We associate with Investment Development Consultancy S.A. (IDC) of France . IDC is based in Paris , France , and specializes in Public Sector Management, institutional strengthening and financial services to developing countries and economies in transition.
The group's experience and expertise has resulted in cutting a niche in specific sectors and services as summarized above in our introduction and background to the Group. In brief our specialization is concentrated on the following areas:
We have experience in World Bank financial, procurement and contracting procedures gained when our consultants were involved in the implementation of the Protected Areas and Wildlife Service (PAWS) Project at Kenya Wildlife Service. We have also carried out value for money audits on 121 NGOs/CBOs funded by the World Bank through the National Aids Control Council in Kenya . During these audits, we were required to review, inter alia, the procurement procedures and recommend any improvements thereon.
We have also carried post reviews of other projects funded by development partners in Tanzania and Eritrea . These included the Participatory Irrigation Development Programme, the Rural Financial Services Programme and the Agricultural Marketing Systems Development Programme.
We have also developed Procurement, Financial and Technical Compliance Procedures for Kenya Roads Board as well as the Gash Barka Livestock and Agricultural Development Project in Eritrea .
Public Sector Management
The Group has developed a niche in public finance and general management covering both central governments and its institutions, and local authorities. We have advised governments and local authorities on budgets and monetary policies and in particular on public debt management and controls. Also we played a key role in development of the simplified accounting systems for local authorities under the Kenya Local Government Reform Programme (KLGRP).
Our experience in this area has been on public enterprises cross-debt and other indebtedness study in Kenya including developing settlement procedures and policies; as stated above, development of a simplified accounting system for local authorities in Kenya; special audit for - Water & Sewerage Department.
Financial Management and Management Information Systems
Most of our key consultants are specialized in financial management and management information systems. We advise clients both in private and public sector on financial management and information systems flow for
efficient dissemination and decision-making. In this area we have developed procurement, inventory, fixed assets, and management information systems designs for clients in private and public sectors. Furthermore we have developed policy and procedure guides covering purchasing, stores, accounting manuals, etc covering all sectors of the economy.
Examples include purchasing and stores policy and procedure manual for Kenya Ports Authority ; fixed asset management system for Kenya Ports Authority and African Economic Research Consortium (AERC); financial systems and accounting manuals for the Kenya Local Authorities, Institute of Policy Analysis and Research, Afrofreight Forwarders Ltd; Financial modeling for Kenya Ports Authority and Kenya Railways Corporation in evaluating the options for restructuring, Sierra Leone Port Authority, Tanzania Habours Authority and Kenya Tea Development Authority.
Micro Enterprise and Agro- Business Services
Kenya like many other developing countries relies a lot on smallholder farmers and other micro enterprises for its short-term and long-term development strategies. We have developed a niche to work with development institutions in uplifting the standard of living of Kenyans. This is best achieved through development of micro enterprise businesses and enhancement of smallholder agricultural production capability.
To this end, we have worked with the World Bank in restructuring of the smallholder tea farms and looking at best farming methods to enhance their returns. Also we have worked with IFAD in evaluation of their various programs in which they have financed various community-based development projects. Other related areas we have worked, include development and implementation of business plans for small and medium irrigation projects.
We recognize that if an organization is undergoing financial problems, requires to change its business strategy due to external or internal factors, wants to expand into new markets, or generally wants to re-evaluate itself so as to be sure that it is well positioned to face future challenges, restructuring diagnosis is necessary. In our specialization we look at both the financial and operational restructuring which in accordance with our model provides the solutions and strategies to achieve the required business solutions.
Our sector experience so far in restructuring has been in agriculture (example - restructuring of the tea sector in Kenya and in particular the Kenya Tea Development Authority (KTDA); transport sector (example - restructuring of Kenya Ports Authority (KPA), Sierra Leone Port Authority and Kenya Railways Corporation); and parastatal sector where we recommended various restructuring proposals to the parastatal sector in Kenya as part of the debt prevention measures to be adopted by the Kenya Government.
Privatization/Commercialization and Regulatory Reform
One of the basic business strategies resulting out of a restructuring study, especially for public corporations, is privatization or commercialization. Even for a private company, the results of a restructuring study would perhaps be to float the company in the stock market, and/or sell part of the shareholding to a strategic investor. We undertake diagnostic evaluation of the various privatization strategies, which may vary from a management contract, lease, concession, sale of assets, sale of shares or a combination of two or more options. We are therefore involved in preparation of business plans taking up various options and advising our clients on the best option. In addition we undertake business valuation of the corporation and advise our clients in evaluating the price bids.
Depending on the corporation and the method of privatization or commercialization that may be recommended, we advise on necessary regulatory reforms which must be put in place so as to achieve level playing field without exploiting the consumer and at the same time providing optimal returns to the private operator.
Our experience in this area has been the privatization and share allotment for KTDA factory companies.
Taxation Advisory Services
We advise our clients on efficient tax planning and management methods, which ensure that our clients meet the statutory requirements, pay taxes on time, avoid imposition of penalties and optimize the incidence of tax on their profits.
Receiverships, Reorganizations, Mergers and Acquisitions
With the world becoming smaller through globalization, it is inevitable that most inefficient businesses are increasingly finding it difficult to survive. Obviously if some of these businesses were to be saved from imminent closure a lot of restructuring as discussed above would need to be put in place.
From our experience most businesses, if put under receiverships never come out as going concerns in their original business set up. Part of this, we realize is caused by inexperienced receiver/managers who instead of working towards businesses reconstruction end up trying various experiments which put the organizations into even deeper financial quagmire.
Our group's approach to receivership is one of reinstating the organization back on track where possible. Immediately on being appointed as receivers we apply our financial model to determine the sustainability of the enterprise. This is done efficiently and objectively. Depending on the size of the business, we are able within a period of one to three months to advise the financiers and the owners on whether to liquidate the company or restructure it through controlled management. The restructuring could be through financial restructuring and/or it could take the form of operational restructuring which would involve, selling the company as a going concern, reorganization proposals on merger with a stronger company, etc.
Governments and public enterprises
Agriculture and other related fields
Printing and publishing
Water and sewerage