INSIDE:

EVOLUTION OF
THE MOBILE APP'S
LANDSCAPE

CAN SAVING DATA,

BATTERY LIFE, AND
STORAGE SPACE DRIVE
A MOBILE WORK-FROM-
ANYWHERE CULTURE?

DIGITAL TAX - GIVE

TO CAESAR WHAT
BITS & BYTES
BELONG TO HIM

PRIVACY
THROUGH
DIGITAL
LENDING
APPS: WHO
CAN AFFORD
PRIVACY?

A P UB L ICAT I O N 2021 NE ND O.CO. K E

PREFACE 03 A NEW AGE FOR COMPANY "SPYWARE" 14
BLURRING THE LINES BETWEEN PRIVACY AND
ACKNOWLEDGEMENTS 04
PRODUCTIVITY
COVID-19's "SLOW BURN" IMPACT ON DIGITAL 04
COVID-19 AND MENTAL HEALTH: A GROWING 14
TRANSFORMATION
CRISIS?
EXPERTS INSIGHTS QUESTION 05
MANAGING OFFICE MENTAL HEALTH IN 2021 15
SUSTAINING URGENCY TO ACCELERATE 06
DIGITAL TAX - GIVE TO CAESAR WHAT BITS & 16
DIGITAL TRANSFORMATION
BYTES BELONG TO HIM
WHERE TO FOR WORKPLACE WHATSAPP 06
SCOPE OF TAXABLE SERVICES 18
GROUPS?
CYBERSECURITY AND PRIVACY - A CASE OF IF, 20
CAN SAVING DATA, BATTERY LIFE, AND 08
NOT WHEN
STORAGE SPACE DRIVE A MOBILE WORK-
FROM-ANYWHERE CULTURE? PRIVACY THROUGH DIGITAL LENDING APPS: 20
WHO CAN AFFORD PRIVACY?
THE FIVE S'S OF THE AFRICAN INTERNET - 09
FROM TREND TO TIME-TESTED TRUTH THE DATA COMMISSIONER'S FIRST MATCH? 21
BIG FISH OR SMALL FISH?
EVOLUTION OF THE MOBILE APP'S 11
LANDSCAPE THE FUTURE OF 'TRENDJACKING' - 22
MEANINGFUL OR MENACE?
A FACEBOOK NATION 11
PUTTING THE TRENDS TO WORK IN YOUR 25
TIKTOK TRENDS, LIKEE LINGERS 11
BUSINESS
DON'T SHOOT THE MESSENGER 11

GOING LONG ON LENDING APPS 12

A BRAND NEWS FEED 12

BROWSERS OF A FEATHER FLOCK TOGETHER? 12

AN ADAPPTING LANDSCAPE 12

2
PREFACE
The COVID-19 pandemic has wrought untold humanitarian,
economic and societal changes. When Nendo created its list In each of these distinct
of six trends and launched them one day after Kenya's first chapters, the market's
case of COVID-19, we had no idea the extent to which the year expectations came true
and life as we knew it would change. and accelerated by
COVID-19. For 2021, Nendo
Since then, each of the six trends and our predictions came to has taken a different
pass. approach with our trend
report. The Nendo team
collaboratively wrote
this report. From content
marketers, art directors, data analysts, and client success
managers.

The team has weighed in with their views that we have

filtered past our expert panel's minds. This is an exciting
way of getting more hands, hearts, and minds involved in
Short-video platform TikTok Reworking Influencer making Nendo's vision for the year ahead.
taking over, especially Marketing Strategies to
compared to its rivals - vSkit optimise for trust, disclosure, Secondly, the trend report leans on a unique line-up of
and Likee. and creativity.
expert guest contributors sounding in agreement (or
disagreement) with Nendo's position. We've found that
collaboration and communication in navigating the year
ahead will be crucial. Nobody has a monopoly on the
customer's point of view, and the more voices chipping in,
the better.

Lastly, we've included more trends and expanded them to

feature more areas than we've covered before. This year's
trend report is closer to what our newsletter presents itself
Greater emphasis on social
media and mental health (the Thoughts on whether Kenyan as - a tasting menu. I'd be remiss if I didn't point out we also
pandemic certainly made this digital agency budgets would have a private Letter N Facebook Group of our readers.
a global topic). go up or down.
You can join for discussions and updated weekly insights
directly from the team and me (that you'll find nowhere
else).

This year I want to pose a challenge to you. Trends are not

purely about the information you take in. They are about
combing through the data to seek out the insight and find
a way to apply this to your sector, product, service, and
business.

A focus on in-sourcing and How chatbots adapt to more In what ways can you look at this report and adapt yourself,
digital training for teams. Kenyan business-cases. your team, your leadership, and your plans? You don't have
to figure that out alone.

How could my team and I be of service to you to accomplish

your goals in 2021? Be it strategy, marketing campaigns, or
levelling up through training and workshops. You can reach
out to us, and we'd be glad to put these trends to work for
you.

Sincerely,
Mark Kaigwa

3
 P.S.
ACKNOWLEDGEMENTS
If you're not familiar with the work Nendo did during the
pandemic, below are the three best examples of how you My appreciation goes out to the team at Nendo, who
can keep up with our public-facing projects for good: worked to put this report together.

Njoki Wairua, the project lead, who contributed ideas

and edited multiple drafts. Kevin Kyalo, the content
lead, who wrote and edited multiple drafts. Paul
Karanja, the creative lead, who brought the visuals of
the report to life. Vanessa Mwangi who contributed
ideas and edited drafts. George Waititu, Dennis Masesi
and Rose Muthoni, who contributed ideas to help get
the process started.

I'd like to thank the experts who gave their time and
input to this project so willingly. Divine Muragijimana,
Noah Miller, Saiton Tameno-Righa, Sam Chappatte, and
StopReflectVerify.com - Africa's first online quiz aimed at
Shaun Bukusi.
tackling COVID-19 misinformation. Take the quiz and learn
your score at www.stopreflectverify.com/quiz Lastly, I want to thank my wife, Dr Wanjiru Kaigwa, for
her tireless support in my work and the work of Nendo.
Her insights into public health research, mental health,
and behaviour change in the pandemic have been
invaluable, not to mention her companionship.

A 10-sector review of COVID-19:

Nendo developed an infographic and report exploring how
new drivers and disruptors of demand would affect Kenya's
digital economy. Our work has featured in the New York
Times and a full-page in Kenya's Daily Nation.
www.nendo.co.ke/covid

COVID-19'S "SLOW BURN"

IMPACT ON DIGITAL
TRANSFORMATION
Nendo's 10 Tools for Remote Work: Since March 16th, Nendo 'To sink or swim' is a common dilemma businesses face.
has been a fully remote company. We published our guide However, this predicament cannot be more relevant with
to the paid and free tools we use to get work done, having COVID-19 continuing to ravage Kenya, Africa, and the world's
worked across different parts of the country and continent economies. The Kenyan economy sunk to its first recession
coordinating remote marketing, research, and training after precisely 18 years in September 2020, with the gross
projects for our clients. Remote work toolkit domestic product (GDP) falling by 1.1 per cent in the third
quarter.
4
The pandemic has made it essential for businesses to become vaccines to mitigating strains of COVID-19 and managing the
more digitally savvy. Restrictions of movement, governance misinformation that has caused it to become an 'info-demic.'
regarding sanitation, and other drivers and disruptors of The 2021 Trend Report's focus is touching on a range of
demand will have a lasting impact on businesses. crucial questions and subjects worth considering.

In April of 2020, Nendo created a 10-sector analysis report 2020 opened a window of opportunity to do different things
mapping drivers and disruptors of demand from COVID-19. and do things differently for the most primal instinct - to
Several of these trends continue to prevail well into 2021. survive. For those fortunate enough to be able to work through
Many predictions have now etched in day-to-day verbs for technology, adoption grew. Leaders and teams are exploring
how work gets done, particularly for knowledge workers and ways of working and continually adopting technologies to
the service industry. But not all of them have become 'the next help solve physical distance and health and safety protocols
normal' with people craving human connection (and some wherever possible. That said, a gap continues to exist between
having never given it up in the name of social distancing). the connected class and the under-connected. Those who
continue to lack the functional literacy to participate fully in
Challenges have stemmed from spikes in COVID-19 cases digital experiences may be left behind.
and their impact on the health system, distribution of

WILL THERE BE A SURGE IN ADOPTION

OF THE LATEST TECHNOLOGIES IN 2021?

SAM CHAPPATTE,
DIVINE MURAGIJIMANA, CEO JUMIA KENYA.
GROUP HEAD, GLOBAL MARKETING
AND COMMUNICATION.
There will be continued growing
interest in them. But we expect digital
Absolutely. It was inevitable that as marketing spend to remain low in the
time went by, the world will generally year ahead. Brands are tight on spend,
adopt digital technology as the norm cash & profitability still top of mind for
- however, as it has become a common many.
joke among industry leaders, Covid-19
has made it impossible not to think
about digital tech adoption as an SHAUN BUKUSI,
organisation. STRATEGY DIRECTOR.
Yes there will be. The protocols
required to keep safe from covid 19
NOAH W. MILER,
and the disruption caused to business
MANAGING DIRECTOR.
models last year will continuously drive
Digital Marketing Technologies have the necessity for adoption of digital
matured and are widely adopted marketing technology.
already. There won’t be major
innovations in this area in 2021.
Instead, organizations need to learn SAITON TAMENO-RIGHA,
how to better integrate technologies to DIGITAL STRATEGIST & MARKETER.
learn more about their customers and There will be a surge in adoption
serve them better. of technology as the scene is
quickly changing with new apps like
Clubhouse, seeing Gen Z's digital
nativism and their activism online,
podcasting and advertising on the best
podcasts.

5
SUSTAINING URGENCY
TO ACCELERATE DIGITAL
TRANSFORMATION
WHERE TO FOR WORKPLACE
COVID-19 manifested an urgency for businesses to adapt and
WHATSAPP GROUPS?
clarify their approach to digitalisation. Non-profit, For-profit
and Government institutions are still required to think about 2020 saw many businesses embrace virtual collaboration on a
the longer-term meaning of 2020's adjustments. day-to-day basis. As governments worldwide began enforcing
lockdowns that forced people to stay at home, there was a
Some of the urgency died down in 2021, and the 'old guard' is significant uptake in the use of chat apps. There's often little
stretching traditional business practices as long as possible. to predict each year except that WhatsApp remains among
The opportunity to transform the experience for employees, the top 3 most-downloaded apps in Kenya.
customers, suppliers, and the public remains.
WhatsApp Groups became key touchpoints for information
The pandemic has demonstrated the value of digital-enabled exchange, communication, and collaboration. Offices
solutions spanning several sectors: continue to have official work-based groups and unofficial
'water cooler' groups. Even though platforms like Slack and
Microsoft Teams seek to solve office chatter, nothing looks
•• E-commerce and online shopping: pushing
likely to displace WhatsApp in its importance.
hundreds of thousands of Kenyans to overcome
the friction of trust and trial barriers that held Even as the adoption of Zoom, Google Meet, Skype, Webex,
more significant percentages of the population and Microsoft Teams continues for businesses, it's WhatsApp
back. lurking and delivering vital day-to-day information for
•• Last-mile delivery services, be they up-country companies across Kenya and the continent. Its place is
and rural areas when travel was restricted or unlikely to be displaced soon (despite hiccups and hitches
within the cities. Logistics is where many promises with communicating their privacy policies - the switching
live or die for digital solutions. costs for millions remain too great to cause them to leave

•• Supply chain virtualisation and process their phone-based social networks behind).
automation sought to maintain controls, checks,
WhatsApp Groups restrict the conversation to phone-
and balances while minimising paperwork and
based contacts with encrypted messaging. On the other
replacing archaic business processes. Educating
hand, Facebook Groups open up a world of interest-based
staff, suppliers, and stakeholders remains critical
connections for deeper conversations to take place in the
in ensuring uptake and driving adoption and
social network. Both platforms boast over 10 million monthly
behaviour change.
active users with more WhatsApp users than Facebook users
in Kenya.
6
WHAT ARE SOME OF THE TOP TOOLS FOR
DIGITAL MARKETING IN 2021?

SAM CHAPPATTE,
DIVINE MURAGIJIMANA,
CEO JUMIA KENYA.
GROUP HEAD, GLOBAL MARKETING AND
Evernote for your personal organisation! COMMUNICATION.
Must have for senior Jumia people.

This depends on industry, and sector. The

beautiful think about digital marketing
SHAUN BUKUSI,
STRATEGY DIRECTOR. tools is that digital tech makes it easier
to adopt tools for a specific need. let me
Personalize online communication, CRM, share my favorite;- Top tools for digital
Ad tech, automation, and social listening marketing have not changed really-
tools. Google tools will always be king- trends,
analytics Ads- Even google my Business
SAITON TAMENO-RIGHA, has seen a surge in usage in the last year.
DIGITAL STRATEGIST & MARKETER. But businesses looking to centralise their
Descript.com, Canva and so much more. data- Google Analytics 360 is the platform
of choice. B2b Businesses will always
benefit from a tool like Hubspot. Moz is
another tool that I have found to be great
NOAH W. MILER,
MANAGING DIRECTOR. for SEO. Kissmetrics is another tool that
each digital marketer needs especially if
Digital marketers need to observe and
they are dealing with mass data.
analyse a plethora of platforms these
days. Look for social intelligence tools
that integrate data from social media
channels, search engines, YouTube and
online sites to crate more refined insights
about brands and customer preferences
or behaviours.

HOW DO YOU GOVERN WORK-FOCUSED WHATSAPP GROUPS?

EXCHANGES OF PRIVATE AND PERSONAL INFORMATION?

7
CAN SAVING DATA, BATTERY LIFE, Kenyan and African smartphone users expect (and require)

AND STORAGE SPACE DRIVE A any work-related solution or app to be built atop an existing
platform or to provide enough utility not to be uninstalled. To
MOBILE WORK-FROM-ANYWHERE do this, organisations can seek to save end-users three things.
CULTURE?
Stay-at-home orders during COVID-19 challenged •• Mobile phone data by consuming fewer megabytes
parents, children, and the public to turn the home into a
•• Battery life through optimising performance
classroom, a religious centre, and an office. This has been
an enormous task to handle the world over. For some, the •• Space on the phone by shipping 'lite' versions or
mobile websites that need no app at all.
home environment was manageable; for some who travelled
upcountry or relocated, it showed the reliance on mobile
connectivity (and prepaid data bundles) to keep work going. Not all mobile phone users are internet users. And not all
Nendo's 2019 set of three constraints continues to govern how Kenyan (or African) internet users are social media users. And
much smartphone users can expect in 2021. not all social media users are active users (or power users).
Each day millions of mobile phone owners make conscious
choices about how they'll 'spend' their megabytes.
Companies mustn't take this for granted when building
and deploying digital solutions to stakeholders. As the
economy improves, so does the number of people
who end up with more megabytes than time. Fixed-
line connectivity through free, public, and private
home or office WiFi is shifting from conservation
of connectivity to consumption. This behaviour
change depends on individuals' money to drive a
new layer of growth in Africa's internet society.

HOW ARE YOU PROVIDING TECHNOLOGY

AND GUIDES/INFORMATION/EDUCATION TO
DRIVE BEHAVIOUR CHANGE AND ADOPTION?
HOW CAN YOU LOWER THE 'FLOOR'
(MINIMUM TECHNOLOGY REQUIREMENTS)
TO ALLOW MORE TO CONNECT WITH YOUR
PRODUCT, SERVICE, OR EXPERIENCE?

8
THE FIVE S's OF THE AFRICAN
INTERNET - FROM TREND TO
TIME-TESTED TRUTH
In 2019, the team and I at Nendo published The State of spans, and our data bundles. Not enough has been said about
Mobile Data. In that report, one of the creations from that was how limited mobile data continues to be one of the significant
the 5 S's. A mental model to explain how Kenyans used the hurdles to greater internet adoption.
internet. The framework posited that if you gave a Kenyan 100
MB of data or 10 GB of data, they'd engage in some, if not all, In 2021, following the pandemic, this hasn't changed. And
of the five S's. this makes it less of a trend and more of a way of seeing the
Kenyan internet ecosystem. Revisiting the S's opens up a
The motivation for understanding how Kenyans economise chance to evaluate how Kenyans use their limited mobile data
their mobile data is because it is taken for granted that the bundles.
three finite currencies in the internet world are time, attention

9
 SEARCH SPORT
Google's Android is the preeminent mobile operating system Sports betting in Kenya is a dominant pastime. Punters
in Kenya, with well over 90% market share. Google is Kenya's occupy several of the top trending search queries on any
most visited website, making the search engine a key gateway given day of the year (with football games topping the list).
to the rest of the internet. Among Kenya's most-searched-for words of the year over
the past seven years, there has always been a sports betting
SEX company in the top 3 (including a run of several years as the
Adult websites have historically ranked high (as many as three most Googled word of the year) according to Google Trends.
in the top ten most visited websites in the country according Sports betting and sports-related content online holds the
to Similarweb) but are seldom spoken. This pastime - whether attention of millions of Kenyans. Mobile money platforms
for entertainment or sex education - is one that a high enough mean that anyone among the over 27 million mobile money
number of Kenyans frequent that it ranks highly and is subscribers can participate in almost a frictionless way
present on this list. whether they have persistent internet access or not.

SOCIAL STORIES
Social media broadly and specifically, the juggernaut of apps Local content be it music, film, comedy, dance, news, politics,
owned by Facebook Inc - Facebook, Messenger, Instagram, celebrity gossip, or current affairs, all inform Kenyans of the
and WhatsApp are among the top platforms used by Kenyans status quo. Kenyan news publishers, bloggers and digital
with internet access. Twitter continues to grow and maintain newsmakers are recreating international formats and
a higher-than-usual level of influence. Despite fewer users concepts for the local market. From YouTubers growing in
than Facebook, its propensity for breaking news and audience their influence and ranking in the top trending videos to large
of influential political, media, and societal figures means it media houses engaging in newsletters to their readers and
holds sway. And more recently, to the social mix is TikTok, a paywalls. Stories are how Kenyans stay current, and they have
breakaway winner among the fastest-growing apps of 2020 in no shortage of options of platforms to engage with.
Kenya and the continent.

The 5 S's are less of a trend and more of a

fundamental way to understand the internet in
Kenya and our experience across Africa.

10
 EVOLUTION OF
THE MOBILE APP'S
LANDSCAPE
The mobile app landscape has had its share of challenges, the
'iron triangle' notwithstanding. Following the pandemic, there
has been a greater emphasis on digital experiences - be these
for financial institutions. The app landscape in Kenya has
historically shaped itself, along with several key themes:

A Facebook Nation

Facebook takes the crown as the country's most

downloaded app. This signifies Facebook continues to
deliver new users in Kenya and maintain its status as
one of the most visited websites and the leading social
network in the country.

Don't Shoot the Messenger

For WhatsApp to slip from first place to third place after

TikTok Trends, Likee Lingers TikTok, one can hypothesise that the chat and messaging
app is hitting maturity in the country. As an app that
While TikTok is the clear winner of the pandemic as already has most smartphone users on it, WhatsApp has
Kenya's second-most downloaded app, it is far from a maintained its place as a 2014 Nendo trend put it as the
runaway lead. Likee stood in a respectable fifth place. All "default social network for Kenya." Telegram's rise from
this proves is that short-form video is a genre here to stay languishing in the top 40 or 50 to sit in 14th place in
in Kenya's digital ecosystem thanks to the two apps with downloads speaks in part to increased awareness around
TikTok firmly in the lead. privacy following WhatsApp's privacy policy debacle.

11
Going Long on Lending Apps Browsers of a Feather Flock Together?

In 2020, none of the market leaders of the previous five Opera has been a company synonymous in Africa for
years appeared in the top 15. A hypothesis for this is that the past decade with respecting the 'iron triangle' of
the best audience - financially stable enough to borrow, mobile data. Opera Mini, their mobile web browser,
repay, and grow their credit, have already been reached has persistently been a top app for many for its simple
and peaked for the apps. Meaning there's less room to promise - saving mobile data for the end-user, an in-built
grow their users unless the economy grows. That said, ad-blocker and battery-saving features including dark/
Kashway in fourth place, iPesa in seventh place, and night mode. They remain firmly in the lead at eighth
CreditHela in 11th place had so many downloads that, place and launched Hype, a chat app experience built-
if added together, would be twice the downloads of in to Opera Mini piloted in Kenya. Competing in the
TikTok in 2020. Users are eager to trade their private and chat and messaging space is notoriously tricky, but if
personal data for AI-driven unsecured loans and access successful, it could spell even greater 'stickiness' in the
to credit. Still, regulation aimed at digital lenders in app and increase users' retention.
2021 may forever alter the landscape and their lending,
disclosure, and recovery tactics. Phoenix Browser, however, seems to be a dark horse in
the mobile browser race emerging in 2020. Boasting
similar features such as Opera Mini with data savings
and ad-blocking, it is seeking 'super-app status by

A Brand News Feed including a rich media player that allows for downloads
and streaming of movies within the app and artificial
Opera has curiously created an ad network that intelligence-driven news feed within it. At fifteenth
monetises its traffic and user data. It remains to be seen place, it is among the fastest-growing apps of 2020, but
how Opera will manage this since it conflicts with part can it maintain its growth rate and user base?
of the app's core premise. Opera News is the app to take
special note of. The AI-driven news app seeks to build an
intermediary between news publishers and their audience
- serving up suggested stories from different publishers
An AdAppting Landscape
on its platform. The content spans politics, current affairs,
celebrity gossip and news. As far as the rest of the landscape is concerned, several
measures and moments are worth keeping tabs on.
Opera News has opened up the opportunity for disruption From e-commerce app, Jumia maintaining its growth
ahead of Kenya's 2022 general election, with upstart and place as the ninth most downloaded app of 2020 to
publishers finding traction and more influential audiences Zoom being a breakaway leader in videoconferencing
by partnering up with Opera News rather than slowly and seeing millions of installs and a +4,000% growth
and steadily building their audiences. Opera itself offers rate. Data Saving app Xender keeps its place in the
a pay-per article and bonus performance based on top ten in tenth place, demonstrating the need to
metrics for freelancers seeking to publish through its stay sensitive to limited mobile data bundles among
Opera News Hub. The insight here is the next year will consumers. While mySafaricom sits in thirteenth place
open up questions on the media ecosystem. One of the as the only corporate/telecoms company holding a
silent influencers of this will be the artificial intelligence position among the top fifteen most downloaded apps.
algorithm behind Opera News which will determine what
online news and information possibly millions of Kenyans
will be exposed to.

Note: Google's suite of apps (particularly pre-

installed apps) don't appear here). Transsions's
pre-installed apps will not appear in this list either.
For example, if vSkit comes pre-installed and gains
users who purchase phones from Infinix, Tecno,
Spice, and itel, they won't register as new users.

12
 WORKPLACE TRENDS FOR
THE SERVICE INDUSTRY &
KNOWLEDGE WORKERS

COVID-19's shockwaves affected business-as-usual For some, it was as easy as beginning to "work remotely". For
and continue to be felt upending priorities and plans. others, it meant retrenching staff, cutting wages, terminating
Organisational leaders scrambled to navigate through leases, and cutting expenses across the board. This is
keeping the business running, mitigating the spread of predominantly with businesses suited for the service sector
COVID-19 and sustaining the health, safety, and wellbeing of and knowledge workers.
staff and stakeholders.

13
Nine additional forces will shape businesses in 2021: Not just in the workplace but also at schools with teachers
and learners coming to grips with the pitfalls and potential
of online learning. During the pandemic, more than 1 out of 4
companies have purchased new technology, for the first time,
to track and monitor their employees passively.

However, many of these same companies haven't determined

how to balance employee privacy with technology causing
concern among employees. Gartner discovered that less than
50% of employees trust their organisation with their data,
and 44% don't receive any information regarding the data
collected about them.

In Kenya and Africa at large, questions on the fidelity of

employee data and where boundaries are crossed remain.
Sales-driven organisations in Kenya are deploying tools that
track physical location to ensure that individuals tell the truth
about where they are (at a client's premises, for example) and
determining how long they spent there during the workday.
Surveillance, sometimes referred to as corporate spyware to
track mouse movements, idle time on screens, and websites
A NEW AGE FOR COMPANY visited (to assess for when work was being done compared to

"SPYWARE" BLURRING THE leisure time), are growing in adoption.

LINES BETWEEN PRIVACY AND If 2021 continues to see distributed teams growing in Kenya

PRODUCTIVITY (which is uncertain due to the commercial real estate lease

agreements, fewer businesses can go fully remote). The
Trust is earned. And during the pandemic, companies of all overwhelming majority of companies will have to balance
sizes are seeking to maximise productivity for employees hybrid ways of working
working remotely.

COVID-19 AND MENTAL

HEALTH: A GROWING CRISIS?
There have been growing concerns in Kenya and the world
over the general wellbeing of friends, family, and society
contracting COVID-19. Furthermore, evolving limitations
(such as lockdowns and movement restrictions) are
restricting social collaboration, causing varying degrees of
exposure to mental illnesses.

There has been an increase in mental disorders, especially

those associated with emotions such as depression, anxiety,
obsessive-compulsive disorder and post-traumatic stress
disorders, to name a few. Of course, pre-existing conditions
exacerbate the problem, and, in some cases, previously well-
established treatments are proving inadequate.

Social media and persistent connections to the internet

had previously caused questions over whether they helped
or harmed. Social networks and chat apps help keep
workplaces, family, friends, and social circles connected,
but the algorithms have exposed some towards radical,
extreme, and harm inducing content.

14
MANAGING OFFICE MENTAL SHAUN BUKUSI,
STRATEGY DIRECTOR.
HEALTH IN 2021 Organizations can achieve this
Mental health support is part of the "new normal." In the last by conducting feedback sessions
few years, employers have offered new benefits to support to understand genuine concerns,
their employees, for instance, expanding paternal and assessing work environment/processes
maternal leave. Even before the pandemic, research revealed to identify gaps, preparing a plan do
that 45% of wellbeing budget increases were allocated to address the challenges/opportunities
and consistently checking in on
mental and emotional wellbeing programs.
progress towards a stable empowering
For Kenya, with some working from home, a future question workplace.
is whether mental health days will get the same standing (in
NOAH W. MILER,
human resource manuals) as physical healthy sick leave days.
MANAGING DIRECTOR.
This would be a bold step, and only a few tech startups have
adopted such an approach overseas. Companies just need to keep a pulse on
the market and see which new payment
What may be more common, building on Nendo's 2020 options are gaining momentum. If the
trend, is for people to quiet, pause, and fast from social market is big enough, then companies
media and even chat apps. As part of routines focused on need to keep pace and offer new modes
building resilience, those who can afford to take time off of payment.
social media (and pay the price business-wise or socially) will
explore this. There are actual costs to be considered. Some DIVINE MURAGIJIMANA,
workplaces expect all employees to be part of the company GROUP HEAD, GLOBAL MARKETING
WhatsApp group, for instance. At least on their work phones, AND COMMUNICATION.
and in some cases, on their home lines. The social costs will
The current pandemic has caused
come in communicating the absence with friends, family,
leaders around the world to rethink
acquaintances, and business partners. To be 'unreachable' about staff care. I think that the most
over on a social network or delete one's account entirely for foundation support is to provide
the sake of mental health could become something to silence connectivity to each other. With social
the noise and clutter behind the infinite scroll and dozens of distancing and prolonged shutdowns,
messages between groups in chat apps. employees have lost the sense of
connection that they used to get when
they were in the office or go about what
we used to call "normal".

SAITON TAMENO-RIGHA,
DIGITAL STRATEGIST & MARKETER.

Paying their employees well and

HOW CAN ORGANISATIONS SUPPORT maintaining better work life balance.
THE MENTAL WELLBEING OF THE Its a pandemic and we can't expect
EMPLOYEES DURING THIS TIME OF people to be at the level of production
INTENSE DISRUPTION? they were in 2019. We've been indoors
almost a full year, had to switch
to zoom, lost colleagues, friends
SAM CHAPPATTE, and family members. We've had to
CEO JUMIA KENYA. homeschool kids so there was a lot
Find ways to safely get together, and going on. I believe there needs to be
get some face to face time (COVID rules a move towards free or subsidized
applying). therapy but ultimately people earning
a dignified wage and living a life where
they can access Mental Health Care
when needed is the best way to support
their employees.

15
 DIGITAL TAX - GIVE TO
CAESAR WHAT BITS &
BYTES BELONG TO HIM

BACKGROUND
India was among the first countries to introduce a digital tax transactions. The impact of this was two-fold, first with tech-
referred to as the 'Equalization Levy' in 2016 at 6% on the savvy end-users flocking to virtual private network (VPN)
gross fee paid. The Equalisation Levy scope was expanded apps to hide their internet addresses and evade paying the
on April 1st 2020, to include a 2% levy on all online sale of tax. Uganda already had familiarity with installing VPNs as
goods or services into India by non-resident e-commerce the nation has undergone internet shutdowns often timed
operators. Countries in the European Union, such as France, around its elections. The other impact was with decreased
with its broad advertising base that includes seeking revenue usage of social media platforms, mobile internet, and fewer
from services such as the provision of a digital interface and peer-to-peer mobile money transactions recorded at the time,
transmission of data for advertising purposes. according to a report by Policy, a Ugandan service design
consultancy.
Other countries such as Austria and Hungary tax revenues
specifically from online advertising. Following Kenya's parliament enacting the Finance Act 2020,
the introduction and adoption of a 1.5% Digital Services Tax
In the region, Uganda passed its Social Media Tax in July of (DST) would come into effect from January 1st 2021. The DST
2018, targeting over-the-top (OTT) social media and instant describes its scope as capturing taxes payable by persons
messaging services such as Facebook, WhatsApp, Twitter, whose income from the provision of services is derived from
Instagram, Skype, Google Hangouts/Meet, Tinder, and Viber. or accrues in Kenya through a digital marketplace. The figure
Also, Uganda implemented a 1% tariff on all mobile money paid is 1.5% of the gross transaction value.

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These are broad terms open up a larger discussion about the
lines within which the tax starts and stops. The tax measures e-Commerce Vendors
highlighted that income from transactions across a digital •• Businesspeople are trading their wares as
marketplace shall be subject to income tax and value-added suppliers of e-commerce websites such as Jumia,
tax (VAT). A "digital marketplace" is defined as a platform Kilimall, Sky Garden, Goby, or Avechi (to name a
enabling direct interaction between buyers and sellers of few)
goods and services via electronic means.

With Kenya building out its claim of being Africa's 'Silicon

Savannah', the question remains whether the Digital Service
Tax will enhance this claim or stifle it. What Nendo is
observing most keenly in 2021 is how the government will
enforce the Digital Service Tax. Specifically, will the DST seek
1.5% of the online advertising on platforms like Facebook
and Google? Or will it seek to enforce the tax on smaller
businesses and entrepreneurs to expand the tax base?
Social Media Entrepreneurs
For years, Nendo has been keeping close tabs on several
types of online entrepreneurs and the platforms they trade- One of the most exciting categories is business people
in. The personas that appear most frequently (even though and traders using digital platforms such as:
there's often overlap specifically with WhatsApp being the •• f-Commerce - Facebook "Marketplace" Groups to
'last mile' of contact between buyer and seller). find buyers and sell their wares.
•• t-Commerce - Twitter "Trendjackers" hawking their
virtual wares.
Gig Economy Contractors such as:
•• i-Commerce - Instagram Shops using the visual-
•• Drivers for Uber, Bolt, or Little Cabs driven social network to showcase their products
•• Motorcycle or Bicycle riders for Glovo, Uber Eats, (but not using Instagram's Shop features as this is
Jumia Food, or Sendy yet to be available in Kenya).
•• Various other 'do-for-me' apps in spaces such as •• w-Commerce - using WhatsApp for Business and
laundry, shopping, domestic work and places with WhatsApp Status, Groups, Broadcast Lists or
short-term gigs. private messages to engage prospective buyers.

Marketplace entrepreneurs: While influencers haven't been mentioned above, its

•• Trading in established peer-to-peer expected that the Kenya Revenue Authority will scrutinise
marketplaces such as online classifieds them as they form part of online advertising using their
websites Jiji or PigiaMe social media accounts for promotion.
•• Trading in business-to-business and business-
What's interesting to note about the Digital Service Tax
to-consumer marketplaces such as car
is that it will, for the first time, put a figure to the size of
marketplace Cheki.co.ke
Kenya's online marketplace landscape. What remains to be
seen is just which part the KRA chooses to begin with.

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SCOPE OF TAXABLE SERVICES
Digital services tax will apply to the following:

•• Streaming and downloadable digital content •• Tickets bought for live events, and theatres,
services such as movies, videos, music, restaurants etc., purchased through the internet,
applications, online games and e-books. and online distance teaching via pre-recorded
•• Transmission of data collected about users medium or eLearning, including online courses.
generated from such users' activities in a digital •• Any other service provided or delivered through an
marketplace. online digital or electronic platform but excluding
•• Provision of a digital marketplace, website or other services subject to withholding tax as prescribed
online applications that link buyers and sellers. by the Income Tax Act.

•• Subscription-based media, including news,

magazines and journals.
•• Electronic data management, including website
hosting, online data warehousing, file-sharing and
cloud storage services.
The transaction value of the service shall not include
•• Supply of search-engine and automated helpdesk
services, including the collection of customised Value Added Tax charged for the service. The digital
search engine services. services tax will be charged at a rate of 1.5% of the
gross transaction value.

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HOW DOES THE DIGITAL TAX ON ONLINE SAITON TAMENO-RIGHA,
DIGITAL STRATEGIST & MARKETER.
BUSINESSES DIFFER FROM THE TAX
I feel it is an additional punitive tax on what
THAT BUSINESSES ALREADY REMIT
they are already paying.
TO THE KRA? IS THERE A DANGER OF
DOUBLE TAXATION?
NOAH W. MILER,
MANAGING DIRECTOR.
SAM CHAPPATTE,
CEO JUMIA KENYA. The KRA has finally realized how big the
digital market place is and they want a
The new digital taxes are additional
piece of the pie now. This is similar to what
taxes. Businesses locally registered in
can be observed around the globe. The
Kenya already pay significantly more tax
Digital Service Tax is similar to e.g. VAT
than their international peers. These new
in that it applies to the gross transaction
digital taxes are designed, in other parts
value. This compares to income tax where
of the world, to start to tax cross border
all kinds of deductions can reduce the
players. In Kenya they apply to both - and
taxable amount of income.
will disproportionately impact young
local companies (SMEs) - so critical to job
creation.

SHAUN BUKUSI,
STRATEGY DIRECTOR.

This is a tax that is additional to their

current obligations and applies to any
income that is generated from digital
services or services provided from a digital
platform.

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 CYBERSECURITY AND
PRIVACY - A CASE OF
IF, NOT WHEN

PRIVACY THROUGH DIGITAL With over 10,000 data points as described by one digital

LENDING APPS: WHO CAN lender, these apps upload location data, SMS messages, call
logs, and numerous other explicit and implicit data points.
AFFORD PRIVACY? This data is used to rate the individual seeking the loan and
Privacy and cybersecurity are curious concepts in Kenya. appraise their loan worthiness. The app presents the applicant
Cerebrally people are familiar with the idea of personal with an offer with a loan offer or a rejection. The rejection of
and private information. However, in practice, there's reason their application is sometimes based purely on time.
to consider that this is, as Nendo's State of Mobile Data
Meaning they need to give the app more time to surveil their
presented in 2019, a case of 'those who have privacy are those
smartphone usage to evaluate their creditworthiness. New
who can afford it.'
apps are ready to lose money in the early stages to train their
Among the top apps of the last seven years have been digital artificial intelligence credit scoring models. This means they
lending apps. Primarily on Google's Android ecosystem, these are prepared to lose, say, KSh. 500-2,000 ($18) to get the data
apps have made global headlines for the innovation present on whether the individual will repay their loan.
to deliver a credit rating on an individual based purely on the
data available on their smartphone.

20
The millions of downloads that mobile lending companies Privacy can be the difference between an individual and
have seen of their various apps prompt an interesting question the type of smartphone they have. Apple, for instance,
on the concept of privacy. Are Kenyans aware that mobile has marketed itself on the basis of security and privacy.
lending companies are exchanging their personal and private However, the preeminent mobile phone operating system
data in exchange for consideration of a loan? What happens in Kenya (and other parts of Africa) is Google's Android
to Kenyans who want the 'right to have their data forgotten' OS. Android does, within the parameters, Google sets out,
by loan apps, especially if they have paid their outstanding provide app developers with 'more data' and has attracted
loans). These remain unanswered questions. the overwhelming majority of digital lending apps. For years,
there was actually no digital lending app on the iOS App Store
While it can be assumed that the data uploaded to the servers until 2018.
of the digital lending apps are encrypted, anonymised, and
aggregated, it can't be determined for sure. The digital Is privacy a case of the 'rich and the 'poor'? Those that can
lending landscape is rife with frauds, rip-offs, and copy-cat afford privacy choose it and opt not to download apps or trade
apps in the app stores that prey on unsuspecting users who their data for (potential) access to credit. In contrast, those
may have been rejected and are still willing to try other apps that can't afford to go without access to credit will sell their
on the promise of a successful application. Therefore, the personal and private mobile phone information and data in
users give their data time and time again to more and more return.
apps without recourse.

THE DATA COMMISSIONER'S

•• International internet companies, namely
FIRST MATCH? BIG FISH OR Facebook, Google, Apple, Amazon or China's
SMALL FISH? Alibaba
•• Telephone Original Equipment Manufacturers
On November 16th, Ms Immaculate Kassait swore an oath of such as Samsung, Transsion, or Huawei
office as Kenya's first Data Commissioner. The Office of the
Data Protection Commissioner was part of the Data Protection
•• E-Commerce companies such as Jumia, Kilimall,
Sky Garden, Goby, or Avechi
Act of 2019 and presented one question for the technology
and consumer internet in Kenya.

Specifically, who will the Data Commissioner go for first? How

will the case, evidence, and judgement process be carried
out? There are several places, people and contexts available
for consideration, as shown below:

21
The spotlight is likely to shine on the most frequent source of that this information isn't held with the fidelity and privacy
questions to do with privacy in Kenya - telecoms companies it should. Most facilities use physical notebooks (which fill
and their premium rate service providers (PRSPs). Within up quickly), and the more mobile an individual is, the more of
mobile money, if you take M-Pesa, the marked-leading mobile these books they'll fill up in a day.The Data Commissioner may
money platform has been the source of questions on consent choose to take the telecoms company to the task even though
when it comes to opting in for data sharing and marketing. they're regulated by the Communication Authority of Kenya.
They may also set their sights on a PRSP to pass a message
The use-case is typical that an end-user will make a payment all who govern data of telecom customers need to be cautious.
for an item via M-Pesa. Then, the business that receives the Lastly, the Data Commissioner may choose to take on the
customer's contact will take this as an invitation to send the digital lenders. The lenders have come under fire for their
marketing messages. As such, SMS messages have, for some, aggressive loan recovery tactics, which have included calling
because a less ideal channel for marketing owing to the frequently dialled contacts from the loanee and asking them
clutter found there. Telecoms companies do enjoy revenue- to remind the loanee to pay their balance. The use of private
share agreements that may be the reason why the process of and confidential loan data being sent to third-parties in a bid
unsubscribing from third-party messages is laborious. to use social capital to pressure the loanee to repay may be a
practice that stops following the first case.
Kenyans also face challenges of data leakage with several
databases available for sale and access on the black or Kenyans at large will be expected to be made aware of their
grey market containing their details. There has long been rights, as captured in the Data Protection Act, and the means
speculation that when Kenyans enter buildings since they of redress through the Office of the Data Commissioner.
write their phone numbers, names, and identification numbers

or services. Initially, trend jacking was a snazzy marketing

THE FUTURE OF ploy to ride onto a trending topic to gain fame or notoriety,
'TRENDJACKING' - and digital curry favour frequently referred to as clout. The

MEANINGFUL OR MENACE? phrase, however, has been taken over with trend jackers being
a category that Nendo's social listening team identify.

A curious phenomenon takes place if you visit any of the They create a post with an item for sale, including their
trending topics on Twitter in Kenya. Whatever the trending phone number, a photograph, and details on the product. The
topic is, once you click on it, you'll be exposed to a set of social product can be anything from a laptop or electronic device to
media marketers and publishers; I can only call 'trend jackers.' fashion items. Before they publish their tweet, they'll include
Trend jackers are essentially spammers who take advantage every trending keyword in the country's top conversation.
of trending topics to promote themselves and their products Sometimes they do this incessantly for hours and hours,

22
creating hundreds of tweets a day all different hawking trend jacking posts to give them the illusion that they have
products but seeding the items through hashtags and actual people and audiences retweeting and liking them.
keywords that have nothing to do with the product itself.
Kenya's most prominent brands will often pay to secure a
Trendjackers are equal opportunity offenders, meaning that trending topic for a day (usually a 24-hour commercial spot
the trending topics could include a celebrity, political event, that lists the sponsored topic as 'promoted'). This can be
top story, individual, headline, or English Premier League for an event, product launch, or simply to capture a core
football club; the trendjacker will consist of as many keywords message and deliver day-long awareness. However, in Nendo's
as possible with no regard for relevance.This makes Twitter experience, trend jackers inflate many brands' mentions and,
in Kenya strange to navigate. There are serious issues, some most of all, those that have a trending topic for a day. This
of national importance, being discussed, but often it takes creates a mirage of engagement and awareness that can
several extra scrolls to find the relevant and actual content. have the agency or brand reporting misleading figures for the
The trend jackers aren't violating any rules. They're taking number of people who mention a hashtag or a brand name.
advantage of the digital nation's captive attention and
interrupting that to serve up their message. For social listening to be effective and accurate, it is essential
to keep lists that can frequently filter out some individual
Trendjackers will push a wide variety of topics from beauty, accounts that use trend jacking. While it will diminish the
skincare, fashion, accessories, electronics, small businesses, numbers, it gives a more accurate read and allows the actual
and anything under the sun. This seemingly innocent practice audience participation to be measured more accurately. In
has steadily gained popularity and has become a pastime 2021, brands won't settle for the first number in the report but
that's harder to avoid. Many well-meaning social media users choose to scrutinise their data.
come online thinking that 'this must be how it works when it
comes to doing online marketing, and so they endure or join in Trendjackers, on the other hand, will increase in number,
- oblivious to the pros or cons of the approach. increase in intensity, and grow in their ability to interrupt and
distract readers. This will cause and accelerate a version of
What is a surprise is that the algorithm seldom detects or 'banner blindness.' in 2021, ' Banner blindness is a form of
deters this behaviour. Not that it would. These are active selective attention used to describe how internet users' eyes
users posting frequently, sometimes hundreds of times a day, and minds choose to ignore online ads selectively - whether
alternating keywords depending on what is trending. A trend correctly or incorrectly. In much the same way, eye-tracking
jackers aim is often simple and has nothing to do with gaining studies have shown banner blindness in popular search
engagement, such as likes or retweets. The game is to raise engines, social networks and news sites.
the awareness of as many people as possible. Some have
created informal networks that cross-promote each other's

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HOW WILL DATA, IN ITS
ROLE IN ADVERTISING
AND MARKETING, AND
THE RELATIONSHIP THAT
BUSINESSES HAVE WITH IT
EVOLVE IN 2021?

NOAH W. MILER, SHAUN BUKUSI,

MANAGING DIRECTOR. STRATEGY DIRECTOR.

If you are talking about Kenyan companies, The role of data in marketing continues
then they will be to familiarize themselves to grow significantly as it impacts all
with the Data Protection Act from 2019. disciplines as they evolve to meet the needs
This means companies need to ensure they of consumers and brands by leveraging
compile, handle and properly store data technology. This year will see more focus
in line with the provisions of the new legal on security, privacy and regulation as
framework. Only then should businesses consumers wake up to the risks associated
think about using customer data for better with poorly designed protocols while
client relation management or advertising businesses look to continuously collect and
campaigns. mine relevant data to drive growth.

SAM CHAPPATTE, DIVINE MURAGIJIMANA,

CEO JUMIA KENYA. GROUP HEAD, GLOBAL MARKETING AND
A lot of education is needed around how to COMMUNICATION.
use the data that is available. And what to Not sure that the data will evolve- but
ask your agency for to see how effective rather how we get, analyse and use data
they are. This is why more & more clients to drive marketing execution to drive
are shifting their budgets to digitally native business growth. Data is king- but it's only
platforms (eg Pulse, Jumia) good if we learn how to leverage the data
to power growth.

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PUTTING THE TRENDS TO WORK
IN YOUR BUSINESS
At Nendo, we've been asked about how we work, and I wanted to take a moment in this trend report to
showcase our model, as seen below. In 2020, Nendo crossed a significant milestone, having worked in
20 African countries with clients in the continent and those based in the United States and Europe.

Nendo's approach with trends spans delivering value centres on discovering ideas and insights, the definition
of the brief and problem to solve, development of concepts and solutions, and delivery of the final experience
followed by drilling the learning in through training and workshops.

Nendo delivers insights that drive income and impact for our clients and partners.

25
Nendo delivers insights that drive income and impact for
our clients. So why talk to us?
•• Talk to us to discover digital habits and insights about
your customers and audience.
•• Talk to us to plan your digital roadmap (vision, strategy,
and activities) for 2021 and 2022.
•• Talk to us to audit your digital budgets, spends, and
performance (internally and externally with agencies).
•• Talk to us to create and market your next digital
product, service, or experience.
•• Talk to us to train you and our teams to raise the digital
IQ of your board, management and staff.

If you read our report this far, you've already listened to

what we have to say. Maybe it is time you talk to us to
see if we can work together.

+254-717-229-619 | [email protected]

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202 1 N E N DO.CO.KE A PUB LICATION
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