CPA, Dr. Yussuf Motari

CPA, Dr. Yussuf Motari CPA, Dr. Yussuf Motari is a Certified Public Account of Kenya. He is also a member of the Marketing society of Kenya.

He holds PhD in Business Administration and masters in the same area. He has a desire to work and build SMEs by working with them.

13/03/2024

Is it possible that bad breath has denied us opportunities? How can we help a professional with bad breath?

My consultancy with USAID went down well. Looking forward..
24/05/2023

My consultancy with USAID went down well. Looking forward..

30/11/2022

Talk on Hustler fund by Dr. Yussuf Motari at Ndizi TV.

16/07/2022

Are you struggling with debt?

The sure way of getting out of suffocating and strangulating debts in your life is stopping the use of credit cards and mobile lenders.

These lending forms are characteristically convenient and seemingly cheap but addictive. Getting out of debt calls for tearing down the credit card and closing the mobile apps. This is a very painful operation but necessary.

There is no convenience known to modern man that has jeopardized the financial stability of families, especially the young, educated like the use of credit card and the convenient mobile lenders.

Dr.CPA. Yussuf Motari

11/06/2022

Let Me Die Elsewhere: Paradox of the Middle East Migrations

In history migration of African workers to developed countries is all time high. The flow of immigrants into the Gulf countries from Kenya in now unprecedented with majority of them being women and non-skilled.Concervatively, there are 100,000 Kenyan living and working in the Gulf States.

Local gains on the migrations may not outweigh the the pychological and economic burdens of maltreatment, assault and even death reportedly in the hands of rich but cynical employers in the gulf countries parpetreted by ommisions of the travel agencies and their collaborators. The misrepresentations made to the immigrants continue to lure migrants with the allure of jobs, and, hopefully, greater financial independence in the region.

The adverse reports of mistreatment of migrant workers seem not to be much of deterrent to migration as is the motivation to exit the stifled Kenyan economy, the youth bulge and the endemic unemployment.
The gulf countries; Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates form a homogeneous class of states with Islamic monarchical rule, autocratic political systems and oil-based economies that greatly depend on cheap immigrant workers.

Their philosophy to labour is based on the kafala system, which tie workers to their employers and assimilates them into a situation of ‘structural dependence’. Under the labour system, immigrant workers are exposed to vulnerability and abuse. It is also prescribed that employers withhold foreign workers’ legal status and visa within the contract period.
This provision restricts workers’ mobility and their freedom of association.

Consequently, the workers, women in particular, are easily deprived of liberty and exposed to confinement, underpayment or non-payment of wages, bodily and sexual exploitation.

The increasing feminization of immigration to the gulf explains why more women move to the countries than men. Locally, the clamor for gender equity and increasing foreign remittances promoted by government and civil society spurs the migration of women from Kenya.

As a result, employment bureaus, agencies and brokers that are keen on cashing in on commissions repatriated to them from Gulf for the labour of the vulnerable Kenyans. The agencies and their collaborators have since spread their tentacles from major cities to villages in the countryside with a ready market of desparate citizens.

The kafala system of labour practiced in the gulf limits the local agencies or the Kenyan government from responding to any distress call from the Kenyan immigrants. In this system, a Kenyan immigrant is deemed to be ‘sold’ to the sponsor within the time of contract. The sponsor has full control of the workers regardless of their situation.
Accounts of abuse of Kenyan and other African workers in the gulf is an indictment of the kafala system, as it exposes our friends and relatives to horrendous abuse. Even worse, the accounts speak to the inability of travel agencies, Ministries of Foreign Affairs, Interior and Coordination of Government to confront the challenges of the Kenyan Citizens and demand for reform of the labour system.

It is common for the travel agencies to conduct skills trainings for immigrants before travel, but ignore to incorporate the safety planning component to enable them protect themselves from harm and secure emergency exit in circumstances that lend them to abuse and exploitation.

In the safety plannning, the government can create safe havens for her citizens and be involved in the process of immigration and immigrant tracking. The agencies can also incorporate safety parameter in their pre-travel trainings and nominate a close member of the family in the program as envisaged in the WHO(2014) recommendations.

Additionally, a tracking component by the travel agencies can be used to provide regular reporta on the immigrants which should be shared with the nominated family member.

At the same time , the immigrants an be trained to identify and report potential risks and establish support systems that is critical in averting death, detention or injury. It is important, therefore, that the migrating workers develop skills of using alternative means of communications, familiarize themselves with friendly communities in the gulf or the Kenyan commissions.

When confronted with abuse, the victims should quickly identify opportunities for exit as opposed to developing a wait and see attitude. Friends and relatives are also expected to identify and raise an alarm in case of potential danger to their relatives abroad.

The article was prepared by Dr.Yussuf Motari( Lecturer Kisii University Business School), John Ndemo (Pychological Counseling Expert) and Kevin Nyabuto( Cyber Security Expert).

For feedback kindly feel free write to [email protected] or call 0700600468 or write in the comments section.

In one of the capacity building trainings by Dr. Yussuf Motari. The Trainees are now empowered, let them implement and g...
04/05/2022

In one of the capacity building trainings by Dr. Yussuf Motari. The Trainees are now empowered, let them implement and grow.

24/04/2022

Being Disinherited: The Kikuyu Community Perspective

In the modern Africa, tribal tags elicit connotations of ethnic conflict, rivalry or theft. It is rare to find unity of purpose and collective resilience like that of the Kikuyu community; one of the 42 tribe living in Central Kenya. The Kikuyus are the largest community in Kenya with vast political and economic dominance.

Their cultural and historical identity is pegged on the strong belief of collective prosperity. This energised their resolve to build a strong business ecosystem for nurturing both family and communal businesses. Members were encouraged to pull resources into business ventures. As a result, they organised themselves into cooperatives societies and formed companies.

Therefore, an army of kikuyu innovators and entrepreneurs was born, grew and nourished in the friendly business ecosystem. The businesses drew their market from the members of the Kikuyu community under the ‘buy kikuyu build kikuyu’ philosophy of self-preservation.

In the 20th century, the Kikuyus formed start-ups which grew into notable business enterprises as evidenced in the case of Equity and Family bank and many other kikuyu owned enterprises. Their businesses then obtained affordable capital from the banks and cooperatives to enable them thrive. A proliferation of enviable enterprises emerged in the diverse frontiers of the economy including manufacturing, media, construction, real estates among others.

This is how business Patriarchs like Njenga Karume, Dr. Paul Mwangi, Chris Kirubi, Stanley Githunguri, SK Macharia, George Njoroge and the Matriach Mama Tabitha Karanja emerged. Their businesses epitomise the strong will to engender entrepreneurship. Although the growth of the ethnic community into business dominance is ostracised, the businesses are an embodiment of national growth, unity and hope to the millions of ‘hustlers’ living in Kenya.

The enterprises are now in the hands of the 2nd generation. For the family enterprises, it is either the sons or daughters running them. Yet so many of the prominent businesses in the early 50s and 60s are no more or struggling. A myriad of challenges continues to bedevil the business in the hands of the current generation.

First, many of the families have grown, multiplied and acquired different interests apart from business. Secondly, a number of them do not possess acumen to run businesses due to poor succession planning. Thirdly, generational differences and the wave of technology is sweeping their traditional businesses.

The strength of the Kikuyu enterprises is slowly dissipating as towering enterprises like Tuskys, those belonging to Girishon Kirima, Njenga Karume and John Kagema have collapsed as their children fight for the spoils. Many of the enterprises that were dominant either in Kenya, East and Central Africa are now shrinking. This continues to be an existential threat to the Kikuyus enterprises as their new business ventures are taking too long to gain market recognition or dominance.

Article Written by
Dr. Yussuf Motari & Kevin Nyabuto.

09/04/2022

Tough Trade-Offs: Medical Bills and Access to Medical Care

Amidst the staggering numbers of illnesses caused by chronic diseases that leads to the highest hospital admission or death, life in our generation appears scary. Apart from the quality of treatment, these patients are worried about the soaring costs of treatment.

As the disease continues to progress, patients are unable to engage in productive activities so as to earn meaningful income as the burden of disease weighs them down.

Is there a way that the sick and their families can be cushioned from the burden of sickness? I have tried to examine ways anyone can adopt in readiness for this eventuality in this exposition:

1. Insurance

Uptake of health insurance is the most appropriate way of dealing with chronic illnesses. Yet, many Kenyans continue to shy away from medical insurance schemes. The institute of Economic Affairs indicates that about 18% are covered by NHIF and 1% by the rest of the private health insurers.

As a result, many Kenyans are not covered by any medical insurance. This people are exposed to financial difficulties when met by illness. Otherwise, an insurance cover can cushion them form dialysis, chemotherapy or from the expenses of overseas treatment.

While some institutions offer attractive medical covers, it is advisable that employees of organizations that rely on NHIF seek for an alternative insurance to cover the limitations of the national health insurer.

2. Chamas
At work or at home, we belong to a Chama. In the groups, great efforts are put forth to enhance the financial wellbeing of members or to assist in the internment of the loved ones. I find it necessary that chamas introduce a health insurance component to the Chama contributions.

This product already exists in most health insurance covers in Kenya. In the event that a member falls sick, the cover is able to subsidise the medical bills. Within the framework of chamas, members with meagre incomes are able to pull together their resources to pay for insurance covers.

Apart from private health insurance, Chama members can encourage one another to contribute to NHIF. Using this approach, many chamas will transform themselves into mindful and caring organizations, this will also enhance the longevity of chamas in the communities.

3. If disabled, join a disability organization

Anyone wishes not to become disabled, but with frequent injuries, assaults, violence, it is possible for one to become disabled. Unfortunately, many disabled people live in denial or fall into stereotype.

Instead, they should realize that government offers social protection when they are enrolled as people with disability. The impact of disability is cushioned through tax exemption and cash transfers. Money obtained can then be used to purchase the necessities of life or pay medical bills.

4. WhatsApp or Mchangos

WhatsApp and Mchangos remain the prevalent forms of raising medical bills in our time. Many, if not all of us belong to one or multiple groups. As needy cases continue to increase around us, so is the fatigue to donate. As a result, organisers are unable to reach their expectations. When this happens, the sick are disillusioned and resort to seeking cheaper means of treatment.

Nevertheless, we continue to stick to WhatsApp and mchangos as tools of raising funds for the sick despite this outright limitation. This underscores the fact that we are unprepared for chronic diseases.

5. Sale of personal property

When the patient is frail and the family has exhausted other means, they resort to selling their properties to meet the medical costs. Usually, because of the urgency of condition, their assets are disposed at a throw away price as buyers take advantage of the situation.

I believe preparing for diseases is of great priority today. One should take a bold step and take up the best option. This will ease the burden and troubles associated with chronic diseases.

Dr. Yussuf Motari & Kevin Nyabuto

01/04/2022

Are you trapped in Loans?

Banks are important actors in an economy. They create new products, generate the much needed employment and directly pay taxes to a nation. But in their pursuit of profits, banks out rightly pursue self-preservation and extort their clients. Their products are marred with significant amounts of non-disclosures and often written in legal ‘Jargons’ that end ups confusing an ordinary bank customer.

Many customers haven’t latched on to the idea that bank loans are no longer beneficial to them. Likewise, customers fail to make an enquiry into the cost of loans, repayment period or associated collaterals. But, those who are interested to find out about loan products are often given information about the benefits of the facility while the bank agents hide critical, but, material facts about the products.

The reluctance of banks to share information openly indicates they have designed their products with a lot of non-disclosures that often catch customers off-guard and confer them with unexpected obligations (i.e., interests and insurance fees). It is rare for example for a bank agent to aid a customer to quantify the cost of loan insurance or even determine the bank charges.

In the banking industry, the voice a customer is less important as they aggressively focus on their interests. As a result, customers continue to be feeble actors with meaningless bargaining power on their services.

There are many products meant to extort customers, but my attention was particularly drawn to top-up loans facilities. It does not click to a customer that a simple top-up loan has the potential to tie one’s financial life for a significant period of time.

A Top-up loan, for example is taken to be a new credit arrangement with new repayment period, interest and other bank charges. This material fact, is however omitted in the Terms and Conditions of this product. This explanation is made clearer in the illustration below.

Let me illustrate:

If Kamau took a loan (say 1M for 6 years) a while ago from a bank and services the facility to some extent (say he pays 0.5M in 3 years) but finds an argent need for a top up (say 0.2M), the bank will assume the initial fees and begin a new contract of 6 years similar to the initial contract period but with new interest fees and insurance charges. I have sought to find this sections in the T&C of Commercial banks and established that they are assumed to be an obvious fact and therefore omitted (Check the T&C of top-up loans in the commercial bank’s websites).

As a result of the nature of bank products, many customers are trapped in unending loan cycles with minimal economic growth. When this situation arises, most customers are unable to meet their basic needs and vulnerable to unscrupulous lenders. Their productivity is greatly affected as they become emotionally distress, sad, irritable, angry and depressed. If this is not attended to they are likely to fall into severe mental conditions.

Our banking experiences are now purely transactional rather than being a holistic engagement with mutual benefits as banks do not consider the client’s financial wellbeing. This is because banks dispossess the vulnerable members of the society with the opportunity of economic growth.

The onus is on the banks to ensure that customers understand the requirements of their loan products and endeavor to be ethical in the provision of their services. As this condition prevails, I could advice a client to consider a separate loan arrangement as opposed to a top-up loan. This option is cheaper and more convenient.

Is there a better way of becoming economically free? Join me in my next posts as we learn together.

Article Written by Dr. Yussuf Motari and edited by Nyabuto Kevin

Mentoring young business innovators in the HULT competition, Kisii University Chapter. The best team won.
29/03/2022

Mentoring young business innovators in the HULT competition, Kisii University Chapter. The best team won.

26/03/2022

BETTING AWAY YOUR BUSINESS INVESTMENTS

In Kenya, the widespread use of internet and smartphone have increased the betting activities to unprecedented proportions. Gamblers are now able to bet on anything as they pursue the pleasure of this practice. As opposed to the traditional betting games on casinos, cards, poker and fighting animals, there are many other forms of betting nowadays as one can bet at the comfort of their homes or business premises using technology.

Globally, it is estimated that four out of five people have involved themselves in gambling at one point or another in their life (Marche, 2021). Local statistics indicates that about 76 percent of young people are involved in the practice (Kulundu, 2019). This increase in betting is believed to point towards social breakdown or weak moral tendencies in our societies as opined by Marche(2021).

The proliferation of betting is enhanced by massive infrastructural support from betting scratch-off lotto card shops, radio cash competitions, online betting platforms or newspaper cuttings of football fixtures in the streets just to name a few.

Gamblers believe that they will either hit the jackpot or generate enormous potential payoffs. This believe is anchored on the gambler’s fallacy –a believe that losses are unlikely to happen more frequently in their betting experience. Thus, a typical gambler hopes that a loss does not dictate tomorrows outcome. The fallacy breeds pathological gamblers who go out of their way to bet repeatedly irrespective of a win or a loss.

Few gamblers are able to gain out of the practice as others re-invest into betting with the hope of higher margins. A large proportion of them fail to secure a win or otherwise get small wins in the betting life. The practice therefore, inflicts social and economic pain to the gamblers, families and the entire society. Sustained loss of income among gamblers may lead to increased crime, su***de or even divorce.

For the case of businesses, this translates to the loss of business time, contacts or even capital occasioned by commitment of the owner or employees to betting. In the end, the enterprises are left to shrink as they are constantly deprived of key factors of production as alluded to by Professor Kindt of the University of Miami in the United States of America.

Gambling is often introduced with promises of boosting economic development by creating jobs, new economic activities, tourism or increased government revenue. Regulators, however fail to observe that the economic benefits of gambling may be offset by economic harm to other businesses as it displaces revenue from other businesses.

This practice is largely unregulated as evidenced in the provisions of the Betting Lotteries and Gaming Act Cap 131 Laws of Kenya. Likewise, little recourse is provided on the excesses of the practice as well as mechanisms for the rehabilitation of pathological gamblers as more focus is placed on generating more income from the betting businesses.

Article Written by Dr. Yussuf Motari

Open for discussion. Let's hear other differences between a Wantrepreneur and Entrepreneur.
21/03/2022

Open for discussion. Let's hear other differences between a Wantrepreneur and Entrepreneur.

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