Kenya Endorsed As a 'Hotbed' of Innovation

US President Barack Obama has endorsed Kenya's innovation powerhouse status and regional economic might during the opening of the 6th Global Entrepreneurship summit.

The US leader said Kenya has made significant mileage in innovation that has been applied in various parts of the world.

"Kenya is leading the way. Today, Kenya is the largest economy in East Africa. High speed broadband and mobile connectivity are on the rise, unleashing the entrepreneurial spirit of even more Kenyans. Every year around the world, millions of people save money with M-Pesa and it is a great idea that started here in Kenya," President Obama said.

He said that Kenya's crowdsourcing innovation, Ushahidi had transformed electoral process in Zimbabwe and Bangladesh.

Kenya was also praised as a country with a bright future in innovation.

"Here in Nairobi, startup incubators are nurturing new businesses every day, each with the potential to be the great next Kenyan innovation," Mr Obama told delegates.

M-Kopa

His Kenyan co-host President Uhuru Kenyatta also added to Kenya's prowess in innovation referring to some of the successful tech ventures that have transformed challenges to business opportunities.

"Kenyans are using their mobile phone airtime and this inspired the development of M-Pesa now the world's leading money platform that has led to increased financial inclusivity in Kenya.

M-Kopa Solar is anew Kenyan innovation that has grown the benefits of solar lighting to thousands of rural homes, enabling our children to study after school and relieving our mothers from the burden of fetching firewood and burning kerosene late into the night," Mr Kenyatta said.

The endorsement from the US president now puts Kenya at an elevated focal point in the innovation space with several innovative ideas set to receive financial and technical support from commitments made at the GES.

M-Pesa has been recognized as a revolutionary money transfer service that has deepened financial inclusion and transformed the cashless economy.

The phone-based money transfer service was the biggest driver of Safaricom's phenomenal growth in its latest full year financial performance.

The service has 13.9 million active customers served by 85,756 agents across the country. The mode of payment is accepted by 50,000 merchants in various sectors of the economy, from retail outlets to hotels and petrol stations.

Revenues from M-Pesa increased by 15 per cent from the previous financial year to hit a high of Sh32.6 billion.

"M-Pesa, now contributing 20 per cent of total revenue, continues to be a significant factor in our growth," said Chief Executive Bob Collymore during the announcement of the results in May 2015.

The earnings represent a 38 per cent jump from Sh23 billion that the company made over a similar period the previous year

The service has expanded to include a payment platform called Lipa Na M-Pesa. Payments worth Sh11.6 billion have since been recorded through the platform as another saving and borrowing arm, M-Shwari, registered over 6 million active customers depositing Sh6 billion and borrowing Sh2.1 billion.

Safaricom spent over Sh7 billion to move M-Pesa servers from Germany to Kenya in April effectively making Kenya a host to a globally recognised money transfer network.

POWERED UP HOMES

The M-Kopa which got President Uhuru Kenyatta's mention has powered up 200,000 homes across East Africa serving one million people with affordable lighting products.

The service which another first from Kenya doubled the number of homes connected to its solar home systems in the past eight months.

The firm's Managing Director and co-founder Jesse Moore said over 500 solar lighting sets are now being sold daily across the region.

"It took us two years to connect our first 100,000 homes and just eight months to connect our second 100,000 homes. We are pushing hard to grow even faster and reach our goal of one million homes by the end of 2017," Mr Moore said.

It has a network of over 1,000 direct sales agents and 85 customer service centers across East Africa.

South Africa, Egypt and Nigeria are some of the closest rival countries on the continent which give Kenya competition on the innovation platform.

Obama's endorsement of the country as an innovation hub is likely to attract more venture capitalist to set base in the country especially after the GES which has brought over 2000 investors from around the world.

The country's innovation climate is promoted by the increasing internet access and the quick adoption with many Kenyans connected to the internet and majority now using smart devices.

At the just concluded Pre-GES summit, youthful Kenyans showcased several innovative ideas including security robots to mobile phone voting systems.

The country has however delayed the introduction of ICT learning materials in primary school, a move that may have counted much driving up the country's position as an innovation hub in future.

The government's ambitious energy infrastructure and the construction of the Konza techno city will push Kenya even higher in the ranking among the global innovation hubs.

SOURCE:DAILY NATION