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Startups in Kenya

• April 04, 2007
• 1:51

  Barcamp .... Wow!

   » ‎ Startups in Kenya

  I know, I know its way past Saturday and I promised to write this by 6pm Saturday, but the iBurst link we were using at Barcamp misbehaved and afterwards I have been either offline or otherwise occupied :).
  
  If I had to sum up Barcamp, I'd say WOW! Although not that often, I have attended forums with great ideas and great personalities. What made Barcamp different though was the passion behind these ideas and personalities. Each presenter who came on stage was intense in his (sadly there were no 'her' presentations) presentation. Kiania, the MC, had to work hard to make sure there was enough time for everyone to speak.
  
  Starting off Barcamp was Josiah Mugambi with a Bugatti Veyron presentation. This is one presentation I was really looking forward too but sadly I never made it on time. Apart from some LMS preparation of GEC brochures I spent almost 15 minutes looking for parking (I'm going to be a green from now on - walking is good :-) )
  
  I did make it on time for AFRICADOTNET.net by Edgar Okioga. Apart from myself Edgar must have been the most Microsoftian barcamper in attendance. He did surprise us though by giving out free copies of MSDN Community Distribution CDs marked "Please copy and distribute". Who'd have ever thought?
  
  Kamau Gichigi Ph.D was next with Equal Opportunity Manufacturing and this was one presentation I wish had been allowed more time. He's an engineer so there was a lot of techno-jargon which flew by me, but a business incubator for manufacturers did stick and I'm keenly looking forward to seeing how it develops. The idea is called .... IDEA. Kamau mentioned that a website is in the works but I no URL was given, I will track him down and see if I can get it.
  
  JKUAT seems to be really serious about their IT programs. There were two great presentations that showed ingenuity of the students. The first was from Nick titled "Software Defined Radio". Nick is a self confessed techie and although I grasped the general idea, TLAs were in plenty.
  
  We then had Ashok who talked about Bungeni, an open-source parliamentary system. I really was intrigued by his project since it mirrored a lot of the work I had done on LawsofKenya.com. What really impressed me though was the fact that it is open-source and designed to bring the common mwananchi into the parliamentary process.
  
  Felix Kiptum of Mama Mikes was next with a talk on the Long Tail Economics of Abundance. a really interesting theory on how technology has made it possible to produce products in few numbers and still have a sustainable business.
  
  At this point I was called to attend to some pressing business outside the barcamp and I missed David's and Riyaz presentations on Residential Networks and Skunkworks, but I'll be attending the Skunkworks meetings so I'll be giving you the low down on these two.
  
  I made it back to hear Ted Muganda's presentation on Stocks Kenya. Amazing story and really made me think about how Stephen and I started SoftLaw. We didn't really have any idea how big it would become when we started, but as it went on it got a life of its own. Stocks Kenya from Ted sounded like it had a similar genesis.
  
  Next was a really inspiring presentation from another JKUAT student. This time it was about
  a LAN/WAN that students had built for themselves between their residential halls. Totally financed by the students the network has encouraged content development e.g. a dating service for the students, and is financially self-sustainable. From the presentation it sounded also like a "wiki" network where any person could add a node or a subnet. Internet service is provided over the network through a prepaid billing system accessed on the intranet. Lots of potential exists and I'll definitely be researching more into this. Credit also to Moi University who have implemented a similar setup. Great challenge to University of Nairobi, although they have access to probably the best resources, their counterparts around the country are leaps and bounds ahead in terms of innovation.

  
  Next up was .... (drum rolls) ... Harry Karanja. Just before I got up I was told to try and keep it within 10 minutes. That was going to be tough, I had to talk about LawsofKenya.com, Genius Executive Centre and this blog in 10 minutes! Luckily most of the stuff I would have talked about: website startups, Kenyan laws, and business incubators had been mentioned by previous speakers. I gave a summary of LawsofKenya and GEC with a Harry Karanja angle and saved sometime to talk about IdeaPool. IdeaPool was a forum that me and seven (Karis, Mibuari, Meg, Stacy, P.King, Andrew & Irene) of my pals/workmates (from Strathmore) started back in 2001. Mostly it was about meeting at Java House cafe on Muindi Mbingu on Saturday afternoons and stuffing ourselves with confectioneries. But we also had big ideas, like volunteering to teach secondary school students about IT and entrepreneurship. Sadly IdeaPool never really picked up steam, and I guess one major reason was the inability to bring more people on board. This is one reason I really loved the barcamp experience. Barcamp also demonstrated that with the internet especially wikis and blogs such forums have access to a much larger audience. I'm hoping that Barcamp will be all that IdeaPool aspired.
  

  
  

  As barcamp came to an end, I felt like we had only scratched the surface of the ideas and opportunities existent. Kiania, rightly said that it is a great time for technological innovation in Kenya with the current political leadership (Mutahi Kagwe and his PS Bitange Ndemo). I agree and you can be sure that I will be right in the thick of things!
• March 31, 2007
• 6:28

  Barcamp in session

   » ‎ Startups in Kenya
  15:09 EAT
  
  Q: How do you know whether you are in a techie zone?
  
  A: Everybody talks in TLAs (three letter acronyms) and they all understand each other!
  
  Barcamp Nairobi 07 is definitely a techie zone. CNC, GNU, USRP, MIT etc. I'm realising I need to touch up on my IT diploma notes. The atmosphere is great, I always love being around intelligent people, and there is no shortage of them here. I'm yet to give my presentation but expect to write about it as soon as its over (thanks to WiFi)
• March 30, 2007
• 5:02

  Barcamp Kenya

   » ‎ Startups in Kenya
  Tomorrow (Sat. March 31st) Barcamp holds an interactive gathering at the University of Nairobi , Civil Engineering Lecture Theater AT 1PM. The theme will be technology, media and startups. I'll be talking about this blog as well as LawsofKenya.com and Genius Executive Centre. Everyone is invited and best of all its free.
  
  See you there.
• March 24, 2007
• 13:06

  The Victorious Minute

   » ‎ Startups in Kenya
  Today I was reading an article by HR consultant Annabell Karanja in the MyBusiness entrepreneurship magazine. The author spoke of the challenges facing those going through the transition from employee to entrepreneur. It got me thinking about some of my own experiences.
  
  Granted I was never employed for long (about 1 year) but I nevertheless picked some habits which were hard to shake once I decided to go into my own business full time. As an employee one abides to strict reporting times at the pain of dismissal (stick). Since there is such a strong motivation to report to work early in the morning, waking up is not so difficult. I'm also generally an early riser so that made it all the easier. Even those days when I really didn't feel like getting up, imagining the pursed lips of my supervisor speaking a silent disapproval would help me get out of bed.
  
  How things changed when I became my own boss. Most people long to be their own boss so as to avoid waking up early in the morning. I meet people everyday who are employed and tell me "you are so lucky to be your own boss, you don't have to go work if you don't want to". This is one of those fallacies held by non-entrepreneurs, but that is a story for another day. Entrepreneurs wake up everyday to go build their business with the motivation of making money (carrot). Because the carrot is not a strong as an incentive as the stick it requires a great deal of personal discipline to get up early in the day, every day as an entrepreneur.
  
  In my daily journey as an entrepreneur I have found one strategy particularly useful in overcoming the morning challenge. It is a strategy I wish to share today, taught to me by a good friend. The strategy is called the Victorious Minute.
  
  With the Victorious Minute you recognize your first minute of consciousness in the day as the most important minute. How you act in this minute determines your attitude, enthusiasm, and potential for the rest of the day. As soon as you are awake you are to jump out of bed with strength, confidence and optimism. Today you are going to battle and need to be performing at your optimum; you shake off any exhaustion, complacency, and procrastination that hungs on you with the last vestiges of sleep. A good hearty battle cry (as long as it doesn't frighten the neighbours) also increases your chi. The good entrepreneurs' fight must be fought and the fate of your hopes and dreams rest with you. Today is an opportunity to change the world, and the world will remember that it was at this moment, at this Victorious Minute where you set off on the incredible journey.
  
  I hope that tomorrow morning you too can experience the Victorious Minute.
• 13:06

  The Victorious Minute

   » ‎ Startups in Kenya
  Today I was reading an article by HR consultant Annabell Karanja in the MyBusiness entrepreneurship magazine. The author spoke of the challenges facing those going through the transition from employee to entrepreneur. It got me thinking about some of my own experiences.
  
  Granted I was never employed for long (about 1 year) but I nevertheless picked some habits which were hard to shake once I decided to go into my own business full time. As an employee one abides to strict reporting times at the pain of dismissal (stick). Since there is such a strong motivation to report to work early in the morning, waking up is not so difficult. I'm also generally an early riser so that made it all the easier. Even those days when I really didn't feel like getting up, imagining the pursed lips of my supervisor speaking a silent disapproval would help me get out of bed.
  
  How things changed when I became my own boss. Most people long to be their own boss so as to avoid waking up early in the morning. I meet people everyday who are employed and tell me "you are so lucky to be your own boss, you don't have to go work if you don't want to". This is one of those fallacies held by non-entrepreneurs, but that is a story for another day. Entrepreneurs wake up everyday to go build their business with the motivation of making money (carrot). Because the carrot is not a strong as an incentive as the stick it requires a great deal of personal discipline to get up early in the day, every day as an entrepreneur.
  
  In my daily journey as an entrepreneur I have found one strategy particularly useful in overcoming the morning challenge. It is a strategy I wish to share today, taught to me by a good friend. The strategy is called the Victorious Minute.
  
  With the Victorious Minute you recognize your first minute of consciousness in the day as the most important minute. How you act in this minute determines your attitude, enthusiasm, and potential for the rest of the day. As soon as you are awake you are to jump out of bed with strength, confidence and optimism. Today you are going to battle and need to be performing at your optimum; you shake off any exhaustion, complacency, and procrastination that hungs on you with the last vestiges of sleep. A good hearty battle cry (as long as it doesn't frighten the neighbours) also increases your chi. The good entrepreneurs' fight must be fought and the fate of your hopes and dreams rest with you. Today is an opportunity to change the world, and the world will remember that it was at this moment, at this Victorious Minute where you set off on the incredible journey.
  
  I hope that tomorrow morning you too can experience the Victorious Minute.
• March 21, 2007
• 3:15

  Treating the Last Minute Syndrome

   » ‎ Startups in Kenya
  If you read my post The Last Minute Syndrome then you know that last Monday I was going through acute symptoms of a certain disease. Lets pick it up from where we left off.
  
  My nerves were all frayed, my breathing was irregular, my body temperature was above normal, and my eyes kept drifting to my watch which I noticed was showing a time five minutes earlier than the street clock. The disease was now in its final stages, would I survive or was the disease going to get me?
  
  When rushing towards a deadline with these symptoms, it seems the world moves in slides instead of a continuous flow of events, and that you are watching yourself as the lead actor in a tragic-comedy.
  
  I saw myself: jump out of the taxi, rush towards the lift, get stopped by security, go back to security desk, requested for ID, fumble for my wallet, drop my wallet, look at my watch 8:43, think of those movies where a bomb is being defused up until the clock is just about to get to zero, allow myself a smile, rush back to the lift, continuously jab the lift button although its already lit, look at my watch, 8:44, tap my feet, take a deep breath, think how I would curse myself if I miss the deadline, lift opens, jump in, have to wait for other passengers, lift door closes, press 20th floor, other passengers getting of on lower floors, see 9, 12, 16 also pressed, look at my watch 8:44, look at my watch again still 8:44. Jump out the lift door, wonder if I should wait 15 more minutes to make the story I am going to tell more dramatic, rush towards the tender box, find an overzealous employee preparing to close it, loudly announce its not yet 9:00 am and dramatically drop my proposal into the box.
  
  The event was over, I came out shaken but generally unscathed. I could now joke and laugh about it, and therein lies the danger. Once you escape LMS you build up a fool-hardy bravado attitude thinking you can never succumb to it. But I'm smarter now, prevention is better than cure, so I'll be making sure I complete my tasks in good time. Will you?
  
• March 20, 2007
• 1:34

  The "Last Minute Syndrome"

   » ‎ Startups in Kenya
  Last Monday I spent a good deal of the day in bed. No, I wasn't sick or nursing a hangover - I was just sleepy but when I think of what made me so sleepy perhaps I was sick. You see I think from time to time I get infected with a certain syndrome, what I call the "last-minute syndrome". Now this syndrome is not contagious but from my discussions with others I have discovered it has a high infection rate in Kenya.
  
  The Last Minute Syndrome (LMS) is a fully preventable disease, but do not be surprised if you are re- infected severally. Worse still you face a higher risk of re-infection if you come out of the disease unaffected. We can say you build up a psychological immunity.
  
  Ok, lets rewind about two months back and I explain how this all started. I was sitting in my office going through the daily when I saw an advertisement inviting tenders. The ToR seemed in line with SoftLaw's business so I went ahead to purchase the tender documents. I had a whole six weeks to submit my proposal so I put it on the back burner as I attended to "more important business".
  
  Amazing how six weeks can fly by. It was the Friday before the 9:00 am Monday deadline to submit a bid proposal and I had not even started writing it. "How hard could it be anyway", I rationalised; I had done it before, the specifics of the proposal were within my knowledge, and I had a whole weekend. Yes, I had a whole weekend - and I blew it away. By Sunday mid-morning, I was yet to start. Still I remained unfazed, I even had time to read the Sunday papers and squander another two hours. Finally as one o'clock approached I forced myself to start writing it, but the easy stuff first: I filled out the pre-designed forms and drew up the table of contents. Someone once said that the only thing that doesn't delay is time. No truer had this statement felt than by that Sunday evening, my proposal was still-born and time was on time. The minutes merrily passed by and doubts about my ability to deliver the proposal on time started growing.
  
  By 11:00 pm I thought another hour and I would be done, I even made arrangements for a late-night dinner date. Its only when the calls of the muezzin summoning Muslim faithful to prayer filtered in at 5am that I knew I was in trouble. The proposal was more or less done, but I still had to proofread, print, copy and bind it. Four opportunities for something to go wrong; and of course I still needed to actually drop the proposal in the tender box.
  
  Murphy's law as usual did not disappoint, "if something can go wrong, it will go wrong". Of all days the automatic feeder for the printer refused to function and I had to feed each page manually. Not a problem when you are printing a couple of pages and have all the time in the world. Disastrous when you are high on caffeine and stress, deprived of sleep, have a financial deadline, and a hundred pages to print. Binding also had to claim a share of the fun; on that day I saw a document take twenty minutes to bind (usually takes about five minutes). Finally at 8:40 the proposals were ready. Jumping into a taxi for a distance I would normally walk was one of the prices I had to pay. My nerves were all frayed, my breathing was irregular, my body temperature was above normal, and my eyes kept drifting to my watch which I noticed was showing a time five minutes earlier than the street clock. The disease was now in its final stages, would I survive or was the disease going to get me? Find out in my next post.
• March 15, 2007
• 0:54

  BBC World Service interviews me on entrepreneurship

   » ‎ Startups in Kenya
  The BBC World Service interviewed me yesterday on challenges facing entrepreneurs in Africa. Have a listen of the interview on the Business Daily program at http://www.bbc.co.uk.
  
  
• March 09, 2007
• 0:46

  UN job vacancies

   » ‎ Startups in Kenya
  UN is looking for a communications specialist and a policy adviser. Both vacancy announcements can be found at [jobs.undp.org]
• March 03, 2007
• 22:53

  A business experiment

   » ‎ Startups in Kenya
  If you have read my posts on currency trading then you'll know about my latest fascination, forex. This week that passed I decided to send out feelers to Kenyans to see what their thoughts were on forex. I took out a 7-day classified ad in the leading daily with the words

  How to invest 14K and earn 50% pm. www.geniuskenya.com/scalp

  My primary objective was to gauge the quantity and quality of response to see what kind of future if any forex trading had in Kenya. The link on the ad led to my website where I had a free teaser e-book for download. At the end of the book one was requested to transfer mobile airtime of K.Shs. 100 (~ $1.50) to my mobile phone in order to register for a free lecture I was to hold on forex trading. The lecture was for March 3rd. Secondary objectives were: to market GEC, market my consultancy services with regard to rural internet connectivity and see the opportunities for training in forex trading.
  
  Trust my luck, just after I had put my ad two potentially "experiment-ruining" things happened. First of all the Central Bank of Kenya put out a paid advert warning people about unregulated financial investment schemes in particular pyramid and ponzi schemes. Unfortunately the wording of my ad was very much like those for the aforesaid investment schemes. Secondly Safaricom also put out an ad warning people about fraudsters who were requesting unsuspecting members of the public to send airtime in order to qualify for some prizes. Even though my ad was innocent, I know that we Kenyans are pretty suspicious so the warnings must have had an adverse effect, although I'll probably never know the extent.
  
  However immediately the ad was out my phone started ringing off the hook and my inbox always had a new message. Most of the inquiries started off with a hint of disbelief at the possibility of earning 50% profits per month, but it helped that I had put a disclosure that money could be lost or gained in equal measure. Some callers asked so many questions that I could swear they were Central Bank anti-fraud investigators :-). I think that the fact that I had put explanatory information on my website and disclosed my monetary objectives also helped in putting people at ease over the whole project.
  
  March 3rd finally arrived and I had 18 people registered for the lecture (some just 10 minutes before!). The lecture was very engaging and informative for both me and the participants. I will be sharing the gems of the lecture in this blog but for now I must go and prepare for my next lecture.
• February 25, 2007
• 15:13

  Updates on Currency Trading

   » ‎ Startups in Kenya
  Thank you all for your inquiries on currency trading. Because of the overwhelming response I have received from my post If you have an appetite for risk I'll tell you how to make money, I have decided to prepare a short introductory course on forex trading. I have designed the course for novice traders who would like to see their K.Shs. 14,000 return K.Shs. 7,000 per month but it can be used by anyone with any amount. The course is free of charge and begins with an e-book which you can download from [www.geniuskenya.com]. The e-book is in adobe pdf format, if you don’t have adobe reader you can download it free of charge from their website http://www.adobe.com
• 14:24

  Insights in Rural Internet

   » ‎ Startups in Kenya
  Followed up from Cyber Cafe with an EDGE
  
  I've heard it said that when you plan to start a business, once you have written the business plan, half the work is done. A solid business plan is important for any start-up but... at the risk of sounding anti-establishment I've always found writing a business plan before starting the business so stifling. My preferred approach is to have a general idea of what the business is to achieve and write the plan as I go along, reacting to customers, suppliers and processes. I nevertheless ensure that I stay true to my business partner Stephen Alala's mantra that any business should be "anxious for profits, but patient for growth."
  
  When launching the cyber cafe, I took it as my task to ensure that I was setting up a viable business and not a white elephant. The main fixed recurrent costs for a cyber were going to be rent and wages, while variable recurrent costs would be internet, electricity, and stationery. It was imperative that the cyber comfortably break even from the first month.
  
  After doing the arithmetics with the proprietor we decided to initially price browsing at K.Shs. 3 per minute although our calculations showed we could do K.Shs. 1.50 if we had enough clients. Once we decided on the price, it was easy to calculate how many minutes of browsing we would need to sell in the first month to break even. With the calculations I was able to draw up the first objective of the business, to sell "X" number of minutes of browsing per month.
  
  With the objective drawn out clearly, the business gained perspective. The interesting part was how to sell the required number of minutes. One advantage of an entrepreneur is the ability to adapt quickly, and in order to fully maximize this advantage the entrepreneur must always listen to what her client's are saying. When we opened the cyber cafe, it took the standard setup of other cyber cafes, but then we started listening:
  
  

  • I need a police abstract
  • Can you help me send an email to my daughter in the US
  • I have a computer college nearby but no internet
  • Can you help me send an email
  • How do I check my KCPE results
  • Can I get a job online
  • How do I download photos from my phone
    
  • I want to play games

  As the customers spoke we gleaned their needs and turned them into opportunities for selling more minutes. Since the objective was delineated in minutes it was necessary to ensure that all the services were sold in terms of minutes. I'd usually just list all the different services that we came up with but I'll let you do it this time. Can you spot the opportunities?
  
  Over and above the commercial opportunities that we were able to identify and exploit there were several economic social and cultural benefits that I realized internet in the village could bring. I have teamed up with some like minded individuals to explore these possibilities and I hope to be blogging soon about our progress.
• February 17, 2007
• 7:09

  ICT development Expo: Digital Village

   » ‎ Startups in Kenya
  Last week I attended an expo sponsored by the Ministry of Information and Communication that was about ICT opportunities in rural Kenya. The conjucture of rural and ICT obviously drew my attention (Read my post about internet in the village). I know the event was over a number of days but truth be told I only went one day and only one entry caught my eye (plus it was too hot and not very well attended).
  
  The entry was a supposedly turnkey digital centre for use in rural areas. It was made of a cargo container outfitted with solar powered electricity outlets and structured cabling. It also had 8 PCs with TFT monitors placed on 2'x2' desks. The use of space was incredible, with a desk at the back end probably for the manager. A representative for Davis & Shirtliff (co-sponsors of the entry) was at hand to elaborate on the project.
  
  The project is a private sector/public initiative fronted by the Ministry of Information. Davis & Shirtliff provide the solar power technology and Kenya Data Networks are to provide the networking (I think) and internet connectivity, the Ministry provides the rest. The initial setup cost is K.Shs. 2.5 m ($37,715). There was no indication on running costs but the bulk of this would be internet connectivity which was to be heavily subsidised by the government.
  
  I think the initiative is a good idea, but I had some doubts with the approach. D&S are not specialists in solar power, so their margins might be unnecessarily higher. The solar power also has limitations on the power of devices which can be connected to it. The D&S rep recommended 40Watts or less which pretty much rules on copiers, laser jet printers, and even PCs. Their recommendation was to use laptops (Harry: too expensive). KDN have done a wonderful job laying fibre-optic cable contrywide and installing WiFi hotspots around Nairobi, but short of using the relatively expensive VSAT, I don't see how they will reach most rural areas.
  
  The project is in prototype stage so there is still a lot of flexibility for redesign. You can be sure I will be contributing my two cents worth.
• 6:16

  Cyber Cafe with an EDGE

   » ‎ Startups in Kenya
  Followed up from Laying the Groundwork for a rural cyber
  
  I've finally got around to writing this. Thanks for you all who patiently waited.
  
  Although I approached the project as an "internet consultant", I soon realised I would need to implement the whole spectrum of tasks required to get the cyber running. I spent almost a week laying the structured cabling, installing the software, and configuring the network. Most of the work I was doing for the first time (e.g. drilling holes in concrete to fix the trunking screws) and most of it was hard, but all of it was enjoyable. I needed to prove the project was implementable with minimal human resources (if it was going to work elsewhere). With an eye on both troubleshooting by the owner and future projects I prepared detailed How To manuals for most of the tasks.
  
  So the day finally arrived, November 17th I connected all the PCs to the internet. The results were incredible, the speeds were nearly as good as my 256K broadband connection in Nairobi. I tested each PC individually and was happy to see similar results. The PCs are Pentium III (666 Mhz ) Compaqs with 128K memory, purchased refurbished for about KSh. 12,500 ($178.50) and running Windows XP.
  
  The real test though would be to see how the Internet would behave in "live" conditions, with actual customers paying for the service. I didn't have to wait long, the next day the cyber was open to the public and soon a trickle of customers came inquiring. I advised the owner to initially charge KShs. 3.00 per minute ($ 2.57/hr) and gauge the response. Not surprisingly the customers complained that the charges were high, but the amazing thing is that once they got online they were delighted by the speeds which they said were fast. At one point there were five people browsing and worried that the speeds might suffer I went around the cyber and did a spot check. I was relieved to see however that the technology held up and all the customers were browsing without a problem.
  
  The first day was over, the cyber had passed the test, internet had reached the village. What followed thereafter was an enlightment as inquiries and comments from customers, curious onlookers and suppliers made me realise that there was potential for a lot more opportunities. Read about these insights in my next post.
• February 16, 2007
• 9:46

  Even more job vacancies

   » ‎ Startups in Kenya

  Position	Apply To	By
  Human Resources and Organisation Development Coordinator, East and Southern Africa Based in Nairobi	Applications should be sent with a CV, cover letter and contact names and details of at least two referees to hrceasa.jhb@actionaid.org All applicants should apply on AAI application forms, found on our website- www.actionaid.org.	no later than 5 March 2007.
  Human Resources and Organisation Development Coordinator, West and Central Africa Based in Nairobi	Applications should be sent with a CV, cover letter and contact names and details of at least two referees to hrceasa.jhb@actionaid.org All applicants should apply on AAI application forms, found on our website- www.actionaid.org.	no later than 5 March 2007.
  Network Architect	kmbui@com21mobile.com
  Network Engineer	kmbui@com21mobile.com
  Systems Architect	kmbui@com21mobile.com
  Systems Engineer	kmbui@com21mobile.com

• 8:57

  Free Nursing Program

   » ‎ Startups in Kenya
  Are you between 18-28 years old, interested in the Nursing field, University of the District of Columbia (UDC) is offering FREE tuition, FREE books, a $250 monthly stipend, and guaranteed job placement as a nurse at Providence Hospital upon graduation (it's a 3 year program) with a starting salary of $40,000.
  
  The program is recruiting new students now. Please contact Ms. Beshon Smith (202) 266-5481 or email Bsmith@urbanalliance.org
  
  
  Harry's note: This note was forwarded to me by a trustworthy source, I nevertheless urge you to make all proper inquiries before committing yourself to anything.
• February 12, 2007
• 11:53

  If you have an appetite for risk I'll tell you how to make money

   » ‎ Startups in Kenya
  Kenyans amaze me. We are probably among the most industrious, entrepreneurial, intelligent people in this part of the hemisphere. I continuously meet people who are innovating on new ways to stay ahead of the pack and make some extra coins.
  
  Recently I have been engaged in the newest money-making fad at GEC, currency trading. Currency trading involves the buying and selling of currency pairs (e.g. Euro/US Dollar or Dollar/ Yen) over an interconnected network of banks and dealers. It is the largest and most liquid market in the world (1.5 trillion dollars a day) and operates 24 hours a day from Monday to Friday. Most importantly it is accessible to retail traders (read me and a bunch of other enterprising Kenyans) through a software interface connected through the internet. You can start with as low as $200 (KSh. 14,000) and can conservatively make 10% returns on investments per day! (make $400 (KSh. 28,000) profit in one month from a $200 investment)
  
  When I first heard about it I thought it was a fraud, but currency trading can achieve such high gains using leverages of up to 400:1. It is important though to understand that leverage magnifies both gains and losses and it is easy to lose a substantial amount of money within a very short period. Nevertheless there are strategies to protect your capital, increase your profits and minimize your losses. I was introduced to currency trading by a member at GEC and I am now helping others setup their own trading accounts and employ the above mentioned strategies. With the all-in-one facilities at GEC (high speed internet, computer, office desk and chair) and SoftLaw's financial consulting one can comfortably make a living trading currencies at GEC. If you'd like to know more send me an email at harrykaranja@yahoo.com.
• 10:20

  More job vacancies

   » ‎ Startups in Kenya

  I've tried to make it easier this time to apply for the jobs. Below you will find a summary of the jobs. All the best

  Position	APPLY TO	DEADLINE
  Position of diocesan accountant	The Administrative Secretary All Saints Cathedral Diocese P.O. Box 10313 – 00100 Nairobi Or through email: allsaintsdiocese@wanachi.com	15 FEB 2007
  Recruitment of graduate clerical trainees	Hawkins Associates Ltd Human Resources Consultants Muthangari Road, Lavington P O BOX 30684, 00100 Nairobi Fax 02-3864273 Email hawkins.associates@khigroup.com.
  Community development facilitators - 4 positions	Human Resources & Administration Manager, CCF Kenya via email: hr@ccfkenya.org	23 FEB 2007
  Tractor driver	please send your detailed CV, cover letter, copies of your certificates, testimonials, current contacts for three referees and your telephone and or e-mail contacts to jobs@scuk.or.ke. If you are based in south Sudan with no email facilities, forward your application via SC UK Loki, Juba and/or Aroyo offices or to the address below, The RRP Manager, SC UK, south Sudan Programme P.O. Box 48700 Nairobi	21 FEB 2007
  Trainee (junior research assistant)	Kindly send your applications preferably by e-mail to: recruit-stagiaire@cta.int For further information kindly contact: CTA Brussels Office ; 39 rue Montoyer ; 1000 Brussels ; Tel (02) 513 74 36 Fax (02) 511 38 68
  Framework for the pan africa internship programme february 2007	Applicants will submit their CVs to the Pan Africa Policy Officer, Oxfam GB. Email address is eodete@oxfam.org.uk.	MONDAY 12 FEBRUARY, 5.00PM
  Bilingual secretary, fsl-3	Please send your application to the address, email or fax number indicated below before the deadline. International Criminal Tribunal of Rwanda; Chief of Human Resources and Planning Section, ICTR P.O. Box 6016. Arusha, Tanzania Fax: 255-212-963-2848, 1-27-250 4000, 255-27-250 4373, E-mail: ictr_Personnel@un.org , Applications must be submitted using the United Nations Personal History form (P-11)	19 FEB 2007
  Human resources assistant, gsl-5	14 FEB 2007
  Security officer, gsl-4	21 FEB 2007
  Procurement assistant, fsl-5	19 FEB 2007
  Sales executive	email cv immediately to: rychiey@hotmail.com for an interview.
  Project officer	Ms. Sokhna Cisse at scisse@unicef.org.	22 FEB 2007
  Hospital staff (medical doctors and nurses with or without specialization, midwives, lab technicians, administrators and other categories of skilled professionals)	If you think this is something for you, please send in your application, CV, passport photos and references enclosed to our address. Normeca AS - International Mailandvn.12, P.O. Box 404 1470 Loerenskog, Norway For further information please do not hesitate to contact with our office in Khartoum Tel: +249 (183) 58 00 14/42 or Nairobi Tel: +254 (020) 27 30 934 Or Our headquarter in Norway +47 67 92 76 00 Email: tahir.modawi@normeca.no, Nairobi@normeca.no Or said.alsaid@normeca.no please feel free to take a look at our website: http://www.normeca.no

• January 22, 2007
• 1:30

  Job Vacancies

   » ‎ Startups in Kenya
  Check out the job vacancies below. If you need the complete vacancy advertisement for any of the jobs below please send me an email at harrykaranja@yahoo.com.
  
  Programme Coordinator in Southern Sudan - Caritas Luxembourg
  Business Development Consultant - Kimberly Ryan
  CHILD PROTECTION PROJECT MANAGER - Save the Children
  CUSTOMER CONSULTANT - STANBIC BANK KENYA
  DRIVER - African Population and Health Research Center
  Senior Research Officer - K-Rep Development Agency
  Teachers - Saint Aloysius Gonzaga Secondary School
  BUSINESS SUPPORT OFFICER – CAREER CONNECTIONS
  CLINICAL OFFICER - International Rescue Committee (IRC)
  Marketers - UAP Insurance
  Architect / Interior Designer - United Nations Office for Project Services
• January 12, 2007
• 8:52

  Laying the groundwork for a rural cyber

   » ‎ Startups in Kenya
  followed up from "Internet in the Village"
  
  As an entrepreneur I have found that if you draw up a business plan that requires KSh. x, go and source for KSh. 5x, you're likely to get KSh. 0.5x. It's a truth I've come to accept, financiers will never give you what you ask for. After some time I found this was actually a good thing, as the entrepreneur in you goes overdrive figuring how to still accomplish your task with minimum resources. You'd think then that I would have no problem with the 300k budget my friend gave me, eh? Well this was actually like 0.2x so I had to employ all strategies to get the project off the ground with the limited funds.
  
  Before I could commit to the project (and the money) I had to make sure that I could get internet to the cyber quickly and inexpensively. I went shopping for an ISP in Nakuru and what I found was mostly disappointing.
  
  1. Jambo Dial-up. This would involve installing a telephone line and using the Jambo service from Telkom. The cost per minute would be equivalent to making local calls. Local calls are approximately 7.50/= a minute (USD 6.40 per hour). This was immediately ruled out.
  2. Telkom ADSL. The ADSL service has a fixed monthly cost starting from approximately Ksh. 10,000 (USD. 143). However ADSL can only work over a distance of 4 kilometer radius and Njoro is at least 25 km from the Nakuru ADSL service.
  3. Wananchi leased line. This would involve pulling an analogue Telkom kenstream line from Nakuru and providing 32Mbps internet over it. The initial cost was 150,000 (USD 2,143) and subsequent costs would be 30,000 (USD 429) per month. This was too expensive and the benefits (speed of the internet) too low.
  
  As a last ditch effort I decided to explore the mobile phone internet option. Celtel and Safaricom had recently been touting their EDGE technology (Enhanced Data rates for GSM Evolution. A technology that gives GSM networks similar capacity to handle services for the third generation of mobile telephony. EDGE was developed to enable the transmission of large amounts of data at a high speed, 384 kilobits per second.) as a convenient way to access the internet from anywhere. On the face of it, it looked like something I could consider but I was not putting my hopes too high as it was advertised as a high-end market product for personal use.
  
  I was pleasantly surprised to find that what Safaricom and Celtel advertised was a gross understatement of the power of EDGE. The technology was just what I was looking for: it was easy to setup, it was instantly available in Njoro , it did not have inhibitive setup costs, and its running cost would allow me to charge affordable rates at the cyber. I couldn't believe that these firms had such powerful technology that they were not shouting about at the top of their voices.
  

  As an aside I was astounded at the lack of technical/marketing knowledge the firms' personnel displayed regarding using the EDGE technology for my specific use. I thought the lack of knowledge might be local (Nakuru) but on speaking to their representatives in Nairobi I was surprised that the lack of knowledge persisted even there. Just as the internet initially found its way into people's homes through the ubiquitous fixed line telephone network in the US, I think the mobile phone network can be what accelerates internet penetration in Kenya. Celtel and Safaricom need to wake-up.
  

  
  After comparing the two firms I settled on Celtel based on cost, coverage and network reliability. Immediately after purchase I tested out the service with my laptop and was impressed at the consistency and quality of the internet service. I would have to wait until the whole cyber was up and running before I knew whether I was right or the Celtel people would be telling me "I told you so". Read about what happened when I hooked up all the machines to the internet in my next post.
• 5:43

  Internet in the village

   » ‎ Startups in Kenya
  One of my most exciting projects last October/November 2006 was setting up cyber cafes in rural areas. It all started like a joke. A friend of mine wanted to start a business in Njoro (a large shopping centre in the Rift Valley about 25 km from Nakuru town) and he was asking for ideas on the kind of business. Being a self-confessed techie, I spewed out technology dependent business ideas. He politely pointed out that my ideas though good were not viable in Njoro as they needed email/internet facilities to work. We got to discuss how the internet could stir economic activity in Njoro, an area depressed of economic activity after the government ban on forest logging. (Njoro lived of the timber industry pre 2004).
  
  My friend then threw down the gauntlet. "Hey Harry, you claim you're an entrepreneur and a techie, why not setup the internet infrastructure in Njoro?" I started to protest but then held off as I thought about it. Could it really be done? What were the challenges? How would I approach it? Here follows the story:
  
  It didn't take long for me to settle on a cyber cafe as the best way to approach it. With a cyber I could introduce the public to the internet, train newbies, and generate some income to make the project self-sustaining. I convinced my friend with a concept note that a cyber could work and he set aside KSh. 300,000 (USD 4,285) for the project. I waived any consultancy fees since it was going to be on a very trial basis.
  
  Now the challenges came thick and fast:
  1. The budget was unbelievably tight.
  2. There was no affordable ISP in Njoro
  3. The internet literacy among Njoro residents was very low.
  
  Still I struggled on and the outcome was incredibly satisfying. Read all about the setting up stage in my next post.
• 5:38

  Its 2007 already?

   » ‎ Startups in Kenya
  Hi everyone,
  
  I can't believe its the new year already. I've been on so many projects that I neglected my blog, but thank you for all your visits and comments. I shall be regularly posting my "adventures" over the last three months so keep checking.
• November 28, 2006
• 2:15

  Easy access to financing for MSMEs

   » ‎ Startups in Kenya
  Micro, Small and Medium Enterprises have always had it hard when it came to securing financing for working capital or expansion. Although personal loans have become more available in Kenya; they are still targeted to employees only leaving out MSMEs. This is to change with the launch of Genius Savings and Credit Cooperative Society. With Genius SACCO it will be easy for MSME businessmen to access low interest loans of upto K.shs. 0.5m (USD $ 7,000) with monthly contributions as low as K.Shs. 1,000 (USD 14).
• October 23, 2006
• 1:47

  Why not to take full payment before completing job

   » ‎ Startups in Kenya
  This weekend I finally rid myself of a headache I’ve been dragging around for the last one month. I learnt something (which I already knew but had chosen to de-learn), and that is to never accept full payment for a job before you begin. Here’s the story:
  
  About one month ago I was giving free consultation to one of my GEC members. In the course of our consultation he inquired about SoftLaw’s data entry services. Apparently he had to populate a database daily with about three hundred records each with more than ten different columns. He was concerned about how much his part-time employee was costing him to do the job. Another problem was that he had a huge archive of data which he wanted entered into the database as well.
  
  On further enquiry I discovered his problem had parallels to one I faced while doing some work for the Judiciary. My member was OCR scanning the property classifieds of the dailies and entering the information into an excel sheet with different columns for price, bedrooms, location, telephone contacts, description, agent etc. After formatting the scanned document he had each classified on a separate line of a text document. His employee was manually copying and pasting the data from the text document to the excel file.
  
  Since he was a computer science graduate I asked him if he had considered automating the procedure. I found out that he even tried developing an application but each classified ad had a different format resulting in countless permutations. After programming the 14th rule for the first data type (price) he gave up on the automation angle. I asked him to send me a sample copy of one of the text file to see whether I could offer a better way of doing it.
  
  I’m not a professional programmer, but I love the logic involved and have a particular fondness for pattern matching and string manipulation. Looking at the sample text and his requirements I figured it was a three-day job at most for me. The rules involved were complex, but I had plenty of source material to use from the previous application I developed called “Abstractor”.
  
  Although the market price for the software should have been in the K.Shs. 50,000 – K.Shs. 100,000 (US$ 685 – 1,370) I decided to charge him a nominal K.Shs. 5,000 (US$ 68) for the job since he was a GEC member. The fee was high enough to make him appreciate the work but low enough not to be a strain to his young business. In a continent where software piracy hovers at 80%, $68 spent on software (even where it is customized) is a decent amount. I also asked him to pay in full and upfront as I did not want a situation where I’d have to chase him for the balance.
  
  Now here is perhaps where the trouble began. What was supposed to be a three-day job took a whole month to complete, and I’ve narrowed down the reasons to:
  
  1. Taking the full payment upfront;
  As a businessman you appreciate the value of promptly paying customers. At GEC it’s slightly better since all payments are pre-payments. For software development and related types of supplies (where delivery of goods or services is required) most payments are made in parts. Usually customers will pay 50% on start and 50% on finish. Sometimes some customers will only make payment on full delivery. And even then rarely will customers pay on time; a supplier might undergo many frustrating delays before she receivers her pay.
  
  This foreknowledge prompted me to require the full payment before I began. However coupled with reason number 2 the outcome was disastrous.
  
  2. Charging less than the real value for a job;
  
  What I had promised would take three days took a whole month to complete. On review of the development process though I actually realized that I had not spent more than 24 working hours on the software. With an 8-hour day this translates to 3 days. My greatest mistake though was underestimating how valuable those 24 hours were to me. Although I did not want to charge more than the nominal K.Shs. 5,000 for developing the software the opportunity cost was almost ten times what I was charging. Finding a compromise proved extraordinarily difficult as I had to prioritize my time. I also had very little motivation as the entire price had been paid. This had a much greater effect than I imagined. I was trying to find time to do something for which inadequate consideration had already been satisfied.
  
  All in all though, it was not too bad of an experience. I learnt a lot, got insights for my future consultation with other clients, and enjoyed the programming.
• October 17, 2006
• 23:49

  Will the real entrepreneurs please stand up

   » ‎ Startups in Kenya
  Today, I am inspired. Watching the Barclays sponsored Enterprise Kenya on KTN last night showed me just how far I am from calling myself an entrepreneur. The source of inspiration: a woman called Joyce Wairimu and her amazing fortitude in starting and running her eatery business Babylon Kitchen. Every aspect of her story seemed so keeping with the entreprenuerial spirit that I was tempted to think it all scripted.
  
  Joyce Wairimu was a victim of the Molo clashes in 1992 which displaced her and family. The clashes uphove her life and she found herself separated from her husband, penniless, and destitute, with five children to care for. A chance boarding of a Kayole bound matatu found her living off handouts in the streets of Kayole.
  
  But the woman's spirit was not broken and a good samaritan welcomed her and her children into her home and also introduced to her to work that could earn her an income. Joyce started making a little money by working in the City Council farms and washing clothes. It paid little but Joyce knew how to save and put away K.Shs. 900 (US $12) every week.
  
  
  Joyce joined a welfare group Maisha Bora where she deposited her savings. She narrates how the welfare changed her life by allowing her borrow double what she had saved and invest it in business. With K.Shs. 7,000 (US $ 96) she began a tea kiosk in Kayole and gradually built it into a popular restaurant with outside catering. With financial discipline, prudent management, perseverance in the face of adversity, and always putting the customer first Joyce saw her business grow and flourish.
  
  Six years later her business and personal assets now include real estate, land and are valued at K.Shs. 2,500,000 (US $34,247). Joyce has also bought property for her children and given them capital to start their own businesses. She is now reunited with her husband, remains an active member of the welfare group which started her off, and is happy and content with her life. She is a truly wealthy entrepreneur by all standards.
  
  The story behind Babylon Kitchen is one of knowing what you want in life and using business as a means of achieving it. It is the true entrepreneurs story, one that makes you realise there's more to it than just making money. Today I feel challenged to be an entrepreneur as Joyce Wairimu is an entrepreneur.
• October 10, 2006
• 4:23

  Entrepreneurs hate holidays

   » ‎ Startups in Kenya

  It's October 10th today, a holiday that used to be called Moi day or Remembrance day but I'm no longer sure if that is still its name these days. What I am sure about is that it is a holiday, and I hate it. I have a number of entrepreneurs here at GEC who hate it as well. But wait a minute, doesn't everyone love holidays, a chance to relax, take time off, enjoy the fruits of one's labour?
  
  Not entrepreneurs. For an entrepreneur a holiday means: lost opportunities, lost income, absent employees, delayed cheque clearances, delayed deliveries et cetera. Holidays are the number one killers of entrepreneurs.
  
  Don't get me wrong, holidays like Christmas and Easter are welcome, even feted by entrepreneurs. But what's with these irrelevant holidays, what are we celebrating today anyway? Earlier this year there was an even more irrelevant holiday called Prayer day. And let's not forget the dubious "celebration" holiday right after the last general elections.
  
  Understand where I am coming from, with a workforce of 11.85 million, every holiday we lose 94.8 million man hours, or in money terms: 2.4 billion shillings!! (figures from www.cia.gov ) Enough said, ban the irrelevant holidays and lets get back to work.

• October 06, 2006
• 10:10

  'Jobpreneurs' earning money in a Kenyan way

   » ‎ Startups in Kenya
  I've invented my own portmanteau today to describe a way in which I think many jobless/retrenched Kenyans may find gainful employment. A jobpreneur is a person with a skillset suitable for an office job who outsources her skills to willing payers through the Internet. A jobpreneur is a worker and therefore will want a business model that almost approches an employer-employee relationship. But a jobpreneur is also a businessperson because she is ready to control the future of her income through her own hard work. A jobpreneurs skillsets are diverse but primarily use the computer: data entry, transcription, graphic design, software development, language editing, music composition, research, journalism etc. Genius Executive Center is helping jobpreneurs set-up their operations and start earning money using their skills by providing furnished offices, consultancy and financing. With K.Shs. a 10,000 investment, Genius can help you earn from K.Shs. 30,000 per month. Prospective jobpreneurs now have an opportunity to make a decent income using their skills.
• October 04, 2006
• 3:44

  Quality service non-existent in Kenya?

   » ‎ Startups in Kenya
  Is it impossible for Kenyan companies to give guarranteed quality service? I thought the problem afflicted only startups who are mainly product-oriented before they learn to be customer-oriented. I figured its a cost issue for startups, as much as they'd like to guarantee their products, they just can't afford it. But even large Kenyan companies, with entire CRM departments and support departments can't seem to deliver top-grade service. Just the other day I signed up with an ISP who guarantees 99.8% uptime. Roughly translated this means that in the span of a month they can only be down for one and a half hours. Two days after using the service they went down for two- and-a-half hours. On complaining they mumbled something like "...maintenance...sorry we didn't inform you.."
• September 25, 2006
• 1:11

  So you’re a businessman, eh?

   » ‎ Startups in Kenya

  So you’re a businessman, eh? You have a registered business, a proven product, and a growing client list. You’re passionate about your business and spend every waking moment at it. You’re confident that you know best how to deal with the problems of the business and you’re there to save the day in case anything goes wrong. You’re a specialist at what to do. No! You’re the best at what you do. Hiring someone else to do a client’s job would be short-changing your client, as you care deeply about your clients.

  So you’re a darn good businessman, right?

  WRONG!

  While consulting for one my clients today I realized that many of us businessmen (term includes both male and female gender) are still victims of what Michael Gerber in his E-Myth series describes as technicians seized with an entrepreneurial spirit.

  Angela[1] my client is a dyed-in-the-wool believer in taking personal charge of one’s business. Back in 2000 she took a three-year IT course where she specialized in web development.

  Two years into her course she was already bagging clients as the nascent web industry in Kenya took shape. A perfectionist, she gave great value for money, and a satisfied list of clients was testament of her great work. Her clients were always unsolicited and mainly sought her out after referrals from other clients or her web developer colleagues.

  Her skills were soon noticed by the training institution she was studying in as they offered her a position as a web developer. Angela took on the job with her usual zeal but bureaucracy, low pay and the inflexibility of working hours soon got her entrepreneurial bug biting.

  In 2004 Angela went solo; she whipped up a logo, drew up a portfolio and went into business as a free-lance web developer. Things started out well, referrals from her old clients got the ball rolling and she was making a decent living from her work.But as the clients streamed in and the money piled up things started going downhill. Angela found herself working 90-hour weeks. There seemed to be a new deadline to meet every day and she found herself carrying a blanket to work (for a few hours nap) on the nights before the deadlines. Feeling frustrated that she had become a slave to her work she started sub-contracting out work. This only made things worse. The subcontractors were not perfectionists like her and she found herself redoing almost 100% the work they submitted to her.

  Have you ever been in this position? I know I was when I worked as a contractor.

  [1] Name changed to protect identity

• September 21, 2006
• 4:59

  Styling Up a Jua Kali Garage

   » ‎ Startups in Kenya
  
  
  

  Today fed up with my overpriced town mechanic and needing some specialized service on my car I decided to try out a “jua kali[1]” garage. My friend gave me the instructions to get to the place and after a few wrong turns I pulled into a muddy ‘mabati[2]’-fenced garage with a boldly drawn Mercedes-Benz three star on its gate. I was apprehensive but I had been assured the best mechanics this side of Kenya would be found within those tin walls. Four hours and perfectly working car later I found myself unsure whether to agree or disagree with my friend.

  Great customer care, consistent service, and a professional set-up attract me most to my town mechanic. The jua kali mechanic lacks all the above but sufficiently compensates with sublime technical skill and competitive pricing. What put me off though most was that the jua kali mechanic takes on the role of administrator, sales man, customer care rep, and mechanic at the same time. He ends up giving your car staccato attention as he shifts from tightening a bolt, to buying spare parts, to appeasing a delayed client, to negotiating for a job.

  

  Body repair work at the garage

  As I waited, frustrated at how slowly the job was moving and consoling myself with the few thousands I had saved, the entrepreneurial spirit seized me. How many other similarly dissatisfied car owners like myself are out there: wary of the expensive town mechanic whose spare parts you can count on being genuine but whose skill in fixing them you can’t; or those willing to put up with technically superior jua kali technicians with great quotations for a job but who need to be baby sat and change prices on the fly?

  The more I thought about it the more excited I became, I quickly got my laptop out of the backseat and started on a proposal for setting up a garage which would combine the best of both types of garages. There are hundreds of thousands of cars in Nairobi and every car owner I’ve spoken to has gripes with their mechanic. Its an entrepreneur’s dream: there’s an identifiable need, a large customer base, and an existing product that is a candidate for disruptive technology. I’ve posted the first half of the proposal below, and I’d like to invite you to give your comments and suggestions. Please note that your suggestions shall be publicly available to all.

  THE GARAGE PROPOSAL

  INTRODUCTION

  The Garage (the “Garage”) is an automobile repair shop located in the outskirts of Nairobi city. The Garage currently occupies land that has been leased out. The presumed owner of the Garage is a senior mechanic plying his trade at the Garage. It is very likely however that the real owner is another individual is not involved in the day-to-day activities of the Garage. It has been witnessed by this author and confirmed by the aforementioned senior mechanic that the Garage faces severe management problems. It also appears on the face of it that the Garage is not being utilized to full capacity. This presents an opportunity for the investors to enter the automotive repair industry with: a functioning garage, a strategic location, large pool of human resources, and little capital investment.

  BACKGROUND

  The area where the Garage is located is home to several different automobile-based businesses including: petrol stations, used car dealerships, garages, and auto spares shops. There are at least four other garages in the immediate vicinity with an estimated combined workforce of fifty mechanics.

  The Garage has the following organizational structure: a senior mechanic at the top, other mechanics who are employed on a permanent basis and semi-skilled handy-men who are recruited for one-off jobs as the need arises. The senior mechanic is also responsible for management of the garage which involves: sales and marketing, administrative issues e.g. receiving money, purchases, and customer care. As he is also the foremost mechanic this has led to a situation where he unproductively splits his time between his managerial and technical portfolios. From observation it appears that his managerial skills are also worse for the wear.

  The Garage does not issue receipts for payments made to them and will ask the customer to meet any expenses incurred as the work is being done. This includes the likely suspects: petroleum, spares, oil; but also includes things such as: torch cells (to power a torch as work is done at night), paying a petrol station attendant for use of his pressurized air nozzle, sandpaper. It is not clear what the mechanics do when a customer is not available to pay for these impromptu costs. The end result is a feeling by the customer that he is being cheated, as he ends up paying more than he was initially quoted for.

  During the author’s observations of the workings of the Garage it was noticed that the progress of work was very slow on the author’s and others’ jobs. The initial view was that the Garage was stretched thin and understaffed. However this view was hard to reconcile with the fact that on numerous occasions the mechanics were absent from the Garage. The more likely reason for the slow work and “overworked” nature of the mechanics may be hypothesized as thus:

  1. the mechanics are not punctual in reporting to work, and have a large number of AWOLs;
  2. where the mechanics meet an obstacle they will abandon the job and possibly transfer it to another mechanic;
  3. the mechanics will not work on a job unless there is pressure from the customer and possibly his presence;
  4. the mechanics in many instances do not know how to perform the job given, and spend more time diagnosing other problems than fixing the identified problem

  The Garage was observed to have five to ten mechanics, who were working on two to three cars at any given time. The nature of the work being carried out included: gearbox repair, body work and spray painting, and engine repair. The Garage however had in its compound approximately 15-20 cars, some of which appeared to have been in the Garage for a very long time evidenced by their peeling paintwork and layers of dust. Most of these cars were not worked on by the mechanics during the author’s period of observation.

  The owner of the Garage intimated that at its peak the Garage earned KShs. 300,000 per month. It is not known whether this figure was of sales, gross profits, or net profits. As the garage operates only on weekdays and Saturday this would translate to roughly K.Shs. 11,500 a day. I came to know of the Garage after a friend referred me to a mechanic there when I complained to him about a car problem that my town mechanic had been unable to fix. The Garage in the senior mechanic was touted as having the foremost specialist in the repair of the specific problems of the my automobile. It is not clear though whether the Garage has an established system of referrals. It is not known at this time whether the Garage has any sales and marketing strategy.

  The Garage was observed to have the following assets:[3]

  1. a quarter-acre property off a main road.
  2. an approximately 1000 sq. ft building complete with roof, walls, and windows and partitioned into approximately three rooms;
  3. a three-walled building with a two-story high roof with approximately 1000 sq. ft. of floor space;
  4. office furniture (heavily worn);
  5. spray paint machine;
  6. car batteries;
  7. hand-held tools including: spanners and pliers;

  The question I pose to you is: From these observations, what strategy can be employed to convert the Garage into a leading automotive repair shop?

  
  

  [1] Literally hot sun. Used to refer to entrepreneurs in the informal sector

  [2] Tin sheets commonly used for roofing but can also be used for fencing

  [3] It was not possible to verify that all these assets actually belonged to the Garage

• September 20, 2006
• 5:22

  Genius Executive Centre – Incubating Kenyan Startups

   » ‎ Startups in Kenya
  Andrew Mongy’s first business involved developing complex information systems for large organizations. To woo over his potential clients he invested heavily in expensive furniture in his uptown office where he met the clients. Unfortunately his business suffered from poor management, weak marketing and insufficient capital and had folded within a year. Down but not out he vowed he would not make the same mistakes on any future business. It was therefore with great pleasure when in early 2006 as he prepared to launch his second business, he heard of Genius Executive Centre located on the 15^th floor of View Park Towers, a business incubator that would keep his start-up costs low, assist him in his marketing and possibly even finance his business.
  
  The prestigious View Park Towers
  

  “Genius Executive Centre although begun as a subsidized business centre, now operates with the social responsibility of a business incubator” according to Ms. Christine Matogo, acting centre manager. Begun in mid 2005 by SoftLaw, the Centre initially provided fully furnished office workstations with shared lounge, reception and meeting rooms facilities for an affordable monthly fee.

  

  An incubatee at work at her workstation
  

  “Over time we realized that the average start-up business requires more than a furnished office at a fancy location,” continues Ms. Matogo. “We turned round the Centre on its heels and began emphasizing on giving our members solid business advice, consultancy services, access to knowledge repositories like LawsofKenya.com, access to investors, and collateral-free loan financing. Our sister business division, Genius Capital & Consulting was initially set up to serve the Centre incubatees with these services at no additional cost. Capital & Consulting now also provides these same services to non-incubatees who have shown great enthusiasm in the products.” Ms. Matogo explains that the Centre acts mostly as a showcase of the services provided by Capital & Consulting which she calls the real cash cow.

  The shared reception area
  

  The business model for the Centre is a unique one. Although a for-profit organization, the heavily subsidized monthly fee and the free business support services would make one think it is an NGO. Ms. Matogo explains how the Centre achieves this. “When we begun the Centre, we could have chosen to go the way of the existing alternatives at the time and charge exorbitant fees in order to make high margins. Instead we chose to keep the costs low and work on volumes. This ensured the Centre was able to serve its intended clientele. Our targeted clients are business start-ups whose main asset is the skills and knowledge of their owners or staff. Such businesses are service-oriented and use the Centre as a communication and marketing point for their business. Collectively they can be grouped as consultants who specialize in one area or another. To become an incubatee one simply needs to attend an interview and if their business is assessed to have growth potential they are offered a space. The incubatee thereafter needs to pay only K.Shs. 10,000 every 30 days to enjoy the Centre services”

  Genius seems to have struck a resonant cord with its targeted clientele, with 75% occupancy in its first month. The Centre is now fully occupied and new members are added to a waiting list. How the Centre ensures that all deserving start-ups get a chance at incubation is by encouraging the growth of its existing incubatees businesses. “Part of being an incubator involves nurturing the growth of the incubatee’s business. We call this graduation and we work with our incubatees to have them graduate within three to six months of joining the Centre. When an incubatee graduates, it means her business has: a strong business and marketing plan, a growing client list, sustainable revenues, a good understanding of cash flow and tight control of its finances as well as a marketable product. Since the Centre begun participating directly in the growth of its incubatees businesses we have had over thirty graduates.”

  
  

  

  One of the boardrooms at Genius
  

  The concept of business incubators is not new, but unlike most incubators that rely on donor support or government backed funding, Genius is a self-sustaining business albeit with low margins. Ms. Matogo explains that the Centre is more of corporate social responsibility effort than a money making venture. “The founders of the Centre decided to set up an incubator based on their own hardships and frustrations when starting their business. It was an effort at giving back to the community, but the Centre has been stringently managed to ensure that it can sustain itself financially. The Centre serves a social function as well as to advertise Capital & Consulting’s products to non-incubatees. When non-incubatees see the success of our incubatees they seek out Capital & Consulting to benefit from the same services.”

  
  

  

  The members' lounge area
  

  The future of Genius is bright. With a strong understanding of nurturing and developing small businesses SoftLaw’s plan for the future is to concentrate fully on the financing and consulting arm, Genius Capital & Consulting. “A plan is already in motion to remove the monthly fee for incubatees altogether, explains Ms. Matogo . We intend to provide offices at no cost to deserving start-ups who will undergo an interview to determine the viability of their business. We will also share in their risk by becoming equity partners through buying of shares in their companies. Our belief is that simply providing offices is not a sustainable business. The motto at Genius is ‘our business is your business’. We intend to put all our resources, skills, human capital and finances in facilitating the establishment and growth of innovative Kenyan companies.”

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  Hello all Startups

   » ‎ Startups in Kenya
  Hi, finally I've posted my first blog! Been wanting to do this for a long time but lazily never got around to it. I'm an entrepreneur of sorts and my blog will concentrate on entrepreneurship in Kenya. You're all welcome to post comments.