Stream of Consciousness Reflections from Kenya
I reached Mombasa, Kenya on 23rd March 2014 after a grueling 30-odd hours of travel, straight after the grasp of the finals week. It was my first time in Africa and the moment I got off the plane, I was greeted by a cool morning breeze that would turn into a heat wave hours later.
Our first day (there were 22 MBA1 & 2 students, led by four MBA2 students), we stayed in a fancy resort, enjoying ourselves before we got into the grunt of business. We hung by the beach, played in the pool, chilled …essentially no different from what one would do in a resort anywhere else. It was great that the trip leaders decided to randomize the room assignments each night so that we got to mix around with as many people in the group as possible.
On the second day, we proceeded to our 3-day, 2-night village stay in Chanagande. The aim was to gain an appreciation of life in rural, low-income communities, and to understand the unmet needs in these communities. All of us were paired up with fellow student and had our own ‘family’ to stay with. The villagers we stayed with were very welcoming and seemed positively disposed towards ThinkImpact. The village chief did mention that we (Stanford students) were gaining a lot from them and that they hoped we could give back as much. A general worry among us students was that it would be challenging to make a substantive/ measurable impact in a few days. The Unleesh application mentioned by ThinkImpact did not seem popular. Most of the villagers I met used a basic phone; a few of the community organizers had a smartphone, but the app didn’t seem to have much uptake (yet).
My homestay family was gracious, and we communicated via simple English and a lot of hand gestures. The children were fascinated by us and we spent hours on our first day singing songs with them and playing with an inflatable ball that my roommate brought along. There was no electricity and when the sun set, it turned pitch-back. The villagers could easily navigate and recognize each other despite the darkness, while I was struggling to see using my torch light. We helped the homestay mum cook….the first meal was simple yet delicious – soup with potato in a tomato base. They insisted on us eating more and when we could not finish the food, the children hungrily grabbed the remaining food. At the end of dinner, the host guided us back to our room, which was housed in a mud-house. I was impressed we had a bed! I was also impressed with our ‘toilet’ as I expected a tiny hole in the ground, but it turned out to be a much bigger hole. The bath area was also separated from the toilet (that is a luxury) and we managed to create a curtain to take our ‘bucket’ baths.
The next day, we met with our local entrepreneurs. Mine was a fruit store seller who would travel 50km each way thrice a week to purchase fresh produce from the local market in Mombasa. It seemed really dangerous to me as he would be travelling on a rented motorcycle and carrying bags of goods back to the village to sell. I tried to practice what I had learned in the empathy-mapping lessons we had before the trip. It was not easy given the language barrier. My community organizer (i.e. interpreter) was not very well-versed either and it was a struggle trying to understand what issues my fruit-seller was facing. Poor communication coupled with an extremely busy store owner running the store while trying to answer my questions was not ideal. I was afraid that we would not be able to contribute anything to his business.
Thankfully, another community organizer came to the rescue and he was so pro-active, sharp and mature in his questions (he was just 19-years old!). I credit him for saving the day and the project. At that moment, I thought of how skewed opportunities are presented to those born in different circumstances.
During the innovation summit, where we got to present our plans to the local entrepreneurs, I was touched when my shy fruit store seller stood up to share how he thought the project was helpful and reframed his thinking on how he could take incremental steps to improve his business and record-keeping. I suppose I was more relieved than anything else because I did not know how helpful I would be and worse yet, I did not want to create a worse-off situation for him. I remain skeptical on how much we could actually contribute and create major change in that short span of time, but I believe the exchange of culture and views was refreshing for both sides and helped shift perspectives for the better.
After the village stay, we headed back to Nairobi and begun our series of meetings. We covered the spectrum of government, agriculture, finance, education and health in that fast and furious few days. I am really glad we did the meetings post-village stay as we got to experience first-hand what the unmet needs were. By experiencing lack of sanitation, days being ‘off-the-grid’, seeing how many children dropped out of school, understanding that healthcare was not easily affordable made the meetings a lot more meaningful and relatable. We no longer were discussing in the abstract.
The organizations were had meetings with were: Kenya Vision 2030, Bridge International Academies, International Finance Corporation, Equity Bank (which we also covered as a case in Strategy), Sanergy (my favorite), M-KOPA Solar (which recently had a partnership with d-light, a venture spun from the d-school), Open Capital Advisers, Miliki Afya (a very innovative low-cost and high-quality clinic targeted at the densely populated low-income areas – I was amazed at how clean they kept their clinics!), iHub, Juhidi Kilimo and finaly, the highly anticipated Safaricom/M-Pesa which dominated Kenya with their mobile money technology.
Some key take-aways from a few meetings:
1) Sanergy (hosted by David, co-founder)
Sanergy builds low-cost, high-quality, water-less toilet facilities (named FreshLife). Sanergy’s target market is the 8 million people in Kenya’s urban slums lacking sanitation facilities. Sanergy was piloted in the Mukuru community, where there are 500,000 people of which 80% lack access to hygienic sanitation. Sanergy franchises these concrete toilets to ‘entrepreneurs’ in the community (Sanergy sees them more as local operators and prefers that they follow specific guidelines and not innovate on processes). Each toilet is sold at US$600, or two for US$1100 to the operators, who usually take a loan from Kiva or Equity Bank. The operators are allowed to decide on the pricing and they keep all the fees they collect. On average, each operator makes ~US$1,000 per toilet in a year, which is more than the average in the community.
Sanergy has grown quickly over the past two years and there are not 189 operators, with 14,000-15,000 users a day. About 7 tons of waste is collected a day and processed into fertilizers. Currently, it takes 6-8 months for the waste to be processed into fertilizers. However, Sanergy has recently imported an enzyme technology from Singapore that will allow them to reduce this processing time to one day! Sanergy sees this as a game-changer.
Sanergy is not yet profitable as they have not yet sold their fertilizers. About 1 ton of fertilizer is processed from 1.3-1.4 tons of waste. Sanergy views their fertilizers as a complement to the synthetic fertilizers and not as a substitute. In addition to solid waste, they are now researching how they can use liquid waste and biogas. Each toilet on average is operating at 50% capacity, and Sanergy hopes this can be increased.
I took pictures of the old processing plant but we did not get a chance to visit the new processing plant as it is located an hour away from the HQ.
2) M-Kopa (hosted by Jesse and Alvin, co-founders)
M-Kopa is an asset-funding company that started in Kenya 4 years ago. It took just a year for them to prove themselves to series A investors. M-Kopa is targeting the US$1B ‘light’ market that is currently fueled by kerosene (kerosene is the competitor, not other solar-powered companies). Their target demographics are responsible parents who are invested in their children’s health and education. Families who buy these lights generally finance their loans in two ways – sponsorship by friends/family or their own pockets. They make payments to M-Kopa through M-Pesa. It seems that the key differentiating factor that will sustain M-Kopa beyond their d-light technology is the payment system. Their partnership with Safaricom which owns the M-Pesa system is critical in getting people to sign up (because they trust the Safaricom brand) and to pay (if they don’t pay, M-Kopa cuts off the system through an embedded sim card provided by Safaricom).
M-Kopa has sold 50,000 of these d-light systems thus far and is currently selling 5,000 per month. Their biggest constraint to selling more is not demand, but supply. They are hoping to sell 30,000 per month in future. They are not yet profitable as they invest all their cash flows into growth.
3) iHub/BRCK (hosted by Eric, CEO of BRCK)
We had a really short time with Eric as he was rushing off from one board meeting to another. However, he did give us an overview on BRCK and showed us a prototype they developed.
BRCK is essentially a router, modem and battery all packed into a compact system. They intend to sell each system for $200 and are targeting SMEs and small business owners. It is unclear what the take-up rate will be as the owners could alternatively buy separate routers, modems etc for lower prices.
Eric said BRCK’s biggest challenge was the lack of clarity on government regulation. For example, they want to assemble all of BRCK in Nairobi but taxation rules on some of the BRCK components prevent them from doing so.
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That is all I have for the meetings; I actually ‘hand’-wrote notes for every meeting but re-typing them all would be too onerous. On to the favorite part of my trip – the Safari! We went to the Masai Mara National Reserve (apparently the most prolific safari destination in Kenya and a must-see for visitors to Kenya and East Africa). As I was recollecting Disney’s The Lion King, I anticipated all the animals I really wanted to see in the wild – the lion and the cheetah. During our sunset and sunrise game drive, I saw both and more! Zebras, giraffes, elephants, ostriches, (one) hyena, vultures and their nests, 3! Lions, 2! Cheetahs (that actually walked towards us), gazelles, and those pigs that everyone seemed to be making a big fuss out of, probably because of nostalgic remnant memories from The Lion King. Time flew by as we drove and saw the wildlife fending for their daily survival. I would love to visit a safari again.
Before I end this stream-of-consciousness writing, I want to highlight a village a few of us opted to visit while at the safari – the Masai Village. For an entrance fee, the village chief’s son showed us their nomadic way of life – fire was ignited using wood and dried leaves; houses were built from cow dung; food was a mixture of cow blood and milk (they rarely ate the cow except for special occasions). The midwife held an esteemed position in the village and polygamy was widely practiced and accepted as a way of life. The villagers were very proud of their existing traditions but the chief’s son also shared with us that they acknowledged the changing world and were also changing along with it. For example, the entrance fees we provided them with would be channeled into funds to send the village children to the nearby school. Another fascinating and almost hypnotic tradition they have is for the guys to sing and jump as high as they possibly can (and boy, can they jump!). The height of the jump signaled some form of virility that was supposed to be attractive to women and crucial for courtship. Certainly way more interesting than any other form of courtship I have heard of! On that note, it is time to say goodbye.