1

HA

SHI T

OD

AY

D E C 2 0 1 4

I S S U E N ° : 5

HASHI a better future

2 3

VISION 2015Bring power to rural homes across sub saharan africa.

It is with great privilege that I welcome you to 4th quarter

Hashi Newsletter 2014.

As we move into a new year, we want to reflect on a great year

gone by, as well as look forward to a bright upcoming year that

will see our teams reach higher and further.

As with every year, we will see changes within our teams, for those

of you who have embarked on new career chapters, we wish you

all the best in your future endeavors. At the same time, we welcome

those who have joined the ranks may you all be blessed with the

luck and courage to attain the highest accolades and to find a

home within our institution.

Hashi... a better future.

FROM THE EDITOR’S DESK

International House, 11th floor, Mama Ngina StreetC: +254 733 700 399 | T: +254 20 221 5088E: info@hashienergy.com | www.hashienergy.com

W O R L D E M B R A C E S I P V 6

M A N A G E M E N T T U R B U L A N C E

W O M E N A S L E A D E R S

EditorialTeam

Emilia Kaczmarek Duncan Kiprotich Chesosi

&

HASHI a better future

4 5

For many businesses, there comes a time when margins are not growing, even worse dwindling, and expenses ballooning bringing into question the long-term sustainability of the business. This presents a major issue for a business. In audit some time back, we used to call this a-stay-awake-at-night issue. Stay awake at night issue because everybody loses sleep. Shareholders worry their investment would collapse and employees become uncertain of their future and careers. At its worst, the company is unable to meet its short term maturing obligations like paying suppliers, paying staff salaries, government taxes. Customers begin to shun you.

We are not at its worst, but we are down a slippery slope. Analysis across the group shows that our operating costs are unsustainably high.

How did we end up here? Many factors have contributed to this declining performance. These factors are both internal and external. Internal factors include the poor performance of our lubricants business whereas the company has invested

significant amount of working capital. It has also been attributed to the growth of the company’s business over time which led to significant growth in the number of employees. For this reason a job evaluation process was recently carried out to among other objectives, help the company rationalize its human resources.

External factors include the growth of competition in the industry which has eroded margins realized in sales. This growth has led to new companies with more lean and efficient structures, companies with five or ten staff. Granted that we are dealing with a homogeneous product whose differentiation is only price, with over two hundred staff at Hashi, it becomes increasingly difficult to effectively compete on this basis. You may also recall the government decision to ban export loadings from Mombasa which impacted negatively on the performance of our Mombasa terminal, reducing used capacity to almost ten percent. This has had a significant impact on our performance.Recovery of the business therefore requires a mix of actions to

Managing businessin turbulance

both respond to external factors as well as internal factors. External factors mostly require adaptation and dynamic strategic shifts. The investment in retail stations is a key strategic action to cushion the company against external shocks.

The greatest opportunity however lies in internal reorganization and st reaml in ing. Th is includes review of the company’s people structure and a u s t e r i t y m e a s u r e s t a r g e t i n g spending.

A number of austerity measures have to be implemented. Like in a household, in times of financial difficulty, you have

to cut on luxury spending such as dining out, may be reduce on the days for eating beef and fish and perhaps go for alternative cheaper protein sources. Businesses will usually scale down spending on such areas as external training, travel and other non-core,

non- revenue generat ing spending. Executives’

benefits have to be reviewed also.

These are low hanging fruits and the first iteration. The

second step w h i c h i s

perhaps usually t h e h a rd e s t

decision to take will normally focus on the

people structure, with the objective of eliminating

redundancy and retaining

lean functional teams. This has been carried out by a number of businesses including Kenya Airways, KCB, Vivo and the latest has been Cooperative Bank which has announced a restructuring that will lay off 160 staff in a bid to enhance efficiency and cut costs.

Such a process will require ownership and common vision by all stakeholders. In particular, the leadership must maintain full transparency, consistent and timely communication and ensure compliance with the law. The success of the company is success for all. “Shelving hard decisions is the least ethical course.”

Adrian Cadbury

Two thirds of Kenyans in the formal employment and aged below 30 are not satisfied with their jobs according to a new survey by Synovate. These young people, also known as Generation Y, are giving employers sleepless nights as majority are not willing to stay in the same job for more than a couple of years. As a result the cost of recruitment for companies has risen and will continue to rise as more of Generation Y enters the workforce. Generation Y consists of the generation of people born during the 1980s and early 1990s.

HR managers therefore are facing challenges trying to retain Generation Y employees who have arrived at work with a new attitude and are shaking things up. They are ambitious, technologically savvy and hungry for success – inpatient – even. They are forthright and not afraid to challenge the status quo. They may be starting their working life at the bottom but this is not to say they’ll accept rock-bottom salaries. By the time they graduate from University, many already have professional qualifications under their belt.

They walk in with high expectations of their jobs and employers. Modern conveniences like internet and computers are assumed to be given. They are focused on getting to the top in the shortest time possible. Expecting them to stay in the same job for twenty-five years with a pension as a reward is likely to provoke laughter. If not satisfied they’ll move on fast.

For HR managers to attract, manage and retain Generation Y they must build trust, inspire loyalty and harness their energy. Their high expectations also need to be managed. If you do not give them challenging jobs you lose them. Show them a clear career path that will allow them to change paths within the same company or they get bored and leave. Address their impatience to get ahead by explaining why experience is important and give them leeway to create. For instance an accountant can be asked to create templates to help access information faster. They also value open communication and dialogue as o p p o s e d to a u t o c r a t i c management and laying down t h e l a w . Generation Y value work-life balance. To manage them successfully, HR managers may have to initiate personal counseling at professional level coupled with mentoring.

The Generation that is shaking up the corporate workplace

a better future

Internet could be forced to rely on IPv6 addresses.SMBs need to be aware that IPv6 is here, and make sure that any future PC, mobile device, network infrastructure, or other IT purchases support the next-generation protocol. IPv4 should still be alive and kicking long enough for most organizations to transition to IPv6 by attrition over time.

What are the top three reasons an SMB should care or make the switch to IPv6?1. InevitabilityThe simple fact of the matter is that IPv6 will soon be the only option for adding new devices or hosts on the Internet. SMBs should be transitioning to IPv6 so they’re prepared when the inevitable day comes that IPv4 is no longer supported. Embracing IPv6 sooner rather than later will allow SMBs to operate with the peace of mind that the extinction of IPv4 won’t impact their businesses.

2. EfficiencyNguyen explains, “IPv6 simplifies and speeds up data transmission by handling packets more efficiently, and removing the need to check packet integrity. This frees valuable router time that can be better-spent moving data.”With enough unique IP addresses to go around (and then some), organizations won’t have to rely on NAT to connect to the Internet. IPv6 eliminates most of the address conflict issues common under IPv4, and enables more streamlined connections and communication for devices

3. SecurityWhen networking gurus and researchers developed IPv4 security hadn’t really crossed their minds. IPv4 was never meant to be secure.

IPv6 has been built from the ground up with security in mind. Many of the security features that have been duct-taped after the fact onto IPv4 as optional features are integrated into IPv6 as default requirements. IPv6 encrypts traffic and checks packet integrity to provide VPN-like protection for standard Internet traffic.

AUPATA SARAH JEMIMMAH OPERATIONS/IT ASSISSTANT

HASHI ENERGY (U) LTDEDUCATION: CCNSP AND BSCIT

CURRENTLY PERSUING MASTER OF SCIENCE IN

INFORMATION TECHNOLOGY

HASHI

6

Internet Protocol version 6 (IPv6) is the latest version of the Internet Protocol (IP), the communications protocol that provides an identification and location system for computers on networks and routes traffic across the Internet.

Researchers saw the writing on the wall, and could predict based on the rate of growth for Internet use and IP-connected devices that IPv4 couldn’t last forever. IPv6 has been in development for nearly two decades. Now the next-generation protocol is ready to replace IPv4 and assume its place as the backbone of the Internet.

Why is IPv6 necessary?The most obvious answer is that IPv4 is out of IP addresses. IPv4 has only 4.3 billion addresses, and with PCs, smartphones, tablets, gaming systems, and just about everything else connecting to the Internet, the system has been tapped dry. IPv6 uses 128-bit addresses and is capable of 340 undecillion addresses. That is 340 times 10 to the 36th power, or 340 trillion trillion trillion possible IP addresses. How is IPv6 different/better than IPv4?

So what exactly is IPv6 and what does it mean to you?Expanding the pool of IP addresses (putting it mildly) yields other benefits as well. Because of the dearth of IPv4 addresses, much of the Internet relies on NAT (Network Address Translation). With IPv6, every device can literally have its own unique public IP address.

Most home and small business users really only have one IP address on the Internet--the one assigned to the router that connects them to their ISP. The router in turn issues IP addresses internally to the devices that attach to it, but must constantly keep track of which traffic belongs to which device, and translate the IP address from the internal one to the public one in order to facilitate communications with the Internet.Tri Nguyen, a representative of ZyXEL, explains, “All devices will be accessible on the public network, making it easier for people to manage things like home automation, file sharing, online gaming, peer-to-peer programs and other

World Embraces IPV6 “HASHI ENERGY GEARS UP”

applications without complex settings on their router.”

Nguyen adds that there are also features of the IPv6 protocol itself that make it more secure than IPv4. The integrity and authenticity of each IPv6 packet is ensured through encryption, and techniques aimed at preventing packet spoofing. IPv6 is much better than IPv4 at making sure Internet traffic gets to the correct destination without being intercepted.

Will my IPv4 devices still work / connect to the Internet?In a word, yes. IPv4 and IPv6 are not directly compatible, but researchers

realized that they couldn’t simply flip a switch and turn off IPv4 while most of the

world still depended on it. IPv6 devices are built using a process called dual stack that

allows IPv6 and IPv4 to run simultaneously alongside each other.

Nguyen says, “IPv4 support will not be dropped any time soon, and legacy IPv4 hardware should continue to function well into the future.”

Is it urgent to switch to IPv6?The fact is the vast majority of the devices connected to the Internet today are not compatible with IPv6, and the dual-stack technology ensures that legacy IPv4 devices will still work for the foreseeable future. So, no--it’s not urgent to switch to IPv6.

That said, IPv6 should still be on your radar.

Z y X E L’ s Nguyen

cautions, however, that

in regions that run out of IPv4 addresses completely,

new hosts being connected to the

HASHI a better future

8 97

while back, the Kiambu county Governor made a d i s p a r a g i n g a n d controversial statement that topped the headlines. The

statement was to the effect that women who are single and over 35 are less likely to make good leaders. I don’t know whether the statement was made in a nonchalant way but I think it is unfair, unfounded and lacks basis. However, we then ask, do men make better leaders than women or is it vice versa.

Traditionally, we live in a male dominated society where men are more likely to be in leadership than women. We see that even in the bible, most of the authors and luminaries therein are men. However, women like Deborah and Esther feature prominently in leadership position. This trend of male dominance in society is actually shifting as more and women are getting aggressive in leadership positions. It is a fact that more women got elected into parliament and were selected into the cabinet thanks the “one third rule” action within the constitution.

Studies have shown that there are five things that make good leaders. Studies also show that these five attributes are more likely to be expressed better by women than women. It is said that these five are the reason why leading companies insist on having more women in their board than men.

Therefore, what makes a good leader? Toughness, authority, drive and determination? Are these traits more likely to be espoused by a man than a woman or vice versa?

1. Better communicatorsListening is a major part of communication. It is no qualm that a woman is a better

listener than a man. Listening skills are crucial for managing employees and customers. Dr. Susan Sherwood, attributes this fact to the reason that men are more doers that talkers whereas women are more conversation oriented as opposed to fixers. A man would really want to talk about his issues or hear about someone else’s woes, he would just want to fix it. A woman on the other hand understands that it is important to listen and even empathize with someone’s problems and that she will talk about her own when needs to – that is the only way to relieve pressure. As a result of women being more discussion oriented and men wanting to just take action, women become better at listening than men. Men communicate through activities rather than conversations.

Listening is an important skill for a leaderas employees want their managers to hear their point of view, and customers want everyone to empathize with their problems. Being a better communicator will lead to a stronger relationship built on trust, which is critical to establishing loyalty.

2. Better community buildersWomen prefer consensus type leadership as opposed to men who would want everyone to do what they want done. Women are not pushy or micro-managers when it comes to leadership. Women like to hear all the opinions of the people they are leading before implementation – they exemplify servant leadership. They will feel hurt if any of the decisions they make is not all inclusive or not taken in well and so they try as much to be acceptable leaders. On the other hand, men are more of “’alpha-leaders” that really don’t give two hoots whether they step on peoples toes while at it, as long as things get done.

Consensus type leadership is growing as the new trend in leadership. The new book The Fall of the Alphas by Dana Ardi shows how the traditional top down, male dominated authoritarian leader is being replaced by a more collaborative and connected manager. She says that the best managers are learning to lead through the influence that comes from building collaboration rather than straight force or all out competition

3. Stronger business ethics. Our business world today is rife with ethical minefields that tend to compromising their business ethics morals and fairness in businesswomen who are effective managers are more likely to avoid compromising their business ethic as they consider the rights of others in the pursuit of fairness that is consistently applied in a non-arbitrary fashion. Men however are none the wiser in this regard.

A leader who has a strong moral code is more likely to push his team further up the success ladder as the business is sustainable. Where there is fairness and justice, success thrives and morale is high as opposed to a morally decadent man eat man business environment that more often than not is unsustainable.

4. More patienceWomen are more patient than as leaders than men. A patient leader is one who would lead her pack at the pace of the slowest member. In other words, they will more likely take time to assist and nurture an employee to grow and reach their full potential. Women are very good at mentoring and they are fast in identifying weakness in a team member and correct it in love. Even in terms of decision making, women leaders take time to weigh out the options before jumping to a conclusion. Some may see this as

the five things that make women

better leaders

6

A leader who has a strong moral code is more likely to push his or her team further up the success ladder as the business is sustainable.

HASHI a better future

10 11

Insurance is a contract between two parties where one party known as insured (client) agrees to pay another party known as Insurer (Underwriter) a proportion of fee called premium and the insurers agrees to indemnify the insured in case of a loss, damage, destruction due to occurrence of a specified peril.

Before insurance placement, risk management need to take place which involves;Identification of a Peril / Hazard, Analyzing and Controlling the chances of occurrence: under the Control one may decide to avoid the risk, Reduce the chances of occurrence, Retain the risk and / or Transfer/ Share the risk with others, hence the need to insure.

It is however important to emphasize that insurers does not cover anything and every risk , hence insurance contract document should be specific on the scope of cover, normally insurers also indicate the exclusions therein.

Business and individuals insure because of some of the following reasons:-

• Protection:Eventuality like fire and theft can lead to extreme financial loss and affect the running of the business and or total closure; relevant insurance covers will guarantee compensation to the p o s i t i o n h e l d immediately before the loss.

• Collateral:Some insurance policies are designed to act as collateral against a bank loan / mortgage or to confirm protection of a bank security (a good example is where loan is secured with a

motor vehicle or other assets); banks must confirm that proper insurance covers are in place to secure their collateral interests.

• Liability:There are other third parties liability risks that attaches to businesses by virtual of legal and operational obligations and such should also be insured to guarantee peace of mind to the proprietors during their operations.

• Legality:People also insure due to provisions of law that make some insurance covers

compulsory, for example the traffic act compels all

motor vehicle driven on public roads to have a minimum third party liability cover. The government is cognizant that the risk is rife and the liability therein may not be practically possible to be borne by for motor vehicle owners.

Another compelling Act is WIBA, 2007; although this act does not compel the employer to insure, it compels them to compensate the employees for accidental bodily injury or death to employees including occupational illness in the course of employment / duty.

• Investment: Investments covers have an element of life assurance cover to the policy holder which guarantees payment of capital amounts if the life assured dies before the

maturity period.

Placement of insurance should be purely based on probability of occurrence of loss and not certainty of

occurrence of loss.The insured person must behave as if not insured and should do everything

practicably possible to avoid the loss and or/ mitigate

the loss should it fortuitously occur.

Insurance is governed by some specific

principals which we shall advise in our next

newsletter…keep in touch

Please Note: The worst risk in life

is never to risk at all.

Why do people insure?

indecisiveness, but patience in decision making has its fruits. This is not so for most male leaders.

Women are far more patient with employees than men. A study commissioned by my Hermes shows that women are willing to wait longer for a desired result.

Patience is a good skill for a leader to have, The acknowledgment that there is no such thing as ‘overnight success’ leads to patiently knitting together a dream team that would reach the ultimate target, albeit in a longer time.

5. Better at activating passion/Motivators. According to Jay Forte, author of Fire Up! Your Employees and Smoke Your Competition, women are “more astute about knowing how to activate passion in their employees. They watch the 43 muscles in your face and see how your emotions change.”

A good leader is one who knows how, and when to well motivate her team. When morale is low, output is low and when morale is high, output is high. A passionate employee will produce better results as opposed to a de-motivated one. Passion builds loyalty. Motivate your employees, and they’ll in turn be passionate about your product or service and company.

Victor Mulindi

www.eni.com

HASHI a better future

12 13

Approximately 260000MT of products is imported on monthly basis .Importation of private cargo for local consumption for white fuels is not permitted but allowed for transit. Permission has to be sought and granted for the same. Fuel Oil and LPG are not governed by Bulk Procurement system but plans are

underway to have the same included. One notable difference between Kenya and Tanzania is that Kenya has KPC that handles most of the imports to Kenya and

serves as a common user facility while in Tanzania product is discharged directly to private terminals from the vessel.

The Petroleum Importation Coordinator (PIC) is an agency that was established to coordinate the Bulk Procurement

System on behalf of EWURA. It oversees tender process and execution of the whole tender from vessel performance, discharge process, product allocation,

demurrage computation etc. It draws its membership and

financing from the Oil Marketing companies. Tanzania serves as a transit route for product to DRC, Zambia, Malawi, Rwanda, Burundi and Uganda. Tanzania upstream Oil and Gas industry is managed by Tanzania Petroleum Development Corporation. Away from the petroleum industry, the other most invaluable traded commodity in Tanzania is courtesy and kindness. It’s the creed. From the President being referred to as” Ndugu Jakaya Kikwete to every stranger calling you Kaka or Dada, Tanzanians courtesy and warmness can only serve to make every visitor feel at home. So, next time you have a meal in Tanzania please remember to politely request for your bill i.e. “Samahani, Naomba bill” or refer to every man as “Kaka” and every lady as “Dada” , you will be at home. Karibuni Tanzania.Wasaba Felix.

Tanzania is an economic force to reckon. It is currently at a cut throat competition with Kenya to be the regions trading hub and is looking to further expand its ports namely Dar es salaam and Bagamoyo ports to enable it handle more business

Tanzania: The country, Its Petroleum industry and the People.

Lying next to the Indian Ocean on the southern part of Kenya, is the straddling beautiful land of the United Republic of Tanzania. Nearly twice the size of Kenya with a staggering population of 49.3Million, Tanzania is the most populous nation in East Africa. With a GDP growth of 7.2, and bordering eight ( 8) countries, recent discovery of 50 trillion cubic feet of Natural gas , Tanzania is an economic force to reckon. It is currently at a cut throat competition with Kenya to be the regions trading hub and is looking to further expand its ports namely Dar es salaam and Bagamoyo ports to enable it handle more business.

The petroleum industry operates under the Ministry of Energy and is directly under the Energy and Water Utilities Regulatory Authority (EWURA), a powerful agency that manages the Fuel and water sectors in Tanzania. The regulatory mandate stretches through all the spheres of the fuel sector from

Licensing to price regulations. It’s what the Energy Regulatory Commission (ERC) is in Kenya but with a much broader scope.

As is the case with Kenya’s OTS, Tanzania established the Bulk Procurement System (BPS) that governs importation of Fuel. Tenders are awarded for the supply of fuel to the country and the winner (with the lowest Weighted Premium) is awarded a contract to supply the industry. Unlike Kenya’s system, the winner in Tanzania supplies all products for the whole industry for that particular tender.

HASHI a better future

14 15

Terrific Tongue Twisters to Twist Your Tongue

>> If you understand, say “understand” . If you don’t understand, say “don’t understand”. But if you understand and say “don’t understand”. How do I understand that you understand? Understand! >> I wish to wish the wish you wish to wish, but if you wish the wish the witch wishes, I won’t wish the wish you wish to wish. >> Sounding by sound is a sound method of sounding sounds. >> A sailor went to sea to see, what he could see. And all he could see was sea, sea, sea. >> If two witches were watching two watches, which witch would watch which watch?

>> I thought a thought. But the thought I thought wasn’t the thought I thought I thought. If the thought I thought I thought had been the thought I thought, I wouldn’t have thought so much. >> Once a fellow met a fellow In a field of beans. Said a fellow to a fellow, “If a fellow asks a fellow, Can a fellow tell a fellow What a fellow means?” >> Mr Inside went over to see Mr Outside. Mr Inside stood outside and called to Mr Outside inside. Mr Outside answered Mr Inside from inside and Told Mr Inside to come inside. Mr Inside said “NO”, and told Mr Outside to come outside. Mr Outside and Mr Inside argued from inside and outside about going outside or coming

inside. Finally,

Mr Outside coaxed Mr Inside to come inside, then both Mr Outside and Mr Inside went outside to the riverside. >> She sells sea shells on the sea shore , but the sea shells that she sells, on the sea shore are not the real ones.>> The owner of the inside inn was inside his

inside inn with his inside outside his inside inn.

>> If one doctor doctors another doctor does the doctor who doctors

the doctor doctor the doctor the way the doctor he is doctoring doctors? Or does the doctor doctor the way the doctor who doctors

doctors?

“When a doctor falls ill another doctor doctor’s the doctor. Does the doctor doctoring the doctor doctor the doctor in his own way or does the doctor doctoring the doctor doctors the doctor in the doctor’s way” >> We surely shall see the sun shine shortly. Whether the weather be fine, Or whether the weather be not, Whether the weather be cold Or whether the weather be hot, We’ll weather the weather Whatever the weather, Whether we like it or not. Watch? Whether the weather is hot. Whether the weather is cold. Whether the weather is either or not. It is whether we like it or not. >> Nine nice night nurses nursing nicely. >> A flea and a fly in a flue Said the fly “Oh what should we do” Said the flea” Let us fly Said the fly”Let us flee” So they flew through a flaw in the flue >> If you tell Tom to tell a tongue-twister his tongue will be twisted as tongue-twister twists tongues.

>> Mr. See owned a saw. And Mr. Soar owned a seesaw. Now See’s saw sawed Soar’s seesaw Before Soar saw See, Which made Soar sore. Had Soar seen See’s saw Before See sawed Soar’s seesaw, See’s saw would

not have sawed Soar’s seesaw. So See’s saw sawed Soar’s seesaw. But it

was sad to see Soar so sore Just because See’s saw sawed

Soar’s seesaw.