HUSTLE MAG MARCH 2020 FINAL

HUSTLE
Africa's business magazine for the entrepreneur VOLUME 026 MARCH 2020
EAST AFRICA
KSH 350 USH 12750 TSH 7850 RF 3030
INSIDE
Cryptocurrencies
gaining acceptance
Propelling
reinsurance to
new heights
Charles Njoroge,
MD, Jawabu
Biashara.
SCAN ME
JAWABU BIASHARA
UNLOCKING SUCCESS
Despite the challenges, Jawabu Biashara is raring to be a market leader
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CONTENTS
12
16
30 27
13
31

14
WELCOME..............................................................................7
QUOTES.................................................................................8
20
BRIEFS
•Safaricom Gives KES 5 Million Sponsorship Boost to Magical
Kenya Open.......................................................................9
• Upfield achieves top classification in aib unannounced
international quality audit......................................... .........9
• African capital market activity declines further in
2019.................................................................................10
• Growing tourist numbers, economic diversity steady Kenya
GDP growth.................................................................. ....12
OPINION
• Propelling reinsurance to new heights............................13
• The Cybersecurity Threats Facing Financial Institutions..14
• Cryptocurrencies gaining acceptance..............................16
MAIN STORY
•Micro and small enterprises: A desert in the oasis............18
•Jawabu Biashara: Unlocking Success................................20
•We work with entrepreneurs to deliver win-win financial
solutions that create mutual impact..................................22
•From a tin shack to a thriving salon business...................24
•Former driver tastes success in meat business.................25
•Aiming for the sky...........................................................26
36
FEATURE
•‘My first product launch was a total failure,’-Dr. Moka
Lantum, founder, Micro Clinic Technologies Limited...........27
•The Gabonese Journalist Who Built A Multi-Million Dollar
Media Relations Company....................................... ..........28
• When you follow your passion, money will follow you....31
• Giving back to mother nature.............................. ...........32
FARMING
•How Soil Fertility Management Could Enhance Food
Security.................................................................................34
•Rabbit farming: The new money spinner...........................36

HUSTLE EAST AFRICA

WELCOME
MANAGING EDITOR:
Amos Wachira
WRITERS:
Jeff Korir
Supram Goswani
CONTRIBUTORS:
Prof Bitange Ndemo
Martin Koinange
Vincent Muasya
Maria Dima
Edward Israel-Ayide
Linly Ku
MARKETING MANAGER:
Jackline Asagi
BUSINESS EXECUTIVE:
Steve Angwenyi
SUBSCRIPTION & CIRCULATION:
Bill Karani
DESIGN AND LAYOUT:
Mark Gikonyo
ILLUSTRATIONS:
Stanislaus Olonde
PUBLISHED BY:
“Always deliver more than expected.”
— Larry Page, co-founder of Google
Editor’s note
Dear reader,
What ails small businesses in Kenya? Is it a poor business environment
or lack of affordable credit? Well, it seems that local micro
and small enterprises have to surmount great odds stacked against
them. That’s why over 50% of new businesses barely survive past
their second birthday. The statistics are scary for an economy that is
oiled by a burgeoning informal sector.
Experts opine that entrepreneurs need to first check the needs of the customer
before creating a product. They should gauge the customers pain points then create
a fitting solution around those points.
One entrepreneur, a veteran in the microfinance industry has created a financing
solution for micro and small businesses. Charles Njoroge’s Jawabu Biashara is a
credit only microfinance delivers products and services that are tailor-made for the
entreprenuers in the bottom of the economic pyramid. All of these products are anchored
on technology, improving on their delivery speed and efficiency.
Read on to understand Jawabu Biashara’s lending model and how its impacting lives.
Enkei Plaza - 4th Floor
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CELL: +254 720 806488
EMAIL: info@hustlemag.co.ke
HUSTLE E.A IS PUBLISHED MONTHLY.
Views expressed in this publication are
those of the authors and do not necessarily
reflect the position of the publisher.
Also in this edition, we talk to one of Africa’s fastest rising stars, Mr. Nicholas Pompigne.
As the founder of APO Group, he’s beaten great odds to rise to the helm of multi
million dollar enterprise that he founded in 2007. In this question and answer series,
we have distilled some critical lessons that you can get from his experience. Read on
to learn about his inspiring journey.
In our dedicated agribusiness segment, we talked to a soil expert to unravel the
mystery of soil infertility in Kenya. After all, we realize that quality food comes from
fertile soils, so to safeguard our food security, we need to go back to the basics to
address soil infertility.
Away from matters soil fertility, we critically looked at the rabbit farming value chain
to see whether it’s a viable business. Read on to get the details.
Happy reading!
©2020 Elite Craft Ltd. All rights
reserved. Material may be reproduced
only by prior arrangement and with due
acknowledgement to
HUSTLE EAST AFRICA MAGAZINE.
editor@hustlemag.co.ke FB: hustle magazine Twitter: @hustlemagke
www.hustlemag.co.ke

THOUGHT LEADERS
“The Corona virus has increased output prices as
alternative import markets aren’t as cheap as China.
Unfortunately, at this point in time, it’s difficult
to assert whether we are at the beginning, middle
or end with the coronavirus due to scant and inadequate
data points,”
“The NSE has placed a special focus on supporting
business growth through a well-structured
program aimed at preparing companies to list or
access other capital options offered by the market
in line with their strategic goals and priorities,”
Jibran Qureishi, Regional Economist, Stanbic.
NSE Chief Executive Geoffrey Odundo.
“Today we have added another first to our digital
banking innovation as we continue to expand our
digital offering across our banking spectrum,”
“We have big surprises for our PostPay customers
in the near future where we plan to offer additional
destinations for international calling and
also unveil a device financing model where customers
can get a device as part of their PostPay
plan,”
Paul Njoki, head of wealth management at
Standard Chartered Bank.
Sylvia Mulinge, Chief Customer Officer, Safaricom.
78
HUSTLE EAST AFRICA

hustle briefs
Safaricom Gives
KES 5 Million
Sponsorship
Boost to Magical
Kenya Open
This year’s Kenya Open will
feature a strong field of
talent comprising a total
of 138 professionals and 6
amateur players
Safaricom has today announced
a KES 5 million sponsorship
towards the 2020 Kenya Open,
scheduled to take place at the
Karen Country Club from 12th –
15th March 2020.
As the official connectivity partner,
Safaricom will set up a fully operational
media centre with high speed internet,
laptops and a printer. They will also set
up connectivity for key areas such as
the European Tour Offices, Kenya Open
Golf Limited offices and provide fibre
for the TV compound broadcast so that
it is streamed to local and global media
partners.
“Over the last six years with the exception
of 2019, we have delivered first class
internet and data solutions to support
the media and livestream requirements
for the event’s local and global broad-
Upfield, the largest plant-based
consumer products company
in the world and the number
one producer of plant-based
spreads globally, has achieved
an A classification in an AIB unannounced
quality audit in the Kenya factory.
This excellent audit rating of the new
owners of iconic brands including Blue
Band, Flora and Rama is an improvement
from last year’s rating where the factory
Chief Enterprise Officer, Safaricom PLC, Rita Okuthe hands over a five million Kenya
shilling cheque to Kenya Open Golf Limited, Chairman Peter Kanyago(L) for the
magical Kenya Open 2020 at Michael Joseph Center, Safaricom.
casts. This has allowed us to reinforce
the strength, reliability and speed of our
data solutions. We remain committed
to playing our role in transforming lives
through sports and Kenya Open is an
important platform for us to do this,” said
Rita Okuthe, Chief Enterprise Business
Officer, Safaricom.
This year’s Kenya Open will feature a
strong field of talent comprising a total of
138 professionals and 6 amateur players
(5 Kenyan and 1 Tanzanian) competing for
a prize kitty of €1.1M (KES 122.94 Million).
“We thank Safaricom for their support
of the 2020 Magical Kenya Open Golf
Championship. Through this sponsorship,
Safaricom will, once again, provide the
tournament with cutting edge connectivity
and communication solutions that will
meet the demands of the tournament,”
said Peter Kanyago, Kenya Open Golf
Limited Chairman. During the event,
which is taking place for a second time as
part of the European Tour’s Race to Dubai,
the scoring teams will be able to capture
scores and data through the provision of
20 4G enabled tablets and phones.
Prior to the main tournament, the
venue will host a Pro-Am tournament on
Wednesday where visiting players will join
club members and sponsors guests for a
round of golf.
UPFIELD ACHIEVES TOP CLASSIFICATION IN AIB UNANNOUNCED
INTERNATIONAL QUALITY AUDIT
had received a B classification. The audit
is based on globally recognised food
safety standards and helps demonstrate
compliance to Good Manufacturing
Practices.
Upfield East and Southern Africa
Managing Director, Peter Muchiri said the
company had been intentional in applying
and adhering to strict guidelines in its
manufacturing processes to achieve the
improved rating.
“Our commitment to quality underscores
everything we do and advances
our goal of being a company and brand
that consumers trust. The consumer
drives our business, and we work
tirelessly to ensure that we are listening
to, meeting and exceeding their expectations,”
he said.
The internationally recognised AIB
quality audit is conducted annually and
focuses on Good manufacturing practices.
HUSTLE EAST AFRICA
9

Hustle briefs
CAPITAL MARKETS
African capital market activity declines further in 2019
The general slowdown in equity markets was largely driven by a series of macroeconomic
factors including an equity capital market (ECM) deceleration in global markets
Overall, African equity capital
market (ECM) activity in 2019
declined sharply both in
volume and value from 2018,
with 2019 posting the lowest
proceeds raised in ten years. The general
slowdown in equity markets was largely
driven by a series of macroeconomic
factors including an ECM deceleration
in global markets, caution in the period
leading up to key local elections, which
took place in both Nigeria and South
Africa in 2019, and more specifically in
South Africa, growing political gridlock
and economic stagnation.
These are some of the key findings
from PwC’s (www.PwC.com) 2019 African
Capital Markets Watch publication issued
today, which analyses equity and debt
capital market transactions on an annual
basis. This report lists all new primary
market equity initial public offerings
(IPOs) and further offers (FOs) by listed
companies, in which capital was raised
on Africa’s principal stock markets and
market segments. The report also includes
IPO and FO activity on international
exchanges or non-African companies on
African exchanges.
Andrew Del Boccio, PwC Africa Capital
Markets leader, notes:
“A state of uncertainty seems to have
become the ‘new normal’, and we expect
some degree of volatility and caution to
continue to affect Africa’s capital markets
activity in 2020.
“This sentiment is also reflected in
PwC’s annual 2019 Global CEO Survey, in
which African CEOs noted their expectations
for a slowdown in economic growth
as well as their top concerns, which
included political risk, over-regulation, and
worries about finding top talent to fill the
skills-gap.”
African equity markets
2019 ECM value was the lowest seen
over the past decade, while the volume
of deals was only lower in 2012. Overall
ECM activity in 2019 declined in value and
volume by 44% and 29% respectively,
compared to 2018. The decline was main-
10
HUSTLE EAST AFRICA
Andrew Del Boccio, PwC Africa Capital Markets leader.
ly related to activity in South Africa, where
ECM activity dropped by 69% in terms of
value and 46% in terms of volume compared
to 2018, and where Africa’s largest
bourse saw no capital raised through IPOs
in 2019.
Between 2010 and 2019, there were
927 African ECM transactions, raising a
total of $88 billion. The highest volume
of transactions was recorded in 2015 and
2017, with 125 deals each, while 2012 recorded
the lowest volume of transactions
with 65 deals.
African IPO market
Over the past ten years, there have
been 215 IPOs by African companies on
both African and international exchanges,
raising $16.9 bn. 2019 saw the lowest
volume in IPO activity over the past ten
years, recording a decline of 47% compared
to 2018 activity.
No capital was raised via IPOs on the
JSE in 2019. However, South Africa still

dominated during the decade under
review, with seven of the top ten IPOs between
2010-2019, and accounted for the
two largest IPOs by value - the $1.2 billion
Steinhoff Africa IPO in 2017 and the $819
million Vivo Energy dual listing on the
Johannesburg Stock Exchange (JSE) and
London Stock Exchange (LSE) in 2018.
Aside from the decreased levels of
activity in 2019, there were some other
notable events in specific markets. IPO
activity resumed in Nigeria after four
years, with Airtel Africa Plc’s dual listing
on the Nigerian Stock Exchange (NSE) and
the LSE, raising $687 million. Mozambique
also recorded its first IPO in six
years with the listing of Hidroeléctrica de
Cahora Bassa on the Bolsa de Valores de
Moçambique.
Between 2010 and 2019, total IPO
proceeds of $15.9 billion were raised on
exchanges in Africa in 202 IPOs. Sub-Saharan
African exchanges accounted for 133
IPOs (or 66%) and $12.3 billion (or 77%)
of the value raised. The remainder was
raised on the North African exchanges.
Of the amount raised on the sub-Saharan
African exchanges, the JSE accounted
for 71% or $8.7 billion, while the NSE
accounted for 13% or $1.5 billion. In terms
of IPO volume, the JSE and the Botswana
Stock Exchange recorded 64 IPOs and 10
IPOs, respectively, while the Ghana Stock
Exchange, Bourse Régionale des Valeures
Mobilières (BRVM) and the Dar es Salaam
Stock Exchange each had 9 IPOs. The
Egyptian Exchange accounted for the
largest proportion of the IPO proceeds
raised on North African exchanges, at 60%
or $2.2 billion raised from 23 IPOs.
African FO market
In 2019, FO activity declined significantly
in terms of transaction volume and
value, by 25% and 44%, respectively, over
the prior year. Low levels of activity in
South Africa fueled the decline, with the
volume of FOs on the JSE decreasing by
42% from 38 deals recorded in 2018 to 22
deals in 2019, and the value decreasing
by 58% from $3.8 billion in 2018 to $1.6
billion in 2019.
Over the past ten years, a total of
712 FO deals were recorded on African
exchanges and by African companies on
international exchanges with a total of
$71.1 billion raised.
2019 saw the lowest FO proceeds raised
on African exchanges in the past ten
years with $3.5 billion from 59 FOs. Over
Alice Tomdio, PwC Africa Capital
Markets Director.
2019 ECM value was
the lowest seen over
the past decade, while
the volume of deals
was only lower in 2012
the past decade, a significant proportion
of FO activity took place in South Africa,
with the JSE accounting for 58% and 79%
of total FO volume and value, respectively.
Egypt accounted for the next-largest
amount of FO volume and value at 10%
and 6%, respectively, followed by Nigeria
with 4% of both FO volume and value.
African inbound, outbound, domestic
and cross-border activity, 2010-2019
African ECM activity in 2019, similar to
prior years, was led by domestic deals,
comprising 71% of both ECM volume and
value. Outbound ECM saw a marginal
increase in the value of transactions
between 2018 and 2019, with 11 transactions
raising $225.4 million in 2018 versus
11 transactions valued at $244.9 million
in 2019.
The JSE led inbound activity in 2019,
with ECM funding raised largely by global
companies with primary South African
operations or historical market ties.
African debt markets
Egypt was the largest sovereign issuer
of non-local currency debt in 2019, raising
a total of $8.2 billion. South Africa was the
second-largest sovereign issuer, raising
$5.0 billion in September in its largest
ever Eurobond issuance, as the country
seeks liquidity to address budget deficits
and broader systemic issues stifling economic
growth.
African issuers have raised $245.9
billion of non-local currency debt from
759 issues over the past ten years, with
almost 50% of that value raised in the
past three years. South African corporate
issuers accounted for 52% of non-local
currency corporate debt issued between
2010 and 2019, including energy utility,
Eskom, which accounted for the largest
cumulative non-local currency debt value
raised by a single issuer over the past
decade at $5.5 billion, largely intended
to fund the company’s capital expansion
programmes, such as the construction
of its coal-powered Medupi and Kusile
power stations.
The Outlook
Consistent with prior years, we expect
governments across the African continent
to continue to implement strategies
towards building robust capital markets.
Some recent examples include Ethiopia’s
plan to launch a local stock market
during this year, and Angola’s roadmap
to privatise its state-owned companies by
2022. In addition, we can expect to see
other announced privatisations in Nigeria,
Malawi and Ghana.
Alice Tomdio, PwC Africa Capital Markets
Director, says:
“Despite the lacklustre activity in 2019,
we saw significant progress in various
capital markets initiatives during the year,
including the drive for sustainable finance
through the issuance of social, green
and infrastructure bonds in South Africa,
Kenya, and Nigeria. Together with a move
towards more local currency and blended
financing, we expect this trend to continue,
and to unlock new sources of capital
for African issuers.”
HUSTLE EAST AFRICA
11

Hustle briefs
TOURISM
Growing tourist numbers, economic diversity steady Kenya
GDP growth
Most East African countries
have a positive economic
outlook, largely due to
the positive performance
brought about by economic
diversification. This is according to the
Institute of Chartered Accountants in
England and Wales’ (ICAEW) latest report,
Economic Update: Africa Q1 2020. The
accountancy body provides GDP growth
forecasts for various regions, including
East Africa which is set to grow by 6%,
West and Central Africa at 3.1%, Franc
Zone at 4.9%, and Southern Africa at 1.3%.
The report, commissioned by ICAEW and
produced by Oxford Economics, highlights
how East Africa remains the fastest-growing
sub-region, and the economic outlook
remains favourable, underpinned by
vigorous domestic demand and public
investments in infrastructure.
Kenya’s tourism industry was highlighted
as a key player in the country’s efforts
to diversify its economy away from a dependence
on agriculture as a key foreign
exchange earner. Kenya’s medium-term
tourism prospects remain robust, despite
the corona virus outbreak currently
being witnessed globally, supported by
12
HUSTLE EAST AFRICA
improvements in infrastructure, better air
connectivity and easing visa regulations
around Africa and the rest of the world.
Michael Armstrong, ICAEW’s Regional
Director for the Middle East, Africa and
South Asia, said: “Kenya’s economic
diversification strategies are increasingly
buffering its economy from global shocks.
More African countries, including Kenya,
are prioritising the promotion of tourism
as part of this plan. Ongoing investment
in infrastructure projects, resilient exports
and the associated benefits from regional
economic integration in the subregion will
reinforce growth projections.”
The report goes on to highlight how the
economic outlook in Kenya is moderately
positive. GDP growth is projected at 5.5%
in 2020 amid robust private consumption,
higher credit growth, and rising public
and private investment. In addition,
rapid urbanization and further regional
integration will likely continue to open up
investment opportunities.
“The East Africa regions has maintained
its status as the continent’s growth
hotspot in the first quarter of 2020. The
region’s output, which has slightly decelerated
to 6% in 2020 is being kept stable
by the fact that the region boasts some of
the fastest growing economies globally,”
the report stated.
The sluggish performance of the
Nigerian economy continues to weigh on
West and Central Africa’s prospects, with
regional growth seen rising only marginally
to 3.1% in 2020, while North Africa’s
growth is projected to pick up more
strongly, rising from 3.1% in 2019 to 3.7%
in 2020. Tunisia, in particular, faced significant
challenges, with growth estimated at
a mere 1.3% in 2019. Aside from a marked
slowdown in agricultural growth, frequent
protests and weaker external demand
contributed to a slump in industrial activity.
This was, however, partly offset by a
strong rebound in tourist arrivals.
Regional powerhouses South Africa
and Angola continue to weigh heavily on
Southern Africa’s prospects: the region’s
growth remains sluggish at 1.3% in 2020,
with risks firmly stacked to the downside.
Power outages are taking a toll on the
South African economy, and fiscal pressures
mean the country could well lose its
investment-grade credit rating. Angola’s
real GDP, meanwhile, looks to have contracted
for a fourth straight year in 2019.

opinion
REINSURANCE
Propelling reinsurance to
new heights
By Kenya Re
MD, Mr. Jadiah
Mwarania
Local reinsurers
have
implemented
strategies
that
have seen
them expand
and
tap into
more of the
Eastern Africa
region
The Reinsurance industry has made tremendous
strides over the years. Coming
from a virtually non-understandable
industry to a pivotal and important part
of the insurance industry across the world
today. Reinsurance over the years has allowed
more insurers to take on more policyholders by
protecting them against insolvency, it has helped insurers
stabilize against financial losses and helped
decreasing overall risk.
However in the reinsurance world, growth as a
reinsurance company is key to ensure maximum
protection for insurance companies. Expansion
to different markets and tapping into different
segments is instrumental in unlocking the potential
and overall business. To give more of a local
context local Kenya Re has diversified its operations
to different countries such as Zambia and Côte
d’Ivoire just to mention a few in a bid to unlock the
francophone sub-Saharan Africa Market. Growth
into products such as Islamic insurance has put the
corporation on the international map after the Corporations
Re-takaful window being selected twice
as the best in Africa.
Solid and well developed strategies do not only
set a solid foundation for reinsurance business
but also help the reinsurer outline a solid route
map that will guide their practice. Local reinsurers
have implemented strategies that have seen them
expand and tap into more of the Eastern Africa
region. Strong strategies ensure profitability, stable
growth while moving on a guided and targeted
path. Technology remains key in this industry
as adoption and implementation of systems that
insure global and international practice and has
helped to ease processes while ensuring accuracy
in reporting while increasing automation in more
areas that have led to both efficiency and improved
accuracy. Additionally, block chain technology
assists in eradication of fraud which often happens
during fraud claims, this enhanced operating system
is an automated process that is a cryptographically
secured form of record-keeping, which makes
verification of data easier. According to surveys
recently released by McKinsey, automation can
reduce the cost of fraudulent claims by as much as
30 percent.
In order to keep a afloat within the reinsurance
industry an organization must remain a head of its
competition to ensure that they provide robust and
impactful products to the insurance companies, a
need for product customization may arise due to
the ever changing insurance needs of consumers
hence more insures creating tailor-made packages
to suit their client’s needs. Technology implementation
and innovation must stay in the heart of reinsures
not only to easy and automate processes but
to keep up with the ever changing trends. As the
Corporation is set to celebrate its 50 years in business
this year, deliberate and continuous efforts
continue to be put in place to ensure transparency,
ethics and professionalism while ensuring overall
success, profitability of the business and overall
growth of the reinsurance and insurance industry
as a whole.
HUSTLE EAST AFRICA
13

opinion
CYBERSECURITY
The Cybersecurity Threats
Facing Financial Institutions
By Ashlene
Ramadan
Cyber-attacks
impacting
financial
institutions
are predominantly
focused
on trying
to scam
people and
get money
from them
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HUSTLE EAST AFRICA
Financial institutions deliver a vast amount
of services to consumers and businesses
– with trillions of dollars exchanging hands
daily to keep the world going. Financial
institutions form the backbone of our industrialized
world.
These institutions depend heavily on information
technology systems and any form of disruption
to these critical systems can severely undermine
confidence and result in the loss of business and
reputation. It is precisely because these institutions
manage a lot of money that they are a key
target for cybercriminals. Cyber-attacks impacting
financial institutions are predominantly focused on
trying to scam people and get money from them.
If pressed, I would say that 95 percent of these
attacks are executed for direct financial gain. The
other 5 percent? In most cases organized hacktivists
and other groups working towards hurting a financial
institution, its brand, and its customer loyalty.
To gain financially from an attack on a financial
institution, these bad actors are most likely looking
to accomplish one of two things:
1) They can utilize credentials from a financial
institution’s customers to access their accounts
directly and siphon off their funds.
2) They can use the personally identifiable information
that they gather from a customer’s records
to create new accounts for their own benefit.
Financial institutions are privy to a large amount

of information about their customers.
They can have social security numbers,
birthdates, email addresses, and other
information. And perusing recent transactions
can also disclose other valuable information
about an individual – like their
other paid online accounts. Using this
information, bad actors can apply for lines
of credit, credit cards, and other accounts
that they can then exploit. They can also
use this information to fuel brute force
attacks against the other online accounts
of an unsuspecting bank customer and
use them for other fraudulent activity.
According to the Verizon Data Breach Investigations
Report, about 88% of security
incidents in the finance sector fall into just
three categories: web app attacks, distributed
denial-of-service (DDoS) attacks, and
payment card skimmers.
In addition, the bulk of cyber attacks
impacting financial services institutions
are focused on ATMs. In these instances –
which Verizon claims account for approximately
66% of attacks on financial service
institutions – the ATM machines are in
some way tampered with. This tampering
can include the installation of a credit card
skimmer or other devices that captures,
stores, and transmits the information carried
in an ATM card’s magnetic strip back
to the perpetrator.
However, eliminating attacks on ATMs
leaves the remaining 34% of attacks on
financial services companies. And in those
cases, the targets are predominantly
databases (20%), end-users (9%), desktops
(8%) and Web applications (8%).
With 66% of attacks impacting ATMs,
it’s important to consider how we can
make ATMs more secure and keep bank
customers from having their credentials
stolen at the cash machine.
Traditionally, accessing an account on
ATMs requires a user to have two factors-
“What I have” and “What I know”. They
require the use of a physical ATM or credit
card (what I have) and a PIN number
(what I know). Unfortunately, the authentication
process is completely in-band
– both the card and the PIN are entered
and transmitted via the same device (the
ATM machine). This means that compromising
the ATM machine gives a bad actor
access to everything they need to access a
customer’s account.
The Solution
The new EMV card is more resilient to
card duplication as they use a technology
known as Dynamic CVV.
Instead of a static CVV as in case of
magnetic stripe cards, the EMV chip cards
generate a new CVV for each transaction
that is valid only for that transaction and
thus protects against misuse of that card.
Thus, new EMV Chip cards do address
the card skimming but the users are still
vulnerable to pin stealing.
But cyber criminals are not far behind
here as well. A new form of card skimming
for EMV cards called “shimming” has
been uncovered that target chip-based
credit and debit cards. While a traditional
skimmer read the card data from the
magnetic stripe of the older cards, the
new shimming devices sit between the
card chip and the chip reader and can
be used to clone a magnetic stripe card
which is still accepted.
Game-changing improvements are
needed in the security of global payments
systems to protect organizations from
hackers. One approach is to completely
sidestep and do not include the ATM. By
utilizing an out-of-band authentication
solution at the ATM instead, compromising
the ATM machine would only
generate a fraction of the needed security
credentials. This makes it impossible for
the bad actor to compromise one device,
and subsequently compromise a user’s
account. The user Card data, as well as
any identifying PIN and CVV, will not go
through the ATM at all.
The remaining attacks not involving
ATMs could be equally thwarted by the
utilization of out-of-band, multifactor
authentication.
Spyware and keyloggers would be
unable to capture all necessary authentication
credentials and factors since they
only impact one of the devices necessary
to authenticate the user. Stolen credentials
would most likely account for just a
fraction of the factors needed to authenticate.
This would make it significantly
harder for bad actors to gain access to
user accounts, customers’ online banking
and company servers.
Bank robberies no longer have to be
conducted with a gun – or in person for
that matter. Today, a customer’s money
and information can be taken from the
comfort of a criminal’s home. But by
embracing better authentication, we can
prevent many of these breaches, and
keep banks and their customers safe.
HUSTLE EAST AFRICA
15

opinion
CRYPTOCURRENCY
By Prof. Bitange
Ndemo
A stable
coin will
change the
dynamics
and force
banks to
move into
digital
lending
for greater
inclusivity
16
HUSTLE EAST AFRICA
Cryptocurrencies gaining
acceptance
The United States Federal Reserve Bank
recently gave the clearest sign yet that it
will develop its own digital currency. The
announcement pushed the value of the
bitcoin beyond the $10,000 mark up from
$7,179 in December 2019.
Federal Reserve Bank Chief Jerome Powell told
Congress that the Bank’s view on a digital dollar
was overdue considering the fact that Facebook’s
Libra came as a “wake-up” call and that the US
digital currency could come “fairly quickly.”
He added that the issue of digital currencies was
becoming “systematically important” even though
there are still “many questions that need to be
answered around digital currency for the United
States.”
The type of cryptocurrency that governments
prefer to create is sometimes referred to as central
bank-backed digital currency or state-issued digital
currencies. In some cases, they are simply known as
stablecoins.
These types of cryptocurrencies are designed
to minimize the volatility of the price that is often
common with other coins that are not pegged on,
for example, fiat money or some assets. They can
take the form of national currency.
After several years of dilly dallying on the issue
of digital currency, congress seemed to be putting
pressure on the Federal Bank Chief to move with
speed in implementing a central bank backed dig-

ital dollar. The move could herald a new
chapter in the global economy.
Analysts think that the chairman’s
warming up to digital currency was largely
a response to China’s Digital Yuan, Facebook’s
Libra, and Public Payments Ledger
now common in China. He, however, stated
that whilst “a ledger where you know
everybody’s payments” is widely used in
China, he believes that it would not be
appealing in the US.
China recently made a surprise policy
shift especially when its economic planning
agency removed cryptocurrency mining
(a process for verifying cryptocurrency
and adding them to the blockchain digital
ledger for trading) from a list of activities
considered illegal in the country. They are
perhaps setting stage to lead the world in
this emerging technology.
There is, however, uncertainty whether
launching a digital dollar would guarantee
that the US dollar retains its central role in
the US and the world’s financial system.
Powell said that, “having a single
government currency at the heart of the
financial system is something that has
served the US well,” while emphasizing
that “preserving the centrality of a central
widely accepted currency that is accepted
and trusted is an enormously important
thing.”
In the United Kingdom, the Bank of
England has stated that it wants to create
a central bank-issued digital currency but
they first want to understand its implications.
In Africa, Tunisia and Senegal issued
a blockchain-based national currency, the
eDinar and eCFA respectively. These digital
currencies are being used along with
the regular currencies. Plans are under
way to expand the eCFA to other West
African states.
Although the European Union is reluctant
to issue a digital Euro and the US has
hitherto been indecisive, paper currency is
slowly becoming obsolete. The convenience
of digital currencies is such that
there is absolutely nothing anyone can do
to slow their spread in society.
The attractiveness of digital currencies
is not just convenience. They present a
strong value proposition to especially
emerging economies.
The short history of digital currency in
Kenya is perhaps known for its inclusiveness.
Access to finance has become more
widespread. Few people today visit banks.
As a result, many banks branches are
closing.
Digital currencies especially in digital
mobile lending in its present formats are
expensive. Like in any commodity with
limited supply their price will plummet
if more players join the market. A stable
coin will change the dynamics and force
banks to move into digital lending for
greater inclusivity.
As the old English idiom says, “the proof
of the pudding is in the eating.” We can
only understand the implication of this
emerging currency phenomenon if we
tried it. Just as we did with M-Pesa.
The writer is an associate professor at
University of Nairobi’s School of Business.
HUSTLE EAST AFRICA
17

MAIN STORY
MICRO & SMALL ENTREPRISE
Micro and small
enterprises:
A desert in the oasis
So many financial institutions, but no affordable
credit for local micro, small and medium
enterprises
By Tony Kiganda
In Nairobi, the small and medium
enterprises ecosystem seems to have
evolved over time to incorporate easy
access to credit.
The many innovation hubs dotting
the city paint a picture of a vibrant startup
ecosystem where innovators, investors
and venture capital funds co-exist
blissfully.
But away from these hubs, the reality
of struggling start-ups with little to no
access to capital plays out in the capital as
well as in most parts of the country.
In Africa, there is an infrastructure to
help entrepreneurs build their businesses,
but there are not enough success
stories to write home about, says Vineet
Rai, the founder of Aavishkaar-Intellecap
group, a pioneer in provision of solutions
that help build and scale profitable
enterprises.
His two outfits saw a gap in early stage
start-up funding in Africa and sought to
fill it by venturing into the continent in
2012.
To the uninitiated, starting and running
a small business in Kenya seems like an
easy task, until the need for more funds
presents itself.
Indeed, many entrepreneurs with brilliant
ideas churn out new start-ups every
month, but an acute challenge of funding
targeting early stage businesses means
that few succeed past the first two years.
A survey by the Kenya Bureau of Statistics
revealed that 2.2 million startups closed
down in the last five years. Others
stagnate at the start-up stage for years
as they lack funds to scale, ultimately
throwing in the towel when the going gets
tough.
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HUSTLE EAST AFRICA
Vineet Rai, founder, Aavishkaar-Intellecap group.
When these enterprises take a hit, the
economy suffers. The industry, better
known as the informal sector employs
a huge number of people, turning the
wheels of the economy.
Yet lack of funds to sustain and grow a
business continues to affect thousands of
micro and small enterprises in Kenya.
Mr. Rai explains that the problem is not
lack of venture capitalists because there
is a significant amount of funds flowing to
slightly larger enterprises.
Brian Ongosi, the head of finance
at Platinum Credit said that banks are
seemingly investing in government bonds,
giving the ‘risky’ SME sector a wide berth.
It’s an open secret that small enterprises
find it difficult to get capital, he says.
Intellecap and Aavishkaar have essentially
been crowd sourcing entrepreneurs
to show them off to investors.
“Our goal is to search, sift, support and
skill entrepreneurs,”says Nisha Dutt, the
chief executive officer at Intellecap.
We work extensively with entrepreneurs
to help them succeed and make an
impact.
Intellecap’s effort is just one among
many initiatives been fronted by different
stakeholders in a bid to support small
businesses.
The government’s initiatives focus
more on job creation for SMEs as well as
easy access to credit.
For a start, the Kenyan government
runs a 30 per cent procurement policy
that sees 30 per cent of all government
tenders being given to special groups,
comprising women, youth and people
with disabilities.
This affirmative measure has brought
in some results, though analysts feel that
small entrepreneurs are losing out to
rich individuals and larger corporates as
they lack enough capital to execute the
tenders.
This is backed by data from the Public
Procurement Regulatory Authority’s
report that shows that the special groups
handled 18.17 per cent of the 2017 halfyear
procurement budget of Kshs 208.3
billion. Though laudable, this falls short of
the 30 per cent.
The capping of interest rates presented
an excellent opportunity for local small
and medium enterprises to access affordable
credit from banks.
The noble move was seen as a panacea
to the spiraling problem of high interest
rates that was locking out most Kenyans
from affordable credit.
However, the initiative yielded negative

results as entrepreneurs are still finding it
hard to access loans from banks.
Interest rate cap led to a shortage of
funds just as price caps lead to shortage
of sugar and other essential commodities,
says X.N Iraki, an economics lecturer at
the University of Nairobi.
A new study conducted by Strathmore
University and Invest in Africa shows that
the rate caps have had a negative impact.
One of the many enterprise that were
negatively affected by the rate cap is Agri
Mech Africa, a start-up that is setting up
mechanization hubs across the country.
Kenya has over time faced problems
attaining food security, and Agri Mech
Africa provides a solution in the form of
two-wheeled tractors to help farmers in
far-flung rural areas to access affordable
farming equipment.
But to achieve its sole goal of making
farmers more productive, the small startup
needs funds to the tune of Kshs50 million
to reach a bigger number of farmers.
While Agri Mech Africa has the capacity
to turn the tide for millions of small holder
farmers in Africa, scaling it to sustainable
levels is a daunting task for Pascal
Kaumbutho, the founder.
The agricultural engineer runs the
ambitious outfit, which made a net loss of
Kshs2 million in its first year of operation.
“It is now harder to get credit from
The capping of
interest rates
presented
an excellent
opportunity for local
small and medium
enterprises to access
affordable credit
from banks
banks than it was a few years ago,” says
Kaumbutho. He echoes the frustrations
of many other entrepreneurs across the
country.
Kenya is an important place for entrepreneurship,
says Vineet Rai.
To bail out small entrepreneurs, something
needs to be done to bridge the gap
between them and credit.
This explains why firms like Aavishkaar
Intellecap Group is trying new kind
of initiatives in emerging technologies,
entrepreneurship skills and success to
create a real impact on the ground.
There is a very steep investment needed
to see early stage start-ups grow, Mr.
Rai observes. His firm has over 16 years
of experience investing in early stage
start-ups.
The venture capitalist is building an
entrepreneurship ecosystem in East Africa
with an aim of accelerating the growth of
start-ups.
The microfinance subsector has
emerged as a panacea to the challenges
facing micro and small entrepreneurs.
Because of their risk appetite, they traverse
the nooks and crannies of Kenya,
finding businesses and turning them into
success stories. Once they’ve been bailed
out, theres’s a huge likelihood of such enterprises
thriving, creating jobs for more
Kenyans. Getting credit sounds easy until
you knock on the doors of mainstream
financial institutions. Eric Kiio, a Nairobi
based entrepreneur tried to get funding
to deliver a contract he had secured, but
few banks were willing to listen to him.
The few that did demanded for collateral
in the form of title deeds and car logbooks,
assets that he didn’t have.
Microfinance institutions were his
solution. Within a few days, he had money
in his account and was on his way to delivering
his contract.
Charles Njoroge, the Managing Director
of Jawabu Biashara, a credit only microfinance
institution says that there are lots
of lenders in this industry, but only few of
them lend responsibly. His company has
a two pronged approach to responsible
lending; use of field loan officers and
use of technology to design and deliver
financial services. So far, his model is a
success. He notes that when enterprenuers
appropriate the loans they get to grow
their businesses, default payments will be
unheard of. All in all, responsible lending
seems to be key that will unlock the oasis
to quench the financial thirst of small and
micro enterprises.
HUSTLE EAST AFRICA
19

MAIN STORY
MICROFINANCE
Jawabu Biashara: Unlocking Success
Jawabu Biashara’s innovative lending model is giving a lifeline to micro, small and medium
businesses
By Amos Wachira
While Kenya has one of the
most developed financial
sectors in East Africa,
local startups struggle
to get affordable credit.
For a long time, the micro and small
enterprises segment has been ignored by
most mainstream financial institutions. A
2018 International Finance Corporation
report revealed that there are at least 44
million formal Micro, Small and Medium
Enterprises (SMEs) in Sub Saharan
Africa. 51 per cent of these need more
finance than they can access to grow their
businesses. Jawabu Biashara, a credit
only microfinance was launched in 2018
to serve the financial needs of micro and
small enterprises. The micro lender’s key
objective is to provide financial products
tailored to meet the needs of this market
segment. “Kenyans are known to be very
enterprising. We work with entrepreneurs
to enable them to scale their businesses,”
says Mr. Samuel Gaita, the Chief Executive
of Jawabu Biashara.
He says that their flagship product is a
business loan that was warmly received in
the market.
Their business loans are tailored to
improve the working capital of small
enterprises to enable them to grow. To do
this, says the CEO, the company assesses
the business needs of entrepreneurs and
their ability to repay the loans.
Since its launch, the new kid on the
block has managed to grow its customer
base as well as its range of products.
“We launched our services in April
2018 with a single branch. Since then, we
have gradually built our branch network
to three,” says Charles Njoroge, the
founder and Managing Director of Jawabu
Biashara. With its head office in Muthaiga,
and branches in Ngara and Githurai, the
company is serving the larger Nairobi region
including market centers in Githurai,
Ruiru, Kahawa West and Thika.
Others are Wakulima, Gikomba, Jogoo
road and City park markets.
The firm has also diversified its product
20
HUSTLE EAST AFRICA
Mr. Charles Njoroge (left), Managing Director, Jawabu Biashara shares a moment
with Jawabu Biashara CEO Mr. Samuel Gaita.
offering, providing a full suite of business
loans that include Express and logbook
loans.
Another area of focus is the housing industry.
Jawabu Biashara launched a housing
loan targeting landlords and housing
agents who wish to renovate or refurbish
their property to boost their revenue.
Mr. Gaita says the product aligns with
one of the government’s big four agenda;
housing.
With over 13 deposit taking microfinance
banks and many credit only microfinance
institutions, Kenya’s microfinance
industry is one of the most competitive
in the region. As such, micro lenders that
embrace innovation tend to stand out.
Jawabu Biashara is one of these. From
the outset, the company anchored all its
products and services on technology.
“We have realized that technology is
indispensable and most Kenyans have
embraced it,” says the company’s CEO.
The company has optimized its information
technology system to lower operation
costs while improving efficiency.
“For us, the customer is king, that’s
why we build our products around their
needs,” says Mr. Gaita.
The micro lender’s Jawabu Chapchap
mobile application can be accessed from
any place at any time.
The app also integrates with mobile
money services like M-Pesa for the convenience
of the customer.
“The app is self managed. It scores
customers in real time. Once the loan requests
are approved, money is disbursed
through the mobile phone,” Mr. Gaita
explains.
Using the App, customers can also
repay their loans at the tap of a button.
Other than launching technology-based
products and services, Jawabu Biashara’s
innovative lending model also gives it a
competitive edge.
While most micro lenders use the group
lending model, Jawabu Biashara takes the
personal approach. This is then bolstered
by a team of business relationship officers

who work closely with the customer to
understand their financial needs.
“We use the feel and touch approach
where our officers go to the field to interact
with the customers. Ours is responsible
lending,” says Mr. Charles Njoroge, the
Managing DIrector.
Almost two years in, the micro lender is
impacting lives, one customer at a time.
“We have seen a lot of impact on the
ground. Some customers had low stock
levels and dwindling revenues. With our
intervention they’ve been able to improve
their inventory and revenues,” says the
CEO, adding that some of their customers
were able to buy equipment needed to
propel their businesses to the next level.
Take the case of the bodaboda industry,
where the micro lender has had a lasting
impact. When Jawabu Biashara launched
its business loans targeting the motorcycle
industry, most motorcyclists were
using leased motorbikes. With the company’s
intervention, motorcyclists have
managed to buy their own motorbikes,
boosting their revenues and livelihoods.
“We are seeing our customers gaining
more confidence to scale their businesses.
Our products motivate them to buy bigger
consignments of products, or to source
produce directly from the farms,” says the
chief executive.
Most importantly, adds the CEO,
Jawabu Biashara services have improved
the customer’s standards of living. Having
scaled their businesses and positioned
them for success, most of these customers
have also created jobs for more
people.
The use of loan officers has emerged
as a practical model for Jawabu Biashara.
The CEO says through the interactions
between business releationship officers
and customers, the company has been
able to help its customers to improve on
their basic book-keeping skills.
With such an impact, it’s not hard to
see why referrals make the lion’s share of
Jawabu Biashara’s customers acquisition
model.
The micro lender also uses online marketing
and social media channels to reach
out to new customers.
Other than acquisition of new customers,
the growth of its loan book, and a
diversified portfolio of products, Jawabu
Biashara has also expanded its staff complement
in its eventful journey.
“From one staff member, we now have
a staff complement of 28 people. 80%
Jawabu biashara staff members in a past team building exercise.
The app is self
managed. It scores
customers in real time.
Once the loan requests
are approved, money is
disbursed through the
mobile phone
of our staff are field based loan officers,
working closely with the customer,” says
Mr. Gaita.
Like any other company, Jawabu
Biashara has met a few challenges in its
quest to become the go-to lender for
micro and small enterprises.
One of the biggest hurdles at the early
stages was mistrust from customers.
“We were joining an industry that hasn’t
been known to be very faithful to the
customer. As a new entrant, it takes lots
of hard work, energy and field based activations
to build trust,” says Mr. Njoroge,
the Managing Director.
Another challenge, according to Mr.
Gaita, is cut-throat competition. However,
he says that the company has managed to
stay competitive by leveraging technology,
choosing the right staff and training them
to serve the customer better.
Despite the challenges, Jawabu Biashara
is raring to be a market leader in this
industry.
“We are committed to delivering the
best as we expand our services and customer
base. We will remain dynamic as
we continue to address the needs of the
ever-changing market,” says the company’s
chief executive, Mr. Gaita.
HUSTLE EAST AFRICA
21

MAIN STORY
Q & A
We work with entrepreneurs to deliver
win-win financial solutions that create
mutual impact
With one of the most developed
financial services
sector in the region, Kenya
is a thriving finance
hub. With technology, so
many financial institutions have managed
to create products and services targeting
the bottom of the economic pyramid, an
area that is not well served by mainstream
financial institutions. But what
does it take to serve this segment that
boasts of thousands of micro and small
enterprises?
Hustle East Africa interviewed Mr.
Charles Njoroge, the Managing Director
of Jawabu Biashara, a credit only
microfinance to put this into perspective.
Excerpts.
What is the vision of Jawabu Biashara?
Our vision is to become a market leader
and a partner of choice in the provision of
innovative and customer focused financial
solutions in Kenya. To be a market leader
you need to deliver appropriate and need
based financial solutions to a diverse
customer base. As an institution, we need
to scan the market to ensure relevance
today and in the future. To be a partner
of choice to our current and future
customers, Jawabu biashara will strive to
deliver financial solutions to a majority of
Kenyans conveniently and affordably.
Jawabu Biashara business proposition
to the market revolves around three key
unique business propositions. These are,
fast turnaround time, ease of use and
excellent customer service.
Is this vision not too ambitious for a
start up?
Yes, we know it is ambitious, but we do
not wish to entertain a scarcity mentality.
It is very clear, with good foundation from
our internal customers - the staff, coupled
with an effective leadership and good
understanding of our economic environ-
22
HUSTLE EAST AFRICA
Charles Njoroge, Managing Director,
Jawabu Biashara.
ment, the sense of urgency in pursuing
innovation and technology and first class
focus on customer’s needs, the sky will be
Jawabu Biashara’s limit.
Why Jawabu Biashara?
Jawabu is a Kiswahili word meaning
“answer” in English and the word Biashara
is a Kiswahili word meaning “business”.
The name touches on the mandate we
have set for ourselves: To be an answer
to our target group, the micro business
community, off course we are alive to the
fact that this is not an event, but a journey
that started with the very initial loan we
gave our first customer in Githurai some
two years ago. It’s a journey, we are
committed as an institution to deliver with
some sense of urgency while cognizant
of the need to mitigate risks, prevalent in
lending operations.
What is Jawabu Biashara all about?
Jawabu Biashara is a startup micro
lending organization targeting the bottom
of the pyramid with financial solutions
that are not only innovative but also easily
accessible to the majority. It was borne
out of the fact that quite a majority of
micro entrepreneurs in Kenya not only
require financial solutions, but solutions
that are properly appraised and ability to
pay established. With this, we have developed
channels including digital that offer
a great experience to our customers.
So who is your target customer?
One of the very difficult decisions any
businessperson makes is to wake up one
morning, and say from today, I want to
be an entrepreneur. This is attributable
to the fact that starting a business is not
easy; growing it to the next level is even
harder. This requires a focused and a
resolute mind who knows no bounds and
is committed to deliver success. It is these
kind of entrepreneurs that we in Jawabu
Biashara believe we share a mutual need
to succeed. We work with them to deliver
win-win financial solutions that create
mutual impact.
How different is Jawabu Biashara from
other lenders?
The micro finance sector in Kenya is

very dynamic and very fast evolving. What
worked yesterday, may struggle to work
today. In the 90s, doing the Grameen
lending methodology that favored group
based loans was the fashion, talking of
peer pressure, co-guarantee arrangements
and frequent weekly engagements
worked for lending organizations and
many of the institutions thrived.
Welcome the mobile revolution, and
the impossible has become possible.
Access of financial solution anywhere,
any time is the new catchword in town
and with it institutions that are laggards
and slow learners if they do not urgently
re-engineer, will be the former successful
institutions and a new generation of
market leaders will emerge. The future of
financial solutions is on innovation, turn
around and vibrancy on change acceptance,
otherwise the industry is not for
the faint hearted.
In the microfinance sector in Kenya
today, it is becoming very difficult to anticipate
change and confront it with speed. It
is a case of “change or change will change
you”. Further, the 21st century customer
in the financial services sector is looking
for convenience, speed, easy access and
that sense of urgency in whatever the
institution is doing. We believe as Jawabu
Biashara, we are privy to this dynamism,
and therefore every decision or strategy
we deploy puts this reality into perspective.
How has the market reception been for
Jawabu Biashara as a lender?
Very positive so far. We gave our first
initial loan out of our small office in the
outskirts of Nairobi – Githurai on April
2018. Our ambition then, as it is today
was clear that Jawabu will be a solution to
the varied lending challenges that micro
entrepreneurs were facing after introduction
of interest cap and roll out of expensive
mobile based digital solutions.
As a business, we have had a positive
reception from the market. We have been
able to expand our services to Ngara,
Thika and with a head office that houses
the corporate branch. From those humble
beginnings, we are hopeful we shall be
able to scale up, deliver financial access
to the majority of Kenyans, but again do
it efficiently while creating impact to each
and every customer we touch. We are
guided by the need to create mutual positive
impact on customers and the other
institutional stakeholders.
How is competition in the microfinance
sector today in Kenya?
Overall, the financial service sector in
Kenya is very competitive. I would dare
say in the East African region, when it
comes to competition and innovation,
Kenya leads the pack. The competition is
stiff with the mainstream banking sector
developing solutions for the bottom of the
pyramid market segment that in the past
was a preserve of microfinance institutions.
In addition, the customers across
the breadth and depth of the financial services
sector have become more sophisticated,
rather very informed, exposed to a
buffet of financial service providers with
diverse solutions and are now demanding
better services and better offerings. They
want the service now and not tomorrow.
It is a continuous process of mind shift
change. It is literally survival for the fittest,
that is the microfinance landscape in
Kenya.
Despite this gloomy outlook, the potential
is huge for any institution that gets
As a business, we
have had a positive
reception from the
market. We have
been able to expand
our services to Ngara,
Thika and with a head
office that houses the
corporate branch
it right and has been/ is ready for digital
transformation to pursue their missions in
an increasing digital world.
How does Jawabu fundraise as it plans
to deliver the ambitious vision it has
set for itself?
This is a good question and coming at
the right time and especially when we
plan to do an official launch of Jawabu
Biashara. We are now confident with our
solutions.
We are not just experimenting but living
our mission and vision. We are privy to
what needs to be done, and we are committed
to deliver a great institution.
Funding remains a huge challenge,
but we now have a story and a history to
share with all potential funders. We are
now ready to start fundraising through
introduction sometimes in the 2nd quarter
2020. We remain open to discussions
with any potential funder either for debt,
equity or both.
The road ahead for Jawabu?
Just like any company, the future is
anchored on strong leadership, recruiting
right and getting a committed team, anchoring
innovation and technology to the
base of the institution, delivering financial
solutions that are need based and ensuring
a go-getter culture is imbibed across
the organization.
With this in mind, we plan to deliver our
3-year business plan that will see Jawabu
Biashara scale growth through digitization
and agency model coupled with minimal
brick and mortar expansion.
We remain confident to deliver value to
the whole Jawabu Biashara ecosystem.
Finally, what do you think is the worst
enemy to entrepreneurs and businesses?
This is a difficult but again an easy
question at the same time. I would rather
address by a quote from the current book
am reading: Ego is the enemy by Ryan
Holiday and it says, “Maybe you are young
and brimming with ambition. Maybe you
are young and you are struggling. Maybe
you have made that first couple million,
been selected to some elite group, signed
your first deal, stunned to find how empty
it is at the top. Maybe you have just been
fired. Maybe you just hit rock bottom.
Wherever you are, whatever you are
doing, your worst enemy lives inside you:
Your ego.
HUSTLE EAST AFRICA
23

SUCCESS STORIES
From a tin shack to a
thriving salon business
With financial intervention from Jawabu Biashara, enterprising
woman turns her business around
Emily Gitau, business woman.
By the Hustle East Africa team
To many people, the beauty
industry in Kenya seems
crowded. But away from the
many salonists and beauticians
jostling for customers is an
unmet gap; high quality but affordable
hairdressing and beauty services are
hard to come by. This is what Emily Gitau
realized ten years ago when she first
ventured into the salon industry. When
she launched her business from a humble
one-roomed tin shack, Emily’s goal
was to provide high quality services with
a personal touch.
“I realized that most people were not
satisfied with the quality of hairdressing
services that they were getting from
salons,” she said.
Although she had no formal training
in the salon and beauty industry, she
launched Emily Salon to make a difference.
Three years later, her efforts paid
off.
Her salon was on a growth pedestal,
attracting hundreds of customers every
month. With sheer grit and hard work,
it didn’t take long before she moved
her business from the tinned shack to a
permanent building.
In the bustling town of Ruiru, Emily’s
Salon is tucked inside a busy street.
While it may not be a physical landmark,
it’s a household name around Ruiru
town and environs.
For seven years since she moved to
the current location, she has seen the
business grow in leaps and bounds.
When we visit her at the salon, we find
her attending to two trainee hairdressers
as her salonists worked on several
customers. Her business, which employs
five people, is thriving.
“I attribute my success to excellent
customer care and my passion for the
hairdressing and beauty industry.”
Although the business has evidently
grown into a medium-sized salon
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HUSTLE EAST AFRICA
With Jawabu
Biashara by her side,
she’s willing to take
her business to the
next level
complete with a training unit, a reception
area and a spacious hairdressing lounge,
Emily says she’ll never forget her humble
beginnings.
“I didn’t have any equipment when
I launched my business. Today, I have
lots of salon equipment like hair driers
which produce stellar results, making my
customers to come back.”
Like any other businesswoman, Emily
struggled to raise the required capital
to sustain the business. But financial
interventIon from credit institutions gave
her business a new lease of life.
When she got her first business loan,
she says she was part of a women’s
group.
While they could easily get loans, she
felt that the model wasn’t convenient for
most people in business.
“My business stagnated as these
groups couldn’t survive for long. When
some group members moved to other
residential areas, we had no option
than to dissolve the group. Sometimes,
members vanished before they could
repay their loans.” In such instances, she
says the remaining group members had
to pay for defaulting members of the
group, something that didn’t sit well with
most people.
When Emily was introduced to Jawabu
Biashara, a credit only microfinance institution
last year, she was quick to notice
that the institution was into individual
lending.
“It’s one of the things that attracted
me to Jawabu Biashara,” she says. When
her first loan with Jawabu Biashara was
disbursed, she bought driers and salon
equipment.
Having tested their services, Emily has
nothing but kind words to describe her
new-found financial partner.
“They never harass you. Their services
are good and they disburse money fast.”
The secret to making timely repayments,
she says, is to have prudent
financial planning skills.
“With more funds, I’m planning to
renovate the place to make it even more
attractive to my customers.”

SUCCESS STORIES
Former driver tastes success in
meat business
Guka, as he’s fondly known,
uses loans from Jawabu Biashara
to grow his business
By Amos Wachira
Seven years ago, John Chege
could have chosen to stay in
his job as a taxi driver. But he
could barely make ends meet.
Cut throat competition and low
business volumes were slowly edging
him out of business. Many were the days
he could go home empty-handed. With a
young family to feed, he knew he had to
act fast.
“I was thinking of any business idea
that could allow me to use my car for
profit, without necessarily having to haul
passengers. That’s when I stumbled on
the meat business,” he says.
Armed with a business idea and a will
to succeed, he set up Vision Butchery in
Gitothua, Ruiru subcounty.
Today, the butchery is his bread and
butter. It has been his preoccupation for
the last seven years. It has steadily helped
him realize his vision as a business person.
From a struggling taxi driver, Chege
is now living his best life as a business
person.
As you approach his butchery near the
ACK Stage in Gitothua, Guka, as he’s fondly
known by locals is busy serving customers,
weighing and packing raw meat for
them. On one side of the establishment,
tens of his customers are enjoying boiled
meat and ugali. Clad in a white dust coat,
Chege cuts the mien of a hardworking
and ambitious man.
On a daily basis, he wakes up at 4 am
to look for meat. Using his small car which
carries a fabricated meat box, he shuttles
between the slaughterhouses of Njiru
and Kiamaiko.
Once he gets his hands on the juiciest
chunks of meat, he leaves for his butchery,
where he heartily serves his customers.
Going by the number of customers
streaming into his butchery, it’s not hard
to see that he has a thriving business. But
John Chege,
businessman
His answer to his
financial challenges
came in the form of
a loan from Jawabu
Biashara, a credit
only microfinance
institution.
things have not always been like this. With
no experience in the food industry, starting
a meat business was a steep learning
curve for him. There was a list of licenses
to be complied with.
He was also operating from a small
room which was barely enough for a meat
display. As meat is a perishable product,
he also needed a deep freezer to preserve
this commodity. When word spread about
his quality products, demand for meat
went through the roof, and his business
needed a capital injection to cope.
His answer to his financial challenges
came in the form of a loan
from Jawabu Biashara, a credit only
microfinance institution.
When he met a representative of
Jawabu Biashara two years ago, he
was skeptical about getting a loan.
Francis, a business relationship officer
from Jawabu Biashara explained to him
how the loan could boost his business.
“That’s when I decided to try their services,”
he says.
Using loans from Jawabu Biashara,
Chege has markedly pumped more life
into his business. From a single room, he
has expanded his business to occupy two
rooms.
One room hosts a huge deep freezer
where he stores meat, while the front
room has a meat display and a weighing
machine. Adjacent to the beef butchery
is an empty room where he plans to start
another butchery selling pork and pork
products. “The loans have also helped me
to renovate the butchery, and to carry out
repairs on my car when the need arises.”
With business growth comes job creation.
Chege’s butchery has so far created jobs
for five people.
He also plans to buy a meat mincing
machine using financial boost from
Jawabu Biashara, an institution he fondly
describes as ‘reliable and dependable.’
“Business relationship officers from
Jawabu Biashara visit to see how I am
fairing in business. Whenever there is
a challenge, they are always at hand to
advise.”
As he primes his business, his cordial
relationship with Jawabu Biashara gives
him the confidence to scale and thrive.
HUSTLE EAST AFRICA
25

SUCCESS STORIES
Esther Mwangi, businesswoman.
Aiming for the sky
With Jawabu Biashara as her financial pillar, former sales
supervisor hopes to build a small empire, one shop at a time
By Amos Wachira
There are two hallmarks of
entrepreneurship; ability to spot
an unmet need, and the agility
to provide a practical solution.
Esther Mwangi, an enterprising
woman from Kimbo, Ruiru subcounty
has both. When she was working as
a supervisor with one of the leading
tobacco manufacturers in the country,
she couldn’t fail to notice an unmet need
in her home area, Kimbo. At the time, the
small town was expanding fast, partly due
to the growth of several tertiary institutions
that had settled in the area. Kimbo’s
population was growing astronomically,
and the demand for household goods like
mattresses, sufurias and plastic ware was
rising.
Sniffing an opportunity, she quit a
well-paying job to try her hand in the
26
HUSTLE EAST AFRICA
Jawabu Biashara
business relationship
officers are readily
available to listen to my
challenges. They provide
help when I need them
world of business.
That was six years ago, when she
launched “Walucy For Quality Products,” a
fledgling company in the heart of Kimbo
town. Her merchandise includes mattresses,
bedding, household items, cookware,
cutlery and other associated household
items. Her target market is the burgeoning
student population of Kimbo as well
as the public.
“I always wanted to start a business that
could allow me to unleash my potential as
a sales person.”
Looking back, Esther says she made the
right decision to quit formal employment.
The fruits of her work are clearly evident.
“I started with one shop, now I have two
shops,” she says.
For her, she realized business growth
after she partnered with Jawabu Biashara,
a credit only microfinannce institution.
One of her friends introduced her
to Jawabu Biashara in 2018. Once she
learned about their innovative business
products, she decided to partner with
them in her bid to expand the business.
“It was the best decision for my business.
I needed to grow my inventory as
I prepared for the next phase of growth.
Jawabu Biashara came through for me.”
One of the things that have allowed her
to sustain a thriving relationship with her
financial partner is her determination to
repay her loans on time.
“You should be disciplinied. Loans
should only be used for the purposes they
were meant for,” she advises.
When it comes to financial loans, speed
of disbursement can make a lot of difference.
Most entrepreneurs need urgent
cash to fix their cashflow problems. That’s
where Jawabu Biashara comes in. It scores
its customers in real-time, advancing the
much-needed funding in the nick of time.
Because of this speed and reliability,
entrepreneurs like Esther are able to address
their financial needs in good time.
“Jawabu Biashara business relationaship
officers are readily available to listen
to my challenges. They provide help when
I need them.”
She also likes the convenience that the
financial institution brings to the table.
She uses a mobile app to get credit services
on the go. It also helps that the loans
are quickly disbursed through mobile
money.
She adds that the financial institution
has perfected the art of relationship
banking.
“They always come to you. My previous
financial partner could never do that.
Through this model, I’m able to work on
the business without wasting time.”
Having laid the groundwork for growth,
Esther has fixed her eyes on the sky. From
the current two shops, she intends to
grow the business to a network of shops
spread across different localities.
What does it take to succeed in this
kind of business? “You need passion, good
customer care skills and the determination
to succeed.”
Although she has steered her business
to a smooth tide, she says that the business
has its fair share of challenges.
“It’s a seasonal business. When schools
close, business is down.”
Despite the challenges, Esther is raring
to build a business empire in the near
future. So far, she has created one fulltime
job and is optimistic of creating even
more job opportunities in the near future.

FEATURE
Q & A
‘My first product launch was a total
failure,’-Dr. Moka Lantum, founder,
Micro Clinic Technologies Limited
Entrepreneurs usually have lots of
odds stacked against them. These
include limited capital, poor
governance structures, or lack
of proper book keeping services.
Little wonder then, that more than half
of start-ups die in the first five years of
business.
Hustle Magazine interviews Dr. Moka
Lantum, the CEO and Chairman of
Micro Clinic Techonologies Limited, a
successful medicine distribution startup.
Excerpts herewith:
Hustle: Give us an overview of your
entrepreneurship journey?
Moka: I started ZiDi in 2011. It’s a local
firm which supplies medicines to those
who need it most. Our main objective is
to improve access to medicine. ZiDi is designed
to improve the quality of maternal
and child health-care by facilitating the
diagnosis and treatment of common diseases
that affect women and children. It’s
the only E-health solution in Kenya which
is endorsed by the Kenya Medical Supply
Authority, World Bank, Microsoft and
Yahsat. It’s also approved by the Ministry
of Health in Kenya.
Hustle: How was your launch?
Moka: Our first product launch was a
total failure. Through funding from international
donor organization, we piloted
the product in big hospitals. This allowed
us to develop a unified platform for hospitals
and dispensaries.
Hustle: Launching a start up is
always a challenging exercise which
requires grit, determination and resilience.
Which challenges did you face
and how did you overcome them?
Moka: The main challenge was commercializing
the business in the private
sector. The iSikCure platform sought to be
the first responders in partnership with
local governments.
But marrying the two systems wasn’t
easy. First, our platform focused on non
communicable diseases, while the government
focused on maternal child health,
HIV/Aids and Malaria. We realized that
most households have people who need
more medicine.
Another realization was that not everyone
was rich enough to own a mobile
phone. Prescription was also a key area
of concern since most people did not
understand how that worked. To solve the
issues on the ground, we decided to build
hubs near dispensaries as part of our
distribution strategies.
Hustle: What has been your interaction
with the Sankalp Forum?
Moka: We applied in October 2013. We
were later informed that we had been
selected to pitch. After that, we were
assigned mentors and after pitching, we
emerged as second runners up.
It was a huge endorsement for us and
we got good feedback. Our initial pitch
was selling to government but we realized
that the government was good for
procurement contracts rather than for entrepreneurship.
The investor ecosystem,
however, doesn’t look at tenderprenuers
favorably.
Hustle: Any lessons that you learned
along the way?
Moka: First, most local businesses start
from need. Health care, energy, Agro,
financial inclusion are impact spaces.
Entrepreneurs fill that gap.
Secondly, I learned how to acquire customers.
The cost of acquiring them should
be minimal.
Finally, I became aware of the various
bottlenecks to growth. One of these is
funding. For most entrepreneurs in Africa,
funding comes as a grant. We simply have
no access to other kind of funding, like
crowd-funding. Crowd-funding doesn’t
work well here compared to abroad.
Hustle: Why is it hard for local startups
to attract funding?
Moka: It’s two fold. First, we are a capital
driven market. People will only put in
the money when the see the asset.
Secondly, service oriented entrepreneurs
always struggle to get funding. You
don’t get funding when you don’t have
collateral. That’s why you have to look
outside to get help from investors. Local
enterprises find it hard because they have
to reach a certain capitalization to access
local capital.
Hustle: What are your future plans?
Moka: I would like to first of all
maximize the current channel, then
build ISikCure brand to start attracting
partners. We also have plans to make the
brand more self sustaining. It takes three
to seven years to build a brand.
HUSTLE EAST AFRICA
27

FEATURE
Q & A
The Gabonese
Journalist Who Built
A Multi-Million Dollar
Media Relations
Company
Franco-Gabonese entrepreneur
Nicolas Pompigne-Mognard is
the founder of the APO Group, a
leading media consulting firm and
press release distribution service
in Africa and the Middle East. The company,
which Pompigne-Mognard founded
in 2007, employs close to 80 employees
across its offices in Switzerland, Dubai,
Senegal and Hong Kong, and has an
annual turnover of several million dollars.
APO’s bluechip clients include GE Africa,
Dangote Group and DHL among others.
Nicolas Pompigne-Mognard recently
stepped down as CEO of APO Group, and
will now assume the position of Chairman,
focusing on delivering high-level
counsel for APO Group clients and developing
his own investment fund dedicated
to Africa.
He recently recounted to Hustle East
Africa the story of APO’s early beginnings
and mused on the evolution of
the media relations business in Africa.
Briefly walk us through your entreprenuership
journey?
I was a European correspondent for
Gabonews, and I soon realised how
difficult it was to get hold of Africa-related
press releases, press briefings and official
statements issued by European-based
institutions, NGOs, diplomacies and
governments.
As a journalist, I needed to receive all
this information in order to stay on top of
everything that was happening between
Europe and Africa at a diplomatic, economic
– even a cultural level. To access
press releases, I had to subscribe to all
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HUSTLE EAST AFRICA

the mailing lists and RSS feeds. Most organizations
were only publishing their press
releases on their websites, naively hoping
that journalists would be constantly
monitoring them all to see if anything new
had been published. I was spending hours
and days trying to reach the relevant
people so they could send me their press
releases.
And as the European correspondent at
an African media organization, I was also
supposed to monitor all content issued
by African governments and institutions
about any European matter. Receiving
press releases issued by these organizations
was even more difficult. As I
struggled, I realized that it was extremely
problematic for any journalist to get all
this Africa-related press release content
– and that had some very bad consequences:
First, the inability of African journalists
to access this information was reinforcing
their dependence on Western media and
press agencies. Second, most of the press
releases issued by African governments
and African institutions never reached
the international media community at
all. Many even failed to reach the African
media community.
We have to remember that, back then,
international institutions like the African
Development Bank, the World Bank and
the International Monetary Fund were
having serious discussions about the role
of African media in the promotion of good
governance, and we were starting to hear
about the concept of “communication for
development” – that is the part media has
to play in the transparency and accountability
of organizations involved in public
investment in the region.
But what really triggered my decision to
act was a series of discussions I had with
the President of the African Development
Bank at the time, Donald Kaberuka, who
explained to me how crucial the dissemination
of news about Africa’s economy
was to the development of the continent.
We needed to reverse the tide and make
sure the international media community
and all African media had access to news
releases announcing new investments
in Africa, new CEO appointments, new
startups, new international events, new
awards and so on.
Of course, all this positive news is typically
spread via press releases.
A few months later, APO started signing
strategic agreements with Bloomberg,
Reuters, LexisNexis, Dow Jones Factiva
and other major international players to
guarantee the worldwide distribution of
thousands of Africa-related press releases
in a standardised, internationally-recognized
NewsML format for the first time.
That’s how it all started.
What else does the company do
apart from these flagship services?
APO Group manages an extensive variety
of services, ranging from TV and photo
production, distribution and monitoring,
to Online Press Conferences, government
relations and more. But what really makes
us unique is our ability to not only advise
clients, but also to implement their plans
using our own proprietary tools across all
54 markets of the continent.
And this is what our clients really need:
a single interlocutor with deep knowledge
of Africa, the tools to deliver the right
results and an ability to stand alongside
them in whatever challenges they face in
their communications strategies.
Most of our clients understand that the
most effective way to use APO Group is
not as an ad hoc press release distribution
function, but as a holistic consultative
partner.
57 of the biggest PR agencies in the
world work with us because they truly
understand the value of what we provide.
We have over a decade of experience so
we can benchmark their strategies at a
local level and throughout the continent
as a whole. Not only do we immerse
ourselves in their clients’ communications
plans, we implement them and provide
monitoring data to evaluate their success
and return on investment.
What were some of the challenges
you encountered in the beginning, and
what were some milestone moments
for APO Group?
It’s actually quite difficult for me to
mention milestone moments for APO
Group. When a company is growing fast,
you are living milestone moments quarter-by-quarter.
But I certainly encountered plenty of
challenges in the beginning!
I was a journalist. I studied law. I really
was not prepared to create, much less
develop a multinational company.
I built APO Group from my living room
– literally – and during the first years I had
to be the IT manager, the sales consultant,
the PA, HR, Finance, Marketing – everything.
I had to learn it all from scratch.
Not to mention, my English was very
poor.
I remember one day, I was calling the
head of communications at Boeing. I had
noticed they just made an announcement
related to Africa and I was hoping I could
convince them to try my press release
distribution service. The problem was my
English was terrible.
During the discussion, and most probably
to get rid of me, my contact says, “you
know what, why don’t you just send me a
quotation.”
“Quotation?” I had never heard that
word before. I didn’t know what it meant.
But with my tiny amount of English I said
“Yes, of course, I will send you a ‘quotation’.
Thank you, bye!”
And the first thing I did was to search
Google for ‘quotation’. I wasn’t even sure
about the spelling. When I realised that
the guy just asked me for an estimated
cost, I started doing somersaults. I called
my wife in to tell her the good news:
“Boeing just asked me for a ‘quotation’!”
And of course, I’d never done a quotation
before so we had to find a template on
the internet to create the very first one.
Since then I’ve never stopped learning.
The past 11 years have been a constant
education. And many mistakes have been
made along the way. My most rookie
errors in the beginning were hiring misjudgements.
I made poor choices with the
first three people I brought on board.
This is not a criticism of those three
individuals. They were my mistakes. I had
wrongly assessed the profiles and skills
the company needed at the time. I realize
that now. When turnover is starting to
take off, and the company is still very
small and fragile, you really have to make
the right choices or the dream can be
over within just a few months.
In my experience, creating and developing
a company is one of the most difficult
things a human being can do. It requires
a huge amount of time and energy, a lot
of sacrifice, a healthy lifestyle and a lot of
other ingredients too, which – even if they
are all put together with love and care –
do not always guarantee success.
It goes without saying, you will also
need a little bit of luck. The right encounters,
the right timing, not to mention (and
in my view, most important of all) the
unconditional support of a loved one or
family.
How has the media relations business
in Africa evolved over the last de-
HUSTLE EAST AFRICA
29

cade, and how has APO Group evolved
along with it?
What I think what has changed the
most is perception.
Ten years ago, I was in the European
headquarters of PR Newswire, in London.
At the time, they were considered the
leading global press release distribution
service and there I was explaining to
several of their senior executives how
Africa will soon represent a huge market
for press releases – and why it was time
for them to invest in the continent. It
was 2008, remember, and they basically
laughed at me.
Ten years later, APO Group is receiving
purchase offers, strategic partnership
offers and M&A transaction offers from
some of the leading players in the industry.
They are seeing unprecedented demand
from their clients for press release
distribution in Africa – and they simply
don’t know how to serve them. And this is
just the beginning. According to the World
Bank, the African population will double
by 2050, reaching 2.4 billion. The latest
United Nations population report, published
in 2017, says that by 2100 Africa
will be home to 40% of all humanity!
A recent McKinsey study said “Africa is
poised for economic acceleration akin to
the Asian boom”. There are around 440
US companies and 480 German companies
who have been operating in South
Africa for several years now. Today, most
of them are planning their expansion
across the continent to get their chunk of
this huge untapped market.
This will obviously translate into more
media relations spending, especially if you
consider a growing trend where communicators
are re-evaluating their mix of
advertising versus PR.
African consumers are becoming
savvier. They are starting to value news
and information above blatant advertising
– and that creates opportunities for the
media relations business.
In your experience, what are the
biggest problems that news agencies
are facing today?
It’s partly to do with this idea of African
evolution: More savvy Africans means a
better educated, more demanding audience.
Their expectations are higher, so
they require more diverse, better quality
content.
Talent will always mean the difference
between success and failure – so the
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HUSTLE EAST AFRICA
greatest challenge facing African media
houses is making sure their journalists
are meeting the expectations of their
audience.
How do you see the future of news
agencies, particularly regarding technology
and its changing role in the
news industry?
Clearly, continuous digital transformation
is key. Media houses must keep
evolving if they are to survive.
The days where they could rely on
advertising as a sole revenue stream are
long gone. Consumers are not browsing
for advertisements – they are browsing
for content – so that’s where the focus of
these outlets needs to be. The challenge is
to find new ways to monetize content and
invent new models.
One area we’ve been focusing on at
APO Group is media monitoring.
Right now, in Africa, it’s very poor.
That is partly because a lot of African
media are offline, and print, TV and
radio monitoring across 54 countries is
impossible to do cheaply and painlessly.
As the digitalisation of media continues
and technology improves, monitoring becomes
a critical part of the content value
proposition. It produces metrics, data and
insights that, in turn, encourage spending.
In the last few years, big international
media players have started to come to
Africa. CNBC, Euronews, Forbes, CNN and
BBC have all increased their presence on
the continent. If the international media
can see the potential, the African media
needs to make sure it keeps up.
What are your greatest accomplishments
at APO Group? Could you share
a ballpark figure of APO Group’s annual
revenues?
A lot of the work we are doing – around
70% in fact – is providing strategic advisory
services for leading multinational
companies, therefore many of our biggest
accomplishments are covered by non-disclosure
agreements. Our project managers
are in constant contact with some of
the most influential media in the world,
from CNN to CNBC, BBC to Al Jazeera, The
Financial Times to The Wall Street Journal.
We are organising interviews and media
events in the US, in London, in Oman –
but also in very complex African markets
such as Eritrea and Somaliland. That’s
something we are extremely proud of.
But I would say my greatest accomplishment
is to have turned my 10,000
euros of savings – which I invested to create
APO in 2007 – into a multimillion-euro
business without the aid of any loans or
investors. That means that, 11 years later,
I’m still the 100% owner of my company.
Why did you decide to step down
from APO, and what’s next for you and
the company?
Being able to create a company does
not necessarily mean that you are the
right person to develop it and allow it to
reach its full potential.
I built a race car. I did it on my own and
I’m very proud that the car can reach 300
km per hour. But just because I built it
doesn’t mean I’m the best driver to take it
to 300 km per hour. That requires another
set of skills.
Often, by sticking to the helm, the
founder of a company can become the
main obstacle to its development.
I’m not that person.
APO Group has huge potential. As we’ve
seen, the situation in Africa is such that,
in many ways, we are the right company
at the right time with the right services on
the right market. Our performance in the
last three years is proof of that – and if
you factor in the projected growth of the
continent as a whole, the figures will back
you up.
I always knew that someday I would
have to hand the reins to a “professional
CEO” so he or she could make sure the
company realises its potential.
The new CEO I have appointed, Lionel
Reina, has a fantastic track record in
helping companies scale up quickly and
break new ground. Lionel is the former
Vice President and General Manager for
Eastern Europe, the Middle East and Africa
at Orange Business Services, the B2B
division of French telecoms giant Orange.
He has also served as Middle East Director
in the Gulf region for Accenture.
Any advice for budding, young African
entrepreneurs?
It would be a very long list! And it would
really depend on which stage of the
company’s development you are in. But
if there are two things common to most
self-made entrepreneurs, it’s hard work
and resilience. If it was easy, everybody
would have already done it. If it was easy,
it wouldn’t have any value. You need be
ready to work 12 hours a day – and don’t
make any plans for the weekend, because
you’ll be working then too.
As for everything else I’ve learned? That
would take an entire book to cover…

Q & A
When you follow your passion,
money will follow you
For entrepreneurs, challenges are
the norm and not the exception.
Bill Mboya, chief executive officer
of Jebilton Ventures, has overcome
many challenges on his way to the
top.
Bill Mboya, CEO,
Jebilton Ventures.
He talked to Hustle East Africa Magazine
on the challenges, pitfalls and
opportunities available for young
entrepreneurs in Kenya. Excerpts.
Take us through your entrepreneurship
journey?
I launched a shoes enterprise in 2013
named Billian Boutique after quitting
my job in the corporate world. Using my
savings of Ksh 70000, I set up my business
in Nairobi’s Umoja estate. It was a success,
although there was a steep learning
curve.I had just left my job where I was
employed as a media analyst, and I felt I
would do better in business. I had a good
experience because I realised profits of
about Kes 30,000 every month.
At that time rent for the premises was
only Kes 3,000. However, I decided to
close the shop so that I could focus fully
on building my company.
I have this passion for entrepreneurship
and that’s how I chose business
over employment. Later on, I was able to
launch another company, Jebilton Ventures,
a business consulting firm.
How would you describe yourself?
I am a visionary leader who sets smart
goals and gets the job done. I think I’ve
already found my purpose, which is to
see small companies grow by engaging
in marketing and project management
activities that can create revenue.
What are your duties as the CEO?
Generally, my job is to carry out the
vision of the company, to lead, guide and
motivate the staff to achieve set goals.
I also attend networking events to meet
potential clients and evaluate the company’s
output against set targets, to make
sure we are making good progress.
What’s your routine like?
My day starts at 4 a.m. I spend the
first two hours checking my e-mails and
responding to them before preparing for
the day.
Between 6am and 9am, I usually attend
work-related meetings and by 10am I’m
always in the office.
My company deals with Marketing and
Strategic Brand Management, so I usually
have to do follow-ups on ongoing projects
to make sure my marketers and project
coordinators are on site and doing
I spend the rest of the day attending
any other meetings or offering consultancy
services to clients.
What’s needed for one to succeed in
business?
To succeed you need a vision, patience,
and the ability to work smart. Also, you
must always put God first in everything
you do.
You also need problem solving skills.
There is also need to invest heavily on
research. In this digital era, young people
should gain as much knowledge as possible
from the information that is available
online. They should also be risk takers.
I prefer trying and failing, rather than
not trying at all. It’s through failures and
mistakes that one learns and experiences
growth both in their careers and in their
daily lives.
What are the common pitfalls for
youth in business?
Putting too much emphasis on money.
When you follow money, you will not go
far.
But if you follow your passion, money
will follow you. The other mistake is lack
of patience. When some young people
face challenges, they quit too quickly.
Procrastination is the other mistake.
This habit of saying: “There is always next
time”, or “I’ll do it tomorrow”, is really
costing young people and has made many
lose out on opportunities.
What sacrifices have you made to
get here?
At one point I was without a job for
a whole year, but I stayed patient and
focused on my vision.
To start my company, I needed a capital
of Kes500,000. But when I realised that
this amount was barring me from reaching
my goal, I reduced it to Kes70,000,
which a relative helped me raise through
a loan.
I decided to start small and I am happy
with the steady growth the company has
enjoyed so far.
HUSTLE EAST AFRICA
31

FEATURE
Giving back to mother nature
Timothy Simiyu has built a thriving business out of a ranch
By Supram Goswami for Hustle East
Africa
Nestled in the leafy suburbs
of Karen, Achis Ranch blends
seamlessly with the lush green
vegetation of the Karen landscape.
The ranch offers horse
and camel riding lessons, and visitors
get a chance to ride quad bikes. Given its
prime location, and the fact that it’s set up
in a small forest, Achis is a polular picnic
site and entertainment joint, especially
for revellers who prefer to connect with
nature.
Most prefer the serene and quiet environment
to the hustle and bustle of the
city. Its not hard to see why it’s one of the
most sought after wedding venues.
Timothy Simiyu, 36, runs the expansive
ranch. A secondary school drop out, Simiyu
has built the expansive ranch, together
with the nearby Achis stables, through
sweat, perseverance and hard work.
He first came to Nairobi 16 years ago
soon after dropping out of school.
“I moved from Kitale to Nairobi in
search of a job,” he says.
Although he regrets dropping out of
32
HUSTLE EAST AFRICA
Timothy Simiyu.
school, moving to Nairobi set him up on
an entrepreneurship path.
After settling at his uncle’s place in
Karen, Simiyu took up jobs as a gardener.
Because he was hardworking and honest,
it didn’t take him long before his exceptional
gardening work got noticed by his
next door neighbour, a ranch owner who
operated a stable.
“I was fascinated by horses and camels.
In my free time, I could volunteer at the
ranch where I learnt more about horses
and camels.”
Seeing his enthusiasm, the ranch owner
could tag him along whenever he had
outdoor jobs at the nearby Carnivore
restaurant. Its here that he got some
lessons in camel and horse riding. Other

than benefitting from the free lessons,
Simiyu says he also realized that he was
earning more money from the part time
job than what he earned from his full time
job as a gardener and housekeeper.
Seeing an opportunity, he jumped into
it and became a full time horse rider. He
says that learning a new skill is important
because it opens up many doors. They say
that the two hallmarks of entrepreneurs
are the ability to spot opportunities and
the ability to take up those opportunities
to create a profitable business.
For Simiyu, he had already spotted an
opportunity to advance his life. As such,
he couldn’t waste any opportunity to learn
the ropes of the business. From dealing
with customers to handling children,
he soon became a master of this trade.
Unknown to him, this job would be a
stepping stone to success later on.
Before long, lady luck came smiling.
Tony Achesa, the ranch owner, permanently
moved to Australia, leaving the
expansive ranch in the hands of Simiyu
and six other farm hands. The whole team
was given 20% of the business to share
equally amongst themselves.
“Predictably, conflicts erupted along the
way as most of the new directors lacked
business mien,” he says of the aftermath.
When the new directors realized that it
wasn’t easy to run such a business, they
quit, leaving Simiyu in charge of the ranch.
With the management of the whole ranch
squarely resting on his shoulders, Simiyu
learnt the ropes of the business the hard
way. First, he realized that this was a seasonal
business. It didn’t take long before
the low season came calling.
“I had depleted all the savings as I
thought the business could sustain itself
throughout the year. When the savings
dried up, I almost starved. I could barely
feed or groom the horses or the camels.
So many times, while lying on the cold
floor, I contemplated throwing in the
towel.”
However, looking at the big picture,
he says that he had to persevere as the
business was showing signs of recovering
in the long run.
To kickstart the business, he knew he
had to reinvest the little money that he
earned. He first had to adjust his lifestyle.
With a modest lifestyle, his next step
was to set targets. These included repair
of stables, buying more horses, and employing
part time workers.
Months later, his plan gradually paid
off. For the first time in his new business,
As a school drop
out, Simiyu could
have given business
a wide berth, but he
chose to learn the
ropes of business
even with his limited
formal education.
he had the money to buy an additional
horse. Unfortunately, he didn’t have the
funds nor the means to transport the
horse.
“In entrepreneurship, I knew I couldn’t
give up, that is why I rode the horse from
Thika road to Karen. It seems impossible
until it’s done.”
He repeated the fete four times after
he acquired four more horses. Luckily for
him, the camel seller offered to deliver
the animals from Garissa to Nairobi, saving
the youthful entrepreneur the agony
of transporting the huge mammals.
It has taken Simiyu 20 years to painstakingly
built a business. Here are the top
lessons that he says he’s learnt over the
years.
1. Take risks
Simiyu says he took a great risk to soldier
on with the ranch business after his
co directors deserted him. His was a high
risk venture that needed lots of money
to sustain. Even without any money to
his name, he managed to change the fortunes
of the ranch. Today, its a successful
venture that’s a source of livelihood for
more than five staff members.
2. Perseverance is everything
Simiyu had to make personal sacrifices
run the business. In the formative
years, he had to sleep on a thin matress
in one of the stables. He also struggled
to make ends meet. Despite the odds,
he overcame the challenges through
perseverance.
3. You have to be passionate about
what you do
As the old saying goes, “if you love what
you do, you won’t have to work a single
day in your life.” This rings true for Simiyu,
whose business has become a lifestyle
rather than a commercial venture.
Simiyu loves to connect with nature.
Interestingly, even after the business
picked up, he still sleeps in a tent inside
the ranch. Initially, he spent his nights at
the stables, sharing space with the horses.
It takes passion to do this.
4. Treat your staff well and it will treat
your business well
Any business is as good as its staff. Staff
members are the brand ambassadors
of a business. If they’re happy at work,
they’ll spread the joy to the customers.
When this happens, the business thrives.
Looking at Simiyu interact with his staff,
you’ll be forgiven to think that they are
family members. “I treat everyone here
like family. That way, all of us are able to
deliver the best for the business, which in
turn rewards us handsomely,” he says.
5. In business, education is important,
but not the only requirement for success
As a school drop out, Simiyu could
have given business a wide berth, but
he chose to learn the ropes of business
even with his limited formal education.
In the world of entrepreneurship, it’s not
hard to come across successful entrepreneurs
who barely went to school. Simiyu
says that education expands your mind,
enabling you to think big. While it’s an
important aspect of success in business, it
delivers nothing if it’s not combined with
some business mien. To overcome the
education deficit, Simiyu says he’s learnt
to be street smart rather than being ‘book
smart’
“With good leadership skills, you can
get the best skills from professionals
even as you remain in charge of the core
business.”
Having turned around the struggling
business and set it up for success, Simiyu
has set his sights on an expansion drive.
First, he plans to partner with an investor
to construct a big hotel on the ranch. As it
stands, visitors at the ranch have to either
carry their own food and drinks, or make
do with the open grill on site.
HUSTLE EAST AFRICA
33

GUEST COLUMN
SOIL MANAGEMENT
Martin
Koinange
Research
has reported
an
increase
in maize
grain from
1 to 2.4 ton
per hectare
under ISFM
systems
compared
to the sole
use of mineral
fertilizers
34
HUSTLE EAST AFRICA
How Soil Fertility
Management Could Enhance
Food Security
Low crop productivity is a perennial problem
in Kenya among smallholder farms. It’s
a direct result of various unaddressed
factors which include; the exponential
decline in soil fertility, high fertilizer costs
and the intensification of agriculture coupled with
the reduction in farm sizes. In addition, chemical
fertilizers do not directly improve the soil’s physical
structure or enhance its biological activity. They are
often insufficient when it comes to maintaining soil.
Based on these major limitations to crop production,
research on soil fertility, crop nutrition and
socioeconomics in smallholder farming systems has
been done in Sub-Saharan Africa (SSA) and shown
that combined interventions on fertilizer and organic
inputs coupled by use of improved crop varieties
are a prerequisite for achieving high and sustainable
yields. Integrated Soil Fertility Management
(ISFM) builds on this notion and is defined as: a set
of soil fertility management practices that necessarily
include the use of fertilizer, organic inputs, and
improved germplasm combined with the knowledge
to adapt these practices to local conditions
with the aim of maximizing the agronomic use
efficiency of the applied nutrients and improving
crop productivity.
The use of improved germplasm enhances yield
potentials as well as combat pests and diseases.
Mineral fertilizer-use in ISFM targets the formulation,
placement, rate and timing of inorganic
nutrient inputs. Integration of different fertilizer
placement and/or rate practices such as micro-dosing,
deep placement, banding, and harmonizing of
inputs with rainfall and nutrient demands enhance
nutrient uptake and productivity of crops. Interventions
on organic resource management targets the
return of crop residues and use of manure, compost
and other types of organic wastes. Additionally,
crop rotation or intercropping with legumes and
use of beneficial soil micro-organisms make an integral
part of ISFM. The last entry point of ISFM deals
with any other amendments that may be needed
to reduce the limitations to productivity such as
correction of soil acidity, micronutrient deficiency,
erosion, soil compaction or pests and diseases control
measures. On the other hand, local adaptation
of nutrient management refers to specific decision-making
processes in relation to the allocation
of agro-inputs and management practices at the
farm level, thus recognizing production objectives,
resource endowments, and farm-specific soil fertility
conditions.
The combined application of mineral fertilizer
and organic inputs is practical to smallholder
farmers because; (i) both fertilizer and organic
inputs are often in short supply in smallholder
farming systems due to limited affordability and/or
accessibility; (ii) both inputs contain varying combinations
of nutrients and/or carbon, thus addressing
different soil fertility-related constraints; and (iii)
extra crop produce can often be observed due to
positive interactions between fertilizer and organic
inputs. ISFM fits well with small scale farmers due
to its wide applicability across different soil types,
cropping systems and resources endowment.
Research has reported an increase in maize grain
from 1 to 2.4 ton per hectare under ISFM systems
compared to the sole use of mineral fertilizers. The
higher productivity and yield stability achieved in
the ISFM system prove that the practices significantly
strengthen the resilience of crops to climate
change impacts. Additionally, soil organic carbon
content (an indicator of soil fertility) increases when
fertilizers and organic inputs are combined as compared
to when either is used solely.
Despite the significant benefits of ISFM in food
security, the adoption of practices in African smallholder
systems is usually low and incomplete due
to; high costs of input and poor produce trading,
shortage of credit facilities for making initial investments,
high cost and limited availability of labor,
small land sizes, lack of information about the soil
status and rainfall forecasts, scarcity of organic
inputs and competition of crop residues with livestock.
Regardless of these challenges, ISFM remains
the most sustainable solution to food and nutritional
security among smallholder farmers.

HUSTLE EAST AFRICA

FARMING
RABBIT FARMING
Rabbit farming:
The new money spinner
A farmers lobby is helping rabbit farmers to create wealth
By Jeff Korir
For Peter Waiganjo, rabbits are not just pets, but a viable
money spinner.
For the last 20 years, he has created a thriving
business around rabbits. So passionate is he about
this industry that he also helps other farmers to create
wealth through rabbit farming. The King resident is the chairman
of Rabbit Breeders association of Kenya, a farmers lobby that
spearheads rabbit farming in Kenya.
Rabbit farming, like any other trendy venture, gained momentum
after a new breed of farmers joined the industry and
popularized it as a lucrative commercial venture.
“The growth of the industry is a good thing. Unfortunately,
there are people who joined the industry and promised great
things, like an export market for rabbits, but failed to deliver,”
he says. When the rabbit farming boom failed to translate into
millions for most farmers, there was a lull in the industry as
many farmers exited.
As a result, most farmers kept off the industry leading to a low
supply of rabbit meat. As if that was not enough, most farmers
likened the rabbit farming to the infamous quail farming scandal
of 2014.
“There is an information gap in the market about rabbit farming,”
says Waiganjo. “We realized that if we came together to give
people the right information, then, rabbit farming could become
a real money spinner.”
His organization was created to solve some of the main challenges
that farmers were facing, including inadequate farming
knowledge.
RABAK came into an industry that advocated for consumption
of rabbit meat, yet, lacked a proper slaughter house. “There was
36
HUSTLE EAST AFRICA

also a challenge with rabbit breeding as
we have only one government-owned
breeding station in Ngong.”
RABAK came on board with the main
aim of streamlining this sector. It aimed to
help the rabbit farmer make some money
from rabbits.
“When we came, we decide to also
venture into rabbit value addition. As it
stands, the industry lacks a proper value
addition model, meaning that all the other
by products of rabbit go to waste, including
the skin.
“We partnered with the government
to make this industry a success. So
far, we have a slaughterhouse in Thika
that slaughters over 300 rabbits every
Wednesday, thanks to the partnership.”
Other than this, RABAK, in partnership
with the government, is working on modalities
to add value to rabbits.
“We are in talks with Kenya Leather
Board to see if we can tan rabbit skins.
As it stands, the board doesn’t tan small
skins.”
Additionally, RABAK processes rabbit
meat to make sausages. However, with
the low supply of rabbits, this value addition
endeavor seems unsustainable.
With over 600 members, RABAK is a robust
organization. Its members are located
in different parts of the country, from
Mombasa, Nairobi, Muranga to Kitale. The
organization also partners with supermarkets
and hotels to enable farmers to sell
their rabbits to the mainstream market.
We partnered with
the government
to make this
industry a success.
So far, we have a
slaughterhouse
in Thika that
slaughters over
300 rabbits every
Wednesday
“The demand for rabbits is high and we
struggle to meet it,” says Waiganjo.
One of the biggest challenges facing
rabbit farmers is logistics. Transporting
live rabbits is not easy, as Waiganjo
reckons. RABAK, working closely with the
government wants to set up small slaughter
slabs in all counties to make it easy for
farmers to deliver ready meat.
Furthermore, RABAK buys rabbits from
the farmers and sells them to consumers.
One good thing about their buying model
is that they pay farmers instantly.
“Farmers also have the benefit of
knowing they get the best out of their
rabbits. We are certified by Kenya Bureau
of Standards and other certification
organizations to slaughter, sell and supply
rabbits countrywide.”
However, one of the challenges that
RABAK grapples with is the size of rabbits
being delivered by farmers. “We slaughter
rabbits which are three kilos and above.
As you might be aware, rabbits lose half
their weight after slaughter.”
He says there’s need for farmers to get
quality breeds that mature fast if they
need to make rabbit farming a profitable
venture.
With the ongoing healthy eating trend,
rabbit meat is also becoming a popular
item on the menu as it’s categorized as
white meat. Despite the demand, rabbit
farmers suffer from a few prejudices,
including being seen engaging in a hobby
that’s meant for small boys. Fortunately,
most farmers are making good profits
from rabbit farming and this goes a long
way to dispel the myths.
RABAK is also involved with training of
farmers. By organizing them in groups,
the organization holds seminars and
workshops across the country to train
farmers on the best farming practices,
The organization is motivated by the
increasing demand for rabbit meat, the
reason it wants to recruit more farmers.
“We get many orders from different
organizations. Unfortunately, we cannot
meet this demand,”
Waiganjo says the future looks bright
for rabbit farmers. First, the export market
is big, and could soon need over six
metric tons of rabbit meat every month.
“Export market is on our sights,” says
Waiganjo, who has reared rabbits for two
decades.
In the next five years, RABAK wants to
help local rabbit farmers get a share of
the international rabbit market. In the
meantime, the organization is trying to
meet the demand for rabbit meat at the
local level.
HUSTLE EAST AFRICA
37

MDF PARTICLE BOARDS MDF MOULDED DOORS
PLYWOOD CEILING BOARDS
POWER TRANSMISSION POLES
TIMBERS PRODUCTS PRE-LAMINATED BOARDS
FURNITURE PRODUCTS
HUSTLE EAST AFRICA

HUSTLE EAST AFRICA

HUSTLE EAST AFRICA