Marketing services group Scangroup Limited has rebranded to WPP Scangroup Limited following a merger with WPP plc.

The firm said adoption of the new name signifies a shared vision aimed at boosting the fortunes of both companies.

“The synergy from the coming together of these two great firms will significantly transform the future of marketing communications across this continent. This is aptly captured by the famous African proverb that says if you want to go quickly, go alone. If you want to go far, go together,” Scangroup chief executive Bharat Thakrar said in a statement yesterday.

He said the two companies are now fully together sharing values and core principles for developing marketing communications across sub-Saharan Africa and a laid out framework on how this can be achieved. WPP Scangroup, which is a subsidiary of WPP, is the largest marketing and communication group that operates a multi-agency model across multiple disciplines in sub-Saharan Africa.

It is also the only marketing services that is listed on the Nairobi Securities Exchange. Scangroup was founded in 1982 when it started as a small independent advertising agency that was then known as SCANAD.

It has over the years grown its services and products to include media planning and buying, public relations, market research, experiential and digital. This is besides developing affiliations with international agency groups such as J Walter Thompson, Ogilvy and Grey.

In 2005, Scangroup was created as a structured corporate entity to house all these diverse companies. It was listed on the NSE in 2006.
The firm and WPP entered into partnership in 2006, months after its listing on the NSE. This deal included WPP taking up a minority stake in Scangroup as part of its efforts to expand its footprint in Africa.

In 2013, WPP acquired additional shares in Scangroup Limited in Kenya, increasing its interest to 50.1 per cent.

Even with the sustained heartbeat, one can easily tell that the once yummy girl – Uchumi Supermarket – is struggling to live, probably crafting her will, whose pages will be shared among the many suppliers she owes.

She has been bleeding for a number of years now, and to say that she is now pale is an understatement. That girl is not only withdrawn but has lately been forcing a vague smile, a clear sign that all the plastic surgeries in form of restructuring and the numerous financial injections did not work.

As we prepare for a fundraiser or a burial ceremony for Kenya’s only publicly traded retailer, many questions are being asked. Was Jonathan Ciano a mortician? Or was he a neurosurgeon who delayed his exit from the theatre, only to carry the cross for the nurses who forgot to dispense the follow-up doses.

Either the PR practitioners locally known as snake charmers had a role to play in this. What did they do to engage and manage the internal stakeholders of this giant retailer?

World over, the components of a strong company – in any industry – can be focused down to four critical areas. Good management, good products/services, good customer service and good employees. As a business owner, the first two are relatively easy to control. But how do you assure that your employees treat your customers in such a way that they stay happy and repeat customers?

Unhappy employee = unhappy customer

Customers can tell in an instant whether they are dealing with a happy or unhappy employee. Unhappy employees often take out their frustration and unhappiness on the customers. This happens when we you have to pack your stuff at the tills, break your nails as you rummage through your handbag for the elusive coins as well as when a 45-minute shopping walk around the supermarket yields twenty percent of your requirements.

A happy employee will do all he or she can do make a customer happy. They will get the trolley across the road to where you have parked; they will save you the hustle of explaining why milk should not be packed alongside mosquito coils. They do all this because they want to retain their job and they have an interest in seeing the company flourish.

Regardless of how much you pay your employees, good companies understand the value of good employees, especially in such a competitive industry. Therefore, each company does everything it can to make its employees happy.

So how does the average company keep its talent happy and productive?

A good place to start is to understand that public relations applies to your employees, as it does to your customers. The company that understands that it’s most valued asset is hardworking, productive employees, will create and implement an internal PR programme to keep its employees in great form.

Aside from the obvious – competitive salaries, benefits and bonuses – employees want to know that their work matters, that they are appreciated and that they will be rewarded for their effort.

That is why many companies have instituted reward programs that are administered on a team rather than an individual. It is often risky to pick out a few employees and reward them. This creates animosity and completion which is counterproductive. If a company division or team is productive, all members should be rewarded in some form or another.

The most effective internal brand engagement programme for employees costs less and is easier to implement. This simply involves the boss or manager sitting down with an employee and telling them that they are doing a good job and it is being appreciated. Especially for younger workers who are trying to establish careers, this works wonders. The fact that their boss has taken time to tell them they are doing a great job and the company appreciates them is often worth more than a cost of living raise.

Certainly backing up praise with money is better and expected, but taking the extra time to give each employee some personal attention is something too many companies neglect, thinking that wallet size is everything.

That fat cheque is a definite yes, but so is identifying personal achievements and contributions to the company. Whether it is tangible rewards such as a raise, personal attention, company outings or whatever, every company that values its business will value its employees and go the extra mile to assure each employee knows it.

Barasa is a public relations and communications practitioner based in Nairobi. @barasapaul on twitter

An online survey of Africa’s best national reserves has ranked the Maasai Mara eighth in the top 50 parks.

According to the study by SafariBookings.com, other Kenyan reserves in the top 50 include Pejeta Conservancy, Samburu National Reserve, Tsavo West, Amboseli, Tsavo East, Lewa Conservancy, Meru National Park with Lake Nakuru.

Tanzania’s Serengeti took first place with an impressive rating of 4.89 out of 5, followed by South Africa’s MalaMala Game Reserve, and Okavango Delta in Botswana.

“South Africa held four of the top 10 spots, more than any other country; however, its Kruger National Park only ranked 20th, which was a great surprise, as Kruger is highly regarded in the safari industry,” a statement from the organisation said.

The report further reveals that the sheer variety of wildlife, abundance of predators and spectacular wildebeest migration are valid reasons why Serengeti deserves this ranking.

“Serengeti was rated best for its variety of wildlife, abundance of predators, and spectacular wildebeest migration. Legendary MalaMala Game Reserve offers some of the best wildlife viewing of Africa, and its luxury lodges cater the rich and famous,” it stated. “The Okavango Delta is regarded for its scenic beauty. Its annual flooding transforms this otherwise desert area into a wildlife paradise of tranquil waterways.”

Kenya has almost 17 percent of the top 50 parks, but only the Maasai Mara National Reserve is in the top 10.

Zimbabwe’s Mana Pools was ranked 4th, which is significant when looking at all 138 parks that were considered for this top list.

Only parks known for classic wildlife viewing safaris were considered while those known only for their scenery or typical gorilla tracking parks were not included.

Over 1,400 specialised safari operators from Africa and western countries offer their safari tours on the SafariBookings platform.

SafariBookings.com conducted an analysis of 3,008 reviews to put to rest the question of which park was best for African safaris.

In total, 138 parks of the eight major safari countries were in consideration for a place in the top 50.

The analysis was based on 3,008 park reviews collected through the SafariBookings website.

Of them, 2,234 reviews were contributed by safari tourists from 63 countries around the world.

The remaining 774 reviews were written by renowned industry experts, most of whom are guidebook authors working for Lonely Planet, Rough Guides, Frommer’s, Bradt and Footprint.

Barely five years after emerging out of receivership, there are signs that Uchumi supermarket chain could be headed back into troubled waters, this time for worse.

The board, which met Monday terminated the contract of the supermarket’s Managing Director Jonathan Ciano citing gross misconduct and negligence and appointed Uchumi’s General Manager Operations Owino Ayodo as acting CEO.

Also affected by the latest board initiative to restore market confidence is Chief Finance Officer, Chadwick Omondi whose contract has also been terminated and the suspension of Human Resource Manager Micheal Kibe. The board’s decision comes at a time when Ciano’s contract was set to expire next month.

Mr Ciano helped to turn around the retailer from an insolvent entity after it chalked up losses and failed to pay suppliers in 2006. Since its turnaround, Uchumi has only paid dividends once out of the results of 2014, largely because it does not have the money. Supplies have been cut and for the critical ones, the management has had to beg for time and has even renegotiated payment terms.

Part of the trouble started after senior managers began supplying most of the goods sold in the dozens of outlets owned by Uchumi. It started with a trickle, but with time, the trend got so ingrained, leaving Ciano helpless. With senior managers doubling up as suppliers, it became difficult to separate business interest and self-interest.

According to our source, by virtue of their positions within the company, payments for deliveries associated with them were fast-tracked and often at ‚exaggerated prices‘. The trend is currently being investigated by the board, which has indicated it may initiate criminal proceedings against those found culpable.
In that arrangement, Uchumi bought and possibly still does, buy commodities at prices that are higher than the eventual selling prices. That would translate to outright theft from the company owned by tens of thousands of shareholders, including the Government. Sought for comment, board chairperson Khadija Mire had earlier said that Ciano had gone on leave. “We approved his leave, he has been working for years and he surely needs a break like anyone,” Ms Mire said.

She, however, did not deny that there are investigations relating to misdeeds by some managers. On his part, Ciano said he had taken time off his busy schedule to relax. “I have not taken leave for the past nine years, now I have to,” Ciano told said before the board sealed his fate in Monday’s meeting where the action to terminate his contract was taken. But when asked whether the decision to take leave was prompted by the company’s board, pending investigation, he said: “It is absolutely ridiculous that you are telling me that. What investigation”

He, however, said that some new directors in the board do not understand the business model of the company. He said the new set of board members do not even know how far he had brought the firm. He, however, did not name the directors who are opposed to his continued stay at the helm.

The board of directors has reportedly cracked the whip and an insider who requested not to be named because of the sensitivity of the story confided that Ciano was forced out during a board meeting, which was held last week. “He is not coming back,” said our source. The managing director was accused of knowingly allowing senior managers to enlist as suppliers of the supermarket, and in the process, helped perpetuate a culture that allowed conflict of interest to reign over sound business decisions. “I have managers who are suppliers, and that is a fact we have only come to know about very recently,” said Ciano, adding that something was being done about this.

Uchumi may have embarked on a process to clean up the mess, but it should be obvious that something is amiss, whether Ciano stays on or not. Our source played down suggestions that disagreements may hit the board, saying that official communication would be relayed within the week when a possible replacement for the MD has been sought, even if it would be on a temporary basis.

Resistance from the board would not augur well for any chief executive anyway, far worse when the entity in question is bleeding like Uchumi. The company reported a Sh263 million loss in the half year ending December 2014, down from a Sh106 million profit in the previous comparable period. High finance costs, salaries and rent were cited as the reason for the falter. The Kenya Commercial Bank (KCB) and Co-operative Bank of Kenya have jointly lent Uchumi over Sh1 billion to help cure cash flow problems that had threatened to end deliveries.

A supplier like the Kenya Power, which had a working relationship with the firm in which Uchumi sells its prepaid electricity tokens and collects payments for postpaid customers, has severed ties with the chain over delayed payments. Loss of the dealership, which Uchumi has held for a couple of years now could be catastrophic as it signals the loss of a significant revenue stream. Kenya Power informed its customers that due to unavoidable circumstances, bill payment through Uchumi supermarkets had temporarily been suspended.

The MD of the utility firm, Ben Chumo said the relationship with Uchumi was to the extent that the retailer had been collecting payments but not transmitting the cash – instead using it to trade, without the firm‘s knowledge and permission.

It had been happening for quite some time, he added, and attempts to remedy the situation did not bear any fruits. Mr Ciano put up his strong side, during the interview, and expressed optimism that top officials from the two firms who had met severally to iron out the issues would amicably settle the problem. “We had a shortfall in the rights issue which caused us a little cash shortage. This meant we were unable to pay Kenya Power promptly,” said Ciano.

The incident is just one of the pointers to the bigger underlying problems that Uchumi is dealing with financially. Last weekend, the company had to issue a public apology to its shareholders for delays in paying out the dividends declared in November 2014. “The delay was caused by challenges ranging from tight scheduling, printing to postage, of our selected service providers beyond our control…” the company said in the notice that would move the payment date forward by two months. It is plausible to link the delayed payment to the tight cash flow situation. Ciano said the board had approved the company to seek a loan of Sh500 million, and he had been given the mandate to find the cash.

“I will be away in London for an investor briefing this week, which should tell you we are making some progress.” Uchumi just raised nearly Sh900 million from a rights issue in December, but the funds came through in March. But the issue had been planned for a much earlier date, previously slated for 2012 but had to be delayed because the majority shareholders were not ready,” Ciano said.

It is projected that the loan would enable the company remain afloat, and avert the tragedy of 2006 when it was forced to close down due to insolvency. Its shares were suspended from trading at the Nairobi Securities Exchange, and only made a comeback after more than five years in the cold. Thousands of workers lost their jobs temporarily in a window that enabled rival retail chains to close in on Uchumi and take off with big chunks of its market share. Before the fall, several top managers were arrested and charged for abuse of office, but later released for lack of evidence.

The shareholders were left licking their wounds as a turnaround plan was hatched with the State pumping over Sh600 million in the revival plan. Mr Ciano was then brought in to midwife the turnaround that has been cited severally as miraculous. With his sacking Monday, things have gone full circle for the chief executive who says his record speaks for itself. Half of the board members are new and are the ones who want a change, according to Ciano. “They are still undergoing orientation,” he laughed.

Prominent shareholders, including the Kenya Wine Agency Ltd, have dumped the company‘s shares in the recent past, possibly a pointer to diminishing confidence in the business. The country’s retail business has seen major transformation in the last decade. New arrivals from other countries are also making big statements through new outlets, as they fight for a slice of the business.

Yesterday, Uchumi CEO Jonathan Ciano was fired as the head of Uchumi Supermarkets. Mr. Ciano has since comes out to state that he knew he would be sacked. He said that his die was cast once Jamii Bora Bank became the largest shareholders and got a seat on the board.

“I have been informed of the same (sack) and am comfortable with the decision that has been reached. As you may be aware new shareholders came on board and they have the right  to make realignments that  are in line with their market and growth expectations.”

Mr Ciano said he will not pursue any legal action for termination of his contract and will be paid three months’ salary in lieu of notice, adding that he has no hard feelings about the decision.

“I leave Uchumi a happy man having played a key role in turning around Uchumi. It has not been an easy journey and I hope the next CEO will take Uchumi supermarket to the next level.”

Signs that Mr Ciano was set to exit began to show in inability to handle suppliers yet the retailer had borrowed loans and funds from shareholders in the 2014 rights issue that raised Sh896 million. The board said it had sent Mr Ciano and the chief finance officer, Chadwick Omondi Okumu, packing for “gross misconduct and gross negligence” that has left the listed retailer owing suppliers Sh1 billion.

“The board has taken decisive action to address the challenges we are facing and has a clear roadmap to return Uchumi Supermarkets to sustainable and profitable operations,” Uchumi chairperson Khadija Mire said at a briefing on Monday.

Owino Ayodo, the general manager, operations, has been appointed the acting chief executive of the listed retail chain as the hunt for a new head and CFO begins. The human resource manager, Michael Kibe, has been suspended.

In firing Ciano, Sam Kimani, a board member representing Jamii Bora Bank, the single largest shareholder with a 15.8 per cent stake in the retailer, said that failure to pay suppliers despite the rights issue cash had catalysed the board’s decision to change Uchumi’s top brass.

“We are trying to figure out why suppliers are not delivering yet we had raised money through a rights issue to pay them,” said Mr Kimani. The retailer additionally took a Sh405 million loan from the Co-operative Bank to pay suppliers and a Sh600 million loan from KCB to fund expansion.

The listed supermarket chain made a half-year loss of Sh262.3 million for the year ended December 31 2014 compared to a net profit of Sh106.9 million a year before. Sales dropped to Sh6.8 billion from Sh7.2 billion over the same period.

Uchumi has been struggling to pay suppliers since late last year and the board said it plans to sell non-core assets worth Sh2 billion – such as land- to pay suppliers, the lifeline in a retail chain.

The board ruled out a possible government bailout or the sale of the company to a competitor, insisting that the company could still be salvaged.

One of its priorities is to return key branches at Sarit Centre, Hyper, Langata Hyper, Ngong Road Hyper, Capital Centre and Koinange Street back to normalcy.

Uchumi has failed to return to its glory since it got relisted on the Nairobi Securities Exchange (NSE) in June 2011 after a five-year suspension, following gross mismanagement that saw it close shop in June 2006.

Ironically, it was Mr Ciano who resuscitated Uchumi, with the help of a government bailout and suppliers, who agreed to convert their debt into shares.