4. TRAINING FOR THE INFORMAL SECTOR IN KENYA
4.8 Case study C: Product Design and Development Centre
A recent phenomenon in the training sector in Kenya is ‘training for production’, which maybe could be more aptly described as ‘product-based training’. Essentially it re- fers to an interesting mix of skills development and product development: small produc- ers receive, usually short-term, skills training that is entirely focussed on the production of a new or improved product.
Product development can be defined as the systematic and creative generation of products which serve the physical needs and psychological desires of people at a price that they can afford or are willing to pay (Masera 1998), i.e. the development of products in which interact available technologies, design creativity, and market demand (combining consumer preferences and their financial possibilities). In the case of MSEs this involves not only the entire production phase but also their marketing activities.
Traditionally training for the informal sector has hardly been directed at product quality or product development (cf. Nelson 1997). In recent years, however, a number of local organizations in Kenya have initiated this kind of skills training: ApproTEC, K-ICK/ZWIKA, Product Design and Development Centre and the Gatsby Trust Kenya. The activities and achievements of the first organization have been amply described else- where (Nelson 1997; Havers 1998) as, to a lesser extent, has been the second one (see ZIWA Creations 1998). The present discussion will focus on the third.
The Product Design and Development Centre (PDDC) aims at the commercial pro- motion of Kenyan handicrafts. It is owned by the Artisan Trust (UK) and was granted a
certificate of compliance under the Kenyan Companies Act in November 1997. Essen- tially it seeks to improve the design and quality of Kenyan handicrafts, especially in soap stone, sisal and wood, and commercially promote its export to Europe and the USA. At present its director is employed on a UNDP expert-contract.
In PDDC’s analysis, there is interest in Kenyan handicrafts in industrialized coun- tries, for instance in Europe, but usually their quality leaves to be desired. On the basis of the GEMINI National MSE Survey, it estimates that there are 4,290 craft enterprises in the country employing 4,865 owners and workers (i.e. an average firm size of only 1.1 work- ers). The main problems of crafts in Kenya include: (i) low productivity, which is about one-third of craft productivity in some Asian countries (e.g. Philippines), modest and un- stable product quality, (iii) difficulties in timely delivery for larger contracts, and (iv) lack of contacts with international buyers of handicraft products.
PDDC’s main activities are: (i) improving the technical capacity of artisans through training, (ii) providing design consultancies at national and international level, and (iii) developing ‘satellites’ which are rural production and training centres. It operates train- ing-cum-production workshops, together with a show room and sales outlet, in one of the more affluent areas in Nairobi. Here independent craft producers are based who benefit from technical assistance provided by the Centre and from the sales outlet. The show- room sales are used to test the (expatriate) market’s reaction to designs, production methods, textures, colours and prices - success and failures in the showroom are used to guide the product development process. The Centre states to attach particular impor- tance to foster a sense of leadership in its entrepreneurial trainees.
The training offered by PDDC consists of both technical training in commercial craft manufacturing, and entrepreneurship development and training in business skills. The training is largely provided ‘in the field’, and in particular in the ‘satellites’ where PDDC has formed groups of craft producers. The first ‘satellite’ was set up in Isolo River (Kitui) for the manufacturing of sisal items. It employs some 700 women, who received training in improved product designs and the importance of quality products. A similar ‘satellite’ was established in Machakos, where a UN-volunteers was already working was a group of women. ‘PDDC Machakos’ now consists of an office (with fax and email) and two workshops, and developing a capacity to dye sisal. It is financed by the commissions on the sales from Isolo.
Between March 1998 and March 2000 8,750 craft producers were trained. They paid a token training fee, resulting in a total training revenue of some USD 300. According to information from PDDC staff, the craft producers are now charged more realistic fees. There are also seminars and workshops given on various business topics in the PDDC facil- ities in Nairobi. They draw a mixed audience, consisting of handicraft producers linked to PDDC and others who come from different areas in Nairobi. They pay KSh. 500 (USD 7) per day for these workshops. The PDDC training is still heavily subsidized by UNDP.
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PDDC claims to have achieved the following results:
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600-800 craft artisans trained per month8
creation of 700 jobs in sisal production based on exports of products8
development of new products in metal casting, resin manufacture, paper making and paint finishes, inter alia through the consultancy visits of experts from the UK, Philippines Mexico and Thailand8
introduction of product design and development to the University of Nairobi8
publication of a series of technical and management papers8
production of a catalogue and a web-site8
establishment of one of the leading craft showrooms in Nairobi.In 1998/99 the company had a turnover of some USD 170,000 and made a profit of USD 23,333 (PDDC 2000). PDDC says to distinguish itself by not competing on price but on quality and design.
PDDC has recently formulated a business plan for an ambitious expansion for the period 2000-2003. It envisions to strengthen its development services (supported by do- nors) and its marketing of handicrafts, in which skills development through training will continue to play an important role. As part of its drive for innovations in craft designs, it will make extensive use of computer-aided design techniques to develop prototypes which subsequently will be market-tested. The plan would require a financing of USD 520,225. The craft producers who will be trained in the future, will be charged fees that will begin to cover full costs. As part of its future plans, “serious considerations will be given to moving some of the artisanal training which is now given in Westlands to the parts of Nairobi that are closer to the areas where large number of poor people live. This will make training more accessible to entrepreneurs and artisans and reduce travel costs for poor clients” (PDDC, 2000:41). The focus of PDDC’s handicraft promotion will remain on the local market.