Career

Career  ·  Family  ·  Life
Coronavirus: Reveals Perils and Prospects in Kenya’s online platform workers

By Ms. Alice Gitau-Corp Skills Research strategist

Coronavirus (COVID-19): Financial Services in the Global Response

According to UNDP survey of 2013, 43 percent of the Kenyan population is below the age of 15 with those aged 15-35 years being approximately 36 percent making the country to be predominantly young.  

Like young people in many parts of the continent, Kenya’s youth are sinking toward the gig economy in the face of job shortages among traditional employers. Proponents of the economy argue that gig platforms can help workers to become more productive, smooth their incomes and obtain better labor and social protections than they might otherwise have access to in the informal economy. Corp Skills ’s research in Kenya confirms that many gig workers value their work as an essential source of income for their families. Yet the ongoing COVID-19 (coronavirus) crisis makes plain the limitations of gig work. Many workers lack savings and have seen their incomes plunge, with platforms unable to offer enough support to get them through the crisis. According to the platforms, however, there may be opportunities to collaborate with investors or governments to get loans or other types of financial assistance to workers.

Gig workers report major disruptions to business, depleted savings

As part of Corp Skill’s research on Kenya’s blossoming gig economy and what it means for financial inclusion, Corp Skills have been interviewing independent contractors, online platform workers, contract firm workers, on-call workers and temporary workers and platforms in Nairobi and Eldoret. Over the past few weeks, we reached out to understand the immediate impact of the COVID-19 crisis on their livelihoods, especially after the government imposed a number of restrictions on business and mobility in an effort to curb the disease, such as restricting the number of passengers in vehicles, closing restaurants and bars and imposing a curfew.

This impact has varied tremendously by sector. While platforms that facilitate logistics and movement of goods report a surge in business, those offering artisanal and personal services shared with us that business was down by as much as 90 percent.

Figure 1Dan Muturi a cab driver in Eldoret town Waiting on clients
The gig workers we spoke to in these sectors reported parallel drop-offs in their gigs. Dan Muturi, a cab driver, told us: “I can stay the whole day without a request. Before I could get even 18 trips. Yesterday, I didn’t get any request and even now, I’m online and there is no request.” His income has dropped during the coronavirus pandemic. In the face of this income shock, workers are resorting to various coping strategies. Few said they had savings, However, majority who had initially saved have already depleted them. These reports corresponds to the findings of a recent BFA survey in which median respondents indicated their household savings would be depleted in four weeks without income, with casual workers reporting some of the shortest financial runways. Additionally, many workers whom we spoke with reported borrowing from friends and family. Often, workers told us they were combining savings withdrawals with other strategies. Joyce Kabura, a produce vendor, said: “I am waiting for some chama [savings and loan group] money—I have already sent my kids to my rural home. My husband and I are surviving with the little daily returns.” Jedidah Chemutai , who sells artisanal goods through online platforms, has lowered his expenses. The week we spoke with her, he had made zero sales. Her Facebook pageviews have decreased from an average of 410 per week to fewer than 50. Her delivery costs have also increased, in some cases to half the price of the product. “We have to cut down on costs. We have reduced the portion and frequency of food consumption per day,” she said.
Figure 2 Displayed Mutumba Clothes

Those who do have work are trying to balance the risk of infection with the need for income. Similarly, the platforms that employ them report trying to balance the safety of their workers and communities with the need to survive as a business.

Gig platforms signal eagerness to route government payments or loans to workers

All the platforms we spoke with were attempting to support workers by ensuring they had accurate information, safety training and personal protective equipment. One platform said that this has involved translating official GOK and Ministry of Health bulletins and directives into simplified language workers can more easily understand. The platforms we spoke with had also adjusted their business processes to facilitate social distancing, such as by accepting photos of delivered goods instead of signatures.

Some delivery platform is seeing an uptick in business and have started hiring drivers in addition to the initially engaged ones, a move that may offer opportunities to idle workers in other sectors.

But clearly these pockets of strong demand will be insufficient to offset the overall weakening of the economy, and many gig workers will need income support to ride out the crisis. Several platforms expressed a desire to provide such support but lacked the funds given the sharp declines in their businesses.

The platforms we spoke to only have payments infrastructure and data on workers’ typical earnings that could be used to facilitate and calibrate payments to workers were there means available to funnel assistance. They also noted that it would be straightforward — “trivial,” in one platform leader’s words — to use platform infrastructure to facilitate cash transfers to workers as many of them fall outside of existing government-to-person (G2P) cash transfer programs.

Alternatively, income support could be structured as a loan from governments or financial institutions to be recovered through future business earnings. The source of capital could route the funds directly to the platform or through a financial services provider.

“We would be in it body, heart, and soul,” said the treasurer of another platform, referring to both possible support arrangements.

Corp Skills ’s initiative is to understand the role of financial services in helping workers maximize the benefits and minimize the risks of the gig economy. The current crisis has put into even explicit relief how convenient, appropriately structured savings, loans and insurance products designed for gig workers could help stabilize livelihoods in the face of an economic shock. Unfortunately, few such solutions exist, and we will be redoubling our efforts to pilot such longer-term mitigants incase the pandemic measures are prolonged.

In the meantime, Corp Skills may still be an innovative partner for those looking to channel immediate relief to hard-hit online workers.

Corp Skills is working to collect and synthesize insights on low-income customers coping with COVID-19. How is the crisis impacting the ability of poor people to generate income, access essential services and protect their living standards? Are responses from government, providers, NGOs, and funders making a difference for people living in poverty? Are these efforts reaching the people most at risk? Please share information and results from research with customers at info@corp-skills.com  to include it in our analysis.

Career  ·  Entrepreneur  ·  Life
Characteristics of a successful entrepreneur. (True Story)

By Edwin Manyeki.

Wanja grew up in the rural village of Mukika. She is the first born of 12 children. When she was 16 years old, Wanja’s father, who is a celebrity drunkard in the village, did not want to have her living at home anymore. He ordered her to choose between marriages or to just leave his home. According to him, he was growing old and about to die and he needed to enjoy cows from Wanja’s dowry while he was still strong. “Girls your age are usually married and never go beyond primary level. You are lucky you are in Form One,” said Wanja’s father, Mr. Zachariah.

Shortly within the same month, Mr. Zachariah arranged for a forced marriage of Wanja to a renowned cattle distributer of the village who gave him one cow in exchange. Wanja’s mother, who was deaf (read powerless), could not be involved in the negotiation and her only contribution was observation. At Wanja’s marital home, she was welcomed by village gossip and criticism of getting married to a man who changes women like clothes. Amidst the gossip, she discovered that the man she is married to was living with HIV/AIDS and, no doubt, she had contracted the deadly disease. Before Wanja could cope with the sad news and reality, her husband became ill and died within the same year of their marriage and left her pregnant.

How Did She Make It?

Throughout her childhood, Wanja wanted to become a tailor because she wanted to provide clothing for her younger siblings who had never been fully dressed unless they were at school. They were either in only a skirt/shorts or a blouse/T-shirt. They had one set of extra clothing for school or church. Wanja used to sew old sheets to make outfits for her siblings. She also wanted to open a business so that she could earn additional income and change the livelihood of her family. After her husband’s burial, on her way to the parents’ home, she saw a community support organization signpost that provides social support to women at little or no fee. She inquired about the organization’s activities. Upon learning that they had a tailoring program, Wanja asked if she could be enrolled in one of their tailoring programs (Information seeking).

Wanja immediately enrolled, and she became one of the pioneers in the tailoring project at the organization. During her four-month training, Wanja bought a saving box where she would drop 50% of any money she earned. Her first deposit in the saving box was the condolence fees she received from relatives and friends after her husband died. Knowing that she would need to cater to the basic needs of her unborn child, Wanja was hopeful that her savings would help her acquire the startup capital needed to purchase materials, since they were given a tailoring machine at the end of the course. (Systematic Planning & Time management).

Although Wanja gave birth during her last month of the tailoring course, she spent only three days at home and started carrying her child along with her to the training venue. She made sure she went to the teachers to take her through what she missed when she was away because she knew that these trainings sessions were important to her future. (Persistence)

At the end of the training, each one of them was asked to make a one-year action plan on how they would use the skills that they had acquired. While the majority of Wanja’s fellow students were complaining about the lack of startup capital and how hard it would be to find a market for tailoring in their local village, Wanja’s action plan had a goal of supplying uniforms for at least two schools within her community the following year. (Goal setting)

One week after the course ended, Wanja opened her savings box and found 5,000 Kenya Shillings, which she partly used to buy materials to sew her siblings’ uniforms, thinking that she would use them for marketing (Risk taking). Since her siblings were in three different schools, she moved with them to the various respective schools, telling the administration how well the uniforms were made and asking the administration to let her supply uniforms to the other pupils (Opportunity seeking). She assured them that, when given the chance, she would give one of the teacher’s children a uniform at no cost. (Persuasion and Networking).

When two of the schools accepted the opportunity, Wanja went back to the community support organization to inquire if they could direct her to where she could find good quality, affordable materials or the materials they used in their trainings. (Quality and Efficiency).

Wanja also decided to train her mother, who helped her especially when she was away. Wanja’s mother was responsible for expanding the business by looking for new customers and attending business management training courses so that she could help her daughter expand the business into a competitive enterprise across the district. (Commitment).

Now, two years later, Wanja supplies not only uniforms for three schools in her village, but she’s also the best maker of varieties of traditional dresses in her village. She pays school fees for two siblings.

In summary,

A successful entrepreneur is always on the lookout for information related to business. They ask other people for advice and information about prices. They observe the market to learn about the best location or to get new ideas for business. They also recognize that building partnerships with others, whether with customers, local authorities, or other business people, is important. They turn to their partners to understand different perspectives, find out relevant information, seek advice, build support, and ask for help.

Edwin Manyeki runs Entrepreneurship and business planning training. Get in touch with him on info@corp-skills.com

Career  ·  Entrepreneur  ·  Life
Our food chain is in crisis.

By Edwin Manyeki- Financial and Agribusiness Lead

Synopsis of Kenya’s agricultural sector

Agriculture plays a critical role in Kenya’s economy. Research indicates that agriculture contributes to 51% of the country’s GDP, with, 60 per cent of Kenya’s exports being products of agriculture. 60% of the country’s employment is linked to agriculture directly or indirectly. The performance of Kenya’s economy is to a large extent correlated to the performance of the agricultural sector. 

Three-quarters of the agricultural output in Kenya is attributed to smallholder farmers who operate between 0.2 hectares to three hectares of land. Smallholder farmers also contribute 75% of the marketed agricultural produce. Despite the concerted efforts of Kenyan farmers, food insecurity remains an ever-present threat. Food insecurity threatens 43% of the population in Kenya. 

What are the major foods consumed by Kenyans?

The staple foods consumed by Kenyans are: 

  • Cereals: maize, wheat, sorghum, and rice
  • Roots and tubers: Irish potatoes, cassava, sweet potatoes 
  • Pulses: beans, cowpeas, pigeon peas, green grams 
  • Vegetables 

Maize remains the staple food in most Kenyan households. It accounts for 65% of the staple food calories that are consumed in the country and 36% of all the calories consumed. Estimates indicate that 98% of smallholder farmers grow maize. Kenya does not produce enough maize, wheat and rice hence deficits are often bridged by imports. Large food imports harm the exchange rate and the foreign reserves of the country. The scarcity of foreign exchange reserves for the importation of food creates a scarcity of resources that would have been spent in other critical areas such as health care and education. 

The danger of food insecurity in Kenya

One in four people in Sub-Saharan Africa is said to be food insecure. Kenya has a population that is growing rapidly with projections indicating that between 2015 and 2050, the population will grow from 46.7 million to 97.2 million. In rural areas, it is projected that the population will increase by 52%, therefore, putting pressure on food supply and land. As the population continues to grow, the demand for food such as maize is also expected to significantly rise. By 2050, maize consumption in the country is expected to increase from 4.1 million metric tons to 8.6 million tons.  

The African Seed Access Index (TASAI) did a ranking of the competitiveness of the crop seed sector in Zimbabwe, South Africa, Uganda, and Kenya. The only country whose maize seed was ranked as “extremely poor” was Kenya. Uganda’s seed was ranked as good while Zimbabwe and South Africa scored fairly. The increase in crop yields over the last two decades is largely attributed to an increase in the acreage under crops. There has been a relative stagnation of yields obtained per hectare for other crops such as sorghum, rice, and wheat despite the increase in the amount of land that is being used for crop production. 

A comparative analysis of the yield per hectare in Kenya and the United States of America reveals a worrying trend. While the area under maize production in the USA remained the same in the period between 1960 and 2013, the yield per hectare increased significantly from 3 metric tons per hectare to 10 metric tons per hectare. In Kenya, the yield per hectare in the period between 1980 and 2013 ranged between 1.2 metric tons per hectare and 2.07 metric tons per hectare. The increase in maize yield per hectare in Kenya since 1980 has been marginal.

Projections indicate that by 2030, the population in Kenya will have increased to 66.3 million.  The demand for maize and other staple crops will rise even as the country struggles with the effects of maize imports on the country’s agricultural sector. It is estimated that the deficit of maize in the country will be 1.6 million metric tons. It is unsustainable to rely on imports from other countries because of the resources required as well as the unpredictability of market forces in those countries. 1n 2008-2009, Kenya required imports that were five times more than what was required in the previous years. Its neighbors, Uganda and Tanzania were also grappling with food insecurity making it difficult to import the required deficit from them which would have been more cost-efficient.

Low productivity as a jeopardy to food security

The most critical factor contributing to low productivity is the quality of seed planted by Kenyan farmers. Far too often, the seed used is from previous seasons hence it lacks important qualities such as pest resistance and disease resistance. In addition to this, farmers in Kenya often plant seeds that are not well suited for their local ecological conditions. The dominance of the public sector which owns 71% of the crop varieties in the country is to some extent a contributor to this phenomenon due to the fact there is a scarcity of vibrant licensing and breeder programs in the country. 

Over the years, there has been an increase in the use of certified seeds in the country even as both public and private sectors research on improving the quality of the certified seeds that are available in the market. Other factors that have contributed to poor production include: 

  • Access to fertilizers and usage 
  • Prevalence of fake certified seed 
  • Access to appropriate seed varieties 
  • New and possibly climate-induced disease and pests
  • Post-harvest storage 
  • Farm management practices 
  • Access to new markets 
  • Access to extension services 

The way forward: Research and innovation

The government-funded Seed companies and other parastatals have done a commendable job in the improvement of crop seeds. However, the threat of food insecurity continues to loom over the country thus there is a need for a more agile approach. This approach calls for the involvement of both public and private sectors to develop multi-faceted solutions towards enhancing food security in the country. Key among the ways of enhancing productivity is access to Agri-research on the quality of seeds available which would determine their productivity in various agro-ecological conditions. 

Conclusion

The population of Kenya is expected to increase significantly in this decade hence the need to address the looming threat of food insecurity. Corp Skills Ltd thus continues to work with agri-enterprises to ensure that the sector players are kept updated on the interventions and skills for improved production. In the line of the quality of seed. As efforts to improve the quality of certified seed that is available to Kenyan farmers are enhanced, it is important for farmers to have access to high quality agri research on the performance of various seed varieties in the national marketplace. 

Career  ·  Entrepreneur  ·  Life
How will you know success when it shows up?

Exercitation photo booth stumptown tote bag Banksy, elit small batch freegan sed. Craft beer elit seitan exercitation, photo booth et 8-bit kale chips proident chillwave deep v laborum. Aliquip veniam delectus, Marfa eiusmod Pinterest in do umami readymade swag. Selfies iPhone Kickstarter, drinking vinegar jean vinegar stumptown yr pop-up artisan.

A wonderful serenity

Meh synth Schlitz, tempor duis single-origin coffee ea next level ethnic fingerstache fanny pack nostrud. Photo booth anim 8-bit hella, PBR 3 wolf moon beard Helvetica. Salvia esse nihil, flexitarian Truffaut synth art party deep v chillwave. Seitan High Life reprehenderit consectetur cupidatat kogi. Et leggings fanny pack.

Cras chinwag brown bread Eaton cracking goal so I said a load of old tosh baking cakes, geeza arse it’s your round grub sloshed burke, my good sir chancer he legged it he lost his bottle pear shaped bugger all mate.

Higher business values

Growth through innovation

Meh synth Schlitz, tempor duis single-origin coffee ea next level ethnic fingerstache fanny pack nostrud. Photo booth anim 8-bit hella, PBR 3 wolf moon beard Helvetica. Salvia esse nihil, flexitarian Truffaut synth art party deep v chillwave. Seitan High Life reprehenderit consectetur cupidatat kogi. Et leggings fanny pack.

Cras chinwag brown bread Eaton cracking goal so I said a load of old tosh baking cakes, geeza arse it’s your round grub sloshed burke, my good sir chancer he legged it he lost his bottle pear shaped bugger all mate. The creators of the theme are happy with the response and have vowed to create further themes exploring the same concepts

Increased profits

Meh synth Schlitz, tempor duis single-origin coffee ea next level ethnic fingerstache fanny pack nostrud. Photo booth anim 8-bit hella, PBR 3 wolf moon beard Helvetica. Salvia esse nihil, flexitarian Truffaut synth art party deep v chillwave. Seitan High Life reprehenderit consectetur cupidatat kogi. Et leggings fanny pack.

Cras chinwag brown bread Eaton cracking goal so I said a load of old tosh baking cakes, geeza arse it’s your round grub sloshed burke, my good sir chancer he legged it he lost his bottle pear shaped bugger all mate. The creators of the theme are happy with the response and have vowed to create further themes exploring the same concepts