Hamster255
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$ 3 Billion money movement a month. The most internet and 4G connected country in Africa. E-Commerce is the bright star for Kenya.
Kenya the Africa E-Commerce Giant
Kenya the Africa E-Commerce Giant
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Hamster255
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That electrician, mason is only a mobile app away
Do you require the services of a mason, plumber, electrician or carpenter? There is now an app that links you with them in an instant.
Dial-a-Fundi is a creation of Mombasa-based entrepreneur and IT expert Lorna Omondi. It is available on Google play store in Mombasa but will soon be rolled out in other regions.
Users can request and connect with a reliable expert artisan within Mombasa.
“This product is revolutionary as it will increase labour productivity and create jobs,’’ says Ms Omondi, 36, a graduate of the Jomo Kenyatta University of Agriculture and Technology.
She is also the founder and chief executive of Spindle Kenya Limited, a company that deals with IT solutions.
She has an interest in civil works.
“I want to marry my ICT and civil works,” she says of her devotion to her line of work.
The Dial-a-Fundi platform, she adds, was motivated by the need by her friends for reliable artisans.
“My friends used to call me and ask if I knew someone to do small works . Fundis used to call me also and ask me to connect them with jobs. I decided to come up with a solution,” says Ms Omondi.
The app, she add, has provided artisans a platform to get jobs.
Clients have also benefitted a great deal: “Customers face difficulties accessing artisans on time and most of them rely on word of mouth. Then there is the risk of bringing strangers into their homes/premises and lack of an opportunity for feedback on services,” Ms Omondi says.
“We are in the digital age. A mobile app was the easiest option as many people have smartphones.’’
All that the artisans need to do to benefit from the system is to register.
“Most upcoming fundis hardly get referrals because of lack of experience. This (app) also makes this industry attractive to the technological savvy young person,” she says.
On the platform, there is a client's app and fundi's app. It also provides a segment for suppliers of products that may be needed by artisans to advertise.
Ms Omondi came up with the idea earlier this year and immediately engaged programmers. It was completed in April after which she started recruiting the artisans.
“I went to construction sites, along the roads and anywhere I could get a fundi. I met hostility as others thought I was taking their details with bad intentions. But there were few who wanted to join. I worked with them,” reveals Ms Omondi
Today the app has more than 200 downloads and has more than 70 recruited and vetted artisans.
Ms Omondi plans to roll out the service first in Nairobi before venturing into Tanzania.
She also plans to partner with the National Health Insurance Fund (NHIF) and a bank to promote healthcare cover and a savings culture.
On the card also is a plan to train the artisans.
“I try to teach them professionalism and how to save money. Talks are underway... and we can have the fundis trained to gain proper certifications to ensure they are competent,’’ she said.
Hamster255
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Bidco, Safaricom in deal to spur oil crop farming
Bidco Oil and Safaricom have partnered with the Migori County to promote sunflower and soya beans farming in a move that could significantly cut reliance on imports.
Safaricom, through its initiative dubbed Digi-farm, will provide technical support such as the provision of quality fertiliser, seeds and other farming inputs to increase productivity.
Bidco, on the other hand, has pledged to provide a ready market for the produce.
The firm, which produces edible oils and soaps, has lately been on the spotlight in Tanzania as authorities questioned proportion of imported soya, palm oil and sunflower in its export products.
Representatives of the two firms yesterday met county officials to launch the programme.
Elizabeth Mudogo, an officer from Safaricom’s M-agriculture department, said the programme targets smallholder farmers and it involves issuing out of the key inputs to farmers and then deducting the cost of the inputs from payments after successful harvests.
“What we are doing as Digi-farm is to provide service to simple smallholder farmer. We are interested in ensuring the farmer is able to make money from farming,” said Ms Mudogo.
“Migori is one of the pilot counties and we are targeting to help soya beans and sunflower farmers. We provide an end-to end-service delivery to the farmers.”
The telco trains the farmers via mobile phones, she said.
Hamster255
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Platform makes Sacco loan processing easy
The digital disruption has in the past five years revolutionised the financial sector, both globally and locally.
The technology advancements, especially in the mobile phone-based transactions have helped Kenyans to reap the rewards of financial inclusion. Despite these digital transformation, there are still huge opportunities for innovations in various segments of the financial sector.
Mr Charles Kariuki saw one such opportunities in terms of a gap in lending among Saccos and quickly proceeded to seal it through creation of an application that eases processing and management of credit.
The platform called Counter 1-Serve, has automated the whole credit process by using a customised mobile application which connects unlimited number of borrowers to lenders. The application limits personal contact by leveraging on the digital infrastructure.
Mr Kariuki, who is the chief executive officer of Salvon Africa Limited, says Counter 1-Serve, introduced five months ago, has so far brought on board four institutions as they look to connect over 300 cooperatives in the next two years.
“The uptake of our concept is extremely exciting due to the enhanced lending platform built for the current and future generations,” he says.
“The digital space has given lenders an alternative channel to bank at any time of the day or night without the hassle of queuing unnecessarily in the banking hall.”
Some of the challenges the platform is designed to address include high default rate, huge operation costs, cash flow problems, marketing hurdles, lack of technical skills, expensive technology as well as poor service delivery.
“Our move to build this solution was inspired by our engagements and exposure in microfinance through seven years of consultancy and management of Saccos where we learnt of a number of challenges and decided to create solutions," says the innovator.
The platform, he notes is, suitable for cooperatives or microfinance institutions with more than 100 members who can have fully integrated, branded and customised portal.
Mr Kariuki says the mobile application can connect all Sacco members with full stack modules for digital credit profiling and administration as well as normal mobile banking services.
“All this comes with a flexible on boarding fee and a free trial period,” he says.
To date, the company which has set up an office on Thika Road, has 15 employees and serves more than 17,000 clients in Kenya.
Mr Kariuki says the prospects for his innovation are huge as technology remains largely under-utilised in the cooperative sector.
Much more needs to be done, he adds to take advantage of the industry that commands over Sh500 billion in savings and possesses an immense potential to be an economic driver.
Mt Kariuki advises borrowers to make good use of the numerous digital loans for good use.
“In as much as there has been a relatively successful penetration of digital loans into the market, the loans have not improved the living standards of majority of Kenyans,” he says.
He attributed the situation to the high cost of credit, inappropriate use of the loans and the fact that most of the loans do not enhance a culture of saving among Kenyans.
“It is for this reason that we have chosen the path of empowering cooperatives through enhanced technology adoption,” states Mr Kariuki.
He says cooperatives, which were established with the objective of changing the fortunes of their members for the better, have not lived up to expectation because managers have not adopted cutting-edge technology to enhance their financial services.
The digital disruption has in the past five years revolutionised the financial sector, both globally and locally.
The technology advancements, especially in the mobile phone-based transactions have helped Kenyans to reap the rewards of financial inclusion. Despite these digital transformation, there are still huge opportunities for innovations in various segments of the financial sector.
Mr Charles Kariuki saw one such opportunities in terms of a gap in lending among Saccos and quickly proceeded to seal it through creation of an application that eases processing and management of credit.
The platform called Counter 1-Serve, has automated the whole credit process by using a customised mobile application which connects unlimited number of borrowers to lenders. The application limits personal contact by leveraging on the digital infrastructure.
Mr Kariuki, who is the chief executive officer of Salvon Africa Limited, says Counter 1-Serve, introduced five months ago, has so far brought on board four institutions as they look to connect over 300 cooperatives in the next two years.
“The uptake of our concept is extremely exciting due to the enhanced lending platform built for the current and future generations,” he says.
“The digital space has given lenders an alternative channel to bank at any time of the day or night without the hassle of queuing unnecessarily in the banking hall.”
Some of the challenges the platform is designed to address include high default rate, huge operation costs, cash flow problems, marketing hurdles, lack of technical skills, expensive technology as well as poor service delivery.
“Our move to build this solution was inspired by our engagements and exposure in microfinance through seven years of consultancy and management of Saccos where we learnt of a number of challenges and decided to create solutions," says the innovator.
The platform, he notes is, suitable for cooperatives or microfinance institutions with more than 100 members who can have fully integrated, branded and customised portal.
Mr Kariuki says the mobile application can connect all Sacco members with full stack modules for digital credit profiling and administration as well as normal mobile banking services.
“All this comes with a flexible on boarding fee and a free trial period,” he says.
To date, the company which has set up an office on Thika Road, has 15 employees and serves more than 17,000 clients in Kenya.
Mr Kariuki says the prospects for his innovation are huge as technology remains largely under-utilised in the cooperative sector.
Much more needs to be done, he adds to take advantage of the industry that commands over Sh500 billion in savings and possesses an immense potential to be an economic driver.
Mt Kariuki advises borrowers to make good use of the numerous digital loans for good use.
“In as much as there has been a relatively successful penetration of digital loans into the market, the loans have not improved the living standards of majority of Kenyans,” he says.
He attributed the situation to the high cost of credit, inappropriate use of the loans and the fact that most of the loans do not enhance a culture of saving among Kenyans.
“It is for this reason that we have chosen the path of empowering cooperatives through enhanced technology adoption,” states Mr Kariuki.
He says cooperatives, which were established with the objective of changing the fortunes of their members for the better, have not lived up to expectation because managers have not adopted cutting-edge technology to enhance their financial services.
Hamster255
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- Mar 19, 2018
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- #5
Tech disruption drives the birth of new models of businesses
Technology has been the biggest disrupter of business and industry not only in Kenya but across the globe over the recent years.
When M-Pesa arrived in Kenya over a decade ago, the financial sector had to adapt and adopt or risk being swept aside by the revolutionary change. Uber came into the market with the e-hailing idea that sent the Kenyan taxi business into disarray, creating and destroying jobs all at the same time.
These innovations were initially perceived negatively, but the positive impact they have had has led to them being embraced widely. For instance, initially M-Pesa was considered a bank killer, but the mobile financial platform has been one of the biggest players in pushing a cashless economy, facilitating payments and boosting financial inclusion.
“Digital technology is not just about high-tech start-ups like Netflix or Uber – it is also creating exciting opportunities for small and medium businesses and entrepreneurs to reinvent themselves,” said Nikki Summers Regional Director for Sage in East Africa.
According to Ms Summers, the best disruptive ideas are the ones that are tailored to the needs and conditions of the market.
“One good example is how mobile money has enabled people to pay each other in Kenya, increasing financial inclusion in a country where penetration of formal financial services was low in the past.
Another instance is the mobile phone, which has brought affordable internet access and telecommunications to nearly every country in Africa, leapfrogging landline infrastructure and making technology affordable to a mass market,” she says.
Businesses such as Kopo Kopo, Tala and Branch have been built on the backbone of digital disruption, using the new available technology to offer financial services and loans to those underserved by traditional providers.
“Falling smartphone costs, combined with increased deployment of fibre, 3G and 4G LTE networks, are helping to accelerate digital transformation across the region,” says Ms Summers.
Research firm Ovum forecasts that there will be 32 million LTE subscriptions in Kenya, Tanzania and Uganda by 2022, while smartphone connections will be 108 million.
“The East African region has made great progress in broadband connectivity over the last few years, and this has unlocked great potential in digital services segment, including mobile financial services, digital media as well as enterprise services,” said Danson Njue, research analyst, Middle East and Africa at Ovum.
According to Ms Summers, in a tight economy, small and medium business owners welcome any way to reduce costs without compromising on quality and service. Many technology services allow them to meet this goal.
For example, fintech can make it cheaper to take and process payments, ride-hailing services are an affordable alternative to taxis, and accommodation sharing sites are often more affordable than booking a business hotel. Individuals and small business owners now have the vast opportunities to take advantage of digitisation.
Youtube stars including Joanna Kinuthia or comedian Njugush, who last week received a silver play button from Youtube for 100,000 subscribers on his channel, have found a new platform to make money and sell their brands. This ten years ago was not an option in Kenya.
Businesses such as Showmax, Netflix and other over-the-top content producers have found ways of reaching the masses beyond home country borders without incurring extra costs.
Jesse Muiru’s platform SereneStudy uses the cloud to provide education, lessons through class notes, audio and video lessons, past papers and exams that are relevant to primary and secondary schools pupils.
Research firm GFK says in its ViewScape Africa study that 97 per cent of Kenyan adults with internet access are using some form of online service, with nearly two-thirds paying to view digital online content.
Ninety-four per cent watch some digital video on YouTube. In the subscription video on demand (SVoD), users aged between 16 and 24, spend a whopping seven hours and 41 minutes a day viewing video.
“Social media and search engines are changing the ways big brands do their marketing, and entrepreneurs in East Africa are also starting to catch on. Twitter, Facebook, Google and other online services offer a range of affordable and even free ways to promote your goods and services. They also offer you easy-to-use analytics tools so that you can track your performance,” says Ms Summers.
The cost of infrastructure is no longer a big issue for business. There is no longer a need to have a room full of expensive servers and computers, pushing up the cost of rent and security with the onset of cloud.
Ms Summers says cloud apps are usually sold on a per-user, per-month basis, so users do not need to find a lot of cash to pay upfront for a software licence. You can get an online accounting solution for under Sh1,300 per user per month - which can save you hours of your time each month. Devices such as smartphones are also more affordable than ever – you can get a usable device for under well Sh10.
“The barriers to entry are quite low, given the benefits technology can offer,” she adds.
Local firms including East Africa Online Transport Agency which uses the internet to link trucks and people who want to transport cargo have reaped the benefits of the digital disruption. Their continued growth and interest in technology adoption has been at the forefront of warming up the market to endless possibilities of technology as well as operating remotely.
Technology has been the biggest disrupter of business and industry not only in Kenya but across the globe over the recent years.
When M-Pesa arrived in Kenya over a decade ago, the financial sector had to adapt and adopt or risk being swept aside by the revolutionary change. Uber came into the market with the e-hailing idea that sent the Kenyan taxi business into disarray, creating and destroying jobs all at the same time.
These innovations were initially perceived negatively, but the positive impact they have had has led to them being embraced widely. For instance, initially M-Pesa was considered a bank killer, but the mobile financial platform has been one of the biggest players in pushing a cashless economy, facilitating payments and boosting financial inclusion.
“Digital technology is not just about high-tech start-ups like Netflix or Uber – it is also creating exciting opportunities for small and medium businesses and entrepreneurs to reinvent themselves,” said Nikki Summers Regional Director for Sage in East Africa.
According to Ms Summers, the best disruptive ideas are the ones that are tailored to the needs and conditions of the market.
“One good example is how mobile money has enabled people to pay each other in Kenya, increasing financial inclusion in a country where penetration of formal financial services was low in the past.
Another instance is the mobile phone, which has brought affordable internet access and telecommunications to nearly every country in Africa, leapfrogging landline infrastructure and making technology affordable to a mass market,” she says.
Businesses such as Kopo Kopo, Tala and Branch have been built on the backbone of digital disruption, using the new available technology to offer financial services and loans to those underserved by traditional providers.
“Falling smartphone costs, combined with increased deployment of fibre, 3G and 4G LTE networks, are helping to accelerate digital transformation across the region,” says Ms Summers.
Research firm Ovum forecasts that there will be 32 million LTE subscriptions in Kenya, Tanzania and Uganda by 2022, while smartphone connections will be 108 million.
“The East African region has made great progress in broadband connectivity over the last few years, and this has unlocked great potential in digital services segment, including mobile financial services, digital media as well as enterprise services,” said Danson Njue, research analyst, Middle East and Africa at Ovum.
According to Ms Summers, in a tight economy, small and medium business owners welcome any way to reduce costs without compromising on quality and service. Many technology services allow them to meet this goal.
For example, fintech can make it cheaper to take and process payments, ride-hailing services are an affordable alternative to taxis, and accommodation sharing sites are often more affordable than booking a business hotel. Individuals and small business owners now have the vast opportunities to take advantage of digitisation.
Youtube stars including Joanna Kinuthia or comedian Njugush, who last week received a silver play button from Youtube for 100,000 subscribers on his channel, have found a new platform to make money and sell their brands. This ten years ago was not an option in Kenya.
Businesses such as Showmax, Netflix and other over-the-top content producers have found ways of reaching the masses beyond home country borders without incurring extra costs.
Jesse Muiru’s platform SereneStudy uses the cloud to provide education, lessons through class notes, audio and video lessons, past papers and exams that are relevant to primary and secondary schools pupils.
Research firm GFK says in its ViewScape Africa study that 97 per cent of Kenyan adults with internet access are using some form of online service, with nearly two-thirds paying to view digital online content.
Ninety-four per cent watch some digital video on YouTube. In the subscription video on demand (SVoD), users aged between 16 and 24, spend a whopping seven hours and 41 minutes a day viewing video.
“Social media and search engines are changing the ways big brands do their marketing, and entrepreneurs in East Africa are also starting to catch on. Twitter, Facebook, Google and other online services offer a range of affordable and even free ways to promote your goods and services. They also offer you easy-to-use analytics tools so that you can track your performance,” says Ms Summers.
The cost of infrastructure is no longer a big issue for business. There is no longer a need to have a room full of expensive servers and computers, pushing up the cost of rent and security with the onset of cloud.
Ms Summers says cloud apps are usually sold on a per-user, per-month basis, so users do not need to find a lot of cash to pay upfront for a software licence. You can get an online accounting solution for under Sh1,300 per user per month - which can save you hours of your time each month. Devices such as smartphones are also more affordable than ever – you can get a usable device for under well Sh10.
“The barriers to entry are quite low, given the benefits technology can offer,” she adds.
Local firms including East Africa Online Transport Agency which uses the internet to link trucks and people who want to transport cargo have reaped the benefits of the digital disruption. Their continued growth and interest in technology adoption has been at the forefront of warming up the market to endless possibilities of technology as well as operating remotely.