Dr. Renée Botta, Media, Film & Journalism StudiesDr. Karen C. Loeb, Daniels College of Business

University of Denver .

March 2012

Overview Kibera Context

3-Legged Stool Model

Problem Statement

Business Model

Training & Implementation

Usage, Accounting & Financial Results

Facility Management

Conclusions

Lessons Learned

Next Steps

Maji na Ufanisi

Kibera, Kenya• Kibera is an “informal settlement” situated in the southwestern part of the city of Nairobi. There are over a half million people living in slum conditions in one square mile:

• Virtually no access to toilets• Limited access to clean water

• “Flying toilets” abound where people defecate into plastic bags that they throw onto the streets.

•In Silanga, our village, one pit latrine serves about 272 people, while the WHO recommends a maximum of 40 persons per toilet.

•In Kibera, the mortality rate for children under 5 is 19%.

Extensive data collection and analyses reflected major gaps in the flow of value and resources:

Funder

Corporate / Implementer

Facility Operator

Customer

Breakdowns in: Managerial Oversight

Business Training

Standardization

Communication

Innovation Sharing

Revenue Sharing

Hygiene Education

Governance Processes

Recognition of Gender Issues/Roles

Problem Statement

Business Model of Social Franchising

Local Partner/Implementer

Project Management Oversight

Franchises/Local Governance

Philanthropic Funder/Grantors

Community-Based Governance

Facilities

Business Training Elements Process Flows

Standard Operating Procedures

Usage Records

Accounting Records

Finance Models

Supplemental Enterprises

Implementation Had planned quasi-experimental design varying

degree of project management oversight, degree of hygiene messaging/training and introduction of supplemental enterprises

Revised business focus became (1) making facilities operational , (2) obtaining consistent water flow (3) consistent record keeping and (4) adaptation of and adherence to SOPs

Data collection on usage rates, accounting, finances and business management

Results-to-date: Usage Rates

As facilities become operational, overall usage generally increases over time, though impacted by water shortages/closures.

Daily overall average usage ranges from 53 (Oct) to 198 (Feb) across facilities.

Shower usage was limited primarily by water availability, but also lack of pumps to upper tanks and lack of water heaters.

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Sep Oct Nov Dec Jan Feb

# Uses

Month

TOTAL TOILET USAGE

Results-to-date: Usage Rates

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# USES

FACILITY

TOTAL TOILET USAGE PER FACILITY

Sep

Oct

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Jan

Feb

• Generally, usage increases at each facility over time (41 exception; attendant change).• Jola introduced monthly family usage fee in February, so actual usage (conservatively) derived, rather than recorded.• Holiday away trips and serious water shortages (forcing closures) affected usage.• Location matters: proximity to cheaper pit latrines dampens general usage (MSF), while proximity to a bar enhances usage (41)!

Results-to-date: Accounting

Biggest expense is payment of attendant, followed by purchase of water.

Toilet usage is biggest contributor to revenues, with the sale of water and liquid soap enterprises at facilities emerging as additional revenue streams.

Water shortages restrict revenue opportunities significantly.

Planned enhancements to water storage capacity should significantly affect water and shower revenues.

Attendant56%

Soap6%

Tissues6%

Water 27%

Misc5%

Total ExpensesWater

9%

Toilet84%

Showers1%

Enterprises6%

Total Revenue

Results-to-date: Financial

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Sep Oct Nov Dec Jan Feb

Rev-Exp AvgKSH

Month

NET AVERAGE MARGIN ACROSS FACILITIES

• Across facilities, there is evidence of profitability.• Decrease in November reflects new facilities starting up, while February decline reflects impact of water shortages and closures.

Results-to-date: Financial

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REV-EXP AVGKSH

FACILITY

NET AVERAGE MARGIN PER FACILITY

• Each facility reflects overall profitability except Wamunyu, which recently restarted operations.• Jola uses monthly plan and pays their attendant the most.

Results-to-date: Financial

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Rev – ExpKSH

Facility

NET MARGIN PER FACILITY PER MONTH

Sep

Oct

Nov

Dec

Jan

Feb

• Water shortages in February adversely affected every facility.• Alternative monthly pay-for-family-use model at Jola emerged as most effective in maintaining positive margin (if water is available).• Current toilet usage alone appears insufficient in most cases to cover attendants’ expected salaries.• Increased water capacity could impact revenue stream significantly for increased water sales, water purification enterprise, and shower usage.

Results-to-date: Facility Mgt

Project Mgt oversight has facilitated centralized problem solving (e.g., attendant supplies, water issues).

Project Mgt oversight and profitable facilities has sparked re-evaluation of Community governance strategies.

Priorities shifting due to identification of critically needed repairs and water shortages.

Gathering data on facility/attendant conformance to SOPs. Will correlate SOP conformance ratings (by CBO and Project

Manager) with Net Margin data to test hypothesis that higher conformance is positively associated with net margin.

Once facilities are fully operational with new enterprises and increased water capacity, the degree of project management oversight will be varied to examine appropriate span of control.

Conclusions

Residents do use facilities when available.

Monthly passes per family yield consistently higher net margin (JOLA).

Consistency in facility functionality and water access is key to long-term profitability.

Structural repairs are needed to extend functionality and increase revenue.

Need to expand “marketing” by meeting users’ basic needs first (e.g., greater access to clean water).

Social Franchising: Lessons Learned Business model yields positive net margin at facilities, critical for

operational sustainability. Improved communication up and down the value

chain, facilitated by the project manager, contributed to financial gains and sharing of local innovations.

Defining “social” concept means adapting to ever-changing needs of the community: Monthly family-usage fees Local governance strategies Critical need for greater access to clean water

Additional data gathering will enable determination of: Appropriate project management span-of-control Impact on health outcomes and hygiene practices User perceptions of influence of local governance

Next Steps: Improve Facilities Structural/functional

integrity

Cosmetic Appeal

Enhancements to increase usage (e.g., pumps, water heaters, handicap rails, sanitary bins, incinerator)

Next Steps: Increase Revenues

Expand significantly capacity for water access and sales

Promote water purification and liquid soap sales

Develop marketing campaigns

Create consistent “branding” of facilities

Next Steps: Manage Facilities Revise and implement

new local governance strategies & structure

Evaluate high/low project mgt oversight to determine appropriate span-of-control

Evaluate residents’ attitudes towards facility oversight (CBO post-survey)