Wednesday, August 13, 2014

To pay or not to pay goodwill: The tough choice for tenants

Most owners of business premises will ask for some goodwill amount from potential tenants. 

By EVELYNE MUSAMBI
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By EVELYNE MUSAMBI

When starting a new business, an entrepreneur needs to have enough capital for the initial stock.

But this is not the only dilemma that start-up businesses face, especially in major urban centres.

Besides the start-up capital, those who have to rent business premises are in almost all instances required to pay a "goodwill" amount.

In Nairobi, landlords are asking for up to Sh2 million as goodwill from potential tenants for an empty stall.

The new tenants have then to furnish the room to make it ready for business.

The term "goodwill" is used in business to refer to the assumed value of a business and its assets.

Business premises located in strategic places — such as on a busy street or on the ground floor of a building — attract huge goodwill amounts.

Though goodwill is not enshrined in the Landlord and Tenant (Shops, Hotels and Catering Establishments) Act, most landlords will require that it be paid before a tenant is given the keys to the premises.

Most tenants would, however, prefer not to pay the goodwill money.

This is because, contrary to its original meaning and purpose, most landlords ask for goodwill for empty buildings or stalls.

Most landlords ask for huge amounts in goodwill even on empty space

However, in most cases, tenants do not have much choice, because of stiff competition for business space.

James Kimani, a businessman in Nairobi’s central business district (CBD), says he has had to part with money in the form of goodwill to several landlords.


This money, he says, is never refunded once a tenant moves out of the rented premises.

As such, Mr Kimani is among many tenants who have lost their goodwill money to landlords.

“My understanding of goodwill is an amount you pay for an existing business that you can run as your own. We are, however, always being asked by landlords to pay them goodwill for a new stall that has nothing,” said Mr Kimani.

He added that the practice of paying the non-refundable goodwill has existed for a long time.

“Most businesspeople have now devised a way of recovering the goodwill amount when they leave their rented premises. They look for another tenant to whom they rent out the stall and who in turn refunds to them the goodwill they had paid to the landlord. The new tenant then continues paying the monthly rent,” said Mr Kimani.

According to Gichaura Wachira, an advocate who represents tenants and landlords in cases filed at the Business Premises Rent Tribunal (BPRT), goodwill is purely an agreement between the tenant and landlord that the tenant can choose to pay or not pay and opt for a premise that does not require goodwill.

“It is purely a choice and depending on how badly the businessperson needs the premises, one can choose not to pay and opt for (other) premises,” said Mr Wachira.

According to Mr Wachira, the only way to avoid extortion on the issue is to ensure the goodwill agreement stipulates key issues, such as the lease period for which the amount is valid.

“Since the law does not provide for goodwill arbitration, the agreement needs to mention that the amount is for a period stipulated in the lease to ensure the landlord does not kick out the tenant in favour of another one who pays a higher goodwill,” he added.

According to Mary Simiyu, who owns a business near the old OTC bus terminus in Nairobi, the trend has discouraged many young entrepreneurs who are unable to raise the required goodwill amount.

“It has become too expensive to rent a stall and this has contributed to the increase in the number of hawkers who would rather sell their wares along the streets,” said Ms Simiyu.

She added that a body ought to be constituted to regulate the lease terms given by different landlords to those intending to rent commercial spaces.

Traders have now formed associations to rent bigger spaces as groups so as to be able to raise the required goodwill amount.

Several buildings, mainly along Tom Mboya Street and Moi Avenue in Nairobi, have an open space that is subdivided to house different businesses.

Goodwill rates in the CBD range from as low as Sh100,000 to Sh2 million, depending on the location of the business premises and the distance of a particular stall from the entrance.

Along Race Course Road, the goodwill amount can be as low as Sh50,000 or as high as Sh600,000, depending on the landlord.

“Some landlords even increase the monthly rents without notice before the end of an agreed leasing period, especially if they notice an increase in the number of customers visiting your business,” added Ms Simiyu.

The tribunal that arbitrates disputes between tenants and landlords with lease agreements not exceeding five years has been of great help to tenants who face arbitrary rent increases or unlawful evictions.

Mbichi Mboroki, the chairman of the tribunal, said a landlord can only change the terms of an agreement if he or she gets a notice from the tribunal after having demonstrated convincing reasons for wanting to change the terms. The landlord must also comply with the requirements that allow for such changes.

“A landlord can apply to evict tenants if he wants to renovate the premises, but this can only be granted after satisfying certain requirements and having taken into account the agreement made with the tenants,” he added.

Mr Mboroki, who was gazetted as the tribunal chairman in February 2014, said goodwill is not illegal as long as a lease agreement is designed correctly and the tenant is willing to pay.

“The market has distorted the payment of goodwill from its original meaning of (the) amount paid for an existing business when transferring ownership to paying for a new premise.

“It is, however, one’s choice whether to pay goodwill or not, depending on the location (the tenant) is looking for,” said Mr Mboroki.

Thursday, August 7, 2014

Counties pool resources to cope with doctors’ exodus

By EVERLINE OKEWO 
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Early this year, health workers at public hospitals expressed discomfort at the national government’s decision to devolve the sector and have them managed directly by county governments.

Despite their protests through union officials, the government went ahead and implemented the plan, explaining that the aim was to bring services closer to people.

What followed were mass resignations by senior doctors and other health workers from public health facilities.

Counties in western Kenya were among those badly hit after more than 13 senior health professionals resigned in February from public hospitals to join private health facilities and medical colleges.

The disgruntled workers cited poor working conditions and delays in salaries.

Kenya Medical Practitioners, Pharmacists and Dentists Union secretary-general Fredrick Oluga, and chairman of the Kisumu Chapter of the Union of Clinical Nurses Eric Ondieki, confirmed that the resignation of the health workers were not only a result of delayed salaries, but also because of numerous other unfavourable workplace factors.

They singled out uncertainties about career progression, and interference in the delivery of health services by county officials. At the Kakamega General Hospital, seven out of 14 doctors tendered their resignation between November last year and February 2014.

At the Vihiga District Hospital, four doctors, including the medical superintendent and the only surgeon, resigned about the same time. At Kisumu County’s Jaramogi Oginga Odinga Teaching and Referral hospital, two doctors left.

Dr Francis Odira explained that he resigned as the medical superintendent in Vihiga to pursue other interests, such as going back to the lecture halls.

The matter has got area MPs looking for ways to reverse the trend, and learning institutions stepping in to locally train more doctors.

Kisumu East MP Shakeel Shabbir said: “Devolving health (services) without considering the capability of the county governments was a major setback... In my own understanding, the transition was totally wrong.”

With that, he announced that a bill would be discussed in parliament to push for the reversal of the devolution of the management of public hospitals.

Sabatia MP Alfred Agoi, who is a member of the health committee in parliament, hinted at a possible return of the health sector to the national government due to failure by county systems to run the health function effectively.

In view of the ongoing, some counties have embarked on partnerships with higher institutions of learning and other investors to locally train health professionals so that the sector’s demands can be met.

Ten counties in western Kenya have teamed up with Maseno University to train health specialists. The move, it is said, will help address the doctors’ shortage in the region.

Under the arrangement, each county will sponsor some of its health workers for postgraduate training on Family and Emergency Medicine at the university.

The programme will be sponsored by the Massachusetts General Hospital of the Harvard Medical School, US, Sagam Community hospital and Funzo Kenya, an IntraHealth International-led project funded by the USaid.

Maseno and Funzo Kenya have dedicated Sh1.2 million to start the project. The university will be the first in Kenya to offer Family and Emergency (F&EM) Medicine training under one programme.

The dean of the School of Medicine, Prof Wilson Odero, said the course would train a cadre of physicians to effectively prevent and manage diseases at the community level.

“It is a concern that our county hospitals, most of which act as referral institutions, lack specialists in family and emergency medicine to provide first aid skills to patients before they can decide on the kind of operation or treatment to be administered,” said Prof Odero during the launch of the programme in Kisumu on July 24.

He announced then that eight applicants from eight counties had been admitted to start the course in September. Among the counties on board are Kericho, Bomet, Vihiga, Kisumu, Siaya, Kisii, Nyamira, Trans-nzoia, Bungoma, Homa Bay, Migori, and Busia.

The practical sessions will be done at Vihiga Referral Hospital, Siaya County Hospital, Maseno Mission Hospital and Sagam Hospital.

Kericho Governor Paul Chepkwony confirmed that his administration would offer scholarships to some of its health workers to undertake the new course to increase the number of senior health professionals in the county.

“With this kind of partnership, the county governments will revolutionise the entire health sector in the next 10 years,” he said.

The five-year project aims to transform health worker education and training systems. The objective is to increase access and quality of training at the pre-service, in-service and post-graduate levels.

To qualify for the postgraduate course in family and emergency medicine, one must be a doctor with three years’ working experience.

Additionally, the County Government of Vihiga has set aside Sh100 million for expansion of the existing Kenya Medical Training College in Mbale town. Work begins this month and will be completed before end of the year.

The expansion, said Vihiga Governor Moses Akaranga, involved training more health workers to avert the looming shortage of qualified medical staff in the county.

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Thursday, August 7, 2014

More employers take to graduate trainee schemes

By KERUBO NYAMWARO
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A google search for “graduate recruitment in Kenya” yields over three million results, most of them from companies declaring themselves the best place to begin a career.

From March to June, many company representatives visit universities to sell themselves as the choice employer.

This has become the main way for many companies to fill up entry-level positions, choosing from thousands of students who graduate each year.

For university students, the last year of school is a time of rigor, attempting to be the best in order to catch the eye of at least one of the HR managers who come calling.

The recruitment is thorough, involving several levels of tests and interviews. The first would be an online application, where companies weed out graduates who lack the minimum requirements.

These minimum requirements are academic and experience based. For example, at Centum, the requirements are usually a minimum of an A- at high school, and a minimum of Second Class Honours (Upper Division) at undergraduate level.

This first step alone is enough to weed out many prospective candidates.

The second level involves an online aptitude test, where the candidates face a series of questions that do not involve any pre-existing knowledge, but rather, innate skills that the candidates should have acquired over the 16 or so years of school.

Depending on the particular company and the skills they need, this step could be broken down into more steps, including detailed essays on the company and the particular role. The candidates who make it past this step are then invited to the company for an in-person interview.

This is sometimes a group event, whereby the candidates are divided into groups of six to eight. A business case study question is posed to them and they are observed as they attempt to solve it. This is to test how they work in groups.

The successful candidates after this stage – meaning that they have good grades, have the technical know-how and can work well in teams – then proceed to one-on-one interviews, or are interviewed individually by a panel.

The ones who make it through this process are usually in for a wholesome learning process once they join the companies concerned.

Centum, for instance, takes in its 2014 graduate trainees at the end of July. The trainees are then enrolled into a departmental rotational programme that seeks to ensure that they gain an understanding of all the business processes.

Centum’s management says that the programme places heavy emphasis on developing the graduates’ leadership potential by assigning them mentors and coaches at each of the functional areas.

Centum, a regional investment firm, has invested in this process to ensure a steady stream of capable graduates in its team.

The result of the graduate programme is usually a cadre of smart, driven and most importantly, well trained young professionals, on which a company builds its future.

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Thursday, August 7, 2014

Don’t let your past define your future

By WALE AKINYEMI
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If all you can talk about today is what you used to do or who you used to be, it is obvious you are not doing much today.

You are stuck in the garden of your own success.

Many people, companies and even nations. get stuck in their past. The greatest deception about progress is thinking it has been made when in reality, there has been a lot of motion without progress.

Meanwhile, others are stuck in something totally different: their failures. They use failure as their yardstick and use it as a reference point for everything else.

Every idea or opportunity is interpreted within the context of their last failure. I cannot imagine the number of people who are today not stepping out to do something new because they are not giving the new a fair hearing.

They are always interpreting it from a position of yesterday’s failure.

There is yet another category: people who are stuck in the failure of others. They have only heard stories of other people’s failure and have based their lives and decision-making on that. 

The big question is, how do we get unstuck? How do we move out of the limitations that our past and present have imposed on our future? How do we live the life we were born to live in spite of the experiences we have undergone?

It all starts with the mind. Never allow your mind to get stuck in success or failure. Neither success nor failure is permanent. If we do not allow our minds to move on, we get stuck.

One of the greatest attributes of the human mind is its ability to paint pictures. This is called imagination – creating images in your mind. Then there is the function of the mind that creates pictures. This is the memory.

If we get too stuck in our memory, we render our imagination impotent. If we get too lost in our imagination, we will make the same mistakes over and over again.

We need to get to a point where we strike a balance between memory and imagination – where our memory should not to hold us back, but rather, propel us in a new direction that will avoid the pitfalls of the past but help reach out for future opportunities.

Relevance is not a function of how good or bad you are right now, but of how fast your mind can conceive what tomorrow will be like. Your vision of where you are going must be greater than the comfort of where you are if you are to make progress.

Your vision of where you can be must also be greater than the pain you have been through. In essence, your imagination must be more active than your memory. Your expectations must outweigh your experiences.

Every success you experience is not a destination. It is a point on the way to greater success. Each failure you experience is not a destination. It is also a point on the way to greater success.

It therefore follows that success and failure are really not opposite sides of a coin. They are merely destinations on the way to greater success. The confining power of failure or success comes from how they are interpreted.

Wherever you are stuck today, remember, there is more to you than meets the eye. Reach out for where you can be. There are people who failed more than you and still went on to succeed greatly. Similarly, there are people who succeeded more than you and went on to achieve even greater success.

You are on a journey. You will never stop until your mind stops. The engine for getting unstuck, therefore, is your mind. Never let it stop creating pictures of where you can be.

Dr Wale, an organisational and personal development coach, will be talking more on this subject at the Crowne Plaza Hotel in Nairobi on Saturday.

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Thursday, August 7, 2014

Professional maturity comes through patience

By VERAH OKEYO
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When a person’s professional life is like a catalogue of success, curiosity is bound to get the better of observers.

Such curiosity takes us to the office of Eng Job Ndege, the managing director of Protocol Solutions, a fairly new ICT firm in East and Central Africa.

His education features Oxford University’s Saïd Business School, University of South Africa’s Graduate School of Business Leadership, University of Nairobi’s Faculty of Engineering, and Alliance High School.

Eng Ndege was the first black African to be awarded Africa’s Satellite Engineering Personality of the Year, a recognition he got in 2011 from SatCom Star Awards. This is an annual competition that recognises exceptional talent in satellite engineering.

He was the also the first to win the award at an age below 40. Before taking up his present job, Eng Ndege had worked at Afsat Communications, a company he had joined in 2000. Afsat Communications later rebranded to iWay Africa.

Internet connectivity was still a new idea in Africa then, and Afsat had less than 100 customers.

In the decade under his stewardship, the company amassed over 60,000 corporate clients across 41 countries in Africa. For that, the World Communications Association in 2007 named Afsat the “Best Operator in the Developing World”.

Before iWay, Eng Ndege had been at Dyepol, also an entrepreneurial ICT firm, and at Huawei. How has he done it? First things first. Eng Ndege, 43, begins by giving a hint about his personality.

He describes himself as a “situational extrovert”. He says: “I am a very quiet, shy person, but when necessary, I become the outgoing person who is the life of the party.”

From his office in Westlands, Nairobi, the engineer says that “challenging” does not describe his journey to the top. For him, it is good education, persistence and patience.

From an early age, he says, he had made up his mind to know all there was about telecommunications. “I not only wanted to be the best technical engineer, but the best administrative engineer, so I planned and worked along that plan.”

After sitting his Certificate of Primary Education examinations, the knowledge-thirsty Ndege was admitted to Thika Technical Institute for his O-Level schooling. It was this institution, he says, that made him fall flat “in love” with what has become his career.

“By the time I was in Form Three at Thika Technical Institute, I had been taught enough to dismantle a car engine and wire a building,” he recalls.

In 1987, after four years in secondary school, Ndege enrolled at Alliance High School for his Advanced Level education, majoring in Maths, Physics and Chemistry. He emerged the ‘Best science student’ in 1988.

While many people would credit his marks to high intelligence quotient, he disagrees, saying:

“You have to give anything you do your all, such that if it fails, you know you did all that was within your power… Luckily, much of my hard work has always been rewarded.”

Ndege’s leadership qualities started to show when he became the chairperson of the University of Nairobi Engineering Students Association. He had joined the university in 1990 to study electrical engineering. He majored in telecommunications when he got to Second Year.

As chairman of Engineering Students Association (ESA), he teamed up with other students, among them the current Mukurweini Constituency MP Kabando wa Kabando, and helped to form the Student Organisation of Nairobi University (Sonu).

It was during the two-year stint in student leadership that, he says, he resolved he would always aim to be at the managerial level of any company he worked for.

“I scoured around for any tips that would aid me to that position, and I discovered it was education, persistence and patience,” he says.

In the three companies he has worked for, Eng Ndege swears, he has refused to be poached by rival companies. He spent 13 years at iWay Africa and five at Dyepol.

“It takes about five to six years for any entrant professional to master his or her career and develop a niche. You have to be patient to achieve that professional maturity,” he advises.

The engineer adds that any job, no matter how mechanical, is a project and the human resources component plays a very crucial role.

For this reason, he took up postgraduate classes on human resources management, communication and finance.

Vice President Biden also spoke at the the Business Forum today, describing the strengthening relationship between the United States and Africa and highlighting the economic progress across the African continent.“You many need to hire a creative for the communication department, and you need to learn how these people operate,” he reasons.

The engineer says he tries to balance being an analytical perfectionist that comes with his job and his social life.

“One mistake in an engineering design and you put the lives of people using a building or a satellite device at risk. That calls for perfection, something I am not apologetic for.”

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Friday, August 1, 2014

What you must do to get high yields from sheep and beans

 

SHEEP FARMING
Our farm is in Ndaragua, Nyandarua County. We currently have Merino sheep but they offer little economic value. We want to sell them all and begin taking sheep farming with the seriousness it deserves. We want to know what sheep breed will earn the most returns and what rearing practices we need to adopt and where is the potential market. I am also considering rearing rabbits, what is your advice?
Kavoi Maina

Ndaragua is in Nyandarua County in the north, where it borders Laikipia County. Climatic conditions of the area are an amalgamation of both the wet conditions characteristic of Nyandarua and hot conditions of the Laikipia County. Initially, Merino sheep were kept for their wool, which over time has lost market due to importation of cheap clothes. Compared to other breeds, it is relatively low in mutton production consequently lowering expected income.

Kenya Agricultural Research Institute, Oljoro Orok sub station has breeding stock for Corriedale and Hampshire Down where you can further inquire to purchase stock. Corriedale is a dual purpose breed, being a cross of Merino and Lincoln sheep. When well-managed, it is a good producer of both wool and meat.

On the other hand, Hampshire Down is a meat sheep and is also a crossbreed of Hampshire and South Down breeds of UK. Both the breeds are good grazers and can do well in climatic conditions and terrain in Ndaragua. Mutton market is readily available from local and external butchers abundant in Nyandarua and Laikipia. Rabbits will also do well in Nyandarua and its surrounding.

Wangui Chege,
Egerton University
prejaw@gmail.com

NEW BEAN VARIETIES

Of the three new bean varieties from Egerton University, which would do well in Nyahururu and how many kilos per acre? Gacanja

Egerton has three new bean varieties namely Chelalang, Tasha and Ciankui for medium and high potential areas.

In slightly high potential areas like Molo and Nyahururu, we recommend you plant Chelalang. For an acre, you will need to plant 25kg, costing Sh250 per kilo and will yield between 800 to 1,000kg if you manage it well by controlling weeding and spraying against insects.

Prof Paul Kimurto,
Director of Agro-science Park
Egerton University

I am very excited to learn there are more-improved high-yielding beans variety like Chelalang and Tasha. I have three-quarter of an acre in Banita, Nakuru and would like to plant Chelalang variety around mid-August. How much seeds would I need for this acreage? What’s the best spacing and where else in Nakuru can I get the seeds other than Egerton University? 

Sammy Kimotho

Egerton varieties are now popular among farmers and seed growers under contract farming after signing an agreement with university through Agro-science Park to enable Kephis inspection.

On an acre in Banita, we recommend you grow Chelalang or Tasha and for your three quarters of an acre and you need 22kg at a cost of Sh250 per kilo. Egerton bean seeds are distributed by Mea Ltd Nakuru, Menengai Veterinary Nakuru and Faida Seeds. Please Get in touch with me in case you have a problem on 0725309162.

Prof Paul Kimurto
Director Agro-science Park
Egerton University

WHERE DO I GET QUALITY SEEDS?

I have quarter an acre. I have subdivided a section for sukuma wiki and I want the rest to plant traditional vegetables, especially managu, cowpeas and sagaa. Where can I get high quality seeds.
James Ongeti

Kenya Seed Company would be most ideal for good quality seeds of vegetables
Seeds of Gold Team
Egerton University

Agriculture course

Kindly furnish me with a course that can help me learn about dairy, poultry and potato farming and any other course that would assist in production and trade.

Collins Odhiss

The suitable programme for you depending on your qualifications will be diploma or BSc in Animal Sciences, Agricultural Extension and Education or Agriculture, all of which are offered at Egerton University. For further details, kindly visit the university website at www.egerton.ac.ke.
F N Kigen, Animal Science Department, Egerton University kigenfrancis@yahoo.com

Dairy farming
I am keen to start dairy farming in Kabarak where I have an acre. Already, I have established underground water tank and bought three Ayrshire heifers and five dairy goats for a zero grazing unit with a store to hold 500 bales of hay.

I will be selling the heifers soon. My house, underground tank, zero grazing unit and hay store sit on quarter acre. Kindly I need your assistance in the following areas.

a. Where to get Ayrshire breeds and Saanen goats of high genetic potential that can yield between 20 to 25 litres and 2 litres of milk per day respectively.
b. To establish a standard zero grazing unit and milking parlour for cows and goats.

c. How to utilise my small piece of land to plant animal fodder.

d. How to make bunkers for feeds.

e. Where to fetch good price for milk (both cows and goats). Currently I am told one litre of milk fetches Sh50 in Nakuru and a litre of goat’s milk goes at Sh75.

Jepi

I will first direct you to Aryshire Cattle Breeders Association of Kenya offices housed at Kenya Breeders Association in Nakuru ASK grounds where you can obtain details on where to get excellent cattle. Again, kindly contact Nyanza Dairy Goat Association who are the breeders of Saanen goats in Kenya.

About construction of a modern zero grazing unit for cattle and goats, maximising pasture production and construction of feed bunkers, you will need to consult an animal scientist who will visit your farm and guide you on both the site and appropriate ways and technologies to maximise output from your farm and animals.

The animal scientist may also offer ideas on how to add value to your dairy products to maximise returns and profitability from your farming. Such animal scientists are at Egerton University, Department of Animal Sciences or your sub county livestock production office.

Wangui, James Chege
Department of Animal Sciences,

Egerton University
prejaw@gmail.com

I need Normande or Girlando cattle

Please advise on where I can get the Normande X, Girlando, Sahiwal, Zebu, Friesian or any other heifer crossbreeds that can survive in dry places, with higher productivity. I would be so grateful for your assistance and guidance on this.

Philip

Kindly note that there are no commercial farms producing sufficient Normande or Girlando cattle in Kenya for sale but one can get the Sahiwal cattle from Kari Naivasha Farm and other ranches in Laikipia, Kajiado and Nakuru where you can also source crossbreds of Zebu with Boran, and Friesian with Boran.

It is important to give your farms location for easy direction. I advise you to visit the offices of Kenya Breeders Association in Nakuru ASK grounds where you can obtain further details on these cattle breeds.

Musyoka Duncan Mbai, Department of Animal Sciences, Egerton University
dunmusyoka@gmail.com

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Friday, August 1, 2014

Small animals with five yields, big cash

Stanley Rono in his rabbit farm in Bomet. ANDREW | NATION 

By SEEDS OF GOLD TEAM
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Some years ago, rabbit keeping was a children’s activity, with many keeping the animals as pets.

However, with most people embracing rabbit meat and more opportunities arising from the animal’s by-products, farmers are now making good money from rabbits.

Stanley Rono is one such a farmer. For many years, he was struggling with maize at his semi-arid home in Siongiroi, Bomet until he heard of rabbit urine fertiliser.

Still undecided on when to start keeping rabbits, Kenya Com Rabbit Consortium Ltd (KCRC), which makes the fertiliser, set up a small factory near his home.

“I did not need any more convincing that I should start keeping rabbits. I knew I would get money from the animal’s meat, fur, manure and urine,” says Rono, who bought his first brood of 40 rabbits in December last year from a neighbour at Sh200 each.

“To start selling urine, one needs at least 20 rabbits. I had the numbers since my rabbits had multiplied in the previous months to 100.”
He has a simple hutch made of timber and wire mesh where he keeps 130 rabbits that produce up to 15 litres of urine daily.

He feeds them Black Jack and Pig Weed (Amaranthus). “When I feed them on grass, they produce less urine. Black Jack and Pig Weed are the best.”
Since he started, he has supplied over 1,000 litres to the company.

He also sells each rabbit at Sh800 each to farmers and hotels. The last time he sold in June he earned over Sh50,000. Robinson Runyenje, the director of KCRC, says they picked on rabbits because they are easy to keep and to encourage farmers to use the organic urine fertiliser for planting.

“The fertiliser is made from a mixture of the rabbit urine and compost manure made from cow dung, wood ash, and foliage from plants. The mixture is put in a special digester and what comes out is an organic fertiliser called Rabbit Urine Extra.”

Rabbit Urine Extra contains nitrogen, phosphorous and potassium as well as several macro-nutrients that are important in keeping plants healthy,” Runyenje says.

The company’s coordinator in Bomet, Moses Langat, says they have registered more than 600 members who currently have over 17,000 rabbits.
“Some farmers will get over Sh100,000 each. We buy at Sh100 per litre of urine from farmers.”

To tap rabbit’s urine, a hutch is constructed in such a way that the urine seeps through the wire mesh into corrugated plastic sheets, to the gutter and finally into a bucket.

A LITRE OF URINE

“It takes three to four rabbits to collect a litre of urine per day,” says Agnes Sorim, the co-ordinating director of KCRC.
She adds the fertiliser can be used as an insecticide in both vegetables and maize farms. The urine should be mixed with water in the ratio of 200ml to 20 litres. This is able to spray an acre of land.

The liquid fertiliser, which is sold at Sh650 per litre, is produced through an organic process that takes one-and-a-half months.
To get high quality fertiliser, farmers are advised to feed their animals with dry matter, which also helps in fattening them.

Evans Kiplagat, a livestock production officer, encourages farmers to get into rabbit rearing.

“The bunnies reproduce very fast thus multiplying one’s stock is easy. One then gets fur, skin, meat and urine. Not many animals offer such high returns.”

A Kenya Agricultural Research Institute study shows that rabbit urine is a concentrated liquid manure rich in macronutrients for plants and soil.

Reports by Andrew Mibei, Magdaline Wanja and Caroline Chebet

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Friday, August 1, 2014

How farmers can take Kenya to first-world

Israel Ambassador Gil Haskel. 

The wettest part of Israel is drier than Kenya’s driest areas yet the country is a net exporter of food and horticulture. Israel Ambassador Gil Haskel shared with Francis Mureithi the secrets Kenyan farmers can adapt to change their lives.

Q: Israel is a net exporter of food and horticulture, yet a good part of it is dry. What is it that Kenya is not doing right?

They say necessity is the mother of all inventions. Israel has invented and is still innovating technologies of how to grow more with less (more yield with less resources), through drip technologies, smart greenhouses and so on.

The idea is to widely implement these technologies, even though they might initially seem costly and complex, but in time pay themselves back.
Kenya should import these technologies, which are cheap, and spread them, with country wide extension services to assist and train farmers.

Only a nationwide, government supported, professional network will turn agriculture in this country around and elevate it to its correct position.

You are also big on fish farming. What can Kenya learn from it?

We have fish ponds in deserts, which to many Kenyans might sound strange. Fish needs good quality water, feeds and a systematic method of breeding. To make sure we have quality fish, we even cover the fish pond with shades.

We do breeds such as ornamental fish, cold water fish, tropical fish and water lilies that are exported to Europe fetching good money.

What is Israel’s biggest challenge in agriculture today?

LABOUR COSTS

Initially, the biggest challenge was how to transform the desert country into an agricultural country. That headache we have solved, but the current challenge Israel is facing is how its products can compete in the world market considering that labour costs are very high and the price of land is also escalating.

In Israel, unskilled farm labourer is paid Sh87,000 ( $1,000) per month while a skilled labourer is paid Sh870,000 ($10,000). That is why when you produce an apple in Israel, it is difficult to compete with the prices of an apple that is grown in China.

So how has Israel tackled this problem?

Our farmers, through advanced technology, have increased efficiency such that from one acre they are able to double their produce through irrigation and proper use of fertiliser. This is why a trader in Europe would still prefer to buy an apple from Israel because of its high quality.

What programmes does Israel have for Kenya’s small-holder farmers?

Our Agency for International Cooperation initiates and implements development cooperation programmes, through which Kenya’s smallholder farmers can benefit from our expertise and technologies that have assisted Israel in its path to development. They can also benefit from training in Israel on site and long-term demonstration projects.

The Israeli experts can also train farmers in Kenya on invitation on specific topics such as water management, agribusiness, vegetable production, dairy, aquaculture, horticulture, bee keeping, pest management and post-harvest management of crops.

What agricultural technologies can Kenya borrow from Israel?

IRRIGATION TECHNOLOGY

The irrigation technology we have is undoubtedly one of the best in the world. This is one area Kenya should take advantage of and partner with Israel fully because a large part of the land in Kenya is still virgin with quality soils. This if well-developed can turn the country into a developed economy.

Israel is ready to bring its technology to Kenya and I would like to see it happening now that President Uhuru Kenyatta has declared Galana Irrigation Scheme one of the flagship projects of his administration. However, this would only be achieved if such an ambitious project is managed efficiently.

What specific measures has Israel taken to promote agriculture in Kenya?

We have exposed and trained thousands of Kenyans in the field of irrigation, water management and currently we have more than 100 Israeli experts in agriculture in Kenya.

Israeli companies are working hard to change the mindset of Kenyan farmers so that they do not rely on rains while they could utilise the rainfall by having water tanks, reservoirs and still practice drip irrigation and enjoy good returns.

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Friday, August 1, 2014

From computers to greenhouses

Food Africa Enterprise Limited director John Maingi (left) in his farm in Kahawa Sukari, Nairobi with a friend Bob Martin Kinyua. ANTONY OMUYA | NATION 

By NJOKI CHEGE
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When Seeds of Gold meets John Maingi, he is ecstatic. He had earlier spoken to a high-profile client he had been introduced to and there were prospects he was going to offer him a job.

The client was a former government official who owns 10 acres in western Kenya. He was consulting Maingi on the best crop to plant this season.

And he had another sweet deal for him. He wanted Maingi to manage the farm. Maingi arranged to visit the farm in a week’s time for a survey before he could advise him on the way forward.

“Today is a busy day for me,” says Maingi as we settle down for an interview. That morning, he had spent some time in a five-acre farm in Kiserian where he is overseeing the installation of a full drip irrigation system for one of his clients, Kevin Salaash, 25.

“The system will be up in a week’s time, after which I will help him plant watermelons and later manage the farm.”

At 24, Maingi is the director of Food Africa Enterprise Limited, an agricultural company that offers services such as setting up of greenhouses, installation of drip irrigation systems, dam liners, fish ponds and soil and water sampling.

His love for farming began five years ago when he was a first year student at United States International University. What began as a side hustle to earn him some pocket money has crystallised into a full-blown business. When he started, farming was something he could do, but now, farming is the only thing he wants to do.

“I was watching a programme on CNN about young farmers in India. The young people had started small and were doing very well. Some of them were my age. Then I was 19. Their experiences jolted me. I soon after started to research on greenhouse farming,” says Maingi.

His parents, equally passionate about farming, were happy to support their son.

“I convinced my mother, my elder sister and brother to come on board. With a capital of Sh350,000, we set up two greenhouses measuring 30m by 100m in our compound at Kahawa Sukari, Nairobi and bought seedlings. At first, it was trial and error as we started with farming capsicum.”

The trial worked. They harvested five tonnes of capsicum and sold the produce to two companies, Fresh n Juici and Veg Pro, getting a profit of Sh500,000. Maingi did not need further convincing that farming is the ‘‘next big thing’’.

He set up his company in 2010, but he did not start with offering drip irrigation system services. He started with supplying food to restaurants and hotels around Nairobi. This opened his eyes to an untapped market of agricultural consultancy.

“I realised that greenhouses are expensive to set up for the common farmer because they could not afford the Sh300,000 on average companies are charging. I thought of introducing a cheaper option.

I partnered with a Turkish company, Vatan Plastic Istanbul, to provide farmers with cheaper polythene to set up greenhouses,” says Maingi, who searched the Turkish company online but met them for the first time in an expo last year.

The deal saw him start importing plastic materials from Turkey to make greenhouses for farmers at a cheaper price. To install a 5m by 10m greenhouse, he charges Sh95,000.

Having found market for the greenhouses, Maingi set to expand his business. His next frontier was learning how to set up drip irrigation systems that many small-scale farmers avoid because they are deemed expensive.

“Drip kit system is great for open field farming because it reduces the cost of labour significantly. Farmers stand higher chances of getting better yields from the irrigation,” explains Maingi, who got most of his knowledge by consulting experienced farmers, reading farming books and researching online. Drip irrigation costs Sh65,000 for an eighth of an acre.

WITHOUT CONSULTING ON BASICS

Maingi says that a lot of farmers get into farming without consulting an expert on the basics such as what crop to grow and how to go about it.

“Before we start any project, the first step is to do a soil analysis and the second is water testing so that if there are any pests, they are killed before we start farming. If the soil lacks nutrients, we also know what to do to correct this,” he says.

“We don’t allow farmers to grow anything. We advise them on what grows best, at what time of the year and what fetches good prices.”

In the event that a farmer decides to farm in an area that does not have a constant supply of water, Maingi normally advises them to construct a dam.
“It is important to dig and set up a dam using dam liners, which are made from block polythene,” he says.

With an income of Sh500,000 per month, the computer forensics and cybercrime graduate has found his calling in farming and he is creating jobs.

“Many people who take up farming have made it their side-hustle alongside their busy careers. In most cases they are holed up in offices chasing their careers and they hardly have time to check on their farms as often as they would wish. Consequently, their farms are neglected and the return on investment becomes dismal.”

Maingi notes that such farmers need a manager who will check on the farm constantly and give a detailed report on the progress.

“We have ground agents who are agronomists who visit clients’ farms three or four times a month and give reports. Technology is the next frontier in farming and we have developed a mobile app that makes it easier for farmers to track their crops through photos sent from their farms in real-time,” he says.

Maingi has employed 19 workers, including 15 groundsmen, two technicians who survey farms and give recommendations as well as finance and marketing staff.

“When we get big jobs, the number gets higher because we sub-contract a lot.”

When business is good, Maingi sets up about 12 greenhouses in a month, two fish ponds and a dam in a week.

ATTENDING TRAININGS

Maingi, who sharpens his agronomy skills by attending training sponsored by seed companies, also trains farmers on food safety, Good Agricultural Practice (GAP) regulations and basic agronomy. A week before the interview, he had attended training on soil and water sampling hosted by a company known as Crop Nutrition in Nairobi.

“It is important for any serious farmer to know about the GAP safety regulations especially if they want to target the export market.”

His clientele ranges from small-scale farmers who want to set up greenhouses in the compounds to women’s groups (chamas) and large-scale farmers.

“There are many opportunities in farming; you do not have to start big. Start at your parents’ kitchen garden. Once you produce something, you will see the benefits. A farmer will never sleep hungry.

If for instance I am broke today, I will harvest capsicums, sell them and get money to buy food,” he says.
So, shall he one day return to computer forensics?

“Not to fight cybercriminals. I will only go back to computers to figure out how we can use them to farm.”

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Friday, August 1, 2014

Where dairy cows live on the fast lane

Mr Terer, a veterinary officer at Technology Farm in Njoro, Nakuru County SULEIMAN MBATIAH | NATION 

By WANJIRU MACHARIA
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Many travellers on the Nakuru-Njoro Road marvel at the black and white cows because they are spotlessly clean and have huge udders sagging with milk.
This is Technology Farm, where cows live on the fast lane, eating the ‘‘finest’’ feeds in life and getting the best treatment.

Technology Farm, which is managed by Rift Valley Development–Registered Trustees, has close to 1,000 Holstein Friesian pedigree cows.
David Cheruiyot, the manager of Technology Group of Farms, says all cows in the farm are divided into groups depending on their production and reproduction stages.

This is well-documented and is registered with the Kenya Stud Book.

The expectant cows are the most pampered. They are separated from the main herd two months to delivery and placed into what is dubbed as the Maternity Wing.

Here, they are watched round the clock and treated to specially prepared, highly nutritious feed rations in preparation for calving and milk production.
Then there are the milk producing cows, which are equally treated well to maintain high production.

The 2,700-acre farm has a Sh20 million milking parlour, complete with a 15,000-litre cooling tank.
The last categories are the less producing cows and calves, which also have their own sheds.

“We are a free range farm because we have a vast land although we are now introducing zero grazing. The cows graze in open fields in the farm and at the Rift Valley Institute of Science and Technology (RVIST), which is our sister institution.”

THE COWS ARE BATHED

So, besides the separation of the animals, how does the farm keep them happy?

“The cows are bathed at least once a week, their hooves are trimmed regularly while those on a pilot zero-grazing project have bedding,” says Cheruiyot.
“There is no need to bath the animals daily since they are free range and they always have clean grounds to rest on.”

The animals are fed on commercial dairy feeds, which are supplemented by silage and fodder.

“Friesians are great feeders. We cannot sustain them on dairy meal only. We grow maize and sorghum from which we make silage,” says Cheruiyot, adding that the farm has a storage of 3,000 tonnes of silage, which can sustain them for a year.

This excludes hay and other fodder crops on the farm.

“The cows feed according to their production capacity. For the elite group, which produce 50 litres of milk a day, we give them Total Mixed Ration (TMR). This comprises of silage, hay, lucern, minerals and dairy feeds.”

The cows in the maternity wing are also fed on TMR, although they reduce the amounts of protein in their portions to prevent them from gaining a lot of weight.

“We do not shave our cows because we have to maintain their beautiful colour, but we polish them once in a while,” adds Cheruiyot.
The farm does not encourage keeping of bulls as well as male calves. They are sold, some after a week and others after three weeks, for breeding and beef purposes.
“We dispose bull calves at an early age after we ensure they have had enough colostrum to sustain their immunity. At one week, they are sold at Sh5,000. Farmers who want to use them for breeding buy them at three months at between Sh13,000 to Sh15,000.”
Those bulls that are not sold are castrated and kept as steers for meat.
However, Cheruiyot quickly adds that keeping steers in a dairy farm is discouraged because it is uneconomical. On the other hand, heifers are sold at Sh150,000. A mature steer goes at Sh80,000.
“We sell our milk to processing factories at between Sh28 and Sh35 per litre. We produce more than 5,000 litres daily. Most cows produce an average of 25 litres daily.”
The farm sells about 80 in-calf heifers a year while the demand is close to 1,000. The waiting list for this year alone is now at 658.

“In 2013, we had an order for 900 in-calf heifers and this year we are selling across the borders as Tanzanian government has placed an order for 100 cows.”

Because of the high demand, the farm is working with the East African Agricultural Productivity Programme to use sexed semen to improve availability of high-yielding cows.

“We also have another farm called Deloraine Estates where we breed cross Ayrshire cows with the hardy and disease-resistance Sahiwal breed,” he says. Their main challenge is to get protein sources for their cattle feeds and the fluctuating milk prices.

“Protein sources are cotton and sunflower cakes, which are expensive. A kilo of cotton cake sells at between Sh65 and Sh70 with sunflower going at Sh30.”

Milk prices change with seasons and supply. Sometimes they dip to as low as Sh19 per litre while the production cost stands at Sh30.
The two farms, together with RVIST, have exposed students to both theoretical and practical skills on animal husbandry.

The facility has partnered with local universities where students undertaking animal husbandry courses go for their attachment.

Cheruiyot urges Kenyans to embrace dairy farming saying it is possible to rear a dairy cow on a small portion of land through zero grazing.

He adds that farmers can enrich homemade feeds using maize, sorghum and lucerne thereby enhancing the nutritive value of feeds.

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Friday, August 1, 2014

Brighter prospects for avocado farmers

Maina Karuiru tends to his avocado trees at Kiarithaini villlage in Mathira. FILE / NATION 

By DAVE OPIYO
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Wilson Ombongi looks at his lush green farm located on a hill at Riomoro in Kisii County with pride.

The one-and-a-half acre is flourishing with beans and potatoes. This is not what is putting a smile on his face, though. He has at least 200 avocado trees, which he is expecting to harvest the fruits in a few months’ time.

As he takes Seeds of Gold round his farm, clad in a red hat and a bluish overcoat and black trousers, he is optimistic that he made the right decision to plant the fruit.

His optimism stems from the fact that the Kisii County government is in the process of setting up an avocado processing factory, which will require farmers like Ombongi to supply it with the fruits.

The plan was revealed recently by Governor James Ongwae, who said a Turkish investor will put up a Sh300 million avocado processing factory in Kisii town.

Trial runs have been completed and full-scale processing is set to begin. “We have registered farmers to be contracted to deliver the produce. The venture will create more than 600 direct and indirect jobs for our people,” said Ongwae.

It is expected that the factory will process up to 80 tonnes of avocado daily. Presently, the area produces about 80 tonnes of avocado each day, which is sold to hawkers and middlemen who export them to markets in South Africa.

“The factory will save farmers’ from exploitation by middlemen who buy the commodity at a cheaper price. It will produce juice, cooking oil and syrup extracts,” Ongwae said.

Ombongi, who also keeps cattle on his farm, says he started planting avocado trees in 2010, following a visit by officials from Export Promotion Council, who convinced him and other farmers to try it out, promising good returns.

“At first it did not work for me. Some of the seedlings I planted dried but I did not give up. I am eagerly waiting for my first major harvest. I am yet to sell the avocados to a major buyer but I know for sure that the returns will be great.”

On his farm is a new variety known as the Golden Hass, which produces all-year round. Hass Avocados are oval shaped, with a small to medium sized seed. They have a creamy texture and great taste. They also have a distinctive skin that turns from green to purplish-black when ripe.

Cyrus Nyakundi, another farmer, equates planting this variety “to a life time investment”.

“One avocado tree, after three years, is capable of giving you Sh70,000 annually. If you plant at least 280 avocado trees on your one-acre farm, you can make a cool Sh19.6 million annually.”

AT LEAST 13 MINERALS

It is also very nutritious, he says. “It has at least 13 minerals. The fruit has 32 per cent oil content as compared to the local ones that have between two and eight per cent.”

Before venturing into the trade, Nyakundi used to work for a horticultural firm in Nairobi where they would deliver seedlings of various plants to prominent individuals.

“I asked myself what these powerful people get from farming. It was only later that I learnt that horticultural crops had money. So I fully ventured into the trade.”

He is now not only a proud owner of an avocado farm at Magena having 260 trees, but also has a nursery where seedlings are grown and distributed to farmers in parts of Nyanza, Rift Valley, Western as well as Central provinces.  The nursery was set up with the help of USAid. 

“Avocado seeds are first treated before they are planted. This is to ensure that they don’t get diseases like drips or scales. We also sterilise the soil in which we transplant the seedlings. Farmers can purchase them at a cost of Sh100 per seedling.”

“During weekdays, we have at least 20 people coming to our nursery to help us plant the seeds. We have given them a target of about 700 seedlings a day,” says the farmer, who has at least 270,000 seedlings through his firm Agro Plant Technology Nursery.

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Friday, August 1, 2014

I fish Sh45,000 from my pond every three weeks

Margaret Kinyua in her farm in Meru. CHARLES WANYORO | NATION 

By MARGARET KINYUA
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Meru is known for miraa more than anything else, but there are many farming activities taking place here.

The newest one is fish and I am happy to be among those spearheading fish farming in the region, particularly in Meru South sub-county.

My business entails keeping fish and hatching fingerlings. Thereafter, I sell them to residents for meat and farmers, who are growing in numbers.
I started the business four years ago. Two things made me go into fish farming. One, the government was promoting fish farming, mainly keeping Tilapia, and two, there is a stream that passes through my farm in Kibumbu village, where I get water.

When I first heard about fish farming, I was hesitant to engage in it because I didn’t know if I will find market; mainly because people in Meru traditionally do not eat fish, and secondly, I did not have the knowhow.

Besides, I was used to tea and dairy farming, activities that I had been doing for years, but I have now scaled down to concentrate on fish.
However, a visit to the fisheries department in Chuka changed my perception about fish farming.
The officers taught me how to engage in the practice, including building ponds.

I, thereafter, bought fingerlings worth Sh20,000 from Sagana Aquaculture Research Station. Each fingerling was going at Sh20.

In total, I invested Sh45,000. I used Sh15,000 to dig the fishpond and the rest to put in manure to colour water in the pond to protect fish from predators.
My first batch of fish, which I sold in 2011 through the fisheries department gave me over Sh200,000. This encouraged me.

Later, I also ventured into production of monosex fingerlings for sale.

When you rear monosex fish, you don’t mix female and male fish. I have specialised in rearing male fish. Getting male fish is an easy process. First, you put mature male and female fish in the pond and after 21 days, the latter would lay eggs. You then extract eggs from the mouth of the female fish.

This is done by opening the mouth when the fish is facing downwards. You then take the eggs and put them in a container and later in a hatchery. After three days, you put hormones in the feeds that ensure the eggs hatch into male fish. I get the hormones from Chuka Fisheries Department.

People prefer male tilapia because it matures faster - in eight months. At this age, they have attained at least half a kilo and you can sell in bulk. When they are mixed with female, they breed and this interferes with their weight and size. Mixing the breeds also brings competition for feeds.

I learnt all this information at the Sagana Aquaculture Research Station in Kirinyaga County. I usually attend field workshops there and get professional information regarding fish.

WORK WITH EXPERTS

As in other farming ventures, you can only succeed in fish farming if you work with experts.

With the male fish, you must feed them enough food to keep on growing and attain good weight. They grow fast because they are not breeding.

The fish takes eight months to mature. A kilo goes at Sh350. Most of the time I hatch 3,000 fingerlings after three weeks, which give me good money. I spent about Sh30,000 on the fingerlings and sell each at Sh15.

My take is that fish farming is lucrative. I have put my fish ponds on a quarter acre but I get more money from the venture than what I make from tea, which is on more than an acre.

I also engage in poultry and dairy farming.

The main challenge with fish is feeds. Getting pellets is a problem since a 20kg bag goes for about Sh3,500. Sometimes I buy dairy meal and mix it with fish meal.

I plan to buy machines to make my own feeds using sunflower and other ingredients that we have been taught by specialists.

We sell the fish locally since the residents now eat the delicacy. Chuka Fisheries Department assists us a lot. They have a deep freezer where we store our fish and they help us in distribution.

We are happy that there is a firm called Mt Kenya Fish Company that intends to give us feeds and other inputs and then recover it after we harvest.
The company is setting up a fish factory with a capacity to process over 20,000kg per day. It is in Tunyai, Tharaka South sub-county.

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Friday, August 1, 2014

We’ve defeated Osama with simple silos

A farmer removes maize from the silo in Nakuru . PHOTO I CHEBET CAROLINE  

By RACHEL KIBUI
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The name Osama normally sends shivers down the spines of many cereals farmers. But it is not Osama bin Laden, the terrorism kingpin killed in Pakistan in 2011.

For the farmers across the country, Osama refers to a deadly weevil that can decimate thousands of bags of maize or beans in a short period.
They nicknamed the weevil known as Larger Grain Borer Osama because of its harmful effects.

Farmers in Wanyororo, Bahati sub-county, Nakuru are among the worst hit by the weevil. Osama started terrorising them about three years ago. To avoid losses, they would sell their produce soon after harvesting.

But that is all in the past. Today, the farmers have found a new gadget that enables them to conserve their maize and beans without even adding pesticides.
The gadget dubbed Metal Silo is cylindrical and was designed by Catholic Diocese of Nakuru (CDN).

“It enables farmers to store their maize as long as they wish after harvesting. They can, therefore, not worry about weevils, rats and other destructive pests,” said John Muraya, agricultural programmes officer with CDN.

The farmers buy the metal silo, which costs Sh18,000, in groups.

“We first started with each farmer contributing Sh3,000 for registration with CDN. One must be in a group of at least 10 farmers. Those are CDN conditions,” said Florence Kamonjo, a member of Karucua Farmers Group, whose home is being used as a demonstration centre to showcase the effectiveness of the storage method.

Thereafter, each of them paid Sh1,250 for 12 months to have completed the total cost of Sh18,000 at which point CDN sells the silo. However, one can pay in cash at once.

When the Seeds of Gold team visited her home, Kamonjo was happy, with her maize having remained clean, uninfected and with no chemicals.
“The metal silo ensures there is no oxygen or moisture in it to avoid decomposition of maize, which leads to pests,” explained Muraya.

To use the gadget, one puts the grains inside. One then places a lit candle in the silo and covers the lid. Immediately all oxygen burns, the candle goes off.
Farmers fetch the produce from the gadget that should be placed on a raised platform from an outlet at the base.

Maize, according to Muraya, is supposed to have not more than 13 per cent moisture context before being put in the silo.

The officer says the metal silos have great advantages. “They take up very small space compared to gunny bags. The silos occupy a space that can accommodate two bags of maize, yet store maize that fits in 10 bags,” said Muraya.

Farmers growing other cereals like rice and wheat can also use the method of preservation to not only curb post-harvest losses, but also ensure convenience and save space.

Since CDN came up with the technology in December last year, they have sold 64 silos to farmers mostly in Nakuru County.

Before releasing the silos to farmers, CDN sought approval from Kenya Agricultural Research Institute, according to Muraya.
“I have so far preserved 10 bags of maize in my silo without using any chemicals,” said Wallece Wamwangi, a farmer.

Last year, Wamwangi had to sell his 12 bags at Sh1,800 in February having harvested in December to avoid losses.

Sh3,200 A BAG

Having invested in the new technology, Wamwangi expects to sell his 10 bags of maize this time round for at least Sh3,200 per bag in the coming months.
“That means I would have made Sh1,400 per bag compared to what I did last year yet I did not buy pesticides,” said Wamwangi

Kenya Agricultural Research Institute (Kari) senior researcher Paddy Liahayo says the Metal Silo works by ensuring the level of oxygen within the tank is not more than 10 percent.

He adds that farmers need to raise their silos by placing them on wooden pallets.

“Raising the pallets is necessary as it ensures the silos do not get into contact with moisture, which can cause the metal to rust. Rusting would not only damage the silos, but also make room for oxygen entry thus, creating a conducive environment for insects’ survival.”

Though farmers can raise their silos at a low level depending on availability of space in their stores, Liahayo recommended that they should be placed one metre high.

The tanks come in different sizes. The one in the market currently holds 900kg of maize or beans, which is an equivalent of 10 bags.
However, there are others that carry five, eight, 20 and 30 bags, with the biggest going for Sh35,000.

Muraya said the technology was introduced to CDN by International Maize and Wheat Improvement Centre (CIMMYT), a Mexico-based NGO. CIMMYT paid half the cost for the first 30 farmers.

CIMMYT, he added, also funded Kari to research on the technology as it had to confirm it before CDN would start selling the silos.

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Friday, August 1, 2014

New on plate: Biscuits made from crickets

Researcher Jackline Oloo with fried crickets in Bondo. TOM OTIENO | NATION 

By EVERLINE OKEWO 
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Prof Monica Ayieko sits calmly in her office at Jaramogi Oginga Odinga University of Science and Technology (JOOUST) in Siaya County waiting for her next lecture.

She keeps on checking her watch as she answers questions from Seeds of Gold, relating to her love for insects.

Her area of specialisation is edible insects, specifically termites and crickets, and for the past 13 years, she has been doing research on them and others with an aim of increasing food production.

“People are becoming cautious about animal protein, that is why we scientists are shifting focus to insect-rearing to provide alternative source of proteins,” says the professor of Consumer Economics, Department of Food Security.

Prof Ayieko has done research on production of termites, lake flies, locusts and black ants. Her recent research is on cricket-rearing, which she says has a sustainable production.

Crickets are brownish black insects. They have round heads, long and thin antennae and their wings turn down on the sides of their bodies. They live in the soil and hide under dead plants and bushes.

She started the project in 2012 after a thorough research that included their nutritional components and value addition aspects.

According to the lecturer, crickets, which have been proved to contain a concentrated protein, can be processed into muffins, biscuits, sausages, meat loafs, porridge and chapati.

With her undergraduate students, Prof Ayieko says she went to a bush near the university in search of crickets.

“We trapped 30 crickets after a three-hour expedition,” she says. They then put the crickets in a glass cage to observe their behaviour.

“After putting a cotton roll moistened with water, we realised that they could survive outside their habitat. The crickets started reproducing small, yellow and cylindrical eggs, which hatched to produce pin heads (baby crickets),” recalls Jackline Oloo, a student researcher.

Prof Ayieko says they harvested 20kg of crickets, which were distributed to farmers in Siaya and Homa Bay counties.

Currently, there are a total of 561 farmers who are rearing crickets in counties in Nyanza. Also on board are some 25 farmers in Bomet, who were recently trained on the same project by the university.

“Our role as the university is to research and disseminate knowledge on how we can improve food security by embracing edible insects.”

Following successful research, JOOUST through Prof Ayieko received a funding of Sh450,000 from an organisation in Netherlands to expand cricket production.

With the funding, they bought 100ml buckets for farmers to rear the crickets. Each bucket retails at Sh1,200.

MAKE MUFFINS, BISCUITS, SAUSAGES

The university has put the farmers in groups of 50. Each group rears the crickets, dries them and later uses them to make muffins, biscuits, crackers and sausages.

Japheth Alula, a beneficiary of the project, says he now supplements maize farming with crickets to improve his income.

“Crickets reproduce fast. If you keep them in a warm place and provide them with water and vegetables, you are certain of better returns after a week,” says Alula.

Every week, he harvests between 15 to 20kg of the insects. A kilo of cricket goes for Sh500 and a petri dish of cricket goes for Sh200.
He sells his products to households, retail shops and supermarkets in Nyanza.

Prof Ayieko, who is currently researching on large-scale production of crickets, says the insects are rich in iron, zinc and copper. 

She is also working with two doctorate students who have secured Sh24 million to do research on the viability of crickets for commercial farming.

To make cricket biscuits, mix cricket flour, baking powder, salt, margarine and sugar until it becomes creamy. Thereafter cut the dough into small pieces and bake.

The insects can also be fried, crushed and the powder mixed with amaranth flour to increase nutritional value. The flour can be used to make dough for baking.

For sausage, the crickets are pounded and mixed with additives to add flavour. Thereafter, they are mixed with special bread crumbs and then deep fried.

“It takes about three months to harvest crickets, but we are now working on a possibility of reducing that time to eight weeks,” says Prof Ayieko.
She has done cricket presentations in Italy, South Africa, Uganda and Tanzania.

When kept under refrigerators, the product’s shelf-life can extend to six months.

She is looking forward to processing biscuits for nursery kids since they are healthy for children.

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Friday, August 1, 2014

GREEN MARKET : Where buyers and producers meet

BUYERS

EGGS: We need 100 trays of eggs per week. Any ready farmer out there?
Contact: Mister Eggs Supplies 0722763441
Email: mreggs@procure.co.ke

CHICKEN MASH AND ANIMAL FEED: We’re seeking distributors and buyers of high quality pelletised and non-pelletised chicken mash and other animal feeds.
Quantity: As per demand
Contact: Msafiri 0752545468
Email: msafiri.mkuu@yahoo.co.uk

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EGGS : Looking for steady supply of eggs within Nairobi.
Contact: 0726985975
Email: salesinnov1@gmail.com

BEANS: I am looking for the new bean varieties, Chelalang, Tasha and Ciangui.
Contact: 0725847608
Email martolace09@yahoo.com

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LAND: I am a young man with an interest in conservation agriculture. I am looking for land to lease long term (five years) within a 30km radius of Njoro Town, Nakuru, approximately 30 acres with at least five acres and accessibility to water.
Email: danlou87@gmail.com

SIMSIM SEEDS :We are looking for simsim seeds over 20 tonnes and a regular supply. Please advise availability price and quantity. Either in Kenya, Uganda and Tanzania.
Email: info@hetsc.co.ke

*********

TILLER/POWER MACHINE: I want to know if anybody knows where I can buy a tiller/power machine for personal tilling? This machine is good for medium agribusiness people.
Email: kirwokin@icloud.com

RABBITS: We want to purchase 12 rabbits (10 females and two males). Please give price and specify type (local or exotic).
Location: Nasewa, Busia County
Contact: Emmanuel 0727847720 or Collins 0727840397
Email: sbsafrica@gmail.com

**********

GOATS: I am looking for Toggernburg goats. Please state price and how they can be delivered.
Location: Thika
Contact: 0724803940
Email: ndungukagera@gmail.com

**********

KIENYEJI EGGS: I am looking for a supplier for fertilised kienyeji eggs
Quantity: 250
Location: Murang’a
Contact: Charles 0722303002
Email: githinjic11@gmail.com

******

SELLERS

WATERMELON: I have four acres full of watermelon. I am looking for potential buyer
Location: Shimba hills, Kwale County
Contact: 0710845788
Email: petero_washa@yahoo.com

********

ARROW ROOTS : From Meru County
Quantity: As per demand
Price: Sh80 per kilo
Location: Nairobi
Contact:0721942304
Email: chegematati@ymail.com

********

GREEN GRAMS AND DRY MAIZE:
Quantity: 1,500 bags (green grams) and 2,000 bags (white maize)
Contact: 0725055887
Email: brightsolutionskenya@gmail.com.

*******

GREENHOUSES:
Quantity: As per demand
Location: Nyeri
Contact: 0705922288
Email: kenchirachira@yahoo.com

******

GREENHOUSES:
Quantity: As per demand
Location: Ruai, Nairobi
Contact: 0726946938
Email: wilsonmuthoka2@gmail.com

*******

INCUBATOR: Fully automatic 96
kienyeji egg capacity incubator. It automatically turns eggs every two hours. Hatch your own chicks every 21 days to grow your poultry business quickly.
Price: Sh26,000
Location: Nairobi
Contact: James, 0717622485.
Email: jameswaiguru@gmail.com

*******

HONEY: Natural pure and refined honey
Quantity: As per order
Location: Aberdares Apiaries, Maragwa, Muranga County
Contact: 0770191789
Email: aberdareshoney@gmail.com

**********

INCUBATOR: Automatic chicken egg incubator
Quantity: 100 different sizes
Price: Ranges from Sh25,000 to Sh180, 000
Location: Nairobi
Contact: Cyrus 0722519547

*********

KIENYEJI CHICKEN:
Quantity: As per demand
Price: Sh700 to Sh1,000
Location: Kitui County
Contact: 0722563672
Email: augustinekitute@gmail.com

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LAND: I am selling 1.6 acre agricultural land next to a dam near Machakos town.
Contact: 0770527432

LAND: Three-and-a-half acres available in Red Hill, Kiambu County.
Contact: Charity Mwaura, 0733563722
Email: agricultureleasingkenya@gmail.com

*********

LAND: I have a quarter acre plot at Ruiru, next to Spiners&Spiners, 150m from tarmac, ideal for greenhouse and chicken rearing. Water and electricity is available. Cotton soil. I want to lease it.
Contact: 0722932122
Email:Nativegirl.joy@gmail.com

LAND: Three acres piece of land at Joska area, about 4km off Kangundo road for long or short-term lease. The land is generally flat, good for any agricultural activity like poultry, pig keeping and dairy cattle rearing.
Contact: 0727818184
Email: githuephantus@yahoo.com

********

FRIESIAN HEIFERS: In-calf Friesian Heifers
Quantity: 10
Price: Starting from Sh150,000
Location: Githunguri, Kiambu County
Contact: 0724216178
Email: jmskageche@gmail.com

CHICKEN CAGES:
Quantity: 120 birds
Price: Sh38,000
Location: Ruiru, Kamiti Road
Contact: 0722 286 269, 0722 286 272,0722 854 191

GREENHOUSES: specially built for the tropical regions, greenhouse crops management, drip irrigation, special irrigation (bananas, coffee, fruits, trees and gardens lawns. Quantity: As per demand
Price: Negotiable
Location: Nakuru
Contact: Ngari Mugo 0723834721
Email: okmulgee.engineering@gmail.com

GUM TREES: Mature blue gum trees, eucalyptus grandis species.
Quantity: 300 trees, 10,000 seedlings
Price: Sh1,000 per tree and Sh20 per seedling
Location: Essunza near Mwichio shopping centre, Emuhaya Constituency.
Contact: Charles Butiko 0723119111

PASSION FRUIT SEEDLINGS:
Grafted purple passion fruit seedlings
Quantity: As per demand
Location: Eldoret
Contact: 0721235029
Email:cbusienei@yahoo.com

********

NUTMEG:
Quantity: As per demand
Price: Sh1,200 per kilo
Location: Nairobi
Contact: Ali, 0789347737
Email: francian45@yahoo.com

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WATERMELON:
Quantity: Sweetrose. Planted on an acre
Price: Farm gate, Sh30 per kilo
Location: Oluch-Kimira Irrigation Scheme-Homa Bay County
Contact: David 0724527294

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PASSION FRUIT SEEDLINGS:
Purple passion fruit seedlings. Already sprayed with foliar fertiliser.
Quantity: As per demand
Price: Sh40 per seedling
Location: Kericho
Contact: 0724062800
Email: oliverolliemutai@gmail.com

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DUCKS:
Quantity: 20
Price: Sh3,000
Location: Kitengela
Contact: 0719106000
Email: waruingeh@yahoo.com

*******

RABBIT MEAT:
Quantity: As per demand
Price: A kilo @ Sh650
Location: Nairobi
Contact: 0723681558

********

KUROILER CHICKS
Quantity: As per demand
Price: Three days old at Sh50 and three weeks old at Sh220
Location: Nairobi
Contact: 0728343327

*********

DAM LINERS: For water storage and agricultural uses.
Quantity: As per demand
Price: Sh200 per metre
Location: Nyeri
Contact: 0704586333/0721355142

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YELLOW CAPSICUM
Quantity: Weekly harvest  of 100kg
Price: Sh150 per kilo
Location: Ruringu town, Nyeri
Contact: Patrick Nduhiu 0722607152
Email: nduhiup@gmail.com

*********

INCUBATORS:
Quantity: All incubators available at in terms of 50 to 100 pieces.
Price: 36 eggs at Sh20,000, 164 eggs at Sh45,000, 176 eggs at Sh55,000, 328 eggs at Sh65,000, 528 eggs at Sh70,000 and 1,056 eggs at Sh100,000.
Location: South C, Nairobi
Contact: Jimleen, 0722237617 James Gitonga or 0722965010
Email: jimleen2008@yahoo.com

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KIENYEJI CHICKS
Quantity: As per demand
Price: Sh130 for one-week-old and Sh150 for two-weeks-old
Location: Rongai
Contact: 0726130418
Email: dunake@gmail.com

**********

KIENYEJI CHICKEN
Quantity: As per demand
Location: Kasarani, Nairobi
Contact: 0771 982852

**********

INCUBATORS AND KIENYEJI CHICKS:
Quantity: 100 kienyeji two months old chicks and auto incubators with a capacity of 264 eggs and a humidity pump.
Location: Gesonso, Kisii County
Contact: George Kiriama, 0728 732 389
Email: georgekiriama@gmail.com

**********

TREES: Trees for sale in Nyandarua
Quantity: As per demand
Price: Negotiable
Contact: Simon 0725694224
Email: simonwathua@gmail.com

**********

BROILER CHICKEN:
Quantity: 200 per month
Price: Sh400
Location: Katito, Sondu
Contact: Erastus Ouma, 0725177356
Email: erastusouma@gmail.com

FARM TRACTOR: MF 240 (Reg. KAC) complete with new two bottom Faima Plow available
Price: Sh800,000 (negotiable).
Location: Fort Ternan, Kericho County
Contact: Roy, 0724377685/ 0736065613
Email: okothroy@gmail.com

**********

CHARCOAL BRIQUETTE MACHINES:
Quantity: Place your order and have it ready in two weeks. 40 per cent deposit on order.
Price: Sh95,000
Location: Eldoret
Contact: Sylvia, 0700187667/ Emily 0722620615
Email: sylviawkaranja@gmail.com

**********

DAIRY COWS: Type, Friesians, Holsteins, Ayshires, Guernseys and Fleckvieh
Quantity: Lactating and In-calf producing 20 to 40 litres of milk.
Price: Sh100,000 and above
Location: Kiambu
Contact: 0789628809/0721736200
Email: agrifarmsupplies@gmail.com

***********

COCONUT OIL: Virgin coconut oil
Quantity: As per demand
Location: Mombasa
Contact: 0722806261
Email: polluxservices@gmail.com

**********

POMEGRANATES FRUIT SEEDLINGS.
Quantity: 1, 000
Price: Sh200
Contact: 0733732851

**********

RABBITS
Quantity: 50
Price: Sh1,000 and Sh1,500 each
Location: Ongata Rongai
Contact: Daniel Gachara. 0722639875

                                                           

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Wednesday, July 30, 2014

Garden City targets energy savings with solar panels

An artist's impression of Garden City Mall. The mall plans to install a solar panel-covered car park to generate energy for use by tenants. 

By EVELYNE MUSAMBI
More by this Author

Garden City mall plans to install a solar panel covered car park to generate energy for use by tenants.

The plan was announced by Actis’ Investment Principal Koome Gikunda on Wednesday who said the plan will take advantage of the country’s solar resources.

“We were looking for a turn-key solution that could produce clean power and pay for itself with the energy it produces,” said Gikunda.

The panels to be installed on the roof of the 50,000 square meter mall are expected to produce approximately 1,246,000 kWh per year.

The solar energy project is also set to reduce emission of Carbon Dioxide by an estimated 492 tonnes per year.

Garden City, the new 32-acre integrated residential, retail, park, hotel and office development on Nairobi’s Thika Superhighway, is being developed by Actis using a ‘green-by-design’ approach.

The installation of the solar panels will help Garden City achieve its Leadership in Energy and Environmental Design (LEED) certification.
The planned solar system will be installed by NVI Energy who will operate and maintain the system for 12 years.

The system will automatically switch over to provide power together with back-up generators during times when the power goes off, reducing diesel use and saving money.

ADOPTED

Solar energy is being adopted in the country to provide cheaper power with Strathmore University being the latest entrant with 0.6MW solar system on its Madaraka Campus roof top tied to the national power grid which started lighting up the university last month.

The solar system was first adopted by Unep headquarters in Gigiri that produce 500 KW followed by Williamsons Tea Factory with its 1 MW produced at its Changoi farm in Bomet County.

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Thursday, July 24, 2014

Coffee farmers may miss pay due to elections

Coffee farmers attend a special general meeting of Barichu Farmers Co-operative Society in Nyeri on July 22, 2014. The board of Kenya Planters’ Co-operative Union has warned that payment of coffee farmers’ arrears is in jeopardy due to uncertainty brought about by calls for elections. Photo/ JOSEPH KANYI 

By MWANIKI WAHOME
More by this Author

The board of Kenya Planters’ Co-operative Union has warned that payment of coffee farmers’ arrears is in jeopardy due to uncertainty brought about by calls for elections by the ministry of industrialization and enterprise.

They have demanded the ministry officials to declare their interests over the controversial elections they have called for August 31.

Speaking during a media visit at Dandora plant that is under renovation, the board said they were surprised about the way the ministry was handling the matters concerning the revival of the farmers’ union.

“We want the Cabinet secretary, the principal secretary and the commissioner of co-operatives to declare the interests they have in the elections that they have called without informing board members,” said the managing director, Mr Joseph Kioko.

They said the elections could scuttle the plans to bring the union back into operation as the funding that resulted in lifting of receivership was tied to the stability in the board’s tenure of office that ends in 2016.

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Monday, July 28, 2014

Innovator’s portable bio-gas unit boon for farmers

AquaSanTec Group chairman Chandu Shah. BILLY MUTAI  

By EVELYN SITUMA

After 50 years of working in the corporate world — both as a lawyer and owner of AquaSanTec Group, the holding company for Kentainers Ltd (manufacturers of Kentank) — Chandu Shah has decided to focus on helping small-holder farmers improve their livelihoods.

For the last four years the Kentainers Ltd chairman has travelled across continents, meeting experts as well as researching and printing information on sustainable agriculture. The knowledge and exposure received has seen the businessman manufacture a portable biogas plant, BlueFlame BioSurriGaz, to help farmers increase production and improve their lives.

The 3.2 cubic metre digester and three cubic metre gas holder is noticeable among hundreds of large tanks at their Embakasi, Nairobi, factory.

Uptake of the portable biogas unit is picking up, with more farmers’ organisations buying it. Kenya National Domestic Biogas Programme (KENDBIP) and Kenya National Farmers’ Federation (KENAFF) are some of the institutions drumming up support for the unit.

New Kenya Co-operative Creameries (New KCC) has already committed to making the unit available to its 6,000 dairy farmers.

“Our concept does not call for any resources from the central or county government (unless they want to assist) and a smallholder with a cow or two is encouraged to rely on their own resources,’’ said Mr Shah.

Transform lives

His BlueFlame Gaz crusade is aimed at helping farmers use what they have to better their yields without spending more on farm inputs and labour. To him, a biogas plant and other basic needs like water are enough to transform poor farmers’ lives.

Mr Shah said that he is out to offer farmers a new lease of life and transform them economically through adoption of the Sustainable System of Crop Intensification (SSCI) practice.  The system embraces use of slurry (a by-product in the production of biogas) as fertiliser.

“Farmers don’t have to buy more fertiliser to get more yields. They can use what they have sustainably to get more. For instance, they can adopt the System of Rice Intensification (SRI) or SSCI to lower the cost of inputs and labour,” he said.

SSCI advocates use of slurry in farming, adequate spacing of seeds, growing fodder using hydroponics, wise use of fertiliser and good use of water. These are simple things that have increased yields by over 30 per cent in India, Cuba and Ethiopia among other places.

Unlike cow dung, slurry has a high composition of phosphorous, potassium and nitrogen, vital soil nutrients. This is where the BlueFlame brand comes in. Farmers get to have clean energy for cooking and also use the slurry to boost production of crops and fodder for cows. The gas and the bio slurry are made by mixing cow dung with water and pouring it inside the unit.

“A mixture of cow dung and water is fed into the BlueFlame twice a day to produce slurry, a nutrient-rich organic fertiliser. The biogas is enough for most household needs saving them costs of charcoal, firewood, kerosene and time. Farmers can also apply slurry on their crops for amazingly high yields and superior quality of produce,” he said.

Alfred Kilonzo and Charles Mbuvi, farmhands at a farm in Kimangu, Machakos County, attest to the usefulness of the BlueFlame unit. The two were fond of using firewood to boil water used in cleaning milking utensils. But this has since changed. A mixture of a 20 litre bucket of cow dung and 20 litres of water is enough to serve their daily cooking energy needs.

Installs units

Aside from that, Mr Mbuvi, says the biogas unit has helped them increase yields at the once barren land. It all started with a shrivelled mango tree at the edge of the farm. “I just dug a hole around the tree and poured slurry and mixed it with soil. To my amazement the tree was back to life in just three weeks,” said Mr Mbuvi.

Excited, he went on to dig a large composite pit where he keeps excess slurry. “We pour it here (the pit) and later use it in the farm,” he says.

They collect more than 40 litres of the fertiliser each day. He applied the organic fertiliser on maize during the last planting season and was not disappoint. But his happiness lies more in increased mango yields. The Food and Agriculture Organisation (FAO) recently published information on slurry in which they referred to it as brown gold.

“Millions of smallholders all over the world are adopting the use of slurry and other practices of SSCI on a wide variety of crops and fodder. We must enable our farmers to produce more with less from the same land and labour.  Such rapid adoption will be a key driver of more equitable and balanced rural development,” said Mr George Nyamu, the KENDBIP project co-ordinator.

The portable biogas unit costs Sh95,000. The package includes a BlueFlame unit, loan to buy the product, milk purchase by New KCC and an IT platform. Kentainers sells and installs the unit for farmers. The firm additional provides a two-burner biogas stove.

As Mr Shah leaves the work of selling the units to his team as he continues to research on sustainable farming, innovative farmer-friendly products, sourcing for cheap credit for farmers, and pushing the government to zero rate equipment used in biogas units. Last year, his plea to the Treasury went unanswered but he remains undeterred.

esituma@ke.antionmedia.com

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Monday, July 28, 2014

Young techies click on idea for easier shopping and delivery

From right, Savana Kenya founders Jason Oteng-Ngame, Bradley Opere, Anthony Maina and Morgan Muchemi during the interview with Business Daily. Savana Kenya is an online shopping platform with a delivery service. DIANA NGILA  

By Annie Njanja

Rarely do you find teenagers deliberating on starting a business. In most instances, their minds are on completing high school and joining tertiary institutions. But the case was different for the founders of Savana Kenya.

The group of six met while attending the Africa Leadership Academy. Although they followed different paths on completion of the training, they shared a common dream of becoming entrepreneurs.

It came as no surprise that they started their entrepreneurial journey by launching Savana Kenya, an online shopping and delivery service portal. The inspiration behind the product was the heavy traffic experienced in major city roads, which makes it difficult to visit a shop, and long queues in the supermarkets during rush hour.

Launched last month, the platform, created by Jason Oteng-Nyame and Anthony Maina, is designed to bring convenience to shoppers by allowing them to buy goods online and have them delivered to their doorsteps within two hours at a cost of Sh300.

“There are a lot of opportunities in e-commerce and we are striving to offer Kenyans a great online shopping experience for consumer goods,” said Mr Maina, Savana’s co-founder and chief executive.

Commenting on the viability of the business Mr Maina said: “An in-house study revealed that middle-income earners are tied up at work most of the time, especially during weekdays, and find little time to check into supermarkets. Our service is tailored to give them convenience and make it possible for them to engage in other businesses when they are free.”

The founders are well-organised with each having a defined role. Three Kenyans – Bradley Opere, Mr Maina and Gabriel Wamunyu – serve as executive-director, chief executive officer and chief technical officer respectively.

Mr Oteng-Nyame from Ghana is the chief financial officer, Tapiwa Lionel from Zimbabwe is the online marketing manager while Dofan Aziz Kone from Cote d’Ivore has no defined role but is involved in decision-making.

The founders, all still below 22 years, hope to attract venture capitalists to provide counsel and much-needed capital to improve the business. They are currently growing their online presence and hope to increase the number of visitors to their website from the current 400 a day and convert them into business. They are also working to improve the website to make it more user-friendly.

And to offer what they term affordable rates to consumers, one of Savana’s strategies is to strike a deal with manufacturers to provide consumer goods at competitive rates. Their long-term plan is to own a warehouse to ensure a constant supply of goods, which will allow them make deliveries at their own convenience.

Although the online shopping culture is yet to catch on locally, they are optimistic their portal will change this trend by engaging the growing number of tech-savvy but busy people.

“The service is customised to every individual. If you want shopping dropped at your office that is exactly what we will do,” said Mr Opere.

As they wait for domestic business to pick up, they are currently focused on making deliveries to offices at a cost of between Sh500 to Sh1,500. They have segmented the areas of operation and will roll out their services countrywide gradually. They are also increasing manpower for faster delivery of orders.

To cover a wider network, they are in talks with the developers of Sendy, an app that connects senders and a network of transporters.

Because half the founding team is set to return to the US for studies, they are making arrangements to ensure uninterrupted business in their absence. Savana’s head of recruitment, John Njoroge, and the chief operations officer, Morgan Muchemi, will oversee local operations after the other members fly out in August.

ANjanja@ke.nationmedia.com

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Thursday, July 3, 2014

Success in Australia helps investor see IT potential back home

By JOSHUA MASINDE
More by this Author

One of the most difficult decisions that Ahmed Yusuf has ever had to make was to leave Kenya with his family in 1998 and head to Australia to start a new life.

Life in Kenya then was uncertain and the business environment difficult. The Kakamega-born Yusuf had worked for various local and international firms in Nairobi.

A company he was working for during the reign of then president Daniel arap Moi closed shop due to dwindling business.

Kenya then was a good example of what The Economist magazine termed “The Hopeless Continent” in 2000.

However, 16 years later, the Kenyan-born Australia-based businessman could not resist the temptation to come back home to exploit the opportunities in Kenya and in much of the continent that The Economist would later in 2011 refer to as “The Hopeful Continent”.

STOPPED WORKING

“I went to Australia because I wanted a change of scene for my family. Security was a problem, corruption was at its height, and things were really bad in Kenya.

“Even when I was in Australia, the reports I received up until 2002 were disappointing,” he said during an interview.

Yusuf established several businesses that he now says are worth at least $10 million (Sh870 million). 

He has been in business since 2010, when he stopped working as a general manager for a firm in Australia.

The businesses he established range from a college that offers courses in building and construction from certificate level to advanced diploma and an early childhood enterprise that assists working or at-school parents who may be working or studying full-time to care for their children from the time they are born to the time they start school.

He also started a technology firm specialising in software development for firms back in Australia.

He is now exploring prospects of extending his business to Kenya and other parts of Africa, where he sees a lot of potential for growth.

AUTOMATE REVENUE COLLECTION

“We have a range of businesses that operate in Australia. The first one is a college that trains people building and construction from certificate level to advanced diploma.

“Often, people who come to the college hope to get a certificate or licence to become builders. In Australia, you cannot build a house until you get a licence,” Yusuf said. 

The technology firm, Plycode, is a custom software company that offers services and systems to companies seeking to automate their revenue collection, accounting, or car tracking software.

Currently, Yusuf is exploring partnerships with young technology companies in Eastern Africa for purposes of engaging their respective strengths to deliver outsourcing services to firms abroad or within the region.

KONZA CITY

The partnership with local companies would entail collaboration in the development of information technology projects depending on the respective strengths of the individuals or firms involved.

In Australia, he also runs an ICT recruitment board, Kazileo, for IT jobs in Australia.

“Within a year, we are going to introduce it to Canada, the UK, New Zealand, Malaysia, and Singapore. We have introduced another one for Africa, Employfy, a database for job seekers and employers,” he said.

With blue-chip firms like Toyota and non-profit organisations in their portfolio, Plycode has also built revenue collection systems for firms in Australia.

Yusuf believes that Kenya now has the desire to grow and achieve a lot more for its population and that IT is one of the areas that will help drive the economy forward.

There are many opportunities to be exploited, especially on the ICT front as many things in the country are still manual.

“If Konza City becomes a reality, there will be more business outsourcing in ICT firms and opportunities coming here,” he said, adding that opportunities in the IT sector lie in automating accounting systems and discarding the old manual ones.

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Thursday, July 3, 2014

Sh200 treat blooms into lucrative venture

Mr Norman Kuria at his stall that he started after being released from jail. Photo | SULEIMAN MBATIAH

Mr Norman Kuria at his stall that he started after being released from jail. Photo | SULEIMAN MBATIAH 

By CHEBET CAROLINE
More by this Author

After he was released from jail and without a cent, Norman Kuria bumped into a friend who gave him Sh200 for a meal.

In 10 years, Kuria had turned the Sh200 into a multi-million shilling project.

Kuria invested the money in a few pairs of socks, which he hawked in Nakuru town.

The business has now expanded to property such as land, houses, and car firms. “It was still early in the day when I was released. I was confused since I did not have even a shilling.

A long-time friend offered me Sh200 to buy lunch. I quickly approached a hawker to introduce me to the business,” Kuria told Money.

His aim was to make a little more money to pay for his lunch and fare back to his parents’ home.

GOING BACK HOME

The hawker led him to a wholesale kiosk where he bought a dozen pairs of socks at Sh190. He headed to the busy bus terminus where he started hawking the socks.

“In half an hour I had exhausted my stock. With the profit, I bought one-and-a-half dozen socks, which I also exhausted. I even lost interest in going back home, where I had nothing. I wanted to focus on making a living,” said Kuria.

Within a week, he had upgraded his stock to include undergarments and handkerchiefs, making a net profit of Sh10,000.

His aggressiveness in business and new perspective of life saw him rent a house for the first time.

This, he said, came after spending cold nights in hotels and streets for about a week.

WAS ON CRUTCHES

A month later, Kuria had expanded his business to include watches, phone covers, and spoons, which saw him earning a tidy profit of over Sh50,000.

A few years later, however, Kuria was involved in a road accident on his way home, injuring his leg. For a while, he was on crutches.

“But this did not stop me from doing my work. I rented some space in town where I could operate as my leg healed,” he recalled.

Gradually, Kuria’s business expanded. In 2007, he managed to buy a piece of land and a taxi.

Besides paying school fees for his four children in secondary and primary school, he has managed to buy another piece of land and a motorbike.

He has also opened a rabbit and chicken business for his wife. “Through her business, my wife is able to invest in other family projects,” he said.

UNTAPPED OPPORTUNITIES

His developed plots within the suburbs of Nakuru town are worth over Sh5 million. His other businesses have also grown over the years.

According to Kuria, the obsession with white-collar jobs among the youth needs to be addressed.

“The youth should not just fight for jobs in big offices; they should open their minds and start businesses of their own. In turn, they will employ others,” Kuria said.

He has, however, engaged many youths from Nakuru County in his businesses, giving them ideas on how to utilise their untapped opportunities.

“There are many business ideas. The youth should be aggressive in taking advantage of them,” he said. Kuria now wants to open a wholesale market and expand his businesses in Nakuru.

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Wednesday, July 2, 2014

Karen eco-friendly mall sets new standards for developers

The Galleria Mall in Karen.

The Galleria Mall in Karen. The Hub is a new mall which, once completed towards the end of 2015, will feature six separate buildings connected by open-air walkways with retail and office spaces, a medical facility, a fitness centre, restaurants, cafés and even a lake in its grounds.   Photo | FILE

By JAN FOX

Karen has long been recognised as one of Nairobi’s greener areas, with its abundance of indigenous trees and proximity to both the Ngong Road Forest and the Nairobi National Park.

Over the last few years, however, the leafy suburb has become a hotspot for developers seeking high returns from commercial and residential buildings, a construction boom that is threatening to damage the environment.

There is one developer, though, that has recognised this risk, and is determined to sustain Karen’s natural charm.

The Hub is the new mall which, once completed towards the end of 2015, will feature six separate buildings connected by open-air walkways with retail and office spaces, a medical facility, a fitness centre, restaurants, cafés and even a lake in its grounds.

The second phase will see the addition of a hotel and a conference centre.

CLICK HERE to read the full story in the Business Daily.

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Wednesday, July 2, 2014

Talented youths feted at new Rising Star awards

By Annie Njanja
More by this Author

The inaugural Rising Star Awards aimed at recognising local talent was held last Tuesday.

The event, organised by BlackBark Productions and which will be held annually, is designed to appreciate entrepreneurs and other professionals who have made remarkable efforts in growing both the private and public sector.

The awards, which appreciate individuals under the age of 40, will raise awareness on available local talent, trigger competition among youths, and draw young entrepreneurs and other professionals together to network.

“Many talented individuals often go unnoticed as they either have not been given the opportunity to showcase their skills or demonstrate their capabilities.

CLICK HERE to read the full story in the Business Daily.

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Monday, June 30, 2014

How brothers turned textile firm into multi-billion shilling bakery

From left: Keblest Limited directors Mayur Shah, Anju Shah and Jinit Shah at the company's factory in Thika. MARTIN MUKANGU 

By SIMON CIURI
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When media reports early this year revealed that baking firm Kenblest Limited was negotiating a Sh1 billion loan with KCB to finance expansion of its Thika-based operation, keen followers of Kenya’s dynamic business scene took in the news with some degree of disbelief.

As far as brand recognition goes, Kenblest is arguably among Kenya’s top – its popular bread (of the same name) having landed on nearly 80 per cent of the country’s breakfast tables. But then again it is just bread – one of the simplest consumer goods to make and the entry bar is not so high.

Yet the bread maker says growth has been steady in tandem with the continuing expansion of the middle class as well as the general population.

Anju Shah, one of the directors, says Kenblest plans to invest the money in its wheat and maize milling plant, raising its production capacity to 300 metric tonnes per day up from the current 200 metric tonnes.

The investment is also expected to generate 200 more jobs in addition to the 700 people already employed. At Kenblest’s base, the three brothers in charge of the operation have kept a modest demeanour about their entrepreneurial achievements.

“Out there it is not possible to really see what is behind these outcomes,” says Anju, the eldest of the trio that runs the business.

This is the product of a successful business succession in a company that was founded nearly eight decades ago when Kanji Ladha Shah established a textiles and general goods outfit targeting the small Indian population that operated clothing stores in Thika.

Located in one of the then little known corners of Thika, Shah Kanji Ladha Company has since walked through a series of transformations and management transitions to become one of Kenya’s most profitable companies with an annual turnover of Sh2.5 billion.

The series of transformations began in earnest in 1962 with the passing away of Kanji Ladha Shah who had long mentored his cousin, Hemraj Sura Shah, to take charge of the business.

As fate would have it, Hemraj also passed on two years later leaving the company in the hands of Mohanlal Dharamshi Shah, who had joined the business in 1950.
Dharamshi , now aged 83, is the chairman of Kenblest Limited – a company he runs with his three sons.

“It was under my father’s tenure as managing director that the business grew by the largest margin and diversified into many areas including food supplies,” said Mayur, another of the brothers. It was the diversification drive that in 1968 gave birth to Thika Household Suppliers – a manufacturing firm that supplied mainly foodstuff to government agencies, schools and hospitals.

Dharamshi introduced Anju, Jinit and Mayur to the supplies business in the 1960s , but only after they showed an interest in pursuing business as a lifetime career.

“He enrolled us in local primary and secondary schools so that we could join him in business and learn the ropes after school. We all attended Gatumaini Primary School in Makongeni, Thika, and later proceeded to Chania and Thika High Schools,” said Jinit.

Anju was the first of the trio to join the business in 1974 when it primarily dealt in corporate supplies. Four years later, Jinit joined after finishing college. Mayur was the last to get on board in 1981 after finishing a diploma in baking course. 

Thika Household Suppliers later opened a subsidiary, Anjim Fabrics, on Nairobi’s Biashara Street that dealt in bedsheets, blankets and khangas.

“Years of experience and a strong  field presence gave us a clear picture of the emerging market trends that convinced us it was time to enter the baking market,” said Mayur.

In 1982, the eating habits of most Kenyans had started to change as the migration to urban areas intensified. The Shahs decided it was time to introduce a breakfast pack for the newly urbanised – a decision that would see the formation of a bakery division, Kenblest, and spur the company’s growth in the next three decades.

Kenblest initially produced 80,000 loaves per day, but that grew almost three-fold to 230,000 in just four years creating a packaging crisis that was only resolved 12 years later with the establishment of Nav Plastics – a subsidiary that dealt in plastic extrusion and bags.

“We also started producing polythene paper in large quantities targeting the mass market,” said Anju.

The subsidiary got a boost in 2005, with the arrival of new machinery to produce millenary paper bags for both local and export markets. The Shahs also saw a business opportunity in the increasing use of plastic bags in the manufacturing sector and responded to it with the establishment of a recycling plant that produced plastic bags and roofing materials.

In 1993, the baking business had suffered its biggest setback after Kenya was hit by an acute shortage of wheat that almost grounded production.

“We opted to buy inputs very exorbitantly from other manufacturers to survive the crisis. We clearly understood that consumers are very keen on consistency and quality, making it imperative that we cultivate their loyalty even at the risk of suffering huge losses,” said Anju.

In 2006, Kenblest’s total daily production had grown to 330,000 loaves.

Kenblest had earlier acquired the assets of Kenya Taitex Mills, which was in the business of weaving, dying and printing textiles. The company was rebranded as Kifaru Industries Limited and transformed into a Sh30 million water bottling and maize milling unit that produced Acacia water and sifted maize meal ‘‘Two Ten.’’

The subsidiary also manufactured wax paper that it sold to Orange Kenya. Kenblest Limited later opened another subsidiary McNeel Millers Limited to mill wheat flour it used in the baking business and also sold in the consumer market under the “Two Ten” brand.

Mayur admits that it has not been smooth sailing for the family conglomerate, citing Acacia bottled water whose growth has been disappointing in a market dominated by giants such as Coca-Cola with its popular Dasani brand.

The brothers – now in their 60s – say unity of purpose is the bond that has kept the business steady and helped it grow over the decades even as its management changed through generations.

“We argue as brothers in the boardroom for the welfare of the business. We discuss ideas and decide what to implement and what to pull out. All of us understand that we are in serious business. We cannot allow family disputes to destroy,” said Anju.

To ensure long- term survival of the business, the three directors have mentored their sons and daughters to take over the business leadership when they retire.
sciuri@ke.nationmedia.com

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Sunday, June 29, 2014

Jua kali lobby seeks office for members

Jua kali artisans at work in Nairobi’s Gikomba market on May 1, 2014. PHOTO |  ANTHONY OMUYA | FILE

Jua kali artisans at work in Nairobi’s Gikomba market on May 1, 2014. PHOTO | ANTHONY OMUYA | FILE  NATION MEDIA GROUP

By NATION CORRESPONDENT
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A lobby group for informal sector workers has entered into a partnership with PTA Bank to provide operating space for members.

The Kenya National Federation of Jua Kali Association, the bank and Nairobi County authorities are now on a mission to identify more space within the Central Business District from where members can operate without interference.

According to KNFJKA chief executive officer Richard Muteti, many informal sector workers operate from home or open markets which are often disorganised. This has made the working environment very difficult for them. 

NEW CONCEPT

“But, this is a new concept where corporate institutions like PTA Bank have partnered with the federation to dignify the way this industry is run. Traders have been selling their wares on the ground and without any sheds to shield them from the sun or rain,” he said.

According to PTA Bank head of corporate affairs and investor relations Mary Kamari, financial institutions have largely ignored the micro and small enterprises sector, leaving them to chance despite the sector’s contribution to job creation and the economy.

Added Mr Muteti: “We are also working with the county government of Nairobi to identify space where small businesses can make their products and from where they can also sell. Very soon, you will see some designated streets put aside by the county government where small traders can operate from twice a week or so.”

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Monday, June 30, 2014

Elderly, poor gain in Nyeri’s war on poverty and hunger

By STEPHEN MUTHINI
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Nyeri has proposed measures to cushion the poor and vulnerable members of the society from harsh economic times.

Among the proposals contained in the 2014/2015 budget is the provision of medical care to the elderly, a widows’ empowerment kitty as well as addressing alcoholism and food security in the county.

More than 3,000 poor girls will receive sanitary pads in a pilot project that is expected to be rolled out by mid-July. Senior citizens aged above 70 would also be given free health services.

The widows’ kitty will receive Sh5 million, once legislation on how the money will be used is put in place. Persons with disabilities have not been left out as 75 residents living with Albinism will be supplied with sunscreen lotions worth Sh2 million, according to finance and economic planning county executive Martin Wamwea.

In a bid to address alcoholism, the county will this year facilitate the rehabilitation of 50 addicts through counselling and placement in support groups.

To ensure food security the county government will continue providing subsidised fertiliser and intensify training in agricultural production at the Wambugu Agricultural Training Institute.

Sh172 million has been allocated to the agricultural sector with an additional Sh35 million being earmarked for expanding irrigation projects in the county.

Mr Wamwea said the County government projects to grow its revenue collection from the current Sh442 million to Sh900million in order to finance the budget. The revenue will be mainly generated from single business permits, land rates and parking fees.

The total budget for the county this year is Sh4.7 billion with 81 per cent being financed through the equitable share from the national government.

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Sunday, June 29, 2014

Cold spell to push up milk prices as production drops

A farmer milks cows. Farm gate prices of milk are expected to go up. File 

By GERALD ANDAE
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The farm gate price of milk will go up in the coming months as the chilly weather that is being experienced in production zones cuts supplies.

Processors across the board are registering reduced milk volumes from producers, in a move that is already putting pressure on consumers who are now paying Sh2 more a packet across all brands.

“We are already feeling the impact of the cold weather which has seen milk production at the farm levels falling. We fear the trend might continue until the end of the chilly season,” said Kenya Dairy Processors Association chairperson Kipkirui Langat.

Dr Langat, who is also the managing director of the New KCC, added that starting next month, there would be new farm gate prices as a result of the declining production.

“We expect new producer prices in the coming month though we do not have the new figure at the moment that farmers will be paid as this will depend on specific processors,” he said.

He allayed fears of a sharp increase in milk prices, saying that processors have been holding huge volumes of long life products such as UHT and powder milk. This comes at a time when the country has been experiencing a milk glut that saw the price of milk in retail shops drop by Sh5 to Sh10 in the last three months.

Increased production also resulted in the drop of producers’ price from Sh40 last year to Sh30, before Brookside Dairies raised their price to Sh35 last month. Dr Langat said that on average, processors are paying Sh32 to the farmers currently.

Brookside has an installed capacity of 1.15 million litres, making it the largest processor in the market. The New KCC has a capacity of over 500,000 litres.

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Tuesday, June 24, 2014

Agency leaves mini-bonus tea pay to factories

Workers load tea bags on factory conveyor belts at Chinga Tea Factory in Othaya. President Uhuru Kenyatta has called for harmonisation of levies and cess being charged on tea farmers by county governments. PHOTO/FILE

Workers load tea bags on factory conveyor belts at Chinga Tea Factory in Othaya. Small-scale tea farmers are uncertain if they will be paid a mini-bonus next week as directed by President Uhuru Kenyatta. PHOTO/FILE  NATION MEDIA GROUP

By ZEDDY SAMBU
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Small-scale tea farmers are uncertain if they will be paid a mini-bonus next week as directed by President Uhuru Kenyatta.

Factories in parts of the tea-rich Rift Valley have ruled out the pay while those in Meru and Central Kenya have made plans to pay out.

Kenya Tea Development Agency, said it is up to individual factories to decide whether to pay or not. The agency, which runs 65 factories country-wide on behalf of farmers, introduced the interim bonus after farmers complained of financial difficulties in maintaining their crop and the time difference before the main and final pay around October each year.

“We got a directive to pay and it is up to the factory boards to decide. We are awaiting for resolutions by the factory boards to pay or not to pay,” said Mr Albert Otochi, the agency’s head of marketing.

He said the factories would also decide the source of funds “which include borrowing. There is still time” said Mr Otochi.

In March/ April, on account of depressed international tea prices at the Mombasa auction among other reasons, the agency advised factories not to pay the mini bonus and instead re-invest earnings.

Relief to farmers

But a meeting at State House between the government and stakeholders on June 11, directed payment of a mini bonus by the end of the month.

The announcement came as a relief to farmers, after an earlier cancellation.

However, Agriculture Secretary Felix Koskei Tuesday insisted the government directive stands.

“We discussed with tea agency and agreed that they make available a facility for payment. Most factories in Nyeri, Embu and Meru region have paid. Those west of the Rift Valley have politicised the issue,” he said in a telephone interview.

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Wednesday, June 25, 2014

Obey order on new rates, NSSF warned

NSSF managing trustee Richard Langat. Lawyers for KPAWU said they had received an email from Mr Langat directing staff to proceed with the new NSSF deductions in spite of a court order. They warned that the deductions would be against orders issued by the Industrial Court in Nakuru. PHOTO/FILE

NSSF managing trustee Richard Langat. Lawyers for KPAWU said they had received an email from Mr Langat directing staff to proceed with the new NSSF deductions in spite of a court order. They warned that the deductions would be against orders issued by the Industrial Court in Nakuru. PHOTO/FILE 

By NATION REPORTER
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A workers’ union has warned National Social Security Fund against collecting new rates until a final decision is reached by the court Wednesday.

Lawyers for the Kenya Plantation and Agricultural Workers Union (KPAWU) wrote to NSSF, warning that the deductions would be against orders issued by the Industrial Court in Nakuru.

The union, through lawyer Mutua Muli, said it would move to court to block any deductions and have the NSSF cited for contempt, if the new rates are effected.

Mr Muli said they had obtained an email from the fund’s managing trustee Richard Langat directing staff to proceed with the new deductions in spite of the court order.

Wrong interpretation

“We would like to draw your attention to the fact that courts do not issue orders in vain and your interpretation of the said order is misleading, blatantly wrong and erroneous... we are going to cite you for contempt and hold you to account,” he said in a letter addressed to Mr Langat.

He said the NSSF boss was duly served by the court order which is binding.

“This is informed by the fact that the said court order was duly served upon you with a penal notice attached and any contravention of it will invite contempt proceedings,” he warned.

The letter was copied to KPAWU secretary-general Francis Atwoli who is also the Cotu boss.

Mr Muli said the court order was clear that the pension fund should not effect the new deductions.

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Wednesday, June 25, 2014

With clear vision, the sky is the limit

When you are planning your first entrepreneurial venture, you may not be able to perfectly define your mission or vision. FILE PICTURE

When you are planning your first entrepreneurial venture, you may not be able to perfectly define your mission or vision. FILE PICTURE 

By RICHARD BRANSON
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Q: What role did passion play in your choice of which businesses and opportunities to pursue?

— Luke Gorski

Virgin has started hundreds of businesses, so I have a lot of interests!

Your question gets at how I find the drive to start new entrepreneurial ventures after more than 40 years in business. After all, the job is never done for an entrepreneur.

There are the daily challenges of keeping the new business going, the big picture projects that must take priority, and the need to innovate and improve constantly, changing your offerings as the market shifts.

Part of the answer lies in some lifestyle choices — I recharge by getting plenty of exercise and spending as much time with friends and family as I can.

But overall, what keeps me going is my sense of mission, and the strange thing is, mine is an impossible one.

This was not my plan when I started out, though I was always driven by the desire to change things for the better.

That was what motivated my friends and I to launch our first business, Student magazine, in the 1960s: We wanted to give young people a voice on issues such as the Vietnam war.

That spirit of hopefulness and commitment to concrete change continued through every business we launched afterwards and it is still true for our newer businesses like Virgin Galactic, which is gearing up to become the first company to offer commercial space flights.

Over time, as we learned more about business and entrepreneurship, our mission began to come into focus: We wanted to create a better world where businesses are driven by a strong sense of purpose that balances their needs with those of people and the planet.

Once we had articulated that vision (lots of businesses struggle with this exercise), we were able to break it down into the common goal that all Virgin businesses rally behind: To use our entrepreneurial spirit and resources to disrupt and reinvent every sector we are in, transforming the way everyone does business along the way.

This mission makes us innovative in ways we could never have anticipated.

When we started Virgin Atlantic in 1984, most of our competitors offered awful service, so we won their customers away by providing truly amazing customer service, along with innovations such as in-seat entertainment systems that gave passengers control and choices.

Thirty years later, many of the improvements Virgin introduced have been adopted by others, while we continue to look for new ways to delight our customers.

One of the challenges the airline industry faces is its voracious appetite for fossil fuels and its resulting carbon footprint.

Many airlines now offer their passengers the chance to purchase some form of carbon offset, but that does not really tackle the issue of fuel efficiency. We decided to go even further and look into the fuel itself.

Would it be possible to develop a commercially viable jet fuel made from renewable sources?

In partnership with the biotechnology firm LanzaTech, we have made enormous progress toward this goal —renewable fuels now have the potential to revolutionise the industry in a few years’ time.

Our sense of purpose has helped to unite the teams working on the different aspects of this problem.

There are plenty of stories like this one across the Virgin Group.

The point is that as an entrepreneur, your journey is never over, and your mission should be broad enough to encompass other industries and sectors, if that is what is required to bring about change.

No matter if you make butter or ball bearings, you can still make a difference as long as you have a great idea and a vision your team believes in.

When you are planning your first entrepreneurial venture, you may not be able to perfectly define your mission or vision.

You can clarify matters quickly by designing your offering according to your values — if you want to sell butter, for example, you will have to tackle issues such as animal welfare and sustainable farming.

As your business plan takes shape and you pursue the innovations that your values require, your sense of mission may emerge.

Those goals will help you to instil the right kind of organisational culture — to make sure your team never sees its journey as complete, and quickly moves on to the next challenge.

As your business expands, you will find that however successful a quarter has been, you can always do better next time.

Rather than being discouraged, view this as an opportunity, another chance to make a lasting, positive contribution to the world.

Questions from readers will be answered in future columns. Send them to RichardBranson@nytimes.

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Friday, June 20, 2014

What small businesses should expect from the new Budget

A small business enterprise trader. After the budget speech was read last week, I ran through it to see what could be in it for SMEs. PHOTO/FILE

A small business enterprise trader. After the budget speech was read last week, I ran through it to see what could be in it for SMEs. PHOTO/FILE 

By MUTHONI NGATIA
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THE BUDGET SPEECH was read last week.

I ran through it to see what could be in it for SMEs.

I am, however, still disappointed that the government is always ready to read the Budget and never to give a report card on whether the last budget had the desired economic impact.

As we know, there is the Budget, then actual revenues collected and the actual money spent.

If revenues are off target and money is being returned to the Treasury, how will government spending boost business?

Let’s begin by looking at customs.

The following can be regarded as friendly customs havens. Going green as an importer makes good business sense.

Import duty has been removed on machinery, spares and inputs for direct and exclusive use in the development and generation of solar and wind energy.

Agribusiness also got a boost as inputs used in processing and preservation of seeds for planting will be exempt from import duty.

Then we had new hostile custom havens.

Big manufacturers in Mariakani and elsewhere will not like the increase in import duty on iron and steel products from 0 per cent and 10 per cent to 25 per cent. This will impact the construction industry, with the cost likely to be passed on to the consumer.

Now you have motivation to file Paye or motivate staff as the government has allowed the deduction of expenditure incurred by employers who meet the cost of their employees‘ vacation within Kenya.

This deduction is only available for 12 months. The benefit will also not be subject to Paye.

There was, however, a challenging compliance requirement where the period for remittance of NSSF contributions reduced from 30 to 10 days.

Considering that NSSF rates are going up starting this month, many people may not like this.

Consider scouting for business at these dockets: Security, with Sh6.7 billion for leasing of 2,700 motor vehicles and aircraft for surveillance and response. Those in the hiring business should look in this direction.

Security equipment upgrade

There is also Sh2.9 billion for recruitment and training of an additional 10,000 police officers.

Consumables will create opportunities here. Then there is the Sh71.3 billion allocated to the Kenya Defence Forces.

I see opportunities in the Sh3.5 billion for security equipment upgrade and modernisation.

The total budgeted expenditure for Energy, Infrastructure and ICT is about Sh400 billion (both recurrent and development).

Sh116.7 billion has been allocated to both ongoing and new development of roads.

Several SMEs are in this space in different capacities from equipment leasing, car hires and supplies.

The energy sector got Sh23 billion for electricity transmission infrastructure and Sh10.6 billion for rural electrification.

These works are largely outsourced.

Education sector was allocated Sh294.55 billion, an increase of 7.6 per cent.

The allocation is expected to enhance access to education and transform the education system, including free primary and secondary education and teachers’ salaries.

The health sector has been allocated Sh28.7 billion.

There will also be budgets for health care functions at county governments — who are handling county health centres and pharmacies, ambulance services, promotion of primary health care, licensing and control of undertakings that sell food to the public, refuse removal, refuse dumps and solid waste disposal.

Agriculture got a boost through the Agribusiness fund, which will be accessible to the private sector.

Financial institutions have indicated willingness to leverage government’s seed capital by a scale of one to 10.

Consultants should also look out for funds allocated for “Enhancing Employment for Women and Youth”.

Some Sh24.495 billion has been set aside for enhancing women and youth empowerment.

The amount will be used to improve access to affordable credit. This will promote entrepreneurship and improve skill sets needed.

There is also Sh8.1 billion for recruitment and training of 21,870 youth to the National Youth Service who will work on community development projects.

Counties and Devolution got Sh226.7 billion So, don’t just concentrate on the big towns. Find out what these 47 counties are doing.

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Friday, June 20, 2014

Young graduate well suited for success away from formal jobs

Alicia Wanjiku Chege. She says her sister was a big inspiration, as she completed her internship, her sister resigned from her white collar job to concentrate fully on business. PHOTO/ANTHONY MAKOKHA

Alicia Wanjiku Chege. She says her sister was a big inspiration, as she completed her internship, her sister resigned from her white collar job to concentrate fully on business. PHOTO/ANTHONY MAKOKHA  NATION

By LILIAN OCHIENG
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Alicia Wanjiku Chege, now 24, could not bear the thought of being formally employed.

She ventured into business rather than seek a job.
On completing a diploma course in purchasing and supplies management at the Kenya Institute of Management, she started her journey as an entrepreneur.

She would sell imported bedding and fancy bags to her lecturers and friends while she was an intern at the Ministry of Foreign Affairs and International Trade.

“I did this for a year — since 2012. I just chose to be self-employed,” says Ms Chege.

“Meanwhile, I sold my goods alongside my older sister Leah Chege.”

She says her sister was a big inspiration, as she completed her internship, her sister resigned from her white collar job to concentrate fully on business.

“I was surprised and confused by her move at first.

I thought it was weird to quit her job while I was just beginning my job search mission,” she says. She was 23 at the time.

“On second thought, I decided not to look for a formal job.

As my sister imported clothes from China, I also ordered my bale. I, however, specialised in bedding and bags.

“The first amount of money I got from my first sale was Sh10,000.

It was rewarding to have money when my peers were still job seeking,” says Ms Chege,

“I promised myself I would concentrate on my business so that I would gain more.”

By last July, Ms Chege had fully made up her mind to be her own employer, she set aside Sh5,000, prayed and believed that her hard work would take her places.

Without a shop to sell her wares, she braced for tough times ahead. Her sister still assisted her to import goods.

“I didn’t want to be like other unemployed youth who were seeking greener pastures elsewhere; I had tried to seek help from the Youth Enterprise Development Fund but there are several targets I had to meet to get the funds.”

With her unbeatable spirit, she promised herself never to give up.

Her Sh5,000 capital grew within a few months to Sh50,000.

She was, however, troubled by the fact that she had no shop where customers would buy her wares from.

“I invested in a computer that would help me be very active, selling goods online.

I got a City Council business licence at Sh5,500 and rented a shop at Sh10,000 monthly.”

She also marketed her wares on Facebook, OLX, Twitter and other online sites.

Ms Chege currently boasts of stock worth Sh100,000.

She majors in selling custom made bedding like duvet covers, bed sheets, which she spices up with homemade matching mosquito nets.

Initially, she had fears that her business would fail considering the fact that many other businesses deal in bedding.

She said she built up her confidence by beating her competitors through scouting for top notch designs from Dubai and China and lowering her price a little to attract customers.

In a good month, she makes about Sh100,000 profit.

“I will never seek formal employment, I want to own a big company one day that specialises in bedding and clothing.

She says she needs about Sh5 million to import her ware in containers, hence becoming a wholesaler.

To do that, Ms Chege is prepared to start scouting for government loans.

“I urge youth who have a head for business to go ahead, fear has always stood between us and success,” she says.

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Friday, June 20, 2014

When rabbit urine, loans yield tidy sums

Rabbit farmer Humphrey Wangila is one of the farmers who have diversified their activities after getting agricultural skills, farm inputs and credit to increase productivity. PHOTO/MAZERA NDURYA

Rabbit farmer Humphrey Wangila is one of the farmers who have diversified their activities after getting agricultural skills, farm inputs and credit to increase productivity. PHOTO/MAZERA NDURYA  NATION

By MAZERA NDURYA
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A group of farmers in Bungoma and Busia counties has taken to microfinance to increase crop acreage after many years of letting huge chunks of land remain underused.

Blaming poverty and lack of access to farm inputs, more than 300 farmers have increased food production in the past two years, thanks to accessible credit.

Some have diversified into other farming activities such as rearing of rabbits, dairy goats, fish and traditional chicken, which are fetching tidy sums of money.

Humphrey Wangila is one of the farmers who have diversified their activities after getting agricultural skills, farm inputs and credit to increase productivity.

Others like Agnes Magero, a widow and mother of eight, are increasing the acreage under maize.

Now Wangila wants to increase his rabbits to 100 in the next few weeks because of the many benefits from the animals.

For an area where the number of chicken and cows one owns seem to define wealth, Wangila is trying to beat the odds and taking the enterprise to new heights.

Wangila, of Mukuyuni village in Bumula, Bungoma County, is not your ordinary rabbit farmer. He is adding value to what many would describe as child’s play.

The father of five children is also selling rabbit urine and dung to farmers who have come to learn about the intrinsic value of organic manure.

“At first it was a pastime with just two rabbits which I got from Action for Rural Health and Development (Rural Action), an organisation working in Bungoma County.

The information I got about rabbits made me take the bold step of rearing them,” said Wangila, who spoke after receiving a Sh20,000 loan from the firm’s CEO, Mr Joseph Atsali.

A few drops of urine can be used as nutrients for crops, especially for top dressing.

From a simple structure where he keeps rabbits, Wangila has devised a system of trapping the urine and the dung.

During the interview, he had in his store about 25 litres of urine, which he would sell to farmers at Sh1,000 a litre. He was expecting to earn Sh25,000 as demand rises.

Wangila has also experimented with tree seedlings and has become a role model in the village that is known for sugar cane and maize growing.

Hezbon Itumbo, another farmer in Teso, now has every reason to smile as he watches his six-acre piece of land bloom with a healthy maize crop.

Last year he managed to cultivate only one acre but this year he has added five more acres.

He expects to produce more than 100 bags of maize.

“We have been sitting on wealth all these years.

“Most of us have been complaining about poverty even though we have been blessed with fertile land that has just been lying idle.

The farm inputs have changed everything for me and other farmers,” he adds.

In Kocholia, Teso, in Busia County, Mrs Magero is planning to increase acreage under maize to use the family’s 20 acres.

“Last year I planted half an acre but this year I have increased to one acre, and hope to cultivate more next year because of the new scheme, which enables me to get fertiliser and certified seeds.

“We have also decided that as neighbouring farmers, we seek loans to purchase cows for ploughing because we cannot afford to hire tractors,” she says, adding that with proper husbandry she can produce 20 bags of maize from the one-acre land she has cultivated this year.

Mr Atsali, who heads Rural Action, says the organisation spends about Sh1.3 million in farm inputs to farmers.

About 100 acres are being cultivated, with more expected soon, he says.

“The biggest challenge facing our farmers in rural areas is that while land is readily available most of them cannot afford the high cost of farm inputs and end up cultivating just small portions which is not even enough for their sustenance.

“There is great potential and as a country, empowering rural farmers can greatly help in addressing food security as well as creating wealth,” Mr Atsali said.

He said most of the farmers are able to repay the money they borrow in one season because of better yields from improved farming methods that include use of proper seeds and fertilizer.

Mr Atsali said many rural farmers were hearing about microfinance for the first time because of lack of information.

For one to benefit, they register and buy shares into the organisation which enables them to borrow money.

“This has now inculcated a culture of savings among the local people.

We would like to see them venture into other crops apart from maize so that with time they will be able to undertake value addition for their produce and earn more,” he said.

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Friday, June 20, 2014

How Sh5 salary from firewood job helped found lucrative hotel

Kipeen ole Sayialel owns three booming tourist hotels, including the prestigious Riverside Campsite Resort in Maasai Mara Game Reserve and Loita Plains Hotel in Majimoto, along the Narok-Sikinani Road. PHOTO/GEORGE SYAGIE

Kipeen ole Sayialel owns three booming tourist hotels, including the prestigious Riverside Campsite Resort in Maasai Mara Game Reserve and Loita Plains Hotel in Majimoto, along the Narok-Sikinani Road. PHOTO/GEORGE SYAGIE  NATION

By GEORGE SAYAGIE
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The first thing that strikes you when you meet Kipeen ole Sayialel is his sharp business acumen.

Kipeen, 69, has risen from earning Sh5 a month fetching firewood for colonial settlers in 1952 to become a successful businessman in the hotel industry in the Masai Mara game reserve.

His hotel businesses are fast closing in on Sh500 million mark in worth, which he realised from saving most of his monthly salary of Sh5 a month for 22 years.

His road to entrepreneurial success has been long and winding, starting out as a labourer for a group of white settlers making cream in Narok County. He used to fetch firewood for them to light boilers in their creameries.

The former Majimoto location chief now owns three booming tourist hotels, including the prestigious Riverside Campsite Resort in Maasai Mara Game Reserve and Loita Plains Hotel in Majimoto, along the Narok-Sikinani Road.

“I always wanted to be a successful businessman,” says Kipeen, who is also chairman of Olare Orok Conservancy, and Olkiombo Group Ranch that houses a hotel business owned by the family of President Uhuru Kenyatta.

“I denied myself all pleasure and saved most of my earnings from 1952 to 1974. That is when I quit employment and ventured into business, mainly buying and selling cattle,” says Kipeen.

The father of 15 children and three wives says his background — his father had six wives — challenged him to do something that would earn him a living and help take care of his mother, who was the youngest wife.

“At that time, my age group was making a living through cattle rustling on the Kenya-Tanzania border and enjoying moranism and the goodies that go with it. But I decided to avoid illicit trade and pastoralism,” he says.

In 1974, with no formal education, he had Sh310. That was enough capital to start a business. He resigned from his firewood fetching job and started buying and selling cows.

“I had this feeling that I could succeed. Since I made Sh1,000-2,000 selling cows, I knew I could do much better with higher capital investment,” says Kipeen.

As his income grew, he began saving in a bank. Later, he was employed as a casual worker at the now defunct Narok County Council to collect revenue at the gates of the Masai Mara reserve.

This became a good platform to launch his hotel business. He opened his first hotel in the Masai Mara just 2km from the Talek gate.

“There were unexploited opportunities. Competition was not very high. I used to charge Sh30 per visitor for an overnight stay at my campsite,’ he recalls.

“I carried out a survey on my farm at Majimoto, on the Ewuaso Ngiro-Maasai Mara Road, and saw a perfect opportunity to start a tourist facility — the Loita Plains Motel,” he says.

His venture also benefits from the annual wildebeest migration from the Serengeti in Tanzania to the Masai Mara Reserve, with the hotel hosting extra visitors when accommodation is limited.

The motel is set in a quiet, serene location and has self contained rooms, swimming pool, and a picnic site. These attract tourists and honeymooners.

He challenges young people in the region, which is mainly dependent on livestock rearing, to start their own firms.

“The bottom line of going to school is to live a good life later on.

A good life requires money and good money can be found only in business.

As an employee, you will never make more money than your employer.

You can only do that if you go into business and become your own boss,” he says.

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Wednesday, June 18, 2014

Technical students enter competition

By SIMON CIURI
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Chinese firm AVIC International Holdings through its engineering arm has signed a pact with Ministry of Education, Science and Technology targeting young entrepreneurs in technical institutions who have ideas that can be turned into a business.

The institutions that are participating include University of Nairobi, Jomo Kenyatta University of Agriculture and Technology (JKUAT) and Kitale Technical Institute. The participants will be trained from next month while competition to start in August.

Winners will be announced September.

The teams are made of three people, who will land a chance to work with the financier and get $500 each.

Apart from the monetary awards, the company said will work closely with “reputable” Chinese companies to sign a contract with the winning team so they can go into commercial production after the competition.

“We have already shipped the steel bars and raw materials and tools that will be used by the participants during the contest and that will be awarded to the winning team after the competition,” said AVIC International Holdings Vice Chairman Liu Jun.

AVIC International Holdings is a State-owned company with many projects in Africa.

Potential entrepreneurs

“AVIC International Holdings will train participants in July for 15 days before the preliminary competition and for 35 days in August before the final competition in September,” AVIC International  Holdings Project Manager, Lynette Mwende said Friday.

“This training will fully equip the participants with the technical skills, not only to be competent but also to facilitate entrepreneurship and self-employment,” she said.

The challenge is designed to cultivate the spirit of entrepreneurship among the potential entrepreneurs who are looking at having careers in technical fields after graduation.

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