Monthly Archive for January, 2009

Nakumatt.net is a failure in Internet Crisis Communications.

I am appalled. Nakumatt Holdings, the behemoth that is one of East Africa’s largest retail businesses has failed to have internet crisis communications via its web site. It is now 3 days since the Nakumatt Downtown fire tragedy that now has a confirmed death toll of approximately 40 people. However, the Nakumatt Holdings web site at http://www.nakumatt.net has no information whatsoever on the Nakumatt Downtown fire.

In the age of the Internet, for a large business boasting a market presence throughout the EastAfrica, it goes to show that internet-based corporate communications is simply not a priority. Therefore, as a result, Kenyan blogs, including this one, are alight with posts and comments on the Nakumatt Downtown fire. Bloggers and their Readers are in effect shaping the online conversation on the issue and determining perception and opinion on the Internet front with no counter-communications coming from Nakumatt Holdings.

Meanwhile, Nakumatt Holdings is not using the internet as its most  global channel to drive the communications around this crisis. In the process, the Nakumatt brand, even in markets where it does not operate, is being eroded like the very fire that burnt Nakumatt Downtown. This blog had its highest traffic spike ever on the Nakumatt Downtown fire post I made 2 days ago and was even ranked higher than the Daily Nation or the East African Standard at one point for relevant searches on Google. This goes to show that Kenyans are online and Kenyan businesses need to use their Internet presence as a key channel of their overall communications strategy.

GTV goes off the air.

GTV, the satellite television service operated by Gateway Broadcast Service stopped broadcasting yesterday the 30th January 20o9.

GTV is notable for the fact that it secured the rights to broadcast over 80% of the English Premier League games almost in August 2007 when they launched their services in Africa. GTV’s aim had been to become the preferred satellite television broadcaster across Africa and in doing so give stiff competition to DSTV, the satellite service operated by Multichoice of South Africa. GTV’s securing rights to broadcast more top games of the hugely popular English Premier League than DSTV saw many subscribers sign-up for the service throughout Africa.

At the time of going out of business, GTV had amassed an impressive 100,000+ subscribers from its operating markets in Africa and had a target of securing over 250,000 by the end of 2009. Although the GTV roll-out had already seen investments exceeding US$ 200 million, and had more than another US$ 100 million confirmed for future investments, the company was adversely affected by the current global economic downturn. GTV was unable to secure any additional funding from its global investors.

GTV’s demise is a real shocker since they had become well established leader in Africa’s satellite television business with good prospects for the future. It could also be a strong indicator of more of what we can expect in the coming year(s) in what is fast becoming one of the worst global financial crises that the world has ever seen. The lesson to start-up businesses in the current economic climate would appear to be focussing on sound business operations that can rely on organically grown revenues rather than needing to borrow loans and equity funding. Its a whole new business world out there!

Nakumatt Downtown fire death toll cofirmed at 20.

As reported in an earlier post this week, I was wondering if there we’re any casualties in the Nakumatt Downtown fire a couple of days back. Details are now emerging in the media that the death toll is now a confirmed 20 with numbers expected to rise to possibly forty or more. This really bad considering that Nakumatt Holdings had initially reported that there we’re no confirmed casualties and they had only 4 members of staff missing after doing a head count.

It has also been reported that many friends and family received phone calls from those who died in the fire just before either they suffocated from smoke inhalation or we’re burnt alive. It is truly a horrific case of gross negligence on the part of Nakumatt Holdings since not only did they initially close their doors when the fire started to stop looters from coming in, but apparently, the emergency exit routes we’re also blocked and could not be accessed! Nakumatt Holdings, the owners of Nakumatt Downtown need to be taken to task on what appears to be a case of profit at the cost of basic human rights.

Finally, as of this writing, Nakumatt Holdings has finally made a media briefing on the calamity and what their intended next steps – we’ll just have to wait and see what happens next. One thing is certain though after this terrible incident, people are going to pay special attention when shopping and take a much closer look at general safety measures that either are or are not in place.

God bless the victims and families of the Nakumatt Downtown fire tragedy.

Nakumatt Downtown on Fire

Just got back from the Nairobi  city centre where the Nakumatt Down Town branch caught fire sometime this afternoon. A good portion of the city centre is covered in smoke and we could hear the gas cylinders exploding in the fire. The part of the city where Nakumatt Down Town is located had also been cordoned off by the police and many people were standing in the streets trying to get a glipmse of what was happening. There was also a police helicopter circling the city centre and lots of ambulances going in an out of the city centre. I don’t have much information that but it looked very serious from where I was and I hope no one was harmed in the fire.

Kenya Red Cross Kes. 1.8 Billion Famine Appeal needs the Internet.

It was announced yesterday evening that the Kenya Media Owners Association (KMOA) and the Kenya Red Cross Society (KRCS) are partnering to raise Kes. 1.8 Billion for the famine that is currently ravaging the country. The initiative is part of the Kes. 32 Billion famine appeal that President Mwai Kibaki launched approximately two weeks ago to the world at large. This is a really great initiative and the KMOA members will use their media channels to highlight the plight of approximately 10 million Kenyans suffering from hunger due to the famine, thereby prompting individuals and organizations to make donations.

However, I am a little concerned about the reach of this initiative if the Internet is NOT used as aggressively as it needs to be. The initiative needs to tap into the Kenyan Diaspora and other International supporters to leverage e-donations as a cornerstone for its success. In addition, borrowing from the Barack Obama 2008 election playbook, the initiative needs to leverage as much “word-of-mouse” as possible using  social networks such as Facebook, MySpace and Twitter to bring in as much global support as possible. I am only making these remarks since the target of Kes. 1.8 Billion is nothing less than HUGE and traditional media may not be sufficient to reach this goal.

Kenyans on the edge for Obama’s Inauguration.

Today is undoubtedly the BIG day! Barack Obama will be inaugurated as the 44th President of the United States of America at approximately 20.30 Hours Kenyan time this Tuesday the 20th January 2009.

All across Kenya, Radio and Television Stations will be broadcasting live coverage of the inauguration. Lots and lots of bars, restaurants and nightclubs across the country are expecting booming business tonight as patrons are expected to watch and celebrate the inauguration, no less with friends and family, as a monumental chapter in history unfolds. The atmosphere in Kenya is electric as Barack Obama, who most Kenyans see as one of their own, will be sworn in as the most powerful man in the world with a Kenyan name and heritage!

No matter what anyone says, hype and all, this is a really big deal for Kenya and one to be proud of, even if we never have another official “Obama Day” tomorrow as many Kenyans have been asking for, as was the case when Barack Obama won the Election on the 5th of November 2008.

Going forward, the big challenge will be for people to realise that Barack Obama, at the end of the day,  is a man who has a lot on his shoulders. There are so many expectations of him, even during the current challenging times afflicting the  entire world – his to-do list is indeed daunting. This is just the beginning – we wish Barack Obama all the best and welcome his leadership of the free world!

Safaricom’s M-Pesa under siege by Kenyan Banks.

Over the last few weeks, there has been lots of media coverage concerning Safaricom’s wildly popular M-Pesa service. M-Pesa is a mobile money transfer service that enables Safaricom subscribers to send and receive money to anyone of the mobile network. M-Pesa has been operational for just under two years and in December 2008 it signed up its 5th million user for the service.

Notably, M-Pesa has Banks in Kenya rattled as a result since many subscribers are now using their M-Pesa accounts as virtual bank accounts. M-Pesa, apart from being initially launched to serve the rural unbanked is now under siege since Kenya’s banking industry wants the service regulated by the Central Bank of Kenya as it has characteristics that make it quite similar to the functioning of an actual Bank – an audit of the service has already begun by the Government. M-Pesa is also substantially cheaper than other Money Transfer services in Kenya which most Banks offer.

My main concern is that M-Pesa probably represents one of the most innovative mobile services and there is a very real risk that if it comes under regulation and controls, it could lose the appeal that has made it so popular. In terms of where the Kenyan Banking Industry stands on the M-Pesa agenda, I am reminded of the following Charles Darwin Quotation:

“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.”

Its time for the Banks in Kenya to change and innovate their offerings in the marketplace if  they are to stay relevant to their current and prospective customers. M-Pesa is simply pointing the way to the future.

A week of scandalous revelations in Kenya.

It has been an interesting week in Kenya. I have just found out this evening that President Mwai Kibaki has made an appeal for Kes. 32 Billion (US$ 450 Million)  in emergency food aid for Kenya this year due to the current famine being experienced in parts of the country. More specifically, that is the amount of money required to feed the approximately 10 million Kenyans who are in dire need of food. However, ironically, it is now coming to light that a big part of the current food crisis has been due to corruption at the Ministry of Agriculture – it is estimated that over Kes. 2 Billion (US$ 26 Million) has been pilfered.

I am not sure how this happened exactly but there are a good number of challenges that will make this request for food aid a daunting task. Consider the fact that the world is currently experiencing a major financial crisis, the likes that have not been seen in many decades. At the same time, there is also a general global food crisis underway and even developed countries are struggling to feed their own – these are tough times indeed.

However, like I said earlier, its been an interesting week in Kenya. We have come to learn that the Government of Kenya will have a significant short-fall in meeting its financial budgets for the year with tax collections expected to drop significantly. At the same time, Kenyans are learning just how big the Triton Petroleum oil trading scandal is where an  estimated Kes. 8 Billion (US$ 100 Million) has been lost due to  corruption at the Kenya Pipeline Company – it is expected that the Kenyan Tax Payer will have to foot the bill for this one as reported in the Press.

It has also come to light that George Muhoho, the Kenya Airports Authority Managing Director, has been put on compulsory leave prior to the completion of his current employment contract that ends in 2 months. The reason for doing so is apprently due to questionable contract awards amounting to Kes. 1.7 Billion (US$ 22 Million) during his tenure that the Government’s efficiency monitoring unit audited.

We will also recall that Kenyan Members of Parliament refused to pay taxes last year even though they effectively represent the interests of the people of Kenya and should be setting an example,  especially in these trying times for most Kenyans. Then, of course, the icing on the cake! Kenya’s Foreign Ministry is sending a Kenyan delegation to the US to attend the Obama inauguration on Tuesday next week. However, here’s the thing, they have not been officially invited to the event by the US Government so they will be watching the inauguration, like most of the world will do, on TV (and in this case, probably in their expensive hotel rooms in the US!).

So, with all that has happened in Kenya this past week, I can only conclude that Kenyan leadership needs a reality check! They need to be thinking about the future and what it will look like for Kenya in the long haul. They need to move away from short-term and selfish gains to consider the impact of their actions  (and inaction’s) for future generations of Kenyans. In this respect, I am once again inspired by Barack Obama who will take the oath of office in a few days time as the most powerful leader of all in the free world – the President of the United States of America. President-Elect Barack Obama recently wrote an open letter to his daughters that was featured in Parade Magazine. I was moved and touched by what he had to say. I hope Kenyan leadership can see the sense of purpose that Barack Obama has that they too need to emulate, if only for the sake of their children, as this letter shows:

Dear Malia and Sasha,

I know that you’ve both had a lot of fun these last two years on the campaign trail, going to picnics and parades and state fairs, eating all sorts of junk food your mother and I probably shouldn’t have let you have. But I also know that it hasn’t always been easy for you and Mom, and that as excited as you both are about that new puppy, it doesn’t make up for all the time we’ve been apart. I know how much I’ve missed these past two years, and today I want to tell you a little more about why I decided to take our family on this journey.

When I was a young man, I thought life was all about me-about how I’d make my way in the world, become successful, and get the things I want. But then the two of you came into my world with all your curiosity and mischief and those smiles that never fail to fill my heart and light up my day. And suddenly, all my big plans for myself didn’t seem so important anymore. I soon found that the greatest joy in my life was the joy I saw in yours. And I realized that my own life wouldn’t count for much unless I was able to ensure that you had every opportunity for happiness and fulfillment in yours. In the end, girls, that’s why I ran for President: because of what I want for you and for every child in this nation.

I want all our children to go to schools worthy of their potential-schools that challenge them, inspire them, and instill in them a sense of wonder about the world around them. I want them to have the chance to go to college-even if their parents aren’t rich. And I want them to get good jobs: jobs that pay well and give them benefits like health care, jobs that let them spend time with their own kids and retire with dignity.

I want us to push the boundaries of discovery so that you’ll live to see new technologies and inventions that improve our lives and make our planet cleaner and safer. And I want us to push our own human boundaries to reach beyond the divides of race and region, gender and religion that keep us from seeing the best in each other.

Sometimes we have to send our young men and women into war and other dangerous situations to protect our country-but when we do, I want to make sure that it is only for a very good reason, that we try our best to settle our differences with others peacefully, and that we do everything possible to keep our servicemen and women safe. And I want every child to understand that the blessings these brave Americans fight for are not free-that with the great privilege of being a citizen of this nation comes great responsibility.

That was the lesson your grandmother tried to teach me when I was your age, reading me the opening lines of the Declaration of Independence and telling me about the men and women who marched for equality because they believed those words put to paper two centuries ago should mean something.

She helped me understand that America is great not because it is perfect but because it can always be made better-and that the unfinished work of perfecting our union falls to each of us. It’s a charge we pass on to our children, coming closer with each new generation to what we know America should be.

I hope both of you will take up that work, righting the wrongs that you see and working to give others the chances you’ve had. Not just because you have an obligation to give something back to this country that has given our family so much-although you do have that obligation. But because you have an obligation to yourself. Because it is only when you hitch your wagon to something larger than yourself that you will realize your true potential.

These are the things I want for you-to grow up in a world with no limits on your dreams and no achievements beyond your reach, and to grow into compassionate, committed women who will help build that world. And I want every child to have the same chances to learn and dream and grow and thrive that you girls have. That’s why I’ve taken our family on this great adventure.

I am so proud of both of you. I love you more than you can ever know. And I am grateful every day for your patience, poise, grace, and humor as we prepare to start our new life together in the White House.

Love, Dad

Formula One’s Alonso in Malindi Airport Private Jet Mishap.

I just found out that former two-time Formula One World Champion Fernando Alonso was involved in a minor private jet accident at the Malindi Airport this weekend. Alonso had been vacationing at the Lion in Sun Resort which is owned by his Renault Formula One Team Boss, Flavio Britore.

The accident happened this Monday when Alonso and his family we’re getting ready to take-off from the Malindi airport when one of their wings touched a warehouse wall. The damage caused by the accident was minor and no one was hurt. The incident could have been worse but that did not stop the international media including the Formula One web site from picking up the story.

As a huge fan of  Formula One ,  I am glad that Alonso and his family we’re not injured (especially in Kenya!). Its good to see that both Flavio and Alonso chose to spend their holidays in Malindi and Kenya in general which is a vote of confidence that we have a world-class tourist destination. I look forward to seeing Alonso and the Renault Formula One team later this year challenging for the 2009 Championship after a sterling performance with 2 wins towards the end of the 2008 season. Below is a video from Kenya’s NTV on the accident:

Mobile Tagging and 2d Barcodes.

I recently found out about mobile tagging which has really taken off in Asia and parts of Europe. Mobile tagging uses special 2d barcodes to link people from offline materials to mobile/non-mobile internet pages. It is interactive marketing in its truest form! Existing or prospective customers see something that interests them, they scan the 2d barcodes with their standard camera mobile phone and they are instantly connected to your mobile/non-mobile internet page. In a nutshell, mobile tagging makes offline media interactive.

Below is an example of a 2d barcode I generated for myself using the QR (Quick Response) code standard that I created using the free Kaywa QR Code Generator:

qrcode