Friday, April 19, 2024

Young Kenyan with Sh. 509 million annual turnover starts digital sacco

The following profile was first published in the MediaMax’s PD journal.

Dennis Makori’s, journey into the world of technology begun in a small village tucked somewhere in Kisii county. Makori, a son of peasant farmers did not have the same privileges as some of the big names in tech and he struggled through primary school and secondary school and eventually got a place at Moi University to study Electrical and Communication Engineering.

Today he is co-founder and CEO of Onfon Media Group with a turnover of Sh509 million annually. His firm deals with basic messaging applications like bulk SMS and short codes, mobile banking solutions, media production, Enterprise Resource Planning (ERP) and digital signage.

Leading commercial banks, government agencies, and media houses are some of his clients. His latest ‘baby’, digital sacco is something that is close to his heart.

Makori, 35, witnessed first-hand the struggles that small-scale farmers and upcoming entrepreneurs went through in Kisii, especially their aversion for saving their hard-earned money and taking out loans in banks.

This is what prompted him to start a digital sacco by leveraging on the effectiveness of the mobile phone and giving the people considered to be at the bottom of the pyramid an opportunity to grow themselves. Makori says he learnt about the concept during a training tour in Barcelona, Spain in March this year.

“It was an eye-opening idea that I felt was great for the Kenyan market. Besides being the first-of-its-kind in the region,the local mobile industry is lucrative,’’ he says.

Based on research that shows that only 35 per cent of Kenyans have bank accounts and a negligible number are in saccos, Makori knew the idea of a digital sacco was ripe.

The organisation’s head of operations, Francis Onje contends that the idea was basically to try and bridge the gap between the poor and the rich. “I think we need to cater for the lower bracket. We have a strong presence around the country, which is encouraging,’’ he quips.

The sacco currently has over 7,000 members. The Digital Sacco will be launched next year. The system basically uses an integrated USSD system developed by the in-house team of technicians and rides on the platforms of the three local telecos networks.

“This system was tested inhouse with our staff to measure its suitability before actual roll-out. It is set in such a way that both Kiswahili and English languages are incorporated in the simplified menu.

Since we are registered and are in tandem with the Co-operative Act, we can only work within a given framework. The point is that our customers enjoy unlimited service 24 hours a day,’’ says Onje.

The firm is at an advanced stage of patenting the idea, even before going ahead with the ambitious plan of targeting a million users in the next six months.

The service can be accessed using any phone. “As long as there’s good network, even villagers can use and gain from this front.That is the advantage we have and seeing as the three mobile providers cover virtually all corners, then we see this tool as extremely viable,’’adds Onje.

A UK firm is running the server for them and is in-charge of technical feedback. The paperless concept serves customers within two minutes, provided they have the required number of guarantors. “ We have a team on 24 hour surveillance to address issues of security and capacity,’’ says Onje.

He, however, admits that there is still some skepticism in the market surrounding the reliability of cash transactions and reliability of the service.

The digital sacco is currently targeting different segments including Small Medium Enterprises, corporates, investment groups and even individuals. Makori said: “We can see this being the online bank of choice given its acceptability and reach.

There is every possibility that we can take over the whole of the continent and Middle East but we are making calculated systems’’. Onfon Group had done its trial run using its other wings in Tanzania, Democratic Republic of Congo and Nigeria.

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