NAIROBI SEPTEMBER/ OCTOBER 2015

INVESTING, TRAVELLING AND LIVING IN KENYA PRICE KSHS 350/-

REVISITED: WHAT IS THE SIZE

OF AFRICA? AND WHAT DOES IT

MEAN FOR TRADE IN AFRICAN

COUNTRIES?

Investment News 3

Investment News INVESTING, TRAVELLING AND LIVING IN KENYA

INSIDE THIS ISSUE September-October 2015

Special Reports

REGULARS

WHAT IS THE

SIZE OF AFRICA?

- and how has that af-

fected trade in the conti-

nent? A German who is

leading the interesting

project redraws Africa

in a world map he says

will shake people's per-

ceptions a little.

HOW MUCH IS

YOUR TONGUE

WORTH?

Find out in this excellent

article

REPORT ON KITUI

COUNTY INVESTOR

MEETING

In the exhibition tents,

you could confirm the

quality and taste of Ki-

tui mangoes with well

package, inexpensive

and natural mango juice

PUBLISHER’S VIEW .. 4

Discussing Prof. Kivutha

Kibwana‘s traditional

skills succession question

LAST WORD ……… ..30

Just what is salary harmo-

nization? Emma Muli dis-

cusses the issues involved

and the use of school certifi-

cates.

QUICK NEWS……………5

Are there human beings in

the planet Mars? Now the

American NASA releases

startling findings. Find out

this and many more in this

column.

4 Investment News

Investment News

Editor

Muli wa Kyendo

Associate Editor

Emma Muli

Contributors

Uncle Sandu

Marketing

Charles Kavuu

Sylvia Njuguna

Investment News is

published bi-monthly

by Investment News

Ltd, P.O. Box 20257-

00100, GPO, Nairobi,

Kenya, Tel:

0773991820 ,

0721302418,

Email: Editor

@investmentnews.co.k

e

ISSN 1814

The Editor welcomes

contributions but

takes no responsibility

for loss or damage.

All rights reserved

Copyright: Investment

News Ltd

PUBLISHERS VIEW

At the recently concluded

Kitui Investor Conference,

the Makueni County

Governor, Prof. Kivutha

Kibwana asked an

important question: How is

the Kitui County ensuring

that traditional skills and

knowledge are preserved

and passed on from one

generation to another. (see

centre for more details).

With the rise of colonialism,

the African lost not only

their land but also much

else. Among these was

respect the knowledge and

skills that had, for years

guided them. To colonize a

person, you must

dehumanize them. It is just

common sense. You will not

praise the achievements of

your slave.

This is what happened in

African. Ancient Egypt was

the first civilized nation on

Earth. Much of what we call

civilization today—including

national budgeting - was

developed in Egypt. The

colonial Whites were faced

with a dilemma—to claim

Egyptians were Whites or to

ignore them and attribute

their achievement to a

nation that they could claim

was white. Greece, lying off

the African continent,

provided what the colonial

wanted. All Egyptian

wisdom was attributed to

the Greeks—even though we

know all the Greeks came to

Egypt to learn.

African knowledge and skills

were repackaged and

brought back to Africa as

European civilization. In

Kenya, we border Ethiopia

where coffee was discovered.

But when it crossed the

artificial border made by

colonials, we were made to

believe it was European

beverage, not fit for the

locals to grow.

Similarly you can say the

same of Christian religion

and many other things.

As we develop into counties,

we need to develop systems

and laws to protect and

improve traditional

knowledge and skills. Prof.

Kivutha Kibwana is in a

position to start.

Preserving African Skills and

Traditional Arts

Investment News 5

Quick News

NASA Now Says There is Life

On Planet Mars In a statement, the United

States National Aeronautics

and Space Administration

(NASA) has said there is

life in mars.

―It took multiple

spacecraft over several

years to solve this mystery,

and now we know there is

liquid water on the surface

of this cold, desert planet,‖

said Michael Meyer, lead

scientist for NASA‘s Mars

Exploration Program at the

agency‘s headquarters in

Washington.

―It seems that the more we

study Mars, the more we

learn how life could be

supported and where there

are resources to support life

in the future.‖

But scientists say there is

more than water in Mars.

Artifacts found on the

planet show that there

have been other living

creatures visiting Mars or

living in the planet.

―I'll tell you what: There is

life on Mars right now.

Living, breathing,

replicating and evolving.

Mars is alive with

"extremophile" microbes

that live in the soil and the

water flows. In fact, life is

abundant across our

cosmos, which means we

are not alone,‖ one scientist

said.

While such possibility

opens of human beings

from earth colonizing Mars,

it also raises ancient fears

that human beings could at

one time come under attack

from other humans who

may want to colonize

planet Earth. Photo shows water flowing in Mars

On completion of phase one of the Konza

City by 2018, the mega city is expected

contribute Sh90 billion or approximately

two per cent to the country‘s gross

domestic product (GDP).

The city is also expected to provide jobs for

nearly all the secondary school leavers.

Fourteen large firms have expressed

Tall Expectation for the Konza Techno City interest in the first stage of the Konza

Technology City project set to be carried out

in four phases of five years each.

Local firms setting up at the Sh26 billion

project include Safaricom, Wananchi

Online, Kemri, Kari, the University of

Nairobi, the Jomo Kenyatta University of

Agriculture and Technology and the Nairobi

Hospital.

6 Investment News

and drink tea‖, which he

thought sounded nice. He was

not a ―foodie‖ by any means,

and he had no special interest

or knowledge of tea. Still,

Tetley selected him from

hundreds of heavily screened

applicants to begin a five year

intensive training program,

learning every aspect of tea

tasting, growing,

manufacturing and

marketing. Today he and nine

others are part of an elite

tasting team at Tetley,

entrusted with the tea

It is a profession that is accessible to most Kenyans but which is hardly known in which you can make millions

Approximately one quarter of the population are

considered ―Supertasters‖, but among those, few

have a palate as refined as Sebastian Michaelis-

Tetley‘s master tea blender- whose tongue is insured

for $1.5 million.

With more than twice the average number of taste

buds, ―supertasters‖ experience flavors much more

intensely than most. Sugar tastes sweeter and bitter

flavors are sharper. Although the genetic trait is

common, affecting about 1 in 4, only a few will join

the ranks of professional tasters like Tetley‘s top tea

blender, Sebastian Michaelis who can taste and

grade any of 1500 different tea varieties in just 15

seconds with complete accuracy- a skill so valuable

that his tongue has been insured for $1.5 million.

What makes the tongue of a professional taster so

unique? As it turns out, it takes a lot more than

genetics. Top tea tasters undergo several years of

intense training to develop the precise palate skills

and expertise needed to discern minute differences in

flavor. The ability to quickly identify the country,

region, and even the estate from which a single batch

of tea originated is essential, as well as the skill to

artfully blend the leaves to achieve a consistent cup.

Ironically, tasting talent is often found in people with

little interest in food. Sebastian Michaelis did not

start out to be a tea blender or taster. After

graduating with a degree in philosophy, he answered

an advertisement for a trainee tea tester- the initial

requirements being a willingness to ―travel the world

Investment News 7

Sebastian Michaelis never

used to think much about tea.

―I was into tea in the sense I

had lots of cups of tea when I

was a student, but didn‘t

know much about it,‖ he

confesses. ―I wasn‘t into food

at all, really - more of a pie

and pizza man.‖

That all changed when, after

graduating in philosophy, a

friend sent him an advert for

a trainee tea tester at Tetley.

company‘s legacy and a

top secret recipe so

valuable the team

members are not even

permitted to fly on the

same plane together.

So how much is your

tongue worth? If you‘re a

supertaster by birth, with

a willingness to train

rigorously for several

years and you have a bit

of luck, the answer may

be ―plenty‖!

―He said, ‗Look at this

ridiculous job‘. I read it,

and it said, do you like

tea, do you like to travel.

And I thought – yes, that

sounds great. So I

applied.‖

Now, Sebastian is one of

10 tea blenders at

Britain‘s largest tea

manufacturer, and has a

palate so refined that his

employers have just

decided to insure his taste

buds for £1m. Considering

that Heidi Klum's legs are

only worth £1.4m, it's a

pretty big compliment.

The company considers its

blenders so important

that not only do they

undergo intensive

training for five years, but

they aren‘t even allowed

to all travel on the same

plane, for fear that the

secrets of Tetley‘s nearly

two-century old blend could

be lost.

―It‘s flattering,‖ says

Sebastian, who, with his

rather dapper moustache,

looks like he could have

been at Tetley when it

started brewing cuppas in

1837. ―I love tea, and to be

insured is quite

something.‖

It is a profession that is accessible to most Kenyans but which is hardly known in which you can make millions

The Best Example

8 Investment News

Cover Story

A German graphics

designer Kai Krause is

leading an interesting

project –he has produced a

map that he says will shake

people's perceptions a little.

The question he is trying to

answer is: How large is Africa

compared to the rest of the

world? To United States, or

Western Europe, for

example? The answer is

important in todays world of

power politics and

exploitative world economies.

It is even more important in

the tourism industry—a top

earner in most countries—

and where a cough in Lagos

is assumed to have the

potential to send a heft man

reeling in Mombasa at the

Kenyan coast.

And the reason is that people

don‘t know the size of Africa

It may sound far fetched, but

think of the Ebola scare.

Trade in Africa slumped from

the cape to Cairo, from Lagos

to Mombasa.

Revisited:

What is the Size of Africa and What Does it

Mean for Trade in the African Countries?

Investment News 9

Moreover, political question

arise: Can Africa turned into

one centrally governed

country like the United

States of America?

Influenced by the USA, many

Africans still dream of a

United States of Africa.

Ghana‘s founding President

Kwame Nkrumah was so

convinced of feasibility of the

project that he spent much of

his time promoting the

concept.

Most inhabitants of the latter

places might guess it is a

little larger, but few would

This map, taken from the Economist magazine of London show many countries considered to be large

can in fact, all fit in the African continent.

have any idea of the scale of

the difference.

Karl says the problem is

that it is difficult to

represent a sphere—which is

what the world is—on a flat

surface.

―The problem is that these

maps exaggerate the size of

the countries at high

latitudes, and shrink places

near the equator - leading to

a perception that Europe is

larger than South America,

to pick just one example

among many,‖ Karl says

Arno Peters, German map

maker, historian, and

journalist, developed an

equal area map projection in

the early 1970s in order to

counter the commonly used

―Eurocentric‖ Mercator map

projection. He stated, ―In our

epoch, relatively young

nations of the world have

cast off the colonial

dependencies and now fight

for equal rights. It seems

important to me that

developed nations are no

longer at the center of the

world, but are plotted

10 Investment News

according to their true size.‖

Peters initially wrote a

controversial world history

text and found that ―the

quest for the causes of

arrogance and xenophobia

has led me repeatedly back to

the global map as being

primarily responsible for

forming people‘s impression

of the world.‖ It is important

to note that the Mercator

projection is rarely used

today except for the purpose

it was originally designed

for—navigation. Of course,

many Mercator maps can

still be found in use by

graphic designers, in older

classroom materials, and as

inexpensive wall maps.

Some have argued that since

people associate size with

importance this encourages

the already strong tendency of

the world's wealthiest nations

to disregard those who live in

the tropics.

Even if you are skeptical of

those theories, there are

clearer examples. Krause

initially released the map

years ago, achieving a burst of

fame. The image has come

back into the spotlight with

a renewed relevance

recently; the Ebola crisis

has led to panic about

visiting Africa. Any part of

Africa. Tourism in Cape

Town and solar

installations in Tanzania

have been affected because

people are scared to fly to

those places, despite the

fact that Paris is actually

closer to the countries with

an Ebola outbreak than

either of them.

Investment News 11

The Food Debate: Why

Kenyans Should Reject

Genetically Modified Foods

Years ago, the Editor of

Investment News saved Kenya’s

coffee industry from complete

destruction by an American

multinational Dupont which was

anxious to offload huge

quantities of its discredited coffee

spray chemical, Benlate. Only

the intervention of the Kenya

Parliament following the

publication of my story saved the

country’s coffee industry. And

what’s bad, all the while, Dupont

was using local agricultural

scientists.

Now we have another American

multinational at our doors once

again. And the issue is about

12 Investment News

GMOs an acronym for genetically

modified organisms GMOs - a

reference to foods whose genes

have been altered. These

controversial foods, particularly

maize, were banned in Kenya,

and in many other countries of

the world, following a study by

respected biologists which showed

that GMOs cause serious

diseases. But the powerful

American multinational behind

the GMO technology, Monsanto,

discredited for its corrupt

operations in many countries,

has pitched camp in Nairobi.

What protection do we, as

Kenyans, have against a giant

multinational? Now read the

story by Nguli Muli:

B y

November

of this

year, GMO

crops will probably be

legal in Kenya, if

Deputy President

William Ruto, will

have his way. And

Mr. Ruto is not alone.

In Kenya, many

public bodies,

including the Kenya

Agricultural and

Livestock Research

Organization,

support GMOs as the

solution to the maize

shortage in the

country.

GMOs have been

around since the last

century but have

been met with

resistance from

governments and

organizations all over

the globe. Monsanto,

the largest company

associated with this

kind of technology

has actually been

banned in a good

number of countries:

Austria, Bulgaria,

Greece, Germany,

Hungary, Ireland,

Japan, Madeira, New

Zealand, Peru, South

Australia, Russia,

France and

Switzerland. This

mostly has to do with

the health issues

associated with their

products.

But is it just a fear of

a new and unknown

technology as some

have claimed or are

there serious negative

Investment News 13

medical and economic

issues that come

along with the

legalizing GMOs?

Monsanto itself holds

strong in its claim

that the GMO

engineered products

are perfectly safe for

human consumption.

But then that‘s what

everyone expects

them to say of their

own products.

Monsanto has, over

the years, been

demonized for its

deceitful methods.

Tobacco and alcohol

companies make a lot

of money killing people

but then, they never

claim to produce safe

products. In the USA,

Monsanto has been

lobbying for the

enactment of laws

against labeling

products as either

GMO or organic

(organic is the label for

natural foods free

from alterations and

chemicals). In other

words, the

Americans should

consume their

poison, if there is

any, in complete

ignorance.

In the USA, it is not

hard to see why

GMO‘s are even legal

in the first place.

Being a key market

for their products,

14 Investment News

the US government is

full of former

Monsanto employees

or people sponsored

by Monsanto to lobby

for their interests.

The Food Safety

section of the Food

and Drugs

Administration is, for

example, headed by a

former Vice President

and attorney of

Monsanto.

Unfortunately, the

US is still viewed as

the Big Brother that

guides the rest of the

world in making big

decisions.

Being a rather new

form of technology,

little research has

been done by parties

other than Monsanto

but the few that exist

as reputable sources

are still worth

considering.

Gilles-Eric Seralini

Research

Gilles-Eric Seralini, a

molecular biologist,

carried out a study

that actually led to the

ban of GMO crops in

Kenya three years ago.

The study which was

published in Food and

Chemical Toxiology

reported that

genetically modified

corn caused serious

diseases, including

cancer, in rats.

However, later, the

findings were retracted

by the journal. Seralini

claims that this was

done as a result of the

appointment of

Richard Goodman to

the journal. Richard

previously worked for

Monsanto for about 7

years.

The Oz Show

Doctor Oz is one man

who has proven to be

trustable as he is a

master of controversy

and rarely ever seems

compelled to side with

the medical elite. The

American Health

Association has

actually threatened to

kick him out of the

association because of

this.

He has been on the

spotlight for the

labeling of GMO foods

in the USA. In general,

he does not believe

that GMO foods are

safe for human

consumption and

strongly advises his

audience to consume

organic foods.

According to him, if

GMOs have to be made

legal, at least everyone

should have a right to

choose whether to

consume organic or

genetically engineered

Investment News 15

foods.

GMO Myths and

Truths

Michael Antoniou,

PhD and John Fagan,

PhD are two of the

scientists who took

part in this highly

critical and in-depth

scientific research.

The research came up

with the following

facts regarding

genetically engineered

foods:

They are made

using methods

totally different

from the natural

breeding process

and therefore come

with a different set

of risks from

organic crops

They are not

regulated

adequately to

ensure safety

They don‘t increase

yield potential

They increase need

for pesticides

They harm soil

quality and reduce

bio diversity while

disrupting eco

systems

They cannot solve

the hunger problem

but will distract us

from its real cause

Dr. Shiva Vandana, in

a research, originally

published in The

Atlantic, tells us a

frightening story.

During the Second

World War, genetically

modified crops and

pesticides were used to

destroy rice farms in

Japan. According to

him, GMO crops are

modified to resist the

chemical used on them

and in this way,

everything but the

GMO crops are

destroyed by the

chemicals.

The GMO Myth and

Truths research

indicates three

potential sources of

health risks in GMOs.

First is the modified

gene which may be

toxic. Continous use

may result in a

situation similar to

that of the polio

vaccines which are

now actually causing

the disease they

should prevent.

Genetic

transformation

process of the

organism may result

in mutagenic effects

or other effects that

result in new toxins

and allergens. This

may also affect the

nutritional value of

the crop. Third, the

farming practices that

come along with

cultivation of GMO‘s

16 Investment News

may result in toxic

residues. Already an

example of this exists

in the herbicide

Roundup.

Studies show that use

of the herbicide can

lead to birth defects,

cancer, neurological

imbalances, embryonic

deaths, DNA damage

and fetal deaths.

Recently, a report from

Japan showed a

practical case of

mentally incapacitated

offspring resulting

from the consumption

of GMO foods by

Japanese soldiers.

GMO’s and Kenya’s

Economy

Another aspect of the

GMO issue often

ignored is the

economic implication

of the technology.

By now, most of us

know that Monsanto

and other similar

companies are

planning to stay in

business by making

sure that seeds cannot

be replanted. In other

words, they will

prevent the growing of

seeds which have not

been purchased

directly from them. A

‗suicide‘ gene that

destroys the

reproductive capability

of the crop will

accomplish this.

It is also important to

Investment News 17

acknowledge the fact

that farmers who

choose to stick to their

traditional seeds will

have to suffer if and

when cross-pollination

takes place as the gene

will be carried to the

offspring.

That will leave

Kenyan farmers with

no option but to keep

purchasing seeds from

the GMO companies.

Monsanto will end up

controlling our seed

and agriculture.

Of course, if the seeds

eventually fail, as they

occasionally do in

India, the only

economic losers will be

the farmers and the

Kenyan government.

And that‘s not the only

way farmers lose. The

fact that GMO

agriculture depends

heavily on chemicals

supplied only by the

GMO companies

means that soil

fertility deteriorates

consistently creating a

circle of dependency on

the companies. One

research estimates

that 75% of soils have

been degraded as a

result of GMO

fertilizers.

Then the farmers have

to deal with the health

problems resulting

from exposure to these

chemicals. Cancer is

possibly one of the

diseases caused by

exposure to the

fertilizers. In India,

reports say there is a

train that constantly

carries cancer patients

from Punjab to

Rajistran. Usually,

these are farmers that

are exposed to the

agricultural chemicals.

Almost everyone pays

in some way for all

these damages, except,

of course, the

companies producing

the seeds and

chemicals.

These are enough

reasons for Kenyans to

support anti-GMO

campaigns. We will all

suffer if we do not. We

have already begun to

see the effects of anti-

polio vaccines. Let us

not introduce

complications by

adding GMOs.

18 Investment News

Kitui is generally a quiet

County. Few things may be

going on there, but those few

contribute significantly to the

development of the County.

And it wasn‘t different with

the Investor conference that

ran from September 25 -26 at

the Kitui Show Grounds.

The large hall was packed

with serious local and

international investors and

businessmen and women.

Even on the final day, serious

discussion and displays were

going on. Businessmen and

women doing business in

Report on Kitui County

Investor Conference Kitui were given a chance to

tell investors what doing

business in Kitui was like.

And I watched with

excitement as both old and

young businessmen and

women candidly told their

stories.

One man explained the

investors what working in

horticulture was like. A

grafted tree of mangoes could

bring you Shs60,000/- a

season and you could rely on

that tree for over 30 years (a

traditional plant could stay

for longer than 50 years).

Kitui County is known as one

of the leading producers of

mangoes in Kenya. And even

in neighbouring counties such

Machakos were , mangoes

also grow, consumers eagerly

await mangoes from Kitui

County because they have

more sugar and better

quality.

In the exhibition tents, you

could confirm the quality and

taste of Kitui mangoes with

well package, inexpensive and

natural mango juice.

The framer told that us that

among other fruits that grow

in his farm were also

watermelons which were

easily sold in Nairobi.

A woman investor narrated

the beauty investing in a

bakery in Kitui. She had

always loved baking, she said.

And she had always wanted to

invest in Kitui. For that

reason, she returned to Kitui

after some 15 years in the

United States where she had

established a school business.

Now her bakery was thriving,

selling some 9,000 pieces of

bread daily.

There were vegetable

businessmen, traders in

construction industry and

INVESTING IN COUNTIES

Investment News 19

many more. They all were

doing good business in Kitui

County.

No visitor to the investor

conference would not have

been thrilled by the freedom,

excitement and enthusiasm

of the local investors during

the question time. They told

the county officials what they

believe should be done to

make the county a leading

investment destination in

Kenya. A man told of te

waste of vegetables that goes

on in Tzombe area because of

lack of markets. It was

surprising to hear that there

were areas were food was

thrown away in a county

generally regarded as dry.

One enthusiast official told

me that contrary to what

many people think, high

potential agricultural areas if

put together formed larger

areas that than the whole of

former Central Province.

Traditional food crops such as

millet and cassava do very

well in Kitui County. And

millet was now a cash crop,

with a large market among

beer brewers such as Kenya

Breweries who are ready to

support farmers to increase

acreage under the crop.

The atmosphere was so free

and friendly that even when

Makueni County Governor,

Prof. Kivutha Kibwana, stood

to ask his question, few

people were aware that he

was actually the Governor of

Makueni County. His

question had apparently been

provoked by the narratives of

the local investors. He

wanted to know whether the

County of Kitui had

developed a system of

ensuring that traditional

skills and trades were

preserved with lasting

succession system.

Although the answers

seemed to me to answer a

different question, many

people of te local investors

were able to examine their

inheritance and continuity

plans. That is important

because we need to encourage

business people to think and

plan ahead of themselves. It

is a known fact that many

businesses in Kenya die with

the owner.

Because of that most

business people do not strive

to grow their businesses

beyond subsistence level even

when they have the ability

and the potential.

Encouraging such people to

think and plan beyond

themselves would create

more enthusiasm for business

among parents and children.

20 Investment News

Cooperatives on the Move

2NK SACCO EXPANDS

Statistics graphically

demonstrate the

seriousness of the

problem. According to the

National Transport and

Safety Authority (NTSA),

every year, about 3,000

people die on Kenyan

roads. Regionally, Nairobi

comes first in that list;

accounting for about 20%

of the total fatalities. By

2013, accidents had

reached an alarming

3,318 deaths.

The larger fraction of the

fatalities is made up of

pedestrians. Passengers

follow closely, then

motorists. The lowest

number of deaths is that

of drivers.

The segment of the

population most affected

by these accidents is the

24-44 year-olds bracket.

While at that age people

are more mobile, the

NTSA says they are also

more reckless. For

example, they are

unwilling to use foot

bridges, leading to many

By NGULI MULI

O ver the years, 2NK

Sacco has striven to

improve business for its

members. Key in this

effort has been

measures to reduce road

accidents. Road

accidents are not only a

problem to the Sacco,

they are a problem

nationwide. They eat

into the profits of

transport operators. And

they kill people—

innocent people.

Investment News 21

O ne of the most important

achievements for our Sac-

co, as we celebrate our accom-

plishments in the past two

years, is that 2NK Sacco now

has its own front office savings

activity, popularly known as

FOSA. The FOSA opened up to

the public in February 2014.

This followed the licensing of

the Sacco by SASRA, the regu-

lator for deposit taking Saccos.

The licensing itself was a major

achievement for the Sacco, as

we are the first transport Sacco

to be registered as such.

And members of the public have

also continued supporting the

Sacco, a gesture that the Sacco

wholeheartedly appreciates. We

pledge to continue offering them

excellent services.

We are in deed, happy that we

are already offering a wide

range of products which target

all levels of the community,

including development loans

and insurance premium financ-

ing among a host of other

products.

The Sacco, in its growth plan,

hopes to embrace branch net-

work, as entrenched in its 5

year strategic plan. This will

enable us to serve our custom-

ers better, while also enlarging

our customer base.

God bless you all!

- James Kahiro

Chairman

Enlarging 2NK Sacco Base

pedestrian deaths. NTSA

also notes that the same

age bracket won‘t pause

their mobile phone

activities to either cross

roads carefully or drive

with full concentration.

It was also established

that more accidents occur

on Saturdays than on any

other day of the week.

Wednesdays are the

safest days to travel or

use road in any way,

according to statistics.

This finding points to

drunkenness as being a

major cause of road

accidents. Further, most

accidents are recorded

between 6pm and 10pm.

Reduced enforcement of

traffic rules in these

hours could contribute to

these findings.

These numbers,

unfortunately, have far

reaching effects on the

individuals, affected

families, economy and

the investors in the

transport sector. One fact

is that the bulk of road

accident fatalities is

made up of young and

productive citizens; many

of whom are

breadwinners to their

families and highly

productive citizens.

The estimates of the

economic losses in annual

road accidents are at

about Shs45 billion,

excluding the actual loss

of life.

The sad fact is that most

of these accidents result

from very easily

preventable driver-

centered causes. The two

leading causes are drunk

driving and over speeding

among drivers.

It is why 2NK Sacco is in

the forefront in taking

measures to fight road

carnage. We take pride in

22 Investment News

the fact that we have

contributed to the

restoration of sanity that

is now on our roads.

Through vigorous

campaigns, road users are

becoming more aware of

the dangers posed by

careless use of roads.

We, of course, are a part

of a group involved in

campaigns to reduce road

accidents. The

Government has

‘ We Remain Preferred Choice’ It has been close to 2 years since

the last edition of our magazine.

And it has not been an easy

walk. But we can truly say God

has been faithful this far.

What with all the new

regulatory requirements, in April

2014, when all vehicles were

required to be fitted with new,

much more expensive speed

governor, amid the confusion of

just a few accredited fitters and a

scarce supply. This caused a lot

of inconveniences to investors,

who were subjected to long

periods of waiting, losing a lot

of business as the vehicles were

not allowed on the road in spite

of having functioning,

previously fitted speed

governors.

A ban on night travel did not

help the situation, with the

effects being felt again by the

investors. In as much as 2NK

Sacco is

always at the

forefront when

it comes to

compliance

matters,

coupled with

our

determination

to reduce road

carnage,

which was the

main reason

why the government banned

night travel, there was need to

also address the issue of heavy

commercial vehicles doing night

travel as well as they also were

a contributor to these accidents.

A ban on importation of low

capacity vehicles was also a

major drawback particularly for

the better part of the year 2014,

but we thank the president for

having come to our aid at the

end of 2014, lifting the ban on

importation.

On a positive note, the Sacco

has continued making positive

strides in line with its vision,

“To be the leading transport

and financial services provider

in Kenya." After the lifting of

the ban on importation of the

low capacity vehicles, the

Sacco has supported members

tremendously in acquiring the

new model of matatus,

popularly known in the matatu

quarters as ‘choppers’. This has

not only provided the

customers’ preference but

further given the Sacco a

competitive edge while

remaining relevant in the

transport business.

Anne Kinyua

Chief Executive officer

collaborated with the

players in the transport

sector in these road

safety campaigns.

It is also necessary to

acknowledge other

players that have

stretched their arms to

educate the Kenyan

public on matters

relating to safety on the

roads. Matatu Owners

Association, East African

Breweries, Global Road

Safety Partnership,

World Health

Organization, John

Hopkins International

School of Public Health,

World Bank Global Road

Safety Facility,

Association of Safe

International Road

Travel and The World

Resources Institute are

some of them.

In April this year, the

campaign Save 1000 lives

Investment News 23

was launched jointly by

the NTSA and National

Road Safety Trust. The

campaign listed its key

goal as reducing the

number of road accidents

on our roads by a third in

the next 24 months. It

intends to mobilize the

private sector to

effectively actualize and

manage its programs.

The result of all these

activities has been a

decrease in road

accidents—and therefore,

hopefully an increase in

the profitability of

transport operators. Last

year, for example, 2,907

deaths on the road were

recorded; which was an

improvement

from those

recorded in the

previous years.

This year, the

numbers should

be much lower,

going by current

trends and

predictions. It is

estimated that

within the first

seven months of

this year, about

1,085 people

have died in road

accidents.

2NK Sacco has

played a key role in this

effort to make Kenyan

roads safe. Its new

regulations ensure

employment of drivers

with good conduct.

Towards this end, it has

intensified education of

drivers on road safety.

And above all, we have

installed motoring

gadgets that have made

our vehicles the safest on

the roads and reduced

losses incurred through

bad road usage and

driver misconduct.

2NK Sacco has embraced

modern technology to

help not only reduce road

accidents but also to

manage its fleet.

The technology provided

by Frotcom Limited

enables 2NK Sacco to

monitor the behavior of

drivers and other road

users on the road.

That way, we can know

and demonstrate who was

at fault in the unlikely

case of an accident.

Combined with internet

access, 2NK members as

investors can literally

watch over the movement

of their vehicles as well as

communicate with the

driver for fresh

instructions and updates.

24 Investment News

Investment News 25

Crop insurance is a vital part

of the world‘s agricultural

industry and a key risk

management tool for the

modern farmer. Despite

their best efforts, farmers

will often suffer because of

drought or even excessive

rainfall or hail and frost in

some parts especially during

harvesting. We cannot

BY FREDRICK KINOTI

control weather patterns and

therefore extreme weather

conditions can hit a crop at

any stage of development.

A farmer can only be at peace

when the whole crop is

harvested and safely in the

store. Till then the farmer

isn‘t sure of the harvest.

It is due to such

uncertainties that farmers

take insurance as a risk

mitigation tool. Insurance

gives a farmer some peace of

mind that if extreme

weathers prevails then he/she

will be able to come back next

season.

Insured Events

The insurance offered is

mainly a multi-peril cover.

The crop is covered for Yield

Losses, arising out of any or a

combination of the following

weather perils:

CROP INSURANCE:

It Reduces Farming Risks

Barley crop affected by drought

TURN TO PAGE 27

26 Investment News

EXECUTIVE HEALTH

Don‘t Let Your Brain Slip into from Memory Loss

If you expect to live into your 80s and beyond, which I dare say most of

us do, there's an important statistic you need to be aware of...

According to the American

National Institute on

Aging, by the time you

reach your 80s, you have a

50% chance of suffering

from significant cognitive

decline. That's right, the

odds that you'll literally

lose your mind by the time

you're in your 80s are no

better than the toss of a

coin!

It's sad but true — there is

no cure for age-related

cognitive decline, and

experts say that the

problem is becoming

increasingly widespread.

But that doesn't mean you

have to be a "sitting duck,"

just waiting to become

another victim. While the

cause of this sharp rise in

age-related cognitive

decline is not fully

understood, one thing is for

sure — if you want to keep

your mind and memory

intact as you age, you can't

risk a passive "it won't be

me" mentality. Just a few

simple steps can help stack

the odds in your favor for an

active brain and healthy

memory throughout your

life

Based on my research, the

following three nutrients

are the "best of the best"

and what I believe to be the

overlooked "secrets" to

preventing cognitive decline

SECRET No1:

This Antioxidant Is the

Brain's Fountain of Youth

Your brain depends on the

powerful antioxidant CoQ10

to keep it healthy. This

makes sense since CoQ10 is

a primary player in your

body's energy production

processes, and your brain

has incredibly high

demands for cellular energy.

Research shows that deficits

of CoQ10 severely

compromises brain function,

BY JOSHUA CORN leading to sluggish thinking

and memory impairment.

Yet, far too many people are

deficient in CoQ10,

especially seniors. That's

because as you get older,

your body produces less and

less CoQ10.

However, when you do have

adequate levels, your mind

and memory thrive!

SECRET No2:

The Omega-3 That Your

Brain Craves

One particular omega-3

called DHA

(docosahexaenoic acid) is

absolutely critical to

optimal brain function. As

you age, your brain's ability

to absorb DHA declines and

your levels can drop

significantly. This literally

starves your mind,

compromising both brain

function and memory

retention The results of

scientific studies on the

TURN TO NEXT PAGE

Investment News 27

Sahelian Solutions (SASOL)

Foundation has over 20 years

experience in Food Security

interventions in Kitui Kenya

and selected countries in

Africa, reaching over 400,000.

SASOL leads in development

of water structures for food

production among others.

SASOLis headquartered in

Kitui town.

1.Excess Rains

2.Drought

3.Hail Damage

4. Frost Damage

5 Fire

6. Uncontrollable pests and

diseases

To get insured

To get covered, a farmer will

need to provide the insurance

company with historical yield

data, say for the 5- 10 years.

This will establish the long-

term average over the years.

For example, most large-

scale farmers in Moiben have

produced on average

15bags/acre of wheat.

Insurance will cover up to

65% of this average. This is

referred to as the Yield

Guarantee. Thus, if a farmer

chooses a 65% Yield

Guarantee, he will be

covered up to 10 bags/acre.

The price per bag is pre-

agreed at the point of

insurance and will not be

altered at the point of

harvest. This price should

not be speculative.

Crop insurance is taken early

enough to avoid the farmer or

the insurer reading the

season. Farmer should factor

insurance as a cost of

production and budget for it

early. More and more farmers

are insuring their crops and

especially so, for the large

farmers.

Crop Insurance and

Credit Access:

One way of protecting

agricultural credit is through

crop insurance. Banks will

normally recover agricultural

loans from farmers by asset

recoveries (tractors,

combines). Surely, a humane

way of recovering these loans

would be through crop

insurance. The insurance

company pays the bank

directly after a bad season.

The farmer maintains his

creditworthiness and is able

to access finances for the next

season. Crop insurance

makes farming a less risky

venture and therefore

attractive.

* Fredrick Kinoti,

Agricultural Underwriter,

CIC General Insurance

Ltd

brain protecting effects of

DHA are incredibly

compelling. For example one

study showed a 60%

decrease in cognitive decline

in those who had a regular

intake of DHA.

Additionally, research has

shown that those suffering

from cognitive decline have

dramatically lower levels of

DHA in their brains

SECRET No3:

One of the Most Powerful

Brain Protectors Ever

Here are 2 factoids about

the nation of India.

Fact 1: The nation of India

has the highest

consumption rate of the

spice turmeric in the word.

Turmeric is the primary

spice used in curries.

Fact 2: India has one of the

lowest rates of cognitive

decline in the world, with a

death rate that is 8 times

lower than that of the U.S.

Memory Decline FROM PAGE 26

Crop Insurance Lowers Risks

FROM PAGE 25

28 Investment News

BUSINESS MANAGEMENT

Follow-Up Marketing

How to Win More Sales

with Less Effort If you‘re only doing one or

two follow-ups imagine all

the business you‘re losing.

Not following up with your

prospects and customers is

the same as filling up your

bathtub without first

putting the stopper in the

drain

A study done by the US

Association of Sales Executives

revealed that 81% of all sales

happens on or after the fifth

contact. If you’re a small

business owner and you’re only

doing one or two follow-ups

imagine all the business you’re

losing. Not following up with

your prospects and customers is

the same as filling up your

bathtub without first putting the

stopper in the drain! But don’t be disheartened if you’re among the 90% of business owners I talk to that don’t do any follow up. The good news is you have ample room for profitable

improvement. Consistent follow-up creates a predictable and profitable stream of prospects and customers that buy. Small businesses that capture leads and follow-up with them enjoy higher conversion rates and a higher percentage of referrals than those that don’t. What Does a Good Follow Up System Look Like? A good follow up marketing

system should have three attributes. • It should be systematic, meaning that the follow up process is done the same way every time. • It should generate consistent, predictable results. It should require minimal

physical interaction to make it run, meaning it should be able to run on autopilot.

Investment News 29

Three Types of Follow Ups There are three types of people you should be following up with, suspects (people in your target marketplace), prospects (people who have responded to your marketing but have not purchased, and customers (people who have purchased something from you.) Each follow up message and offer will be different for each type of person. With suspects, you’ll want to entice them to call you or visit your store / office. With prospects, you need to persuade them to make their first purchase. And with customers, you want to convince them to come back and do more business with you and give your referrals. Your Follow Up Marketing Tools Your principal follow up marketing tools are the telephone, direct mail, and email. Many pool and hot tub business owners make the mistake of jumping right on the telephone to follow up; however, most prospects don’t want a pushy sales message right away and most prospects have been trained to consider anyone who calls up to be a pushy salesperson. Instead, you should try to develop a relationship of trust with your prospect by quickly sending informational items such as special reports, audio CDs, or videos before you make a phone call.

Remember to always include a "next-step-offer" to accompany your educational materials. If the next step is to visit the store, then entice them with an appropriate offer or if the next step is to call you, entice your prospect to call you immediately. People move through the buying process in baby steps, especially when considering buying high-ticket items such as hot tubs or pools. Your offer should always help them take the next step. Your Follow Up Sequence The power of your follow up will lie in your follow up sequence. Your follow up sequence is a series of communications with your prospect that are "linked" together, with each communication building on the previous message. For instance, you might start your second letter by saying, "10 days ago I sent you a letter..." You might also consider stamping the message, "2nd Notice" on the envelope to let people know this is the second time you’ve contacted them. Referencing the previous communication links what you’re saying with what you’ve already said and

reminds your prospect that you care enough to continue the conversation. Usually, when doing direct mail you should include three to five mailings spaced out about seven days apart. When using a sequential auto-responder you can have as many follow ups as you want because using email is basically free (that’s why you always want to get a prospects email address). One of my clients has over 20 follow-ups in his auto-responder sequence that go out over a six month period. Each sequence should follow a logical argument and you might consider bolstering the offer with each communication using a deadline as a motivator to act now. As an example, in the third communication you could say, "I’m surprised you haven’t taken me up on my generous offer. What’s holding you back?" Or consider saying, "I’ve written you three times and you still haven’t taken me up on my offer so I’m going to pull out all the stops and make you an offer you simply can’t refuse." Notice how the language always links the previous communication and increases the boldness of the offer. It’s the same type of conversation you might have in a regular sales conversation.

30 Investment News

Teachers Deserve Much Better

Treatment—and Salaries No Kenyan denies the fact

that teachers in public

schools deserve better pay

and treatment. Even those

who have voiced contrary

opinions are saying they

should wait until the econo-

my improves.

The question is when will

the economy improve. May

be next month. May be next

year, May be 10 years from

now.

I guess teachers who have

been in one of the longest

strikes ever in Kenya, would

not mind that if we were all

swimming in the same boat.

But they are seeing others

rising fast. Among these are

parliamentarians and the

so-called parastatal work-

ers.

It has now become regular

thing to expect that when

the Government wants to

increase salaries of particu-

lar category of workers, they

create a parastatal for

them. Never mind that we

have the Sarah Serem Sala-

ry and remuneration com-

mission.

As the teachers have point-

ed out, employees of the

Teachers Service Commis-

sion (TSC) are paid many

times more than they are

paid.

A clerk with a D Grade in

the school certificate exami-

nation is paid Shs 35,000/-

per month with other luxu-

rious benefits. A secondary

school teacher with an ex-

cellent grade in Form Four

(and you must have a mini-

mum of B+ if you are going

to be admitted at the a pub-

lic university as a regular

student) starts at Shs

31,000/-. Is there any justifi-

cation?

Of course not. Only the

Commission of Serah Serem

can find a justification for

that and comes out to open-

ly announce it without

shame.

Again, what justification is

there for rubbishing educa-

tion certificates and success-

es into which parents have

sunk thousands of shillings

and the certificate holders

have spent sleepless nights

to achieve?

No one knows except the

UhuRuto Government and

the Serah Serem Commis-

sion.

Teachers are not the only

ones complaining. Indeed

the entire civil service needs

salary improvements—and

very urgently. Those who

invented certificate system

knew it was the only justifi-

able way of selection and

determining remuneration.

To abandon the system is to

consign ourselves to the

whims of human mind and

emotion such as we are see-

ing with Serah Serem‘s

Commission.

Let sense return to the

country. Let us use sensible

ways of determining proper

compensation for work.