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Safaricom’s Mali Unit Trust Scheme Sees Impressive Growth Amid Licensing Wait

Tuvuti Editorial Team
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Safaricom’s Mali Unit Trust Scheme Sees Impressive Growth Amid Licensing Wait

Assets under the management of Safaricom’s Mali unit trust scheme have jumped to KSh 2.3 billion in the first half of 2024. This is a major uplift from the KSh 1.4 billion that was recorded as of the end of December 2023. The fund has, however, remained closed to new investors pending necessary licensing by regulators.

Unit Trust: A type of collective investment scheme in the professional managers of funds who invest the money into bonds and stocks amongst other assets. The sum of money pooled in the fund is divided into units that the investors can buy to achieve a diversified portfolio of investments like mortgages and securities, as well as cash equivalents.

Mali’s Status of Operation: Currently, Mali is a closed fund. This is because the full license from the fund manager came late. Mali’s operationalisation took place after its launch as a pilot, and since then, it has been trying to digest the input of existing investors instead of bringing on board more. Safaricom currently works on getting the full license that would enable them to aggressively market it while hiring more fund managers to use administrators in the market.

Growth in Assets: Genghis Capital, which started managing the Mali fund in 2019, said that the African nation added KSh 900 million to the portfolio in the six months to June 2024. The largest chunk of the asset is held in fixed deposits at KSh 1.3 billion, followed by government securities at KSh 585.1 million, and call deposits at KSh 412.2 million. The fund has smaller exposures to bank and cash balances, corporate bonds, and other investments.

Financial Performance: For the six-month period, Mali booked KSh 115.5 million in profit and a total income of KSh 138.9 million. This includes a KSh 12.7 million gain from the fair value of other investments. During this period, operating and administrative expenses were KSh 23.3 million.

Competitive Landscape: With Safaricom gearing towards turning Mali into a duly licensed collective investment scheme, competition among fund managers is set to increase. The fact that Mali is backed by Safaricom means that it will immediately emerge as a competitor to established players like CIC, NCBA, Britam, Sanlam, and ICEA. So far, the CMA has approved 36 schemes comprising 150 funds, with money market funds being the most popular category.

Over Half of Jumia Kenya’s Enterprises Are Female-Owned, UNCTAD Highlights E-Commerce’s Role

Tuvuti Editorial Team
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Over Half of Jumia Kenya’s Enterprises Are Female-Owned, UNCTAD Highlights E-Commerce’s Role

Over half of all enterprises listed on Jumia, Kenya’s leading e-commerce platform, are owned by female founders puts into light the key role of e-commerce in empowering women entrepreneurs. Online platforms, says a recent digital economy report by the United Nations Conference on Trade and Development, continue to break down barriers that have long inhibited women’s participation in trade-a lack of access to finance, high costs of entry, and male-dominated distribution networks.

While these advances are important, UNCTAD warns that e-commerce dividends must be viewed in the context of asymmetric digital readiness. The report highlights that future e-commerce prospects, particularly for developing countries and LDCs, depend on appropriate policy interventions that address the digital gap.

In this regard, UNCTAD was working with governments all over the world, as well as through the “e-Trade for all” initiative, to develop conducive environments where firms of all sizes could have access to national and international markets, cut their trade costs, and enhance efficiency by competition.

In an earlier report, the International Finance Corporation outlined the economic opportunity of bridging gender gaps in e-commerce, estimating that near $15 billion could be added to Africa’s e-commerce industry between 2025 and 2030 by doing so. However, it also cited challenges faced by women in the sector, as female-owned enterprises reported a decline of 39 percent in sales during the Covid-19 pandemic, while male-owned ones witnessed an increase of 28 percent.

Some of the inequalities against which the IFC recommends that e-commerce companies direct their training include targeting women-owned enterprises, better participation of women in high-value sectors such as electronics, and using emerging fintech solutions, which, for the time being, women use less than men.

Bolt Increases Ride Charges Amid Driver Protests

Tuvuti Editorial Team
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Bolt Increases Ride Charges Amid Driver Protests

The ride-hailing firm Bolt increased its ride prices, including the minimum charge, a week after Uber moved in the same direction. This move follows several months of pressure from drivers who started protesting the low prices by setting their rates in recent weeks.

Bolt on Monday announced a base fare increase of 10% in all its ride categories. For instance, the base fare for the Economy category will increase from Sh200 to Sh220. The company said it is raising driver earnings, after continuous consultative sessions with drivers on the fairness of ride-hailing firms’ pricing mechanisms.

Drivers have complained of the unfairness in the pricing formula used in the industry. Protests by the drivers in the country saw some setting rates higher than what customers were charged on the apps, an issue which caused public outcry for firms like Bolt and Uber to increase their prices.

Last week, Uber also announced a 10% increase in its prices, including an increase in the minimum fare for its ‘Uber Chap Chap’ product. While it maintained that the decision wasn’t entirely influenced by protests from the drivers, Uber has acknowledged that the feedback played a role.

Linda Ndungu, the General Manager for rides at Bolt, maintained that the price adjustment reflects value for the drivers on the platform and seeks to ensure that they make a decent wage. Little, another ride-hailing firm, has also increased its minimum fare. The economy category at Little has gone up by Sh150.

Uber Kenya Increases Fare Amidst Driver Protests: What Passengers Need to Know

Tuvuti Editorial Team
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Uber Kenya Increases Fare Amidst Driver Protests: What Passengers Need to Know

Uber Kenya has announced an increase of 10% in all its ride charges, setting a minimum fare price, following months of protests by irate drivers. The drivers had sometimes resorted to quoting their own prices, which prompted several unplanned discrepancies between the fare suggestions on the app and what passengers actually paid.

The increase in prices cuts across all products, and the minimum fare for Uber Chap Chap is now KSh 220, up from KSh 200. All the same, Uber has been very careful to maintain secrecy regarding changes in other products’ fares. According to Imran Manji, Uber’s head of East Africa, the move was guided by data findings and decisions from drivers rather than as a direct cause following protests.

The dynamic pricing model of Uber has been taken as controversial, taking into account the distance and time. Drivers have prepared fare guides on their own and displayed them in the car. This act has created fear with the passengers who are getting inconsistent prices.

In response, Uber has started calling its customers, requesting them to share experiences where drivers charge more than the fare reflected on the mobile phone application. On this note, the company will have to maintain the stance of an “economic balance” at the increments of fares to meet the demands put forward by the drivers while simultaneously ensuring that its services are affordable to price-sensitive customers in Kenya.

Currently, Uber has over 20,000 drivers partnered on the platform together with numerous products that aim at providing most of the needs, meaning that the company’s problem is maintaining profitability and satisfaction levels with customers while managing the compensation and service provision effectively on the side of the drivers.

Safaricom Introduces Fee for Frequent Use of Reverse Call Service

Tuvuti Editorial Team
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Safaricom Introduces Fee for Frequent Use of Reverse Call Service

Safaricom has introduced an update regarding its reverse call service, which it explained that a customer will now be charged if they request the service for more than the second time in one day. This is a shift from previous mode, where the customer could make unlimited reverse calls for free. Under the new terms and conditions expected to take effect immediately, just the first two requests for a reverse call within a day will be free.

Under the new amendments to the policy, any other attempt to reverse call on the same day will attract a fee of Ksh 0.5. Safaricom said this was in a bid to try and put the breaks on the abuse of the service by users. It is clear some people just don’t care, even if they have enough airtime.

“This service will be free to the initiator of the reverse call for up to two requests in a day. Subsequent reverse call requests made within the day (after the first two requests) will be charged an access fee of Ksh. 0.5 per reverse call request,” the company clarified.

The reverse call service will be applicable on calls within the Safaricom network. Safaricom is credited with being the first to launch the reverse call service, which initially launched the “Please Call Me” feature in its system back in June 2019. In other words, to use Safaricom’s reverse call service, the user should dial the number by inserting the symbol ‘#’ before dialing the number of the person being called, for example, #0722000000.

The change reflects how Safaricom keeps managing service usage while keeping it accessible and efficient for genuine use by reverse call features.

Glovo Launches Relief Fund to Support Couriers Affected by Floods in Kenya

Tuvuti Editorial Team
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Glovo Launches Relief Fund to Support Couriers Affected by Floods in Kenya

Glovo has embarked on a countrywide initiative to help couriers whose livelihoods were destroyed in the recent floods in parts of Kenya. It has so far given out more than Sh500,000 as part of a Crisis Relief Fund. The fund is purposed to assist couriers financially who had losses from the harsh weather.

The couriers applied for aid by describing how the floods had affected them and their livelihoods. Depending on how big the losses that were reported were, Glovo would therefore help them attend to their most immediate needs, whether fixing property or replacing essential items damaged.

“At Glovo, we recognize that couriers are the backbone of our operations. We, at Glovo, value the couriers highly since they are the ones through whose efforts, coupled with hard work and dedication, we are able to deliver what our customers need”, said Caroline Mutuku, General Manager of Kenya at Glovo.

This fund goes to act as insurance during this period of the flood, thus underpinning Glovo’s commitment to ensuring that couriers can continue working. It reiterated Glovo’s commitment to creating a positive effect on the economic and social welfare of the couriers in light of this crisis.

The Crisis Relief Fund serves to show how Glovo is really impacting change in the lives of couriers and within the communities we operate, according to Daphne Kabeberi, impact and sustainability lead at Glovo for Africa. “We know how hard things have been lately for our couriers, and with this initiative, we wish to help them rebuild and recover.”.

The representatives of Glovo underlined that funds had been allocated flexibly, providing the possibility for couriers to satisfy their needs after the floods. The initiative is part of Glovo’s wide-ranging commitment to sustainability and supporting the communities within its operational ecosystem.

AI Adoption and Data Privacy: The Dilemma for Tech Manufacturers

Tuvuti Editorial Team
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AI Adoption and Data Privacy: The Dilemma for Tech Manufacturers

Artificial intelligence is the future of technology and is putting device manufacturers in a very tight corner. As much as AI brings many conveniences to the users of devices, concerns over personal data protection result in stricter privacy laws. These more stringent laws are forcing companies to step back and re-evaluate their ways of collecting, storing, and using data.

Innovation vs. Privacy

One must find a fine line between leveraging AI and ensuring compliance with privacy regulations, says Anthony Hutia, head of the mobile experience division at Samsung East Africa. At the launch of Samsung’s premium brand shop in Nairobi, Hutia said companies now have to reassess the minimum amount of personal data required by devices such as smartphones.

“It’s a tricky time where we have to balance. You want all this stuff done for you, and it requires that data to do it. So how else will you be able to identify that device, its user and balance all that to synchronize it together?” said Hutia.

The Rise of Environmental and Social Governance in Tech

Hutia also underscored that ESG is ever more important in the shaping of the future of tech devices. Among the notable ones is the global effort toward cutting down electronic waste. For instance, the EU will introduce its universal charger policy in 2024, which would require most electronics to be fitted in a USB-C port. This move is aimed at reducing e-waste—one of the fastest-growing waste streams in the world.

Taming E-Waste, Promoting Sustainable Ways

Manufacturers in Kenya have embraced trade-in schemes that allow customers to upgrade by releasing their old smartphones when buying new ones. This helps in reducing the number of idle devices and helps in sustainability. Hutia pointed out that high-end and flagship devices lead in trade-ins, reflecting the rising consumer interest in upgrading while contributing to environmental conservation.

Along with that, manufacturers will need to face the intricacies of the data privacy laws and environmental responsibilities as AI in tech devices becomes pervasive. The future of technology will be defined as a balance between innovation, privacy, and sustainability—themes of the future in which companies like Samsung will play a leading role while adjusting to these constantly evolving challenges.

Nairobi Ride-Hailing Dispute: Customers Frustrated Over Drivers Charging Above App-Calculated Fares

Tuvuti Editorial Team
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Nairobi Ride-Hailing Dispute: Customers Frustrated Over Drivers Charging Above App-Calculated Fares

Recent complaints from customers using ride hailing apps reveal refusal to accept drivers demanding 1.5 times above fares calculated by apps. This comes after a notice from a union representing Nairobi Online Drivers declaring that customers would no longer be charged rates listed by the platforms.

The dispute followed a one-week strike earlier this month by drivers associated with Uber, Bolt, Faras, and Little, who were protesting against what they termed “exploitative rates.” However, the strike wasn’t successful since some drivers opted to continue working by taking advantage of the fact that there are higher surge prices during the slowdown.

Why Customers Are Complaining

Many customers took to social media to air their dissatisfaction at the unexpected hikes in fares. These customers complain either of being blindsided by additional charges at the end of their trips or of drivers refusing card payments.

One frustrated user commented on X, formerly Twitter, “If they don’t like working with the app companies then ship out and leave a few who are comfortable working with mobile taxi companies. Trouble started when too many cab drivers joined taxi hailing companies.

Another user sympathized with the drivers over their economic hardship but reasoned why they were using the app to get customers and at the same time imposing their own price. Others retaliated by giving them one-star reviews, with some others even promising to stop using the platforms.

Uber has stated that the situation is unacceptable, as the drivers are violating the rules set by the platform. While not mentioning what they will do, for some drivers, deregistration may be a possibility. Also, maybe in the long term, they might negotiate with the drivers to come up with solutions.

Why Some Customers Don’t Mind It

Some customers have, on the other hand, sided with the drivers, accusing the ride-hailing platforms of having a blind eye toward the drivers who suffer in their plight. They argue that the rates set by companies are too low for drivers to at least cover their expenses and earn a reasonable livelihood.

One sympathetic customer noted, “Those rates are very realistic. Honestly, I don’t understand how they have been surviving and paying loans considering that companies take 70% of what you pay. I have always topped up without anyone asking because I understand how a car works.

Others have pointed out the broader issues that drivers face, including poor working conditions and a lack of regulation, suggesting the current row is a symptom of all these problems that have been ongoing.

Ride-Hailing Companies’ Comment

Ride-hailing companies have responded by reassuring that they are committed to having fair pricing structures. Uber sent an email to customers requesting them to report cases where drivers are demanding extra money besides what is being calculated on the app saying it contravenes their Community Guidelines.

“Our drivers are fairly paid, and we have a very well-set pricing structure that meets their expectation and needs. It therefore ensures at no point in time are our riders affected. It’s a Kenyan app designed for Kenyan drivers and Kenyan riders,” Little CEO, Kamal Budhabhatti said.

Friction has only increased in the air as drivers feel underpaid and riders are irritated by skyrocketing fare prices. The situation is unresolved because the debate on the future of ride-hailing teeters between both parties, hoping to have that which they need.

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