Nairobi's traffic is not good for business

Today all radio stations are warning Nairobi commuters about the traffic. It began yesterday with the imminent arrival of Barack Obama's number two Joe Biden. Add to that today he is meeting President Kibaki and Prime Minister Raila Odinga while Parliament opens a new session - meaning everyone is texting each other "avoid town"!.

Then there is the massive road works project being undertaken throughout the country with the promise of making Kenya a super highway for domestic and cross-border trade. With the liberalisation of the market that has spawned a new generation of car dealer entrepreneurs whose used car imports cannot quench the market; this should have been the dream Kenya's Vision 2030 policy plan speaks of.

Alas that is not the case. Traffic jams have become the stock in trade. And the problem is not that one has to leave home before the crack of dawn just to get to work on time; but there is also the environmental problem with sub-standard cars jamming the streets spewing fumes to the detriment of the ozone layer. 

Before the cry of Nairobi motorists was "those matatu drivers!". However today, even though matatu's still drive helter skelter, traffic jams still clog the streets.

Though it is commendable that the road work projects have the overall goal of reducing transport costs within Nairobi; for entrepreneurs the costs of being not just located in the Central Business District but now further afield in locales such as Westlands and Kilimani has meant that human traffic walk-in enterprises have had to readress their business models. 

For the rest of us, we wonder what time we will get home today and what time tomorrow we have to wake up in order to get to work on time. 

Entrepreneur Profile: Sospeter Amenya

Sospeter Amenya of BenCro Transition Designs is a Kenyan social entrepreneur whose work mainly involves designing websites and developing custom software to help in various aspects that are aimed at creating more opportunities for the impoverished society. 

We recently got a chance to interview him regarding the importance of determination to venture into enterprise as well as his future aspirations. 

Here is a snippet of the interview:

Yipe: When and why did you decide to be an entrepreneur?

Sospeter: After doing my IT course at Jomo Kenyatta University of Agriculture, (JKUAT) I started my business soon after graduating in 2008. I had to tarmac (look for a job) for a considerable time before I made a decision to start a business. I also wanted to get start up capital for my business. 

I didn’t get a job though. So the idea of joblessness hit me hard and I started thinking of other means. I decided to put my skills in practice and I joined hands with my friend and started a freelancing webdesign business working from the briefcase. It was not registered though.

In the process of searching for clients, we bumped into one corporate client, an NGO that paid us Ksh 20,000. We used the cash as our starting capital to buy a desktop. And this is how we started. The business is now registered and almost 1yr old.

So the sole reason for starting is unemployment and the urge to create opportunities in future.

Yipe: What has been your learning experience in your business venture?
Sospeter: One failure makes me sharper to cut through the next and the end result is always success.

Yipe: What’s the most challenging aspect of being an entrepreneur from your perspective?
Sospeter: The challenge is lack of understanding from the people you must work with, particularly some clients. Secondly is accessing finance and the long process of business registration. Make it online would encourage others to start their businesses.

Read the rest of the interview here »»

Invitation to Entrepreneurship Bootcamp

Seed Capital Investment Ltd  has been established to offer support to young people, businesses and to entrepreneurs in Kenya. It's focus in Kenya is to offer an avenue where those who are in business or aspire to be in business can access information; advice and support that can assist them succeed. 

All projects and programs are facilitated by company directors who are entrepreneurs and managing their own businesses bringing in a wealth of practical experience in business startup and management.

As part of its objectives in supporting entrepreneurs in starting up and fine tuning their businesses, Seed Capital have organized a workshop to address the issue of acquiring funds and starting small and medium enterprises in Kenya under its Youth In Business Program. 

The workshop is on 5th and 6th May, 2010 at the company offices off Ngong road, behind Coptic Hospital.

After the workshop, participants will document their ideas and present them live to a panel of prominent investors for possible funding after which they will receive ongoing business guidance and mentorship until they have formed successful companies which will create employment to other youth.

For further information, please contact:

Rhoda Mwihaki,
Coordinator,
Youth in Business Program,
Seed Capital Investment Ltd.
1 Kindaruma Lane, off Ngong Road,
P.O. Box 4720, 00200
Nairobi Kenya
Tel 020 807 1309, 0710 492836, 0731 535018

www.seedcapitalinvestment.com

Missing files and Tender Entrepreneur Brokers

“The abuse of entrusted power for private gain is always fine for the one person doing it, but it becomes catastrophic if everybody starts doing it.” - David Pitt-Watson

Last night on the news, Kenyans got to witness Dorothy Angote, the Permanent Secretary in the Ministry of Lands leading what was a day-long graft busting raid on junior officials in her Ministry. The Ministry which handles nearly five million title deeds, has been continuously been named as being one of the top most corrupt public institutions in the country. For her efforts, the PS unearthed thousands of files that had been stashed, some of which had been “missing” since the 1990s.

Kenyans have long become used to the phantom menace called “missing” files. The ghost appears out of nowhere just when one needs to undertake a transaction with the government.

Anyway, Dorothy Angote’s impromptu raid at least saved some Kenyans from the cartel of rogue officers at the Lands ministry as well as what we shall politely call brokers, agents or tender entrepreneurs.

However, Ms. Angote’s prescription to the problem falls short of expectation when she announced that there would be a reshuffle and disciplinary actions for the errant officers. If the Lands Ministry was a private business, for sure at least there would have been mass summary dismissals, if not court prosecutions. To send a clear message, the punishment must be clear.

Kenya has not been alone in handling rogue brokers that encourage public sector corruption. South Africa has also been dealing with such brokers who because of their close connections to the political elite, seem to be amassing great wealth to the detriment of hard working entrepreneurs.

Bobby Godsell the chairman of Business Leadership South Africa was recently mentioned in the media calling for South Africans to stand up to tender entrepreneurs who benefited from state contracts.

He likened this business practice to "a form of economic terrorism" that imposes “a cost on state services and conferring no benefit”.

This came in the wake of allegations that the country’s ruling party ANC’s youth leader Julius Malema's who the BBC recently described “28, a little overweight, impeccably dressed, and rather fond of referring to himself with the royal ‘we’” had irregularly personally benefited from lucrative government contracts. However, Mr. Malema has denied accusations of unearned wealth by saying that he is merely the victim of a political conspiracy and a racist plot.

Indeed Malema is just another example of South Africa’s “bling culture” which has for some compromised ethical business behaviour. Entrepreneurs have had to be linked to a politically connected personalities in order to effectively compete on the public sector market.

Closer to home, business cronyism in the tender sector has led to great resistance each time the government tries to institute measures that will even out the information asymmetry when it comes to public procurement. 

As we mentioned almost two years ago, the broker sector in Kenya has also become a culture where:

“You need a middle man to manoeuvre public processes. For instance, if one goes to the companies, lands or court registries, you have to more or less fight your way to the front of the queue. Brokers have taken precedence and because they have managed to become acquainted with the public officers, they tend to get their work done first … “

And it is this lack of transparent systems and promulgation of red-tape that have been a boon for the broker community. The cost imposed on not just entrepreneurs but every taxpayer in muddling through bureaucratic systems is what ensures that brokers shall always be in demand. After all, the opportunity cost of giving a broker a facilitation fee and lunch money to ensure that your application is submitted or your file is found, is much less than the cost of having to leave your business in order to chase up the matter yourself.

Then there is the issue of business competitiveness which has also had an impact on the need to fast-track (at whatever cost) government procedures. Bending the rules and paying the occasional bribe just to get a process fast tracked or even to be awarded a contract are common dilemmas faced by today’s entrepreneur. Moreover if one is doing it, then you can bet that others just to stay ahead of the competition will also do so.

It has now become recognised that an important catalyst to business growth is enabling entrepreneurs to compete on the public procurement market. And it is encouraging that young entrepreneurs are taking on the bottlenecks in the public sector, and developing new applications that equalize information asymmetries and promote transparency whilst combating public sector corruption. One such business is Tenders Unlimited, a new Kenyan business startup that provides databased access to tenders to business people.

Reducing the opportunity costs of red-tape frees up resources for more productive activities as well as spurring wider economic growth. Thus computerization of government documents should be implemented.

And finally to put rogue brokers out of business, procedures that require in-person attendance should be minimised. As seen by the influx of mobile phone money transfer systems onto the market, banks are now joining the fray and offering mobile payment systems that will eliminate the need for people to stand in long queues just to get their bank statements. Without ZAP and MPesa, chances are that the traditional banks would not have brought banking services closer to the people.

Now we are asking the government to bring it’s services closer to us taxpayers too.

 

Statement from Professor Wangari Maathai on the Mau Forest Complex in Kenya

Press release, December 2, 2009

Nations of the world are preparing to meet at Copenhagen for the latest round of negotiations to agree on a global treaty to limit greenhouse gas emissions. It is expected that reafforestation, and reduced deforestation and forest degradation, will be key solutions to the climate challenge.

It is extremely important, therefore, for Kenya to be seen to support protection and conservation of forests, including the Mau, which at 400,000 hectares is the largest forest complex in East Africa. Twenty-five percent of the Mau has already been destroyed through human settlements, cultivation of crops and monocultures, and grazing of livestock. Along with the other four water towers, the complex supports the livelihoods of more than 70% of the people who live around them. Some rivers from the Mau complex flow into trans-boundary lakes, including Turkana and Natron, the breeding grounds for flamingoes, and Victoria, the source of the Nile.

The value of the Mau complex is enormous, with respect to the various sectors it supports. It plays a significant role in regulating rainfall patterns and the climate, and in making possible agriculture, power generation and tourism. Experts have already warned that the continued destruction of the Mau forest will cause catastrophic environmental damage, resulting in massive food crises and compromising the livelihoods of millions of Kenyans, and the possible collapse of the tourism industry. 

While the Kenyan government has a responsibility to ensure that all Kenyans are taken care of, it is also true that no settlements should have been allowed in the Mau forest in the first place. While the government was wrong to encourage these settlements, it cannot hold millions of Kenyans hostage in an effort to justify its own mistakes or appease people it misled. Therefore, the Hon. Prime Minister Raila Odinga and the government are right in demanding that all human settlements in the Mau and other forests cease.

While neither the PM nor the government has all the solutions for the Mau complex, and indeed for all the internally displaced people in the country. Therefore, what the government needs is support both from within and without in order to meet the challenge. Politicians are being hypocritical when they pretend that all displaced Kenyans are not equally in need. National leadership should be seen to care about all Kenyans, and not be driven by self-interest. But when it focuses on only certain communities or regions, it ceases to be national leadership and instead becomes tribal leadership. 

With that kind of ethnically-driven leadership, Kenya is doomed. Indeed, it is that kind of leadership that led us to settle people in gazetted forests in the past, allowed leaders to allocate themselves public goods, or incited Kenyans to kill each other after the 2007 election. Kenyans should be commending the Prime Minister for providing the right kind of leadership, and should be encouraging him to move ahead with the ongoing efforts of saving the Mau and all our forests—for the sake of present and future generations.

Community Youth Katiba meetings

Following the publication of the Harmonised Draft of Kenya's Constitution, the Community Youth Katiba meetings have now been confirmed.

The community meetings will be low cost activities whose purpose is to collate the views of the youth in the draft constitution. The meetings in the provinces will last between 3 and 5 hours maximum.

The Community Youth Katiba meetings schedule is:

1. Western Province (Busia, Bungoma, Kakamega) 7th December 2009

2. Nyanza Province (Kisumu, Kisii, Siaya) 8th December 2009

3. Rift Valley Province (North Rift, Nakuru, Narok) 9th December 2009

4. Central Province (Nyeri, Thika, Kiambu) 10th December 2009

5. Nairobi Province (North, South, East) 8th and 11th December 2009

6. Eastern Province Embu, Meru, Machakos) 12th December 2009

7. North Eastern Province (Wajir, Mandera, Garissa) 14th December 2009

8. Coast Province (Voi, Mombasa, Malindi) 15th December 2009

9. Collating of the views and Presentation of the memorandum to the CoE on 17th December 2009 

For more information, contact:

Emmanuel Dennis Ngongo
Convener - NYC

P.O. Box 8799 - 00200
Nairobi Kenya
Cell: +254 722619005
http://emmanuel-ed.blogspot.com/
Twitter: http://twitter.com/Emmanueldennis
www.nyckenya.org

Read the Harmonised Draft of Kenya’s Constitution here

Kenya’s IDP crisis: Only history can judge our collective inaction

In the aftermath of Kenya's 2007 general election over half a million people were displaced. Fleeing homes, loosing livelihoods and loved ones. To date some of the 2007 internal refugees still remain both in camps and transit sites. Yet the anomaly of internal displacement is not new to Kenya. From pre-independence, many Kenyans have been forcibly removed from their homes, having to settle elsewhere as refugees within their own country.

In contemporary history, the IDP crisis has been closely linked to the country’s electoral process, particularly with the advent of the country’s multi-party era. The crisis became the proverbial elephant in the living room – a topic that was too taboo to mention. For years following the post-election clashes of the 1990s the Moi regime swept the issue under the carpet, maintaining that there were no IDPs. However, with more freedom of expression and opening up of the media airwaves, the plight of IDPs has gained more limelight.

Kenya’s internal conflict has been almost like clockwork set to the political scene during general election years of 1992, 1997, 2002 and 2007 as well as the constitutional referendum of 2005. Every five years people have had to flee their homes and that is why the IDP situation falls into the category of a “complex emergency”.

So why term Kenya’s IDP crisis a complex emergency? For the simple reason that unlike natural catastrophes, people loose all they have in a matter of minutes yet the underlying cause is politically instigated and conflict-generated (Macrae and Zwi, 1994).

The United Nations’ Office for Co-ordination for Humanitarian Affairs (OCHA) (which draws its definition from the UN's Inter-Agency Standing Committee) defines complex emergencies as ‘a humanitarian crisis … where there is total or considerable breakdown of authority resulting from internal or external conflict …. (IASC, 1994). However, this reliance on authority breakdown has been criticized. David Keen author of the book "Complex Emergencies" writes on OCHA's definition having shortcomings arguing that in the case of 1994 Rwanda, the problem was not so much the breakdown of authority, rather that the "authority" being imposed was "ruthless” and had “vicious efficiency".

Indeed Kenya has always had a government, and the UN Guiding Principles on Internal Displacement stipulate that it is this same government that should ensure that the IDPs receive requisite humanitarian assistance, are resettled and reintegrated back into society. However the Kenya government has mismanaged this obligation.

The Government’s Ministry of State in charge of Special Programmes initiative to resettle the nation’s IDPs has been dubbed “Operation Rudi Nyumbani” (return home) which includes financial assistance and transport among other short- term measures.The causes of displacement and obstacles to resettlement have not been adequately addressed and the Ministry's stop-gap activities have failed to assure Kenyans that the Operation is not just a PR exercise so the government looks good to donors.

There has also been a disturbing tendency where anyone (whether an IDP or an interested party such as the Kenya Human Rights Commission) who questions how an unaccountable government can accountably distribute funds and materials to IDPs are met with torrents of abuse and muzzling.

Queries on government commitment and initiatives to assist IDPs to ensure long-term peace have centered on: poor co-ordination and corruption; insecurity; child and gender based violations; inadequate shelter and compensation for loss. The Kenya Human Rights Commission in an October 2008 report “A Tale of Force, Threats and Lies” even accused the government of forcing IDPs to go back to their homes.

As for the UN and those that adhere to the IDP Guidelines and rules regarding complex emergencies, they have been confined in that they have to deal with the government of day and trust that the government will most effectively and equitably distribute humanitarian assistance. However when the lives of people and those of future of generations are at stake, a dire need emerges to make sure that this complex emergency does not become a permanent one. It is thus imperative that the international community demands that the government ensures that the rights of all IDPs are upheld.

Indeed recent political events have shown the danger of inaction in enforcing strict observance of ethical standards regarding resettlement. Just last week, the government decided to compensate settlers in the Mau forest. This is hardly the first time such a compensation scheme has been conceived, however the common occurrence has been that the majority of the money falls into the pockets of the fat cats who grabbed the land.

The eponymous Ndung'u report which investigated illegal allocation of public land, lists no less than the families of former presidents Jomo Kenyatta and Daniel arap Moi as those who grabbed public property earmarked for squatter resettlement. On this issue, Nobel Laureate Prof. Wangari Maathai was today quoted in the media saying, “… the Kenya government does not have money, it’s your taxes. So if they don’t have taxes they will ask the World Bank to give them money to come and compensate leaders who misused their power (to acquire) land they should never have acquired …”

As it is, the Ministry of State for Special Programmes requires more funds which will come from the National Budget and the excess from donors. Isn’t it about time to first question whether Operation Rudi Nyumbani has been a success and whether indeed the government should still spearhead IDP assistance?

In August 2000, Fr. John Anthony Kaiser, a crusader for the rights of internally displaced persons was murdered. He was vocal speaking out on the injustices meted out to the displaced. However, almost a decade later, even more people languish miserably exiled from their homes.

As it is who knows how many more people will join the ranks of IDPs come the next general election, or for that matter the anticipated constitutional referendum? We also need to re-examine our outlook towards Kenya’s IDPs. In an age of reality television where shows such as Big Brother Africa keep viewers glued to their screens; alas when it comes to our brothers and sisters living in camps we are no longer voyeurs. Indeed, there is no difference between our IDPs and those in Darfur, yet though our eyes face the screen watching news stories on their plight, we no longer see the real suffering; we no longer question why this is happening; we only say a silent prayer that come 2012, we will not be the ones taking up airspace as IDPs.

Is it only in Kenya where we have become immune and impervious to news stories on corruption, impunity and gross violations of human rights? Could this be because this is the country where even those that engineer and carry out grand larceny on our nation’s coffers have the opportunity to transform themselves into televangeslist? Is that why we do not find it dysfunctional to watch the IDPs in their tattered clothes which cover emaciated bodies and hold up despondent faces?