While staying at a smart apartment in Tunisia back in 2009, Patrick Mwiandi got to experience firsthand the power of the internet of things (IoT) and artificial intelligence technologies, when properly applied.
Unlike most apartments that needed a security guard to let residents into and out of the compound, this apartment leveraged IoT and AI technologies to control who could access the premises.
“Since the system had captured details of those staying at the apartment, it could detect when they approached and automatically close or open,” said Mwiandi in an interview with Powering SMEs.
Not only did this allow for the seamless movement of residents into and out of the building, it also significantly reduced the cost of managing the building, since the owners did not have to pay for security guards.
Other devices too, including doors, lights, thermostats and appliances, could be managed remotely through a phone or computer that was connected to the master home automation controller via wireless technology.
For several months after he left the apartment, Patrick kept thinking about how he could leverage his background in software engineering to implement this technology in the Kenyan market.
But while he had the knowledge and technical skills needed to build it, he did not have sufficient marketing skills and financial resources to promote and implement it.
“Based on my research, I realised that such a venture would require a huge capital investment. I needed someone to share the risk with. I could not make it on my own,” explained Mwiandi.
As he was travelling through South Africa in 2016, he was fortunate to bump into Esther Watene, an old friend who, coincidentally, had also recently taken a keen interest in smart home technology.
“When I was staying in South Africa, I could see children being dropped off by their school bus, then they would use remotes to let themselves in. That had really fascinated me,” said Esther Watene.
Together, they decided to launch Tech Home East Africa, a company that provides customisable technology solutions for residential homes, apartments, and enterprise organisations.
“Since our company focused on developing software, we first had to find manufacturing partners who produced equipment that could augment our software,” remarked Watene, Director of Administration and Interior Design.
They approached a manufacturer in South Africa, who taught them a lot about how to successfully run a business, but unfortunately could not produce the equipment they needed.
“The company was more inclined towards the entertainment side of automation, yet we wanted to offer wholesome home automation solutions,” remarked Watene.
This pushed them to look for another partner in the United Arab Emirates, who not only provided them with the equipment, but also the skills that they would need to scale the business to the next level.
“When we were starting out, we could not understand why people were not buying into the solution though they seemed impressed when we presented the technology to them,” said Mwiandi, the MD and head of Tech.
After every three months, they would travel to Dubai to learn all that there was to know about home automation, including the smart devices that were available in the market, how they worked and most importantly, how the technology could be marketed to clients.
“From the training, we learnt that the mistake we were making was to push the solution as a whole. This overwhelmed people and they did not know where to start,” said Mwiandi.
Since the solution they had created could manage several appliances from one central area, the better approach, says Patrick, would have been to break it down and let people add onto it with time.
“We would now go to a house and ask the owner what their most urgent need was. If it was security, we would install a smart gate, cameras and lighting, then allow them to add other features later, since the technology is wireless,” stated Mwiandi.
Whereas out of 50 pitches done in a year, they would only convert one client, this new approach enabled them to increase their conversation rate by up to 30 per cent.
It also made it easier for clients to meet the high costs that came with installing smart technology since they would pay for a solution only when they needed it, or when they got the money.
After three years of partnership with the Dubai-based supplier, the two felt that it was time to carry their business on the next level. To achieve this, they would have to work directly with the manufacturers of the smart equipment.
“Since the Dubai supplier was selling the smart devices on behalf of other manufacturers, the overall cost of the project would become really inflated and this would reduce our margins,” explained Watene.
The extended chain of contact also meant that they could not get the best guidance on how to use the equipment, therefore while installing the devices, they often had to rely on an engineer from Dubai to make the system work.
“We had to take care of their flight, their accommodation and their consultancy fee. So, if a project cost Sh3 million, we had to add Sh2 million in the final quote for the consultant. Few Kenyans were willing to pay that for new technology,” said Watene.
Working directly with the manufacturers would not only significantly reduce their cost of operation, it would also enable them to better customise the home automation solutions.
Currently, the firm works mostly with a manufacturer from Europe called Nice, that uses wireless technology to enable devices to connect and communicate.
“They were of interest to us because being a young company, we did not want to work with devices that would need to be installed when a building is under construction. We wanted to be able to introduce the technology into existing buildings,” said Mwiandi.
The downside of working exclusively with this manufacturer is that they have had to miss out on some projects, which wanted to cut costs by using cheaper devices from markets such as China.
“We are very uncompromising when it comes to quality and that has been an issue sometimes, the good thing is the quality ensures the longevity of our work. The smart gates or cameras we installed when we started in 2016 are still functional to date,” said Mwiandi.
Considering their projects come seasonally, working with the European manufacturer has also safeguarded them from incurring additional costs in support and maintenance. With a lean staff of eight, the firm has thus been able to serve notable clients, including the United Nations, county governments and an ambassadorial home, where they connected up to 4,000 smart devices to their technology.
“Due to issues around privacy, we cannot use such projects to showcase what we do, that is why we are looking for financial partners to build our own smart home model and also venture into the management of commercial buildings,” said Watene.
Recognised as Technology Innovators of the year by NaBLA awards in 2023, the proprietors are calling on the government to enhance the growth of tech businesses such as theirs, by streamlining taxes, regulating industry players and adopting local solutions.
“There have been a lot of reports of county governments and other government agencies having issues with high power bills, yet we have a system here that can calculate power usage and prioritise only the required power using AI,” said Mwiandi.
