The new currency in Kenya (notes). It was somewhat of a surprise on Madaraka day when President Uhuru and his Central Bank Governor surprised Kenyans with new currency notes. It was the second and last phase in Kenya’s currency reform in line with the 2010 constitution. Besides fulfilling the requirements of the constitution, the move is also aimed at stemming corruption. Hence, unlike countries where demonetization was a complete surprise, Kenyans had been wildly speculating and anticipating the introduction of the new currency since 2010.
Will Kenya achieve its goals with demonetization or will it fail? By exploring such events in other countries within and beyond the continent will reveal a few realities Kenyans will have to grapple with in the near future.
In 1987, Burma’s military expunged about 80% kyats in circulation with the aim of curbing the black market. However, commercial activity in the country immediately came to a standstill with most currency deemed worthless. The government under the leadership of General Ne Win faced a lot of backlash common citizens.
Especially students who could no longer access financial aid from their parents. Widespread dissatisfaction in conjunction with demonetization of the Kyat led to massive protests that led to the 1988 revolution.
Also Read: Top 10 Richest countries in Africa 2019
Similar to Myanmar, the Indian government in 2016 declared 99% of Rupee notes in circulation void. The government also gave a 50-day deadline for all 500 and 1000-rupee notes to be exchanged in banks with new generation notes. However, the government failed to print new notes fast enough creating a currency crunch that lasted a few months.
That left Indians cashless or in lines waiting their turn to access small amounts of legal tender. Ultimately, 1% of the country’s GDP was wiped out in the cash crunch while 1.5 million jobs were lost. As such, the attempt to flush out untaxed wealth being hoarded by wealthy Indians, only hurt the poor Modi’s government was trying to protect.
During President Buhari first stint as President of Nigeria between 1983 and 1985, Nigeria underwent sweeping reforms. One of these was banning of old notes in an attempt to root out runaway corruption from the country. However, the Nigerian Central Bank implemented the new measure irresponsibly by printing more cash which led to galloping inflation and left a heavy debt burden.
Ultimately, the Nigerian economy was incapable of absorbing the effects of the cash crunch and eventually the economy collapsed. This led to another coup de tat led by Ibrahim Babangida (another dictator) that deposed Buhari from power.
Also Read: Who is the richest man in Africa?
In January 1982, the Provisional National Defence Council (PNDC) government, led by Jerry Rawlings announced the demonetization of the 50-cedi note. The public was only given two weeks to deposit old notes in banks for chits redeemable at a later date. Ghana also shut its border for two years. All that was aimed at stemming excess liquidity, curb tax evasion, punish corrupt politicians, and devalue large sums of the currency outside the country.
This was in the revolutionary spirit of Rawlings’s new military junta that was fed up with successive corrupt governments in the country since independence. However, all the government succeeded to accomplish was make all cedi denominations, including the 20 cedi note, worthless. Subsequently, the public lost confidence in the country’s entire monetary system. People, therefore, resulted to holding physical assets, foreign currencies and relying on the black market for the supply of goods that there were no goods in formal supermarkets and shops for years.
From the examples above, demonetization is a grim affair that governments always seem to get wrong. Will Kenya’s story be different? Only time will tell.
Business to start in Kenya in Kenya Tomorrow
Booming Businesses to start in Kenya with a budget of less than 100,000 in 2020.
The rates of joblessness in Kenya are now hitting the peak. Based on the unemployment report by the Kenya National Bureau of Statistics (KNBS), an estimated seven millions Kenyans are jobless. Sadly, a large portion of the unemployed is youth graduates.
Creating employment is the only solution. With less than 100,000 Kenyan shillings you can start a viable business and forget to ever tarmac again!
1. A Car Wash Business
A Car wash business is a great idea and one of the best businesses to start in Kenya. There almost three million vehicles in Kenya and people continue to purchase more. The strategic location for the business can be anywhere with a source of water in the residential areas. A business permit, a yard, and the necessary equipment total to around 100,000. The peak days of the business are mainly during the weekends. In most cases, the cleaning charge for one car cannot be below 200. One can also combine the business with other services such as cleaning carpets and providing parking services at night. Per month, this business can give approximately 130,000. The car washing business will take long before it becomes saturated. Over7, 000 cars are bought every month. Car wash businesses are also everywhere from low-income neighborhoods to opulent areas. Regardless of the magnitude of the business, it is a perfect source of income.
2. Shoe Shining Business
A shoe shining business is perfect, especially in the town centers. However, many people see the business as less paying. One can start the business with as low as 20,000. During the rainy seasons, the business can be exceedingly profitable. Most working people do not want to get into the office with shoes covered in mud hence a broad customer base can be available in town centers. The only equipment required is a brush, shoe polish, water and a piece of clothing.
3. Salon Business
Starting a salon in the estates of Nairobi can cost as low as 50,000. The source of capital can be personal savings or working as a mobile hairdresser for a start. A simple salon in the neighborhood is also a great way to begin since it involves little expenses. In this business branding is the main selling point. A well-known brand can charge from 2,000 Kshs per head. Moreover, a strategic location and good skills for maintaining customer loyalty are needed.
4. Selling Second-Hand Clothes
It is not uncommon to find graduates selling second-hand clothes in the streets nowadays. Besides, there are many shops in town centers or residential areas that sell the “mitumba” clothes. It is a cheap and flexible business idea. One can dedicate a few hours in the evening for the business. The trick entails selling fast-moving items. Gikomba is one of the places in which selling second-hand clothes thrives. It is also a source of clothes at a cheaper price for reselling.
Also Read: Who is the richest man in Africa?
5. Selling Natural Oils
Natural oils are gaining popularity. The population is moving towards a healthier lifestyle, therefore any natural product is in high demand. This business requires an oil press machine and access to sources of natural oils such as chia seeds or avocado. The raw materials are readily available in our country with an avocado retailing at as low as five shillings. The process involves drying the fruits and seeds and pressing them using the machine to obtain organic oil.
Another cost includes packaging. Bottles and labels are easily available in the industrial area. With less than 100,000, you can successfully venture into the lucrative industry. The total costs amount to about 60,000. However, profits are rewarding.
6. An E-Commerce Business/Online Business
It is possible to start an online business with less than 100,000. Many Kenyans are currently launching their online shops. Today’s customers are tech-savvy and prefer to shop online. One can sell various products online. A major selling point is ladies’ hair accessories and fashionable clothes for all genders and ages. One needs to have a responsive website. The e-commerce sellers should also major on the right marketing strategies. Keeping consumers engaged with daily updates is the best marketing strategy.
7. Movie Shop
Kenyans love a place they can always get a good movie for as low as 50 shillings. The popular use of flash disks and the increasing availability of network connection enable movie shop owners to easily download and sell movies. These are also some of the factors that make this business idea attractive. In town or in residential areas, movie shops are everywhere. It is a clear indication that starting a movie shop is a viable business idea. Regardless of access to cheapest internet, Kenyans still prefer buying the movies compared to streaming them directly. A computer, a fast internet connection, and blank DVDs are the necessary tools for the business. However, one ought to be careful about copywriting laws.
8. Day Care Services
Kenya has also embraced dual income families. The costs of supporting a family are on the rise. To survive in the current economy both parents ought to have a source of income. There is hence the high demand for daycare services. Many parents currently prefer leaving their children in a daycare compared to employing house managers. The recent incidents of house managers abusing the children left under their care have led to the popularity of daycare services.
Small residential homes that provide child care services are an attractive means of making money. A potential business person can rent a clean and conducive room to take care of the children under three. With time, one can even employ a few caretakers to help if the number of children increases. Per day, every child is charged at least 200 shillings.
Each year, thousands of students graduate from college and universities. Unfortunately, there lack enough job opportunities to absorb the talents. The only solution to curb unemployment is by creating jobs.
We hope that through our list of businesses to start in Kenya we have inspired you to start creating jobs instead of waiting for one to come your way.
Businesses to Start in Kenya with less than Ksh100,000
- A Car Wash Business
- Shoe Shining Business
- Salon Business
- Selling Second-Hand Clothes
- Selling Natural Oils
- An E-Commerce Business/Online Business
- Movie Shop
- Day Care Services
Good Luck in Starting your business this year!
Microsoft to set up a technology development centre in Kenya
American innovation goliath Microsoft Corporation has disclosed an arrangement to set up an innovation improvement focus in Kenya.
Talking at a gathering facilitated by President Uhuru Kenyatta at State House Nairobi on Monday, top administrators of Microsoft driven by Vice President for Gaming Phil Spencer said the Africa Development Center will serve the Eastern Africa locale.
The innovation center, the seventh comprehensively, won’t just be the organization’s door to the country, however, conveys the immense potential for employment and business open doors for well informed Kenyan youth in the different ICT specializations.
Mr Spencer stated, that the partnership will before long employ 100 local engineers, openings that were declared in March.
President Kenyatta respected the new activity and guaranteed Microsoft of his full help.
“You can depend on my 100 percent support. I need this to be a straightforward organization that benefits Microsoft and Kenyans extraordinarily. We need you to make Kenya your African home,” President Kenyatta said.
The President said Kenya is the best set nation in the continent to have the new improved site.
“You won’t discover another nation with a similar limit like Kenya,” he said.
As indicated by Microsoft, the Africa Development Center will be the head center point of designing for the US innovation organization and its associates.
Other than Nairobi, Microsoft has reserved Nigeria as the other recipient of a comparable office on the landmass to serve West Africa.
Here are 12 facts about Microsoft that you probably didn’t know
- Microsoft is one of the top patent holders in the U.S.
- Steve Jobs and Bill Gates were once friends.
- Bill Gates was first announced as a billionaire in 1995, and he was the youngest billionaire at that time. His net worth was $12.9 billion.
- Microsoft has made two other billionaires other than Bill Gates and also more than 13,000 millionaires.
- The first Microsoft logo was designed in less than a day by the co-founders Bill Gates and Paul Allen
- The first smartwatch was made in 1994 and it was made by Microsoft and Timex, but it didn’t go that well since the watch wasn’t that great.
- Microsoft Celebrates Anniversaries With M&Ms – a Microsoft employee is expected to provide one pound of M&Ms for every year they’ve worked.
- Microsoft Has a Huge Art Collection
- The average salary of a developer in Microsoft comes in at $106,000
- Microsoft 1.o was first released in November 1985.
- There was a hyphen in the name Microsoft (Micro-Soft) and it was removed in 1981
- Microsoft was started in 4th April 1975 in New Mexico by Bill Gates and Paul Allen
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