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On investing in Kenya

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On investing in Kenya

The growth of the Kenyan economy has been steady over the recent past. With the economy hitting 5.9% in 2016 and the World Bank predicting a growth rate 6% in 2017. This attributed to massive investments in infrastructure and creation of more jobs thus boosting the business climate of the country. The expansive fiscal policy of the East African community has enabled the country to bump money into infrastructural developments without pressurizing the domestic financial markets. This in return has helped keep the public debt at a threshold of 50%. This despite the number of risks and threats that have been facing the country, for instance Alshbaab attacks that have affected the tourism sector, one of the key sectors of the country. Talking of the manufacturing sector, it has been stagnant in the recent years, woes attributed to minimal production and lack of competition in the sector. Regardless of the same the positive outranks the negative.

 

Sectors to invest in.

    • Agriculture

Agriculture is the key driver of the Kenya’s economy contributing about 25% directly to GDP, accounting for 18% of formal employment and more than 70% of informal employment and forming 65% of Kenya’s total exports. This sector provides the daily bread for majority of Kenyans and entails livestock farming, crop production, horticulture, fishery and forestry. Production of crops and horticulture contributes 76.5% of the total Agriculture GDP, with livestock farming, forestry and fishing contributing 4.9%, 0.7% and 0.5% respectively. The opportunities up for grabs here range from floriculture and horticulture, value addition processing, development of multipurpose dams, large scale animal production for milk and meat, fisheries development and management, marketing infrastructure, development of abattoirs, establishment of disease free zones and Irrigated Agriculture Program for industrial crops. This sector is considered viable for investment because of; readily available well-established export market for agricultural products, affordable labour and land, and favourable government policies. 

 

  • Manufacturing

Though agro-based it plays an important role in the growth of Kenya’s GDP. With the country shifting to export based manufacturing with an anticipation of increasing the regional share of products from 7% to 15%. The investment opportunities here include agro-processing, manufacture of fertilizer, iron and steel industries, motor vehicle assembly, manufacture of spare parts, machine tools and machinery, assembly of automotive components and electronics, manufacture of garments and manufacture of plastics, paper, pharmaceuticals, chemicals, metal and engineering products for both domestic and export markets. This sector is largely boosted by high demand for locally manufactured goods, easy access to the regional market and global market for its manufactured goods owing to its membership in East African Community (EAC), Common Market for East and Southern Africa (COMESA) and African Growth Opportunity Act (AGOA). In addition to that Kenya is promoting development of Industrial Parks, Special Economic Zones (SEZs), Industrial Clusters, development of niche products, promotion of small and medium scale manufacturing firms, commercialization of research and development results.

 
  • Tourism 
This sector is the third largest GDP contributor after agriculture and manufacturing. And it’s a leading foreign exchange earner to the country. It presents opportunities like; hospitality and tourist attractions such as wildlife, national parks, game reserves, forests, savannah grasslands, geographical landscapes, hot springs, good climate, salt and fresh water lakes, mountains, coastal beaches, world heritage sites, rich cultural history, botany and zoology, coral reefs, caves and river deltas, among others. Growth of this sector has been greatly boosted by conducive and enabling environment, good government policies and support, liberalization, political stability, yielding tourism promotion and readily available market.

 

  • Energy 
Energy is identified as one of the three pillars of Vision 2030. As a result, the government is focused in the need for additional generation of energy, going as far as introducing Feed-In Tariff (FIT) policy to attract private investments. The main sources for energy in the country include wood fuel, petroleum and electricity accounting for 69%, 22%, and 9% of the total energy use respectively. 67.5% of the electricity is generated from renewable energy i.e Hydro, Geothermal and Fossil fuels at 47.8%, 12.4% and 32.5% respectively. Kenya is on route to become Africa’s biggest producer of geothermal energy and set to achieve production of 5,000 megawatts (MWs) of power by 2030, over 70% of this from renewable sources. Kenya also intends to start building its first nuclear plant as from 2022 for a five-year period at a cost of about Ksh 500 billion with a capacity of 1,000 MWs. With plans to build four such plants afterwards with a total output of 4,000 MWs, pushing the total cost to Ksh 2 trillion. With 80% of the country’s population without access to electricity some of the opportunities in the sector include generation of energy using renewable sources, development of diesel plants and hydropower, construction of pipeline and storage facilities for petroleum products, drilling and steam field development of wells for geothermal, and with the discovery of oil in Turkana country, investors can also enter the sector to explore petroleum deposits in other potential regions of the country.
 
  • Infrastructure 
The government is currently undertaking massive infrastructural developments throughout the country. Some of the undergoing high projects include building of a standard gauge line to replace the current Kenya-Uganda railway, development of a new corridor from Lamu to South Sudan and Ethiopia (LAPSET), redevelopment of the Northern Corridor, development of a commuter railways system around Nairobi and construction of a new terminal at Jomo Kenyatta International Airport. The opportunities in this sector include; road construction and rehabilitation, rehabilitation of airports, construction of power generation plants, construction of the proposed multi-billion shilling Konza ICT Park and construction of resort cities in Isiolo, Lamu, Diani, Kilifi and Lokichoggio towns.
 
  • Information and Communications Technology 
With the size of the local market estimated to be at Ksh 50 billion, Kenya is a hub of technological innovation, for instance the very well-known MPesa Software. The sector enjoys a stable pro-investment government, business friendly regulatory reforms, a pool of highly educative, innovative talent and culture, regional strategic location and Kenya is a host to regional offices for the world’s biggest technology companies including Google, Microsoft, IBM, Oracle, Cisco and SAP.
 
  • Real Estate and Construction 
This is one of the most lucrative and vibrant sectors of the economy. With the current housing deficit standing at about 300,000 units nationwide, constant increase in population and ever growing demand for affordable housing, the sector offers opportunities such as construction of commercial and industrial buildings, residential, agency, consultancy, manufacture and supply of construction materials. In helping to advance this sector, Kenya boosts quality engineering, readily available building and architectural design services and good infrastructural network.
 
  • Environment and Natural Resources 
Kenya is endowed with an environment that comes with many investment openings. These include; mining of minerals, climate change programmes (prediction and adaptation), solid waste management, catchment protection, Eco-Tourism facilities in forest reserves, carbon offset schemes and control of invasive weeds.
 
  • Banking and Finance 

This sector has continued to grow and expand rapidly due to increased lending and significant financial innovation. Some of the areas to invest here include; Banking (Kenya has more than 40 banks), Insurance (Kenya is under-insured with penetration level of about 1% of GDP), Capital markets, Pension Schemes, Building Societies, Microfinance Institutions (MFIs), Kenya Post Office Savings Bank (KPOSB), Savings and Credit Cooperative Societies (SACCOs), Development Finance Institutions (DFIs) and informal financial services such as Rotating Savings and Credit Associations (ROSCAs).

 

Why invest in Kenya.

Kenya fosters an attractive investment environment in terms of low cost, infrastructure, strategic location, market access and cheap skilled workforce. This is solely because Kenya has competitive opportunities and favourable regulation ready to be exploited by investors. They include but not limited to the following:

  1. Kenya economy is East and Central Africa’s largest and most advanced economy contributing to more than 40% to the region’s GDP. The rebase of the country’s economy back in 2014 made it the ninth largest economy in Africa and fifth in the Sub-Sahara region. It’s one of the most diversified and advanced economies in Africa supported with strong growth prospects.
  2. Kenya enjoys a low risk investment environment, boosting as the strongest in the East and Central African region with advanced markets and multinational companies setting up their regional and continental headquarters in the country.
  3. The cost of doing business in Kenya has been lowered to favourable levels compared to other countries in the region. Regulatory reforms have also been introduced intended to reduce the time taken to register a business and reduce the number of licensing requirements.
  4. Kenya is in the process of achieving a production of 5,000 MWs of power by 2030, 70% of that from renewable sources, making the country Africa’s biggest producer of geothermal energy. The country also plans to tap into nuclear energy with the construction of the first nuclear plant projected to start as from 2022. This will increase the availability of energy while at the same time reducing its cost.
  5. Kenya is strategically located in the region acting as a gateway to East and Central Africa, making the country ideal for strategic partnerships designed to uplift regional and global market share.
  6. The physical infrastructure of Kenya is relatively well developed making the country a transport hub for East and Central Africa. The infrastructure of the country is under major transformation that will make the country more accessible; with the Standard Gauge Railway taking shape, construction of Lamu Port Southern Sudan – Ethiopia Transport (LAPSSET) Corridor underway and expansion of the Jomo Kenyatta International Airport. Kenya also boosts the eight-lane controlled-access 50km Nairobi-Thika superhighway that was completed in 2012.
  7. Kenya enjoys preferential access to world markets under a number of special access and duty reduction programmes. Kenya being a signatory to many trade agreements and tax treaties enables the country to reap heavily from smooth, free and predictable trade flows. For instance Kenya is a member of World Trade Organization (WTO), East African Community (EAC), Common Market of Eastern and Southern Africa (COMESA), Africa Growth and Opportunity Act (AGOA) and ACP-EU Trade Agreement (the Cotonou Agreement).
  8. A wide range of Kenya’s manufactured products are entitled to preferential duty treatment in the United States of America, Japan, Canada, New Zealand, Australia, Switzerland, Norway, Sweden, Finland, Austria, and other European countries under the Generalised System of Preferences (GSP).
  9. Kenya has liberalised its economy by removing obstacles that hinder free flow of trade and private investment. For instance it has removed import and export licensing, exchange controls and restrictions on remittances of profits and dividends.
  10. Kenya boosts a large number of skilled, educated, sophisticated and cheap readily available workforce whose services are sought out in the region, continent and worldwide. With 55% of Kenya’s population composed of the labour active age of between 15 and 64.
  11. Despite waves and changes in the political atmosphere Kenya has enjoyed unrivaled stability, both political and economic-wise.
  12. Kenya has a vibrant, vocal and resilient private sector that advocates for their concerns ensuring a leveled ground for business between the public and private sector, fair treatment and advocating for conducive business legislations. These include: Kenya Private Sector Alliance (KEPSA), Federation of Kenya Employers (FKE) and the Kenya Association of Manufacturers (KAM).

I’m a literati savant, altruistic, queer laughist, critique from the non-core academia and above all it’s my conviction that in all my papers the rule of three applies.

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Best quotes from Oprah Winfrey

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Best quotes from Oprah Winfrey
  1. “The thing you fear most has no power. Your fear of it is what has the power. Facing the truth really will set you free.”
  2. “It doesn’t matter how far you might rise. At some point, you are bound to stumble. If you’re constantly pushing yourself higher and higher, the law of averages predicts that you will at some point fall. And when you do, I want you to remember this: There is no such thing as failure. Failure is just life trying to move us in another direction.”
  3. “Everyone wants to ride with you in the limo, but what you want is someone who will take the bus with you when the limo breaks down.”
  4. “What God intended for you goes far beyond anything you can imagine.”
  5. “Surround yourself with only people who are going to lift you higher.”
  6. “Don’t worry about becoming successful but work toward being significant and the success will naturally follow.”
  7. “When you undervalue what you do, the world will undervalue who you are.”
  8. “The life you want is waiting to rise up to meet you … Will you accept it? Do you feel worthy enough to accept it?”
  9. “You will find true success and happiness if you have only one goal. There really is only one, and that is this: To fulfill the highest, most truthful expression of yourself as a human being. You want to max out your humanity by using your energy to lift yourself up, your family, and the people around you.”
  10. “Be thankful for what you have; you’ll end up having more. If you concentrate on what you don’t have, you will never, ever have enough.”
  11. “If you feel like he is stringing you along, then he probably is. Don’t stay because you think “it will get better.” You’ll be mad at yourself a year later for staying when things are not better. The only person you can control in a relationship is you.”
  12. “As you become more clear about who you really are, you’ll be better able to decide what is best for you – the first time around.”
  13. “Learn from every mistake, because every experience, encounter, and particularly your mistakes are there to teach you and force you into being more of who you are.”
  14. “So go ahead. Fall down. The world looks different from the ground.”
  15. “The greatest discovery of all time is that a person can change his future by merely changing his attitude.”
  16. “One of the hardest things in life to learn are which bridges to cross and which bridges to burn.”
  17. “You can have it all. You just can’t have it all at once.”
  18. “The more you praise and celebrate your life, the more there is in life to celebrate.”
  19. “Turn your wounds into wisdom.”
  20. “Align your personality with your purpose, and no one can touch you.”
  21. “Let go. And remind yourself that this very moment is the only one you know you have for sure.”
  22. “Books were my pass to personal freedom. I learned to read at age three, and soon discovered there was a whole world to conquer that went beyond our farm in Mississippi.”
  23. “The biggest adventure you can take is to live the life of your dreams.”
  24. “If you come to fame not understanding who you are, it will define who you are.”
  25. “Your calling isn’t something that somebody can tell you about. It’s what you feel. It is the thing that gives you juice. The thing that you are supposed to do. And nobody can tell you what that is. You know it inside yourself.”
  26. “What we dwell on is who we become.”
  27. “If friends disappoint you over and over, that’s in large part your own fault. Once someone has shown a tendency to be self-centered, you need to recognize that and take care of yourself; people aren’t going to change simply because you want them to.”
  28. “What you put out is already on its way back to you.”
  29. “You don’t become what you want, you become what you believe.”
  30. “Real integrity is doing the right thing, knowing that nobody’s going to know whether you did it or not.”
  31. “I don’t think you ever stop giving. I really don’t. I think it’s an on-going process. And it’s not just about being able to write a check. It’s being able to touch somebody’s life.”
  32. “Everything happens for a reason, even when we are not wise enough to see it. When there is no struggle, there is no strength.”
  33. “True forgiveness is when you can say: Thank you for that experience.”
  34. “I’ve come to believe that each of us has a personal calling that’s as unique as a fingerprint – and that the best way to succeed is to discover what you love and then find a way to offer it to others in the form of service, working hard, and also allowing the energy of the universe to lead you.”
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The top 10 most profitable companies per employee in the world 2018

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The top 10 most profitable companies per employee in the world

Profit per employee is a ratio that is calculated as a company’s profit divided by its current number of employees. It is a rough measure of how much profit each employee generates for the firm. This ratio is most useful when comparing it against other companies in the same industry, or looking at changes in a company’s own figure over time. Ideally, a company wants the highest profit per employee possible, because it indicates higher productivity and effective use of the firm’s resources.

 

One of the largest expenses for a company is salary and benefits for the workforce, and profitable companies leverage the investment in people by developing workers who are very productive. This is sometimes known as investment in human capital. Helping workers operate productively is similar to asset utilization, an accounting term measuring how well a company uses capital assets to grow revenue.

 

Below is the list of the top 10 companies with the highest profit per employee in 2018.

Rank

Company

Profit per Employee ($)

Country

1

Fannie Mae

$1,759,000

United states

2

Gilead Sciences

$1,500,111

United states

3

Freddie Mac

$1,306,419

United states

4

Facebook

$599,307

United states

5

Amgen

$402,187

United states

6

Apple

$393,853

United states

7

Alphabet

$270,329

United states

8

Taiwan Semiconductor Manufacturing

$218,951

Taiwan

9

Goldman Sachs Group

$215,058

United states

10

AbbVie

$198,433

United states

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Requirements for starting a hospital in Kenya

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Requirements for starting a hospital in Kenya

Thinking about starting a hospital in Kenya, for instance a dispensary, medical clinic, eye clinic, eye hospital, health centre, medical centre, nursing home, maternity home, funeral home, level 3 mission hospital, level 4 mission hospital, level hospital, level 5 hospital or level 6 hospital. The Kenya Medical Practitioners and Dentists Board has set out some mandatory requirements and guidelines that you should meet before finally breaking that glass ceiling.

  1. Obtain forms IX upon payment of Ksh. 1,000. Return the forms filled in and duly signed by the area Medical Officer of Health or the Provincial Medical Officer (PMO)
  2. Provide company/business registration certificate
  3. Submit separate inspection report with relevant details signed by the inspection team
  4. Provide certified copies of professional qualifications of all medical personnel working therein e.g. private practice license for doctors and nurses and their registration certificates
  5. Provide building architectural plans that must be signed by relevant authorities
  6. In the case of hospitals, provide proof of mortuary/storage facilities for dead bodies
  7. In the case of hospitals, a pharmacy run by a qualified pharmacist/pharmaceutical technologist must be in place
  8. Must pay relevant fees applicable in each category (Listed below)
  9. The Proprietor /Administrator/Director to ensure that:
  • The facility is kept clean
  • The Institution’s licence is up to date
  • Health professionals working therein are registered/ licenced appropriately
 
Below are the fees applicable to different categories of medical institutions.

1. Dispensary

A health facility devoted to treating outpatients which is not intended to be used for more than 12 hours. Either licenced to a Faith Based Organization (FBO) e.g. (church, mosque).

 

 

Dispensary

Application Fee

Registration Fee

Annual License Fee

Ksh 1,000

Ksh 5,000

Ksh 5,000

2. Medical Clinic

A private practice health facility devoted to treating outpatients which is not intended to be used for more than 12 hours.

 

 

Medical Clinic

Application Fee

Registration Fee

Annual License Fee

Ksh 1,000

Ksh 5,000

Ksh 10,000

3. Eye Clinic

An outpatient facility by an ophthalmologist that exclusively offers eye services.

 

Eye Clinic

Application Fee

Registration Fee

Annual License Fee

Ksh 1,000

Ksh 5,000

Ksh 10,000

4. Eye Hospital

A facility that exclusively offers eye services and has:

  • Outpatient facilities
  • Admission beds
  • Theatre
  • Cataract surgeon/ ophthalmologist

 

 

Eye Hospital

Application Fee

Registration Fee

Annual License Fee

Ksh 1,000

Ksh 10,000

Ksh 30,000

5. Health Centre

A Faith Based Organization (FBO), Community or registered organization, e.g. (school, company, church or mosque. Comprised of consulting rooms, offices, treatment rooms, laboratory and minor theatre providing health care services which include and limited to providing basic health services minus specialized services e.g. x-ray, theatre etc. Services provided: curative, inpatient, maternity, referral, ANC/FP/Immunization and laboratory.

 

 

Health Centre

Application Fee

Registration Fee

Annual License Fee

Ksh 1,000

Ksh 5,000

Ksh 10,000

6. Medical Centre

A consortium of facilities and practitioners offering different services in one location.

 

 

Medical Centre

Application Fee

Registration Fee

Annual License Fee

Ksh 1,000

Ksh 5,000

Ksh 10,000

7. Nursing Home

A residential facility for persons with chronic illness which has:

  • Theatre
  • Mortuary

 

 

Nursing Home

Application Fee

Registration Fee

Annual License Fee

Ksh 1,000

Ksh 10,000

Ksh 20,000

8. Maternity Home

Reception of pregnant women or of women immediately after childbirth and for antenatal services.

 

 

​​ Maternity Home

Application Fee

Registration Fee

Annual License Fee

Ksh 1,000

Ksh 10,000

Ksh 20,000

9. Funeral Home (standalone)

A facility where dead bodies are stored and undergo autopsy before cremation/ burial; may provide additional services including:

  • Selling coffins
  • Cremation
  • Burial
  • Transportation, among others

 

 

Funeral Home

Application Fee

Registration Fee

Annual License Fee

Ksh 1,000

Ksh 10,000

Ksh 20,000

10. Level 3 Mission Hospital

A Faith Based Organization (FB0) which has:

  • 50-100 inpatient beds
  • An operating theatre
  • Mortuary
  • Radiology unit with X-Ray
  • Resident medical practitioners or dentists

 

 

Level 3 Mission Hospital

Application Fee

Registration Fee

Annual License Fee

Ksh 1,000

Ksh 10,000

Ksh 20,000

11. Level 4 Mission Hospital

A Faith Based Organization (FB0) which has:

  • 100 and above inpatient beds
  • An operating theatre
  • Mortuary
  • Radiology unit with X-Ray
  • Resident medical practitioners or dentists

 

 

Level 4 Mission Hospital

Application Fee

Registration Fee

Annual License Fee

Ksh 1,000

Ksh 10,000

Ksh 20,000

12. Level 4 Hospital

An institution which has:

  • 50-100 inpatient beds
  • An operating theatre
  • Mortuary
  • Radiology unit with X-Ray
  • Resident medical practitioners or dentists

 

 

Level 4 Hospital

Application Fee

Registration Fee

Annual License Fee

Ksh 1,000

Ksh 20,000

Ksh 50,000

13. Level 5 Hospital

An institution which has:

  • 100-150 inpatient beds
  • An operating theatre
  • Mortuary
  • Intensive Care Unit
  • Radiology unit with X-Ray
  • Resident medical practitioners or dentists

 

 

Level 5 Hospital

Application Fee

Registration Fee

Annual License Fee

Ksh 1,000

Ksh 30,000

Ksh 80,000

14. Level 6 Hospital

An institution which has:

  • 150 and above inpatient beds
  • An operating theatre
  • Mortuary
  • Intensive Care Unit
  • Radiology unit with X-Ray
  • Resident medical practitioners or dentists

 

 

Level 6 Hospital

Application Fee

Registration Fee

Annual License Fee

Ksh 1,000

Ksh 30,000

Ksh 100,000

15. Inspection and accreditation of a medical or dental school

An institution which intends to train medical practitioners and dental practitioners.

 

 

Inspection and accreditation of a medical or dental school

Application Fee

Registration Fee

Annual License Fee

Ksh 15,000

Ksh 50,000

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