By David
Marete & Philip Mbugua
ICT
has assumed an increasingly strategic role in the Kenyan economy in recent
years.
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Paul
Kukubo and Ken Njoroge of 3M and Cellulant
Paul Kukubo set up
3Mice Interactive Media which handled digital branding and exposure (website management,
digital campaign planning and so forth) way back when the majority of tech savvy
people were catching up on what a mouse and a server does. At that time, one
could make a clean 150,000 making a basic 3 page website. Mr. Kukubo also
deserves special mention because it was under his watch at the Kenya ICT
Authority that Kenya’s tech ecosystem began to receive international plaudits
for its credentials. As we speak, he is breaking new ground as usual heading up
East Africa’s first commodities exchange.
Ken Njoroge of
Cellulant was the first techpreneur to see the potential in Kenya’s nascent
mobile revolution. All those ringtones and local digital content on mobile
phones started out from Cellulant. Nowadays, there is a chance that several
services that you use on your phone may be running on a Cellulant-provided
backend. His list of clients includes Barclays, Kenya Airways, KCB and Standard
Chartered among others. As a matter of fact when the Nigerian government wanted
to bypass all middlemen in their fertilizer procurement process, it was none
other than Cellulant which provided the necessary technical skills to enable them
to do this.
Mike
Macharia of Seven Seas technology
Back in 2004,
working in Seven Seas Technologies was the equivalent of working at Twitter or
Google today. An SST engineer would swagger onto campus, very likely to teach a
class or give a talk. There would be hushed whispers of acknowledgement “This
guy works at Seven Seas” to which the response would invariably be something along
the lines of “Wacha!” Given SST’s early bent towards network-related products
and services, it goes without saying that around this time there was massive
investment by corporates in networking technology. It could be that it is
around this time that the concept of branchless banking came into vogue.
Kenya
has since developed the capacity to produce trained networking engineers which
has marginally driven down the pizzazz associated with this sector of IT. Be
that as it may, it is rumoured that Mike Macharia turned down an opportunity to
study in the USA to chase down a business opportunity in Rwanda. It was a case
of two tickets and only one choice, with one ticket more likely favoured by his
parents. And here we are, several years down the line, discussing Kenyan tech history.
Kamal
Budhabhatti of Craft Silicon
This gentleman in
my opinion could easily vie for the resident wizard of this group. Reason being
that he developed an entire core banking system (CBS). From my point of view that
is a massive undertaking. There are countless banking products, SWIFT formats, government
regulations, multiple possible user configurations, different
client-relationship structures and a whole myriad of things that go into a core
banking system. In short, if you take away the people running a bank and its
relationships, a bank is its CBS. And
if you go the bank and the teller tells you (pun intended) “Sorry, systems are
down,” it is most likely that their CBS is suffering from one form of flu or another.
Craft Silicon has clients across Africa, Asia, Europe and the Americas. This is
definitely a telling Kenyan success story.
As has been
mentioned above, one of the reasons we don’t hear much about many of these people
is because they serve behind the scenes in niche markets. Their primary sale is
to enterprise buyers as opposed to the average Joe on the street. Another
reason is that we have not been putting out enough local content on the internet
which has resulted in these stories getting crowded out in the noise. It is
said that in order to know where you are going, it is important to know where you
are coming from.
The important
thing is that these stories need to be told for the benefit of the new
generation of students going through and emerging from our technology colleges
and universities. During my time in campus, the stories of Yahoo, Amazon, E-bay, Paypal, Google, Facebook and LinkedIn had me
enthralled. Much as that was the cutting edge of global tech innovation I was
so enthralled that I overlooked the significance of these local stories
happening right in front of my eyes. After entering the workplace and working
the grind I forgot to dream. However, this same grind gave me a much higher
appreciation for the significance of these local stories. It taught me that if
I want to make a difference globally, I would have to start locally and solve
local problems. In my opinion it is in understanding the stories of these
gentlemen that we can figure out the next frontiers of opportunity.
The
Financial Services Technology (FST) industry, which has traditionally employed
a considerable portion of our best and our brightest, is maturing
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Observing the
valuations, profit margins and threat-of-new-entrants for most of these
companies, it becomes apparent that the first-mover accrues serious incumbency benefits
and in most cases is able to lock out other entrants from gaining a foothold.
Most importantly, new applications and or services are forced into increasingly
niche areas.
So how does this
affect cocoa production in Ghana? It appears to me that the FST industry, which
has traditionally employed a considerable portion of our best and our
brightest, is maturing. The implication is that profit margins are narrowing together
with the space for ground-breaking innovation.
Additionally new entrants are being
forced to newer and more niche segments of the sector. This information coupled
with the fact that Kenya should be moving to a cheaper energy regime in the
next 2 years or so, could easily mean that the next frontier of opportunity for
Kenya’s IT graduates, engineers and aspiring industrialists might finally lie
in manufacturing. Additionally, taking full advantage of this information may
well require conceptual leaps such as the gentlemen above have made.
David Marete is an entrepreneur and an anti-money
laundering expert and Philip Mbugua is an IT Consultant
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