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Meta Rolls Out Revenue-Sharing Features for Kenyan Creators

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Meta Rolls Out Revenue-Sharing Features for Kenyan Creators

Meta, the owner of Facebook, has introduced features that allow content creators in Kenya to make money off short-form videos with advertisements. This marks a key milestone for the creative industry in Kenya.

It announced two monetization options, in-stream ads that come before, during, or after videos on Facebook, and ads across Reels on Facebook and accompanying short videos. The rollout places Kenya among 11 other African countries, including Egypt, Nigeria, Rwanda, Ghana, and Seychelles, where Meta shares ad revenue with creators.

This extension will further allow the eligible creators in the vibrant creative Industry in Kenya to earn money, but raise the creativity bar for the rest of the world and give Meta’s family of apps the one-stop-shop stature for all creators,” noted Moon Baz, Global Partnerships Lead at Meta for Africa, Middle East, and Turkey.

The journey to get Meta’s monetisation features to Kenya began in March when Meta’s President of Global Affairs, Nick Clegg visited the country and met with President William Ruto. The rollout of monetization, that was earlier set to go live by June for both Facebook and Instagram, has only been announced to roll out for Facebook, leaving creators on the Instagram platform waiting.

For one to be eligible for the new program, creators must have a minimum of 5,000 followers on Facebook and over 60 000 minutes in total watch time during the past two months. The Communications Authority of Kenya reports that at least 52 percent of Kenyans above the age of 15 still use the Facebook social media platform. Other Meta platforms widely used in the country include WhatsApp, used by 48.5 percent, and Instagram, used by 11.5 percent of the population.

So far, only YouTube and X have shared ad revenues with creators in the country. The move by Meta is likely to be a key fillip for local content creators with new opportunities opening up for monetization and creative production on the platform.

Safaricom’s New Dealership Agreement Sparks Legal Battle

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Safaricom’s New Dealership Agreement Sparks Legal Battle

The latest dealership agreement by Safaricom, one of the leading telecommunication companies in Kenya, has been at the centre of controversy. The revised contract gives Safaricom the right to terminate an agreement with distributors without consultation. One of the largest dealers, Goodweek Inter-services Limited, does not like it and files a legal suit against the company.

Legal Row and Allegations

Goodweek Inter-services Limited moved to the High Court, alleging that Safaricom terminated its access to the dealer portal without notice. The dealer alleges that it is through this process that they were being arm-twisted into the new agreement whose terms are unjust, which had been refused by the dealer to sign. Arguing for the dealer, Ken Kiplagat told the High Court that the Safaricom move is targeted at arm-twisting them into compliance.

The new agreement has a highly contentious clause that gives Safaricom the mandate to unilaterally terminate or suspend dealership upon detecting a material breach, without any obligation to consult the affected dealers. Goodweek Inter-services has termed the clause illegal, arguing it threatens to collapse its business in which it has a substantial investment of Sh180 million with an employee capacity of over 200 people across the country.

Safaricom’s Defense

Opposing the case is Safaricom, represented by senior counsel Ahmednasir Abdullahi, who contends that the High Court has no jurisdiction to hear and determine the application, which in any event lacks merit. The company is asking the court to invoke the dispute resolution mechanism agreed in the agreement.

Justice Bahati Mwamuye has directed the two to file their submissions on the objection by Safaricom with the hearing spiced for September 18. Goodweek Inter-services has applied to the court to have its access to dealer portal reinstated arguing that their business operation inroves heavily on it.

Dealer’s Side

Goodweek Inter-services has been a key dealer and distributor of Safaricom products for over 20 years. According to the firm’s director, Mr. Salmon Ogwel, their distributorship began in 2022 and was going well until April 16, 2024, when Safaricom abruptly terminated their access. He claims this was a push to get them to sign a contract that basically had them at the whims of Safaricom.

Business Impact

He operates as the dealer establishing M-Pesa shops and also running Safaricom-branded buses, and vans in his business. The sudden deactivation of the portal led to colossal financial losses and brought the operations to a standstill. Mr. Ogwel said a March 14, 2024 meeting to discuss the new terms was inconclusive since the counter-proposals by the dealers were not put into consideration by Safaricom.

DTB Partners with Network International to Drive Digital Payment Innovation in Kenya

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DTB Partners with Network International to Drive Digital Payment Innovation in Kenya

Diamond Trust Bank has partnered with Network International to drive digital payment innovation in Kenya. Under this agreement, DTB will further its digital-first strategy with Network International’s state-of-the-art processing platform.

This partnership will empower DTB with the ability to offer a wide variety of products in debit, credit, and prepaid card solutions, in addition to fraud prevention through enhanced security measures and 3D Secure authentication.

According to Jamie Loden, COO at DTB, “Our collaboration with a market leader like Network International will give us the capability to meet the increasing demand from our customer base for new and better card and digital banking experiences that are convenient, safe, and seamless—ensuring customer delight..

The partnership will go a long way in spurring financial inclusion, as both DTB and Network International are keen on meeting the rising demand for digital banking services within the country. According to Dr. Reda Helal, the Group Managing Director at Network International, the potential of the partnership to serve the growing expectations of the new middle class, the youth, and SME market segments—in particular, the unbanked population—seeking services that give them a digital lifestyle and include them financially is great.

The deal is a major step toward transforming the look of banking in Kenya by offering customers sophisticated digital payment features that are imbued with robust security.

High Court Halts Progress on Maisha Namba Digital ID Cards

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High Court Halts Progress on Maisha Namba Digital ID Cards

The High Court has suspended any further roll-out of Kenya’s new digital identity cards popularly known as Maisha Namba until the determination of a suit filed by Haki na Sheria Initiative. Justice Lawrence Mugambi issued orders suspending the implementation of Maisha Namba, Maisha cards, and the Maisha Database on July 24, citing irreversible harm that may be occasioned to the people if the process is found to be unconstitutional by the court.

“Based on the latest information,” Judge Mugambi said, “the court is convinced that an order suspending any further or continued implementation of Maisha Namba, Maisha Card, and Maisha Database pending the hearing and determination of this application ought to be issued.”

It is on this basis that Haki na Sheria Initiative, in a letter dated August 24, 2022, raised its concerns with respect to a circular dated July 22 that declared the commencement of mass data collection, processing, and storage for Maisha Namba and enrollment into the Maisha Database. Accordingly, it provided for three modes of getting enrolled into the Maisha ecosystem:

  1. Issuing Maisha cards to newborns.
  2. Providing them to first-time ID applicants at 18 years old.
  3. Replacing lost IDs for adults with 2nd generation IDs.

It is on this basis that the petitioner seeks grounds for quashing the entire rollout of the Maisha ecosystem on grounds of a potential massive personal data breach and permanent exclusion of certain groups. Further to that, Haki na Sheria argues that the entire Maisha ecosystem has no safeguards with respect to the handling of personal data, thus exposing the public to a huge privacy risk.

“There’s a substantial risk of harm to the public and their right to privacy, publishing certain types of personal information without proposals on how the data will be protected,” say the petition documents.

Haki na Sheria further claims that the rollout may further accentuate existing inequalities in Kenyan citizenship. Children from minority and marginalized communities face barriers to obtaining birth certificates and citizenship documents, mainly due to inaccessible registration centers and a lengthy second vetting for parents and grandparents.

The same happens to double-registered individuals. Haki na Sheria warns that if the state proceeds with the Maisha Namba process, hundreds of thousands of people will be left in limbo—unable to acquire or replace their Maisha cards without a 2nd generation ID. This exclusion could impact access to government services, education, and healthcare.

Justice Mugambi has ordered the petitioner to serve the application on the Attorney General, CS Interior, Director General of Kenya Citizens and Foreign Nationals Management Service, Principal Registrar of Births and Deaths, and Principal Registrar of Persons, by July 26. Further directions are due September 17.

NETA Auto to Establish Electric Vehicle Assembly Plant in Kenya

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NETA Auto to Establish Electric Vehicle Assembly Plant in Kenya

Chinese NETA Auto is set to establish an assembly plant in Kenya as part of its grand strategy targeting more presence in the country, an Electric Vehicle maker from China called NETA Auto. This is after launching the first Flagship Store of NETA in Nairobi.

This was disclosed by Eric Lumallas, the assistant CEO of Moja EV Kenya. This was during the store’s launch earlier this month. Local assembly is expected to start in two months, with the assembly plant targeting 250 electric vehicles every month. Models such as the NETA AYA and NETA X are expected in the Kenyan market through this assembly facility.

Apart from the Kenyan expansion, NETA Auto has set a target to be present in 20 other countries, have up to 100 outlets, and sell more than 20,000 units per annum in Africa within three years. “By establishing a high-quality service network and providing consumers with excellent after-sales services, NETA Auto aims to become the leader of new energy car manufacturers in the region,” the company states.

Though the Kenyan and African market is still a long shot away from embracing electric mobility, efforts by the Kenyan government to entice electric vehicles through user-friendly policies could not be more encouraging. These policies are aimed at encouraging drivers and companies to switch to electric vehicles as a key road transport mode.

NETA Auto’s initiative to establish an assembly plant in Kenya will be very key to popularizing electric mobility in this region. This move is likely to highly contribute to the efforts being made by the country in embracing sustainable transport solutions that will help in cutting carbon emissions.

Kenyan Startups Raise Over $100 Million in Three Months

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Kenyan startups raised more than Kes12.83 billion in funding across 24 deals in the quarter ended June, driven by cleantech and fintech innovations that chalked funding and number of deals in dominance against the backdrop of the global decline of venture capital flows.

According to Briter Bridges, a global provider of market insights, except in March, since the beginning of the year, Kenya has always emerged the first in funding among key African markets. During the review quarter, it was closely followed by Benin, which benefited from $50 million in debt funding for two-wheeler manufacturing company Spiro, making it the second-placed country. South Africa took the third position with 22 deals valued at $49 million.

Notable during the period was M-Kopa’s commitment of a $51 million (Kes6.54 billion) loan from the U.S. International Development Finance Corporation (DFC). It is meant for improving digital connectivity by giving people affordable smartphones in underserved communities in Kenya. DFC Chief Executive Scott Nathan said he feels elated that the loan would fund M-Kopa’s digital initiatives.

M-Kopa, a clean energy solution provider, has diversified into the realm of financial services for unbanked millions across Africa. According to Briter Bridges, in general, the cleantech and mobility startups had a bias toward debt financing. This could be explained by the fact that those companies are associated with stable revenue streams and asset-backed models, which give security to the lenders.

While most of the deals across Africa were less than $1 million, Edtechs have attracted some investor eyeballs. Potential in use of Edtechs in driving access to quality education has garnered support from investors and accelerator programs such as the Mastercard Foundation Edtech Fellowship.

Despite the achievements, the total funding for startups in the three months to June 2024 fell back to pre-Covid levels, comparable to 2018 financing. Notably, no startups raised $100 million+ mega-rounds in Q2 2024 compared to four such transactions in Q2 2023.

For example, the funding of startups in Africa dropped considerably during the first half of 2024, closing with $780 million, as per Africa: The Big Deal, which is a staggering drop of 57 percent when compared with the exact period during the previous year. Transportation and Logistics took the biggest stake of funding at 28 percent, with Moove and Spiro making a big statement in the space. On the other hand, regarding the number of startups that raised $1 million or more, Fintech remained king.

However, the funding split was disproportionate for female-founded and –led startups, as 85% had no female founders whereas only 92% had companies with a male CEO.

Old Mutual Group and KICD Launch Online Financial Literacy Program for Kenyan Teachers

Tuvuti Editorial Team
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Old Mutual Group has partnered with KICD to roll out a pioneering online financial literacy program targeting junior and senior school teachers in Kenya. This is part of a bigger initiative through which to integrate financial literacy into the current Competency-Based Curriculum from pre-primary to senior school.

Addressing Financial Literacy Gaps

This presents a significant challenge for Kenya in regard to financial literacy since most citizens are not equipped with key skills for managing their financial resources. This has been further compounded by research that has established the value of early financial learning and that both highly engaging digital and non-digital resources can be beneficial in increasing the quality of teaching financial concepts.

According to the CEO of KICD, Prof. Charles Ong’ondo, Old Mutual Group has continued to be committed to the societal transformation agenda through investment in education. He indicated that the financial literacy program followed a very successful pilot phase where 120 junior secondary school teachers were trained in 36 schools from Uasin Gishu, Makueni, Laikipia, Siaya, and Kiambu counties. “The learning gaps identified during our pilot informed the extent to which financial literacy could be infused into other learning areas,” said Ong’ondo.

Improve Financial Literacy

Group Chief Executive Officer of Old Mutual, Arthur Oginga, underscored the integral part financial management skills play in a country’s growth and development. He noted that it would have to introduce financial literacy lessons at the school level, with a view to setting generations to come on the right path. “We are ready to work with all relevant partners to ensure we have a generation of financially sound minds,” noted Oginga.

Old Mutual has injected Kes25 million into the programme and achieved several milestones in the process, among them: integration matrices and guidelines in 2021; online orientation courses for financial literacy teachers in 2022; a pilot programme in 2023; a financial literacy toolkit for students in 2024. More Reach Through Digital Platforms
Junior school teachers can now enroll in the online program, with plans to include senior secondary school teachers from the year 2026. The training will be on Elimika, a cloud-based training platform offering capacity-building courses on all subjects under the sun.

He said the institution had developed a new online platform that was going to enhance the delivery of this curriculum on money matters. “We are glad to roll out this program that is going to empower all teachers in Kenya to teach financial literacy effectively,” he said.

Oginga indicated that the programme also dovetails with Old Mutual’s community investment strategy, which has a strong focus on financial education and literacy. Adding to this is the Old Mutual Lengo Education Plan, a long-term savings product offering life cover, emergency funding, bringing relief and tax benefits for the policyholder.

This collaboration between Old Mutual and KICD becomes very fundamental in delivering financial literacy to the youth in Kenya so they can be empowered with the knowledge and capability for their safety in financial terms.

Safaricom Shareholders Approve Kes48.08 Billion Dividend Payout for FY 2024

Tuvuti Editorial Team
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Safaricom shareholders have approved a final dividend payout of Kes0.65 per share, coming to Kes26.04 billion for the year ending March 31, 2024. With an interim dividend of Kes0.55 per share, or Kes22.04 billion already paid in March, this pushes the total dividend payout for the year to Kes1.20 per share, coming to Kes48.08 billion.

“During the financial year under review, the business showed great resilience in returning excellent growth in both our top and bottom lines. This has enabled us to achieve a major milestone—attaining, in our Kenyan business alone, earnings of more than $1 billion before tax and interest,” said CEO Peter Ndegwa. He added, “Safaricom is the first company in the Eastern Africa region to attain this landmark number.”

It is expected that dividend payment will be effective on or about August 31, 2024, to shareholders on the Register of Members as of close of business on July 31, 2024.

“I am encouraged by the resilience demonstrated to deliver a very strong set of financial results, which enabled us to pay a similar dividend to last year’s despite the startup losses in Ethiopia. This success is credited to a strong strategy execution, which again guided our decision to deliver for our shareholders, giving more value to our customers,” said Mr. Adil Khawaja, Chairman of the Board.

While Safaricom performed well from a financial perspective, the year remained difficult for Kenya and Ethiopia from an economic standpoint. High interest rates, high inflation, and currency volatility impacted disposable income and how business was conducted. Against this backdrop of stiff headwinds, the Company reaffirmed its commitment to generating value for shareholders by making optimal investments and exercising disciplined execution.

During the session, Safaricom shares closed trading at Kes15.55 at the Nairobi Securities Exchange, with a total turnover of Kes331.74 million shares.

Safaricom Group is accordingly well-placed for continued growth in both the short, medium, and long term. The company forecasts breaking even in Ethiopia by the end of the fourth year of operations. Its new vision and strategy will be the drivers for growth in Kenya as it works towards becoming the leading technology company in Africa by 2030.

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