with asking rents at 2.1% as compared to the overall property rents drop of 0.7%. But interesting to note is that prices are unlikely not to change during this tough period. The effects of the pandemic might only be felt from the second quarter, a philosophy that is backed by a real estate marketplace, Zillow. The company conducted a study on housing during previous pandemics and shoed that although home sales have always dropped during pandemics prices remained the same, or experienced a slight decline. As depressed house prices continue to be the order of the day, a majority of developers are getting creative to attract customers. It has become a rarity, to see developers looking after their stakeholders. Incidentally, Elina’s developers are not discriminative. The buyer-centric company is trying to come up with ways to make things happen. If credit accessibility is a challenge, for example, the developer has partnered with some lenders, coupled with flexible payment plans, a move that is hoped to not only bridge the financing gap but also offer buyers some piece of mind. The firm is also inviting people who’ve already booked houses to “come and see” what they had been sold is reality. “We do have partnerships with the banks,” says Jiten. “We have DTB, I&M on board though we are open to working with our customers’ choice of bank. They will follow their own process then we will assist them with financ- ing.”

September 2020 | Nairobi Business Monthly | 49 Enterprise $2, 000 Instead of having one client and charge $40, 000, he might opt to go online, sign up a big &Ideas number of clients and charge as little as $2, 000 for consultancy COMING UP ► The reality of future-ready digital enterprises. pg 50

resilience

Mr James Stuart, the founder of Stuart + Partners

It’s customer BY VICTOR ADAR tarting out as a photographer in 1980 and with no one to guide him on the experience that shapes S path to take, the future wasn’t bright enough. But today James Stuart, 60, who also wanted to become a pilot growing up, slowly perceptions of the rediscovered his true north and passion and is now helping companies position their brand in a service brands. From a perception point of view, photography is not a career but simply an art. In the battle, business, not logos and Mr Stuart studied Sociologyat the University of Bath, UK. He would spend his early career working for advertising agencies in London, a packaging totally different field, before moving to Hong Kong in 1991.

50 | Nairobi Business Monthly September 2020 “My career has been a bit like a gypsy,” he says. “It was interesting time but in the end corporate world didn’t suite me. So my journey has been more about keeping my business life adventurous, and making things unique. I like spreading the word and I like bringing things to life. You can make a reasonable living doing what you like.” After finding it boring working in the corpo- rate world, he founded his own company, Stuart + Partners in 2001 to gain from the service busi- nesses market. The proverbial journey of a thou- sand miles started with a team of five people. For the first four years, he says, the company grew quite quickly fetching around $1.8m annu- ally. He mainly worked with airlines, retailers, insurance companies and restaurants. At The Social House in Lavington, Nairobi Today, he is mainly focusing on the oppor- tunities in the hospitality sector. While his clients include the big boys such as Shangri-La, BCM, he says, places the brand positioning at years ago in Hong Kong is happening in Kenya The Peninsula, Langham, Rosewood and other the heart of all organisational purpose, shap- today. Look at the Social House. It works! It really Asian-based luxury hotel groups, it was with ing both what is done and the way it’s done to was all about connection, and we want it to be new start-up hotel brands that he found the deliver a consistently compelling and authentic multi-cultural. People who come here are just company’s consulting sweet spot. He has also experience to the customer. He believes that in easy-going, chilled, adventurous people,” he managed The Upper House in Hong Kong and a service business, it’s the customer experience points out. The Opposite House in Beijing, which are top that shapes perceptions of the brand, not logos Stuart is a regular speaker at hospitality commercial performers and Number 1 TripAdvi- and packaging. conferences, a regular contributor to hospital- sor brands in their respective markets. “If you look at the clients we’ve worked with, ity journals and regional newspapers and in His work took him across much of Greater 50% of them are market leaders in their own 2014 published a book that is solely dedicated China and South East Asia, and eventually market. Whether they are hotels, mixed use to hospitality brands: Hotel Brand Bites. in 2013 to Nairobi, to work with the Sankara development, luxury resorts, and that covers One of the things he has discovered in terms group and subsequently with Latitude Hotels Zambia, Malawi, and Kenya,” he says. of promotion is that when you merely attend in Zambia and Malawi. In 2017 he embarked on Memories of how he was motivated by a direc- conferences, it is difficult to meet people and a new project called The Social House in Laving- tor of planning from one advertising group, get across a message. It is at the back of this that ton, Nairobi, a hotel that opened its doors for WWPP, are still fresh in his mind. He quotes he discovered sponsoring conferences would business in February of 2020. him: “You know what! James, you are very lucky. make a big difference as you also get a platform “I’m proud to have been given a chance to You are in a place where the world is heading. to address participants. have a significant impact on this brand. Every You will see a shift from production to service, For about six months that the coronavirus single aspect of it has been developed, and are and you will see the business model (referring has terrorised economies and people in general, related to values that support its brand from to BCM) needed.” try to picture illnesses, deaths, uncertainty and organization concept to landscaping, the art, Half English, half Irish (he grew up in England effect on economy, Mr Stuart is seeing a lot of recruitment… and we will carry on learning and but his father was Irish), he argues that clarity positive things coming out post the pandemic. getting better. Let’s make luxury more natural, of a brand can do wonders. It will attract more He will carry on with the same business but more fluid,” he says. customers and perhaps attract more revenues. will shift online, and then, instead of having Stuart’s achievements show that there is no But what is his experience like thus far? How one client and charge $40, 000, he might opt such thing as luck, to make it happen, one must does Kenya compare as far as ease of doing busi- to sign up a big number of clients, go online, develop not only specific goals but also clear ness is concerned? and charge as low as $2, 000 for consultancy. plans. Then, cap it all by doing the work in order “Setting up a company was easy in Hong Kong. It becomes scalable if done online. It is a game to get the big dollar. The city is fast and frantic. It is the city of entre- of numbers. He has modelled a “Brand Centred Manage- preneurs. Hong Kong has a lot of properties, “I am very proud of having conceived a model ment” (he calls it BCM) that is helping to position shopping malls… Here (referring to Nairobi) it that genuinely add value to a business. I want service businesses and talks of an entirely differ- is a bit the opposite. We need a little fire. But to be on the Forbes top list of entrepreneurs,” ent way of managing businesses and brands. the good thing is; what was taking place 20, 25 he says.

September 2020 | Nairobi Business Monthly | 51 Technology &Innovation

CONTENTS ►The magic of coming forward as a victim of sexual assault p.52 ► World soccer comes to the aid of victims of domestic violence in Africa P.56

opportunities A windfall for fintech in Covid-19 pandemic Digital solutions have proven essential allowing clients to access their funds especially now that clients are practicing social distance and quarantine measures

ver the past decade, Kenya has trans- M-PESA, a mobile phone money transfer plat- formed into a technology epicenter form, has contributed to meaningful financial O largely propelled by financial technol- inclusion besides acting as an impetus for the ogy (Fintech). This wave has been supported by creation of other fintechs. Through M-PESA, various success stories such as M-PESA, which users are capable of depositing, withdrawing, disrupted the mobile money transfer space transferring money and paying for goods and globally. How has fintech been affected by the services using their phones. Several fintech spread of the coronavirus and how important businesses, which have thrived in Kenya as is the industry to the general public? a result of M-PESA, include mobile lending, The agility of Kenya’s mobile banking system mobile banking, fundraising applications, has created opportunities for digital entrepre- mobile payment, insure-tech, peer-to-peer neurs. The penetration of mobile telephony and lending applications, business-to-business receptiveness of the nation to technological lending, digital payment, online trade, interna- innovations has placed Kenya among the top tional money transfer, online foreign exchange, financial innovators. Kenya is ranked 2nd in online procurement, online betting and other Safaricom PLC through Kazi Mtaani is able to Africa after South Africa and closely followed block chain applications. disburse government relief to unemployed by Nigeria (Santosdiaz, 2020). The financial services industry in the coun- youths through their mobile money platform. The reception of mobile money technology try is seeing its traditional model disrupted by COVID-19 has created an acute demand for has increased financial inclusion, providing technology and regulations; from March when contactless financial solutions. Clients are more financial services to the ‘unbanked’. In a survey the pandemic hit, many individuals and busi- aware of the risk of paper money as it changes that was done by the Central Bank of Kenya nesses have been forced to resort to technologi- hands many times over and pin pad systems are (CBK), Kenya National Bureau of Statistics cal avenues to curb the spread of the virus as touched by hundreds of people. Furthermore, (KNBS) and FSD Kenya indicated that 82.9% of they enforce social distancing. Also, the virus the World Health Organization has insisted on Kenyans over the age of 18 years have access to has created opportunities for digital financial the use of contactless payments. Consequently, at least one financial product. Kenya leads in services to accelerate, and enhance financial due to their innovative nature, fintech compa- financial inclusion in Africa closely followed inclusion. nies, according to the IMF, are likely to generate by South Africa, Rwanda, Nigeria and Uganda Many payment companies are well positioned new and transformative solutions. Firms such as (2019 FinAccess Household Survey, 2019). to aid governments across the globe through PayPal waived their charges on funds transfers Several factors have contributed to this rapid disbursement of government relief funds. from business accounts to bank accounts while impressive outcome among them; rapid uptake Locally, companies such as M-PESA and some some digital lenders considered hardship plans of mobile money, adoption of transformative banks are already taking advantage of their from their borrowers to allow them to make financial technologies and innovations, and technological expertise in fintech to support interest payments only. government initiatives and policies. these government initiatives. For example, Traditional financial institutions that lack

52 | Nairobi Business Monthly September 2020 vigorous digital and mobile solutions in place instance, government has established a task processing both payments and investments. are struggling to service their clients in the force to look into how the country can leverage current environment. Digital solutions have on blockchain and IoT technology. It has also Risks proven essential allowing clients to access their partnered with Mastercard to develop a digital Some of the key concerns that exist when it funds especially now that clients are practic- payment platform for government services on comes to fintech revolve around the risks of ing social distance and quarantine measures. top of the existing providers such as M-PESA, unsupervised complexity on the industry, data We expect growing demand from traditional and Airtel Money. leaks and the infringement of consumer rights. financial institutions seeking to partner with Through CBK, the Government also insti- This ultimately poses a challenge to the overall fintech firms to boost or build their systems. tuted several measures to encourage the use stability of the financial industry. The two main From the Banks that have recently released of digital payments. The withdrawal limit for risks or concerns in the industry include its their H1’2020 financials, the contribution of mobile money transactions was pushed from interdisciplinary nature, and lack of regulation. fintech to the effective running of the institu- Sh70, 000 to Sh150, 000. CBK also directed that Fintech is a combination of products with tions especially during the COVID-19 times is transaction costs for a bank to mobile transfer both traits of finance and technology. Many evident. For instance, some banking institu- and mobile money transfers of Sh1, 000 and products appear simple but in essence they tions such as KCB rely on digital transactions as below be removed. These measures seek to can be quite comprehensive since the model a substitute of traditional banking. Evidently, promote social distancing and Peer-To-Peer becomes a hybrid of both technology and the bank’s transactions performed over digital (P2P) transactions during the health crisis. finance. This becomes a challenge for even the media rose to 98.0% from 95% during the second From a regulatory standpoint, CBK has tabled consumers to understand thus making it easy quarter of the year. For Equity Bank, during the a Bill, seeking to curb the steep digital lend- for some to be taken advantage of. second quarter of the year, digital transactions ing rates that have plunged many borrowers On the regulation front, fintech is a rela- accounted for 94% of the group’s total transac- into a debt trap as well as predatory lending. tively new industry and its fast-paced nature tions. The bank has been able to grow its digital The principal objective of this Bill is to amend out-lapped regulation. Some disputes related to platforms significantly with the volumes trans- the Central Bank of Kenya Act to regulate the the industry cannot be resolved due to the lack acted over their payments application increas- conduct of providers of digital financial prod- of existing policies and guidelines for operating ing by 79.3% to Sh5.2b in H1’2020, from Sh2.9b ucts and services. in the space. So far, big fintech companies have in H1’2019. For Cytonn Money Market Fund, the The banking sector and the telecoms sector been in difficult situations with the authorities number of transactions performed digitally on have been leading in Fintech adoption, as because of data security and the risk it poses to a daily basis rose by 293.9% between January 1, evidenced by various banking digital apps and the consumers of the various fintech products. 2020 and June 30, 2020. Safaricom’s M-PESA; however the investment Lastly, financial services are, by nature, and insurance sectors are lagging behind fintech conservative. It took a lot of engagement with Government’s role adoption. Cytonn Investment has, through its CBK and a supportive government regime for Through its regulatory bodies and parastatals, subsidiary, Cytonn Fintech, since launched the M-PESA to grow to what it is today. The insur- government has been at the forefront to promote Cytonn Wallet, which is powered by the Cytonn ance and investment management industry Fintech in the country before and during the Money Market Fund. This has enabled clients to remains largely manual and lag behind Fintech COVID-19 pandemic. This has been evident invest, withdraw, and send money instantly to innovations. through different efforts and initiatives that a bank or mobile money account, and still earn The COVID 19 pandemic shows that the have been deployed to increase financial an attractive rate of return through the money trend towards greater digitalization of finan- inclusion. Through the Ministry of Informa- market fund. The provision of this all-inclusive cial services is here to stay. To build inclusive tion, Communications, and Technology for financial ecosystem increases the efficiency in societies and address rising inequalities during and after the ongoing crisis, global and national leaders must close the digital divide across and within countries to reap the benefits of digital financial services. This means finding the right balance between enabling financial innovation and addressing several risks: insufficient client protection, lack of financial and digital literacy, unequal access to digital infrastructure, and data biases that need action at the national level; as well as addressing money laundering and cyber risks through international agreements and infor- mation sharing, including on antitrust laws to ensure adequate competition.

September 2020 | Nairobi Business Monthly | 53 TRANSFORMATION of technologies, services and products that are scalable and can connect with changing customer demands. At Dell Technologies, we Driving development offer real-world solutions that enable modern workforces to communicate effectively, access their data from any device and empower them of future-ready digital to be highly productive,” says El-Masri. The pandemic has quite simply changed the enterprises way things are done. Those who can’t stay and work from home wear masks and wash their hands as precautionary measures put in place Across several countries especially in Africa, the by government while carrying out their busi- remote workforce trend is growing and it’s now up to nesses as usual. organizations to keep up with the changing needs of their As the future concept becomes a reality for organizations, employees demand the flexibil- employees ity to work, collaborate and innovate anytime, anywhere and in any way they want. It is at the back of this that customers from sectors such ith digital transformation being a In this time of intense as government, financial services, oil and gas, major area of focus for businesses and change, we see healthcare and education ought to implement W governments across emerging markets technology as a key technologies that, sort of, guarantee a competi- in East, West and Central Africa, enterprises path to economic recovery tive advantage to succeed in a post pandemic that will disrupt the economy are those that business environment. use technologies that mainly drive business and companies need to “In West Africa, digitization is transform- continuity and growth. build and strengthen the ing industries and has the ability to contribute As organizations across Emerging Africa foundations for their digital to national GDP in multiple ways while also recognize that application, information tech- future promoting growth of allied industries such nology (IT), security and workforce transfor- as logistics, infrastructure, and payments. As mation are key to long-term business success, an example, the banking and finance sector, Dell Technologies is betting enterprise and continues to evolve and transform with several consumer solutions that accelerate the digital digital banking initiatives being introduced that delivery of modern IT services that can differ- “We’re seeing a lot of changes in the market is increasing financial inclusion. This in turn entiate a business, its products and operations. in terms of the need to increase investments leads to an increase in a country’s productivity This includes new technologies and products in digital technologies. In this time of intense and competitiveness - lowering unemployment across commercial PCs, storage and cloud such change, we see technology as a key path to rates, increasing access to technology enabled as PowerStore, which is a newly launched mid- economic recovery and companies need to build services for citizens and creating higher-wage range storage solution built from the ground up and strengthen the foundations for their digital and higher-impact jobs. At Dell Technologies, in order to address the challenges of the data era, future. At Dell Technologies, we aim to simplify we are committed to helping organizations and PowerScale, which is basically designed for this journey for our customers and partners, accelerate their digital transformation journey organizations that want to manage their data, with solutions that enable business leaders to and building an eco-system of innovation,” says not their storage. use advanced technologies to drive growth and Travers Nicholas, GM - Central West Africa, Dell There is also Cloud OneFS for Google Cloud, a improve competitiveness,” says Mahakian. Technologies. solution that helps organizations migrate enter- Nizar El-Masri, Dell’s East Africa general As part of its “Progress Made Real Vision 2030” prise business-critical, file-based workloads to manager shares the same point of view adding social impact framework, the tech company Google Cloud as well as Dell EMC VxRail systems that, today, organizations are recognizing that aims at harnessing the power of technology to and software that brings IT infrastructure and workforce transformation is key to long-term drive change across four key pillars: advancing cloud capabilities to challenging and space- business success and many have started to sustainability, cultivating inclusion, transform- constrained edge environments. All these are change their operating model to accommodate ing lives with technology and upholding ethics aimed at making remote work more efficient this need for change. In fact, he says, across and data privacy. Through several education and and safer, no matter the location. several countries especially in Africa, the remote youth skills training programs, such as Solar According to Habib Mahakian, Dell’s vice workforce trend is growing and it’s now up to Learning Labs, the company continues to focus president for emerging Africa, in the last six organizations to keep up with the changing on addressing the digital divide to drive long- months, the coronavirus pandemic did impact needs of their employees. term economic prosperity and equip youth with and disrupt the ICT industry globally and across “Businesses must re-evaluate their work- the skills they need to successfully compete in Africa. force skills and develop cohesive ecosystems a digital era.

54 | Nairobi Business Monthly September 2020 OPINION || Tech@Work

INVESTMENT

Africa should take a leaf from BY ANTONY MUTUNGA China on tech

or over 40 years, China’s economy was poor, stagnant However, the ban of the global services may be a dilemma and isolated from the world. However, once they opened to impose in African countries for now, there is a need to F up, things turned for the better. Now, the country is one support our local tech services to ensure their growth. In of the fastest growing economies around the world. Among doing so, we will be able to come up with more tech solutions the sectors to flourish as a result is the technological industry. such as M-Pesa that can compete around the globe. With The country is investing highly in research and development, such services and applications, in the near future, Africa making it one of the most advanced economies. will be able to depend on its own products and services. Africa can learn and follow in the footsteps of China to This will surely not only help the Continent to reduce its help its technological sector reach a similar feat. To reach dependence on the developed economies but would also its current level in the tech sector, the industry required help the economy to prosper. funding in terms of investment. This resulted in the Chinese The reason as to why applications such as WeChat have government investing in infrastructure such as providing grown in popularity around Asia is due to the policies of tech hubs that would focus in the innovation of technologies China to smoothly venture into other countries through such as big data and artificial intelligence. agreements, investments and acquisitions. Unlike most One of the biggest challenges for most African tech start- companies from the West who would rather have their pres- ups has been a lack of investment. Many youths have techno- ence in foreign countries, China is welcome to partnerships logical ideas able of transforming their regions for the better with companies from other countries for better transition. but due to a lack of funds their ideas do not transform into An example includes Alipay, an online payment platform, reality. Matters are even worse with the Covid-19 pandemic which has partnered with GCash, a Philippines telecom- as fund taps from the West that go into nurturing Africa’s munications service provider, to launch of a cross-border budding tech innovators have dried up. remittance service through their e-wallet platforms. In addition to acquiring investment, China’s tech giants A number of African companies have already followed had an advantage as they were the initial players in the sector a similar path as they have ventured into other African thus, they faced minimal competition, giving them a chance countries. Safaricom, for example, is evident in a number to expand at a fast rate. Some of the Chinese companies of countries in Africa. However, only a particular number to profit from this include Baidu, Tencent and Alibaba. In of companies are in a position to pull this off due to the contrast, their U.S tech counterparts such as Netflix and different restrictions among different borders. Apple had to outpace their competitors to come out on top. This although, could be changing soon as AfCFTA is almost Despite Africa already having a number of leading tech fully operational leading to the opening up of borders. As companies such as Safaricom, there remains a lot of gaps a result, more African companies will be in a position to that tech start-ups are aiming to fill, making them pioneers venture out to different countries within Africa helping just like the likes of Tencent. This puts them at a great oppor- them expand and profit. tunity of expanding faster and capturing a larger market. Africa is at a better stage than China was 40 years ago. Policies Being a large economy, China’s tech sector has also and investments will be crucial to assist the technological prospered as it has blocked a majority of global services sector to improve. We have witnessed the importance of from operations within its shores. Services such as Google, technology during the Covid-19 pandemic. Technology is Facebook and Instagram are not allowed within its borders. a tool that is able to improve the lives of Africans as it did Writer is a member Instead, the country has its own services to replace these for China. However, there is also a need to improve infra- of NBM’s inhouse global giants. For instance, china has the likes of WeChat structure and increase connectivity around Africa. We have editorial team which is popular not only in China but in Asia as a whole. seen applications like TikTok become worldwide favourites and lead business researcher This has allowed its applications to expand and be able to in a short time and bring profits for their home country, it compete on the global scale. is time Africa emulates the same.

September 2020 | Nairobi Business Monthly | 55 2015 Society The year Chanel Miller was sexually assaulted on Culture Stanford’s & campus. CONTENTS ► The matrix of addiction, relationships and dating. pg 55

LIFE LIFE• TRAVEL • TRAVEL • HOTEL REVIEWS • RESTAURANT • FILM • ART REVIEWS • MUSIC • BOOK • FILM REVIEW & THEATRE • ART •• MUSIC SPORTS • BOOKEULOGY REVIEW • SPORTS

bold Coming forward brought me back to myself

Stigma knows no borders – it just manifests differently in different contexts, countries, and societies. The time for action is now – for all the generations of girls and women to come - Elizabeth Blackney

BY CHANEL MILLER But I still had one little dangling string. The what’s important to you. I was lonely. I longed decision sat heavy before me: keep hiding or to know what it was like not to have to spend all ast year, I published Know My Name, disclose my name. my energy concealing the most heated parts of a memoir about my experience being I was warned that stepping into the public myself. I kept coming back to a line from one of L sexually assaulted on Stanford’s campus would have permanent repercussions. You will Lao Tzu’s poems: He who stands on tiptoe doesn’t in 2015, the trial that followed and what I began be branded for life. It’ll be difficult to get jobs in the stand firm. I could not spend my life tiptoeing. to understand about healing and justice. For future. Harder to shift genres. Any time a campus Eight months before the assault, I had three years before the book’s release, I wrote assault is reported, your name will reappear in witnessed the 2014 mass shooting in Isla Vista, while remaining anonymous, known only to the the news. Every eruption that had occurred when Calif., perpetrated by a misogynist who sought public as “Emily Doe.” Writing my book was like my victim impact statement went viralm would to punish others for his life of rejection. Our sitting at a desk inside a vast, empty dome. Every happen again, amplified. More reporters at our neighborhood was ruptured by violence and day I typed alone in the quiet, my sole job being doorstep. Calls to my parents, grandparents. The ruled by fear, and life as I’d once understood it to extricate the story. When I agreed to write a onslaught of online abuse. My face would live had disappeared. For so long after the shooting memoir, I could not guarantee that I’d reveal side by side with my assailant’s face, my image and the assault, all I wanted was for things to my identity. So from 2016 to 2019 I threaded inseparable from his actions. There are too many stop moving. I was always being dropped into sentences together while protected and insu- crazy people. We want you to be safe. I wondered new realities before I’d had the chance to say lated from the world, blissfully unknown. The if there was a way to reveal my first name, but farewell to my old ones. While I was writing, I only time my phone would ring was on Friday not my last. was burrowing and absorbing, because that’s mornings, my editor calling to make sure I was In the victim realm, we speak of anonym- what healing required. Now I’d finally caught submerged, but not sinking. She was the only ity like a golden shield. To have maintained it up to the present. But some of the people clos- person to have read a single word. In March for four years was a miracle. But while every- est to me had not. They still thought I was an 2019, I finished the manuscript, papers churn- one around me discussed the protection it expired version of me. She’s gone, I wanted to ing out of my printer, a thick stack on my desk. afforded, no one discussed the cost. Never to say. I had another motive for choosing visibil- It was satisfying to have tied off loose ends. speak aloud who you are, what you’re thinking, ity; I had grown up without seeing people who

56 | Nairobi Business Monthly September 2020 Society & Culture

Chanel Miller near her home in New ized the assault was never all-consuming. I was York, on July 27, 2020 - Heather full of experiences. He could not erase every- Sten—The New York Times/Redux thing. I was emerging as a fleshed-out author, daughter, sister, artist, too many identities to be contained. I did not know the path ahead, but I was now fully aware of the person who’d be walking it. That was enough. When I wanted comfort, I remembered a story my mom told me, about befriending a lobster when she was 12 years old. One day, her uncle boiled it and she cried and cried. The regret she had, she said, was naming it, because that’s what made the loss so painful. I figured, when I revealed myself, I’d promptly be boiled. But people would still have felt a moment of connection, my name nestled safely in their memory, the way my mom spoke so tenderly about a lobster. Preparation began. First, you call your landlord, who will help you drill holes, snake wires through your walls, so you can add three more video cameras. You receive a notification every time a moth flies by your front door. You hire a special service to cleanse your family’s names and addresses off the internet. You are advised not to sit in your car too long after parking. Stay moving. Shred every document, in case people sift through your trash. Stay alert, no headphones, scan the street when you’re coming home. Delete all social media. Sleep somewhere safe when the news breaks. Make sure one person is always aware of your whereabouts. By releasing your name you hope to liberate yourself, but you are taught the new looked like me in the public eye. I craved stories understanding. Disclosing one’s assault is not rules of restraint. of Asian American women who embodied power an admission of personal failure. Instead, the Deciding to use my name meant I’d have to and agency. I never wanted to wield a megaphone victim has done us the favor of alerting us to learn to speak my story aloud. But as the requests to announce to everyone I’d ever known that I’d danger in the community. Openness should for interviews began pouring in, I grew angry. been raped. I simply wanted to acknowledge who I be embraced. My panic attacks returned, old unwanted feel- was as a result of what I’d endured. To honor that I just want to protect you, my mom said. But ings. I could feel myself losing my footing, change. To say, meet me where I am. that was the answer moms are supposed to give. slipping out of reality. I did not understand Whenever I hear a survivor say they wish I knew her real answer was buried one level the difference between an interview and an they’d had the courage to come forward, I beneath, I just had to wait a little longer. One interrogation. In court, the intention was to instinctively shake my head. It was never about day the blessing finally came. She said, If you mock, disorient, diminish. It was never to listen. your courage. Fear of retaliation is real. Security want to break yourself, to be bigger, to help other My lawyer introduced me to Lara and Hillary, is not free. It bothered me that coming forward women, do that. Pain always gives you more power two women who work in trauma-informed should feel like heading toward a guillotine. to go forward. Happiness and comfort don’t. It all communications, who offered to help me I don’t think most survivors want to live in depends on who you want to be. prepare. They set up a digital camera, a light, a hiding. We do because silence means safety. I don’t know that there was ever a day I firmly chair. I wore a starched shirt I’d bought, looked Openness means retaliation. Which means it’s decided. I did know that I wasn’t going to let like a pilgrim at a job fair. At one point, Lara not the telling of the stories that we fear, it’s the fear of what men might do dictate what said, What do you want them to hear from you? I’d what people will do when we tell our stories. I the rest of my life was going to be. Through never been asked that before. She told me I wasn’t at remember thinking, If anyone finds out they’ll writing, all the hours spent looking at my past, the mercy of the reporters’ questions, I was showing think I’m dirty. We suffer from society’s shallow dissecting it, putting it back together, I real- up to deliver a message. This reframing changed

September 2020 | Nairobi Business Monthly | 57 Society & Culture

everything. into the world. No more fragmentation, all my to: Mila, Noor, Lieke, Sophie. The Post-it notes There was another question she asked that pieces aligning. I had put my voice back inside aggregate like leaves on my table. Someone clung to me: Who are you speaking to? In 2001, my body. I was inundated with messages of grief, comes to sweep them away, but I ask to keep a 16-year-old girl named Lindsay Armstrong shock, pride, but all I felt was peace. them. I am finally learning the names of the was raped in Scotland. During trial, the defense Over the next few months, I would do over 70 ones who have saved me. attorney asked her to hold up the undies she’d been interviews. Stanford students created an unof- My dad reads the book aloud to my mom, one wearing at the time of the attack and to read aloud ficial plaque on their own where it happened; when chapter every night. They cry together, sit in what was written on them: little devil. The rapist Stanford removed it, the students put it back, until silence, marinate in the sadness, go on walks to was convicted, but guilty convictions don’t undo the university conceded and put an official plaque exhale. I stop by one evening and hear this ritual damage. A few weeks later, she killed herself. I wish in its place. The book would be translated into unfolding. I sit against the wall by the front door, I could tell her that when a question like that was multiple languages including Korean, Norwegian listening. There was a time I came home with the posed, it was his sickness, not her weakness, that and Russian. Harvey Weinstein would be sentenced story of my assault, crumpled and terror filled, had been exposed. to 23 years in prison. Christine Blasey Ford and inside me. Now my story emerges through the For so long, I worried that to be known meant I would sit cross-legged on my Grandma Ann’s soft sound of my dad’s voice, a balm that can be to be undone. The more they see you, the more carpet, drinking tea. I realized I was never coming shared. Outside the crickets are singing. they can use against you. For years I worried into the world alone, I was joining the ones who In San Francisco, my partner Lucas and two this was true. Upon finishing this book, I knew had come before me. I would sit across a lunch friends from college plan a secret book party. I it was not. Not for me, not for Lindsay. I often table from Anita Hill and Gloria Steinem and other pull up to the curb; a sign outside says Marigold. question where men like the defense attor- artists, writers and activists on a sunny afternoon The glass walls are lined with ferns and russet ney get their confidence, while I’m the one in New York City. When I spoke, the room quieted. poppies; they have rented a flower shop. It is who struggles with self-loathing. How they It was the first time I felt my own authority. They populated with friends I’ve known since I was move, unassailable, through the world, while five and my favorite professors, who have driven I remain hidden. I decided that for as long as for miles to be here. There is champagne and they’re out there, I will be out there too. I will In the victim realm, we folded chairs, a cake. One by one they stand up appear on every television screen across the speak of anonymity and speak, and one by one we cry. We cry for nation and I will not question my being there. like a golden shield. To have what we did not know how to do, for the toll I will be seen, open about everything I am and that has been taken. We cry from the relief of ever was, because I know that from the very maintained it for four years was being surrounded by familiar faces, the awe of beginning, the defense attorney had it wrong. a miracle. But while everyone all that remains. As the sun went down, my sister To be known is to be loved. Tiffany, who was there that night and by my side My first interview would be with 60 Minutes, around me discussed the through everything, stood holding hands with the episode taped in August so it could air in protection it afforded, no one me at the front of the room, everyone clapping. September. I’d never been on camera, never been discussed the cost... I longed We had surfaced on the other side. on a set, but it didn’t matter. It didn’t matter Almost five years had passed since the assault, how prestigious the platform, didn’t matter if to know what it was like not and I was finally going to meet the Swedes, the it was 12 million viewers or two, didn’t matter to have to spend all my energy two men on bicycles who had intervened, tack- the heat of the honeycomb lamps or the gaze of concealing the most heated led my attacker. On a warm summer evening in the heavy black cameras. The night before the New York City, there is Peter, there is Carl. We interview, while studying my notes, I drew a parts of myself embrace, sit down, order calamari. The conver- little devil on the back of my hand. In the morn- sation could only be described as sitting by a ing, I slipped on a steamed blouse, stepped into fire. One of them voices that he’d felt regret and a black SUV. I sipped my tea as they clipped a guilt. For what? I say. For not coming five minutes microphone to my waistband, powdered my sooner. I am laughing, realizing that even the cheeks. I stepped aside to find a sink, slowly gave that to me. I emerged from that room changed. saviors felt like they could have done better. I washing the ink off my skin, thinking, Thank In February 2020, I sat on a train en route to think about all the things we wish we could you, as I began to feel bold and calm and clear. a small town called Leeuwarden in the Nether- change, all the “if onlys,” all the different stories My purpose will always be greater than my fear. lands, the Dutch version of my book in my bag, that could have played out. But for all the fear, All of these cameras and correspondents were a pastry called Slice of Heaven in my pocket. I the pain, all that could not be redeemed, what simply the vessel I needed in order to get to her. looked out the window and thought, my mom I’ll remember for the rest of my days are the I was going to tell her we get to wear whatever was right, life was beyond what I could’ve imag- ones who never gave up on me, who led me the f-k underwear we want. ined. How else to explain the green fields, the back to my life. On Sept. 4, 2019, my name and photo were creeks, the Shetland ponies? At all of my book - First published in the Time released. My friend Mel texted me Happy birth- signings, each person puts their name on a Post- Writer is an artist and the author of Know day, because that’s what it felt like, being born it note so I know who I’m addressing the book My Name.

58 | Nairobi Business Monthly September 2020 alcoholism The matrix of addiction, relationships and dating

because it would be very difficult for them to tion that there were children to be raised and perceive each other as partners after having educated. For such a relationship to be repaired had the patient-counselor relationship during there is need for restoration of that commu- recovery. nication and it takes quite a great deal of time BY JACOB OKETCH When you are a recovering alcoholic, it is to do that. advisable to take a back seat for a while as far When relationships break down due to ne of the biggest worries of an alcoholic as relationships are concerned. The recom- alcoholism, even trust goes with it. A partner is how to resuscitate their intimate rela- mended time frame for resuming dating is one who has been enduring an abusive relation- O tionships after recovery. A long period year. This makes quite a lot of sense given that ship attempts to find ways of coping with their of drinking leaves a litany of harms that takes you have a lot of issues to deal with before you challenges. So when an alcoholic is recovering longer to sort out. regain your full sobriety and focus. You don’t and needs to restore the relationship, they must Many relationships have been severed need to rush things because you are working bear in mind that their partner requires time to because one of the partners was alcoholic and the steps towards recovery and you don’t need wean off their coping strategies before they can their behavior made the relationship untenable. any distraction that easily gets you off track. resume the relationship. This can only happen You will not be surprised to find many people In the case of people who were married when trust has been restored between the two who live alone because their marriages were and need to restore their marital life, there is and this takes time. broken due to alcoholism. need for a period of adjustment. You see, your Counseling works all the time for recover- During the period of alcoholism, a tendency marriage may have faced such a hard knock ing alcoholics. When you feel so challenged by occurs where the alcoholic involve themselves that there are several issues to be ironed out intimacy issues, it would be useful to consult a in all manner of sexual relations that are not before even talking about getting back together. counselor who can guide you over how to handle intimate at all. In most cases, these liaisons are A lot of people misconceive that a recovering the situation. A therapist will assist a patient mainly for sexual gratification with people of alcoholic can just go back and fall in the arms of to dig deeper into the underlying issues that dubious backgrounds. In the end, this kind of their partner now that they are recovering and plaque their intimacy. And if alcoholism has liaison leaves the alcoholic much worse than are sober. Surprisingly, in some instances, as caused so much damage to the relationship, they were when their marriages broke down. soon as the alcoholic returns home to continue the best thing to do is to end it because it will So when you make a decision to seek recovery recovering, the marriage breaks down irretriev- just pile miseries on both partners and that is from alcoholism, you are one very vulnerable ably. It is important to give each other some not a conducive environment especially for fellow who needs a bit of time to repair your- time of adjustment before reviewing the state someone who is on recovery from alcoholism. self before you even think of getting intimate of the relationship. If for some reason, one has problems with with someone. There are those who get involved It takes time to be addicted and become a full- their libido, they should consult a doctor to with fellow alcoholics even when they are in blown alcoholic. Hence, the process of isolation identify where the problem is. It is important treatment. This does not work in most cases that is characterized by alcoholism is a long to note that the lack of drive for sex during years because both of you are trying to sort out your one. It is not something that just goes away as of alcoholism can severely affect one’s sex life messes and hardly have the energy and time soon as one is sober. The alcoholic needs time and specific therapy towards this problem may for being intimate. There are also instances to regain their confidence in order to be able to be called for. where a patient gets attracted to a counselor be intimate again. Moreover, if they had chal- For an alcoholic, the early stages of recovery and tries to pursue them. This may not even lenges relating to intimacy before they became are quite emotional and so things only start to be a genuine attraction but transference. The alcoholic, they may need even a longer time to settle down only when somebody has settled patient confuses their feelings for their former work this out. in sobriety as well. This is when one is able to partner to be for the counselor. When one partner is an addict, there occurs find time to manage their intimate affairs. It In such a scenario, a counselor told me that a total communication breakdown in the rela- may also be very helpful to seek relationship- the best thing to do is to transfer such a patient tionship. For some, this breakdown could have counseling services from experts. This way, to a different place or to ask to be replaced by been going on for years to the extent that the you start on a clean slate and look forward to another counselor. A relationship between a relationship could have all but collapsed a long healthy and fulfilling relationship in your s patient and a counselor is not healthy at all time ago but was surviving on the considera- ober future.

September 2020 | Nairobi Business Monthly | 59 Society & Culture

support well as community awareness and empower- ment. We align ourselves to leverage the popular appeal of football to raise awareness against Violence has no place domestic violence, particularly as stay-at-home measures in response to COVID-19 are in place,” said. in homes, just as in Dr Tedros Adhanom Ghebreyesus, WHO director-general said that violence against women is a major threat to women’s health football and that of their children. It is also, he added, a grave violation of human rights that must end now. WHO, he said, is proud to stand with FIFA, the African Union and CAF to launch the campaign across Africa to bring attention to this critical issue, adding that they are committed to a world where women live free from violence and discrimination. CAF president Ahmad Ahmad stated: “Wheth- er at home or on the pitch, everyone is enti- tled to respect and safety. Domestic, physical or moral violence, especially against women and children, must be condemned. Do not be afraid or ashamed to seek help if you are a victim of violence in your own home. If you are a witness to violence, intervene or get help, but do not stay silent: remaining silent is to be guilty of complicity. Never forget that everyone has a right to live in safety in their own home.” The #SafeHome campaign launched across Africa is part of a wider global initiative to raise Gianni Infantino, FIFA president awareness on this critical issue. In Africa, the awareness videos feature nine football stars IFA is joining forces with the African campaign on the important topic of domestic – Abel Xavier, Emmanuel Amuneke, Sarah Union, the World Health Organization violence, which is significantly exacerbated by Essam, Khalilou Fadiga, Geremi, Rabah Madjer, F (WHO) and the Confederation of African COVID-19 lockdown conditions and movement Lúcia Moçambique, Asisat Oshoala and Clémen- Football (CAF) to jointly address the issue of restrictions, together with our partners, the Afri- tine Touré – who convey a series of key messages domestic violence by launching the #SafeHome can Union, WHO and CAF,” said FIFA President to the public. The campaign is being published campaign across the African continent. Gianni Infantino. “It is our duty to leverage the on various FIFA digital channels and African The initiative is designed to support women immense popularity of football in Africa to raise Union and WHO channels. #SafeHome is also and children victims of domestic violence, awareness on this societal challenge with a very being supported by multimedia toolkits for particularly as stay-at-home measures in clear message: violence has no place in homes, FIFA’s member associations and for media to response to COVID-19 have put them at great- just as it has no place in football.” help facilitate additional localisation and to er risk. A number of African football stars are The African Union Commission, said H.E. further amplify the message worldwide. supporting the campaign via video awareness Amira Elfadil, African Union Commissioner for FIFA is calling upon its member associations messages distributed on social and traditional Social Affairs, is resolute and committed to the to actively publish details of national or local media. protection of women and girls. help lines and support services that can help The African Union-FIFA-CAF memoran- “We recognise and align ourselves with victims and anyone who feels they are at risk of dum of understanding, which was concluded FIFA, CAF and the World Health Organization domestic violence in their locality. The world in February 2019, covers joint campaigns on and other stakeholders on the efforts aimed at governing body also calls upon its members to topics of mutual interest and the promotion of preventing abuse and domestic-based violence review their own safeguarding measures using gender equality, a key principle. Other areas of through collaborative programming that links the FIFA Guardians toolkit to ensure that foot- collaboration include education through foot- reconstruction, access to the continuum of ball is fun and safe for everyone in the game, ball, sports integrity and safety and security at service, addressing the underlying social norms especially women and the youngest members football matches. and harmful practices that continue to perpetu- of the football family. “I am glad that today we can launch this ate gender-based violence and inequality, as

60 | Nairobi Business Monthly September 2020 Book Review The noses in our family and other stories

BY JACOB OKETCH an abused woman in a story titled Kenya and her men. This feminine depiction of the country his collection of short stories by Gilbert is indicative of the collective ownership of the miscalculate and enjoin people who are not Muyumbu takes us back to what the republic by her citizens the same way a mother is worth their time in their circle of friendship. T essence of a short story entails. No winding the bearer of her children. The licentious traits of Since drunkardness leads to poor judgement, and complex plots. The stories do not betray the woman are symbolic of a myriad of immoral one is in danger of attracting unsavory charac- their meaning by being indeed short, always acts committed by public servants that end up ters in their lives. In a way, the author is also restricted to one episode that is then elaborated eroding the integrity of the nation. Just like the sounding a warning to alcoholics that they stand in the body of the story. That way, the reader woman is used and dumped by men, our country to lose their memory as a result of their addic- is not distracted at all and easily manages to continues to be plundered by our incorrigibly tion. In the story is a man who is ever forget- transit from one story to the next. corrupt public officials without an iota of shame. ful and this makes him a laughing stock in the It is rare to find stories about war among There is also a story about a man who lost all community. It is this forgetfulness that embold- Kenyan writers. This is understandable given his investments after being attacked by sympa- ens wayward characters to take advantage of that our country has not gone into a full scale thizers of a faction that lost in an election. The alcoholics, something which they mistake for war with another country and save for the post author paints a picture of a community that genuine friendship. election violence, we have not experienced a became hostile to prosperous residents who In one of the stories, the author gives the read- civil war. The author, in Things that happen when were not members of that ethnic community. ers a glimpse of a creative writer’s process of we fight, gives the readers a glimpse of what Ethnic profiling is something that Kenya has doing their work. In this deeply engaging story victims of war go through in the places they to grapple with after every presidential elec- of a family that is taking care of a sick father, settle in after fleeing. tion. Thousands of people are displaced from the sons take turns in walking him outside the A refugee in any environment is treated as their areas of residence, especially if they are house. Since the old man lost some of his cogni- such even if they are people who have achieved not members of that ethnic community. In such tive abilities, the sons are supposed to reori- tremendous progress in their previous stations. situations, even people whom you consider ent his mind to the meaning of things. The two It is dehumanizing to see people who fought friends will turn a blind eye when you are being sons have different views of what phenomena gallantly for freedom and equality being treated violated. means. So the eldest boy keeps on contradict- as second class citizens simply because they Sometimes, it takes an extraordinary occur- ing the younger one when he explains to his were not born where they currently reside. rence for people to change their ways. In situa- father something. Dissappointed, the younger There is a story in this collection that mirrors tions where peer influence is very strong, this is son retreats to his chambers to write his version what happened in Rwanda - The genocide. In what it takes for someone to pivot to a desirable of whatever he was explaining to his father. this story, people are profiled on the basis of position. Alcohol is a powerful influencer that Similarly, a writer records what happens in how their noses look like. We are also told that is difficult to shake off. In a story titled Saulo the society, not as the ordinary person views communities compete for power and rule inter- Paul, the narrator tells of an episode where a them. It is this obscurity of literal meaning in cheangably; members of the deposed commu- merry making adventure between a couple of a work of art that makes it one. nity are forced to seek asylum. This is the same friends turned awry after they were ambushed Overally, most of the stories are set in a thing that has been happening between Rwan- and murdered by highway robbers except just humble environment - the village. The char- da’s Hutu and the Tutsi ethnic communities that one of them. The victim’s spiritual transfor- acters are the everyday people we encounter in a reside in Rwanda, Burundi and the Democratic mation is something that his other drinking rural village and the episodes are quite authen- Republic of Congo. The denigration of the Tutsi buddies and colleagues find very difficult to tic. Almost any reader is able to relate to the as cockroaches is similar to what happens in this come to terms with. The takeaway here is that circumstances described in these stories. The story where people whose noses have a certain it takes something quite compelling for us to minor flaws in the development of the stories appearance are considered to be vermins. The get out of our comfort zones. can justly be attributed to the fact that the author author vividly brings out the prejudices that Relationships are a difficult subject to handle is just starting his trade; this collection is his occur as a result of competition for power among given that it has many facets. Sometimes those first creative writing effort. It is evident that with ethnic communities. we consort with as friends are actually a liability more offerings, his works will be mouthwater- Mr Muyumbu, in a very imaginative way to us. The story of two drinking buddies who are ing. Grab a copy of this collection and enjoy the paints a picture of a thoroughly mismanaged at odds wakes us up to this reality. It is during antics and escapades of the rural folk. You will country; Kenya. He personifies the country as moments of inebriation that most people not be disappointed.

September 2020 | Nairobi Business Monthly | 61 Society & Culture soccer Solomon Alubala and the vision behind Wazito FC

hen we introspect on Kenyan football, of Kenya through Judge Pauline Nyamweya steps would be the continuation of a visionary seldom do we encounter a story of a suspended the sentence. journey of a club that continues to make all the W man so audacious and visionary as the “There is need to preserve the status quo right noises with regards to football administra- journey of Mr Solomon Alubala and the forma- until the legality of [CMA’s] proceedings and tion and ambition in Kenya according to some tion of Wazito Football Club. the decision is established,” Nyamweya’s ruling observers of the local game. Solo, as he is famously known, is the last- read in part. His frequent global trips courtesy of his born son in a family of 11 children, and played Yet, this former Musingu High School alum- professional banking career opened his eyes football for Musingu High School in the late nus would always find time to go back to his to how other nations were developing their 1990s. Upon completion of his O-Levels, Utalii alma mater, UON, to play football. Buoyed by the football. For instance, while on such a trip in FC, who had won the Kenyan Premier League fact that in the year 2000, he led his university South Africa, he was inspired by how Kaizer (KPL) in the year 1997, arrived to sign him. side to winning the Kenya University Sports Chiefs Football Club conducted their football His father, however, turned down the deal and Association, (KUSA), football trophy. business. He went to a kit manufacturer, KAPA instead had him pursue his academic studies When he went back to study for his Masters in shop in South Africa to seek a jersey partnership at the University of Nairobi. According to the Economics at the same institution, the love to but would be turned away by their terms of busi- dad, and rightly so if you ask me, football was an play football kept growing amongst him and his ness. KAPA wanted him to make a minimum uncertain future and he was later proved right. peers. At this point, the UON team was content order of 5,000 jerseys with a single jersey being Utalii FC was folded due to financial constraints with playing in the lower Nairobi leagues sold for Sh2, 500. and poor management of Utalii College, which with no ambition to advance to the higher tier Looking at the local market, he knew that if was the parent institution that was running the leagues. At some point, the University Admin- he was to factor in his operational costs and football club, joining an endless list of Kenyan istration even withdrew financial support to sell the KAPA branded jerseys to Wazito FC fans soccer clubs like Rivatex FC, Oserian FC, Mumias the team in the league. in Kenya then the price would be around Sh4, Sugar FC and Feisal FC that folded due to lack The desire to play in the higher leagues and 000 and quite prohibitive in the local market of professional management in their admin- have a professionally run team drove him to infiltrated with many counterfeits that retail istration. the formation of Wazito FC. This was around as cheap as Sh1 000. At Musingu High School, Solo featured as a 2009/2010. Wazito continued training and Yet, another trip to a Puma shop in Italy would striker under the tutelage of Mr Stanley Avudiku having friendly games with respected KPL teams open his eyes big time. Germany had won the and Coach Khaweli Shivachi. He participated in like AFC Leopards, Mathare, Thika United, Posta 2014 World Cup in Brazil, beating Argentina by the famous Coca Cola under 17 national cham- and KRA. The team had a mixture of students a solitary goal courtesy of Mario Goetze. Two pionships that were hosted in Western Province and alumni, and they posted good results as a in 1998. In the tournament, a host of later would number of its previous players would admit; Director Solomon Alubala be Kenyan internationals like Evans Amwoka, and from this it was clear that they had a very Bernard Mwalala and Jamal Mohamed featured. good team. In the year 2002, Solo graduated with a degree The name Wazito, slang for heavyweight, was in Economics from the University of Nairobi. coined from the fact that students used to refer Later in 2004, he joined the banking sector. to those who were working amongst the team- Here, he would work at some of the country’s top mates as Wazito. This is because they would financial institutions like the NIC Bank, Middle give financial tokens to the college students for East Bank, Chase and Co-op Banks. Alubala rose sustenance. Thus, they were viewed as ‘saviors’ in his banking career to be appointed head of or ‘wazito’. The team combined the graduates treasury at National Bank of Kenya, a position still seeking employment, the employed and he held until 2016. UON students then. In 2018, the regulator, Capital Markets Solo would later patent and register the Authority (CMA) fined him Sh108m for alle- name Wazito FC. In 2011, they registered for gations that he amongst others conspired to the GoTV Cup and travelled to play Nationwide defraud the institution of some Sh1b. In the FC in Kakamega. A game they would narrowly same year, he was reprieved as the High Court lose by a last-minute solitary goal. These little

62 | Nairobi Business Monthly September 2020 player jerseys were the top sales in the sports commercial perspective or even seek to conquer other was with a Japanese Company that also shops he visited in Italy. The first was Andrea football in either the region or continent. owns a Belgian top flight side Saint Etienne. Pirlo’s and the other was Mario Balotelli’s jersey. The club had meanwhile established a social Former Kenyan international, Pascal Ochieng It baffled him that the Italians were scrambling media presence back in 2014 and they became had introduced him to them. Sadly, the latter for the Balotelli jersey and that the Puma shop vigorous about it. Solo opened a shop along went to sponsor a club in Morocco. was effectively capitalizing on this. Ngong Road to sell club merchandise in 2018. At some point, a German investor approached Compared to Kenya, local clubs however Sadly, this did not do well, an admission he a top ranking FKF official to liaise on the pros- successful they had been on the pitch or howev- makes and points to the fact that he lacked pect to invest in the club but again the interest er massive their following was amongst commu- operational expertise and that led to its natural quickly faded away. Then, Solo would receive nities, never maximized on merchandise sales. death. But Wazito FC replicas continued to be a call from a Dubai based consultant named None had or even has a merchandise shop for sold through his network of friends; and both Fred Kuria. This would start a conversation fans to make purchases. This would inspire him players and fans donned them to create more with Ricardo Badoer in Feb 2018 that would let and Wazito FC to view football from a business visibility nationwide. the club fall in the hands of the cigar smoking, model perspective and not just a leisure game To attract sponsorship, Wazito FC sent out controversial and football-loving Dubai based that could not earn returns. close to 50 proposals, including several corpo- investor. In his quest to professionalize the club, Solo rates in the country. Yet, the dark history of Solomon Alubala is an illustration of what sought help from fellow professionals. In 2016, Kenyan football; one of violence by fans during vision in our local football can achieve. Wazito he formed a non-executive board. This consisted games kept these corporates away. In his propos- FC has grown from a club that traces its roots of a lawyer, Marketer, PR consultant, banker and al was both a valuation and (5-10) year plan on to the UON and where players kicked the ball Accountants. “This is the team that helped me how Wazito FC would win the local league and with no income to become a soccer club that is put my vision on paper,” he offers. move on to even conquer continental football. one of the best managed clubs in the country in Mr. Alubala roped in Francis Ouna in 2016 It was ambitious and also included the club’s terms of player welfare. They even have plans as Wazito FC coach, a man he describes as valuation whose estimates this writer was not to build their own stadium. visionary and with brains that energized his able to come by. Wazito FC was promoted to the Kenyan strategic plans for the club. Solo would write He agrees that a number of corporates loved Premier League in the 2017/2018 season but the Wazito FC Blueprint at around that time. the proposal, but the reputational risk of Kenyan was relegated in the same season. Down in Local soccer giants like Tusker FC, AFC Leopards football put them off. In 2017, Wazito FC came the National Super League, it posted impressive and Gor Mahia seemed to be engaged in rocking close to tying up 2 deals. One was with a senior results winning the second-tier league season chair football activities, just to participate in Sportpesa director who was sold to the idea of in 2018/2019. That earned her promotion back the league, win it but not grow as clubs from a buying the club but it never materialized. The to the 2019/20 KPL season. The club is in the 13th position currently, although the league was ended by FKF a move that was objected to by KPL, the league owners, due to the coronavi- rus pandemic. Off field, the club owns an ultra- modern team bus and a merchandise shop at NexGen Mall, 1st floor, along Mombasa Road. Currently owned by Ricardo Badoer under his Badoer Investment Limited as the major- ity shareholder; Wazito FC players are amongst some of the best paid in the country with impres- sive bonuses and employment terms that have medical insurance, a positive step in a country where football management and player welfare have often had little to write home about. One thing though, the club has recorded one of the highest coaches and player turnover in the last two seasons. They may have conquered the NSL, but the KPL is proving a tougher chal- lenge and it will be interesting to see how they navigate through in their second season. Whatever will ever come out of Wazito FC, one thing is certain; the vision, determination and pursuit to make it a professional club under Mr Alubala will always be a case study for others to look into with regards to our local game.

September 2020 | Nairobi Business Monthly | 63 LAST WORD

Glamourous photo shoots don’t change reality of Africa’s harsh pest load

communication gulf exists in our modern world as simple as the dipping of cattle to prevent ticks and the between scientists and non-scientists. Yet we can deadly diseases they give to animals and humans alike. BY ERIC A all use a TV without knowing how it works, or take From Crimean-Congo haemorrhagic fever, Lyme disease, KIMUNGUYI antibiotics for pneumonia without a biology qualification, Relapsing Fever (borreliosis), Spotted Fever, Q Fever and just as we can pick up WiFi without understanding internet all the other Rickettsia diseases, Tick-borne encephalitis, protocols. Tularaemia, and others, our rural populations are already However, when a gap in general scientific knowledge beginning to suffer more from the growth in ticks on the begins to be exploited to deliver a political victory or prec- decline in tick control, and these are ugly, high-temperature, edent that will benefit some, but hurt many more of us, it rapid deaths, for the most part.Indeed, the global One Health can start to matter a lot that we and our policy makers get movement has been driving awareness that healthy people to grips with the science involved. require healthy animals and environments: you don’t just And so it is with the current debate on pest control. allow ticks and locust and fall armyworm to flourish uncon- For, there have been anti-technology movements and trolled and expect to enjoy a healthy population. Such pests scientific rifts throughout history, but with our climate and parasites carry dozens of vector-borne diseases that kill warming, and pressures of population, food, zwater and some three-quarters of a million people a year. other resources all growing, it is now vital we distinguish This disease bomb, which some campaigners are seeking between the ‘Earth-is-Flat’ movements and the ‘Earth-is- to call healthy compared with using pest control made from Round’ movements of our modern world. molecules that break down, is compounded by more than And, in this, none of fervency, celebrity, or level of noise 600 types of weeds that are getting into crops and introduc- are indicators of the rights and wrongs. Indeed, it would ing pyrrolizidine alkaloids – found in herbal teas, honey, be a subject for a keen historian to examine such science herbs and spices, cereals and other foods, according to the clamours and see if the views that were the less fervent, the World Health Organisation (WHO) - which damage human less popularised and the more practical, academic and drier DNA and actually do cause cancer. always turned out to be the correct ones, or whether both For we scientists, familiar with the poisonous nature of polar opposites were normally equally loud and passion- these natural toxins - actually called ‘toxins’ by the WHO, driven. which knows at least one or two things about what is toxic and Either way, my own science community has done a poor what isn’t - the current manipulation of scientific informa- job, as scientists, in explaining the safety checks and essential tion with false claims, celebrity posters and viral videos is nature of pest control products once faced with posters of hard to know how to counter. How do all of us in agriculture vegetables that say ‘choose your poison’. It doesn’t matter that counter this onslaught from those who are making a living we put these products through nine years of international and their political fund raising through trying to get Kenya testing to establish how they can be used without poisoning to deliver a world first that they can claim as their victory? people, or that they are based on molecules that break down For these campaigners want nearly all pest control banned in days, so they simply do not exist some days after they are in Kenya, where all of those products are used across the rest deployed to control one pest or another. of world, in Tanzania, in Uganda, as well as in the USA and Faced with a celebrity-filled poster, the chemistry of molec- Australia, and by our food trading partners. Articles in the ular breakdown isn’t a route to hearts looking for a cause. Wall Street Journal have attacked this campaign in Kenya However, it just so happens that it is a scientific fact that as green colonialism, funded, as it is, almost entirely from makes a massive difference to our health and food security. European political purses. Individual examples of that difference abound, and we But whoever is funding the big and glamourous noise have managed to speak about locusts, which actually cannot underway, the children dying of encephalitis will be a lot be killed by banging pans, and actually do eat entire crops quieter, as will the families who lose their maize to fall and breed vigorously. We have also spoken of fall army- armyworm. And what their future depends on is not the worm, which has swept through our maize crops triggering glamour, but the facts, the tests, the solutions, the costs Writer is the CEO shortages. But the pests that face our farmers, and which are and benefits, and the hard stuff of serious decision making, of Agrochemicals routinely resolved in Europe and North America, Australia away from the studio lights, and driven by hard realities of Association of Kenya and much of Asia with pest control products, are sometimes death by tick. For Kenyan lives matter.

64 | Nairobi Business Monthly September 2020

Special Subscription offer

Save up to 17%

SUBSCRIBE TODAY AND SAVE KES600

ANNUAL COVER PRICE SPECIAL OFFER PRICE KES 3,600 KES 3,000

SUBSCRIPTION ORDER FORM HOW TO SUBSCRIBE Surname

Job title Company

Visit us Delivery address: Please tick ~ Business ~ Private 1st flr, Mayfair Office Suites, off parklands road

Postcode City /Town call us 0715 061 658 Telephone E-mail Payment or complete and return the order ~ Paybill number 670361 form on the right ~ Cheque enclosed, payable to The Nairobi Business Monthly Ltd

mail us Signature [email protected] September 2020 | Nairobi Business Monthly | 65 SPECIAL REPORT: IdlingWhy fees asour Shamelessness SpecialEXCLUSIVE report: INTERVIEWS WITH DCI KINOTIInside: AND DPP HAJI: the newcurrent frontierUhuru’s tricks in graft graftwon’t - gladiators focus end on offer insights intoof monopolising their work ethic, an PUNISHING JUDICIARY? NSSF,Kenya’s Kenyathreats Pipelinedrug toproblem the& KQ Kenyan P.31 P.20 state and the honourentire of countrypublic office P.30 Parliament’s budget coup and other omens P.12 The Nairobi Law MonthlyMonthly The Nairobi LawVol 10 • IssueMonthly No. 06 | August 2018 Ksh350 • Tsh5,570 • Ush10,450 VolVol 10 11 • •Issue Issue No. No. 07 6 | September 20192018 Ksh350Ksh350 •• Tsh5,570Tsh5,570 • • Ush10,450 Ush10,450 InsideRESETTING Tullow Oil’sTHE Tax CLOCK Evasion Racket

STATE CAPTURE THE RAI REPUBLIC

GET IT ON PRINT •DESKTOP • MOBILE

Take advantage, subscribe today and receive the following benefits: • Get your copy delivered to your door step • Full access to nairobilawmonthly.com • Unmissable Nairobi Law Monthly special reports and exposé

0715 061 658 66 | Nairobi Business Monthly September 2020