The issue of the unacknowledged financial burden imposed on consumers by "good enough" technology.
In Kenya's challenging economic climate, every decision is assessed rigorously in terms of cost. The landscape is characterised by intense competition, significant tax burdens and complex regulations, such as the DPA. It is logical, therefore, that when it comes to technology, the default strategy is to minimise expense. In terms of a cost-effective solution, it would be prudent to consider a combination of readily available, off-the-shelf SaaS tools.
However, our experience indicates that this approach may be counterproductive. We have observed that this pursuit of low upfront costs can impose a substantial hidden tax on a business. The "good enough" tech stack, intended to save money, is often the source of a company's most significant profit leaks.
The reasons why your technology stack is not generating sufficient profit
The leakage can occur in three distinct ways. Firstly, consider the inefficiency tax: separate systems do not communicate with each other, resulting in your team becoming the expensive, error-prone human API. This leads to a considerable amount of time being spent on manual data entry and reconciliation. Secondly, we turn to the concept of the 'invisibility tax'. In the context of dispersed data, a key challenge is the absence of a centralised repository of truth. This hinders the ability to make quick decisions, which is crucial for a business. It also makes the business less attractive to lenders, which can hinder growth.
Finally, and perhaps most dangerously, is the compliance tax. Generic software was not developed with regard to the Kenyan Data Protection Act. Managing this risk manually is a serious issue, with the potential for significant fines and reputational damage.
Investing in precision efficiency is a key strategy for businesses.
In order to thrive, it is recommended that we transition from a focus on cost minimisation to a strategy of investing in precision efficiency. Rather than asking "What is the cheapest tool?", the more productive question to ask would be "What is the most direct path to eliminating my biggest operational inefficiencies?"
A unified, custom-engineered system should not be viewed as an expense; rather, it should be regarded as a deflationary asset. By automating core processes and creating a single, auditable source of data, you can permanently reduce your operational overhead. The process of transformation will make your business a more attractive and bankable asset. For our clients, we often de-risk this investment by starting with a single, high-impact project. By demonstrating the return on investment promptly on a modular build, we establish a compelling business case for a more extensive partnership.
In the Kenyan market, it is clear that the winners will not be the companies that spend the least on technology. They will be the ones who derive the most strategic and financial value from it.