The Power of Internet for Savvy Investors-Part 1

"Ordinary people when working together can do extra-ordinary things"

~Senator Barack Obama, US President

Brief Background

Given that the Internet is a network of computers on a global scale, the world is a click away on your desktop. As a tool for leverage, Internet opens up an avalanche of information as well as potential worldwide networks if well utilised.

In this first segment of my post I dwell on how Kenyans have so far made use of the emerging technologies as the media converge on the Internet. The political boundaries that separate us are just that-mere boundaries for political administration by sovereign states.

Netizens now belong to a new world order, thanks to the Internet, people can now exchange information freely. This has also opened up enormous opportunities that a Savvy Kenyan should grab. You savvy enough read on...

Kenyan Budget-What is in it for savvy Kenyans?

As I was thinking of Internet as a tool of leverage, this week brought me both joy and sadness following the Budget speech that was delivered by Finance minister Amos Kimunya on Thursday. As usual, Kenyans had their say about the Budget speech including the MPs who may have been asleep during the usually long and winding speech of how the Government of Kenya would be spending our taxes. That aside, Information Technology received a boost as the minister removed taxes-notably VAT and Import Duty on IT related accessories and telecommunication equipment to boost the industry.

Now, how is it important to you savvy Kenyan? This means that many Kenyans would be able to invest in IT industry and related services that would promote the use of Internet across Kenya. The Government is also in the process of launching digital villages across Kenya to help boost Internet access by Kenyans. This, if well implemented, would help bridge the digital divide between urban Kenyans and the rural folks.

Mobile Telephony

Hitherto, Internet services are mainly confined to Kenya's main towns. However, good news is also emerging from the mobile telephony sector.

The main mobile technology providers-Safaricom and Celtel including Telkom Kenya have rolled out a host of services that would enable Kenyans to access Internet in their homes and through their Internet enabled mobile phones. With the emergence of 3G technology things can only get better.

However, I am still not happy that we Kenyans-I mean a true Kenyan-not savvy you and I, have found better use for this emerging technology. Going by the perennial network failures especially on Fridays, mobile phones have acquired a new meaning- a very vital tool for dating and planning for Member's day binge drinking.

Binge Drinking

Talking of drinking, it brings us back to the Budget-Beer lovers were crying foul over increased prices as brewers of Chang'aa, the illicit brew containing mainly the poisonous Methane, from Nyanza province of Kenya were all praises of the minister's move-never mind the brew is banned in Kenya-a local daily reported. They brewers said cash strapped Kenyans would flock back for a tot or so of the lethal but potent drink. I bet, it would still be a win-win for both the East Africa Breweries and the brewers of Chang'aa as long as Kenya holds its pride of a drinking nation. Kenyans love their beer and women!

Sex allure on the Internet

Now back to our topic, as for the Internet, many Kenyans are yet to make good use of this valuable tool. Majority of those making use of Internet at home, cybercafes and mobile phones find sex appeal on the Internet too tempting!

We dwell on the subject of how we use the Internet for wrong reasons till the end of the world after all its a global phenomenon.

Part 2: How to make good use of the Internet

Harnessing the Power of Leverage

Leverage is a buzz word for all savvy people out there seeking to hit it big. But a few among us use this powerful tool to achieve personal growth, whether in business or career. In order to understand why some people become rich while others toil the rest of their lives, it is important for you to understand this very potent tool. My favourite author and investor Mr Robert Kiyosaki, he of the Rich Dad, Poor Dad best seller, offers a lot on this subject. Perhaps to understand why I read Kiyosaki and listen to his audio books religiously I would like to share this link. Therein lies treasures of his experience that made him a savvy investor. In fact, as a savvy investor, I am already implementing his wisdom. Guess what-I am soon "firing" my boss as I become financially free. So, where will you be when Savvy becomes the next big thing? In case, you have any queries on the resources available to educate yourself on becoming a savvy investor drop me a line or just Meebo me when I am online.

Recently when the Safaricom IPO was on, many Kenyans turned to one form of leverage to invest-credit. However, as some will tell you, handle credit with care as it is a double edged sword. Its good and bad depending on how you handle it. Given the number of shares allotted to the millions of Kenyans who had to queue for hours on end to invest in what is touted as Kenya's biggest IPO it' s good to note that credit facilities helped many Kenyans get a piece of Kenya's leading mobile provider. But as it is usual with IPOs in Kenya the investors are back to their stock brokers queuing once more for refund cheques!

I had gone to my local bank to consult on credit matters-nothing to do with the IPO! I found a lady customer to the bank who had taken a loan for the IPO making frantic effort to have the refund returned to the bank to offset the loan balance. Definitely many of such investors had no plan B. Again the banks have a new product tailored for Kenyans with excess liquidity from the refunds to "invest" the money into a fixed-deposit account to earn an interest-of course paltry compared to the loan interest! Wondering where I am heading to? Sample this, according to a recent banner headline of a leading newspaper the banks are now recovering their money from those who had defaulted through the usual means-collateral. The reason why this is happening to Kenyans is that majority of us are financially illiterate. Or put it this way, Kenyans would rather borrow millions of Kenya shillings from a bank and "invest" in get-rich-quick pyramid scheme than pay for financial literacy such as investment seminar, read business articles in newspapers or Internet. Reason? They say such undertakings are expensive! For these unsavvy Kenyans I say-if you think education is expensive, try ignorance! Well educate yourself financially as it is the greatest leverage you will need as a savvy investor. Next-The Power of the Internet as a Leverage for Investors in the Information age. Watch this space.

Can 50 Cents Make you Rich?

I took a small break after the "Blog warming" a fortnight ago. Had to deal with the mundane issues of bread and butter.
To cut the long story short I had taken a short break...but while I was away, a news item caught my attention. The Central Bank of Kenya (CBK) made rather a peculiar announcement. Sounds familiar? Yes! Mr. Michael Joseph, the Safaricom CEO, once said that Kenyans have peculiar habits! now back to the CBK story, the bank came out fighting in defence of 50 cent coin that seems to be the only coin available in the major Kenyan supermarkets for loose change. But wait a minute! Why defend such a value piece of coin? The problem is that your local kiosk operator has been declining to accept the coin owing to its dismal value. But CBK says the coin is valid and perfectly so, a legal tender.
prior to the news item, I had been thinking what to do with almost a bagful of coins in my wardrobe where I throw them but forget to walk around with as my local street vendor and shopkeeper see no value in them.
I know many Kenyans are in a similar predicament. On average, we have, let us say about Shillings 20 ($.30) of the coins-rejected by retail traders in Kenya. Supposing only 10 million Kenyans have the coins then that loosely translates to a cool Shillings 10millions (roughly $161,000) gathering dust somewhere in our houses!
I am actually contemplating resigning from my full time job and start a life long hobby of collecting 50 cents from Kenyans who have nowhere to spend them given our busy schedule that leaves us with no time to return them to where they belong-the supermarkets!
Reader, if you read this and you understand that I mean business then send me all your 50 cents...ostensibly for my money recycling (read minting) project ha!
Give me your views on what we could do with the excess 50 cents in circulation that have stuck in our houses. Perhaps we could launch a club-Kenyan Friends of 50 Cents Club-NO RELATIONS with 50 Cents the musician.
Working on first Savvy Kenyan profile. Watch this space.
Have a nice time.

Welcome

I have spent most of today trying to construct this blog in order to start sharing with you important information about business savvy Kenyans out there who have hit it big. Investing is a game that requires your wits-to think of innovative ideas and turn them into a multi-million venture. It is possible. Many Kenyans started small and today they are big. It is worth learning from their experience.

Briefly Savvy Kenyan seeks to debunk the notion that you need money to make money! In my interaction with successful Kenyans -- I mean big time investors that you probably know has shown otherwise. Dream big and set out to achieve your dreams. However, to dream without taking action will only yield a pipe dream. Be a go-getter or to paraphrase a popular hip hop musician 50 Cents -- Get rich now or die trying.

Watch this space! I intend to roll out stories, with your help of course, about Kenyans and other global achievers who dared dream and are now living their dreams and latest news in investment and technology. Your ideas, views and comments are highly welcome! Enjoy!