Friday, July 31, 2015

KenGen pension fund builds Sh1.3 billion Rosslyn homes

KenGen pension fund’s Rosslyn Springs in Nairobi. PHOTO | DIANA NGILA 
By JOHN GACHIRI
In Summary
  • Homes Universal, the project managers, said Rosslyn is strategic as it is close to the diplomatic blue zone of Gigiri and is served by a number of large retail malls.
  • KenGen staff real-estate development is the latest in a series of high-end gated communities funded by pension funds, especially from the utility sector.

KenGen Staff Retirement Benefits Scheme has put up a Sh1.3 billion high-end housing estate in the Rosslyn suburb of Nairobi County as pension funds increasingly diversify into real estate.
The State-owned power producer worker’s Rosslyn Springs, a gated community of four-bedroom houses, is targeting homebuyers looking to live in areas not far from the city but sparsely populated.
Homes Universal, the project managers, said Rosslyn is strategic as it is close to the diplomatic blue zone of Gigiri and is served by a number of large retail malls.

Jamii Bora targets small ventures with 50 per cent of its lending

Money Markets
Timothy Kabiru, Jamii Bora Bank chief commercial officer. PHOTO | SALATON NJAU 
By John Gachiri
In Summary
  • Small businesses will account for half of Jamii Bora Bank’s (JBB) loan book by the end of the year under the lender’s new scheme.
  • To reduce the mortality rate of small businesses, the lender has set up the Jamii Bora Business Incubation Centre which will give legal, financial, business planning and governance advice to entrepreneurs.
  • The bank is targeting to lend women and youth-run SME Sh4 billion by the end of the year.

Small businesses will account for half of Jamii Bora Bank’s (JBB) loan book by the end of the year under the lender’s new scheme.
JBB plans to lend the SME sector, especially enterprises run by women and youths, 50 per cent of its loans as part of its strategic focus on small businesses.

Kenya’s vibrant real estate sector needs clear rules to instill order

 Commercial Bank of Africa Centre in Upper Hill, Nairobi.  PHOTO | FILE
Commercial Bank of Africa Centre in Upper Hill, Nairobi. PHOTO | FILE 
Opinion and Analysis
By MARTIN DIAS

In Summary
  • Reforms will greatly assist Kenyans to carry out transactions with more confidence and surety.

The real estate industry is today the largest single sector experiencing rapid growth. Even US President Barack Obama admitted that much had changed since his last visit to Kenya.
He was amazed and impressed to note that Nairobi’s infrastructure had developed significantly. He said: “Kenya is on the growth path having the highest growth rate in East and Central Africa.”
Today many Kenyans are shopping for homes. They are constantly looking around the neighbourhood for the right home to buy or apartment to rent.

Celebrity marketing gains popularity

US President Barack Obama dancing with Kenyan counterpart Uhuru Kenyatta, his sister Auma Obama and Sauti Sol at State House, Nairobi. PHOTO | FILE
US President Barack Obama dancing with Kenyan counterpart Uhuru Kenyatta, his sister Auma Obama and Sauti Sol at State House, Nairobi. The group’s lipala dance has received wide international media coverage, thanks to President Obama’s jig. WHITE HOUSE OFFICIAL PHOTO | PETE SOUZA 
By SANDRA CHAO-BLASTO
In Summary
  • There is no better way to drum up support for your brand than to host or hire a celebrated personality to market it.

Sauti Sol’s lipala dance is now in international media outlets from People, Vanity Fair, the Daily Mirror, the Washington Post, BBC, Time, Jezebel, the Guardian, CBS News to ABC News, thanks to President Barack Obama’s jig.
But this is not your typical celebrity endorsement deal. Marketers globally are spending millions of shillings in such deals, but some companies are just lucky. They do not have to spend a penny on celebrities to promote their brands.
The celebrated personalities spend a night or two in their hotels or carry a bag with their brand name and the international spotlight shines on them.
Nothing sells like celebrity. For instance, Lion in the Sun, a resort in Malindi, is the hotel where you are likely to find British supermodel Naomi Campbell when she is on holiday.
The exclusive retreat owned by Italian billionaire Flavio Briatore is a favourite retreat for other famous people like Formula One driver Fernando Alonso, fashion designer Roberto Cavalli and former Italian Prime Minister Silvio Berlusconi.
The hotel’s manager Philip Chai attributes celebrities’ continued preference of the resort to the unique design of the 16-room boutique hotel, which provides exclusivity, as well as tight security that ensures their privacy while on holiday.
Hotels like Villa Rosa Kempinski, Sankara and InterContinental are now preferred after hosting a number of celebrities.
Sandstorm Kenya, which started out in 2004 by making camping tents before switching to handbags, gained popularity globally after the Duchess of Cambridge Kate Middleton was photographed carrying their Odyssey bag that she was given as an engagement present.
After the indirect marketing from the duchess, the company has been receiving inquiries from across the world and its exports to the UK market have grown substantially.
A study on celebrity endorsement in Kenya submitted to United States International University’s Chandaria School of Business last year showed a relationship between the endorsement and continued brand loyalty as well as the ability to attract new customers.
The survey also showed that customers are inclined to easily switch to a product when it is endorsed by a person they hold highly.
Celebrity selling
These days it is nearly impossible to open a newspaper or magazine or watch television without seeing a celebrity selling something, whether it is a smartphone, clothes or even insurance products. Just last month, regional telecoms company Bharti Airtel unveiled international footballer and Ivory Coast captain Yaya Toure as its new brand ambassador.
The Manchester City midfielder, who has won the African Player of the Year award four consecutive times, is the new face of Bharti activities especially those that promote youth empowerment.
When US shoe company Skechers entered the Kenyan market in April this year, it sought to make a mark in the industry.

It chose renown disc jockey Joe Mfalme to be their country’s brand ambassador, leveraging on the popularity of his music mixes especially among the young and young at heart.
Beauty products giant Maybelline New York appointed makeup artist Muthoni Njoba as the lead brand ambassador and official makeup artist for its line in the Kenya in February.
Ms Njoba is a makeup artist for many celebrities, including musicians, TV and radio presenters.
Kenya Fashion Awards, the annual competition that seeks to showcase the work of established and student designers and photographers, has chosen youthful band Elani and model Pinky Ghelani as the brand ambassadors.
They have been featured in several advertisements promoting the gala that is to go down on August 22 at Brookhouse International School in Nairobi.
Grace Msalame whose journey to fitness and healthy living is in itself remarkable, is currently endorsing the Vivo Activewear fashionable outfits in a deal she landed in February.
At the same time, Swedish beauty company Oriflame confirmed singer Avril Nyambura as the face of its products in the country.
Over the years, corporate brands have increasingly turned to celebrities and musicians to sell their products. Safaricom is betting on gospel artiste Bahati’s popularity among the young people by appointing him as its Facebook brand ambassador.
National carrier Kenya Airways has also launched a campaign to change its fortunes by leveraging on business bigwigs like billionaire philanthropist Manu Chandaria and industrialist Vimal Shah. Its advertisement also features Charles Njonjo and Chris Kirubi.

Tabitha’s spirited fight in a brewing tax storm

Keroche’s phenomenal growth has seen its CEO fight and win many battles. PHOTO | BD GRAPHIC 
By JOHN KAMAU
In Summary
  • While the other rookies in the brewing industry were quickly scattered after a presidential order to rid the country of illicit brands, Tabitha bought space in newspapers and went to court to defend her place.

Tabitha Karanja, the CEO of Keroche Breweries, has fought many battles – and survived. But at the moment she is facing a titanic battle for her business life.
With her Naivasha-based brewery taking on the Kenya Revenue Authority in court over a tax row, the former parastatal librarian-turned brewer is also fighting to rescue some of her products, which have been labelled by the standards body as illicit brews. In the last few weeks, and in her media interviews, the once confident Tabitha looks sullen and crestfallen.
She believes her woes are about her gutsy decision to take on foreign multinationals in both the wine and beer industry.

Farmers face low earnings as processors cut raw milk prices

Politics and policy
Mr Nixon Sigey, the New KCC  managing director. PHOTO | SALATON NJAU
Mr Nixon Sigey, the New KCC managing director. PHOTO | SALATON NJAU 
By GERALD ANDAE

Farmers face low earnings as processors cut raw milk prices amid increased supply which also promises consumers more affordable products.
The New Kenya Cooperative Creameries (New KCC) is the latest processor to cut its price by Sh3, just a month after Brookside Dairy reduced the amount it pays per litre by Sh2.
A farmer delivering milk to the New KCC will starting next month earn Sh36 per litre while those who depend on the company’s transport will be paid Sh34 per litre.
New KCC managing director Nixon Sigey says the move has been informed by an increase in the volume of milk from farmers.

Nadella: Why I chose Kenya for Windows 10 global launch

Opinion and Analysis
Microsoft chief executive Satya Nadella. PHOTO | AFP
Microsoft chief executive Satya Nadella. PHOTO | AFP 
By LARRY MADOWO
In Summary
  • Microsoft CEO sees start of new era in tech world as firm unveils its latest operating system.

Microsoft on Wednesday launched its highly anticipated Windows 10 operating system.
Billed by the by the tech giant as “the best Windows ever”, the company aims to have one billion devices running on the software. It is built to run across laptops, desktops and smartphones.
Chief executive Satya Nadella came to Kenya a day ahead of the global launch. NTV’s Larry Madowo had a conversation with the Microsoft boss on why he chose Kenya as well as his views on the company’s latest product, innovation and what the future holds for tech.
Here is the excerpts of the interview.
Of all the places, why are you in Nairobi?
I’m here in Kenya and in Nairobi to listen and learn. The core mission of Microsoft is to empower every person and organisation on the planet to achieve more.