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David Karanja: Meet the Brains Behind Company that Introduced Token Electricity Meters in Kenya

Following the announcement by Philips, a Dutch technology company, regarding its intention to withdraw from the Kenyan market, David Karanja, along with three associates, combined their resources to purchase the enterprise.

Karanja and his team, who were employed by the Dutch multinational, utilized their savings and severance packages to facilitate the acquisition.

They officially launched the business in April 2000, naming it Professional Digital Services Limited-Kenya (PDSL).

“It was a simple buyout. We were buying its operations here in Kenya. So what mostly we needed was office space and tools for our maintenance work

“If I remember well, we invested between Ksh 1.5 million and Ksh 2 million. We pooled from our savings and part of the payout benefits we received from The Philips of Netherlands,” he said.

Karanja and his associates subsequently became local representatives for Philips, specializing in communication devices, business telephone systems (PABXs), as well as the installation of conferencing and sound systems.

Their customer base comprised government agencies, high-end hotels, and financial institutions.

A year later, while collaborating with Philips, PDSL expanded its services to include data network installation, maintenance, and related solutions.

In 2002, they were designated as local agents for Gemalto, a result of the merger between Axalto and Gemplus, which allowed them to enter the SIM card sales market for mobile network operators.

In 2004, they became local partners for Atos Original in systems integration, responsible for implementing the Safaricom loyalty program, Bonga Points.

PDSL later entered into an agreement with Actaris, overseeing the pilot project for prepaid electricity meters for Kenya Power.

They produced 25,000 prepaid meters two years prior to receiving approval to replace the old meters with the new prepaid versions.

This number subsequently increased to over one million, ultimately replacing approximately 6.3 million units.

The concept of prepaid electricity emerged after Karanja attended an overseas trip.

“We have been strategic about our growth and the sectors we wished to explore. I frequently travel abroad for seminars and workshops to gain insights into the business and its local implementation. For instance, the idea of introducing prepaid electricity meters in our region originated from an event I attended in the UK,” he stated.

He further noted that it took 11 years for the proposal to be piloted, followed by an additional four years for the project’s execution.

In 2017, they collaborated with the Rural Electrification and Renewable Energy Corporation as a contractor for power lines.

Additionally, in 2018, PDSL partnered with the Kenya National Examination Council to facilitate the transmission of examination results for primary and secondary schools.

The firm also provides utility payment solutions for electricity, airtime, water, pay TV and a platform for bulk SMS delivery.

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