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Kenya’s Top innovator Creates First USB Cable Disrupting Foreign Domination

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Anthony Muthungu, 29, has inadvertently and indelibly inked his name to the hallowed corridors of Kenya’s manufacturing terrain after becoming the first Kenyan to manufacture USB cables, disrupting aeon years of a monopolistic chokehold enjoyed by foreign firms in the sector.

This milestone by a vicenarian is understandable when it’s borne that Kenya bears the enviable moniker of being Africa’s “Silicon Savannah,” including being the second-best innovation hub in Sub-Saharan Africa, according to the Global Innovation Index (2021) report with South Africa heading the pack.

“ India, Kenya, the Republic of Moldova, and Viet Nam hold the record for overperforming on innovation relative to their level of development for the 11th year in a row,” partially reads the report.

Muthungu, a computer engineering degree holder from Zetech University – a local institution whose innate genesis also can be traced to a daring local entrepreneur– has arguably become the first African drawn from within the East and Central Africa region to manufacture USB cables – that from a quality point of view – can stand toe to toe with their imported peers.

To prove his burgeoning outlier pedigree this pathfinder was in 2019 feted as being one of the top 40 entrepreneurs in Kenya aged below 40 by the local Business Daily newspaper brand. 

Two years later he was shortlisted for the Kenya-South Africa Chamber of Business award, a continental jamboree that shines the spotlight on entrepreneurial excellence.

According to the Association of Countrywide Innovation Hubs- a Kenyan focal point representing 17 counties out of a possible 47 whose objective is to support and build sustainable businesses and startups across Kenyan counties, Kenyan tech

start-ups topped the continent as they raised an impressive Ksh 21.4 Billion (US$ 177,593,359.14) of funding in 2020, underlining the alluring nature for local companies to thrive.

This level of funding is attributable to a socio-professional environment that is conducive to work notwithstanding Kenya’s unregulated start-up ecosystem.

Whereas countries like South Africa, Tunisia, Senegal, and Nigeria have pegged regulatory policies to govern start-ups, Kenya has no government policy that caters to the sector.

Anthony Muthungu at his work station

Anthony Muthungu with his team at TOTOSCI Holdings

But in 2021 the country took baby steps towards reorganizing the sector by sponsoring a start-Up Bill, 2021 which seeks to govern the interactions and relationships between start-ups, the government, investors, incubators, and ultimately consumers.

“Efforts have been made to create an enabling environment for local innovation to thrive. For instance, through the Science, Technology, and Innovation Act, of 2013 the Kenya National Innovation Agency ( KeNIA) was established to coordinate innovation efforts in the country. 

Some include offering linkages to investors, creating and disseminating guidelines on commercialization, among other roles,” says George Masila, communications manager, KeNIA.

Based in Kirinyaga County, a rural and agricultural-rich enclave found in Central Kenya, 136 km South of Nairobi, Muthungu’s two-year-old TOTOSCI holdings limited, which produces

between 300 to 500 USB cables daily, owes its existence to an unlikely occurrence.

In 2020 after completion of an undergrad degree, he opted to pursue an entrepreneurial career rather than seek formal employment believing fortune favored the brave and registered TotoSci Academy – a mobile school that taught science, technology, engineering, and arts to children aged between 4-17 years.

The name TotoSci is derived from two words -Toto stands for a child in the Kiswahili dialect, the highly spoken language within the East Africa region, while Sci is an abbreviation for Science.

And as is normal in the capricious world of entrepreneurship the school was shuttered after the global Covid-19 epidemic set foot in Kenya on 12 March 2020.

Housebound and with no work to do, his restless entrepreneurial spirit stirred him to design a ventilator. Then one day while transferring research data from his phone to a laptop he hit a snag.

“ At my house, I had six USB cables and none was working. I thought I was probably jinxed. But coincidentally I discovered my friends too were facing a similar challenge. I then opted to buy their faulty cables at Ksh10 (US $ 0.083) per piece and within a fortnight I had 7,000 cables, which I dismantled hoping to discover what the problem was. What I discovered was the USBs were of low quality,” says Muthungu who initially wanted to become an army officer.

“ If you ask me why I wanted to join the army, I cannot tell you why. Even when I was already engaged in innovation, I tried three times before giving up in 2013, 2014, and 2015. In all of these competitions, running was a problem, because l was always among the last. In 2014, I placed 129 out of 142,” says Muthungu.

Meanwhile, as is routinely taught in business school, opportunities often creep in during crises as Muthungu discovered with the USB fiasco.

“I documented each of the 7,000 USB cables and I identified the problem and decided to fill the gap and decided to build something that is ten times better than what was already in the market,” says Muthungu.

Unfortunately, even though the USB cables have to date received approval from including the Kenya Bureau of Standards (KEBS), a 48-year-old government organization that ascertains local products comply with international standards, and the Kenya Export Promotion and Branding Agency (KEPROBA), the Kenyan market is seemingly oblivious to the quality of the product.

“It’s probably a colonial mentality hangover where the locals think anything made in Kenya is inferior to imports while others think I should sell the item cheaply because it’s locally made,” says Muthungu who invested an estimated Ksh 3 million ($ 24,916.94), monies he had been loaned by a friend to begin the company that relies heavily on social media to market itself.

A TotoSci-manufactured USB cable retails for between Ksh 135 ($1.12) to Ksh 200 ($1.66), prices that compete favorably with imported contraptions found on the Kenyan street.

Currently, the company has employed five people directly – all engineers -with an additional 20 indirectly on the supply chain, says Muthungu who complains of a need to tame the high tax regime that defines the local market that disadvantages upstarts.

The machines he uses in the factory are imported from India and China.

Admitting that doing business is not for the faint-hearted, Muthungu says he’s into entrepreneurship for the long haul.

“I am a dyed-in-the-wool industrialist and even if I was making Ksh1($ 0.0083) profit per USB cable and I sold say to one million people, I would make a tidy profit of Ksh 1 million ( $8,305.65 ) and despite the inimical environment that is Compounded by high taxation I know no situation is permanent.

This calling is not for everyone. When I sought to find if anyone in Africa was involved in manufacturing USB cables so that we could compare notes I pulled a blank,” says Muthungu.

In  2023 TOTOSCI holdings limited hopes to begin producing mobile phone accessories with the end goal of eventually assembling mobile phones by 2025.

 

 

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Equity Bank Plan Sh7.6b Staff Share Reward Scheme

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Equity Group has announced the revival of its employee share ownership plan (Esop) in an effort to retain and attract talented staff. The bank plans to distribute 198.6 million shares, valued at Sh7.6 billion, to employees over the next 10 years. This comes after a previous attempt four years ago to implement a similar plan, which was abandoned just before the allotment of 205.7 million shares in 2019.

Equity Group’s board has proposed the creation of additional shares to support the Esop and will seek shareholder approval during the upcoming annual general meeting on June 28.

The newly created shares will amount to five percent of the company’s share capital, raising the maximum share capital from Sh1.886 billion to Sh1.986 billion. The directors will have the flexibility to issue the additional shares in tranches and based on terms and conditions they deem appropriate.

Notably, the Group’s CEO, James Mwangi, is among the employees expected to benefit from the share allotment. The previous Esop plan in 2019, which was withdrawn during the AGM, would have allocated 205.7 million shares worth Sh8.4 billion to bank staff.

This new Esop will be the second of its kind for Equity Group, as the bank initially established a stock-based compensation scheme before its listing on the Nairobi Securities Exchange in 2006. Esops are employee benefit plans that provide ownership interest in the company through shares. They are designed to enhance staff productivity, reward employees, and attract and retain talent. The approval of the Capital Markets Authority (CMA) is required for the implementation of Esops. According to the CMA, as of March 2021, it had approved 14 Esops.

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Fish kills leave Kenya’s Lake Victoria farmers at a loss, seeking answers

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  • According to a Kenyan government report, fish farmers in sections of Lake Victoria lost more than 900 million Kenyan shillings ($7.2 million) in massive fish kills in November 2022.
  • Scientists attribute the fish kills to reduced levels of dissolved oxygen likely due to a natural phenomenon called upwelling, which can be exacerbated by climate change and extreme weather.
  • Local farmers who lost their fish, however, attribute the die-offs to pollution from Lake Victoria industries, which agencies have accused of discharging untreated effluent into the lake in recent years.

KISUMU, Kenya — It is a little past 5 p.m. at the lakeside city of Kisumu, in the western part of Kenya. An hour later, the sun sets over the sprawling Lake Victoria as far as the eye can see. Wisps of gray clouds are infused with the sun’s amber rays, which reflect off the lake in a bedazzling shimmer. The scene is captivating, but a faint stench lingers in the air. That stench, to many cage fish farmers, is a painful reminder of the extensive losses they suffered in November 2022 due to fish kills.

A report commissioned by Kenya’s State Department for Fisheries, Aquaculture and the Blue Economy estimates that cage farmers in different sections of Lake Victoria, particularly Kisumu and Homa Bay towns, lost more than 900 million shillings ($7.2 million) to fish kills in 2022. While the scientists Mongabay speaks to attribute the fish kills to a combination of natural phenomena and climate change, the fish farmers are wary of those explanations, saying the deaths could be a result of pollution.

Fish farmers in Lake Victoria mainly stock tilapia (Oreochromis niloticus), which, according to scientists, are preferred due to their fast growth, resistance to disease and ability to withstand low dissolved oxygen levels. Tilapia and Nile perch (Lates niloticus) are the two most abundant fish species in the lake, and tilapia is more profitable in the local market.

Two of the fish farms, Kentila Farms and Lake Aqua Limited, suffered the greatest losses: 200.4 million shillings ($1.6 million) and 138 million shillings ($1.1 million), respectively, according to the government report. Although the fish kills happened in November, the memories of the losses are still fresh in people’s minds months later.

At Ogal Beach, the section of the lake where farmers were worst hit, there is a flurry of activity as fishers return from early morning fishing expeditions. They are gradually easing back into their routines. It is not until you engage the fishers that you begin to understand the hurt some of them bear beneath the apparent normalcy.

“I do not want to talk to the media anymore. … Nothing comes out of it! It is like opening an old wound that I would rather forget,” says Jacob Okomo, a fish farmer at Ogal Beach who deals in tilapia. It is unclear how much loss he suffered, since he does not talk about what happened.

Shalton Omolo's boat, rowing it is Shalton's assistant.Shalton Omolo’s assistant rowing Omolo’s boat. Most fish farmers in Kisumu use similar boats. Image by Calvin Rock Odhiambo for Mongabay.

Low levels of dissolved oxygen can kill fish

Many of the fish farmers lost their fish to massive die-offs usually attributed to reduced levels of dissolved oxygen (DO) in water — a phenomenon that commonly results in what is referred to as fish kills.

According to a review article published in the journal Fisheries Management and Ecology, Lake Victoria fish kills in recent years have been attributed to reduced dissolved oxygen content in the water. The article, which references incidents in 2016 at two other beaches on the lake — Anyanga and Nyenye-Got — notes a number of reasons for reduction in oxygen levels, including poor water circulation in the cages due to algae and feed residues as well as possible upwelling around the cages.

“Upwelling [occurs] when the water at the bottom [of the lake] rises, and the water at the bottom of the lake or sea is usually low in oxygen,” says Chrispine Nyamweya, a researcher at the Kenya Marine and Fisheries Research Institute (KMFRI). Nyamweya, who specializes in limnology (the study of inland aquatic ecosystems), explains that processes like decomposition, which uses oxygen, cause deficiency in the bottom column of water, which rises to the top during upwelling.

“When there is wind action or changes in water temperature, which changes the densities, water from the bottom rises up to the surface in the process … killing fish because of suffocation,” Nyamweya says. “Upwelling occurs at predictable times of the year but sometimes because of climate change and extreme weather conditions, these events happen at places and times we don’t expect.”

A fisher repairs his fishing net.A fisher repairs his fishing net at Achodho Beach in Kisumu County. Image by Calvin Rock Odhiambo for Mongabay.About half a kilometer across from Ogal Beach is Achuodho Beach. Shalton Omolo, a cage farmer who deals in tilapia, says he lost more than 4 million shillings ($32,000) to fish kills in November. He started ELSO farms in 2019; using proceeds from aquaculture, he invested in beekeeping and goat rearing, selling honey and goat meat to boost his income. Unlike Okomo, he is willing to talk about his experience of discovering dead fish in their cages. He speaks with passion, recalling the Friday it happened.

“We woke up very early, prepared to harvest because we had a lot of orders and clients were waiting for us in town and some were waiting for us at the beach,” Omolo says. “When we were about to arrive at the farm [fish cages] we were met by some funny smell, but we assumed everything was OK.”

Upon arrival, Omolo says, he and his assistants found thousands of fish floating in the water inside the cages. He was forced to call his customers, mostly hoteliers, informing them of what had happened. He had no option but to refund the money some of them had already paid.

“At first I thought it was foul play; I thought it was a human act because I had advertised and people [customers] were really waiting on their orders. I thought somebody might have poisoned the fish,” Omolo says. “I mostly deal with hotels and Fridays are good days because we are heading to the weekend so sales are really good and hotels want their fish supplied as early as possible — latest 7 a.m.”

Omolo says he later found out that other fish farmers in other areas of the lake had also been affected. He then realized the fish could have died from natural causes, although he remains skeptical.

Shalton Omolo steering his boat offshore.Shalton Omolo steering his boat offshore. Image by Calvin Rock Odhiambo for Mongabay.Things have not been easy for Omolo, who has two school-going children and siblings who depend on him. Even though he is slowly getting back on his feet, he says he is still burdened by the uncertainty of what the future holds.

“By the time I lost my fish, all the fish were ready for harvest and I had 80,000 pieces of fish [individual fish]. The total stock was amounting to 3 million shillings ($23,000); when the government did their calculation it was amounting to 4.6 million (just over $35,000) because of other factors left out during my calculation,” he says.

The cost of constructing a cage of 6-by-6-by-4 meters (20-by-20-by-13 feet) is about 400,000 shillings ($3,000), Omolo says, without factoring in the cost of fish fingerlings, which cost 4 shillings ($0.03) each. He also fed  the fish twice daily at a cost of 100,000 ($800) shillings per cage, until the fish were ready for market. At the time he lost the fish, he had 12 cages.

Ironically, aquaculture was introduced to Lake Victoria as a lucrative alternative to fish hunting while also solving the problem of dwindling fish volumes in the lake. However, with the losses farmers incurred, many are wondering whether it is worth the investment.

report published in the International Journal of Fisheries and Aquatic Studies, which focuses on fish kills in Lake Naivasha in February 2010, notes that suffocation as a result of oxygen depletion is “often” the cause of fish kills. Further, the report highlights “natural causes” such as “climatic conditions that can lead to deoxygenation of the water, diseases, stress, toxic algae, thermal shock and salinity shock among other factors.”

Omolo's assistant and Omolo inspecting the fish nets.Omolo’s assistant and Omolo inspecting the fish nets. Image by Calvin Rock Odhiambo for Mongabay.Omolo, however, suspects there could be more to the fish kills than just “natural cause,” which, he says with skepticism, the scientists from KMFRI refer to as “an act of God.”

“Everybody knows what happened. Things like ‘natural phenomena,’ things like ‘upwelling,’ people are just trying to hang onto them — those are jargons to me but we know very well what really affected the lake and what is killing the fish,” Omolo says. “What is happening is: We are losing our fish due to the pollution in the lake.”

He points a finger at companies around the Lake Victoria Basin accused of discharging effluents into the lake. His sentiments are echoed by Okomo and Michael Nyaguti, an environmentalist based in Kisumu, both of whom blame the die-offs on pollution. According to them, a discoloration on some sections of the lake is clear evidence of pollution. Nyaguti describes the color as that of “strong [black] tea.”

In 2020, Chris Kiptoo, who was then principal secretary of environment and forestry, singled out institutions and industries complicit in polluting Lake Victoria to Kenya’s environment watchdog, the National Environment Management Authority (NEMA), saying that 102 companies from 14 counties were responsible. In March 2022, NEMA said it would shut down 13 facilities for discharging untreated effluent into the water. As of publication, NEMA has not responded to Mongabay’s request for comment and an update on the situation.

Nevertheless, Susan Adhiambo, the Kisumu County director of fisheries, is quick to dispute  the allegations that the November fish kills were caused by extensive pollution.

“If it was pollution, it would have happened in the whole lake. … These deaths were sporadic at specific points, and there is no evidence that there is pollution taking place at those points. So I cannot clearly say it was pollution without sound evidence to prove [it].”

Susan Adhiambo, the Kisumu County director of fisheries.Susan Adhiambo, the Kisumu County director of fisheries. Image by Calvin Rock Odhiambo for Mongabay.Fishermen gathering their catch early in the morning on Lake Victoria.Fishermen gathering their catch early in the morning on Lake Victoria. An industrial unit at the lake’s banks can be seen in the background. Image by Franklin Amulyoto via Wikimedia Commons (CC BY-SA 4.0).She backs upwelling as the cause of the fish kills as indicated by researchers and scientists from the government. “[Upwelling] can be predictable, but with climate change, there are so many changes … even temperature patterns are changing, so it is becoming unpredictable,” Adhiambo says.

She adds that not all regions of the lake are suitable for cage farming, and that overcrowding the lake with fish cages may contribute to pollution.

Like Adhiambo, Nyamweya says the fish cages were most likely set up in areas unsuitable for fish farming, and that could have been the greatest contributor to the fish kills. He says that while pollution may also cause reduced levels of oxygen in the lake, it is unlikely that it was the cause of the November 2022 fish kills as many more fish farms across the lake would have been affected.

“I can say for certain that these fish kills were as a result of overcrowding and being set up in unsuitable areas.”

Despite Nyamweya and Adhiambo’s stand, Nyaguti, who is the founder of Magnam Environmental Network, a pro-conservation community-based organization, says pollution is largely to blame.

Shalton shares a light moment with Michael Nyaguti.Shalton shares a light moment with Michael Nyaguti. Nyaguti runs a pro-conservation CBO called Magnum Environment Network. Image by Calvin Rock Odhiambo for Mongabay.“[T]hey were saying it is because of climate change issues and therefore they could not control it,” Nyaguti says, “but we still call for more research because much as we have water hyacinth rotting … we are aware that a lot of pollutants are still entering into the lake.”

At the moment, scientists can only present the most likely causes of the fish kills. It could have been a combination of many things, including drought, which, according to the report in the International Journal of Fisheries and Aquatic Studies, also causes fish kills.

Nonetheless, fish farmers like Omolo and Okomo have suffered massive losses. Their hope is that the Kisumu county government, together with the national government, will implement the recommendations proposed by a task force investigating the fish kills — particularly, offering financial and psychosocial support to the affected farmers. Yet, more importantly, they say, scientists should conduct more research and come up with ways to prevent fish kills in the future — for this remains their greatest fear.

Mogabay

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