Distinguished Board Members,
I present to you the CEO Report for Q1 2026, marking the launch of our "Quantum Leap" strategy. FY2025 demonstrated resilience with 39% revenue growth to KES 32.5M, positioning us for an ambitious 131% growth trajectory to achieve KES 75M in FY2026 through our dual-pronged "Whale Hunt" and "Anchor Garden" strategies.
Secure 10 "Whale" deals (5M+ each) targeting high-value MFI and enterprise segments.
Onboard/upsell 20 anchor clients generating 100K+ monthly recurring revenue.
| Account Name | FY 2024 | FY 2025 | Difference | % Growth |
|---|---|---|---|---|
| Recurring Revenue | ||||
| Subscription Income | 4,851,512 | 4,463,313 | -388,198 | -8% |
| Transactional Income | 3,224,930 | 4,451,747 | 1,226,817 | 38% |
| E-Guarantorship Income | 593,599 | 779,518 | 185,919 | 31% |
| Revenue Share Income | 1,542,127 | 1,832,506 | 290,380 | 19% |
| Credit Scoring | 38,136 | 673,097 | 634,960 | 1665% |
| Other RR (Partners, USSD) | 1,128,316 | 719,237 | -409,079 | -36% |
| Total Recurring Revenue | 11,378,620 | 12,919,418 | 1,540,798 | 14% |
| Non-Recurring Revenue | ||||
| LMS & Zoho Customization | 8,188,213 | 15,197,151 | 7,008,938 | 86% |
| AWS Customization | 3,859,800 | 4,736,631 | 876,831 | 23% |
| Total Non-Recurring Revenue | 12,048,013 | 19,933,781 | 7,885,768 | 65% |
| Gross Revenue | 23,426,633 | 32,853,199 | 9,426,566 | 40% |
| Less: Discounts | (10,403) | (329,875) | ||
| Net Revenue | 23,416,230 | 32,523,324 | 9,107,094 | 39% |
| OPEX Line Item | FY 2024 (Full Year) | FY 2025 (Full Year) | Q1 2026 (Actuals) |
|---|---|---|---|
| Salaries & Consultants Wages | 10,095,770 | 14,458,210 | 1,349,448 |
| Statutory Deductions & Insurance | 2,545,943 | 3,142,043 | 781,231 |
| Sales & Marketing | 644,278 | 2,734,595 | 224,039 |
| Office & General Administration | 2,158,820 | 765,791 | 246,140 |
| Interest on Loans | 1,409,302 | 1,388,933 | 29,727 |
| Bank Fees and Charges | 123,347 | 49,909 | 24,190 |
| Other Expenses (Bad Debt, Legal, etc.) | 359,093 | 584,163 | 4,698 |
| Total Operating Expenses | 17,337,554 | 23,123,645 | 2,659,473 |
Below is the current schedule of external lenders and outstanding obligations. To assist the Finance team with cash flow planning, we have isolated the monthly and quarterly recurring payment obligations.
| External Lenders | Principal | Total Balance Due | Rate | Due Date | Monthly Pmt | Quarterly Pmt |
|---|---|---|---|---|---|---|
| Due to KRA (PAYEE & VAT Arrears) | 560,205 | 560,205.00 | 0 | Dec 2026 | 112,041 | - |
| Due to Joslin Ltd | 212,495 | 212,495.00 | 10% p/m | Dec 2026 | 15,250 | - |
| Due to Nirvana Credit Ltd | 357,603 | 426,597.00 | 5% p/m | Dec 2026 | 38,069 | - |
| Due to NCBA Contract Finance (Jan 26) | 1,376,200 | 1,376,200.00 | 19.87% p/a | July 2026 | 22,475 | - |
| Due to NCBA Contract Finance (Feb 26) | 1,672,070 | 1,672,070.00 | 19.87% p/a | Aug 2026 | 28,217 | - |
| Due to NCBA Contract Finance (Mar 26) | 1,100,000 | 1,100,000.00 | 17.06% p/a | June 2026 | 16,468 | - |
| Due to NCBA (Health Insurance IPF) | 1,541,952 | 1,541,952.00 | 6% p/a | Mar 2027 | 162,815 | - |
| Due to Wanaanga Sacco Society | 2,800,810 | 4,986,298.00 | 12% p/m | Mar 2028 | 102,601 | - |
| Due to Fredrick Kimotho & Caleb Mokaya | 7,000,000 | 7,000,000.00 | 14% p/a | Dec 2030 | 261,000 | - |
| Due to Oscar (Andrew's Friend) | 2,340,000 | 2,340,000.00 | 18% p/a | Dec 2028 | - | 110,760 |
| Due to Fredrick Kimotho (Laptop Financing) | 650,000 | 650,000.00 | 20% p/a | Sept 2026 | 61,779 | - |
| Due to Chama ChapChap (System Fraud) | 341,000 | 341,000.00 | 0 | Dec 2026 | - | 113,667 |
| Due to Elite Group (System Fraud) | 268,000 | 268,000.00 | 0 | Dec 2026 | - | 89,333 |
| TOTAL LIABILITIES | 19,611,335 | 21,215,817.00 | 497,936 | 313,760 |
| Line Item | Q1 | Q2 | Q3 | Q4 | FY2026 |
|---|---|---|---|---|---|
| Gross Revenue | 10,200,000 | 20,400,000 | 25,100,000 | 19,300,000 | 75,000,000 |
| Net Revenue | 10,098,000 | 20,196,000 | 24,849,000 | 19,107,000 | 74,250,000 |
| Gross Profit (66%) | 6,664,680 | 13,329,360 | 16,400,340 | 12,610,620 | 49,005,000 |
| Total OPEX | (8,204,533) | (8,519,533) | (8,467,033) | (8,047,033) | (33,238,132) |
| Operating Profit/(Loss) | (1,539,853) | 4,809,827 | 7,933,307 | 4,563,587 | 15,766,868 |
Our combined active pipeline currently stands at KES 92.3M in NRR and KES 2.49M in MRR, providing excellent coverage against our 75M Mandate.
Generated March 24, 2026. Record Count: 22.
| Deal Name | Account Name | Stage | Prob. | MRR (Amt) | Projected NRR |
|---|---|---|---|---|---|
| FY 2026 - Q1 (5 Deals) | |||||
| Nirvana - OD | Nirvana Credit | Implementation | 95% | 100,000 | 100,000 |
| Bayes - ERP Customization | Bayes | Proposal | 75% | 0 | 500,000 |
| Presta - Zoho Voice Proposal | Nirvana Credit | Proposal | 90% | 0 | 150,000 |
| GIMBO ERP OPTIMIZATION | Gimbo Ltd | Qualification | 50% | 10,000 | 600,000 |
| Bungoma Line SACCO | Bungoma Line Sacco | Onboarding | 90% | 50,000 | 500,000 |
| Q1 Subtotals | Ksh 160,000 | Ksh 1,910,000 | |||
| FY 2026 - Q2 (12 Deals) | |||||
| Centrino Tech - CRM & Voice | Centrino Technologies | Proposal | 75% | 50,000 | 1,500,000 |
| Nirvana - HP Implementation | Nirvana Credit | Demo | 20% | 100,000 | 200,000 |
| Mpaya - Okoa Tokens | M-paya | Proposal | 75% | 100,000 | 0 |
| Maersk Sacco - LMS | MAERSK SACCO | Onboarding | 90% | 200,000 | 1,500,000 |
| Power - Sales, Mktg & CS | Power | Demo | 20% | 35,000 | 2,800,000 |
| ICPAK - ERP Optimization | ICPAK | Qualification | 10% | 60,000 | 4,756,000 |
| Cureplus LMS+Zoho | CurePlus | Proposal | 75% | 100,000 | 3,287,440 |
| KSAMUEL - ERP | Unknown Service Ind. | Proposal | 75% | 62,000 | 4,900,000 |
| APF - ZOHO VOICE | APF | Proposal | 75% | 12,750 | 1,020,000 |
| Easy Assets - Call Center | Easy Assets Mgt | Negotiation | 80% | 0 | 300,000 |
| ZOHO E-BOARD PROPOSAL | Tourism Reg. Auth. | Proposal | 75% | 25,000 | 1,500,000 |
| Keton Consulting | Keton Consulting | Proposal | 75% | 62,000 | 4,900,000 |
| Q2 Subtotals | Ksh 806,750 | Ksh 26,743,440 | |||
| FY 2026 - Q3 (3 Deals) | |||||
| Standard Life - LMS | Standard Life | Proposal | 75% | 130,000 | 3,900,000 |
| Topride Driving Sch - Zoho | Topride Driving School | Qualification | 10% | 10,000 | 300,000 |
| Ukaguzi Sacco | Ukaguzi SACCO | Proposal | 50% | 75,000 | 6,980,000 |
| Q3 Subtotals | Ksh 215,000 | Ksh 11,180,000 | |||
| FY 2026 - Q4 (2 Deals) | |||||
| Garda World - ERP | Garda World | Qualification | 10% | 1,275,000 | 50,000,000 |
| Bidii Credit | Bidii Credit | Qualification | 10% | 40,000 | 2,500,000 |
| Q4 Subtotals | Ksh 1,315,000 | Ksh 52,500,000 | |||
| GRAND TOTAL | Ksh 2,496,750 | Ksh 92,333,440 | |||
Our FY2026 OKRs align all departments toward achieving the 75M Mandate. Below is the execution progress tracked per department, led by our core management team.
Contribution: Jointly own the "Whale" pipeline. Tom provides the strategic door-opening; Salome drives the conversion.
Contribution: Architecting the migration from legacy 2.0 to 3.0 to ensure 100% stability. Building the "Solid Team" to execute the architecture.
Contribution: Ensuring the cost of delivery for the 75M target doesn't exceed 40% of revenue through strict resource monitoring.
Contribution: Designing modules that justify anchor fees, providing stellar support, and accelerating "Time-to-Value" for new clients.
Contribution: Fueling Salome’s pipeline with high-intent leads and growing the Z-Team to handle NRR consulting demand.
| Work Stream / Activity | Target Qtr | Progress |
|---|---|---|
| 1. Customer & Loans Onboarding | ||
| Self onboarding, ID verification, Phone verification, Smart ID, Verified Check | Q1 | 0% |
| Digital signatures on Evrotrust (Streamlined & Legally binding) | Q1 | 0% |
| E-guarantorship / E-sign review to support guarantor signing | Q1 | 0% |
| WhatsApp-based onboarding & Mobile-first approach tied to KYC | Q2 | 0% |
| Support common generic forms (e.g., Guarantor amendment forms) | Q2 | 0% |
| 2. Customer Self Service | ||
| Mobile access to member statements (Savings/Shares/Fees) | Q1 | 50% |
| Mobile access to loan statements | Q1 | 50% |
| Savings & Shares trends | Q1 | 40% |
| Ability to initiate early loan settlements | Q1 | 0% |
| 3. Backoffice Support & Security | ||
| Transaction verification (Manual entries against PrestaPay) | Q1 | 60% |
| Continuous hourly reconciliation | Q1 | 50% |
| SACCO Dashboards | Q1 | 50% |
| Reconciliation Alerting | Q1 | 20% |
| Security: MFA requirement, Industry policies, Key events login/reporting | Q2 | 0% |
| AI reconciliation assist | Q2 | 0% |
| CRB & Scoring: Tighter LMS integration, PDF reports, SpinMobile integration | Q2 | 0% |
To successfully execute the 75M Mandate, we must proactively manage our financial and operational risks. Below is a detailed contextual analysis of the primary threats to our FY2026 execution and the specific mitigations in place.
Context: Our budget shows a projected operating loss of KES 1.5M in Q1. This is driven by front-loaded operational expenses (hiring, infrastructure scale-up) required to service the incoming "Whale" pipeline, while the bulk of our NRR closures (KES 26.7M) are slated for Q2.
Mitigation: The Commercial team (Salome) is aggressively accelerating the onboarding of late-stage Q1 deals, specifically Bungoma Line SACCO (KES 500k NRR) and Maersk SACCO (KES 1.5M NRR). We are also strictly enforcing the "Friday Lock" timesheet protocol to ensure no billable hours are lost during this critical quarter.
Context: Our short-term NCBA Contract Financing (Jan, Feb, Mar tranches) all mature between June and August 2026. This creates a concentrated cash outflow requirement right at the end of Q2 and into Q3.
Mitigation: Finance (Ivy) is proactively engaging NCBA to restructure or roll over these facilities into a longer-term instrument, leveraging our strong Q2 projected NRR closures (KES 26.7M) as proof of cash flow capability.
Context: The "Whale Hunt" strategy relies heavily on custom ERP and LMS implementations. If the Tech team cannot onboard 2 Senior Devs per quarter as planned, we risk delaying Q2/Q3 revenue recognition.
Mitigation: CTO (Duggan) has prioritized the 3.0 Bedrock migration and is utilizing Wilfred (Backend Consultant) to absorb immediate overflow. We are also pushing 100% adoption of Zoho One internal tools to streamline client onboarding and reduce manual developer intervention.