CHAPTER ONE: 1.0 INTRODUCTION 1.1 Background … · The Kenya Seed Company plays a major role in ... -Adoption of conservation agriculture ... - Align policies of Kenya Seed Company

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CHAPTER ONE:

1.0 INTRODUCTION

1.1 Background Information

Kenya Seed Company (KSC) Limited is a State Corporation that produces and markets top

quality seeds with an overall objective of adding value to the farming business and contributing

to food self sufficiency in Kenya and beyond.

The Company was incorporated in Kenya on 2nd July 1956 to initially promote the use of

improved strains of pasture seed developed by the then, National Agricultural Research Station

based in Kitale. Two years later, KSC started an enterprise to produce commercial sunflower for

the European bird feed market in order to sustain its financial needs.

In 1963, maize production was introduced following the release of the first hybrids by the

Government Research Center in Kitale. Wheat was introduced in 1971 to provide certified seed

wheat to farmers who previously depended on low quality farm-saved seeds.

Since those formative years, the Company has made substantial contribution towards food

security through the development, production and provision of high yielding varieties and

quality seeds for various crops adoptable to different agro-ecological zones.

These seed varieties are availed to our customers through network of subsidiaries, branches and

approved seed stockists.

1.2 Organization of the strategic plan

This revised strategic plan covers the period between 2008/09 to 2013/14. It is the result of

intensive consultation among the management, Directors of KSC and Eureka Consultants.

It presents the common vision of the Board and articulates the objectives and strategies that will

be implemented in the next five years. Action plans have also been identified. KSC‟s vision is to

create an effective organization that will contribute to achievement of Kenya‟s Vision 2030, food

security and socio-economic development of the country through the provision of quality seeds

to farmers.

The strategic plan is structured into 6 chapters as follows:

Chapter 1: Introduction

Chapter 2: Vision, Mission and Goals

Chapter 3: Internal and External Environment Analysis

Chapter 4: Strategic Direction

Chapter 5: Organizational Structure

Chapter 6: Monitoring and Evaluation

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1.3 Challenges

The Kenya Seed Company plays a major role in the seed industry. It provides top quality seeds

to farmers, as well as protects national and regional economies from the risk of poor quality

seed supply.

However, the company faces numerous threats and challenges, which will be addressed in this

strategic plan as below:

CHALLENGES/CONSTRAINTS VERSUS ACTIONABLE RECOMMENDATIONS

CHALLENGE ACTIONABLE RECOMMENDATION

Unfavourable weather conditions -Introduction of large scale irrigation

-Use of drought tolerant varieties

- Crop diversification

Weak legal framework governing the seed

industry

-Lobbying with STAK and MOA

Land policy, such as demarcation and sub-

divisions which make land unsuitable for

seed production

-Expansion of land by hiring out or direct

acquisition.

-Zoning of seed growing areas.

-Venturing into irrigated areas outside the seed

growing areas.

Competition from other seed companies -Introduction of superior products

-Continuous quality improvement

Conflict arising from the perceived

harmful effects of using GMO for

improved seed production

-Sensitize people on GMO

-Develop and adopt a GMO Policy

-Capacity Building on GMO

-Purchase of equipment for genetic engineering,

gene mapping e.t.c

Lack of clear management succession

system

-Have succession plan in place

Government Policy on Remuneration -Apply for re-classification

Inadequate staff training

-Conduct relevant training for all the staff.

-Do Training Needs Assessment

Inadequate staff motivation.

-Develop staff incentive, career guidelines and

reward scheme.

-Carry out salary review

Managing staff with special skills and

proprietary knowledge of the company

such as breeders and engineers.

-Pay royalties in collaboration with other seed

marketers

-Name varieties in their honour

Government‟s role in determining the

price of maize seed, resulting in lower

prices

-Negotiate for autonomy in seed price

determination based on the optimal cost of

production and forces of demand and supply

Not enough seeds to satisfy demand

-Get more acreage for seed production

-Increase yield per acre

-Source for more irrigated land

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Inadequate budget for market expansion -Allocation of budget for aggressive research

and marketing

-Carrying out a feasibility study for all new

markets before venturing into them

Old machines in most line processing

plants

- Review current status of machines

-Purchase batch dressing machine.

-Purchase 1kg and 2kg packaging machine

Inadequate storage facilities within the

processing stations

-Undertake financial projection to find out

whether it is necessary to build or lease storage

facilities

Diversion of seed maize into commercial

maize by growers.

-Periodic review of margins obtained by

farmers

Diminishing yields

-Adoption of new farming methods with

appropriate agronomic packages.

-Carry out routine soil analysis.

-Better crop husbandry practices such as crop

rotation, soil conservation and zero tillage.

-Growing right variety in the right agro

ecological zones.

-Farmers‟ trainings, field days, on -farm trials.

Dependence on rain-fed seed production -Invest in irrigation

-Use of water harvesting techniques.

-Adoption of conservation agriculture

-Adoption of new farming techniques which

conserve moisture

-Conservation tillage

-Insurance covers.

Limited land for production of all the

required breeders‟ and basic seed.

- Expand to other areas.

-Use irrigation areas such as Kibwezi.

- Lease of production land in suitable areas.

-Technical advice to growers on proper

agronomic practices for better yield.

-Negotiate with the institutions such as A.D.C.,

ATC, Prison farms for more seed production in

the Government owned lands

-Zone growers for ease of management

mechanization and attainment of isolation

distance.

-Acquire new farming land

Limited capacity of the basic seed unit and

processing facilities

-Expand the basic seed unit and processing

facilities

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Inadequate basic seeds for some seed

varieties such as H8998, Boma Rhodes.

-Reduce export market for commercial

sunflower and promote local consumption.

-Support BSU to produce enough stocks of basic

seed

Inadequate basic seed - Diversify of Basic Seed sources.

- More use of modern irrigation technology.

- Completion of irrigation facility at Elgon

Downs Farm.

-Acquisition of more land neighboring Elgon

Downs

Farm and in other right Agro-ecological zones.

Breeding for drought tolerance in erratic

weather conditions

- Development of water management sites

-Introduction of drought tolerance germplasm

Breeding for multiple disease resistance in

all the main crops

-Identification of source of resistance

-Development of methodologies and facilities

e.g. Maize Streak Virus

Breeding for insect resistant varieties

-Identification of sources of insect resistance and

pyramiding into adapted varieties

-Introduction of Bt maize, cotton etc.

-Introduction of insect resistance in adapted

cultivars

Plant variety protection

-Following up with KEPHIS after the gazette of

government amnesty period.

-Payment of royalties

Lack of modern breeding technology for

example, there is perceived “harmfulness”

GMO effects

-Enlighten people on GMO

-Develop and adopt a GMO Policy

-Capacity Building on GMO

-Purchase of equipment for Gene mapping

Inadequate skills in IT Auditing, Research

and Engineering audits

-Undertake TNA to establish the gap to be filled

through training

-Outsourcing of specialized skills

Lack of automation of the audit process

-Implement systems and process convergence in

an ERP Environment

-Review global environment to determine

technologies to be applied by KSC for

efficiency/cost reduction

Lack of machines due to rapid

technological advancement

-Implementation of systems and process

convergence in a ERP Environment

-Review global environment to determine

technologies to be applied by KSC to enhance

for efficiency and reduce costs.

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Absence of centralized coordination and

management of critical ICT applications

and services

-Automate and create a seamless workflow

between departmental applications by using

ERPs and CRM.

Legal position of Kenya seed company and

its relationship with its subsidiaries

-Seek independent professional opinion on the

relations between Kenya Seed Company and its

Subsidiaries

Security of the germplasm -Beef up security for the protection of the

germplasm

-Gene banks-national KARI

Security of company assets

-Have modern fleet management system in

place

-Put systems to guard on pilferage

-Head Of Departments be made responsible for

the assets in their departments

Absence of internal and external

communication policies

-Develop communication policy in place

Unclear customer feedback mechanism Develop and implement communication policy

that will guide customer feedback mechanism in

the company.

High statutory KEPHIS charges on feeds -A proper control and assurance policy be put in

place to guide the quality assurance operations

and ensure accreditation by ISTA & OECD

Competitor threats -Carry out soil analysis at a subsidized rate

-Introduction of superior products

-Improvement on quality

-Set up a supporting mechanical and technical

arm of seed maize production department.

-Enter into agreements to bulk elite materials

Facilitation of field staff -KSC be more proactive and operate as per the

requirements of CAP 326

- Provision of up to date technological

equipment, such as moisture meters, GPS and

trailing tape.

-Provision of ideal transport (4 x 4 utility

vehicles) for field visits.

Inconsistent credit and pricing policy

Use of farm saved wheat seed

- Align policies of Kenya Seed Company

Limited with that of its subsidiaries.

Fluctuating market prices - Plan and do procurement

in time

Inadequate procurement plan -Timely communication from relevant

departments

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Lack of proper specification of

departmental

requirements

-Understandable requisition of service or items

-Timely implementation

Delayed payment to suppliers -Reduce the payment procedure

Inclusion of procurement and store

keeping tools in the ERP system

-Integrated programmed procurement outage

STAKEHOLDERS

NAME CHALLENGES ACTIONABLE

RECOMMENDATION

Kenya Plant Health

Inspectorate Service (KEPHIS)

Quality control meant to be

done by field officers is left

for KEPHIS.

-KSC to be more proactive

and operate as per the

requirements of CAP 326

Subdivision of land while

seed growing requires large

pieces of land to allow for

isolation.

-Zoning of seed growing

areas.

-Venturing into irrigated

areas outside the seed

growing areas.

Concentration by Kenya

seed on the East African

market

-Do a feasibility study on

market possibilities outside

the East African region

-Allocate marketing funds,

based on the study findings

Unpredictable climatic

conditions.

- Introduction of large scale

irrigation

-Use of drought tolerant

varieties

- Crop diversification

Farmers

Farmers

Low payments for seeds -Match seed price with the

prevailing market prices

Low quality of farm inputs

e.g. adulteration of fertilizer

- Advise growers to buy

inputs from certified agents

(certified by KEPHIS &

PCPB).

High input costs

insecurity of the maize seed

in the farm

High input costs

insecurity of the maize seed

in the farm

- Bulk imports of inputs

(fertilizers &

agrochemicals)to be sold to

growers

-Company‟s security

department to come up with

a strategy/intervention to

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STAKEHOLDERS

NAME CHALLENGES ACTIONABLE

RECOMMENDATION

Farmers

address the problem of theft

of seed maize on the farm

No reward \recognition for

good performance

-Develop a reward scheme

for growers

Bad roads.

- Lobby for allocation of cess

levy for road maintenance.

- Collaboration with KERRA

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1.4 Performance Projections: 2008/09 – 2012/13

Table 1 below indicates the projected performance for the period 2008/09 – 2012/13

Criteria Units 2008/09 2009/10 2010/11 2011/12 2012/13

a) Financial Indicators

Pretax profits Kshs (Millions) 458 481 529 556 584

Turnover Kshs (Billions) 2.9 3.1 3.3 3.4 3.5

Return on Investment % 12 12 12 12 13

b)Total Production Metric Tons

Maize 14,220

23,000

26,000

27,000

28,000

Wheat

6,000

6,200

6,400

6,800

6,800

Pasture

100

135

136

140 162

Sunflower Seed

100

172

180

202 247

Commercial S/Flower

1,400

1,500

1,600

1,800

2,000

Sorghum

480

500

550

600 700

c) Total Sales Metric Tons

Maize

24,530

25,000

26,000

27,000

28,000

Wheat

4,140

6,400

6,600

6,800

7,000

Pasture

110

121

141

148 161

Sunflower Seed

120

174

183

208 248

Commercial S/Flower

1,380

1,550

1,620 1,810

2,100

-Sorghum

470

510

560

600 700

d) Others Number

-Variety Development Maize 3 3 3 2 2

and Release Wheat 1 1 1 2 2

Sunflower 2 0 1 1 1

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Criteria Units 2008/09 2009/10 2010/11 2011/12 2012/13

Sorghum 0 1 1 0 1

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2.0 CHAPTER TWO: VISION, MISSION, CORE VALUES AND GOALS

2.1 Vision

“The preferred supplier of top quality/certified seed in Africa”

2.2 Mission

2.3 Rallying Cry

“Top Quality Seed”

2.4 Core Values

Core values are operating philosophies or principles that guide an organization‟s internal

conduct as well as its relationship with the external world. Core values are not descriptions of

the work we do or the strategies we employ to accomplish our mission but rather they underlie

our work, how we interact with each other and strategies we employ to fulfill our mission. The

core values guide business process, govern personal relationships, clarify who we are, articulate

what we stand for, help explain why we do business the way we do, guide us on how we teach,

inform us on how to reward, guide us in making decisions, underpin the whole organization

and require no external justification. Kenya Seed Company shall be guided by the following set

of values:

Integrity: We show impartiality, fairness and honesty while upholding the highest ethical

standards. We value consistency of actions, values, methods, measures, principles, expectations

and outcomes.

Team work: We create a workplace that fosters unity, respect, and uniqueness of each person,

promotes employees participation, and ensures support for each other. We believe in

harnessing synergies of staff to realize set goals and aim at producing most effective teamwork

by harmonizing individual‟s contributions and work towards a common goal.

Professionalism: We maintain a high level of standards in the delivery of products and services

to farmers and other stakeholders. We also work towards the active demonstration of

knowledge and skills of the profession, commitment to self-improvement of skills and

knowledge, service orientation, pride in the profession, covenantal relationship with client,

ethically sound decision making and leadership

Innovation and Creativity: We believe in incremental radical and revolutionary changes in

thinking, products and processes to shape the future of our company. Staff is encouraged to

To avail top quality/certified seed competitively through focused research, development and

value addition to the satisfaction of stakeholders

http://en.wikipedia.org/wiki/Consistency

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work with contracted seed growers/producers in our efforts to produce quality seeds. We shall

continue to strengthen our research and development efforts in order to deliver improved

varieties.

Accountability: We are committed to serve our customers through openness in all our

transactions, maintaining good communication links with them; having clear rules and

regulations` and involving them in all transactions. We remain accountable for all our actions.

We acknowledge and assume responsibility for resulting consequences of our actions, decisions

and policies.

Passion for Quality: We shall seek to provide quality seeds that exceed farmers‟ expectations

through commitment to meeting customer expectations, conforming to design, specifications,

requirements and adding value to our products. We shall at all times be a quality driven

organization. We shall continue to create time for free interaction with our customers and other

stakeholders because we believe that knowledge sharing and implementation is key to

sustainable growth

Efficiency: We are committed to producing our products with increased speed of processing

and skillfulness to avoid waste.

Partnerships: In KSC we are committed to forming strategic alliances or relationships to

advance our interests and to achieve and share profits or losses for the good of the company.

Gender Equity: We shall seek to provide a social order in which women and men share the

same opportunities, same constraints and full participation in the economic and decision

making process of the company.

Work Ethics: We are committed to a set of values (reliability, having initiative and maintaining

social skills) based on hard work and diligence. We believe in the moral benefit of work and its

ability to enhance character.

2.5 Core Business

Core business is a set of activities that are central to the existence of KSC. They have been

derived from KSC‟s mandate, Vision and Mission. KSC‟s core business include:-

Research and development

Seed production and maintenance (Basic Seeds)

Seed Processing and value addition

Seed multiplication (certified seed products)

Marketing and Distribution of seeds

Quality Assurance

http://en.wikipedia.org/wiki/Value_%28personal_and_cultural%29

http://en.wikipedia.org/wiki/Diligence

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2.6 Non- Core Business

Non-core activities are those that can be privatized, outsourced, sold off, or closed. They are not

central to KSC‟s business. KSC‟s non-core business includes:

Livestock rearing

Coffee production

Commercial Sunflower production and marketing

2.7 Goals

A goal is a time-specific ultimate accomplishment that Kenya Seed Company aims at achieving.

It unifies all corporate functions into one and harmonized direction. The following are the

proposed goals for Kenya seed Company Limited:

a) Secure, control and sustain at least 90% of the local seed market and at least 10% of the

Eastern Africa Region seed market by end of the planned period

b) To achieve and sustain world class governance and management standards by the end

of the planned period

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3.0 CHAPTER THREE: SEED PRODUCTION ENVIRONMENT

3.1 INTERNAL ENVIRONMENT

3. 1.1 SWOT Analysis

SWOT Analysis states the organizations strengths, weaknesses, opportunities and threats.

Strengths and weaknesses pertain to the internal configuration while opportunities and threats

belong to the external environment. A focus on the Company‟s internal environment helps in

understanding its capacity, weaknesses and opportunities that are important considerations in

its activities and actions for efficiency and sustainability.

A critical analysis of the environment within which the Company operates, reveals the

following core strengths, weaknesses, opportunities and threats (SWOT).

WEAKNESSES

1. Inadequate land for basic seed production

2. Overreliance on seed maize

3. Low adoption of appropriate technology such as gene mapping, GMO e.t.c

4. Inadequate storage for seed

5. Overreliance on rain fed agriculture

6. Declining yields per acre

7. Old plant machinery and equipment

8. Lack of disaster preparedness (business continuation plan)

9. Reliance on external breeders‟ seed suppliers

10. Inadequate monitoring and evaluation system

11. Weak organizational structure

STRENGTHS

1. Wide distribution network

2. ISO certification (ISO 9001: 2008 Certified)

3. Sound financial base

4. Competent staff

5. Regional market leadership

6. Diversified product range

7. Good corporate image

8. Strategic location (Kitale) which has good fertile soil and good weather

9. Accessibility to superior germplasm

10. Goodwill from the government

11. Strong linkages with reputable institutions

12. Strong brand

13. Popular superior varieties

14. Experienced seed growers (Farmers)

15. Labour availability

16. Strong in-house research

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THREATS

1. Fake seeds in the market

2. Farm saved seed

3. Crop diseases and pests

4. Erratic weather conditions

5. Shortage of land for CIG production due to land sub-division/loss of land to

competing uses and/competition

6. HIV/AIDS impact on human resource

7. Competitive environment

8. Escalating cost of production

OPPORTUNITIES

1. Huge market potential

2. Access to improved technology

3. Regulated seed industry

4. Collaboration with relevant stakeholders both locally and internationally

5. Seed production potential in the region

6. Receptive culture that easily adopts new products

7. Availability of land under irrigation

8. Availability of qualified manpower in the labour market

9. Political stability in the region

10. Changing consumption preferences

11. Emerging technology i.e. GMO

12. Regionalization

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3.2 External Environment

3.2.1 PESTEL Analysis

PESTEL Analysis examines the political, economic, socio-cultural, technological and legal forces

within which Kenya Seed Company operates and which influences it. It is a useful tool for

understanding the industry situation as a whole, and is often used in conjunction with SWOT

Analysis to assess the situation of an individual business, Kenya Seed Company.

External environmental trends and events have had decisive influences on the KSC‟s ability to

provide quality seeds to farmers. The purpose of environmental analysis is to enable the

organization to position itself in its business. With a largely demand driven service provision,

the organization has to continuously reposition itself at the cutting edge of new developments

in provision of quality seeds to farmers. To continue playing a leading role in the provision of

quality seeds, the external environment was analyzed in terms of political, economic, socio-

cultural, technological, environmental and legal factors.

POLITICAL

Positive political factors

1. Decision making – any major decisions by the company requires approval by

the ministry of agriculture ensuring good decision making process

2. Government support i.e. the company receives preferential treatment in respect to

government opportunities like training, security and collaboration in field days.

3. Has received funding grants for research in soya beans and other orphan crops

4. There is government representation in the board of directors for example, ministry of

agriculture, treasury and state cooperation ensuring faster addressing of issues.

5. Government intervention in control of fake seeds and subsidy on fertilizers.

6. Political Stability

Negative political factors

1. Subdivision of land especially those of Agricultural Development Corporation and

Prison, consequently reduces land available for seed production

2. There is control in the reward scheme for employees, thus limiting the

competitiveness of the company in maintaining and retaining best staff.

3. The enactment of the new constitution, which reorganized the country into counties,

may impact negatively on the business environment in terms of taxes, environmental

issues and employment.

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ECONOMIC FACTORS

1. Rising cost of production.

2. Globalization has come up with market liberalization leading to mergers,

competition, acquisitions and trading blocks.

3. Financial crisis such as contagion in the common blocks, high cost of borrowing,

high interest rates, taxation/transfer pricing, exchange rate fluctuations and trading

terms

4. Economic growth has led to more disposable income hence increased effective

demand

5. There is poor income distribution in the country increasing the poverty index hence

less disposable income

6. Bad business culture/practices such as hoarding and speculative trading

SOCIAL/CULTURAL FACTORS

1. Rural – Urban migration of the youth.

2. Increase in poverty levels in rural areas hence low purchasing power.

3. Changes in feeding habits, for instance, from maize to rice, chapattis e.t.c

4. Media influence

5. Changing consumption patterns due to religion, health e.t.c.

6. Population growth

7. Corporate Social Responsibility

8. Gender roles

9. Increased public awareness

10. HIV/AIDS

11. Drug and substance abuse

12. Public perceptions

13. School curriculum on agriculture

14. More land sub-divisions as a result of land inheritance.

TECHNOLOGICAL FACTORS

1) Rapid changes in technology

2) Connectivity to software infrastructure

3) Research and development in the use of CMS line, GMO and gene engineering,

plant variety protection, variety description and use of finger printing

4) Automation process to enable scalability for efficiency

5) E-marketing and e-purchasing (take advantage of web through social network)

6) Licensing of technology

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3.3 Stakeholders Analysis

Stakeholders are individuals, groups or institutions that may be affected by strategic choices

made by KSC or can affect the outcome of the proposed strategies. KSC stakeholders include:

Farmers, shareholders, Government, employees, suppliers, partners, public, agents/stockists

and banks.

Table 1 presents a summary of the actors and their respective expectations.

STAKEHOLDER EXPECTATIONS FROM KSC KSC EXPECTATION FROM

THE STAKEHOLDERS

Farmers

Top Quality seed

Timely availability of seed

Affordability

Technical information on the seed

Optimize yield by using

certified seed and appropriate

agronomic packages

Produce adequate crops that

will support the country‟s food

security

To give preference to Kenya

seed products

Shareholders

Maximum Return on investments

Growth of the company

Financial support

Support in lobbying where

need be

Rational decisions in support

of KSC business

ENVIRONMENTAL FACTORS

1. Climatic conditions

2. Disposal of non-conforming seed, chemicals and other materials.

3. Recycling of poly bags for tarpaulins

4. Global environmental degradation

LEGAL FACTORS

1. Labour laws.

2. Patent and plant varieties protection

3. Court procedures and processes

4. Compliance with Statutory requirements

5. Bilateral and multilateral protocols

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THE STAKEHOLDERS

Government

Sufficient quality seed to farmers

Improved exchequer revenue

contribution

Compliance with statutory

regulations

Good governance

Formulation of policies that

will govern land use in seed

production zones

Enabling seed industry

regulatory mechanisms

Facilitation in matters affecting

KSC e.g. fixing of seed prices

Employees

Employees

Good terms and conditions of

service

Recognition

Training and Promotion

Timely payments of emoluments

Team work

Dedicated and committed to

the KSC‟s vision, mission,

goals and objectives

High productivity

Adherence to laws governing

the seed industry and those

specific to the company

Adherence to KSC‟s core

values

Suppliers

Progress/development of the

company

Timely payment for goods and

services

High quality supplies

Timely delivery of supplies

Fair prices

Strong partnerships with KSC

Partners

Maintain jointly owned varieties

true to type(KARI)

Expect us to observe seed

certification standards

Expect us to utilize germ plasm

(international Partners)

Expect us to verify and promote

chemical products and agronomic

packages(chemical companies)

Good working relationships

Discharge their mandate in a

timely and impartial manner

Public

Stability of the company

Conservation of the environment

Support the company as one of

the stakeholders

Bring to the attention of the

company, irregular practices

such as fake seeds

Agents/Stockists

Agents/Stockists

Be informed on Quantities of seed

available for sale

Be informed on Changes in price

Timely Deliveries of their orders

Practice aggressive sales and

marketing of KSC products

Adhere to KSC‟s business

policies and procedures

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THE STAKEHOLDERS

New agronomic packages

Training on products

Literature to support the products

that they are selling

Abide by the contractual

obligations with KSC

Seed growers

Seed varieties that give High

yields

Payment on time for their seeds

Harvested Seed to be collected on

time from the farms

High quality basic seed

Technical advice

Financial support

Consistently produce high

quality seeds

Maximize production volumes

by utilizing appropriate

agronomic packages

Observe laws governing the

seed industry

Maximize land for seed

production by avoiding

uneconomical subdivisions

Financial

Institutions

Financial Statements(debtors,

creditors)

Investment plan

Cover of securities

Cash flow projections

Be informed of the Major changes

in the company affecting account

management

Reasonable business opportunities

Fair interest rates on loans and

overdrafts

Financial advice on services

regarding investments

Timely issuing of bank

statements and other relevant

documents

Stakeholders‟ expectations often conflict, therefore mapping the power and interest of each

stakeholder can help to identify relative importance and define strategies for resolving conflicts.

The figure below gives an analysis of the level of interest and power of KSC stakeholders, and

appropriate strategies:

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Level of interest in KSC

Low High

LOW

HIGH

In revising its vision, KSC prioritised the needs of its stakeholders, farmers, seed growers,

government, stockists and employees are stakeholders that combine high level of interest in

KSC with the power to affect outcomes. KSC‟s vision and strategies must accommodate the

needs and interest of these stakeholder groups. Future direction of KSC will continue to be

influenced by farmers, seed growers and stockists because of their high interest and

considerable amount of power.

Minimal effort

Community

NGOs

Keep them informed

Banker

Suppliers

Stockists

Keep them satisfied

Partners

KARI

KEPHIS

Key players

Government

Farmers

Employees

Seed growers

Shareholders

Power of

Stakeholders

Over KSC

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4.0 CHAPTER FOUR: STRATEGIC DIRECTION

4.1 Customer Value Proposition

Customer value proposition forms the basis of the mission and vision adopted by KSC. The core

customer value propositions include:

Accessibility Increasing coverage of farmers that access top quality seeds

Reliability Providing dependable and consistent top quality seeds

and other services

Affordability Providing seeds that are within reasonable reach of farmers

Customer service Listening and responding to stakeholder needs

appropriately.

4.2 Key Success Factors

Key success factors relate to what KSC has to do right, to fulfill its mandate and justify its

existence. They are judgment pillars that anybody assessing its performance would critically

examine. Based on institutional review, and situation analysis, the following are the KSC‟s key

success factors:

i. Increased and sustained certified seed market share in the region

ii. Customer focused organization

iii. Strong human resource base

iv. Strong operational efficiency

v. Enhanced seed quality through focused research and development

vi. Strong financial base

4.3 Consolidating the Gains and Growth

Fuelled by progress made over the last three years, KSC intends to exploit opportunities

available despite the prevailing economic hardships in Kenya. The strategic plan proposes a

number of initiatives that constitute the framework of action programmes. These initiatives seek

to broaden activity base of KSC to address new areas of interventions while simultaneously

seeking to enhance internal strength. In persuing these initiatives, KSC will give practical

meaning to the intentions stated in the mission. While striving to take on new initiatives in

conformity with the theme in the curent strategic plan, consolidation of the current business

portfolio is equally important.

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4.4 Strategies and Objectives

In order to deal with the challenges, the company has holistic and forward looking strategies to

mainstream operations and launch aggressive marketing initiatives to tap lucrative business

opportunities at home and away in the region. This will entail strong networking and

consolidation of operations within its supply chain. It will utilize available opportunities,

maximize internal synergies, economies of scale and improve organizational competitiveness.

The following strategies and objectives will be implemented:

THEME I: SUFFICIENT QUANTITIES OF QUALITY SEED

Goal: To sustain adequate seed production

Objectives Strategy

1 To increase seed production by at

least 20% annually by broadening

sources of seed

Increase area under irrigation by 20%

per year

Produce seed in Uganda, Tanzania and

Rwanda

Expansion of production in already

existing areas by 5%

Maintain sound grower base through

good work relationship and other

motivational mechanisms

Optimize yield per unit area

Replenish the carryover stocks

2 Raise and maintain seed quality

above the statutory standards (Cap

326) by end of first year and

throughout the planned period

Introduce in-process quality control at all

stages along the value chain

23

THEME II: CUSTOMER FOCUS ORIENTATION

Goal: Increase and sustain certified seed market share in the region

Objectives Strategy

1 Sustain the current customer base

and grow it by at least 2% per year


Timely implementation of customers‟

concerns/challenges as per annual

customer satisfaction surveys

Intensify local and international marketing

activities to attract new customers at a rate

of 2% per annum during the planned

period

2 Maintain customer service /care

excellence at world class standards


Provide customer care/service excellence

training and sensitization to all personnel

who come in contact with customers

Create and implement customer service

delivery standards along the sales and

distribution value chain

THEME III: STRENGTHEN THE HUMAN RESOURCE CAPACITY

Goal: Develop the human resource capacity

Objectives Strategy

1 Create and operationalize a

competitive system for recruiting and

retaining competent staff during the

first year of the planned period

Conduct job evaluation exercise

Right size the establishment

Create attractive compensation packages

which are above market rates

Create and operationalize a career

development plan for all staff by end of

first year of the planned period

Introduce results-based performance

management system by end of first year

of the planned period.

Implement public integrity programme

2 Improve human resource capacity by

providing skill-focused training (one-

two weeks) to at least 100 technical

staff and 20 managerial staff by the

end of the planned period

Conduct training needs assessment

Provide targeted training to address

skills and competence gaps

3 Create and operationalize a

succession management programme

by end of first year of the planned

period

Fill the positions targeted for succession

with the most qualified people from the

labour market(source both internally and

externally)

24

THEME IV: STRENGTHENING OPERATIONAL EFFICIENCY

Goal: To strengthen efficiency through adoption of modern technologies and management

systems

Objectives Strategy

1 Modernize equipment in phases of

twelve months over a period of three

years

Increase seed driers processing output

to 20 T/Hr by 30th June, 2011

Upgrade a processing line in Nakuru

factory by end of 2012/2013

Purchase a batch dressing machine and

laboratory equipment to increase

output and enhance uniformity of

dressing seed by June 2012

Upgrade farm machinery at EDF by

June, 2013

2. To eliminate manual and disconnected

business process functions that lead to

time waste and delayed decision making

by December 2011

Automate Whole Value Chain of KSC

by automating routine, operational and

end to end processes within all the

departments in the company by

December, 2011.

3 To work towards attainment of ISTA

accreditation to be able to issue

certification by June 2013

To attain the status of an ISTA

accredited laboratory in Kenya.

4 To be authorized institution in the

execution of OECD schemes for varietal

certification of seed and ensure that the

rules and directions of schemes are strictly

observed by June 2013.

To obtain OECD requirements in

varietal certification by June 2013.

5 To enhance the security of company assets

by installing CCTV cameras by June 2013 Install CCTV cameras at all entry

points and alarm systems in sensitive

offices by end of June 2013

Intensify intelligence and weekly

reports throughout the planned period

25

THEME V: RESEARCH AND DEVELOPMENT

Goal: To retain seed competence through focused research and development

Objectives Strategy

1 To exploit plant genetic resources to

develop and maintain superior

varieties throughout the planned

period.

Apply conventional breeding and emerging

technologies to develop new varieties


Maintain parentals of release varieties


2 To widen genetic base of germplasm

continuously throughout the planned

period.

Establish collaborative research networks with

regional and international research institutions

by end of June 2012Establish appropriate gene

bank/cold storage facility

3 To prevent unauthorized use of

Company varieties throughout the

planned period

Implement intellectual property rights for all

company varieties throughout the planned

period

THEME VI: STRENGTHENING THE COMPANY’S FINANCIAL PROFITABILITY

Goal: To increase the company’s financial profitability hence enhance its competitiveness in

terms of investment

Objectives Strategy

1 Increase profit by 15% of revenue per

year by diversifying sources of

revenue and optimizing costs

Invest surplus funds in high yielding

securities

Invest in rental properties (offices)

Offer consultancy in research, seed

production/processing and soil analysis

Outsource non-core functions of the

organization

Design and implement an organization

wide cost reduction programme


26

5.0 CHAPTER FIVE: ORGANIZATIONAL STRUCTURE

5.1 Introduction

The structure is a coordinating tool where people in charge organize and control resources at

their disposal for optimizing performance, efficiency and effectiveness. It provides the

distribution of authority horizontally and vertically. It is also defined as the hierarchical

ordering of authority and responsibility to facilitate coordination and control of functions in an

organization

Modern management practice advocates for a lean structure (span of control) and short in terms

of number of hierarchical levels to facilitate corporate control, coordination and communication.

5.2 Principles underlying creation of Kenya seed company’s organization structure

Minimal feasible span of control

Shortest feasible chain of command

Avoidance of one-to-one reporting relationships

Avoidance of dual reporting relationships

Each level of authority and responsibilities are clearly spelt out and understood by all

organization‟s participants

Permit vertical and horizontal interactions and promote teamwork

Facilitates timely and efficient management of information and communication for

effective decision making.

Effective delegation and control of management processes. It will also be more flexible

due to the ever changing demands, unpredictable market behavior, and also focus on

the core competencies and emphasis on knowledge and talent.

Enhances the allocation and utilization of resources for the attainment of Company

objectives.

Notes:

i. The structure is expected to provide guidelines on position specifications (job

description) and position requirements (job holder specifications).

ii. In cases where persons holding jobs lack the required qualifications, the Board has

discretion to either retrain them or take such other actions that they may deem necessary

to correct the situation.

27

iii. All jobs defined in the new structure will be vacant and will be filled competitively. No

special preference will be given to job incumbents.

The purpose of a well -designed structure is to deliver value to the stakeholders in an efficient

and cost effective manner. For KSC to successfully implement its Strategic Plan there must be a

strong technical relationship between strategy and structure, quite independent of the

individuals occupying the positions.

Structure is both a pillar and a framework through which KSC will deliver its mandate, vision,

mission, objectives, and quality service to its customers.

5.3 Highlights of the Revised Structure

i. Span of control of the Managing Director reduced by creating three directorates: Deputy

MD/Director of Operations and Research; Director, Legal and Administrative services

and Director Finance and strategy.

ii. Establishing a reporting relationship between the Managing Director and the

subsidiaries at Director Level.

iii. Elevating the positions of Internal Audit Officer and Quality control officer to Manager

Level.

iv. Reducing hierarchical levels from 9 to 6 so that seniority will be captured by salary

bands

v. De-establishing the position of Deputy Managing Director and consolidating the duties

assigned to the office with those of the Director of Research and Operations. This is to be

captured by job evaluation

vi. Creating a new position of planning and strategy Manager

vii. Removing from the establishment substantive positions of personal secretaries and

creating a pool under the Legal and Administrative Services Directorate.

N.B: For the proposed organization structure, see Appendix 2 page 66

28

6.0 CHAPTER SIX: MONITORING AND EVALUATION

6.1 Monitoring and Evaluation at Board’s Level

The process of strategic planning does not end at the stage of completion of its

review/development. It needs to be regularly monitored and evaluated. M & E details progress

of change and impact indicators of change, performance management process, and financial

tracking systems for effective budget allocations and reallocations.

M & E is about tracking, discussing and reporting change and results as well as obstacles and

process leading to such. It is the primary vehicle for helping management and staff in

addressing core issues and questions about accomplishments, performance and

relevance/effectiveness of the strategies and interventions. A proper M & E can dramatically

increase our effectiveness, visibility and profile by allowing three important things to happen:

1. Giving us space to continuously learn from ground experience and reflect on our efforts

in order to take a corrective action

2. Providing management with adequate information for timely decision making

3. Monitoring & Evaluation aims at minimizing the risk of a strategic implementation

failure.

4. We perform regular monitoring to follow the Strategic plan

5. Successful monitoring is in the achievement or exceeding its intended impact within its

allocated resources.

6.2 Key Components of M & E

Indicators

Timeframe

Responsibility

Results/Reports

The nature and scope of reporting should include

a) Progress made against the plan

b) Causes of deviation from the plan

c) Areas of difficulties and alternative solutions to problems that may adversely affect

implementation

29

Monitoring and Evaluation seeks to:

i. Influence strategic planning implementation success

ii. Collect practical lessons to guide future planning

iii. Ensure sharing of experience and best practices

iv. To ensure that the organization is following the direction established during strategic

planning

v. Minimizing the risk of a strategic implementation failure.

Note: Plans are guidelines. They are not rules thus it is okay to deviate from a plan but

planners should understand the reason for the deviation and update the plan to reflect the new

direction.

6.3 Key Questions while monitoring and evaluating status of implementation of the plan

a. Are goals and objectives being achieved or not? If they are, then acknowledge and

communicate the progress. If not, then find out why and the necessary alterations

b. Will the goals be achieved according to the timeliness specified in the plan? If not, why?

c. Should the deadlines for completion be changed? (Be careful making these changes-

know why efforts are behind schedule before times are changed)

d. Are goals and objectives still realistic?

e. Should priorities be changed to put more focus on achieving goals?

f. Should the goals be changed?

g. What can be learned from our monitoring and evaluation to improve future planning

activities?

6.4 Monitoring & Evaluation Framework

M & E function will be managed by a strategy officer who will be appointed and assigned this

role among other strategy tasks. A committee to be convened by this officer will also be

appointed by the managing director. The committee will be given the mandate to coordinate

and direct the implementation of the plan. They will also convene such M & E forums as may be

required for smooth implementation of the plan.

30

6.5 Monitoring and Evaluation Framework Example

STRATEGIC

OBJECTIVE

AUDITABLE MILESTONE

Milestone Status due date Explanatory Notes Adjustment Required

To modernize

machinery by end of

first year of the

planned period (31st

December, 2011)

To modernize

machinery by end of

first year of the

planned period (31st

December, 2011)

Equipment audit

completed on 31st

March, 2011

Sourcing completed

and procurement

documents prepared

by 15th April

Order placed on 30th

May

Five (5) engineering

technicians and five

(5) machine operates

complete three months

training at the

equipment

manufacturer‟s

premises by 3oth May

Equipment received

and pre-installation

testing completed by

30th September.

Installation completed

by 30th November

Testing and

commissioning

completed by 31st

December

31

6.5 Monitoring and Evaluation at Management Level

The Plan alone does not mean the achievement or implementation of this strategy and its

objectives. Monitoring and evaluation provides the back-up necessary to ensure that objectives

are achieved. During the formulation of the strategy, the implementation plan, indicators and

projections are sometimes based on past experiences. These, however, may change in the course

of the implementation and thus a management control system will be necessary to ensure the

plan stays on course.

(a) In carrying out the management control function at management level, the following

measures will be considered:

Performance standards and targets

Performance measurements or indicators

Performance evaluation (staff, midterm internal and external)

(b) The strategic control mechanism will include:

Action plans

A check whether results produced by the implemented activity were those forecasted as

outputs and whether they were achieved according to stated performance measurement.

The officer in charge of strategy development will be tracking specific activities associated with

the implementation of the plan.

32

APPENDIX 1: IMPLEMENTATION MATRIX THEME ONE: SUFFICIENT QUANTITIES OF QUALITY SEEDS Strategic Issues:

1. Insufficient quantities of seed maize to meet the demand which leads to farmers buying seeds from competitors 2. Need to continuously improve quality of our products in order to remain competitive

Objectives Strategies Activities Output Outcome Objectively Verifiable Indicators

Means of verification

Year Budget Person Responsible

To increase seed production by at least 20% annually by broadening sources of seed

Increase area under irrigation by 20% per year

Lobby for irrigation farmers at Bura, Hola, Wei wei, Perkerra and Migotiyo to increase irrigated area under seed by 7% per annum

Seed production in small holder irrigated plots in Bura and Hola increased by 7% per year

Increased supply of quality seed maize will meet demand and position KSC competitively

Acreage under irrigation

Measurement of the irrigated area under seed

Yearly for three years

130 M Production Manager

Lobby for and recruit farmers in Narok, kibwezi and Masinga to utilize 3% of the irrigated land to seed production

Seed production increased by 3% in the designated areas

„‟ Acreage under irrigation

Measurement of the irrigated area under seed


46 M Production Manager

Produce seed in Uganda, Tanzania and Rwanda Produce seed in Uganda,

Conduct feasibility study by end of third month of the planned period

Feasibility study completed, legal issues addressed and production commenced by end of

„‟

Acreage under seed production in the respective countries

Measurement of area under seed production

Throughout the planned period

4.5 M Strategy Director Marketing Manager

33





Tanzania and Rwanda

Address all legal issues by end of six months of the planned period

second year of the planned period

„‟ Existence of signed documents on agreement to produce seed in the mentioned countries

Verification of the physical existence of signed documents and that they are valid


Company Secretary

Identify suitable land for seed production by end of one year of the planned period

„‟ Acreage under seed production in the respective countries


Production

Manager

Commence production in the second year of the planned period

„‟ Acreage under seed production in the respective countries


Production

Manager

Expansion of highland varieties‟ seed production by 8% annually throughou

Increase the area under production for highland varieties by 8% every year and be maintained throughout the planned period

Increase in planted acreage by 8%

„‟ Acreage increased by 8% per year throughout the planned period

Inspection of agreement documentation between KSC and growers

Yearly throughout the planned period

275 M Production manager Company secretary

34





t the planned period

Develop and disseminate seed production agronomic packages to all growers by end of year one of the planned period (including soil analysis)

Seed production agronomic packages in place and dissemination completed as scheduled

„‟ Evidence of existence of the agronomic packages; evidence of implementation by growers

Assessment of agronomic packages to ascertain conformity to expected standards; a survey to ascertain impact of dissemination

Year one 10 M Production Manager

Lobby for GOK institutions (ADC, NIB, ATC and Prisons) to increase area under seed production by 5% per year

Collaborators‟ area under seed production increased by 5% annually

„‟ Availability of area under seed production by collaborators‟ increased by 5%

Inspection of partnership agreements with collaborators


NIL Strategy Director Production Manager

Zone/cluster farmers to facilitate seed production ; activity to be completed within six months of the planned period

Area under seed production by growers increased and sustained

„‟ Availability of area under seed production by growers

Continuous inspection to verify that zoning is maintained

Continuous

NIL Production Manager

Lease/purchase at least 350 acres of additional land for basic seed production yearly

Land for own production increased by 5% per year

„‟ Lease transaction documentation completed

Physical inspection of lease transaction documents


100M Production Manager Procurement manager Company

35





Expansion of highland varieties‟ seed production by 8% annually throughout the planned period

and executed

secretary

Procure 3000 acres of land for production of basic seed and to carry out research trials.

1000 acres of land purchased per year for Basic seed production and for carrying out research trials

„‟ Physical existence of transfer of ownership documents of ownership

Verification of the physical existence of transfer of ownership including valid processed land title deeds


750M

Board of Directors Managing Director

Maintain sound grower base through good work relationship and other motivational mechanism

Develop growers‟ reward policy by end of first year

Reward policy in place by end of first year

„‟ Reward Policy/system in place and evidence of implementation

Inspection of reward policy/system and assessment of impact of implementation

End of first year

750M

Production Manager Finance manager

Improve grower prices to market rate level

Grower prices increased to match market rates

„‟ Evidence of growers‟ price increase as compared to market rates

Feedback from growers

New prices in place within six months; Prices to be revised and sustaine

NIL Production Manager Finance Director

36





d throughout the planned period

iv) Optimize yield per unit area

Provide capacity in the area of soil and water conservation

All growers trained and sensitized on soil and water conservation by end of year one

„‟ Evidence of soil and water conservation growers, plots

Physical verification of soil and water conservation to recommended standards

Training and sensitization completed within the first year; implementation to be continuous

180 M Production Manager Human Resource Manager

Create appropriate seed production agronomic packages and disseminate the same to the growers within the first year of the planned period

Seed production agronomic packages in place and dissemination completed as scheduled

„‟ Evidence of existence of the agronomic packages; evidence of implementation by growers

Assessment of agronomic packages to ascertain conformity to expected standards; a survey to ascertain the impact of dissemination (impact on production)

Year one 5 M Production Manager

37





v) Replenish the carryover stocks

Establish demand projections and prepare schedule for replenishment within three months of the planned period; replenish as per schedule throughout the planned period

Demand projections and replenishment schedule in place; replenishment targets achieved as per schedule

„‟ Physical existence of Demand projection s and replenishment schedules ; evidence of replenishment as per schedule

Inspection of demand projections and replenishment schedules; measurement of AMOUNTS replenished

Demand analysis and replenishment scheduling complete at the end of three months; replenishment throughout the planned period

5 M Production Manager Marketing and Sales Manager

Raise and maintain seed quality above the statutory standards (Cap 326) by end of first year and throughout the planned period

Introduce in-process quality control at all stages along the value chain

Undertake value chain analysis and create quality specifications

Quality specifications along the value chain established

Increased yields by farmers will lead to enhanced national food security

Evidence that the seed quality has been raised by at least 2% above the set standards by end of each planting season

Measurement of percentage rejection rates

Quality standards raised above provisions of CAP 326 by end of first year; quality to be maintai

5M Quality Assurance Manager

38




Raise and maintain seed quality above the statutory standards (Cap 326) by end of first year and throughout the planned period

Introduce in-process quality control at all stages along the value chain

ned throughout the planned period

ii) Train and sensitize all players along the value chain on their respective quality specifications

All the players along the value chain trained and ready to play their respective roles

Improved seed quality will position KSC competitively in the seed industry

„‟ Audit of quality against the specifications



39

THEME TWO: CUSTOMER FOCUS ORIENTATION Strategic Issues:

1. Need to meet the customers‟ existing demand for certified seeds 2. Need to continuously identify emerging trends/threats/opportunities and to take some strategic decisions

3. There are new markets thus it is important to assess and capture them ahead of our competitors

4. Maintaining and improving the company‟s good image for improved customer loyalty




Sustain the current customer base and grow it by at least 2% per year throughout the planned period

Timely implementation of customers‟ concerns/challenges as per annual customer satisfaction surveys

Create a customer care/service portfolio within sales and marketing and give them targets

Recommendations from customer satisfaction surveys implemented in time and contact with the customer enhanced

Increased and sustained customer base will assure KSC surviving and growth which will translate into enhanced food security.

Evidence that recommendations from customer satisfaction surveys are acted upon immediately the surveys are concluded Evidence that a customer care/service section has set up and facilitated within three months

Feedback surveys targeting all existing and potential customers Documents indicating recommendations have been implemented Physical verification of existence of the customer care/service team and facilitation Customer service charter for Kenya Seed Company

Customer service portfolio created by end of first year and implementation continuous

3M Sales and Marketing Manager

40




Sustain the current customer base and grow it by at least 2% per year throughout the planned period

Intensify local and international marketing activities to attract new customers at a rate of 2% per annum during the planned period

Create sales, marketing and distribution presence in these countries

Sales, marketing and distributional facilities created

„‟ Physical existence of facilities in respective countries % growth and evidence that there is at least 2% increase

Facilities audit and 2% increase in customer base Reports on surveys

3 years with milestones

30M Sales and Marketing manager

Maintain customer service /care excellence at world class standards throughout the planned period

Provide customer care/services excellence training and sensitization to all personnel who come in contact with customers

Draw a curricula for training and sensitization within three months of the planned period

All key customer care/service delivery personnel trained and sensitized to world class standards

Enhanced customer care/service delivery will translate into improved KSC bottom line

Reports on training and sensitization interventions

Review of reports

3 years with milestones as per annual work plan


41




Maintain customer service /care excellence at world class standards throughout the planned period Maintain customer service /care excellence at world class standards throughout the planned period

Provide customer care/services excellence training and sensitization to all personnel who come in contact with customers

Identify target group, draw the programme and implement and implement training within the first year of the planned period

„‟ „‟ Evidence of impact of training and sensitization

Customer feedback surveys

End of first year of the planned period


Create and implement customer service delivery standards along the sales and distribution value chain

Undertake sales and distribution value chain analysis

Value chain analysis concluded

„‟ Documented evidence that value chain analysis is concluded

Report on value chain analysis

„‟ 12M

Sales and Marketing Manager

Articulate customer service delivery standards

Customer service delivery standards established

„‟ List of customer service delivery standards/charter

Availability of set standards Customer Service charter for KSC

„‟ 2M Sales and Marketing Manager

42




Maintain customer service /care excellence at world class standards throughout the planned period Maintain customer service /care excellence at world class standards throughout the planned period

Articulate customer service delivery standards

Implement customer service delivery standards

Standards implemented and impact

continuously tracked

„‟ Evidence through customer feedback surveys that standards have been set and implemented Survey delivery standards

Survey feedback questionnaires/customer service charter for Kenya Seed Company

End of first year


43

THEME THREE: STRENGHTHEN HUMAN RESOURCE CAPACITY Strategic issues:

1. Need to identify skill gaps and attract skilled man power to enhance company productivity. 2. Need to review current organizational structure to be responsive to changing business environment 3. Need to develop and implement a succession plan to ensure continuity 4. Need to optimize human resource productivity to sustain and grow KSC business

Objectives Strategies Activities Output Outcome Objectively verifiable indicators



Create and operationalize a competitive system for recruiting and retaining competent staff during the first year of the planned period

Conduct job evaluation exercise

Commission consultancy services to conduct job evaluation

Job evaluation report in place

Attraction and retention of competent staff will improve company performance and enhance the bottom line.

Documented evidence that the job evaluation exercise has been completed

Job evaluation report and plan of action

End of one year

2.252 M Human Resource manager

Right size the establishment

Establish job descriptions and minimum requirements of the company and use them as a basis for right sizing the establishment

Establishment of right sized in terms of numbers and competencies

„‟ Evidence that right sizing has been successfully concluded

Number of positions right sized

End of one year

NIL Human resource manager

44





Create attractive compensation packages which are competitive with the market rates

Benchmark compensation with best comparators and adjust to competitive standards

Compensation packages made more attractive

„‟ Existence of competitive compensation packages

Availability of compensation packages and a roll-out programme

End of first year of the planned period

Awaiting JE recommendations

Human Resource Manager

Create and operationalize a year career development plan for all staff by end of first year of the planned period

Identify career development needs and aspiration for each personnel

Career development plan in operation and impacts on retention/performance observed

„‟ Verifiable evidence that a clear career development system is in operation

Physical verification of existence of career development plans

Year one and implementation throughout the planned period and beyond

NIL Human Resource Manager

Create and implement career development plans

„‟ „‟ Reports (Quarterly mid-term and end of term)on the performance of the system

„‟ NIL Human Resource Manager

45





Introduce results-based performance management system by end of first year of the planned period

Install performance management system

Performance management system in place and operational All operational staff trained on results-based performance framework

„‟ Physical existence of an operational performance management system All staff trained on results-based framework by end of 1st year

Physical verification Availability of training programme details i.e. content, number of sessions and names of staff trained

Year one 0.3M Human Resources Manager

Create and operationalize a succession management programme by end of first year of the planned period

Fill the positions targeted for succession with the most qualified people from the labour market(source both internally and externally)

Identify the scope of succession required

Positions for succession programming identified by first month

Management succession will ensure business continuity and management stability with barriers accruing to the company‟s bottom line

Verifiable evidence that the succession programme is in operation as per implementation

Initiation and status reports as per plan of activities


NIL Board of Directors MD

46




Create and operationalize a succession management programme by end of first year of the planned period

Fill the positions targeted for succession with the most qualified people from the labour market(source both internally and externally)

Recruit employees with a view of ensuring competency and successful job performance

Succession programming completed, targeted , successors identified and placed by the end of third month

„‟

Verifiable evidence that the succession programme is in operation as per schedule and that recruitment is based on competency

Existence of status report


NIL

Board of Directors MD

47

THEME IV: STRENGTHENING OPERATIONAL EFFCIENCY Strategic issues:

1. Old Equipment Characterized by High Downtime, low capacity, unavailability of spares leading to high cost of production

2. Manual Processes and disconnected functions in the Company leading to time waste, delayed decision making. 3. Lack of accreditation of OECD and ISTA leading to high costs of field crop certification and seed testing




a) Modernize equipment in phases of twelve months over a period of three years

Increase seed driers processing output to 20 T/Hr by 30th June, 2011

Procure & install 1 & 2 kg packaging machine by 30th June, 2011.

Installation of 1 and 2kg packaging machine completed as per schedule

Modernized equipment will increase productivity and efficiency and hence enhance the company‟s bottom line

Verifiable documented evidence that the machines have been installed, tested and commissioned as per scheduled

Technical audit /verification of the equipment

End of year one

55M Processing Manager Procurement Manager

Train engineers and technicians on the operation and maintenance of the new machines

Engineers and technicians trained in operation and maintenance of the new machinery

„‟ The engineers and technicians‟ competencies as demonstrated through operation and maintenance of the new machinery

Report on training provided. On the job performance evaluation

End of year one

Processing Manager Procurement Manager HRM

48




Modernize equipment in phases of twelve months over a period of three years

Upgrade a processing line in Nakuru factory by end of 2012/2013

Procure and install pre-cleaner and dresser by end of two years of the planned period

Pre-cleaner and dresser installed, tested and commissioned as scheduled

„‟ Verifiable documented evidence that the pre-cleaner and dresser machines have been installed, tested and commissioned as per schedule


End of two years

8 M Processing manager Procurement Manager Nakuru Factory Manager

Purchase a batch dressing machine and laboratory equipment to increase output and enhance uniformity of dressing seed by June 2012

Procure and install a batch dressing machine by June 2012

Batch dressing machine installed, tested and commissioned as per schedule

„‟ Verifiable documented evidence that the batch dressing machine has been installed, tested and commissioned as per scheduled


End of June 2012

5.3 M Quality Assurance Manager Procurement Manager

Train seed analysts on the use of modern laboratory equipments by June 2012

Seed analysts trained on the use of modern laboratory equipments as per schedule

„‟ Seed analysts‟ competencies as demonstrated through use of modern laboratory equipments


End of two years

0.25 M Quality Assurance Manager Procurement Manager HRM

Upgrade farm machinery at EDF by June, 2013

Carry out farm machinery audit by June 2011

Farm machinery audit report detailing recommendations as per schedule

„‟ Physical evidence that the farm machinery are in place and operational as per schedule

Machinery audit and recommendations report

End of year one

150 M

EDF manager Procurement Manager Agriculture Engineer

49




Modernize equipment in phases of twelve months over a period of three years

Upgrade farm machinery at EDF by June, 2013

Procure the machinery by June, 2013

Farm machinery in place and operational as per schedule

„‟ Verifiable documented evidence that the machinery are new and conform to specifications provided in the audit report

Machinery commissioning report Physical verification of the existence of the machinery

End of two years

EDF manager Procurement Manager Agriculture Engineer

Dispose old and obsolete equipment as per the Public Procurement and Disposal Act

Undertake valuation of the equipment

Equipment disposed as per the Public Procurement and Disposal act

„‟

Verifiable documented evidence that the obsolete and old equipments have been disposed in conformance to the Public Procurement and Disposal Act

Physical verification of disposal documentation

End of June, 2013

NIL Procurement Manager

Advertise for the equipment

Process bills and dispose to the most responsive bidders

To eliminate manual and disconnected business process functions that lead to time waste and

Automate Whole Value Chain of KSC by automating routine, operational

Create a seamless workflow interface within the organization by upgrading

Seamless workflow interface within the organization created and operationalized

Eliminating manual and disconnected business process

Verifiable physical evidence of the existence of a seamless workflow interface in KSC

Physical inspection of the existence of a seamless workflow interface that it is operational

End of December 2012

5M ICT Manager

50




delayed decision making by December 2011 To eliminate manual and disconnected business process functions that lead to time waste and delayed decision making by December 2011

and end to end processes within all the departments in the company by December, 2011.

core infrastructure (Connectivity) through VPN centralized co-ordination and management of network services by December 2011

functions will lead to faster decision making, increase productivity and efficiency and hence enhance the company‟s bottom line

and efficient

Create a single enterprise business processes convergence portal by implementing an ERP, CRM Systems across departments

Create a single enterprise business processes convergence portal by implementing an ERP, CRM Systems across departments

Single business processes convergence portal created

„‟ Verifiable evidence that a single business process convergence portal has been created and operational

Inspection of the operation of the business process convergence portal

September, 2011

40M ICT Manager

51




To eliminate manual and disconnected business process functions that lead to time waste and delayed decision making by December 2011

Build a robust on-line business platform maximizing on the advantages of the web i.e. e-marketing, e- purchasing

Build a robust on-line business platform maximizing on the advantages of the web by December, 2011

Robust on-line business platform built

„‟ Verifiable evidence of the existence and use of the web in e-marketing, e-purchasing by the company

Inspection of feedback reports Physical accessibility of the use of web for marketing and purchasing

Developing on line business platform by end of first year and implementation to be continuous

5M ICT Manager Marketing Manager

To work towards attainment of ISTA accreditation to be able to issue certification by June 2013

To attain the status of an ISTA accredited laboratory in Kenya

Issuing of purity and germination `results in every season throughout the planned period

Purity and germination results forwarded to ISTA quarterly and feedback received

Acquisition of ISTA accreditation will significantly improve seed production quality and hence enhance KSC‟s competiveness

Documented evidence that the purity and germination results have been forwarded to ISTA on quarterly basis and feedback received

Forwarding and feedback documents

3 years quarterly

5.3M Quality Assurance Manager

52






Train seed analysts on ISTA procedures by December 2012

Seed analysts trained on the on ISTA procedures as per schedule

„‟ demonstrated competence in application ISTA procedures


End of two years

0.5 M Quality Assurance Manager HRM

Attend workshops, meetings and congresses organized by ISTA as and when they are held

Targeted personnel attended workshops, meetings and congresses organized by ISTA as per schedule

,, Documented evidence that the targeted personnel attended the events and end of workshop, meetings and congresses report

End of event reports/minutes

Throughout the planned period as need arises

2.5 M Quality Assurance Manager HRM

Establish a quality management system according to ISTA laboratory accreditation standards which include SOPs and work

Quality management system in place

„‟ Documentation of the quality management system

Quality management system verification

3 years 0.2 M Quality Assurance Manager

53






instructions by March 2013

Participate in ISTA proficiency test program on quarterly basis

Participation in ISTA proficiency test programs

„‟ Verifiable documented evidence of the company‟s participation in ISTA proficiency test programs

Feedback reports from ISTA on the test performance of KSC

Throughout the planned period on quarterly basis

0.1 M Quality Assurance Manager

Apply for ISTA accreditation by March, 2013

ISTA accreditation certificate in place as per schedule

„‟ Physical existence of registration certificates as per schedule

Inspection of registration certificate from ISTA that it is valid and updated.

End of third year of the planned period

0.6 M Quality Assurance Manager Managing Director

54




To be authorized institution in the execution of OECD schemes for varietal certification of seed and ensure that the rules and directions of schemes are strictly observed by June 2013

To obtain OECD requirements in varietal certification by June 2013 To obtain OECD requirements in varietal certification by June 2013

Carry out a pre-control certification of all seed varieties by the end of first year of the planned period

Pre-control certification of all seed varieties carried out and results stipulated for further improvement

Authorization of the company to execute OECD schemes for varietal certification of seed will enable KSC to reduce field inspection costs and earn additional revenue by doing field inspection to other companies in the seed industry

Documented evidence of Pre-control certification reports

Inspection of pre-control certification reports

Year one of the planned period

1 M Quality Assurance Manager

55




To be authorized institution in the execution of OECD schemes for varietal certification of seed and ensure that the rules and directions of schemes are strictly observed by June, 2013

To obtain OECD requirements in varietal certification by June 2013

Develop and operationalize field inspection standard procedures within the first three months of the planned period

Field inspection standard procedures as per OECD requirements developed and operationalized within the first three months and sustained throughout the planned period

„‟ Verifiable evidence that a clear field inspection standard procedures has been developed and is in operation

Physical verification of existence of field inspection standard procedures

Three months and implementation throughout the planned period

0.25 M Quality Assurance Manager

Acquire, train and empower field inspectors for varietal certification by end of first year of the planned period

Field inspectors in place and trained for varietal certification

„‟ Verifiable documentation on signed job contract between field inspectors and KSC. Evidence of improved field inspectors‟ competencies

Verification of the existence of signed job contracts. Report on training provided. On the job performance evaluation

End of year one of the planned period

0.3M HRM Quality Assurance Manager

Training of Seed Analysts by end of

Seed analysts trained on the on OECD procedures

„‟ Seed analysts‟ competencies as demonstrated through use of

Report on training provided.

End of two years

0.25M Quality Assurance Manager HRM

56




To be authorized institution in the execution of OECD schemes for varietal certification of seed and ensure that the rules and directions of schemes are strictly observed by June, 2013

To obtain OECD requirements in varietal certification by June 2013

two years of the planned period

as per schedule

modern laboratory equipments

On the job performance evaluation

Apply for designation as an authority responsible for implementing OECD schemes.

Application lodged by June 2013

„‟ Application documentation properly executed

Inspection of application documentation

End of three years


To enhance the security of company assets by installing CCTV cameras by June 2013

Install CCTV cameras at all entry points and alarm systems in sensitive offices by end of June 2013

Procure and install CCTV cameras and alarm systems by end of June 2013

CCTV cameras and alarm systems installed, tested and commissioned as per schedule

Installation of CCTV cameras and alarm systems will significantly reduce pilferages of company assets and

Verifiable documented evidence that CCTV cameras and alarm systems have been installed, tested and commissioned as per scheduled


End of 3rd year

1M Procurement Manager Security Manager Managing Director

57




To enhance the security of company assets by installing CCTV cameras by June 2013

ensure protection of all company assets

Intensify intelligence and weekly reports throughout the planned period

Regular collection of intelligence and weekly submission of reports

Intensified patrols, intelligence and weekly submission of reports

„‟ Evidence of existence of weekly reports on intelligence

Assessment of weekly reports on intelligence

Reports to be submitted on weekly basis; intelligence collection to continue throughout the planned period

1 M Security Manager

58

THEME V: RESEARCH AND DEVELOPMENT Strategic Issues:

1. Retaining seed competence through focused research and development is a challenge that requires addressing




To exploit plant genetic resources to develop and maintain superior varieties throughout the planned period.

Apply conventional breeding and emerging technologies to develop new varieties throughout the planned period

Purchase equipment for gene mapping Within the first year of the planned period

Equipment for gene mapping purchased, tested, installed and commissioned by June 2013

Application of conventional breeding and emerging technologies will help develop and maintain superior varieties

Verifiable documented evidence that the equipment has been installed, tested and commissioned as per schedule

Technical audit /verification of the equipment Inspection of reports on gene mapping

End of first year

15 M Research and Development Manager Procurement Manager

Purchase equipment for soil analysis by end of second year of the planned period

Equipment for soil analysis tested, installed and commissioned as per schedule

„‟ Verifiable documented evidence that the equipment has been installed, tested and commissioned as per scheduled

Technical audit /verification of the equipment Inspection of reports on soil analysis

End of second year

6 M Research &Development Manager Procurement Manager

59





Apply conventional breeding and emerging technologies to develop new varieties throughout the planned period

Develop protocols for detection of GMOs seed from Non-GMO Seeds by June, 2013

Protocols for distinguishing GMO seeds from non GMO seeds developed and operationalized

„‟ Documented evidence that the protocols have been developed and in use in detecting GMO seeds from non GMO seeds

Documentation on protocols and evidence of application

Yearly and continuous

8M Research &Development Manager

Inbred line development hybridization throughout the planned period

Superior seed varieties developed

„‟ Physical existence of superior seed varieties

Physical inspection of superior varieties

Continuous

60M Research & Development Manager

Variety evaluation and release throughout the planned period

National Performance trial completed and varieties released by KEPHIS

„‟ Verifiable evidence that the national performance trial process has been undertaken and varieties released

Inspection of variety release documents


37M Research & Development Manager

60





Maintain parentals of release varieties throughout the planned period

Maintenance of check plot, finger printing of parental lines and defect reduction of released varieties

Parentals of the released varieties maintained by continuously ascertaining that the original characteristic s are sustained

„‟ Verifiable documented evidence that the parentals of released varieties have been maintained continuously

Periodic reports on maintenance of parental of released varieties

„‟ 15M Research and Development Manager

To widen genetic base of germplasm continuously throughout the planned period.

Establish collaborative research networks with regional and international research institutions by end of June 2012

Negotiate with suitable partners and identify joint projects to participate in within the first year of the planned period

Memorandum of understanding on collaboration concluded and joint projects identified as per schedule

Widening genetic base of germplasm and establishing collaborative research networks with research institutions will improve the quality of seed production and hence enhance the company‟s competitiveness in the industry

Verifiable documented evidence that Memoranda of understanding between KSC and collaborating research institutes has been drawn and executed. Evidence that joint projects between KSC and collaborating research

Inspection of physical existence of the memoranda of understanding documents Physical inspection of documented projects identified and existence of plan of action

End of second year of the planned period

4.2M Research and Development Company secretary

61




institutes have been identified and plan of action drawn

To prevent unauthorized use of Company varieties throughout the planned period

Implement intellectual property rights for all company varieties throughout the planned period

Negotiate and document plant breeders rights by end of first year of the planned period

plant breeders rights negotiated, documented and operationalized as per schedule

Protecting company „s varieties from un authorized users will enhance the company‟s competitiveness in the industry and also sustain the business

Documented evidence that the plant breeders‟ rights have been negotiated, documented and operationalized

Physical inspection of plant breeders‟ rights documentation


1.5 M Research and Development Manager

Work closely with STAK in formulating and operationalizing a policy on payment of royalties by end of the planned period

Pursue STAK to ensure that a policy on payment of royalties is in place and operational as per schedule

„‟ Verifiable documented evidence that a policy on payment of royalties exists and is operational as per time frame

Physical existence of the policy

Policy in place by and operational by the end of the planned period

NIL Research and Development Manager

62




To prevent unauthorized use of Company varieties throughout the planned period

To evaluate and recommend sustainable production systems always throughout the planned period

Identify suitable herbicides, insecticides, fungicides

Agronomic packages developed.

“ Verifiable documented recommendations

Documents on recommended agronomic packages


15 M Research Manager

63

THEME SIX: STRENGTHENING THE COMPANY’S FINANCIAL PROFITABILITY Strategic Issue:

1. Declining profits affect our ability to sustain the business




Increase profit by 15% of revenue per year by diversifying sources of revenue and optimizing costs

Invest surplus funds in high yielding securities

Undertake study to establish investment options, rates of retention and related risks

Investment options analyzed and most viable ones selected

Improved financial stability will facilitate capital investment and improve liquidity

Verifiable evidence that the necessary pre-investment study has been concluded by 30th June of each year

Report on pre-investment study


0.5M Finance Director Finance Manager

Invest the surplus funds after necessary consultations/approvals

Funds invested and returns of investment accrued

„‟ Verifiable evidence that 15% of annual revenue has been invested in high yielding securities

Documents on investment transaction Tracking ion the investment performance


1.5 B Finance Director Finance Manager


Undertake a feasibility study to establish viability of rental properties as an investment option by end of six months

Feasibility study completed as per schedule

„‟ Verifiable evidence that the feasibility study has been conducted as per the schedule

Feasibility study report


0.5 M Finance Director Managing Director

64






Commission consultancy building, construction and related work to deliver turn key projects by end of planned period

Properties developed and occupied as per schedule

„‟ Physical existence of the properties and completing certificates by ministry of public works

Physical verification and inspection of completion certificates

„‟ 200 M „‟

Offer consultancy in research, seed production/processing and soil analysis

Conduct feasibility study to determine viability of consultancy services as a source of revenue by three months

Feasibility study completed

„‟ Verifiable evidence that the feasibility study has been conducted as per schedule

Report on feasibility study


0.4 M Finance Director Research Manager

Prepare and disseminate policy and engagement guidelines governing consultancy services by end of six months

Policy and engagement guidelines in place and appropriately disseminated

„‟ Existence of the policy and engagement guidelines

Inspection of policy and engagement guidelines documentation

„‟ 0.1 M „‟

Outsource non-core functions of the organization

Identify non-core functions and carry out cost-benefit analysis by end of 3rd month of the planned period

Non-core functions suitable for outsourcing identified

„‟ Verifiable evidence that Cost- Benefit Analysis has been conducted

Cost- Benefit Analysis on non-core functions

1 year NIL Finance Director Company Secretary

65





Outsource non-core functions of the organization

Prepare and execute outsourcing contracts by end of 6th month

Non-core functions outsourced

„‟ Existence of outsourcing contracts

Availability of outsourcing documentation

0.1 M „‟

Design and implement an organization wide cost reduction programme throughout the planned period

Identify and define cost centers along the organization‟s value chain within 3 months

Cost centers identified and defined as per schedule

„‟ Existence of a report on cost center analysis

Inspection of the report

0.15 M Finance Director All Managers

Create and disseminate recommendations for cost reduction/containment within 6 months

Recommendations ready and disseminated to all concerned as per schedule

„‟ Existence of recommendations and verifiable evidence that all concerned persons have been notified and sensitized on the same

Survey to verify that the programme is in operation

0.05 M „‟

66

Appendix 2: Organizational Structure

…………………………………………………………………………………………………………………………………………………………………………….................................................

SHAREHOLDERS

BOARD OF DIRECTORS

MANAGING DIRECTOR

ADMIN

OFICERS

HR

OFFCRS

DIRECTOR, FINANCE AND STRATEGY

FINANCE

MANAGER

ACCOU

NTANTS

PLANNING

OFFCR

DEPUTY MD/DIRECTOR,

OPERATIONS & RESEARCH

PROCESSING

MANAGERS

PROCESSSIN

G OFFICERS

MAINT.

ENGRS

PRODUCTIO

N MANAGER

PROD.OFFCR

(BASICSEED,

MAIZE,

OTHER CROPS

NAKURU)

MANAGER

EDF FARM

FIELD

OFFCR

AGRIC

ENG.

SALES &

MARKETING

MANAGER

QUALITY

ASSUARANCE

MANAGER

MKTING

OFFCRS

SALES

OFF.

QLTY CONT.

ASST OFFCR

SECURITY

OFFICERS

SECURITY

SUPERVISORS

HR & ADMIN

MANAGER

AUDITORS

ICT.

OFFIC

RR

INTERNAL

AUDIT

MANAGER

PR

ASSTS.

SUBSIDIARIES

RESEARCH &

DEV. MANAGER

RESEARCH

OFFICER

DIRECTOR, LEGAL AND ADMINISTRATION SERVICES

SECR.

POOL

PROC.

ASS

ACCTS CLERKS

S

PROCESSING

TECHNICIANS MAINTENANCE

TECHNICIANS FIELD

ASST

MECHANICS

FIELD

ASST

OPERATORS

SALES

ASSISTANTS

TECHNICAL

ASSISTANTS

QUALITY

CONTROLLERS

MECHANICS

PLANNING

STRATEGY

MANAGER

SECURITY

MANAGER

ICT

MANGR

PRC.

OFFCR

LEGAL

OFICERS

67

Appendix 3: Financial Projection

Kenya Seed Company Limited

TRADING &PROFIT AND LOSS ACCOUNT FOR THE YEARS 2008/2009-

2012/2013

(Amounts in KShs. ''000'')

SALES BUDGET

2008/200

9

2009/201

0

2010/201

1

2011/201

2

2012/201

3

Seed maize 2,502,060 2,550,000 2,652,000 2,754,000 2,856,000

Pasture seed 56,100 61,710 71,910 75,480 82,110

Sorghum Seed 20,400 29,580 31,076 35,360 42,160

Sunflower seed 60,720 68,200 71,280 79,640 92,400

Commercial Sunflower 21,150 22,950 25,200 27,000 31,500

Seed Wheat 207,000 320,000 330,000 340,000 350,000

Farm produce 16,744 17,581 20,754 22,491 23,366

Vegetable seed 42,001 44,100 50,375 54,718 58,898

Sub - Total 2,926,175 3,114,121 3,252,595 3,388,689 3,536,434

COST OF SALES

OPENING STOCKS

Seed maize 1,353,046 861,929 766,659 766,659 766,659

Pasture seed 31,057 27,557 32,457 30,707 27,907

Sorghum Seed 15,248 14,069 13,937 13,753 13,357

Sunflower seed 8,994 9,698 7,938 7,234 6,882


Seed Wheat 1,440 75,600 67,600 59,600 51,600

Farm produce 15,000 25,008 36,884 56,898 56,914

Vegetable seed 20,000 20,801 24,116 29,622 27,776

1,446,085 1,036,223 950,891 965,513 952,135

PURCHASES

Seed maize 596,245 1,010,390 1,125,800 1,171,800 1,215,200

Pasture seed 35,000 47,250 47,600 49,000 56,700

Sorghum Seed 6,593 11,340 11,867 13,318 16,285

Sunflower seed 49,280 52,800 56,320 63,360 70,400


68

Seed Wheat 270,000 291,400 288,000 264,000 272,000

Farm produce 25,116 27,699 38,693 20,257 1,045

Vegetable seed 26,002 29,775 35,731 30,985 38,207

1,020,716 1,483,653 1,618,311 1,628,320 1,688,037

CLOSING STOCKS

Seed maize 861,929 766,659 766,659 766,659 766,659

Pasture seed 27,557 32,457 30,707 27,907 28,257

Sorghum Seed 14,069 13,937 13,753 13,357 13,291

Sunflower seed 9,698 7,938 7,234 6,882 3,362


Seed Wheat 75,600 67,600 59,600 51,600 43,600

Farm produce 25,008 36,884 56,898 56,914 36,930

Vegetable seed 20,801 24,116 29,622 27,776 30,645

1,036,223 950,891 965,513 952,135 923,784

(Amounts in KShs. "000")

2008/200

9

2009/201

0

2010/201

1

2011/201

2

2012/201

3

COST OF SALES

Seed maize 1,087,361 1,105,660 1,125,800 1,171,800 1,215,200

Pasture seed 38,500 42,350 49,350 51,800 56,350

Sorghum Seed 7,772 11,472 12,052 13,713 16,351

Sunflower seed 48,576 54,560 57,024 63,712 73,920


195,840 299,400

272,000 280,000 Seed Wheat 296,000

Farm produce 15,108 15,823 18,679 20,242 21,029

Vegetable seed 25,201 26,460 30,225 32,831 35,339

1,430,578 1,568,985 1,603,690 1,641,698 1,716,389

GROSS PROFIT

Seed maize 1,414,699 1,444,340 1,526,200 1,582,200 1,640,800

Pasture seed 17,600 19,360 22,560 23,680 25,760

Sorghum Seed 12,628 18,108 19,024 21,647 25,809

Sunflower seed 12,144 13,640 14,256 15,928 18,480

69


Seed Wheat 11,160 20,600 34,000 68,000 70,000

Farm produce 1,636 1,758 2,075 2,249 2,337

Vegetable seed 16,800 17,640 20,150 21,887 23,559

1,495,598 1,545,136 1,648,905 1,746,991 1,820,045

Other Income

Rent Income 2,640 2,666 2,720 2,747 2,775

Interest on Treasury Bills 13,800 13,938 14,077 14,218 14,360

Interest on advances 5,060 5,111 5,213 5,265 5,318

Profit on sale of Fixed Assets 5,000 4,500 3,645 3,281 4,265

OPERATING EXPENSES 882,756 899,447 966,032 1,037,560 1,066,788

Depreciation 181,755 190,843 179,315 179,315 195,888

NET PROFIT(LOSS) BEFORE

TAX 457,587 481,062 529,213 555,627 584,086

Tax 30% 137,276 144,319 158,764 166,688 175,226

Net Profit After Tax 320,311 336,743 370,449 388,939 408,861

Gross Profit as a % of Sales 51 50 51 52 51

Net Earnings per ordinary Share

(shs) 30 31 34 36 38

Net Earnings on ordinary

activities as a % sales 16 15 16 16 17

Total Income : Total Cost (n:1) 1.17 1.17 1.18 1.19 1.19

70

Appendix 3: LIST OF PARTICIPANTS

NO. NAME TITLE

1. MR. ANDREW MULLEI CHAIRMAN

2. MR. SYMON CHEROGONY DIRECTOR

3. MR. WILLIAM KIRWA DIRECTOR

4. MRS. JEDIDAH GACHANJA DIRECTOR

5. JOHNSON IRUNGU WAITHAKA DIRECTOR

6. MS. BEATRICE KING‟ORI DIRECTOR

7. MRS. JUSTINA SITTI DIRECTOR

8. MR. STEPHEN M. NYACHIRO DIRECTOR

9. MR. JOSEPH MWANGI DIRECTOR

10. MR. FRANCIS KOECH DIRECTOR

11. HON. WILBERFORCE KISIERO DIRECTOR

12. MISS REHEMA D. JALDESA DIRECTOR

13. MR. WILLY BETT MANAGING DIRECTOR

14. MR. ALFRED B. TABU DEPUTY MANAGING DIRECTOR

15. MR. LENARD MENYA FINANCE MANAGER

16. JUDY C. KOSKEI HUMAN RESOURCE MANAGER

17. FRANCIS MWAURA SALES & MARKETING MANAGER

18. FRANCIS NDAMBUKI RESEARCH & DEV. MANAGER

19. ROSE CAURI COMPANY SECRETARY

20. ANDREW NG‟ENO PROCESSING & ENG. MANAGER

21. EUNICE OMBACHI AG. OPERATIONS MANAGER E D F

22. JOYCE AGUFANA CHIEF OFFICER NAKURU BRANCH

23. DAVID MATARA CHIEF INTERNAL AUDITOR

71

NO. NAME TITLE

24. SAMMY CHEPSIROR CHIEF PUBLIC RELATIONS OFFICER

25. LUCAS NYANGWESO CHIEF PROCUREMENT OFFICER

26. AZARIA SOI GENERAL MANAGER S SEEDS

27. NOBERT IKUNDO CHIEF OFFICER ICT

28. HOSEA SIRMA CHIEF OFFICER BASIC SEED UNIT

29. JOSEPH MUINDI SENIOR PROCUREMENT OFFICER

30. THOMAS MUKUNG SENIOR SECURITY OFFICER ADMN

31. ERIC KIPLAGAT CHIEF ACCOUNTANT

32. PHILLIP CHEMWETICH CHIEF OFFICER ICT

33. PAUL LOLWERIKOI AG. CHIEF PASTURE/SUNFL

34. ALFONSE LABOSO DEPUTY RESEARCH & DEV. MANAGER

35. STEPHEN MALAKWEN AG. CHIEF HR & ADMIN OFFICER

36. ELIJAH SAWE SENIOR QUALITY ASS. OFFICER

37. BEATRICE AYABEI AG. CHIEF DISTRIBUTION OFFICER

38. JULIUS MASAI SENIOR SECURITY OFFICER OPERATIONS

39. MICHAEL ROTICH SENIOR HR & ADMIN OFFICER

40. PAUL TONUI FIELD OFFICER