Overview

Over 600,000 users of ‘Pochi La Biashara’ payment service can now access small loans at a flat one-off access fee of 2.76 percent of the total loan amount following a deal inked by Safaricom and Fintech firm Pezesha.

Target Group

The new loan service caters to informal business owners who may not otherwise access loans from the banks and other micro-finance institutions due to lack of a collateral. With Mkopo Wa Pochi, small business owners will be able to borrow money directly and from the convenience of their M-Pesa business accounts, allowing them to differentiate between money meant for business and for personal use.

Credit Management

Pezesha’s vast experience in credit management will be instrumental during the evaluation of the credit history of the borrowers, through the credit bureaus, to ensure that defaulters have their names listed and are denied future loans. “Loans advanced shall be subject to a tenor of seven days and a maximum rollover period of fourteen days during which a roll over fee equivalent to 3.85% for the fourteen days shall be charged. You may only roll over the loan once,” Safaricom says in its terms and conditions.

Customers can either pay in instalments or pay in full before the due date of the repayment of the loan. Customers are also advised that if by the due date the loan will not have been repaid, deductions from the wallet will be automatically executed.

Pezesha Funding and Partnership

In May this year, Pezesha received US$ 500,000 from the Development Finance Corporation to improve its credit-scoring technology. This transaction will act as a seal of approval to boost the company’s standing in the credit management market, in which it has already touched over 50,000 MSMEs.

Comparative Analysis With Other Services

In addition to M-Shwari and Fuliza, Safaricom’s ‘Mkopo Wa Pochi’ is another credit facility that has been instrumental in providing urgent short loans to its clients. The success in this business has made a number of loaning applications get into the market; banks have incorporated applications that allow their customers to borrow short-term loans. Most of these small business owners do not require large volumes of capital, since they would struggle to refund such amounts. Short loans are also mostly preferred by them; these are easily refundable and more convenient as they permit the businessman to stock his enterprise within the shortest time possible. It is also true that technology advancement, coupled with the increased penetration of mobile phones, has made these loans lucrative and viable to earners.

Challenges and Perceptions

However, defaulting these loans has been a headache for its providers since 2020. Many customers have also regarded short loan apps and services as ‘stressful inconveniences’ that they could do without, hence they would opt out. But short loan platforms have maintained their services are only useful with business, and not personal, household needs.

The country is witnessing a state of digital transformation, largely powered by locally assembled smartphones, with 390,000 devices sold since the October last year, the initiative was intended to bridge the technology gap by easing access to digital services.

The Rise of Locally Assembled Smartphones

Information, Communications, and the Digital Economy Cabinet Secretary Eliud Owalo has hailed the milestones so far made in the production of affordable smartphones locally. Owalo said this while speaking during the launch of the Jitume Project at Seme Technical and Vocational College in Kisumu County, rooting for accessible and affordable technology that would help bridge the digital divide.

Many Kenyans still lack access to a smartphone. In contact with the private sector, the government has initiated the local assembly of affordable Kenyan smartphones. This means that we won’t need to import phones from places like China or Korea, said Owalo.

The Neon Brand: Accessible and Affordable

The Neon brand handset which is locally assembled and retailing at Sh7,499 per unit, is now available in all Safaricom branches and Jamii Telecom shops countrywide. The handsets are designed to give pertinent features that would allow one to access government services conveniently from anywhere.

“These smartphones come with all essential features, allowing users to access government services conveniently from anywhere. There will no longer be a need to visit government offices in person,” Owalo added.

Digital Transformation and Government Services

The Kenyan government, under the leadership of the administration of the Kenya Kwanza, leads a digital transformation to ensure efficient and effective service delivery of government services. Owalo assured this would eliminate the need for personal connections in having such services.

“This shall be a direct interaction between you as a Kenyan and your phone and the government. You won’t require to know anyone in any government office to access these services. You will be able to apply for an ID or a passport virtually,” he explained.

Bigger Digital Infrastructure

The government has teamed up with the Kenya Power Company in an effort to support the agenda for digital transformation by further expanding fibre connectivity, ensuring reliable and long-term ability to sustainably connect with the Internet anywhere across the country. As of January 2023, about 11,000 kilometres of fibre optic cables were laid out, with the projection to attain 100,000 kilometres by 2026.

“We are dumping the old method of laying fibre cables underground, which has been vulnerable to acts of vandalism. This time, we shall ride on Kenya Power’s transmission lines,” said Owalo. Kenya Power has hired 300 contractors, spread in equal number throughout the country that have started on this vast undertaking.

Buildout

The plan is that fibre connectivity will be extended to all existing transformers that number 74,000 countrywide. In a short and long-term move, this will see institutions and public places such as market centres within the surroundings where the transformers are located get Internet connections.

“We will extend fibre connectivity to all existing 74,000 transformers. Once fibre is connected to these transformers, we can provide internet access to nearby institutions and public spaces such as market centres”, the CS noted.

Further, Owalo confirmed the ongoing of the last mile electricity connectivity project to ensure sufficient electricity supply which supports the digital infrastructure.

A productive and successful business doesn’t run itself. While sound strategies and robust processes are vital, it’s a company’s employees that truly drive results. That’s why ensuring high morale should be a top priority for any manager.

Low morale affects more than just attitudes – it impacts the bottom line. Disengaged workers are less motivated, miss more days, and produce lower quality work. This leads to mistakes, missed deadlines, higher turnover, and even loss of customers. The costs quickly add up. Studies show that actively disengaged employees cost the economy around £340 billion per year!

On the other hand, high employee morale boosts productivity, innovation, and loyalty. Workers who feel positively about their jobs give more effort, provide better customer service, and collaborate effectively with colleagues. This directly contributes to meeting targets and increasing profits.

So, what are some key tactics managers can use to maintain strong morale?

Encourage Open Communication

Make sure there are open channels for providing feedback, discussing concerns, and keeping workers informed. Hold regular team meetings and one-on-one chats. Be transparent about company news, plans, and decisions. Encourage employees to ask questions and share their viewpoints. This shows you value their input.

Recognise and Reward

Notice people’s contributions and hard work by praising their efforts. Send personal thank you notes when they go above-and-beyond. Celebrate wins and milestones with team lunches or fun outings. Offer incentives like gift cards, extra time off, or public shoutouts. Even small rewards make employees feel appreciated.

Promote Collaboration

Create opportunities for colleagues to work together. Assign team projects, have brainstorming sessions, or set up mentor programmes. Collaborative efforts allow employees to support each other, develop relationships, and feel part of something bigger. Make sure to celebrate group accomplishments too.

Support Work-Life Balance

Respect employees’ personal lives by allowing flexible schedules when possible. Discourage overtime and encourage people to take holidays and sick days when needed. Show you care about more than just productivity targets. A good work-life balance reduces stress and helps morale.

Listen and Take Action

Solicit honest feedback through surveys, meetings, or your open door policy. Then show you take concerns seriously by making improvements. Whether it’s providing new training, updating equipment, or revising policies, take action to address issues. Employees will see you’re committed to making positive changes.

Work with an Expert

If morale is low, it pays to work with a consultant like The Happy Business School to boost workplace happiness; they will help you create a more employee-centric culture where people thrive. An expert can provide useful insights into what’s going wrong, plus put together a bespoke programme that will make the difference you need to ensure your employees, teams, and leaders are all on the same page.

While boosting morale requires effort, the rewards for your business make it well worth it. Employees who feel positive, valued, and engaged deliver results. So, put these tips into action, and watch productivity and morale steadily rise together. By investing in your people, you ultimately invest in your organisation’s success.

Multinational technology company Opera Software Ireland Limited has been directed by the Competition Authority of Kenya (CAK) to unblock Odibets, a local betting firm, and restore access to its gamblers after it emerged that Opera had been undermining the firm by financially starving it of business from members of the public.

Context and Implications

This is happening amidst a raft of stringent regulatory measures on advertising and access to betting sites in Kenya. The CAK’s order is meant to cushion Odibets from financial losses occasioned by Opera’s activities and to encourage a level playing ground in the battle for market share among betting companies.

CAK’s Directive

The order by CAK states: “Opera Software Ireland Limited is hereby directed forthwith to cease causing and desist from causing Odibets financial loss by locking out Odibets from accessing its browser and redirecting its clientele to other betting sites”.

The order of direction shall operate pending completion of the ongoing investigations on the dispute pitting Odibets against Opera.

Background of the Issue

It is reported that Opera has been blocking access to Odibets and redirecting users to rival sites, which has significantly affected the business operation of Odibets. This caught the attention of the CAK, which aims to ensure that all firms work under the same rules of fair competition.

High Court Ruling and BCLB Regulations

Earlier in the year, the High Court had directed the Betting and Licensing Control Board (BCLB) to stop the use of speed dial by betting firms to market online. The BCLB had initially warned against the trend in advertisements, citing that it brought about harm to the vulnerable internet users, key among them being the minors.

Odibets and the Betting Industry

Odibets, under Kareco Holdings Limited, is among the 128 betting companies fighting for a share of the billions of shillings in the lucrative gambling market in Kenya. The sector has seen enormous growth in Kenya and remains among the most competitive, even with the increased taxation. Kenyan gamblers placed bets worth Sh620.97 billion between 2018 and 2022, indicative of the sector’s quick growth.

Opera’s User Base in Kenya

With an estimated 13.5 million Kenyan users, mostly people with feature phones, Opera is a platform likely to greatly influence the dynamics in the market regarding the betting industry.