Fake Currency in Kenya a Ticking Time Bomb

The amount, quantity and quality of fake money in Kenya has been steadily rising, making it hard to be sure whether the note you are holding in your hand is fake or real.
Most Kenyans are suspicious of the 500 and 1000 shillings notes and will take a 200, 50 and 100 shillings note without a second thought. People seem also to trust money from bank ATMs, bank tellers and supermarket tills. However, the fraudsters have become smarter and are targeting unsuspected areas like ATMs, and lower denominations like 200, 50 and  100 shillings notes.
How they succeed in sneaking these fake currency into the banking systems is still a mystery but  it may be during the loading of ATMs, often done by contracted security firms.

How Can You Evade the Fake Money Scum?
At some point in your life you may have handled fake money whether knowingly or unknowingly.
Being in possession of counterfeit money be it in local or foreign currency is a grave offense in Kenya which attracts a jail term not exceeding 5 years.
So in-order to be on the safe side, keen hawk-eyed, some measures should be taken when handling money to determine whether it is genuine or fake currency.
How do you detect if "money" is real or fake? You may wonder well……. here are pointers in detecting counterfeit money.
1. Portrait Watermark. A three dimensional portrait of a lion’s head can be seen when the note is held up to the light. The watermark has a three dimensional appearance with areas in varying tones of dark and light. Below the watermark is the value numeral of the banknote. This number can be seen when the note is held up to the light. Both the portrait and value numeral depict some brightness when held up to the light.
2. Serial Numbers The serial numbering style is asymmetrical and has progressively larger digits in adjacent positions. One set of serial numbers appears horizontally, the other vertically. The vertical serial numbers on the left hand side of the banknote glows under UV light
3. See Through Feature Each of the banknotes has a see through feature which forms a perfect complete elephant when held up to the light. When looked at from one side, the image does not form any recognizable feature unless when looked at up to the light.
4. Security Thread All genuine banknotes have a distinct interwoven thread running vertically down the right hand side of the notes. When held up to the light, the thread appears as a continuous line and it shows a series of text featuring the denomination numeral of the note and the letters CBK. The current generation of banknotes features two types of threads:-
For the 1000 and 500 shillings denominations, the thread is thicker and portrays a colour shift when viewed at angles. The 50, 100 and 200 shilling denominations have a thinner thread silver in colour and do not depict any colour shifts when viewed at angles.

Survey: Best Firms to Work for in Kenya 2013

Technology provider Craft Silicon has been rated the best company to work for in Kenya.
The ranking, further demonstrates
Kenya’s  growing stature as
information, communication and
technology hub in the region.
According to the survey Deloitte Best Company to Work For Survey 2013, Proctor and Gamble, was rated second with Kenya Finance Women Trust coming third.
Craft Silicon, is a financial solution
provider in banking and micro-finance software, mobile and switch solutions.
Grand prize founded and headed by Kamal Budhabatti, the company won an Sh85.4 million ($100,000) grand prize at the 2010 Africa Awards for Entrepreneurship.
The survey analysed input of employees from 17 companies to
ascertain which company they
consider to be the best employer to
work for.
Themed, ‘War for talent’, the survey
provided a glimpse into the ability of companies to attract and retain talent.
Out of the various categories,
commercial banks had four entries.
Family Bank was rated as the best
employer in the industry.
The bank has undergone numerous
strategic changes since the appointment of Peter Munyiri as the
institutions chief executive in 2011.
Speaking during the announcement of the winners in Nairobi Thursday,
Deloitte South Africa consulting partner Jack Sellschop said this year’s survey theme focuses on talent in a rapidly changing business environment.
“Increasing numbers of companies are expanding into the continent. These companies are becoming aware of the need to understand the perceptions of their employees towards their institutions and what they value in the employer or employee relationship,” he
said.

Key parametres
The survey looks at several
parametres such as remuneration and work life balance, confidence in the organisation, operational effectiveness and job satisfaction.
In addition, the survey also looks at the employee’s sense of confidence in the organisation, organisational ethics and integrity among other parameters.

The report measures the rating by
employees in terms of operational
effectiveness and employee
relationship with immediate
supervisors and sense of inclusion in the organisation. Others include overall job satisfaction and career
development prospects among others.
The report also reveals interesting
trends that are at the heart of winning and retaining talent.
The pace of organisational growth is at the top of winning talent. Other key aspects are talent development,
transformative human resources and proper workplace branding.
Deloitte East Africa consulting partner Kimani Njoroge said the findings from the survey would assist employers develop strategies to improve the working environment for employees.
“This gives employers the opportunity to develop insights into what motivates people, what attracts them to their firms, what they value and also collect
the hard data required to make these judgments,” he said.
Deloitte Chief Executive for East and
Central Africa Sammy Onyango noted that the war for talent in Africa goes beyond the traditional borders of the individual States, adding that it has become regional, Pan African and will eventually be global. “It is mandatory for businesses to regularly engage employees to create a strategy to address their motivation, behaviour, productivity and business results,” he said.
Engagement initiatives
Onyango urged employers to
constantly consult employees on
determining and applying engagement initiatives that are relevant to the unique needs of the organisation’s diverse workforce rather than on-size fits all approaches. “Work environments now have multi-cultural, multi-generational and cross-geographical aspects,” he said. He
advised companies to identify the right employees and engage them in the right organisational behaviours.
This, he said is a critical ingredient of how they manage the diverse
economic conditions facing their
organisations today.
The survey will extend to Uganda and Tanzania from next year.
(Source The Standard)

Bill Gates: Lessons You Don't Learn in School

Microsoft co-founder Bill Gates, one of the richest people in the world, is well known for the nuggets of wisdom he occasionally imparts on the young and old alike. At a speech he gave at a high school graduation, he sought to bring them back down to earth by correcting some of their misconceptions about life in the real world. No political correctness here – just one big reality check that, if taken to heart, will help us on the real life after school.

Lesson 1: Life’s not fair. Get used to it You could be the smartest, hardest working most noble person alive and still not get that A. Or promotion. Or the girl, whatever floats your boat. The sooner you stop expecting life to hand you the things you think you “deserve”, the easier it will be to bounce back in those times when life knocks you down and just keeps kicking. You could earn your way to that promotion and still have it snatched from under you – get over it. That doesn’t mean sit back and take it. It means that you need to learn from those ugly situations and better position yourself to reap the benefits of your diligence.

Lesson 2: The World Doesn’t care about your self esteem “The world expects you to accomplish something BEFORE you feel good about yourself” … so get on it. Start making something of yourself today. Right now. That idea you’ve been pushing to the back of your mind might be just the thing to propel you to the limelight, so get on it. You only truly fail if you never try.

Bill Gates, Microsoft co-

Lesson 3: You will not make six figure salary right after school “You won’t be a vice president with a car phone until you earn both.” This addresses the entitled behavior that young people display on a daily basis. It’s not a good look for anyone to act like the world should unfurl a red carpet at their feet just because they showed up. You have to work hard for what you get – I’m talking sweat and blood here, and don’t expect anyone’s gratitude for it.

Lesson 4: If you think your teacher is tough, wait till you meet your boss All those deadlines you think are unreasonable at best, those times she locked you out of class because you showed up late? Ten times worse with a boss. Only, instead of chewing you out infront of a classroom, it’s a whole office. Teachers are legally mandated to show some restraint, bosses aren’t. He’ll call you all sorts of names your teacher only dreams of saying to your face, then show you the way to the unemployment line. This isn’t to scare you off of gainful employment, just to encourage you to practice dealing with difficult authority figures, to better prepare you for the future, so you can avoid an emotional outburst at the office.

Lesson 5: Flipping buggers is not beneath your dignity “Your grandparents had a different word for burger flipping – they called it OPPORTUNITY.” So get over yourself and take that job that you think is beneath you. A waiter/waitress position opens up at your favorite restaurant? Swallow your pride and take it. Use that as a stepping stone. The richest men in the world started off as paper boys – remember that.

Lesson 6: If you mess up, it’s not your parents fault “So don’t whine about your mistake – learn from them.” Too many people fall into the trap of claiming “mommy” and “daddy” issues when they mess up. According to Bill Gates, you need to stop spreading the blame around and take responsibility for your failures. Only then do you earn the right to own your successes as well.

Lesson 7: Your folks know something you don’t know “Before you were born, your parents weren’t as boring as they are now. They got that way from paying your bills, cleaning your clothes and listening to you talk about how cool you think you are. So before you save the rainforests from the parasites of your parents’ generation, try delousing the closet in your own room.” Self-explanatory.

Lesson 8: Your school may have done away with winners and losers, but life has not “In some schools, they have abolished failing grades and they’ll give you as many tries as you want to get the right answer. This doesn’t bear the slightest resemblance to ANYTHING in real life.” Only the strong survive. This doesn’t mean that it’s okay to do whatever it takes to come out ahead – the end does not justify the means. It just means that you need to keep the big picture in mind – to remember that while it’s okay to do your best, it’s better to always ensure that you go the extra mile to prove yourself.

Lesson 9: Life is not divided into semesters “You don’t get summer off and very few employers are interested in helping you “find yourself”. Do that on your own time.” This is one thing most students don’t realize. The real world won’t give you time off to recoup your strength. Once life starts it just goes on and on, and on. The sooner you shift your way of thinking from seeing your holiday as time off, but as time to be spent making something worthwhile of yourself, the easier the transition to real life will be.

Lesson 10: Television is not real life “In real life, people actually have to leave the coffee shop and go to jobs.” This applies to more than just an episode of friends. Life seems a lot easier on TV than it is in real life. Sounds like common sense, but you’d be surprised at how many people expect to sleep in every morning and still be able to afford that dream holiday.

Lesson 11: Be Nice to Nerds “Chances are you’ll end up working for one.” Laugh all you want, but he showed that this is a very real possibility. That book worm you keep picking on for choosing the library over a twerk session could end up being your boss in the future, so be nice.

(Source: Dig Philosophy)

The KNBS Must be Wrong on Reporting a Reduced Cost of Living

I really love statistics, especially when it  "shows" that: "The cost of living, in Nairobi Kenya, in the month of October dropped 6.4 per cent compared to September."

Whether or not the Kenya National Bureau of Statistics 'cooked' the figures is an argument for another day. The least convincing, however, is the reasons for the said reduction in cost of living.

KNBS say notable reductgions in the prices of kerosene, electricity, and cooking gas contributed to the change. Seriously?

“During the month, housing, water, electricity, and other fuel index declined by 0.16 per cent over the same review period,” said Zachary Mwangi, acting Director General, KNBS.

KNBS further observes that although forex adjustment charges increased from Sh1.39 to sh1.46 per Kwh (I really do not know what that mean), fuel cost adjustment charges on the other hand decreased from sh5.43 to 5.18 Kwh of electricity consumed.

For them, “This led to slightly lower cost of electricity in October 2013 compared to September 2013,”.

During the month, they say, transport index decreased marginally by 0.05 per cent mainly due to reduced prices of petrol and diesel.
Now I wouldn't argue about the reduction in transport, as I am yet to own a car. But for public transport comuters like us, the change in transport may only be attributed to luck.
The reduction in prices of gas and electricity is the joke of 2013. After the Government/treasury slapped the whole nation with a VAT on almost anything, what shocked me most was the sharp increase in gas and electricity prices.
In September, I refilled my 6kg gas cylinder at  ksh.1150. Come October, i was forced to part with 1350 for the same amount of gas. If thats a price reduction, then a pitty my primary maths teacher.
Again in September, I paid ksh. 630 for 44.9 units of electricity while in October, 2013, i paid ksh. 650 for 38.8 units of electricity.
My message to statisticians, you can cheat me on matters politics or relationships but when it come to money, it pains.
I now understand why so many people lost faith in pollsters who projected a landslide victory for then PM, Raila Odinga, only for him to be floored UhuruRutu alliance in the first round.

The 5 Golden Steps of Personal Finance

There are numerous words, phrases and quotes associated with personal finance, including investment options,  saving, budgeting, bonds, IRAs, loans, mortgages, refinancing, shares, credit score, debt, social security, mutual funds,  stocks, stock market, bond market, financial goals, portfolio balancing, insurance, interest rates and enterprenuership. Which is the reason most of us have trouble understanding personal finance.

I think futher complicating this important issue beyond our understanding, is one of the reason most of us languish in poverty and debt.

That said, if you really want take control of your finances and  manage your money better, you need to be familiar with these terms.

I know, it sounds scary and crazy, but believe me it is not as complex as you have been made to think, if you can remember this equation:

Make More  Money+ Spend Less + Save as Much as You Can = Better Money Management

In this post, I would like to make your financial management easy to understand and undertake. And to be honest, I think it’s fairly easy to understand what personal finance  is once you put aside all the big words the so called gurus and financial advisors throw at you.

Financial Planning

Now, whether your aim is to increase your net worth, become debt free, retire early, payoff  college loans or credit cards, or simply to better your money management skillsy, you need an action plan.
Personal finance planning comes down to 5 steps. Get them right and you are golden.

1. Assessing Your Financial Situation. First, you need to sit down and figure out your financial situation, how much you earn, how much debt you have, what is your expenditure, how much you have managed tsaved up etc. You can employ a software to do that, or you can do it the old fashion way using pen and paper. It doesn’t really matter how you do it, the important thing is that you do it.

2. Setting Up Your Financial Goals . Just like all other areas of life, financial goals will help keep you on track. The goals can be short term, medium term or long term. For a biginner, I would start with very small and achievable goals that can be accomplished fast. Reaching short term goals are easier and helps boost  your confidence, giving you more motivation to keep going for the long run. A short term goal, for example, can be saving money to pay off a small credit card loan.

3. Creating a Financial Plan. The plan is simply your road map for achieving the goals set up in step 2. It's your  blue print, your guide. It doesn’t have to be complex. Simply write down what you need to do in order to reach each of your goals. For instance, if you owe $600 on the credit card you are trying to payoff, and you want to pay it off in 12 weeks time, you will need to save $50 weekly.

4. Taking Action. You can plan until the cows come home, but if you don’t act, your dreams are not going to be realised.  The most important part here is discipline. You must be committed if you want to accomplish your goals. Following our previous example, you would, come what may, put  aside $50 every week so you can pay off that credit card in 12 weeks time.

5. Monitoring & Changing the Plan if Necessary.Your car unexpectedly breaks down and it will cost you a $2000 to fix it, your working hours get cut down, life is hectic and no matter how much you plan, unexpected things will happen and you will have to deal with them. Now, you can either allow it ruin your plan, or you can simply re-examine your financial situation and make necessary adjustments so you can proceed. Nonetheless, if you want to reach your financial goals, you need the second choice.

Where to From Here?

Start by browsing mysensiblecent.blogspot.com, use our page links to find specific topics of your interest. You will find advice, tips, and step by step guides on everything from ways to make that extra cash, save for and on everything life throws at you, becoming debt free, insurance credit cards, early retirement and much more.

Read, learn and act. That is a sure way you are going to get your personal finance in order and become a better manager of your money.

9 Ideas on How to Succeed in Business

Architect John Kithaka began his journey in business immediately after high school at age 18. A small farming venture in his rural Kenyan hometown with US$70 as capital from pocket money his parents gave him, built his foundation in business. Today, at 40, Kithaka is the CEO and founding member of the Fountain Enterprise Programme (FEP) Group of Companies.

The group, made up of 18,000 Kenyan shareholders, has made investments in 14 companies worth $18.3 million in the financial, media, hospitality and education sectors. Despite running several successful ventures while in university and immediately after graduation, Kithaka established FEP out of a “burning desire to create a club of tomorrow’s billionaires”.

Kithaka draws a lot of inspiration from his profession as an architect, insisting that he never invests in anything until he has laid a solid and unshakeable foundation. He also must have a picture in mind of what the end project will look like and whether it will be sustainable several generations down the line.

Speaking to How we made it in Africa’s Dinfin Mulupi, the charismatic entrepreneur shared his advice to other entrepreneurs on how to be a success and maybe even a billionaire.

1.Think entrepreneurial: In an era where young people aspire to be wealthy and live in the fast lane, Kithaka advised that there is only one way to get there: through entrepreneurship. “We need people who don’t think of just being a pilot but also owning the plane; owning banks not just being bankers; and owning the hospital instead of becoming just doctors,” he said.

2. Do not go it alone: The FEP Group has 18,000 shareholders and expectations of being worth hundreds of billions (Kenyan shillings) by 2016 when its businesses mature. Kithaka argued that one of the biggest mistakes African entrepreneurs do is “going it alone”, a culture he said needs to change. “Billionaires never have a business called ‘mine’. Are you in cooperation with others such that you can get out and that business will run smoothly?” Kithaka said entrepreneurs should tap the power of many and engage positively with each other. “Great minds don’t compete, great minds pull together,” he added.

John Kithaka, CEO FE

3. Seize opportunities: The world’s most successful people, whether in business or politics, have made it because they recognised opportunities only few could see and turned challenges into breakthroughs. Kithaka recalled that while he was at university, the government announced that food prices at the university cafeteria would be increased. “I knew for sure, students would not be able to afford the food. I saw an opportunity glaring. When schools reopened, I transferred a kiosk I had in Nairobi town and brought it to the main campus to offer students alternative food. That was the beginning of my breakthrough. That was a real opportunity,” he said.

4. Work smart: “From mathematics I know, no man can make himself a billionaire by working hard,” said Kithaka. “It is only by working smart that you get there. You would need to own companies that make billions,” he explained. Everywhere in the world, Kithaka said, it is the poor who work very hard and very long hours looking for money in the wrong places.

5. Get into business early: Since his passion has always been in entrepreneurship, when he joined university, Kithaka had to make a choice between getting a first class (equivalent to an A) or coming out rich. “I was very sure I did not want to be an employee and therefore I was not keen on getting a first class. I did business while I was in school, bought a car and even registered my own architectural firm two years before graduation,” he recalled. By the time he graduated, his architectural firm had a good reputation and work experience and he was well on his way to establishing the FEP Group.

6. Invest in sustainable ideas: According to Kithaka, if you can’t see your business or wealth 70 years from now, then there is a problem. “You need wisdom in what you are doing such that 70 years from now you will have a solid base. In your mind, you should make sure that your business will not collapse in your old age.”

7. Be committed: It sounds like a cliché but Kithaka argues that his success was inspired by a vow he made, and stuck with, before turning 18. In his last year of high school, Kithaka promised his father that he would never ask for pocket money again. “It was a commitment that I would look for my own money. This was an inner drive. I did business and by the time I joined university 18 months later, I had three years worth of school fees,” said Kithaka.

8. Put your money to work: Kithaka noted entrepreneurs should go looking for ideas, not money. According to him, the poor look for money and take it to the bank where it will be safe, while the rich see the bank as the place to borrow money. “People don’t have money problems, they have idea problems. All you need is an idea and you will go to the bank and they will give you money,” he added.

9. Think long-term: When Kithaka started calling people in 2007 to invest in FEP and gave them an idea of what the group would achieve by 2016, it was only those who could see nine years ahead that invested.

“Wisdom goes for visionary people and visionaries are those people who see [further] than others can. You either see it or you don’t. A true investor understands tomorrow,” said Kithaka.

[Courtesy - How we made it In Africa]