Creating jobs for talented youth and women in urban slums

Annual Report 2017

Bigger. Better. Livelier than ever.

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Annual Report 2017.

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Annual Report 2017.

MESSAGE FROM THE EXECUTIVE DIRECTOR

Table Of Contents 03.

Message from Executive Director

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Message from Regional Sales Manager

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We’re now all over Kenya!

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The LivelyHoods life

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LivelyHoods’ Impact

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What’s new with LivelyHoods?

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Life got better

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The Financial section

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Who supported us in 2017

I learned that when things are good, you have to take advantage of the momentum and make as much progress as you can.

When I first came to Kenya in 2011, my goal was to build a successful model for job creation and product distribution in slums. Once we figured out the model, my goal was to replicate it across Nairobi through a network of branches. After we had established our model in communities in and around Nairobi by the end of 2014, the next step was to scale the LivelyHoods model across Kenya. With support from the Energy and Environment Partnership, funded by the British, Finnish, and Austrian governments, we received the funding to open branches throughout the country. We had an ambitious target of opening six branches in 2017, while at the same time developing the internal oversight mechanisms and processes that would allow us to manage a national product distribution channel. And we did just that. Over the past seven years, I have learned so much from my work building and growing LivelyHoods into the organization it is today. I learned that when things seem bad, you have to keep pushing forward but it’s ok to slow down and take the time to think through the challenges. I learned that when things are good, you have to take advantage of the momentum and make as much progress as you can. You have to leap.

In 2017, we took a leap as an organization and achieved a big goal. In 2018, I will take a personal leap and leave Kenya in order to transition the day to day operations to local leadership, which was a goal of mine back in 2011, even before I knew what we would grow into. This year, Dennis Ochieng has joined our team as the Country Director. He and our talented and dedicated staff will take LivelyHoods forward and set their own goals for where we will go next. I cannot wait to see what they do, and to continue to support them in my role as Executive Director. In this report, you’ll read about our route to national expansion in Kenya, our achievements in 2017, and the impact that our model has had on our sales agents and customers. As always, please let me know if you have any feedback or questions, and if you want to find ways to support our work. All the best,

[email protected]

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Annual Report 2017.

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Annual Report 2017.

Bigger We’re now all over Kenya! Message from Regional Sales Manager, Western Kenya After college, with hopes to secure a job, things did not work out as I had expected. I had to struggle, moving from one town to another to try my luck, but it was hard to get a job in order to earn a living. This went on until early 2017, when I saw an advert from LivelyHoods advertising for a branch manager post in Kisii, in the highlands of Western Kenya. I applied and I was given a chance after an initial interview. I went through training and orientation with LivelyHoods and I started to run the new Kisii branch.

Now there is happiness in my family, and no worries about getting food on the table or pay bills, and I am completely financially independent. As a branch manager, I worked closely with the sales agents as a team, and we quickly became the top performing branch. Within the year I was promoted from branch manager of Kisii to Regional Sales Manager for western Kenya. This was a big step up, requiring more planning, more organization and more attention to the differences between each branch to make each one the best they can be. I get to meet people and make friends with people all over the country through my role with LivelyHoods, in addition to doing my job empowering young people and communities every day. 2017 was a year of personal and professional success for me, and one in which for the first time I had a stable salary at the end of the month. Now there is happiness in my family, and no worries about getting food on the table or paying bills, and I am completely financially independent. I thank LivelyHoods for having trust in me and giving me a chance to be part of the team.

Nakuru The heart of the Rift Valley, framed by the largest lake in the region

Nyeri Oldest town in Kenya, with plentiful and affordable food and water, but high unemployment

County population: 1.6 million

County population: 693,558

Cookstoves sold in 2017: 1,001

Cookstoves sold in 2017: 495

Meru Nestled under Mount Kenya, and only accessible if you go around the mountain’s vast national park.

Eldoret Home of the world’s best high altitude running training camp and the fastest growing town in Kenya

County population: 1.4 million Cookstoves sold in 2017: 288

County population: 894,179 Cookstoves sold in 2017: 346

Limuru Most of the area of Limuru is now what was previously known as the “white highlands”, a rich agricultural land just south of the equator.

County population: 1.6 million Cookstoves sold in 2017: 194

Kisii

Kitui

A verdant highland market town, with a shortage of habitable land

A small town in Eastern Kenya, with a hot, dry climate and high poverty levels.

County population: 1.2 million

County population: 1 million Cookstoves sold in 2017: 1,595 Cookstoves sold in 2017: 214

Before, I was nowhere but now in LivelyHoods I am somewhere.

Erick Matoke

Nairobi Kenya’s capital, where the population flocks and jobs are few. Our branches here are; Mathare, Makadara & Kawangware

County population: 3.2 million Cookstoves sold in 2017: 2,654

Thika Home to the Chania Falls and the Thika Falls. Also the prime pineapple-growing region in Kenya.

County population: 1.6 million Cookstoves sold in 2017: 154

Mombasa Kenya’s second largest town, lying on the coast and comprising a unique culture, a mix of Swahili, Arabic and Indian influences.

County population: 939,370 Cookstoves sold in 2017: 723

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Annual Report 2017.

Better

A recruit

The LivelyHoods life

01

get an opportunity

LivelyHoods’ Impact

A trainee

02

get skills

....................................................................................................... A sales agent

03

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Annual Report 2017.

2017 impact Total impact to date .......................................................................................................

get income

A senior sales agent

04

Average monthly sales per agent

get stability

718

3081

$293

$256

Trainees

Become Either: Branch manager/trainer

05

06

386

1,399

get a promotion

Jobs created

Or

“Before Joining LivelyHoods I was just from a broken marriage. I was confused because I was literally dependent on my husband for everything and anything. When my marriage broke down I was devastated. I moved to Nairobi without any plans on how to get a job, and life was hard trying to get people to host me. I had just moved to Nairobi, rented my own house (a single room) and the house was empty and I could barely get rent to pay for the house, let alone food. Since joining LivelyHoods I now never have to worry about what to

$4,780,550

$14,031,725

Drop in poverty likelihood of trainees one

Start your own business (10%) Get a job (57%), Go back to school (20%) get what you want!

Rachel’s story – Ashes to Riches

Rachel Mogaka Senior Sales Agent, Nairobi.

Customer fuel savings

eat or where to get money for rent. The best thing that happened is that a few months after joining LivelyHoods I got money to claim my kids’ custody, which came through, and I’m now able to care for them and even pay their school fees and their upkeep. The fact that I can save with LivelyHoods gives me courage that my emergencies are catered for. I had never worked in a sales company and so I didn’t have any idea what I was doing, but I was given a chance here, given the skills I was missing, and it made me become one of the best sellers; I’m now a senior sales agent.”

8314

23,768

clean cookstoves sold

What’s new with LivelyHoods?

88% year after their training

New branches: We still can’t believe we opened six new branches in six new counties stretching from Mount Kenya, to the Rift Valley, to the east and west extremes of the country. That also means six new branch managers joined the team! New training program: We revamped our sales agent training program, which now boasts sales techniques, mindfulness and confidence building techniques inspired by ‘the seven habits of highly successful people,’ the Behavior Change Communication curriculum from Population Services Kenya, and empowerment techniques developed by the Global Alliance for Clean Cookstoves.

New people: We’ve grown! We already said we’re bigger and better, and these new additions to the LivelyHoods family are testament to that. We welcomed six new branch managers to the team. We also grew our international board of directors, and are delighted to add Linda Davis, Director of Partnerships at wPower Hub, and Bob Okello, Group Execution Manager at Coca Cola group East Africa. We also welcomed Dennis Ochieng as LivelyHoods Kenya Country Director.

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Annual Report 2017.

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Annual Report 2017.

Dennis Ochieng LivelyHoods Kenya Country Director.

“I am elated to join such an amazing organization with audacious goals, and focus on improving the livelihoods of youth and women in this region. I have witnessed first-hand the resilience of sales agents across all the branches we operate across Kenya. I am bringing with me many years of experience in management, operations, systems, and process development, coupled with an understanding of working with communities in resource-scarce settings. I believe that my previous experience as the Managing Director at WASH United and Operations Director at Sanergy, a pioneering social enterprise in Nairobi, will come in handy in injecting fresh impetus as LivelyHoods takes its next bold steps in 2018 and beyond.”

Life Got Better Mary’s story “Purity is my best friend! I bought my cookstove from her a long time ago, and now she comes to visit from LivelyHoods, has a chat, asks me how things are going. I love to cook for my family at the weekend, everyone’s welcome to come for chicken! I grill it on my cookstove, come on over! Before, the smoke would be so bad my children would give me a headache about it, as well as about the smoke, but now they can’t even tell when I’m cooking because there’s no smoke! I just tell them dinner’s ready and they come running.” Mary, Market stall holder, from Makadara, Nairobi.

New products: We’re constantly on the lookout for innovations that can make life easier, healthier, and more economical for households in Kenya’s low-income communities. This year we introduced the Everwaters water filter, the Sun King Pro 2 solar lamp and charger, and the Burn Kuniokoa, an efficient wood-burning cookstove.

Esther’s story

New consumer financing: With support from Winrock International, we launched our LivelyHoods Installment Payment Arrangement, allowing customers to pay for their products in micro-instalments over several weeks, instead of upfront. This is all managed using mobile money and an online payment tracking platform.

“I’ve bought so many products from LivelyHoods! The agents always come with new things that make my life easier, and they let me pay bit by bit - there’s no way I could afford to pay upfront, I never have that sort of money, but a little bit every day I can manage.” Esther, shopkeeper, from Nairobi.

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Annual Report 2017.

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9% Admin

13%

$64,719

Malusi’s story - My journey with LivelyHoods

Direct costs $95,332

6%

The Financial Section

Marketing $43,665

2%

41%

Expenditure

Products

$756,719

$311,940

Recruitment and training program $18,880

0.1% Fundraising

21%

$973

Personnel and consulting

$160,317

8%

“A friend of mine, a pastor, had called me up to tell me about this opportunity with LivelyHoods, after I had been made unemployed. During my first month of sales at LivelyHoods, I only sold two cookstoves. I earned about ksh 1000 (USD 10) in that month, which was so disappointing. My wife also got disappointed and she even advised me to quit the job and look for something else that could earn me money instead of wasting my time. I told her that I still wanted to try and that I had high hopes with the marketing that I had done in that month. I was happy the following month to see how my performance got better since I managed to earn about ksh 9000 (USD 90) and I’ve been increasing my earnings ever since. I was so encouraged to keep learning more tactics and that’s how I have found myself where I am today. The various trainings I have had at LivelyHoods, and exposure to different types of customers every day have made me realize my potential as a sales agent. I knew I could sell, but I didn’t know to what extent I could be a great sales agent! Now I don’t struggle to meet the needs of my family, like I did before, and I’m comfortable paying my children’s school fees, and providing for my loved ones.”

Loan repayments

Malusi Kilonzo, Sales agent, Nairobi.

$60,990

Livelier

3% Loans

Who supported us in 2017

$25,000

60% Grants & Contributions $569,532

37%

Income

Earned Revenue

$945,824

$351,292

Institutions, foundations Energy and Environment Partnership of Southern and East Africa | Global Alliance for Clean Cookstoves | Segal Family Foundation | Winrock International | Osprey Foundation | Social Capital Foundation | Population Services Kenya

BIGGER

Lively Bunch members (monthly donation)

Andrew Felix | Callie Bertsch | Camila Bresciani | Deryn Warren | Diane O’Carroll | Evan Morgan | Jade Van Doren Jared T Murphy | Kimberly Tilock | Pamela Roussos | Robert Moore | Ross Overline | Rudy Grimaldo | Dominic Docherty Stephen C. Maack

Individuals For every $70 invested in LivelyHoods training and distribution program: One young man or woman gets trained and employed as a LivelyHoods sales agent

This year we were delighted to receive new funding from: The Global Alliance for Clean Cookstoves Population Services Kenya

132 men, women and children in low-in come households enjoy a better quality of life 493 trees are saved from destruction through reduced fuel use equivalent to taking 292 cars off the road

Energy and Environment Partnership of Southern and East Africa which contributed towards funding our inventory, expansion, installment payment plan and marketing costs.

Aisha Lewis | Alex Baker | Anya Cherneff | Becca Gentile | Boniface Ndagwa | Bora Ozturk | Canopy Space Catherine Wanjala | Chiemi Mori | Chris Chung | Claire Crompton | Clara and Tim Daniels | Collins Malema Daniel Murillo | Daniel Walter | Diane Jacobson | Douglas Tuva | Elaine Davis | Fred Okello | Freyja Oddsdottir Ginette Baker | Glen Roussos | Jacqueline Mathaga | James Tilock | Jimmy Otim | Josephine Ngethe | Joshua Cheruiyot Karen Roussos | Katrina Ordanza | KC Jean-Pierre | Kim Mahling Clark | Lewis Mbae | Linda Davis | Lisa Parrott Madhavi Sakuru | Marc Springer | Maria Springer | Mary Williams | Matthew Lovick | Mercie Laden | Mercx Njue Michael Kentrock | Michael Okwogo | Michael Onyango | Michael Owigar | Michael Paul | Michael Shaff | Mike Looney Muriel Zimmerman | Mutembei Kariuki | Myla Wagner | Nathan Harper | Nicole Belenky | Nuru Luhindi Oualid Chelghoum | Ravu Ball | Richard Sieff | Ron and Jenny Schneiderman | Rosemary Mwangi | Scott Berry Tina Edwards | Tosin Oyeniran | Vickie Duong | Vierra Nyakundi | Wachira Nderitu | Yilam Kang

Thank you also to the foundations and individuals who gave anonymously.

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Annual Report 2017.

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Annual Report 2017.

Who gave their time to LivelyHoods Story of support from LivelyHoods donor and advisor.

The LivelyHoods Board Pamela Roussos | Tania Laden | Maria Springer | Kimberly Tilock | Jade Van Doren | Laura DeVere | Katherine French Linda Davis | Bob Okello

I’ve been supporting LivelyHoods since co-founder Maria Springer approached me in Los Angeles seeking consulting help to do strategic planning. I had spent a year and a half in Senegal and had seen in Dakar the kind of youth and women that she had observed in Nairobi in similar very low-income neighborhoods. I loved the approach she outlined of helping street youth gain knowledge of how to create a viable business, apply it selling ecologically sound, cost-effective products in low income neighborhoods whose residents were unlikely to know about or have access to such products. The solution offered was win-win-win-win for the sales force (economically and in personal growth), the neighborhoods, the future growth of Kenyan businesses, and the environment. I have been providing pro bono support and advice ever since.

I would encourage anyone to join me in helping to sustain LivelyHoods’ efforts and growth across Kenya and into neighboring African countries. As LivelyHoods became established and my own financial circumstances improved I started donating money as well, eventually on a monthly basis. I have continued doing so over many years because I have been impressed by the thoughtful and businesslike way that LivelyHoods’ co-founders, Maria Springer and Tania Laden, have run and grown the non-profit and handled leadership transition. This is a solid, well-run non-profit with an excellent approach. I would encourage anyone to join me in helping to sustain Livelyhoods efforts and growth across Kenya and into neighboring African countries.

Stephen Maack

LivelyHoods volunteers, fellows and advisors Pablo Bocco | Loïc Trompette | Shireen Ngumi | Sarah Cramer | Ashley Orton| Diana Won | Katelynn Martin | Maile Malin Jack Bryan

And thanks to the support and cooperation of our partners and networks Burn Manufacturing | EcoZoom Envirofit | Ramtons (Hypermart) | Everwaters Population Services Kenya | Clean Cookstove Association of Kenya | wPower Hub Amani Institute | Angaza

LivelyHoods Precious Plaza, Naivasha Road Kawangware, Nairobi, Kenya e: [email protected] t: @livelyhoodsorg f: facebook.com/livelyhoods