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Kenya: Economy Hurt By Political Disputes, Says British Envoy by Mwaniki Wahome

Nairobi — Kenya should resolve the political and constitutional issues fast to unlock its business potential.

British High Commissioner, Rob Macaire said despite many factors working in favour of the country, unresolved issues were slowing down investments. He was speaking at the High Commissioner's headquarters on Tuesday evening during the launch of Afribusiness Development, a consultancy firm with roots in Britain.

Mr Macaire said trade between the two countries continued to grow but can be enhanced, and was largely in favour of Kenya. According to statistics by the from the embassy, Kenya's exports from January to May was Sh15 billion compared to imports of Sh9.6 million in the same period.

Afribusiness Development, which has been offering services in Britain will provide training, consultancy services and supply chain strengthening to enhance international trade. "This is an example of how Kenyans in diaspora can contribute to the growth of the country. People talk of drain but through the transfer of knowledge the country can benefit." Mr Macaire said.

The firm will operate from the High Commission offices and will start training workshops in September. They will also be holding trade briefs every month for the medium sized companies that want to have market linkages with Europe.

"These briefs will help companies understand international standards of product quality and service delivery." the firm's CEO Annabell Karanja said. The trade briefings will be facilitated by consultants from Britain who have experience on the standards required for various goods in the European market.

She said many small businesses fail more due to lack of adequate information than lack of capital. According to available statistics from Kenya Bureau of Statistics, over 50 per cent of the businesses are in the small and medium enterprises category.

However, three out of five start-ups fold after a few months

http://allafrica.com/stories/200908120593.html

ROUTES TO MARKET...AVOIDING THE BLIND ALLEYS

The internet has revolutionized the way we do business, making it much easier to connect buyers and sellers. For those who are finding it a bit of difficult choosing a route to market, there are many routes to market to consider for various organisations and products:

1. Retail - you sell to the end user yourself. Higher costs, but you get to keep all the profits.

2. Wholesale - you supply retailers who in turn sell on. You delegate control but cover more ground.

3. Distributors - this is usually a business to business model.

4. Agents - you sell your products alongside those of others. Brilliant for seasonal products and those with small order sizes.

5. Online - Websites enable millions of people to find and then buy from you in theory. Drawback is the cost of attracting people to your site.

6. Intermediaries - These are people who introduce you to their customers and you do the selling. Consultancy is often sold in this way.

7. Networking - some people sell only through networking. They are usually heavily involved in social, cultural, business and charitable initiatives. People buy from them because they know them.

8. Demonstrations - going where people are gathered and exposing them to your product or services is a great way to sell. Someone has already done the hard work of recruiting the customers eg fairs.

9. Multi - Level - we all know this type of entry to market, GNLD...need I say more. Very successful as customers are encouraged to become distributors. Used in telecoms and a range of household products.

10. Piggyback - selling your product as part of a package with someone else's.

Choosing the best route will depend on what is best for the product you are selling. To learn more on routes to marketing, contact us at mail@afribusinessdevelopment.com

Consumers on the warpath over shoddy services

Written by Kui Kinyanjui, Business Daily

April 16, 2009: On Tuesday, Joseph Onyango absented himself from work to camp outside the offices of a car monitoring company that he believes has fleeced him of over Sh45,000.

Incensed by an exposé on a local TV station which alleged that the firm was fleecing consumers by installing bogus satellite tracking devices on cars, Mr Onyango was determined to get his money back, regardless of whether there was truth in the claim or not.

“Just last week, I called them and asked for my car to be located, it was in my garage at home. They are yet to get back to me ... ” he said.

The satellite tracking saga has emerged as the latest in a string of incidents within the ICT industry that analysts say are dampening the faith that consumers have in telecoms companies.


With several hundred customers still smarting from the shock exit of GTV earlier this year, there is a general feeling that local firms are giving innocent consumers the short end of the stick.

Last year, the Communications Commission of Kenya (CCK) said it had received more consumer complaints than ever before, recording a 70 per cent increase in complaints against unruly companies in 2008 compared to the previous year.

The statistic indicates that technology users are becoming more aware of their rights, and is drawing operational standards to the fore as the telecoms regulator moves to enforce licence terms for operators. CCK received just 29 official complaints last year.

The figure contrasts with the number of complaints logged with the ICT Consumers Association, which said it was handling an average five cases per week.

“The industry is moving away from highly priced, poor quality communication services and more sophisticated complaints are coming in. As service providers increase their offerings and consumer base, consumers are expecting more its emerging,” Mr Alex Gakuru, chairman of the association said.

EAC gears up towards one standards body 

Excerpt from Business Daily March 27th 2009

March 26, 2009: The East African Community has started harmonising the roles of various national standards bodies (NSBs) and other quality regulators in the region.

The move is aimed at enhancing intra-regional trade as negotiations on the common market protocol get to definitive stages.

Kenya’s Industrialisation PS, Prof John Lonyangapuo, says the decision by partner States to standardise and co-ordinate the operations of various National Enquiry Points (NEPs) is to increase the proportion of locally produced goods being consumed in the region.

“At the moment, the region’s 120 million people consume just less than 30 per cent of agro-industry products produced within the region and we hope that by addressing these quality and safety barriers to trade, Kenya alone can increase the share of her products consumed within the region from the current seven to 15 per cent in the next five years,” he said.

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