Author

Ben Oduor

Business writer with interest in writing about the hospitality industry, tourism, entrepreneurial profiles, regional trade and business analytical stories. During my free time I enjoy swimming, adventure and reading inspiring articles.

Health

Kenya’s Haltons Pharmacy Opens in Addis Ababa, Ethiopia

by Ben Oduor September 9, 2021

written by Ben Oduor

New Haltons Pharmacy in Addis Ababa complements mPharma’s deep commitment to increasing patient access to affordable and quality healthcare on the continent.
It builds on mPharma’s mission to build an Africa that is in good health by delivering life-changing health care services and drugs to improve health outcomes for patients.

mPharma, a patient-centered and technology-driven healthcare company and Belayab Pharmaceuticals PLC, announced today the opening of the first Haltons Pharmacy at Sarbet in Addis Ababa, Ethiopia. Haltons Limited is a subsidiary of mPharma and is currently operational in Kenya with 27 stores across the country.

Through the franchise agreement signed in March 2021 by mPharma and Belayab, the new pharmacy in Ethiopia is intended to support expanded growth opportunities locally and in the region.

As the population and economy of Ethiopia continue to grow, the the country is investing in strengthening its health systems to improve the standard of health for its people. Powered by mPharma’s proprietary Bloom technology, the new Haltons Pharmacy in Addis Ababa is expected to provide patients with access to affordable and quality medications. The pharmacy will also launch mutti®, mPharma’s health membership program, which provides loyal customers with discounts, free health screenings, and other primary care services.

Naa Akwetey, SVP, Strategy and Business Development, at mPharma, said:

“mPharma is deepening its long-standing commitment to Africa as a whole by increasing access to health care resources in the region. We continue to work with our retail partners to transform community pharmacies into primary care centers that provide value-added services to all patients so they can live not just longer but healthier lives. This is the first of many more pharmacies to come, and we are optimistic about the future of healthcare for Ethiopians through this partnership with Belayab.”

Robel Minassie, Co-founder Belayab Pharmaceuticals, said:

“We look forward to making an impact in Ethiopia’s health care sector working hand-in-hand with Haltons Pharmacy and mPharma. We expect to have an innovative model in serving our customers and contribute to satisfying the country’s health care demand through opening the first Haltons Pharmacy in Ethiopia”

Mike Ghebru, Shareholder, Belayab Pharmaceuticals, said:

“We are excited to be opening the first Haltons Pharmacy in Ethiopia and expect to do a lot more work in the near future”

The opening of Haltons Pharmacies in Ethiopia is part of mPharma’s ongoing mission to build an Africa in good health by constantly shaping new health care methods to improve treatment standards for every African.

September 9, 2021 0 comment

Aviation

Kenya Revenue Authority nubb a narcotic consignment at JKIA

by Ben Oduor October 28, 2020

written by Ben Oduor

The Jomo Kenyatta International Airport have intercepted concealed heroine and bhang that were being smuggled through an international courier service provider.

The two prohibited consignments which originated from different countries to different destinations, were intercepted recently. The heroine originated from Juba,South Sudan and was destined to Cambodia whereas the bhang had originated from Kasese in Uganda and was destined to France.

Both consignments were separately intercepted after they were detected while passing through the non-intrusive scanners. KRA Customs officers jointly with other officers from the Multiagency Team (MAT) at Jomo Kenyatta International Airport (JKIA) opened the consignments for 100% verification after the scanner showed some concealments.

Heroin was concealed in the buttons of dresses in the consignment while the bhang was wrapped in a black polythene paper concealed in an inner pocket of a Kitenge cloth. Both consignments were seized after seizure notices were issued and placed in custody of the Anti-Narcotics Unit.

Smuggling and importation of prohibited goods is an offence under the East African Community Customs Management Act 2004.

KRA, in collaboration with other government agencies, continues to be vigilant at all ports of entry to curb trade of illicit goods through the borders and other transnational economic crimes.

October 28, 2020 0 comment

Finance & Banking

Mastercard, Selcom launch app to drive digital transactions in Tanzania

by Ben Oduor September 21, 2020

written by Ben Oduor

Mastercard and Selcom has announced the launch of the Selcom Mastercard app, an enhanced mobile payment application that enables people to centralize all their payment cards or supported mobile banking profiles on one digital platform, for ease of payment via Mastercard QR.

The app allows users can pay at any Mastercard QR enabled merchant in Tanzania, settle their bill payments from within the app, while discovering exciting offers near them in an easy, safe and convenient way. The app addresses the lack of a one-stop solution for all consumer payments in Tanzania.

The app is enhanced with Qwikrewards and Discovery features which enables businesses to easily offer cashback to consumers who pay through Mastercard QR. Consumers will be able to benefit from offers across different locations such as Puma, Alcove, Ahlan Restaurant, Cafe Aroma, The Backyard, and Hotpoint Appliances. We aim to start off with 1000 merchants and expand across all industries reaching all 50,000+ merchants who accept Mastercard QR in the country.

Qwikrewards provides consumers a single collection point for all cashback received when paying for goods and services. The rewards can then be redeemed, at the consumers’ convenience, at any Mastercard QR acceptance location in the country or to make government payments, purchase local or international airtime, and even pay for internet and TV subscription, making the app a one-stop shop, relevant for all day-to-day spending. For small businesses who offer these rewards in a bid to grow their customer base, this solution enables them to customize their offerings, digitally track their offers and receive electronic payments, all without having to invest in costly hardware.

The Discovery feature on the Selcom Mastercard app adds excitement to the shopping experience. Consumers can now easily identify new offers near them. SMEs and corporates can showcase all their offers on the app, and easily customise them based on their own marketing plans and efforts. Customers in turn can select from a gallery of promotions, and have the rewards accumulated in one place.

Adam Jones, Country Manager for East Africa, Mastercard said, “Mastercard has been spearheading the transition to digital payments for several years in Tanzania. By partnering with Selcom to incentivize consumers to pay for goods and services using the newly launched Selcom Mastercard app, not only are we promoting digital and financial inclusion, but we are also connecting merchants to a wider customer base to increase the volume of their sales transactions. Mastercard’s QR payments technology is a powerful tool that offers consumers an enhanced payments experience, and over the coming months, we look forward to further collaboration with our partners to continue delivering relevant solutions that encourage people to transact more seamlessly and efficiently.”

In his remarks, Selcom’s Executive Director Sameer Hirji said, “We have deliberately positioned Qwikrewards as an enhancer and motivator for consumers to adopt digital payments and to promote the cashless economy in Tanzania. The most relevant gap that the Selcom Mastercard application addresses is the ability to link a Mastercard debit or credit card, or any other scheme card to the application to pay at Mastercard QR merchants for free, even if your bank does not directly support the service through its own app. Selcom is known for disruption, and this is one many services we will be launching in the coming months to make the lives of consumers and merchants better and easier. With the added cashback angle, consumers should be even more willing to use Mastercard QR.”

Over the past year, Mastercard has launched several digital payment partnerships in Tanzania designed to equip people with the right tools to join the digital economy and pave their own path towards financial security. These partnerships have resulted in a Mastercard QR consumer base of tens of millions and more than 50,000 new merchants accepting QR payments in the country.

The Selcom Mastercard app is available to download in the Google Play and Apple Store.

September 21, 2020 0 comment

Aviation Covid-19 Editors choice Hospitality Industry Tourism World

COVID-19: Ravages of the pandemic

by Ben Oduor August 10, 2020

written by Ben Oduor

COVID-19, the disease caused by the new coronavirus, which was first reported in the Central Chinese city of Wuhan late December 2019, has since spread across the globe and caused devastating effects to economies.

New cases of the virus are being reported daily around the world. And countries had to adopt sweeping measures including announcing full lockdowns, shutting down airports, imposing travel restrictions or completely sealing borders to contain the spread of the virus.

By June 7^th 2020, more than 400,000 people had died from the disease, while some 6.9 million infections were confirmed in at least 188 countries and territories, with the United States leading with infections- at 1.9 million cases and 109, 802 deaths, followed by Brazil (672,846 cases and 35,950 deaths), then Russia (467, 073 cases and 5,851 deaths), among scores of human costs worldwide.

Nations across the globe enforced limited entry, with some, such as the United States issuing a Level 4 “do not travel” advisory- the highest travel advisory the federal agency can issue, recommending that United States citizens avoid any global travel, The New York Times reported.

With such restrictions, businesses have had to cope with lost revenue and disrupted supply chains as factory shutdowns and quarantine measures spread across the globe, restricting movement and commerce.

International travel

Flights at the JKIA airport,Nairobi:Aviation sector is one of the worst hit globally

On 5^th March, before the US travel ban was announced, the International Air Transport Association (IATA) predicted COVID-19 outbreak could cost airlines $113 billion in lost revenue as fewer people take flights.

The International Civil Aviation Organization (ICAO) would on June 5^th publish a statement estimating that the global aviation industry could incur approximately USD 302 to 402 billion potential loss of gross operating revenues of airlines in the year 2020- depending on duration and magnitude of the outbreak and containment measures, degree of consumer confidence for air travel and economic conditions- with an overall reduction of passengers of between 2,300 to 3,080 million and an overall reduction of seats offered by airlines from 39 percent to 53 percent.

Already, the wave of disruptions to air travel caused by the epidemic had led to an 80 percent drop in air traffic at China’s busiest airports during the time of review, as analysts projected the impact on the global aviation industry to be greater than that of SARS.

Besides the impact on airlines, ICAO forecast that Japan could lose $1.29 billion of tourism revenue in the first quarter due to the drop in Chinese travelers, while Thailand could lose $1.15 billion.

In Africa, where the virus had infected more than 260,000 people across the continent as of May, the African Airlines Association (AFRAA) released a report estimating revenue loss of USD 8.103 billion for the continent’s airlines for the year 2020, with a further 90.3 percent year on year passenger traffic reduction for the month of May.

“The availability of liquidity is the main issue to be addressed for airlines to survive and restart their operations. Without it, airlines can simply not survive this pandemic long enough to restart their operations. AFRAA urges African governments to consider a bailout and stimulus package that compensates for the significant losses, reduces the burden of the ongoing operating costs and subsidizes the industry’s survival and recovery,” noted AFRAA Secretary General, Mr. Abdérahmane Berthé.

Despite some African national carriers resuming international flights (like Kenya Airways (August 1), Egypt Air (1^st July) and Ethiopian Airlines (13^th July), albeit with reduced schedules, key industry leaders such as Qatar Airways CEO Akbar al-Baker say the pandemic will cause huge financial losses to the industry.

Already, airlines such as South African Airways were struggling with bankruptcy even before the pandemic. Some either face collapse or have filed for bankruptcy due to widespread stay-at home orders, while others have taken to the skies with renewed optimism.

Hospitality and Tourism

The World Travel and Tourism Council (WTTC), on the other hand, estimates losses of 100 million jobs and up to USD2.7 trillion impact on GDP. Of the 100 million jobs at risk, according to WTTC, almost 25 million were estimated to be in the G20 countries.

In Africa, at least USD50billion in revenue losses is projected for the tourism and travel sector, with more than 2 million jobs at risk, according to a Deloitte report published in May.

Kenya’s tourism industry, for instance, which contributes about 1.6 million jobs (8.5 percent of total employment) registered improved performance in 2019 mainly attributed to growth in aviation, investor confidence and withdrawal of travel advisories, increasing tourism earnings by 3.9 percent from Ksh157.4 billion in 2018 to Ksh163.6billion in 2019. The number of international arrivals increased by 1.2 percent from 2million arrivals in 2018 to 2.1 million arrivals in 2019.

But with the COVID-19 pandemic, leisure and conference tourism, both external and domestic, face possible collapse owing to travel restrictions which stopped international tourist arrivals, while social distancing measures have affected domestic tourism and conferencing.

Kenya’s leading hotels, including Tribe Hotel, Ole Sereni and DusitD2, stopped operations days after travel restrictions and social distance rules were imposed, with the iconic Fairmont Norfolk shutting down indefinitely and firing its employees. The 51-year old Intercontinental Hotel (Nairobi) followed suit, closing down its Kenyan subsidiary and sending home all its staff early August. The Kenyan government has however set aside Ksh500million to recover the hospitality industry, while urging for domestic tourism to keep the industry afloat.

Agriculture

Africa’s agricultural sector, which remains the backbone of various economies in the continent, has also faced a huge scare from the pandemic.

Kenya’s flower sector has for instance been losing approximately Ksh20million daily, according to clement Tulezi, the Kenya Flower Council CEO. And is estimated to lose half of its value of Ksh120billion (2019 valuation) by end of 2020.

“Approximately 30,000 temporary workers have been laid off and another 40,000 permanent staff sent on unpaid leave,” the Council noted, raising fears the sector could collapse if the pandemic is not contained.

Ethiopia’s agricultural sector isn’t any better. Accounting for about 33.3 percent of the country’s GDP, the sector has lost output due to prolonged locust invasion, drought and the pandemic, and is expected to decline by 1.6 percent in 2020, possibly leading to food shortages for an estimated 30 million people.

A downward trend in global demand pressure has reportedly reduced prices for coffee and tea in Uganda’s major import markets. Continued decline of prices over the coming months is expected to affect approximately 500,000 small-scale coffee farmers in the country.

Already, locust invasion in the North Eastern parts of Uganda had reduced agricultural output. And with the global lockdowns and trade restrictions, reduction in agricultural production is expected.

Manufacturing

Honda North America Company:The plant was temporarily shut downearly 2020 due to Corona Virus pandemic Courtesy(CNBC)

The pandemic has further taken a toll on the global manufacturing industry, resulting to factory closures, increased unemployment and decline in production & supplies. Global vehicle sales is, for instance estimated to decline by 19 percent in 2020 from about 90 million sales in 2019 to an estimated 73 million sales in 2020.

The passenger car segment is projected to decline by 11 percent, a USD100 billion loss in revenue. Financial Times reported that UK new car sales fell by 97 percent in April, ‘putting Britain’s motor industry on track for its worst year in almost three decades.’

However, a glimmer of hope beckons as several global automotive manufacturers had by May announced plans to open up their plants, albeit with caution. In the US, for instance, Honda, Toyota and FCA restarted operations, even as the county’s vehicle sales is estimated to decline by about 24 percent in 2020 as China’s decline by around 14 percent during the year.

As one of the big four agenda for the Kenyan government, manufacturing is critical for Kenya’s economic growth and development, contributing about 7.7 percent to the country’s GDP in 2019. COVID-19 presents mixed impact to the sector with certain subsectors likely to boost production to meet essential goods demand, while others may suffer depressed demand and production activity.

According to Deloitte’s Economic impact of the COVID-19 pandemic on East African Economies report: “Food and health products manufacturing are likely to stay afloat. Food production will be boosted by persistence of domestic demand for food items, while health products manufacturing will benefit from expected expansion in manufacturing of essential medical and protective equipment to deal with the unfolding pandemic.”

The Kenyan government put in place several fiscal, monetary and institutional policies to combat the pandemic. In addition to the Ksh79.3billion Rapid Credit Facility by IMF, Ksh5.3 billion from the World Bank and Ksh7.4 billion funding from the Central Bank of Kenya, it remains to be seen how the Kenyan government will cushion critical sectors to remain afloat post-COVID-19.

In Tanzania, exports averaged USD5.4 billion in 2019 and is expected to decline to USD5.1billion in 2020, while goods imports which averaged USD8.6billion in 2019 are expected to decline to USD8.1billion in 2020.

The country’s tourism sector, which contributes about 6.5 percent to GDP whilst providing more than 1.5 million jobs, is projected to take a hit due to closure of hotels and global travel restrictions. Tanzania’s aviation sector had experienced a 1.5 million decline in passenger traffic in Q1 2020, resulting in a USD310 million revenue loss and risking of about 336,000 jobs.

Tanzania’s GDP was initially estimated to increase by 5.3 percent in 2020, down from 6.3 percent in 2019. However, following the COVID-19 pandemic, GDP growth is expected to decline to 2 percent in 2020. The Country reopened late June after three months on lockdown, with President John Magufuli announcing a coronavirus-free state and instructing sectors to reopen for normal business.

Shrinking economic growth

Overall, the global economic growth has been projected to shrink from the effects of the pandemic.

Analyses from IMF and the World Bank estimated cumulative loss to global GDP over 2020 and 2021 from the pandemic to be around USD9trillion, greater than the economies of Japan and Germany combined.

More than 170 countries are set to experience lower GDP per capita compared to their 2019 average values, as global oil prices decline by 42 percent in comparison to the 2019 average price.

Previously high growth economies in East and West Africa such as Ghana, Cote D’Ivoire, Senegal, Ethiopia, Kenya and Tanzania are expected to see considerably slower GDP expansion in 2020, but still with positive growth rates.

Africa’s projected GDP growth of 3.2 percent for 2020 is now expected to recess to -0.82 percent, according to data from the May 2020 Deloitte report.

The article has been updated to capture some of latest developments in various industries, since the original done early May. The writer is the Editor at The East African Business Times magazine. You can reach him at oduor@eabusinesstimes.com for comments.

August 10, 2020 0 comment

Covid-19

GeoPoll: More than three-quarters of polled Africans hard hit by COVID-19

by Ben Oduor July 16, 2020

written by Ben Oduor

By Ben Oduor

A five-nation survey by GeoPoll in Sub-Saharan Africa- which covered respondents in Kenya, Mozambique, Nigeria and South Africa, has found that 60 per cent of those employed prior to the COVID-19 pandemic have not been able to work as a result of the outbreak, and nearly half of those are unsure if they will have jobs to go back to.

An even larger proportion, at four out of five of those polled in the survey of 2,500 respondents, reported that their income has decreased during the pandemic, with those in informal jobs, particularly in trade and agriculture, reporting the most widespread and largest falls in incomes.

Overall, some 60 per cent of formal sector workers reported income falls, but 88 per cent of informal sector workers reporting reduced earnings. The International Labour Organisation (ILO) estimates that the informal sector accounts for over 80 per cent of the workforce in sub-Saharan Africa.

“The closure of borders, restrictions on movements, and suspended education and hospitality sectors has caused financial havoc across the African nations studied, with those in informal employment being hardest hit” said Roxana Elliott, VP Marketing & Content, GeoPoll.

The lifting of restrictions is unlikely to repair the damage quickly, with only 57 per cent of the previously employed saying they still have work to return to once the COVID-19 restrictions are lifted.

Moreover, just 6 per cent of the respondents reported they have sufficient funds to cover their household expenses for more than five months, and most are already running down their savings or relying on credit.

Altogether, 30 per cent said they would be covering most of their expenses next month through borrowing, and 28 per cent by using savings. Moreover, during the pandemic, almost half of all respondents have taken an extra loan to help cover household expenses.

“With many sub-Saharan Africans still excluded from borrowing, the impact of the pandemic on income and employment, which has hit the lowest income earners the hardest, will make paying for basic expenses such as food and rent a challenge for millions over the coming months,” said Roxana.

Despite the harsh economic effects being felt, a majority in the nations studied believe their governments should prioritize protecting people from the virus, rather than focus on reopening economies.

Of the countries studied, Nigeria was the only one in which a majority feel that reopening the economy should be a priority. However, it was also found that those whose income has decreased significantly were more likely to favour reopening economies.

According to the pollster, the survey was conducted remotely via SMS from June to July 2020. It was run through its mobile surveying platform, which enables safe and effective data collection via SMS, voice call, and other modes even when in-person research cannot be conducted.

July 16, 2020 0 comment

East Africa Editors choice Education

KIVULI: The solution to resuscitate Kenya’s young academics

by Ben Oduor June 26, 2020

written by Ben Oduor

There are talks about quality education in almost all academic spheres.

For example, the Sustainable Development Goals (SDG) on ensuring inclusive and equitable quality education for all persons (Goal 4); the Sessional Paper No. 14 of 2012 on Reforming Education, Training and the Basic Education Act (2013); and the African Union’s Science, Technology and Innovation Strategy for Africa (STISA) 2024 emphasizes the need for quality equitable education and places innovation at the heart of education.

The 2010 Kenyan Constitution, on the other hand, provides for free and compulsory basic education to all children. Besides, Articles 43 (1) (f), 53 (1) (b) and 55 (a) in chapter 4 of the constitution, obligates both the state and parents to facilitate quality basic education for all children.

The African Union, in its blueprint Agenda 2063, aspires that by the year 2063, Africa shall be a prosperous continent with the means and resources to drive its development as well as have well educated and skilled citizens underpinned by science, technology and innovation. While such aspirations seem achievable, some experts warn that implementing Agenda 2063 could be hindered by lack of human capacity.

They advise stakeholders to consider investing in capacity building by promoting education in science and technology and to adopt measures that enhance change in the mindset of people and build the capacity of Africa’s human resource through education, research and knowledge acquisition.

Already, some African countries are trying to implement their education goals, continually increasing the number of universities and churning out millions of graduates to the job market. Intriguingly, quite a number of these graduates remain unemployed despite having the necessary academic papers.

In Kenya, for instance, a 2018 survey by the Kenya National Bureau of Statistics (KNBS) states that some seven million Kenyans, representing 15 per cent of the country’s population, were unemployed. While 1.4 million of them have been desperately looking for work, the rest have given up on job hunting and others have gone for further studies.

The Kenyan government believes the antidote is creating a new multifaceted curriculum that better prepares learners for employment – the 2-6-3-3-3, which could accelerate economic growth in sectors like agriculture, construction and fishing.

Stakeholder involvement

Cognizant of the need for a progressive curriculum to cater for the changing job market, the founders of Kivuli, an innovation and incubation center in Western Kenya, believe that familiarizing youths with local societal challenges and equipping them with necessary skills for their solutions is the ultimate cure for the unemployment crisis and rural-urban migration.

The founders opine that the youth have what it takes to provide solutions to the perennial community challenges. The only missing link is lack of requisite resources to get them on the job and skills to transition from theory and academics to the practical work.

After thorough scrutiny of developments in their native county Kisumu, one of the 47 counties of Kenya located in the western parts of the country, the founders realized that the county’s economic blueprint focused more on sectors that required a lot of young and energetic human capital.

The county, blessed with the world’s second-largest fresh water-lake – Lake Victoria, rich arable land, a promising services sector, tourism, transport and communications industry, among many other booming industries, provided a raft of opportunities for the millions of jobless youth in the region.

Disappointingly, most of these young people, just like in many other parts of the country, were moving from their communities en masse to look for jobs in urban areas, especially to the capital Nairobi.

This had to stop! The founders reasoned.

Their endgame would be to establish an innovation and incubation center that would tap and nurture high school, college and university students as well as recent graduates’ skills into constructive developers and contributors to local economies.

Founding Kivuli

So in 2017, they founded Kivuli Innovation and Incubation Center to facilitate the mission.

“Together with James Onyango-Abuje, our journey to start Kivuli started in 2017. We were concerned by the high unemployment rate among young people, especially university graduates. We also realized that with the shrinking opportunities for employment, youth needed to be prepared not only as job seekers but also as job creators,” Liza Onyango-Abuje, the startup co-founder and secretary to the board told this publication in a past interview in Kisumu.

Liza during the interview in Kisumu City

The two social entrepreneurs realized that there is power in numbers and strength in coming together to share, collaborate, network and compare notes in a conducive space. Hence, they soon set off to get three other friends and colleagues – Vintolin Oguta, Vanessa Omolo and Prof. Bernard Muok, who shared in their vision and agreed to join the board.

“Two years later, what started as a simple story over a cup of tea finally got registered as a Non-Governmental Organization (NGO) by the NGO Council in September 2019,” Liza says.

The Organization’s short-term plan, she adds, would be to establish a resource center and a following through social media networks that would help contribute ideas on the best way forward.

They would then establish partnerships, enroll members (students and recent graduates) to the center, and provide space to co-work, collaborate, network, innovate, incubate, mentor and organize events that offer professional advice, networking and funding for innovations.

They would then scale-up services before ultimately replicating Kivuli to other counties.

According to Liza, the Organization at present is reaching out to the youth mainly university students and recent graduates through social media, referrals by their peers and most importantly seeking partnerships with institutions of learning locally and abroad.

Among services Kivuli will offer are career development sessions and talks where specialists from different industries will be invited to guide and inspire the members. In addition, the center will have a vibrant mentorship program that matches industry specialists with members of the center.

“The mentorship program will also include visiting local high schools to talk to the students, take questions and offer advice,” Liza explains.

With the vision to have a vibrant, adequately-equipped resource center, Liza adds that the Organization has begun tapping into its international and local networks to help in fundraising, contributing expertise through volunteering and also contributions in kind.

They are also seeking partnerships with like-minded institutions so as to pool resources together to tackle the issues. “In addition, we are responding to calls for proposals. We plan to soon approach the county government (of Kisumu) to seek for assistance towards establishing the center.” Liza says.

“Our efforts will be devoted to fostering the entrepreneurial spirit which we believe is key to dealing with the high rate of unemployment. Talks, training and networking events will be planned regularly to plant the seed of self-employment and job creation in our members,” James says.

The Board wants to set up Kivuli in Kisumu City (above)

This, Liza says, will be supported by their visionary board, composed of individuals with relevant expertise in academics, technology, research, communication, management and administration, who will enable them to establish a new NGO with a unique, new approach to an innovation hub not purely focusing on technology but also other sectors of the economy.

A graduate from Loyola University Chicago with an MSc in Information Systems Management, James who has more than 20 years’ experience in teaching, management and IT having worked in various academic and research institutions in USA, Rwanda, Burundi and Kenya, chairs the board of Kivuli.

Liza, a graduate from Illinois Institute of Technology in Chicago, with an MSc in Marketing Communication and over 10 years’ experience in monitoring and evaluation, communication, project management and entrepreneurship is the board secretary and Vintolin Oguta, an Accountant with over 15 years’ experience in Financial Management having worked in the areas of health, education and community development sector, a CPA (K) and holder of MBA from the University of Nairobi is the Treasurer.

The board also comprises two key advisors, Prof. Benard Muok, Director, Directorate of Research, Innovation and Partnerships and a Professor of Climate Change and Biodiversity Conservation at Jaramogi Oginga Odinga University of Science and Technology, Bondo, Kenya with over 30 years’ experience in natural resources management, climate change adaptation and mitigation, renewable energy, low carbon technology innovation and public policy and, Vanessa Omolo currently pursuing a master’s in information systems and technology at the United States International University – Africa with expertise in Telecommunication Systems, Network Monitoring and Analysis who advice on innovation and incubation and youth engagement respectively.

The board envisions nurturing young academics to become creators and developers in their communities.

They are particularly concerned by the alarming unemployment rate in Kenya, which sadly, is composed of about 80 percent of youths aged between 15-34 years. Moreover, nearly 500,000 – 800,000 youth join the labour market annually in a shrinking economy, worsening the situation.

According to Liza, this is the group that can take the country to the next development level, and we risk lagging behind in terms of meeting our developmental goals as a country if this vibrant group is not employed, she reflects, stating: “It is time for all stakeholders to collaborate and partner to arrest this situation. It is high time youth are prepared not only to be job seekers but job creators as well.”

June 26, 2020 0 comment

Banking Business Covid-19 East Africa

EYWA, NMB Bank and Mastercard Partner to digitize Transport Transaction in Tanzania

by Ben Oduor May 6, 2020

written by Ben Oduor

Mastercard has partnered with transportation solutions provider EYWA and NMB Bank to launch the EYWA Transit Solution in Tanzania.

The product, a mass transportation solution consists of a mobile App and a Transit Card will leverage cashless payments and digital technologies to efficiently transform how millions of commuters are moved daily within and across major cities.

Powered by the Mastercard QR (quick response), EYWA’s mobility management platform technology and NMB Bank’s banking expertise, commuters can now minimize contact during transit and stay safe as they commute. The solution enables commuters to avoid ticket-buying queues; check into the waiting pool of their destination; track the time of arrival of their buses and avoid the jostling and human-to-human contact by scanning their card to board the bus. With the use of their mobile phones (feature or smartphone) and transit cards, commuters can also cut out cash payments and the time wasted waiting for change through the pre-payment feature.

Commercial bus operators on the other hand will be able to view their passenger pool ahead of their arrival at the next station, ensure swift and organized passenger pick-up and be pre-informed on the number of stops per trip making travel time more predictable and efficient. In addition to this, bus operators will also benefit from being included in the financial ecosystem through the digitized payments, creating for themselves distinct financial records needed for securing credit facilities for the expansion of their business or maintenance of their vehicles.

Toffène Kama, CEO of EYWA said that they are committed to making decent mass-transit services accessible for all with a goal of moving millions of Africans daily and safely, at the cost they can afford.

“As the world grapples with the COVID-19 pandemic, we are humbled to be able to launch a solution that will enable commuters in Tanzania transit while being able to stay safe by limiting human-to-human contact. Leveraging Mastercard QR and our unique technology, the solution centralizes the fare collection from a broad range of payment methods, ensuring a convenient, secure and hassle-free cashless experience for both drivers and passengers. We commend the efforts of the Association of Transporters in Dar es Salaam (UWADAR) and others in ensuring their network of drivers optimize this solution in providing better services to their customers”.

Adam Jones, Area Business Head, East Africa, Mastercard, said: “With more people traveling around urban areas for work or leisure, cities are looking to better address the demand across public transit networks. As such, we are proud to have partnered with EYWA and NMB Bank to launch Mastercard QR in the transport sector, an integral part of Tanzania’s economy. With thousands of people using public transport on a daily basis, our digital payment technology integrated into this solution will have a substantial and positive impact on driving inclusive growth, as well as building the digital economy. Also, as people adopt new spending and sanitary behaviors in the light of current realities, this touch-free payment and transport system will enable more people to commute safely and transform the transport system in the country”.

This solution satisfies a growing need for an organized mass transit network that will appeal to all.

To enjoy this service, all passengers need to do is get their free EYWA Transit Card from EYWA agents located at bus stops and top-up through any of their preferred platforms. Commuters will receive information on the next arriving bus on their mobile phones. Smartphone users can also download the EYWA App for an even better user experience.

As the banking partner in this partnership, NMB Bank is no stranger to enabling commercial transport operators join the formal economy using digital payments technology tools. Last year, leveraging Mastercard QR, the bank enabled commercial motorcycle riders (boda-boda riders) to receive payments from customers directly to their NMB bank accounts, introducing them to a safe and secure payment platform that includes them in the financial ecosystem.

Ruth Zaipuna, Acting Managing Director of NMB Bank said: “We are committed to growing Tanzania’s transportation sector and working with partners such as EYWA and Mastercard to introduce a digital solution that will not only promote a cashless society but will also benefit commuters and passengers – and the economy. “Formalization of these payments is a key component of NMB’s drive to enhance financial inclusion among the commuters and the transport sector as a whole. With Mastercard QR, we are providing an efficient means for commuters to receive payments from all MNOs and commercial bank customers that are Mastercard QR enabled. We all understand the obvious security risks that come with handling cash,” said Zaipuna.

This service will be available at all bus stations nationwide in Tanzania, starting with Dar es Salaam. Mastercard and EYWA plan to expand to other markets across East Africa, enabling more people to enjoy smooth and seamless digital transit services in the coming months.

May 6, 2020 0 comment

Hospitality

Inspectorate body clears Everest Park Estate over safety concerns

by Ben Oduor November 13, 2019

written by Ben Oduor

The Estate’s two affected blocks in phase One of the Athi River-based project are fully repaired and occupied

By EABT

Safety concerns raised on two buildings in Phase One of Everest Park Estate have been satisfactorily addressed. This follows a decision by the National Building Inspectorate (NBI) to give a clean bill of health to the recent repairs of structural defects in the two buildings.

“Following an inspection of blocks 2B and 2F, on 23^rd September 2019, we now confirm that the safety concerns raised at Everest Park has been satisfactorily addressed,” said Secretary and CEO, Moses A. Nyakiongora, in a letter addressed to the project architect, H.M Gatai of Gem Archplans.

The NBI raised safety concerns with the two blocks (2B and 2F) in Athi River’s Everest Park Estate Phase one in preliminary audit report it released in January 2018.

Everest Park Phase One, which was funded by Pan African mortgage financier Shelter Afrique, comprises 240 0ne- to three bedroom apartments in the Mavoko area of Athi River. The estate has 120 acre bedroom units sold for Ksh2.6 million each, 60 two-bedroom units priced at Ksh4.6 million each and 60 three bedroom units sold for Ksh5.5 million each.

Everest Park Phase two comprises 200 tastefully built 60 one-bedroom units selling at Ksh2.95 million each, 100 two-bedroom units selling at Ksh4.95 million each and 40 three-bedroom units selling at Ksh6.5million each.

Everest Park Estate is a gated community development strategically located on Mombasa road after the Athi River interchange, a walking distance from several shopping malls and Athi River town.

November 13, 2019 0 comment

Insurance Leadership

The game changer

by Ben Oduor October 24, 2019

written by Ben Oduor

If you’re planning to invest in East Africa’s insurance market, you’ve got to have an insightful strategic plan, be resilient, tech-savvy and innovative. The market is attractive but murky and highly competitive.

Analysts point to an operating environment that has only become more competitive, with premium rates revised downwards in the more competitive business classes.

According to the 2019/2020 East Africa insurance outlook by Deloitte, suboptimal investment returns on property and equity markets, which have been used as a safety net to compensate for underwriting losses, have further driven down the fortunes of insurance companies. Furthermore, the report says, the pace at which disruptive technologies have been taken up by incumbents and the entrance of non-traditional insurers in the market, is slower than expected.

Interestingly, customers are becoming more enlightened, aware of their insurance needs, and are increasingly being skeptical of what insurers have to offer them. Over the course of three years beginning 2017, Kenya’s insurance industry has become a tough tide to pierce through. Insurance firms’ profits dropped to 61 per cent in 2018, to $33.7 million from $87.7 million recorded in 2017.

To survive in the region’s multi-billion shilling industry, including Kenya’s- which is estimated at over Ksh200 billion in total premiums, by the 2017 Association of Kenya Insurers (AKI) report, the more than 50 licensed insurance firms have had to take steps to modify their products and service offering to be in line with customer purchasing power.

Vijay Srivastava (Centre, seated), poses with a section of GA Insurance staff

However, quite a number of these firms offer almost similar products, with fire, medical, motor and a handful of non-life insurance covers, which are more risk-prone, being priority. The move saw a non-life business post the biggest loss of 26.6 million in 2018, compared with $9.5 million recorded in 2017, with the motor sector leading in losses- at $25.7million.

GA’s approach

To avert such setbacks, GA insurance, one of Kenya’s oldest insurance companies, developed a disruptive strategy that has seen its performance improve ten-fold in the last decade. The company came up with a plan that ensures it doesn’t depend on one line of business.

According to the firm’s Group Chief Executive and Principal Officer, Vijay Srivastava, GA Insurance strength lies in its healthy product/portfolio mix. Due to the fact that the more the claims, the lesser the profits in conventional insurance, GA has spread its arms on all its lines of business, unlike most companies that focus on a specific line of business, such as fire, medical or motor.

This gives the company leeway when it has to settle claims for other risk-prone businesses, a move that ultimately balances the risks and recoup returns to the business.

“A number of companies do not have a very healthy portfolio mix. A competitor could be very heavy in medical (insurance coverage), probably ranking more than 60 per cent. Another could be very strong on motor insurance. But they are behind us in the number of lines of business. At GA, we’re not dependent on only one line of business,” the CEO says.

“Also, these two lines of business (medical and motor) are very less prone. Hence, if you’re very high in them, chances are you’ll incur losses. The balance in business is what helps GA compete in the market.”

The strategy has enabled the company to improve its ranking at a time the industry faces financial storms. The firm jumped from position nine in 2017 to six in 2018. Its profitability curve also pushed it to second position overall.

During the year (2018), GA recorded Ksh6 billion in gross written premium income from Ksh5.6 billion in 2017. Its subsidiary, GA Life Assurance, also led in long-term insurance business by settling 772 claims out of 773, a record 99.9 per cent settlement rate, according to 2018 statistics from the industry regulator, Insurance Regulatory Authority (IRA). Furthermore, group investments increased by 20 per cent, from Ksh12.1billion in 2017 to Ksh14.6billion in 2018.

With a product portfolio ranging from all classes of general and medical insurance, including motor, fire, accident, engineering, marine and aviation, domestic insurance and political violence and terrorism, among others, GA dug into a rare class of insurance- the golfers and pet insurance covers, which target risks in golfing and for any animal kept not for economic gain but for the owners’ comfort, respectively.

GA, Srivastava explains, has been the biggest underwriter for fire insurance over the last couple of years, with the product emerging as the most profitable over the other lines of business.

The firm is also among the leading in marine cargo business, a class that now has a new legislation requiring all imports to have a valid marine insurance cover underwritten by a Kenyan registered insurance company before clearance by the Customs Authority.

This now makes it easier for importers to lodge claims with Kenyan insurers, such as GA, as opposed to the cumbersome procedure of lodging insurance claims with foreign insurers for lost or damaged goods.

Being an industry now governed through risk-based supervision, a shift from the traditional compliance-based approach, meaning regulators now access the risk of individual entities and, by collating the resulting view of these entities, can judge the systematic risk to the wider economy, insurers have had to adjust their premium rates to be at par with client preferences.

Sachit Shah (Centre), an Executive Director at GA Insurance, Vijay Srivastava, the firm’s Group CEO and the incoming CEO for GA Kenya, Sandip Bhadury at a recent event

The flexible approach, having succeeded in regulating insurance industries in the developed world, has seen some local insurance companies reduce their rates to attract more customers, a move that at times backfires when the industry experiences untold shocks.

For GA, Srivastava candidly says: “If one line of business is loss prone, the only way to balance is to keep the premiums appropriate. We (GA) do not compromise on our premium rate. The rate remains competitive, but not very low. So what substitutes this better premium rate is our services.”

Growing GA insurance

It is such consistency in service delivery that has mirrored GA’s growth during the more than 60 years it’s been existent. Prior to its inception, the company was run by Europeans under the name General Accident UK.

The Europeans would later in the 70s exit the country, transferring ownership to Kenyan shareholders, who renamed the company General Accident Insurance of Kenya Limited.

But the major turnaround was in 2006, when the company was acquired by majority shareholder I&M Group, a conglomerate with tentacles in Kenya, Tanzania, Rwanda and Mauritius, with business interests in coke bottling, manufacturing industry and real estate.

“It used to be a small company prior to 2007. After the new ownership, many things changed in the company. There was new management, and since, there’s been handsome growth yearly, by almost double the market average,” says Srivastava, who was hired by the company in 2007 to drive its growth trajectory.

In 2009, the company was rebranded from General Accident Insurance of Kenya Limited to GA Insurance; the new status adopting a fresh logo and new corporate colours, in a move intended to streamline it to the regional expansion strategy.

The company would later in October 2013 extend its roots to Tanzania, incorporating GA Insurance Tanzania Ltd, which started operations officially in 2014 with an objective to cover ‘private, commercial and industrial segments’ of the economy. In June 2013, the firm launched yet another subsidiary, GA Life Assurance Limited’, to operate independent of GA insurance, offering Life insurance and Retirement Benefits solutions.

Strategic leadership for regional expansion

In Uganda, the company is in its final stages of acquiring a small insurance company named Nova Insurance. This will make GA be part of the slightly more than 25 companies driving the nascent industry, whose insurance penetration is a paltry 1 per cent, according to estimates by the Financial Sector Deepening (fsd-Uganda).

“We have already received regulator’s approval, fully bought the company and we’re just working on few documentation before we start operations. There’s also another acquisition in the pipeline. So by the end of this year, we will be (present) in between three to four countries in the region,” Srivastava says.

To drive the company through its regional expansion curve, GA Insurance undertook a management shake-up, promoting Srivastava to be the firm’s Group Chief Executive. A new CEO has been appointed to steer the Kenyan unit.

According to Srivastava, with the rapid technological innovation, the company is set to launch a document management software that will help handle huge volumes of data and information for its general and medical insurance. The company also balances its staff, with a majority of youthful employees who are tech-savvy.

For the industry, awareness on insurance is still scant in the region’s grassroots. Insurance is not as prioritized as in the developed world, save for medical and motor insurance that are almost mandatory. Srivastava advises that the industry should empower brokers and agents more so they can reach more people with information regarding insurance.

“It is the industry’s duty to train more agents so that they can go and create more awareness to the customers. The third parties should also be educated enough, to give detailed information to the customer so that they properly understand what they’re being covered for and avoid confusion when they’re coming for their claims,” the CEO says.

About Vijay Srivastava, the expatriate CEO

Now GA Insurance Group Chief Executive, Vijay Srivastava’s professional journey before and after joining the company has been ecstatic. A qualified insurance professional, Srivastava joined the company in 2007 as Chief Executive Officer and Principal Officer, with the mandate to oversee all the operations of the company.

With a vast experience in marketing, technical knowledge and managerial skills spanning over 30 years in various managerial positions, horned while working for companies in India, Tanzania and Kenya, the CEO has overseen GA go through various transformative phases, including rebranding.

Armed with a post-graduate in Physics and Associate of Insurance Institute of India, the Group CEO is now expected to lead GA into new markets, whilst supporting the growth of already established subsidiaries.

October 24, 2019 1 comment

News

The gradually straining relationship between former and current Angolan presidents

by Ben Oduor September 3, 2019

written by Ben Oduor

By Ben Oduor and Agencies

After serving Angola for close to 40 years (1979 to 2017), former Angolan President Jose Eduardo Dos Santos seems to be living a life not too royal as expected of notable retired African presidents.

The 77 year-old opted not to run for the 2017 elections, leaving the reigns to Joao Laurenco, a former Minister of Defence (from 2014 to 2017). And after taking over as President, Laurenco promised to tackle corruption, which had for some time crippled the oil rich nation.

The former President’s son, Jose Filomeno Dos Santos, would late 2018 be arrested, with a raft of allegations behind his name, including formation of a criminal organization, illegal enrichment, money laundering and corruption, according to the Angolan prosecutor.

Media reports also reveal that Zenu, as Jose Filomeno is known in the country, is also being investigated by the authorities on whether overseas transfers of $500million were lawful, as instructed by President dos Santos during his time as Chairman of the Fundo Soberano de Angola (FSDEA), the country’s sovereign wealth fund.

Over three years ago, sources disclose that Mr Filomeno was positioned as a possible successor to his father as president, but this did not materialize as Joao Laurenco, on September 26^th 2017, took over as President of Angola, as well as President of MPLA (People’s Movement for the Liberation of Angola), the country’s dominant and independence party.

Laurneco has since taken the war to the doorsteps of Angola’s once predominant vices nepotism, corruption and personality cults, and replaced a number of governors, ministers and senior state officials.

But the most shocking move was dismissal of former president’s first born daughter, Isabel dos Santos, as head of state oil company, Sonangol. This was followed by termination of several contracts the Angolan state had with the dos Santos clan. However, Isabel remains Africa’s richest woman, according to latest Forbes ranking on wealth, her wealth estimated at USD2.1 billion as of 2019.

An anonymous observer of Angolan political affairs while commenting on an article published by the African Report in August this year revealed that the relations between the current Angolan President Joao Laurenco and his predecessor, complicated even before the handover, was now at an impasse: “They have not spoken since last April, and Jose Eduardo dos Santos left for Spain.”

The former head of state reportedly refused to use the Angolan airline, TAAG or use the protocol service associated with his status to make the trip, suggesting he no longer trusted the state to ensure his safety.

“The incident caused embarrassment at the presidential palace. Laurenco even visited his predecessor to convince him to change his mind. It was a waste of time. Dos Santos flew to Barcelona on the Portuguese carrier, TAP,” notes the African Report.

Mid June, Isabel, the president’s daughter, reportedly published photos on Instagram of his father playing cards with his grandchildren while sitting on a sofa in the living room, while in Barcelona. The once powerful president, despite being out apparently in exile, appears to be having fun, but the family and clan hangs on a tightrope.

So far, quite a number of his family members have left Angola. Few months after the ex-presidnt’s departure to Europe, two of his daughters- Isabel and Welwitschia, are said to have joined him. Their half-brother, Jose Eduardo Paulino, is also said to have joined the family afterwards.

And now, only Jose Filomeno remains in Luanda, as he cannot leave the country due to legal proceedings.

It now remains to be seen how relations between the former first family, that has become fierce opponents of President Joao’s regime, will be settled

September 3, 2019 0 comment