Meet the Boss

Despite a growing demand for transport services, Kenya’s road freight still faces a myriad of challenges leading to poor truck turn-around times that hinder the on-time delivery of goods to many consumers.

As the African continent accelerates the implementation of digitalisation, industries such as mining, manufacturing, and logistics are making huge strides to progress the continent.

Saloodo! a subsidiary of DHL has also contributed to this progression of digitization by launching a digital road freight platform called Saloodo!.

The platform provides shippers with the opportunity to seamlessly connect with carriers for domestic and international trucking needs while allowing carriers to efficiently identify loads and increase the utilisation levels of their fleet to generate extra income.

Tobias Maier CEO of Saloodo! shares insights into the firm’s plan in improving customers’ experience in the Kenya and Africa freight sector.

What sets Saloodo! apart from other digitized freight platform in terms of value, security and efficiency?

Saloodo! offers a transparent and efficient digital platform that gives shippers access to a pool of reliable carriers in Kenya to cater to their on-demand shipments. Furthermore, the platform will enable carriers to better manage their fleets and optimise the capacity of their Full Truck Load (FTL) shipments. Our competitive edge lies in the unique combination of a smart, swift, and reliable digital offering with our extensive logistics expertise, transparency, and broad footprint under the DHL brand. 

Saloodo! provides visibility and security that has been lacking in traditionally-run operations, especially in Africa. We vet all carriers strictly to ensure our customers’ cargo is safe and secure. Carriers also have to be covered by the required environmental and comprehensive insurances. The bidding function on Saloodo! ensures the most economical pricing; and we have just launched a new feature allowing our carriers to submit their offers directly on WhatsApp.  Saloodo! connects users on an end-to-end platform that empowers them to handle transport bookings without any additional administration costs.

• How would you describe the transport and logistics industry in Africa? More specifically the road freight operations. What is the market value for road freight volumes in Kenya?

Africa has always been a key market for DHL – evident from our longstanding presence in the market. Specific to plans for our digital road freight platform, Saloodo!, we aim to connect extensively with local shippers and carriers, because we are convinced that digitalization helps to facilitate trade not just within the country, but will equally drive activities in the greater continental region. To this end, it is imperative that we actively push to accelerate digitalization to propel business growth for our customers.

In parallel with expanding this solution across many African markets, we ultimately plan to connect the dots and create a strong road freight network across the entire African continent. One of our aspirations is to one day, establish regular road freight connections between Tanger, Durban and Cairo.

• How is demand in the freight logistics space like in Kenya?  What has driven this demand? Where do you see the maximum demand coming from, in terms of industries and countries?

Several factors are in play to maintain a stable demand for freight and related services. First of all, the Kenyan government’s efforts to attract more foreign investment is paying off, especially with lowered levies as well as increased integration of the regional bloc which is expected to boost intra-African trade by 52.3% by 2022.  Another factor is the continued importance of the Mombasa Port (Africa’s fifth-busiest port) as the main trade gateway for the Eastern Africa region connecting Kenya with seven neighbours (such as Uganda, Somalia, Rwanda and South Sudan) and road freight is a key component of last-mile deliveries. While the pandemic continues to take hold of global economies, we are seeing a slow rebound of Kenya’s perishables and horticulture produce to the region and globally.

Against the backdrop of these positive prospects, Saloodo! is an industry agnostic solution that has allowed us to offer our customers truly a one-stop-digital-shop for all their trucking needs. We have continuously worked towards realising our vision of a world in which logistics is smart and digitalised, and this has inspired us to bring our innovative solution to life. With Saloodo!, we have been able to increase our network of shippers and carriers, and provide a solution that emphasises customer experience.  We work closely with our stakeholders and partners to outline plans that will ensure minimum disruption to the business and maximum demand.

• How effective have technology platforms like Saloodo! been to the industry? Kindly explain some of the economic and social impacts that Saloodo! will contribute?

The trucking industry still offers significant room for improvement. According to the World Economic Forum, up to 50% of all trucks on the roads travel empty on return journeys and utilization levels of the trucks loaded typically range from 50%-70%. In a best case scenario however, the industry is probably utilizing 50% of available capacity at the moment.

Our goal at Saloodo! is to push this utilization level across the industry up by making better use of available assets and resources. This will mean more income for truck drivers, less traffic, less carbon emissions – a triple win for shippers, carriers and the entire society. 

As the world’s youngest continent with 60 percent of the population below the age of 25, Africa’s economic decisions and growth paths are increasingly driven by a dynamic generation of digitally-minded young adults. These are ideal conditions for offering and further developing our smart solution in the business context. Kenya is an important driver of the logistics and technology sectors in the greater continental region as we have seen with the upgrade of railway, seaports, airports, and the development of geothermal power stations.

• What is the state of the logistics and transport industry in Kenya and how is it different compared to other countries in the region?

Kenya has seen its fair share of road freight-related challenges like many countries in Africa. These include poor truck turn-around times attributed to poor cargo off-take and delivery infrastructure, cargo pick up delays after it is released at the port, and high frequency of stops taken along the Northern Corridor. These challenges are similar to many countries in the region.

However, Africa as a whole has proven itself ahead of the curve in many respects, with countless opportunities lying just beneath the surface. For logistics operators, Africa is the land of opportunity. It covers 20% of the world’s land area, has 1.3 billion people, a huge market potential and a dire need for an efficient logistics ecosystem.

Yes, the continent’s infrastructure is not as well established as more developed parts of the world. Nonetheless, we have seen investments in Africa that have made a difference to the infrastructure, we are confident of the growth prospects and remain committed to investing ahead of the curve.

• What is the current number of active users on your platform in the East African region your platform has been able to capture? Shippers, trucks & Carriers.

The service has grown to encompass more than 30,000 shippers and over 12,000 carriers covering more than 50 countries since 2017. During this time, the trucks managed by Saloodo have travelled a total distance of more than 25 million kilometers, which is equivalent to over 630 trips around the earth and 35 voyages to the moon and back.

• In the light of the Corona Pandemic, how has it affected your operations globally, what measures is Saloodo! deploying to meet its targets?

Like almost every other industry around the world, border restrictions have impacted the logistics industry significantly. To mitigate any fallout however, the industry has stepped up its efforts to respond to the pandemic efficiently by looking at various alternative solutions and offerings. Ever more so than before, businesses have to focus on maintaining trade, especially to ensure that essential goods and services can continue to reach their end destinations such as the transportation of Personal Protective Equipment (PPE) as well as fresh produce. It is against this backdrop that we ensure the platform remains freely available to them 24/7 so both transport providers and shippers can gain access to the marketplace to meet their freight needs. 

• Times of crisis have historically also been opportunities for change. Are you optimistic that as we emerge from this, it could be a chance to create a better economy?

Winston Churchill’s famous quote “Never let a good crisis go to waste” is currently as relevant as ever. Clearly taken out of context since we are not at war in the traditional sense! But firstly, it was great to see that despite all the challenges we have been experiencing across the world, the supply chains kept going at all times. While we could not assess the full economic impact of the pandemic, the silver lining is evident in the pace of innovation and digital transformation as companies evolve and adapt to remain relevant. It is almost inevitable that this transformation is accelerating in the logistics sector where we are seeing a huge push. This is especially so at Deutsche Post DHL Group which Saloodo! is a part of, as we have embarked on our digitalization for several years now and made it the core element of our Strategy 2025 – “Delivering Excellence in a digital world”. Now, many people realize that a lot can be organized online in a smooth way whilst not taking any risk to get infected. Other trends we have seen during the crisis, for example an increase in working from home will change our working lives beyond the current pandemic.

• Aside from the pandemic, were there other uncertainties that Saloodo! has encountered prior to establishing operations in the African region? How did you sail through from such challenges?

Connectivity and data costs are one of the biggest challenges that users may experience but we see that the situation is gradually improving as digital tools are embedded into every aspects of our lives, from homes to industrial systems.

Where do you envision Saloodo! in the next few years? What are your plans for the kenyan market?

Under the DPDHL Group’s Strategy 2025 that focuses on our core offerings and delivering excellence in the digital world, we have committed to invest €2 billion into digitalisation projects over the next five years. Digital transformation is a top priority for the industry and this push for digitalisation is in line with the Group’s purpose to connect people and improve their lives by enabling trade and helping businesses to grow.

The platform has provided reliability and efficiency to businesses and it will help open up the African market including Kenya for organisations to capitalise on local opportunities. We are continuously thinking about optimisation features that will simplify the job of shippers and are constantly in dialogue with our carriers to find out what we can do to make the platform more compelling from them and all parties involved. We want to establish Saloodo! as the brand for digital trucking across Africa with Kenya being a key market and pillar in our footprint.

Subhash Patel, the Founder and Group Managing Director of Motisun Group is not the flashy loud-mouthed Executive. In fact, he avoids the limelight. Yet he deserves it. In the last 22 years, Subhash Patel, a self-effacing man of simple habits, but with a long-term vision has built Motisun Group into a multimillion-dollar business that straddles the Tanzanian manufacturing sector like a colossus.

Humble beginnings

The story of Motisun Group is similar to a number of Tanzania’s leading multinational companies. Its history can be traced back 80 years when Subhash’s father started a small shop in a village called Lugoba.

“I started my entrepreneurial life as a shopkeeper in my father’s shop and later on as a trader selling spices. In 1976, I decided to try my hand at the automobile business and started my spare parts business. As the business picked up, I went on to open my own garage in 1977.”

In the early 1990s, as Tanzania slowly emerged from a socialist economy that was not friendly to investment, Subhash took the opportunity of the improved business environment to invest in a small Steel Mill in 1994.

Since then, Subhash has gone on to build a business empire that not only is the largest manufacturer of steel sheeting and pipes, but also rubber, paint and fizzy drinks. It also runs one of the finest hotel and resort chains in Tanzania under the Sea Cliff and White Sands brand names. The single thread that binds all these businesses is quality, service and value.

So, how did Motisun Group grow from a retail shop into the undisputed steel manufacturer in east and central Africa?

Subhash says that one of the company’s strategies has been to establish facilities in what are essentially nascent and ripe markets.

Since establishing the first Steel manufacturing plant in Tanzania, the company has continued to expand throughout the region. In early 2011, it invested in a US$ 50 million state-of-the art facility with a processing capacity of 150 tons of steel a day in Zambia.

With a cold rolling mill processing 5000 tons of steel a month and new galvanizing line, the Zambian factory is capable of producing 48000 tons per annum to serve the local market in addition to exporting to the east African and SADC regions.

A year later, the company went down into Uganda investing in as US$60 million steel coating manufacturing plant, the first of its kind in the country. The plant produces galvanized coils for the manufacturer of roofing sheets, color and coated coils.

Subhash does not stop here; he has spotted an opportunity in the fast developing economy of Mozambique and its requirement for steel to develop its infrastructure and residential housing needs. A modern new steel plant in Nacala, Mozambique operations ramp up. Quick deployment, employing the best technology, training of the workforce, an able and responsive management have all played a role in laying a solid foundation for future business expansion and growth.

Diversification

Motisun Group has set its vision far and wide. In its efforts to diversify, Motisun Group has kept sight of the need to bring innovation and value to the markets in which it seeks to enter and currently operates. This vision cannot be better seen than in the hospitality sector where it has made a palpable difference.

Pearlsun Hotels, a subsidiary of Motisun Group owns and operates some of the finest beach resorts and hotels in Tanzania and has plans to grow beyond its borders. These getaways offer an experience that is truly unique. The beaches are spotless, and natural setting, breathtaking and a customer service that is par excellence.

In the fast moving consumable goods business, Motisun Group through its company Sayona drinks limited produces carbonated soft drinks, ready to drink juices and packaged drinking water under the brands – twist and Sayona. These brands hold their own against multinationals of likes of coca cola and Pepsi and have their own against multinationals of the likes of Coca Cola and Pepsi and have their own loyal set of consumers. New flavor introductions, and slick marketing have gained it new converts to its growing consumer base.

Kiboko plastics under Motisun Group is also one of the largest manufacturers of PVC and HDPE pipes, water tanks and fittings for water management, irrigation, water distribution and sewage disposal systems in the country. The products are sold and distributed through a nationwide dealership network as well as exported to adjoining countries.

Kiboko paints, another company under Motisun Group is counted among the leading paint manufacturers in the country. In the span of 7 years, Kiboko paints has become a household name in Tanzania offering a quality and yet cost effective solution for every painting need.

Motisun Group, has a sizeable presence in real estate and is extending its reach in other business sectors such as cement and mining to offer a complete array of products for the East African economy.

More than a company

Through its operation in the four countries in east and central Africa- Tanzania, Zambia, Mozambique and Uganda- MMI Steel, a Motisun Group company, provides both direct and indirect employment for more than 6000 people. One of the contributing factors to the Group’s success, according to Subhash, has been the fact that the Groups employees not only view the company as the source of their income, but their home.

“Over the years we have focused on providing training to our employees rather than going for experience.” He adds that at least 95 per cent of employees have been trained in-house.

“When employees are trained in-house, they are more passionate about the firm and stay with us for long, which is a win-win situation.” Apart from training, the employees also enjoy other benefits such as medical and counselling services, breakfast and lunch.

Trying it all together is the Motisun Group’s vision and mission and that places a premium on quality, service and value. It has been the standard bearer for the company’s employees in focusing their efforts in creating a better experience for their customers be it in product or service.

East and central Africa

Over the years, there has been a strong conviction that the region’s economy is on the rise, but Subhash says that there is need for significant investment infrastructure. “It is expensive to set up ventures in most countries in the region. Infrastructure and tedious red tape prove a challenge for investors.”

In order to change the equation, Subhash advices that governments create enabling policies for investors. He gives an example of its Zambian entry. “Initially, the government was skeptical, but when we started business, they saw what we were bringing in and they welcomed us.” He advises investors to find innovative ways of overcoming the challenges.

Future plans

Mr. Subhash says Motisun has already been issued with mining rights for iron and coal. “We are currently on the exploration stage and we will soon start mining.” He adds that he is also looking at venturing into cement production.

“Cement production in this country has very good prospects. The real estate industry is also experiencing some vibrant activity.” With the discovery of oil and gas in Tanzania, he is not ruling out the possibilities of venturing into that sector. “We have not thought about investing in that field yet. However, there are a lot of things we could do in that sector. For instance, with our expertise we could produce gas cylinders, but when the right time comes, we will explore all options.”

Entry into a business is always done after a due diligence of the fit between our competencies, market needs and business potential.

Beyond Motisun

Motisun Group has given a corporate social responsibility a high priority. Being a good corporate citizen gives Motisun Group, a high social standing amongst the local populace for the many works done to uplift and alleviate their hardships.

Subhash Patel is well known and loved for his charity and philanthropy. Subhash also sits on the board of Bagamoyo district fund, which has helped build schools, hospitals, dug boreholes and even churches for the local community. Most importantly, he is a religious leader and often leads prayers at his local temple in Dar-es-Salaam.

The creative industry in Kenya, be it; media, advertising or marketing, tries to pull in audiences for brands. Part of this could be the reason global marketing companies, including Scangroup and WPP, seek for affiliations with local advertising companies to make deeper market inroads. And such is the vibrancy the industry has presented in the local market.

For instance, Safaricom, spent Kshs 9.71 billion in the first four months of 2019 on advertising, making it the largest advertising spender in the country, according to the Media Landscape Report.

It is from such huge financial/economic output that critics have come out claiming that players seeking to enter this field are pushed by the urge to make profits rather than from their professional merit. 

Dr. Jared Obuya, a lecturer at the Department of Communications Studies, Moi University’s Nairobi campus tells this publication that this shouldn’t be the case, and that when it comes to the issue of professionalism, every profession should have some sort of standards.

“This is so that there is uniformity in the sector. Minimum standards are really necessary in every profession. It is about setting standards for monetary compliance, which includes training and codes of conducts,” the lecturer says.

One man, Saadam Suleim, has always had a passion in this multi-million dollar industry. And immediately he left high school (Muslim Academy) in 2008 he plunged into the murky waters, founding Dragonfly, a marking company, alongside his friend, Zachary Ouma.

Ouma was before then Head of Digital at Creative Edge, and Suleiman knew at first sight he would be his best business match. 

“I had this passion in marketing. A close friend of mine introduced me to graphic design and I started selling this service to my family and friends, such as doing branded polo shirts,” Suleiman says during the interview at their office, located at Empress Suites, opposite the Oval, in Westlands Nairobi.

Ouma, he says, was not only very innovative when it comes to web-based content, but also complemented his vision- that of creating a big market for Kenyan Small and Medium Enterprises (SME’s). And Dragonfly could offer them good quality, as this was a niche at the time ignored by global affiliates.

“Upto this date, we are proud to service Kenyan SME’s. Majority of our clients are Kenyans, though we are open to blue-chip companies. ” says Suleiman, who was just recently listed among ‘Forbes Top 30 Under 30’ leading African entrepreneurs. 

The company’s clients range from corporates, real estate companies to agricultural firms, including Optiven Limited, Dairyland, DIB Bank, Hanaan Tissues and Kericho Gold tea, among others. It offers integrated, independent, end-to-end marketing solutions to these companies.

From a company that started off offering web-based services, Dragonfly has become a full-fledged advertising agency.

According to Isaac Kivai, the firm’s Finance Officer, they now offer a variety of services, including brand strategy, digital marketing and experiential marketing, which deals with on-ground brand activations for clients as well as design and branding and app development. The scale-up is setting its future sights on Machine Learning and Artificial Intelligence (AI).

However, he says, their operations, just like in any other business, gets affected by business cycles.

“When business is not good for clients, the marketing spend affects our work and even our income. It is purely based on how the economy is. We always look for the economy to be promising,” he says.

He adds that their pricing strategy for services, which is tailor-made as opposed to a one-cut-fits-all formula, gives them an edge in the market, in addition to the fact that they take into consideration that some of their clients are SME’s who require quality services that are well-priced within their budgets.

To reach their target market, the company leverages on social media and digital platforms to tap their clients. 

On his part, Ouma says Dragonfly tries to focus on giving its clients quality instead of quantity. This means everything is crafted to be at-par with industry standards. Values such as professionalism and being hands-on in whatever project that the agency undertakes. This has made Dragonfly to move from an agency that sought for clients to being sought for instead.

Of the many campaigns the company has undertaken for its clients, Suleiman singles out ‘Unga wa Dolla’, which they undertook in 2007, targeting the youth in a bid to promote their talent and express peace through the website and art. The campaign was among the top three brands that earned global recognition.

Dragonfly, Ouma says, focuses on experience rather than papers. “When it comes to recruitment, the agency tries to look at the skillset, experience as well as the personality. We have developed a culture, whereby we consider our family members as first priority.” 

 From two employees at inception, the company currently has 33 regular employees and project-based merchandisers outsourced externally as well as others across the region. The staff’s dedication is partly the reason the company was ranked 8th and the only independent agency in the top ten list of companies to win the APA award.

It has also won a number of awards, including being in the Gold category in the MUSE  Awards, the African Crystall Awards and Gold for the ‘Art for Peace Campaign’. This year, the company won the Digital Media Awards (DMA) for its Dairyland Ice cream client.

In terms of innovation, Dragonfly is also the first advertising agency to do full colour packaging for its Unga wa Dolla brand, thus coining its name as the first to so in the competitive industry.

“We have changed the narrative of how flour should be conceived. Five years ago, flour was just flour. But we have changed that to how flour is connected in the mind of the consumer,” says Suleiman.

Despite common challenges, the company has kept up with innovations, and is now looking to expand its footprint from Kenya to other East African countries such as Rwanda.

Suleiman advises budding entrepreneurs wishing to venture into his field to embrace patience and persistence instead of seeking for instant gratifications.

“But the future also includes having to tap into youth who have a skillset in AI, machine learning and data integration. This is because there is a paradigm shift in how consumers consume information because with a touch of a button, one can do about ten things at a go,” adds Ouma.

It has taken good leadership and bold steps to transform Kenya into an attractive global brand.

By Ben Oduor

Corporate expatriates Alan Branche and Sam Bodley Scott were apparently talking straight to Mary Luseka, the Chief Executive Officer (CEO) of Brand Kenya Board, when they said: “Strategy execution is the responsibility that makes or breaks executives.”

And to Luseka, she made promise to execute strategy well enough to the benefit of her career, employer and clients.

That call she received at the beginning of 2016, was either going to be a punch-line to her career journey or a dream lost if she assumed it.

The caller on the other end, as it appeared, wasn’t that ordinary contact person on her phonebook, but the Principal Secretary (PS) in the Ministry of Tourism, Hon Fatuma Hirsi.

The PS had called to convey the Ministry’s decision to move her from Kenya Tourism Board (KTB) to Brand Kenya Board (BKB) to become CEO in acting capacity for a period of six months.

This was after reviewing her capability, qualifications and history of performance, and was fully convinced she was the right person to market Kenya to her citizens and the rest of the world as the most preferred Tourism, Trade and Investment destination.

“I had been undertaking a training session on the New Public Procurement Act 2015 when I received the phone call asking of my interest in the job,” says Luseka, who was gearing up for a challenging task ahead.

BKB, a state corporation established in March 2008 through the Brand Kenya Board order pursuant to the State Corporations Act (CAP. 446) aims to establish a brand for Kenya, which positions her optimally in terms of investment, creditworthiness, tourism and international relations.

The body also unites Kenyans and provides them with positive information about the country in a bid to promote patriotism and national pride, and establishes an integrated approach within government and private sector towards international marketing of Kenya.

Further, the board sets to build national support for the brand within the country with the cooperation of government, non-government organizations and the private sector, and to promote local products and services to encourage economic transformation, among other key functions.

Unfortunately, when Luseka came into the board, funding staggered at the limits of about Sh20million annually, staff was small and there were few structures to drive the country’s image to its target bases, making it difficult to undertake its mandate.

“I immediately realized that in order for the institution’s transformation agenda to commence, there was need to prioritize addressing the human capital and the budget constraints it was facing. I am glad that government has demonstrated its full commitment and support,” says Luseka.

Building the Kenya brand

Going forward, the CEO says, they focused on attaining visibility for the country’s brand, mainstreaming branding across Public Service sector and took on the leadership role in a bid to define and shape Kenya’s narrative.

Making Kenya visible, she explains, meant being at the forefront with key issues affecting her and the people, implementing programs and piggy-backing on prospective events that would build the country’s brand.

“With the limited finances, we thought the best way to market the country was to piggy-back on strategic events. We would draft proposals to the National Treasury on how Brand Kenya would position the country as the preferred place in Africa for Tourism Trade and Investment to all delegates coming in for the strategic events,” she says.

And it worked. When Kenya hosted Tokyo International Conference on Africa Development (TICAD VI) in August 2016, arguably one of the greatest conferences of all times to be held in the capital Nairobi, the board was supported to play her branding role so as to showcase a uniform Kenya brand.

The East African country had been selected to host the TICAD fete on behalf of African Union, bringing as many as 30 heads of state and government to take part in the deliberations, with a colorful opening ceremony officiated by Japan Prime Minister Shinzo Abe.

Kenya had now positioned herself well before the world as an attractive Tourism, Trade and Investment destination after it hosted United Nations Conference on Trade and Development (UNCTAD) on July 2016, in which the board fully participated in enshrining the opportunities the brand offers to the delegates.

The Board’s next most critical task, the CEO says, was to begin to mainstream branding within public service and thereafter beyond.  This mainstreaming was intended to ensure that all agencies that play a role in defining and shaping the Kenya brand become active players and therefore brand ambassadors.

The Board has also initiated the mantra, ‘Be, say, do’ to define the nation branding process, a move that has ensured that ‘who Kenya is and her promise to the world is well defined and effectively communicated, enabling her to live up to that promise through actual delivery.’

To this effect, the Public Service Branding Guidelines have been developed and once they are approved, they will be distributed to all Ministries, Departments and Agencies (MDA’s) and the Board will guide their implementation to ensure brand harmonization in the public sector.

“We are not a physical branding company. We are much bigger than that. We define and shape narrative on Kenya. Therefore, there’s no way we were going to succeed if we only focused on branding banners or give aways, a job more familiar to physical branding firms,” she says.

Cognisant of some of these measures put in place to build the brand, Kenya has since received numerous accolades including at the World Travel Awards 2016 gala ceremony held at Diamonds La Gemma dell’Est resort in Zanzibar in April where the Maasai Mara was voted Africa’s best national park, Diani Beach the leading beach destination and Nairobi the best for meetings and conference destinations.

Also, national carrier Kenya Airways was accorded Africa’s leading airline and leading airline in business class, as Kenya Tourism Board was enlisted as continent’s best tourism board.

Kenya’s investment climate, on the other hand, got fresh breath after it improved 21 places up World Bank 2017 ease of doing business index, making the country one of the best investment markets in the continent, among other accolades.

Impressed by the leaps the country has taken in recent years and the role stakeholders have played in the achievements, Luseka, on her part credits the immediate former employer, Kenya Tourism Board (KTB) partly for her latest success.

Reclaiming tourism glory

Few years into KTB, the tourism sector received a huge slap on the face in May 2014. Four key western countries- United States, United Kingdom, Australia and France- issued travel advisories to their citizens visiting Kenya.

This followed a series of attacks by Somali Islamic insurgents Al-Shabab in key towns and cities in the country.

Even though the western countries stated that they had made the decision to protect their citizens from terrorist attacks, the Kenyan government expressed strong disappointment saying the move was aimed at causing panic among citizens.

But all these pleas fell on deaf ears. The British government issued another travel warning advising its citizens to avoid travelling to Mombasa, Eastleigh in Nairobi and areas within 60 kilometers of the Kenya-Somali border, a statement that worsened fears among foreign tourists about the state of security in the country.

Immediately, a massive walkout ensued as western countries, led by Britain, started airlifting citizens- the major foreign exchange contributors to the sector- through their airlines, Thompson and First Choice.

Heads rolled as stakeholders sought options to restore the country’s lifeblood sector to normalcy. President Uhuru Kenya constituted a taskforce to drive this agenda.

“I was the secretary for the task force for tourism recovery, which had stakeholders from various government ministries. We introduced a raft of measures to revamp the sector,” Luseka says of the sector that months later registered an impressive number of foreign tourists.

Expatriate Chief Executive

Further, the CEO traces the steps into her long career journey to Kenya Commercial Bank (KCB).

A graduate from the University of Nairobi with a Bachelor of Arts degree in Economics and Sociology, a Diploma in Marketing from the Marketing Society of Kenya, and holder of an MBA from the Strathmore Business School, Luseka joined KCB as a graduate management trainee and climbed the ladder up implementing strategies, new products and leading marketing campaigns.

She left the bank for Gulf African Bank, an Islamic Bank that was at the time launching in the country and saw it grow through the ranks before moving to Kenya Tourism Board.

Arguably, now one of the youngest CEOs in Kenya’s public sector after being fully confirmed to the position months ago, Luseka believes all citizens are agents of change and can drive the country to the next level.

That is why Brand Kenya Board is set to roll out one of the country’s greatest communication drive to showcase the journey brand’s to date and rally Kenyans to be at the forefront in safeguarding gains the brand has made, she says.

The 44-year old faces a tough task of flying the troubled airline back to profit making

By Ben Oduor

Sebastian Miskosz, a Polish national, has been appointed new Managing Director of Kenya’s flag carrier, Kenya Airways (KQ).

His appointment now puts to rest the six-month long search for a new CEO conducted by Spencer Stuart, an American global executive search and leadership consulting firm.

The 44-year old is set to assume office on June 1, 2017, taking over from Mbuvi Ngunze who resigned in November 2016 after a two-year stint of historic labor crises that, among other factors, saw the airline record poor returns.

Mr. Ngunze had opted to step down in the first quarter of 2017 but the airline management requested him to hold on as it searched for the successor. The lengthy global recruitment process came to a close early May.

“I am pleased to announce the appointment of Sebastian Miskosz to the role of Group Managing Director and CEO with effect 1^st June, 2017. Sebastian Miskosz has over 20 years of professional experience in executive management both in private and public sector,” announced KQ Chairman, Michael Joseph, during a press conference.

Tight experience

Prior to the appointment, Miskosz held various non-executive roles.

He was the CEO of eSky.pl, the leading Central European Online Travel Agent, before being appointed President and Chief Executive of LOT Polish Airlines, one of the oldest airlines in the world, a position he held twice while overseeing the turnaround of the company to realize positive results after recording losses for years.

He has also been a Director in Deloitte Business Consulting Warsaw office, and Vice President of the Polish Information and Foreign Investment Agency (PAlilZ), a government agency that markets Poland to potential investors.

His rich experience, coupled with the bilingual knowledge of French, as well as English, Russian and his native Polish languages, has exposed him to various jobs in different countries.

Sources trace the onset of his career to 1997 with Arthur Andersen office in Paris, where he later moved to become the Managing Director of the French Chamber of Commerce and Industry in Poland (CCIFP).

A graduate of the Institute of Political Studies in France with Master’s degree in Economics and Finance, Miskosz’s credentials seems to have satisfied the wishes of KQ management.

The management had earlier indicated its desire to hire an expatriate CEO, a move that would dawn a new beginning since 1999 when Brian Davies, a Briton, left the carrier.

On the other hand, the new MD has been assured support once he assumes office.

“On behalf of the Board of Directors of Kenya Airways and management, I wish to take this opportunity to offer Sebastian our most sincere congratulations on this appointment and confirm our full support to him as he takes over as Group Managing Director and CEO,” said Mr. Joseph, adding:

“We wish him every success as he assumes his new responsibilities. We have no doubt that under his leadership and guidance the airline, with the support of management and the Board will strive to greater heights and achievements as well as continue to regain its altitude as the Pride of Africa’.”

However, despite the assurance, Mr. Miskosz has a challenging task ahead- that of changing prospects of an airline which has for the last three years flown over turbulent times.

KQ’s turbulent past

Miskosz’s first critical task will be to erase the negative financial reports recorded by the airline within the last three years.

Its worst and the biggest loss in Kenya’s corporate history was the Sh25.7billion recorded in 2015 for the year ended March. This, the management said, was largely attributed to by tourism slump, among other factors.

KQ further recorded a slight increase in revenues by only 3.8 per cent to Sh110.1 billion despite a rise in passenger numbers during the year of review, figures it said were realized after management was forced to cut fares in a bid to compete with Middle East rivals.

Mbuvi Ngunze, the airline Chief Executive at the time, said KQ was set to borrow Sh20billion from the Cairo-based African Export-Import Bank (Afreximbank) to finance its working capital as it focused on a long term strategy to return the airline to profitability.

Unfortunately, the following year, Kenya Airways plunged deeper into murkier waters when it posted Sh26.2billion net loss for the year ended 2016, a result the management attributed to the ‘12.9 per cent weakening of the shilling against the US dollar that cost the carrier Sh9.7 billion in foreign exchange losses.’

Sources say KQ, whose total loans stood at Sh113.2billion, had at the time saw an increase in finance cost by Sh2.3 billion to close the year at sh7billion.

“Ninety eight of our loans are dollar-denominated, including local ones. We got these loans when the shilling was trading at 75 or 78 units to the dollar and we are repaying them at 101,” Mr Dick Murianki, the airline’s acting finance director, was quoted by Daily Nation saying.

“As at the end of the financial year, we held cash in various countries such as South Sudan and Nigeria and the translation of these monetary assets has seen us lose significant value,” he added.

Therefore, the new MD will be expected to reduce expenses, repay remaining loans and fly the airline back to profitability zone- this even as he focuses his energy on boosting staff morale as well as public, investors and passengers confidence on the national carrier.