[kictanet] kictanet Digest, Vol 81, Issue 47
Yusuf Tajbhai
yusmat at gmail.com
Wed Feb 19 16:29:25 EAT 2014
Find attached CV
On Wed, Feb 19, 2014 at 3:10 PM, <kictanet-request at lists.kictanet.or.ke>wrote:
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> Today's Topics:
>
> 1. Re: HP says laptop bid price changed to favour rival Olive
> (Adam Nelson)
>
>
> ----------------------------------------------------------------------
>
> Message: 1
> Date: Wed, 19 Feb 2014 15:08:54 +0300
> From: Adam Nelson <adam at varud.com>
> To: Ali Hussein <ali at hussein.me.ke>
> Cc: KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
> Subject: Re: [kictanet] HP says laptop bid price changed to favour
> rival Olive
> Message-ID:
> <CAGTm15=
> GXJOuuzomsJkDUScSx14KL3CpqeVA9LboUkkKnVBB7w at mail.gmail.com>
> Content-Type: text/plain; charset="iso-8859-1"
>
> It's called mercantilism (http://en.wikipedia.org/wiki/Mercantilism) and
> it
> can actually work as pointed out with certain industries. I won't claim to
> be an economist but if a country wants to be more mercantilist, it needs to
> meet a few basic requirements:
>
> 1. Very smart technocrat class making smart decisions about what industries
> to nurture.
> 2. Consistency over time (i.e. 10-15 years).
> 3. Limited focus (i.e. pick 3-4 industries, not 20).
>
> I just hope that Kenya doesn't choose to put its chips into a 20 year old
> industry that doesn't even exist here and has already plateaued globally,
> i.e. laptop assembly.
>
>
> --
> Kili - Cloud for Africa: kili.io
> Musings: twitter.com/varud <https://twitter.com/varud>
> More Musings: varud.com
> About Adam: www.linkedin.com/in/adamcnelson
>
>
> On Wed, Feb 19, 2014 at 3:00 PM, Ali Hussein <ali at hussein.me.ke> wrote:
>
> > Kivuva
> >
> > Good point on the motor industry.
> >
> > In my previous life :) I used to work in the motor industry at Lonrho
> > Motors as a Market Analyst.
> >
> > The government then had a % (can't remember the act percentage) local
> > content mandatory rule for commercial vehicles. As a result there
> emerged a
> > local content industry that exists to date that did body work,
> upholstery,
> > shocks, nuts and bolts etc..The beginnings of what is know as OEM
> (Original
> > Equipment Manufacturers). A lot of that is now lost because of
> ill-informed
> > blanket free market reforms driven by the IMF. (trust me when I say that
> no
> > western or eastern country has blanket free market economies except
> > Africa!). This thinking in the motor industry is what informed the growth
> > of the Japanese Motor Industry through deliberate policy moves by their
> > MITI (Ministry of international Trade & Industry).
> >
> > We in Africa have the opportunity to not allow ourselves to be encumbered
> > by legacy thinking of old school economic theories of comparative
> advantage
> > etc. We can learn and discard and ensure we get the best of both worlds.
> >
> > Ali Hussein
> >
> > +254 0770 906375 / 0713 601113
> >
> > "I fear the day technology will surpass human interaction. The world will
> > have a generation of idiots". ~ Albert Einstein
> >
> > Sent from my iPad
> >
> > On Feb 19, 2014, at 12:52 PM, Kivuva <Kivuva at transworldafrica.com>
> wrote:
> >
> > Thank you Machuhi, Lucy, Muraya and Ali for supporting that line of
> > thought.
> >
> > Adam, take time I walk you round our shopping centres around the country.
> > You will find thousands of educated youths hanging around with nothing
> > todo. They would appreciate working in some plant than wasting their
> years.
> >
> > And knowledge economy is good, but before we reach there what shall we be
> > doing?
> >
> > Lets take a model African country doing manufacturing. Many of the major
> > multinational firms use South Africa to source components and assemble
> > vehicles for the local and international markets. The sector is one of
> > South Africa's most important, contributing at least 6% to the country's
> > GDP and accounting for almost 12% of South Africa's manufacturing
> exports,
> > making it a crucial cog in the economy. In 2010, 271 000 vehicles were
> > exported. More than 28 000 people are directly employed in automotive
> > manufacturing, with 65 000 employed in the component manufacturing
> > industry. About 200 000 are employed in retail and aftermarket
> activities,
> > with 6 600 employed in the tyre manufacturing industry. Read more:
> >
> http://www.southafrica.info/business/economy/sectors/automotive-overview.htm#.UwR7b_m9m7I#ixzz2tl8lPOrm
> >
> >
> > Nobody should tell us we can only be mass consumer, we too, can add value
> > to the chain, and decide our own destiny.
> >
> > ______________________
> > Mwendwa Kivuva, Nairobi, Kenya.
> > twitter.com/lordmwesh
> > google ID | Skype ID: lordmwesh
> >
> >
> > On 19 February 2014 00:02, Lucy Kimani <lkimani at yahoo.com> wrote:
> >
> >> Murigi,
> >>
> >> I am with you on this one, I seem to recall the University of Nairobi
> >> being challenged engage in capacity building, but if the go.ke does not
> >> provide an enabling environment then that will be for null. The more
> >> things change in Kenya the more they remain the same, the go.ke should
> >> be using all their bags of tricks to level the playing field, and create
> >> new jobs for the youth. I see this as a lost opportunity at building
> >> capacity and investing in an industrial manufacturing foundation be it
> for
> >> laptops or even tablets as has been stated severally. The most
> developed
> >> of countries aka USA still has young people working on assembly lines,
> >> this would definitely be preferable to being unemployed, ask the youth
> who
> >> cant find a job anywhere these days.
> >>
> >> Very disappointed in The Ministry of Information and Communication who
> >> are MIA in this very important discussion, and many others as I have
> >> pointed out previously leaving a void as representatives of the digital
> >> go.ke your silence on this very important issue is deafening. I
> thought
> >> your mission was to and I quote "To develop Kenya as a globally
> >> competitive and prosperous nation by creating an enabling environment
> that
> >> encourages and enhances the development, expansion and use of
> Information
> >> Communications Technologies (ICTs)."
> >>
> >> On Wednesday, February 19, 2014 9:44 AM, S.M. Muraya <
> >> murigi.muraya at gmail.com> wrote:
> >> If Asians listened to Western doubts about their prospects and
> >> potential, they would not have the manufacturing capabilities they do
> today.
> >> China imports raw materials from Africa, and like them, we should not
> >> give our children a chance to learn to transform these into other
> products?
> >> First we build labs (mini factories) then...
> >> On Feb 19, 2014 9:00 AM, "Adam Nelson" <adam at varud.com> wrote:
> >>
> >> Keep in mind though that supporting industry and helping kids with a
> >> final product are two independent things. The more money that goes into
> >> spinning up a manufacturing capacity, the less money that goes into
> getting
> >> the technology to the kids. Kenya can't magically produce laptops
> cheaper
> >> than China can.
> >>
> >> Kenya has no chance of having a meaningful laptop assembly capacity
> >> because it doesn't have the economies of scale that South East Asia has.
> >> Europe and the US are giving lots of technology to their children and
> none
> >> of that stuff is produced in-country because manufacturing plants can't
> >> exist in isolation.
> >>
> >> A laptop assembly plant is just one of dozens of plants (chemical
> >> manufacturing, plastic-shaping, aluminum foundries, LED, etc...) needed
> in
> >> close proximity to eachother just to create the first laptop. Having a
> >> laptop assembly plant in Kenya and all the preceding plants stay in
> China
> >> isn't economically viable. And also, if the plant is only creating a
> few
> >> million laptops, it's doubly not viable. It has to produce more like
> >> 10M/year and in order to do that and so the plants would need to export
> >> those laptops. Where are these laptops going to be exported to and how?
> >> Is a typical Rwandan going to buy a Kenyan laptop over a Chinese one?
> >> Maybe, just maybe, with a solid $5-$10B of pure investment Kenya could
> get
> >> a real industry going but then to what end? Computer manufacturing has
> >> already plateaued (currently one computer produced for every 20 people
> each
> >> year) and it's agreed that future growth will happen in tablets and
> mobiles
> >> where most of the value is in commodities and intellectual property, not
> >> assembly line labor. Tablet sales are already 60% of computer sales and
> >> the industry is seeing 50% YoY growth.
> >>
> >> Kenya has all the raw ingredients to leapfrog manufacturing and go
> >> straight to a knowledge economy - it just needs to invest deeply in its
> >> children through strong, universal education. Having young people
> working
> >> on assembly lines is not a way to empower youth.
> >>
> >>
> >>
> >> --
> >> Kili - Cloud for Africa: kili.io
> >> Musings: twitter.com/varud <https://twitter.com/varud>
> >> More Musings: varud.com
> >> About Adam: www.linkedin.com/in/adamcnelson
> >>
> >>
> >> On Tue, Feb 18, 2014 at 10:12 PM, S.M. Muraya <murigi.muraya at gmail.com
> >wrote:
> >>
> >> They are taking electricity to thousands of schools to make this project
> >> work.
> >>
> >>
> >>
> http://mobile.nation.co.ke/News/Electricity+and+stores+pledge+in+laptops+plan/-/1950946/1978754/-/format/xhtml/-/adm3ge/-/index.html
> >>
> >> Have noted in the past, the ecosystem effects are significant, even if
> >> the laptops fail to increase interactive learning.
> >>
> >> The power of Go.Ke to demand electronic assembling plants has also
> >> significantly increased.
> >>
> >> Regards
> >>
> >> Murigi / Stanley Muraya
> >>
> >> *"Better a patient person than a warrior, one with self-control than one
> >> who takes a city." Prov 16:32*
> >>
> >>
> >> On Tue, Feb 18, 2014 at 8:24 PM, Sean Moroney <seanm at aitecafrica.com
> >wrote:
> >>
> >> Here, here, Adam.
> >>
> >> The entire project is garbage, from beginning to end, but unfortunately
> >> rational thought and action are not given priority in politics.
> >>
> >> Imagine what could have been achieved if the laptop budget had been
> >> allocated to capacity building for teachers, and developing secure
> >> solar-powered computer labs for all school years to use.
> >>
> >> Sean Moroney
> >> *Chairman*
> >> *AITEC Africa*
> >>
> >> seanm at aitecafrica.com
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> >> begin_of_the_skype_highlighting +233(0)57-0445059 FREE
> >> end_of_the_skype_highlighting*
> >> *Kenya Mobile: +254(0)721-845674
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> >> end_of_the_skype_highlighting*
> >> *Mozambique Mobile: +258-820880583
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> >> <image001.jpg> <http://aitecafrica.com/event/view/95>
> >>
> >> <image002.png> <https://twitter.com/aitecafrica> <image003.png><
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> >
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> >>
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> >> in England and Wales.Company registration number: 4698475
> >>
> >>
> >> *From:* kictanet [mailto:kictanet-bounces+seanm=
> >> aitecafrica.com at lists.kictanet.or.ke] *On Behalf Of *Adam Nelson
> >> *Sent:* 18 February 2014 15:00
> >> *To:* Sean Moroney
> >> *Cc:* KICTAnet ICT Policy Discussions
> >> *Subject:* Re: [kictanet] HP says laptop bid price changed to favour
> >> rival Olive
> >>
> >> We're ignoring the elephant in the room. Both vendor's laptops are
> >> going to be garbage.
> >>
> >> With that kind of budget, tablets are the only way to go. Anyway,
> >> tablets are so much more sensible from a pedagogical point of view as
> well
> >> as a battery life (10 hours vs 1) and durability standpoint (you can
> drop a
> >> tablet on a cement floor from 2 feet and the screen might crack but it
> can
> >> be taped up and works fine).
> >>
> >> Even Apple iPads are only $300 retail nowadays and surely the
> >> government could get them for $200 or even $150 since Apple's CSR team
> >> would be all over themselves to make the sale. No ICT support would be
> >> required and everything would 'just work' as long as the theft and
> breakage
> >> rate is kept reasonable.
> >>
> >> If anybody in the government could do anything innovative with this
> >> thing, it would catapult their career to the national and international
> >> stage.
> >>
> >> --
> >> Kili - Cloud for Africa: kili.io
> >> Musings: twitter.com/varud <https://twitter.com/varud>
> >> More Musings: varud.com
> >> About Adam: www.linkedin.com/in/adamcnelson
> >>
> >> On Tue, Feb 18, 2014 at 5:36 PM, Ngigi Waithaka <ngigi at at.co.ke>
> wrote:
> >> If this line is true,
> >>
> >> "*...The technology firm further says it was invited through a letter
> >> dated December 6, but which was delivered on the morning of
> negotiations,
> >> allowing them no time to prepare...*."
> >>
> >> Then you know HP is being played for sucker, and I think they are....
> >> The only option on the table, prepare themselves for a Judicial Review
> >> (Takes about a year to conclude), PPARB decisions IMO are not based on
> >> substance, and if they are, its of a different kind!
> >> Waithaka Ngigi
> >>
> >> On Tue, Feb 18, 2014 at 5:21 PM, S.M. Muraya <murigi.muraya at gmail.com
> >
> >> wrote:
> >>
> >> What did Olive Telcom offer in terms of local assembly/support,
> >> maintenance and connectivity?
> >>
> >>
> http://www.businessdailyafrica.com/HP-says-tender-team-rigged-pricing-of-laptops-for-rival/-/539546/2210772/-/view/printVersion/-/4t0eatz/-/index.html
> >> HP says laptop bid price changed to favour rival Olive
> >> IN SUMMARY
> >> * HP says Olive Telecommunications had on December 13 quoted a price
> of
> >> Sh23.1 billion as its final offer.
> >> * Computer maker also claims Olive and Haier are associates that
> should
> >> not have been allowed to place separate bids.
> >> * The allegations add to the controversy that has stalked procurement
> >> of laptops for primary schools.
> >> Senior government officials colluded with executives of an Indian
> company
> >> to inflate prices for the controversial laptops tender by as much as
> Sh1.4
> >> billion after the final bids were made, it has emerged.
> >> American computer maker Hewlett Packard (HP) says Olive
> >> Telecommunications -- the Indian company that won the tender to supply
> the
> >> laptops -- had on December 13 quoted a price of Sh23.1 billion
> ($268,899,
> >> 669) as its final offer.
> >> But Education secretary Jacob Kaimenyi later announced that Olive
> >> Telecommunications had won the tender to supply the laptops at a price
> of
> >> 24.5 billion ($284,814,957) without reference to the alterations.
> >> "It is clear from the foregoing that the procuring entity amended the
> >> total price quoted by the successful bidder and which was read out at
> the
> >> opening of BAFO (Best and Final Offer) and awarded it (Olive) the sum of
> >> $15,914,288 (Sh1.4 billion) more than it had actually quoted," says HP
> in
> >> documents filed Thursday before the Public Procurement Administrative
> >> Review Board (PPARB).
> >> HP also alleges that Olive and rival bidder Haier, which was among the
> >> three shortlisted bidders for the supply of 1.3 million laptops, are
> >> related companies that should never have been allowed to submit
> competing
> >> bids meant to lock out rivals.
> >> According to HP, the tender committee should have disqualified Olive and
> >> Haier Group's applications on grounds that the two companies are related
> >> and could not place separate bids.
> >> "To the procuring entity's knowledge the said two companies had
> >> previously entered into a joint venture to form Haier Telkom (India), a
> >> company that is still active," says HP.
> >> The allegations add to the controversy that has stalked procurement of
> >> laptops for primary schools.
> >> HP accuses the tender committee of colluding with Olive Communications
> to
> >> undermine rival bidders.
> >> The American firm claims that Ministry of Education officials allowed
> >> Olive to submit an incomplete price list that left room for price
> >> manipulation and enabled the Indian firm to overtake it [HP] as the
> lowest
> >> bidder.
> >> In an application filed through Nairobi law firm Iseme Kamau and Maema
> >> Advocates, HP says procurement of the laptops has been shrouded in
> secrecy
> >> that has irredeemably compromised the award.
> >> HP accuses the tender evaluation committee of disclosing the price
> quoted
> >> by the bidders and in effect allowing price comparison and undercutting
> -- a
> >> claim that if proved will cast doubt on the entire process.
> >> The American company says it was the lowest bidder when the financial
> >> offers were opened on December 6, having offered to supply the 1.28
> million
> >> laptops for Sh25 billion compared to Haier Electrical's Sh27.2 billion
> and
> >> Olive Communications' Sh27.2 billion.
> >> All prices were subject to further negotiations.
> >> HP claims that the tender committee used every opportunity to release
> >> confidential information in the bid documents to competing firms it says
> >> were sister companies used to undercut its offer.
> >> "Release of the said information created the very mischief sought to be
> >> prevented by Section 44 of the (Public Procurement and disposal) Act,"
> HP
> >> says, adding that rival bidders used the unit prices to undercut the
> >> applicant.
> >> Meyrin Branch, who oversees HP's corporate accounts, says in an
> affidavit
> >> that only his company's application should have been subjected to
> further
> >> evaluation, including price negotiations, and that the tender committee
> >> should only have engaged rival bidders in the event that the talks
> >> collapsed.
> >> Instead, the tender committee invited all bidders to price negotiations
> >> on December 10 at Windsor Golf Club against HP's expectation.
> >> The technology firm further says it was invited through a letter dated
> >> December 6, but which was delivered on the morning of negotiations,
> >> allowing them no time to prepare.
> >> Each firm held separate negotiations with the tender committee during
> >> which they were asked to reveal their BAFO.
> >> "The mode of negotiation adopted made it very possible for information
> of
> >> a particular bidder to be disclosed to others with the aim of sabotaging
> >> certain bidders," says HP.
> >> Ministry of Education officials are alleged to have failed to define the
> >> scope of negotiations to participating bidders and instead confronted
> them
> >> with questions at the meeting.
> >> The tender committee is also accused of refusing to supply HP with the
> >> minutes of the negotiations or even a summary of what transpired.
> >> The information was needed for purposes of filing the appeal.
> >> HP later learnt on December 13 that following the price negotiations,
> >> Olive had dislodged it from top position with an offer of Sh23.1
> billion, a
> >> reduction of Sh4.1 billion from its initial offer of Sh27.2 billion.
> >> The American computer maker was then left in the second lowest bidder's
> >> position with a price of Sh24.8 billion while Haier was last with a
> final
> >> offer of Sh25 billion.
> >> "It was therefore surprising when on February 7, 2014... Prof Jacob
> >> Kaimenyi announced that Olive Telecommunication had been awarded the
> tender
> >> at Sh24.6 billion," says HP.
> >> HP also claims that the committee declined to consider its offer to
> >> provide value-added services to the tune of Sh4.4 billion free of
> charge.
> >> It says the tender committee should have disqualified Olive and Haier
> >> Group's application on grounds that the two companies are related and
> >> should not have placed separate bids.
> >> The details emerged even as the parliamentary committee investigating
> the
> >> laptops for schools tender called on the government to suspend signing
> of
> >> the contract.
> >> The MPs argued that Olive is a small company that partnered with another
> >> firm called CMC to tender for the laptop and that it is not an original
> >> equipment manufacturer (OEM).
> >> The MPs' claims give credence to HP's argument that the committee
> >> breached one of the requirements that limited bidding to OEMs.
> >> The parliamentary committee has accused Prof Kaimenyi of awarding the
> >> tender even before the due diligence report on the winning company is
> >> scrutinised.
> >> MPs are expected to independently investigate the matter and produce a
> >> report.
> >> Ministry of Education officials are also accused of rejecting HP's bid
> >> for the supply of projectors on grounds that it is not an OEM for
> >> projectors even as it accepted Olive's bid for laptops.
> >> "Since the requirement that bidders must be OEMs was specifically set
> out
> >> in the tender documents, HP accepted the decision (to reject its bid for
> >> projectors) and reasonably expected that similar criteria would be used
> in
> >> respect of other bidders," HP says.
> >> The government in October re-advertised for the supply of laptops,
> >> printers and projectors to public schools in fulfilment of Jubilee
> >> alliance's campaign manifesto.
> >>
> >> _______________________________________________
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> >>
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> >> for people and institutions interested and involved in ICT policy and
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> >>
> >>
> >>
> >>
> >> --
> >> *Regards,*
> >>
> >> *Wait**haka Ngigi*
> >> Chief Executive Officer | Alliance Technologies | MCK Nairobi Synod
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> >>
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> >>
> >> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> >> for people and institutions interested and involved in ICT policy and
> >> regulation. The network aims to act as a catalyst for reform in the ICT
> >> sector in support of the national aim of ICT enabled growth and
> development.
> >>
> >> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> >> online that you follow in real life: respect people's times and
> bandwidth,
> >> share knowledge, don't flame or abuse or personalize, respect privacy,
> do
> >> not spam, do not market your wares or qualifications.
> >>
> >>
> >> _______________________________________________
> >> kictanet mailing list
> >> kictanet at lists.kictanet.or.ke
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> >>
> >> Unsubscribe or change your options at
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> https://lists.kictanet.or.ke/mailman/options/kictanet/murigi.muraya%40gmail.com
> >>
> >>
> >> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> >> for people and institutions interested and involved in ICT policy and
> >> regulation. The network aims to act as a catalyst for reform in the ICT
> >> sector in support of the national aim of ICT enabled growth and
> development.
> >>
> >> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> >> online that you follow in real life: respect people's times and
> bandwidth,
> >> share knowledge, don't flame or abuse or personalize, respect privacy,
> do
> >> not spam, do not market your wares or qualifications.
> >>
> >>
> >>
> >> _______________________________________________
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> >> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> >> for people and institutions interested and involved in ICT policy and
> >> regulation. The network aims to act as a catalyst for reform in the ICT
> >> sector in support of the national aim of ICT enabled growth and
> development.
> >>
> >> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> >> online that you follow in real life: respect people's times and
> bandwidth,
> >> share knowledge, don't flame or abuse or personalize, respect privacy,
> do
> >> not spam, do not market your wares or qualifications.
> >>
> >>
> >>
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> >>
> >> The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> >> for people and institutions interested and involved in ICT policy and
> >> regulation. The network aims to act as a catalyst for reform in the ICT
> >> sector in support of the national aim of ICT enabled growth and
> development.
> >>
> >> KICTANetiquette : Adhere to the same standards of acceptable behaviors
> >> online that you follow in real life: respect people's times and
> bandwidth,
> >> share knowledge, don't flame or abuse or personalize, respect privacy,
> do
> >> not spam, do not market your wares or qualifications.
> >>
> >
> > _______________________________________________
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> > The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> > for people and institutions interested and involved in ICT policy and
> > regulation. The network aims to act as a catalyst for reform in the ICT
> > sector in support of the national aim of ICT enabled growth and
> development.
> >
> > KICTANetiquette : Adhere to the same standards of acceptable behaviors
> > online that you follow in real life: respect people's times and
> bandwidth,
> > share knowledge, don't flame or abuse or personalize, respect privacy, do
> > not spam, do not market your wares or qualifications.
> >
> >
> > _______________________________________________
> > kictanet mailing list
> > kictanet at lists.kictanet.or.ke
> > https://lists.kictanet.or.ke/mailman/listinfo/kictanet
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> > Unsubscribe or change your options at
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> >
> > The Kenya ICT Action Network (KICTANet) is a multi-stakeholder platform
> > for people and institutions interested and involved in ICT policy and
> > regulation. The network aims to act as a catalyst for reform in the ICT
> > sector in support of the national aim of ICT enabled growth and
> development.
> >
> > KICTANetiquette : Adhere to the same standards of acceptable behaviors
> > online that you follow in real life: respect people's times and
> bandwidth,
> > share knowledge, don't flame or abuse or personalize, respect privacy, do
> > not spam, do not market your wares or qualifications.
> >
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> ****************************************
>
--
Regards,
Yusuf. Tajbhai
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