Sunday, December 6, 2009

December in Kenya


This post is long overdue. I give lots of credit to all those people who are better about updating their blogs regularly!


My Kenyan Thanksgiving consisted of a fresh 5lb red snapper from the coast and a fantastic sunburn. Still a much better deal than battling the cold and the snow of Colorado.


My last six months were spent fundraising and building our new company, Juhudi Kilimo. The first investor to jump into this relationship with us could be well rewarded. The only problem is… nobody wants to be the first to jump.


Juhudi Kilimo means “effort” and “agriculture” in Swahili and the company provides micro-asset financing for productive assets such as dairy cows, chickens and irrigation equipment to thousands of rural smallholder farmers all across Kenya.


Dairy cow in Murang'a

Water tank financed for irrigation during the droughts

A serious chicken farmer

Client training at Juhudi Kilimo

A Kenyan goat- fantastic for eating

"Asset" transport in the rural areas


We are also continuing to spend time with the East African Dairy Development Program in our Rural Enterprise Financing program to provide financing to a series of milk chilling plants throughout Kenya. The chilling plants bulk and cool the milk from rural dairy farmers and create a consistent outlet to sell milk for many of our smallholder farmers who have purchased cows with our loans. The plant also prevents the evening milk from spoiling before it can be processed by the larger processing plants. Currently, we are financing two plants in Western Kenya near towns called Kabiyet and Lelan. The Kabiyet plant started collecting milk in August this year and is now gathering 23,000 liters of milk per day from the surrounding dairy farmers.

The $140,000 plant is already profitable and looking to pull in close to $145,000 in profits this year. The farmers in the area are excited because they are now paid 25 Kenyan Shillings (about 33 cents) a liter instead of the 18 (24 cents) from local hawkers. If the average farmer sells 14 liters per day, that creates another 100 shillings ($1.30) in income each day. It might not sound like much but an extra $1 a day in the rural areas of Kenya can go a very long way.

The Kabiyet and Lelan plants are community owned with a local board, so all of the profits remain in the village and are distributed throughout the 3,000 shareholders from the community. The whole story makes me want to quit my job, buy a few cows and start a dairy farm.



I am committed to staying with Juhudi Kilimo for as long as they are able to remain operating to help drive the management and source financing. We are so close to making something spectacular with Juhudi Kilimo and we have already come a long way.

Saturday, September 5, 2009

Colorado River, Istanbul and Juhudi




Colorado was warm, beautiful and full of good times. The fishing was
a little slow. My brother and I successfully navigated a pristine 40
mile piece of water in our drift boat along the upper Colorado River. The stretch included the passage of a wild rapid called Rodeo- an experience I do not need to repeat in the near future. It was also comforting to be camping in an area where only three animals might be deadly (bear, mountain lion, rattle snake) instead of 35+ around Kenya.








On my flight back to Africa I made a stopover in Turkey to visit
Istanbul. The majestic roof-top vistas of the Bosporus River and prominent
architecture of the mosques will remain etched in my mind for some time.





I think Istanbul has just made its way into my top 10 lists of favorite
cities. Since Istanbul straddles both Europe and Asia, I managed to
set foot on four continents in just four days.






During the last weekend before my official work start-date I took a
quick trip to Diani beach on the southern coast of Kenya. This time of
year yields the best weather at the coast and I took advantage of the
superb diving in the Indian Ocean. My friend and I rented mountain
bikes and managed to get stranded with four flat tires and no cash in
a little village about 15 miles from the hotel. A small group of
young boys evaluated our plight and then dug deep in their pockets to
produce the $1.50 needed to repair our tires. This money was probably
their month savings but they were eager to donate it to help some
complete strangers. Someday I hope to return the favor.

I am now starting my first week as the new CFO at Juhudi Kilimo.
The expectations are well beyond any of my capabilities but
I am excited to begin. We have an aggressive financing plan with
hopes of bringing in $2 million by the end of November.
Perhaps we will find some investors and donors as generous as the
village kids near Diani beach?

Sunday, August 9, 2009

Kilimanjaro


I successfully made it to the top of the 19,341 foot summit of Kilimanjaro. It was a rough climb. My group chose the Machame route (also known as the whiskey route) which is one of the more challenging climbs to the top.


I was graciously joined by a fantastic Canadian family and a professor from the UK. Our group of five climbers required an entourage of 15 porters, two guides and one cook to carry us up the mountain.





The scene certainly brought images of the Colonial Era expeditions in Africa. I thought I had signed up for the budget tour but that even came with the full floral display on our dinner table which the porters took to each campsite.


Other groups on the mountain had as many as 200 people in their company with house-sized tents, elegant meals, gas generators and flat screen TVs. Each night was like staying in a tented village. Not quite the camping I had in mind.



The physical and mental challenges of the climb were intense and at many points I seriously questioned my ability to continue. It took us five days to climb and one day to descend back to the town of Moshi.


The more time people spend on the ascent the better their chances are of avoiding altitude sickness.

The ranger station at 14,000ft sold cold beer.

The summit of Kilimanjaro was one of the most spectacular views I have experienced in my life. It made the whole journey worth all the troubles.

Now that I have mastered the two tallest peaks in Africa, I will set my sights on the Americas, Asia or Antarctica.


One more job update:

I was recently given an enticing offer by a UNDP organization called AMSCO that places expatriate managers in companies across Africa. I will now be working under AMSCO instead of Accenture with my new role as General Manager and Chief Financial Officer of Juhudi Kilimo. AMSCO provides all the benefits of a UN employee such as diplomatic immunity and tax free salary. I will still be in Nairobi until December unless our team can finally raise some money to keep the company going.


I will be in the US for the next two weeks which includes a long fishing trip on the Colorado River.

Thursday, July 23, 2009

Job Update

Here is a long awaited post...

Job
I managed to convince the Grassroots Business Fund to pay me through Accenture to continue and work with K-Rep until December. This is nice because I can continue doing the work I love and get paid this time. If our new company, Juhudi Kilimo, lives up to its potential we will transform the agricultural sector of Africa and secure jobs and food for millions of people.

My next task with this company is to design a new business that finances “rural enterprises” or SMEs (small and medium enterprises) like the chilling plants I was talking about earlier. There is a massive demand for this type of financial service and we only need to convince a few innovative investors or donors that we can do it profitably. If we do, the potential social, developmental and financial returns are spectacular.

Samburu
Our most recent national park adventure was up north to Samburu near the town of Isiolo. It was the usual crew from the US Embassy and Accenture but this time we were joined by a free-lance photographer who put me to shame on any kind of photo-taking endeavor.



We have a few too-close encounters with the local elephants and I was able to snag a few good videos too.


Fly fishing
I finally caught my first trout in Africa. It was a puny little brown but good to break in the continent. My most recent fly fishing student, Craig, somehow pulled in five fish to my one on the trip.






Kilimanjaro
My trip to the summit of Kilimanjaro begins on July 31st and will take about 6 days from the town of Moshi. Should be fun.