Standard Chartered launched video banking in Nairobi today. Already used in Asia, Kenya will become the first of their banks in Africa to roll out the service to its customers.
Standard Charted is currently Kenya’s 5th largest bank by assets, and has been in the country since 1911 and serves retail, corporate and institutional clients. CEO Lamin Manjang spoke of their “digital by design” investments, in which they use technology to enhance customer experiences while improving on the banks’ cost efficiency. He said “ Almost all transaction done at the branches are available through other means” and listed recent innovations they have done including – upgraded their platform, a new mobile banking app, fingerprint login, ATM’s that accept cash deposit ATM, and now video banking.
Whether in Singapore or Malindi, customers will be able to have secure video chats with agents located at the banks’ headquarters in Chiromo, Nairobi, share screens, exchange documents, do their banking and get advice, especially on investment and wealth management products and services. It is available to all customers, Monday to Friday from 9 a. to 6 p.m. Video banking is currently only on desktop computers, but they plan to extend it to mobile devices in the future.
The chief guest was the country’s Cabinet Secretary for Information, Communications and Technology , Joe Mucheru, who spoke on the government’s new cyber security bill as he urged banks and companies to invest in backups of critical data, upgrade their operating systems and anti-virus software and use of cloud services. “If you’ve gone through the agony of ransomware, investing in backups is not a big issue.”
Telkom has got extensive coverage across Kenya. For companies, Telkom Enterprise offers the best options in three different packages of data and voice products in all counties that can be tailor-made to suit any customer’s needs:
- BVPN (business VPN) provides connectivity for large companies and is available in all the 47 counties of Kenya. BVPN can also be extended to even more remote areas using satellite and is scalable which means a company can add new locations with voice and video. This is ideal for large companies with a presence in different locations that want security and which have sensitive, encrypted data that needs to be transferred nationwide.
- JamboNet is a dedicated access offering with fast reliable Internet for businesses that range from 1 MBPS to 150 MPBS. An online customer portal enables monitoring and reporting and the service is backed by a strict service level agreement (SLA) that aims at 99.9% uptime. The quality of JamboNet service does not degrade as more users join on, and it comes with a firewall as a standard. JamboNet is available nationwide and there is also a wireless option to extend the service to areas that don’t have cable already
- E@zyNet is an unlimited fixed bandwidth solution for SME customers. There are different monthly cost packages starting at an affordable price of Kshs 3,499 (~$35 per month). It is easy to start and reliable, offering high download speeds and flexibility for users.
Telkom, which has data centres and cloud storage also manages the Kenya government’s National Optic Fibre Backbone (NOFBI) – a national inland fibre optic cable network. Telkom has also invested in VSAT, satellite communications in remote areas, a terrestrial fibre optic cable network, GSM, and 4G LTE. Other products that are optional include free intra-company calls (within a local user group), wireless landline, fleet management, and County government solutions and other value-added services designed for hospitals and schools.
According to the latest Communications Authority of Kenya quarterly report (December 2016), the number of fixed fibre optic subscriptions grew by 18% during the quarter while that of fixed cable modem subscriptions increased by 2.8%. In a statement, Managing Director of the Enterprise Division at Telkom Kenya, Kris Senanu said “success for a Kenyan enterprise should be seen in the lens of reduced downtime through reliable connectivity; operational efficiency through uninterrupted connectivity; great customer service and clear communication lines with stakeholders and ultimately revenue-generating that leads to business growth.”
Digital Kenya, by Bitange Ndemo and Tim Weiss, charts the rapid emergence of Kenya in the world of technology. Through stories and interviews with people in the sector, you learn about risk-taking and making policy from humble beginnings back in the mid-1990’s when the whole country shared 32 kbps, and the then telecom Kenya Posts & Telecommunications (KPTC) monopoly declared internet services as being illegal. At the time, KPTC was connecting about 10,000 users to the phone network, and with 77,000 potential customers waiting, they envisioned a 5% tele-density in Kenya by the year 2015. The tele-density in 2015 turned out to be 88% thanks to rapid changes that came after fibre cables and the cheaper mobile phones emerged.
One story is a narration of how, as a peace agreement was being signed in February 2008 to end the post-election violence in Kenya, the ICT Ministry managed to secure a guarantee to enable the laying of the TEAMS fibre cable that ultimately changed the face of ICT in Kenya. This came after the ministry had stepped back from another long-discussed bureaucratic cable project – one called EASSY. This was one of the examples of government officials circumventing red tape for a good outcome. Another was the roll out of M-Pesa which is also cited here, ahead of regulations and thanks to some individuals in government giving it their cautious blessing. Not all of them turned out well, and one case cited is of officials at the Postal Corporation sabotaging a land deal that would have led to the establishment in Nairobi of the headquarters of a multinational telecommunications organization.
There are many other stories that show issues of privatization, race, the lack of vision & finance, tech startups, the need for skills to scale, and the disconnect between local capital & the tech sector. It also shows the disconnect of ICT with both formal banking and also with the agricultural sector, two crucial links yet to be adequately bridged in Kenya.
Thanks to the Ford Foundation, the books is available free of charge and a free book download can be obtained.
Phares introduces Node Africa
This week saw the unveiling of Node Africa, a new company led by Phares and Brian, the duo who spearheaded Angani before they left the company following a boardroom fallout that rocked the Kenya ICT startup community, late in 2015.
They have moved on from Angani, are now back with Node Africa, an information management company (that uses cloud infrastructure) and who’s tag line is we run your cloud infrastructure so you can run your enterprises.
It’s been an impressive turnaround in a few months; and in just six weeks after formal incorporation (in December 2015), they have launched Node Africa company and it’s up and running with a team of six, partnerships with Cisco, VMware, and Microsoft and with customers including Pesapal, Tarpo, Strathmore University, and WhatsApp Africa.
They still believe that Africa will be a cloud-first continent, and that, gmail and popular apps have shown, companies value well-delivered services, regardless of the location, or infrastructure that’s behind them, or the devices that their customers are using – and that cloud services, backed by a dedicated team like theirs are the way of the future for local and regional companies to scale their growth, customers and services.
Nest Nairobi held its monthly entrepreneurship speaker series in partnership with the Kenya Climate Innovation Centre (KCIC) on January 27, at the Strathmore Business School.
Hosted by Zeynab Wandati (business reporter at NTV Kenya), the panel featured Stefano Carcoforo (CEO/Co-Founder of iProcure Africa), Grant Brooke (CEO at Twiga Foods), Marion Moon (Managing Director Wanda Organic), Charles Odida (a farmer), Linda Kwamboka (Co-Founder at MFarm Ltd), Chris Kolenberg (Director Marketing & Sales at Kenya Biologics), and Munyutu Waigi (Co-Founder of Umati Capital)
Excerpts from the event sorted by subject
Agri-Economy Agriculture is 26% of Kenya’s GDP and employs 80% of the rural population. It comprises 40% of exports and 45% of govt. revenue and 7% of industrial raw materials – KCIC rep
- A law is coming in farming which will require all farmers to be members of an organization , and through that, they will be taxed – Marion
- I’ve no faith in the government to solve small farmer problems e.g. they allow contaminated maize imports, our borders are porous and farmers get zero protection, just exploitation from the government – Munyutu
- The support that governments give to farmer has very little to do with farmers interest e.g. in the choice of fertilizers sold – Charles
- Ultimately you have to work with government. It’s not as bad as it was in the 90’s – Stefano
- We work with cooperatives, providing tech to them; while others devalue them by saying they want a cut, and there are many shady ones, cooperatives aggregate demand on behalf of farmers and play an integral role in rural societies – Stefano
- We don’t work with cooperative, as we want to pay farmers directly. I’ve never seen a successful corporative, they are more like pyramid schemes. They may work when they are 10-15 people, but go bad when they are 200-300 members and become unions – Grant
- Cooperatives are very critical but don’t have farmers’ interest at heart. There is an Eldoret dairy cooperative with $10 million revenue, but it’s farmer members remain poor – Munyutu
- Maize is a terrible crop – when you have a bumper season, the price goes down. When you have a bad year, the government imports a lot of maize – Stefano
- Maize is a good crop. Farmers with good storage, and good planning don’t have to sell maize at throwaway prices. Ugali (made from maize meal) is one of the top foods bought in every household. Also there are institutions that buy hundreds of bags of maize every year e.g. schools to fees students – they need quality and villages don’t trust imported maize – talk to them, negotiate sales in advance and they come to check out the farmers fields, and pay more than the government – Charles
- The average of age of a Kenyan farmer is 62 years; they are used to a certain way of doing things right, and it is hard for them to change – Charles
- Growing a crop does not happen overnight like the Eurobond; Farming does not produce quick money, and farmers, by nature, are patient – Charles
- Farmers trust each other, they trust farmers who have tried things e.g. they will try a pest control fertilizer that they are referred to by others – Linda
- Farmers will adapt when they see something work. So you often have to give them free samples – Chris
- 98% of produce is sold to the informal markets and there is little formal financing for that. Debt is about 20-30% of the market cost of foods sold as middle men and mama mboga pass on the cost of default risk – Grant
- Cash flow in key in agriculture. When a crop needs weeding, you have no choice, you have to do it, or you’ll have no harvest. You have to schedule money for from activities. – Charles
- SACCO’s are good for farmers, but there are also many Kenyans in the US and Dubai (where investments only earn 1-2%), and who are willing, and do lend their idle cash, to farmers they trust to earn much more (some of them are even on @twitter) – Charles
- The government has many avenues of financing farmers e.g. AFC lends to sugar farmers at 5% – Charles
- Bank ads for farmer loans look sexy in TV but in reality, they are too slow for farmers – they don’t disburse money quickly enough – Munyutu
- Food is 51% of household spending – Grant
- Food safety is the driving concern for a mama mboga as she will want to know and tell her customers which farm her produce comes from –Grant
- Urban young farmers who want to get rich doing passion fruit and strawberry should instead grow things that you can see a market for everyday – Grant
- It’s crazy that 100% of our local produce would be rejected at the EU – Chris
- Processors are getting tired of dealing with brokers and aggregators and want to go deal with the farmers directly – e.g. for dairy, fruits (A company called Fresh & Juicy is working with farmer to supply Nakumatt) – Munyutu
- It took 2 years to get bio-organic fertilizer approved in Kenya – Marion
- Ultimately, what farmer can produce is declining, and those who are increasing productivity are doing so using chemicals, but that is only a short-term (5 years) measure – Marion
- Italian companies that produce canned beans and used to source them from South America, are now looking to get them in Kenya, but are struggling to find enough farmers – Marion
- Kenya can compete with Brazil in passion fruit; that market is big – Marion.
- Kakuzi has 300 small-scale farmers that they used to grow their produce. They know what they spray on their own 6,000 acres, and work with 300 other farmers who they advise, but ultimately, they can’t establish exactly what inputs these farmers are adding to fruits – Chris
- Small scale farmers wont be able to compete in future – 1st world farmers are 40X more efficient – Chris
Logistics / Middle Men
- Kenya is not food insecure,it is logistics insecure. A banana is Kshs 10 (sometimes 20), which is the same price as a banana in London; that’s because we stopped investing in markets, and there are many bottlenecks, broken links and 5-7 people between the farm and the market – Grant
- Supply chains are longer in Kenya that they need to be – there are too many brokers, and the farmer is not visible in the farm to fork story – Charles
- Middlemen exist because farmers don’t understand what the markets want – Linda
- Middlemen add zero value, and that’s why the price of food is high – as they hedge against their defaults – Munyutu.
- Farming is putting a seed in the soil, nurturing it and harvesting – it’s not phone or apps or tabs – (which only bring in efficiency) – Marion
- Kenya has been slow to get/adopt farm smart phone apps & software compared to Brazil and South Africa – Charles
- Kenyans don’t use Kenyan products, but use our apps so we can make them better – Linda
Whats the Next Big Thing in AgTech?
- Traceability fake products look more real than the original product – so the next big thing in agri-tech will be clever apps to provide assurance through traceability of inputs. There’s now a lack of traceability, farmers will tell you what you want to hear, and counterfeit products are prevalent – Stefano
- Distributed Commodity Exchanges, which used to be in Chicago and Ethiopia (ECX) are now in the cloud with firms like Twiga that act as warehouses – Grant
- Mid-size farm management as a career. There are people in this room who inherit 30-40 acres in rural areas, but want other people to profitably manage farms for them – Grant
- Partnerships – Marion
- Farmers specializing in certain crops and increasing their yields drastically – Chris
- Financial capacity building – financial products in simple math, loan calculations in easy language – Munyutu
The outreach manager of KCIC said they provide entrepreneurs with an enabling environment (policy) for innovation, business advisory services and financing opportunities [for (1) proof of concept financing and (2) a seed facility of climate change venture funding of $100,000-500,000 of growth capital for entrepreneurs from June 2016]