Apptivate Africa, a revolutionary digital lunch scheme provider, has this week reported increased interest for its mobile lunch delivery app, M-Kula largely from local manufacturers and commercial lenders.
Manufacturers and Commercial banks in Kenya are looking to effect a Ksh4,000 (about $40) pay rise for employees through tax free lunch schemes in a quest to boost the productivity of workers and shore up their bottom lines.
“A number of companies, especially in the manufacturing and banking industries that were lax in early 2018 are now interested in exploring how we can help them,” said Apptivate Africa Chief Executive Officer, Mr. Neil Ribeiro.
Apptivate Africa has particularly expressed optimism the interest by manufacturers will accelerate momentum and boost the sector’s contribution to the economy. Manufacturing sector contribution to Gross Domestic Product (GDP) has been stagnating at about 10 per cent over the last few decades.
“We are ready to be part of the big role of re-awakening the sector in line with President Uhuru Kenyatta’s Big 4 Agenda on manufacturing,” said Mr. Ribeiro.
The Presidency has listed policy review for sector and incentives among its priority areas to enhancing manufacturing sector contribution from current 9.2% to 15% of GDP by 2022.
Apptivate said improved business environment, investor confidence in 2018 and a growing need to create employee-employer emotional connection, will accelerate demand for mutually benefiting incentives like meal vouchers by companies in 2019.
“Employers are realizing that they need to provide more than a pay cheque to keep their teams motivated. Food is a basic human need, and a great way to get employees motivated and to create an emotional connection between them and the company,” said Mr. Ribeiro.
“This is to show our commitment to improving staff welfare that has significant effect on employee productivity and company bottom-line. The App is easy to use, transparent and has a perfect book keeping system and helps us in remitting our Taxes,” said NKG Chief Executive Office, Pavan Koshal.
Employees under this scheme are entitled to Ksh48,000 in tax free meal allocations wired directly to their mobile wallet annually, translating to a tax-free pay rise of Ksh4,000. Uptake of the M-Kula App grew four-fold by the end of 2018 compared to the previous year backed by key sign up of top brands including KFC, Ruiru based German Coffee Miller, NKG, Haco, Mondo Rodes, Bags & Balers, Kingsway Tires, Kenpoly and Kenpoly.
Over the period, number of Kenyan employees enjoying tax free meals was recorded at over 4,000, with employers reporting between 12% to 25% rise in productivity.
“At the beginning of 2018, you could redeem M-Kula at just over 100 locations in Nairobi. Today you can redeem it at 280 locations countrywide,” said Mr. Ribeiro.