Enabling Holistic Quality ECD Services through Mtoto app.

The need for quality ECD centers in the urban slums areas of Nairobi and many global cities is an existing problem and many interventions in the past have failed to find a lasting solution. This has created a vicious cycle where children are changing centers regularly due to lack of quality centers and mothers unable to remain gainfully employed.

Due to current segmentation of the market with no proper guidelines most entrepreneurs in this areas cannot charge more for the services they offer as the quality is deemed low by the parents. The affordability gap also restricts access for those seeking better centers as they cannot afford the service.

We have developed an innovative business model and technology and our aim is to create a replicable model for upgrading slum daycares anywhere, giving improved, standardized and profitable childcare and generating additional value from the network.

The Kenyan government, like some countries in Africa and across the world, provides no free daycare for preschool children. Furthermore there is insufficient policy framework to regulate and set standards in this space. In informal settlements, unskilled women fill this vacuum of care by operating daycare's in their homes to look after neighbors' children, typically without any childcare experience and qualification.

Without proper regulation and skilled caregivers, children below 5 are left to spend their days in undeserving conditions, failing to meet their developmental milestones, lacking stimulation, and access to basic health and nutrition. With over 4,000 such daycare centers in Nairobi alone serving an estimated 175,000 children at any one point the magnitude of the problem is quite immense and trickles down to society as a whole.

Apart from spending this important period with unskilled caregivers in unregulated daycare centers, parents do not have knowledge on how to interact and stimulate the children, magnifying the risk of the children missing critical milestones. These parents do not have stable jobs and have to spend most of their time doing casual jobs with little time left to spare for their children. 

Our key beneficiaries are women and preschool children in slums, the most vulnerable and excluded inhabitants of cities on all variety of socio-economic levels, including from the digital economy. Daycares are used by women in the vulnerable years after becoming a mother, when their ability to hold down a job is deeply impacted by the demands of being their child's primary caregiver. The mother-clients our daycares typically come from households that earn anywhere from $50-250 USD a month, who spend no more than $25 on childcare per month and therefore cannot afford the $50 minimum spend required for a 'house girl/helper' to stay at home with their children. While mobile penetration is increasing, 50% do not own a smartphone and most do not use mobile money due to relatively high transaction fees. Their children have the worst health indicators in the country, with 12 % higher mortality rates than children in affluent urban / rural areas. Stunting, the result of chronic undernourishment is high, up to 47% vs 20% national average. Daycare owners are typically jobless and under skilled; daycare is a default livelihood pursuit not a vocation, for which they earn little, and receive no support.

Tiny Totos stands out as incredibly unique in the childcare/early education space traditionally dominated by NGOs and research entities. Our social enterprise approach and reliance on innovation technology to improve knowledge dissemination and standardisation of service in the fragmented informal daycare economy is geared so that value is increased for all.

 NGO players tend to assume that in order to upgrade childcare services, one must upgrade childcare knowledge alone, while failing to address business and institutional sustainability of daycares on which improved care depends first. We treat daycares not as beneficiaries, but as businesses. We recognize that however poor, daycare provision is high both parents and children need it. We assume parents would pay more if service was better, giving more returns to owners, and investment in better care of children. We believe in market transformation through social entrepreneurship and technology, not charity.

Our strategy of developing a scalable and replicable network of safe, profitable, stimulating slum daycares that unlock working women's earning potential and the growth potential of children under 5s is achieved through a thoughtful, incentives-based intervention model that provides locally-market based incentives for owners to partner with us to upgrade and sustain improved quality daycares without creating dependency. After 4 years of trialling and refining our intervention model we worked for 3 months in early 2019 with an EY operations consultant to unpick and define the building blocks of our intervention model that help underskilled female micro-entrepreneurs in slums transform their businesses and themselves. We have developed a business manual for our daycare franchise approach, which clarifies step by step, month by month, the type and degree of support we need to provide partner daycares in order to continuously grow business and ECD knowledge and expand our network without sacrificing quality. Our phone-based app is a critical tool in this process, without which we could not generate opportunities for additional value and network cost recovery. The app functions as a business and reference tool for managers and parents alike, and a virtual team field management system for our staff. By reinforcing the client social network and collating data across our growing partnership base, it generates opportunities for revenues from sales, marketing, data services, analytics and research to support network scale.

Nairobi like major urban cities in Africa is growing rapidly due to rural to urban migration and the disintegration of the extended family unit. 60% of Nairobi’s urban population live in slums of which 50% of this are children.

The provision of quality ECD centres has been a challenge and as earlier described previous project based interventions have only further defragmented and distorted the market. Tiny Totos Kenya understood very early the only way to create quality centres is to work around the current sub economies to improve the quality of service which gave birth to a quasi–franchise model that works to provide accelerator support to the businesses. This model is continually being refined and has proven its viability specifically as it allows the daycare “mama – entrepreneurs” run their own business by being responsible for the day to day operations.

This model not utilised anywhere else has removed dependency on handouts, allowed businesses to thrive in their current micro-economy, and empowered the entrepreneur to run sustainable businesses. By not changing the current economic dynamics mothers have shown a willingness access quality centres and the children outcomes have also being achieved through better nutrition and education which is improving the 5 domains of early childhood development.

The nature of the daycares is clearly becoming a hub where the Mother-Child economy revolves around and we have added and continue to added opportunities for products and services geared towards better health, a clean environment and energy efficiency.

1. Business Process: Since its start, Tiny Totos kenya has tested a few models in the best way to delivery quality ECD centres in low income areas. Currently the model drives improved in centres in 5 major areas that include, Health, Nutrition, Education, Hygiene, and Entrepreneurship. This quasi-franchise model has proven to be successful and allows the access of improved centres in low income areas with improved outcomes.The model has the potential to grow by plugging-in additional services and products. The community served are majority un-banked and have managed provide access to health and environmental products through product financing. The The model has proven sustainable and can be easily replicated in other markets. This

2. Technology: The technology innovation sweeping Kenya has left working women living in poverty in slums and lower income communities behind. They cannot afford smartphones, they cannot afford mobile money transactions, technology benefits elude them - survival is all that matters. Working mothers with young children suffer most as the childcare burden falls most heavily on them; they rely on squalid care, children fall sick, costing money, and forcing them to leave work. By elevating informal daycare, networking the market and building a technology platform to enhance service and knowledge, we are unlocking potential of society's most marginalized.

The Tiny Totos model addresses the issue of access, affordability, quality, sustainability, and holistic care through its model. The model, the only one of it's kind, ensures the quality through imparting of skills to the entrepreneurs with training in nutrition, hygiene, early childhood education, and business fundamentals.

Children Health outcomes are also improving due to improved nutrition and monitoring. We are able to identify health issues and address them promptly leading to quick intervention and overall improvements.

Developmental milestones have also improved we a recent survey using The CREDI showing over 80% of the children in out daycares are meeting there developmental milestones.Recent transitions to schooling are also showing better social emotional skills, improved cognitive skills and language skills.

Financial outcomes for the business owners are a key driver to their suitability. Our model has seen income grow 4 times and profits grow 3 times. The highest is currently making USD 1300/month from an average of USD 300/month two years ago.

The tenures of out networks is also an indicator of our success which as over 70% of enrolled centers remain in the network with majority of the drop offs leaving due to circumstances beyond their control such relocation or employment.

Setting minimum standards in the centers ensures quality across all areas of intervention are maintained. This model has proven to be successful and is currently being refined to allow easy replication in other areas and countries.

Current Numbers;

1. Daycares in the network - 55
2. Children serviced -5,500.
3. Parents Trained - 2,500
4. Meals Sold - 94,000.
5. Women Trained in ECD - 3,000.
6. Total reach - 20,000
7. Countries Served 1.

One Year Numbers;

1. Daycares in the network - 100
2. Children serviced - 10,000
3. Parents Trained - 7,000
4. Meals Sold - 150,000.
5. Women Trained in ECD - 6,000.
6. Total reach - 35,000
7. Countries Served 2

5 Year Numbers;

1. Daycares in the network - 400
2. Children serviced -40,000
3. Parents Trained - 30,000
4. Meals Sold - 500,000.
5. Women Trained in ECD - 12,000.
6. Total reach - 80,000
7. Countries Served 3

Given that so many futures depend on accessible, reliable, standard-setting and affordable childcare to unlock the earning potential of working women and future individual potential of preschool children, the relative dearth of investment in the sector is primarily due to the lack of evidence-based models with practical, proven and sustainable solutions for transforming this much neglected sector. Yet growing interest in supporting improved ECD for the poor is growing. Consolidating and replicating our market-based model will prove catalytic in unlocking capital that is actively seeking new solutions to support improved childcare and enhanced economic opportunities for BOP communities. We measure success through a variety of metrics: - business indicators - stakeholder engagement (e.g use of app, text responses, attendance at meetings) - parental attitudes and behaviour - child health and well being Our top goals are to 1.Consolidate 2. Replicate 3.Market our model to generate additional partnerships, value and returns that promote network sustainability.

• Government Policy - The Kenyan government changed to a devolved structure where many of the services previously being offered by the national government have now come down to the county Government. Early Childhood Education is one of this services which did not have any policy in place. This as been seen when it comes to licensing and Tiny Totos Kenya has been working with the County Government towards better regulation and policy.
• Technology Penetration – Kenya has one of the highest mobile phone penetration 91% and also smartphone usage. This is however not the reality of the in the slums are smartphone usage lags.  This gap in use of smartphones although not a major hindrance might delay the use of technologies we have developed and associated services.
• The Economy – Children expenditure is the mothers of the children are gainfully employed. The current economy even though stable most mother-client to not have stable work meaning they lack the ability to provide for their families or access quality centres.
• Lack of Data/Research – The informal daycare space is Kenya has not been actively engaged formally by any organisation which means not data has been collected in this area. This was an issue for Tiny totos Kenya and any new entrant has experienced the same. This has critical as it is required to inform business, the county and national government policy and other interested stakeholders.

Government – The devolved form of government has created challenges around policy, legislation and guidelines in the early childhood care space and other associated agencies. Tiny Totos has been in contact with the County Government in addressing some of the hurdles being faced by Tiny Totos and also by owner managers to find ways to improve current standards or ways on working around this. A few organisations have also been spearheading collaboration in this space like Uthabiti.

Technology use is a big part is what we do allowing scale, accurate collection of data and enabling daycare partners understand their businesses better. Owner managers can input all the business data and instantly see and compare performance providing access to an analytical app platform creating instant insights for their businesses, and gives them opportunities for self-analysis and growth.

The economy is largely a factor outside our control but a recent study as highlighted has shown employability of mothers in the sector increased by 8.5% through the access of daycares. We aim to increase employability and will start partnering with large employers on how best to bring daycare services closer to the workplace to improve attendance.

Data availability and Research – The availability of tools and systems to capture data will greatly and is currently having an improved impact on the services we can offer. In addition to internal availability of data, this will allow us collaborate with research organisation from diverse fields such as population, Health, FMCG etc.

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TTK staff

13 staff working full time responsible for key areas of the business. They include the CEO and founder, a CFO, a COO , a KM manager, ECD Specialist, ECD manager, Data officer, a Business and literacy coach and 4 field staff.

Casual staff

9 Community Health Volunteers who assist the field staff on the ground.

Contractors

1. Skyline design have team of 9 members working to develop, deploy and main the mobile and web platforms.

2. Bastion consulting assisting in the refinement of our loans business and framework.

3. Delco Systems who assist in maintaining our technology infrastructure.

Tiny Totos is based in Nairobi, Kenya. We have a back office in Westlands and a small field office in Buru Buru; our current remit is focused entirely on Nairobi and our team of 15 plus 9 part time is drawn entirely from Nairobi, with only one non-Kenyan (Emma) in the team. We are uniquely positioned to deliver on our mission, as we have assembled an incredibly strong and experienced team of individuals to serve in our staff and Board teams with a variety of skills set that collectively enhance our innovation goals and position us for success. Briefly: Team: This includes Emma Caddy (MBA, 20 years' development / impact investment experience globally with 10+ in Africa, expert SME judge for World Bank, Sankalp, others); Joseph Walumbe CFO with background in banking and Microfinance; Moleen Ute COO; extensive experience with Field Operations gained at Bridges International Academies, where she helped roll out schools in Uganda; John Makau, Technology & Systems Manager with graduate degree in business analytics and work experience in technology and EY; Martina Adega, Field Coordinator, a trained nutritionist with multi-year experience at USAID. Board: Includes Biju Mohandas, Head IFC Sub Saharan Africa Health & Education; Robin Bidwell, CBE founder of ERM the global consultancy who scaled the company from 3 employees to 40,000 in 140 countries; Mary Ann Musangi, CEO Haco Industries, a Kenyan-based FMCG company with background in marketing at Coca Cola; Stephanie Draper, representative from the Draper Richard Kaplan Foundation, one of our funders.

Skyline Design. Skyline is our technology partner whose founder was named one of Africa 30 under 30 on Forbes technology list. The organisations houses one of the most experienced technology talent in the local market. They are assisting us in the development of the mobile and web application. They are not only a contractor but also a technology partner.

Soy Afric is a manufacturer of fortified porridge and other enriched food stuffs that will be distributed in our daycare network as part of the health nutrition initiative. Offering meals at the daycares offers an opportunity to positively impact good nutrition improving associated health outcomes.

Whitten and Roy are a global consultancy focused on provided services to organizations who’s with impact. They are working with us to help refine the Tiny Totos Kenya Brand specifically in sales and marketing. 

Africa Early Childhood Network. To champion excellence and collaboration in protecting children's rights, influence policy and practice, strengthen partnerships and share experiences and knowledge in ECD.

Our Model creates value and synergy across the ECD market. Tiny Totos works with entrepreneurs, mothers, children, and the private sector to build a self-sustaining daycare market that  government and society also benefit from.

Entrepreneurs: Our partners serve more children and run better businesses. They attract more clients and profits, client base and influence grow. Collectively, they create a network to generate value and meet costs of scale.

Children: Our daycare partners nurture children’s  health, nutrition
and development, to help them overcome health and developmental poverty limitations

Working Mothers: Our network of daycares allows women to attend work regularly without the stress of irregular or poor daycare service. In addition to this they also get access to information on best child care practices to build their capacities as parents.

Technology Innovation: Technology helps us manage data and track important parameters such as partner revenue, client payment history, run incentives schemes, assess potential daycares and monitor the performance of daycares in  our network.

Private Sector: Employees with consistent and quality daycare provide a more stable labor force.The growing network provides an innovative distribution BOP channel for market research, marketing and sales.

State & Society: Benefits from the 13% /year return on investment which 
high-quality ECD programs for marginalized children deliver to society – at the cost of lending its support. 

Network benefits: Daycares grow individually and collectively; fragmented client networks consolidate to enjoy peer learning and cost benefits 
of economies of scale.

We have raised $1.5m to date, with core operating capital secured to 2021. We are registered as a company limited by guarantee, allowing us to generate returns from financing and sales of products that benefit the health of women and children provided profits are reinvested in the business not used for personal gain. We are exploring a new structure to allow for impact equity investment. We currently make money from loans and membership. We intend to make money from direct sales to the network, marketing contracts, data and research on our BoP customer base, licensing / advertising through our mobile app, CSR and HR support services. 95% of our costs are currently met from grant; 5% from membership fee and returns from loans. As we diversify and scale our revenue-generating activities, we will breakeven by 2022, provided we secure additional an infusion of $500,000 grant / impact capital.

Solve MIT offers an opportunity to greatly advance our work locally and globally. Our model, combining of an innovative business process and technology means we are at the point where the next steps will determine the future direction of the organisation by being able to overcome challenges and and also the ability take on opportunities to refine our model. 

This application means we can learn from growing and established organisations in relation to business, health, technology, innovation, nutrition and research to further our mission in delivering quality care to the less undeserved in the urban slums.

The global network that solve provides also opens the opportunity to partner with other organisations in the Mother-child economy and explore ideas. The funding available will also allow the capacity to add on more resources for oncoming scale plans.

Organisational capabilities will also be of value as we continue to refine our model and taking on additional knowledge is welcome.

Education.

Health Care

Early Childhood Development

MIT Early Childhood Cognition lab.

Technology Impact Innovators.

Health and Population Researchers.

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The model discussed provides an opportunity to impact two generations ( 2-Gen Approach) where while the focus is on the child, the mother and her household can also be impacted.

The work we do stretches across many domains from, culture, diversity, and social services. Majority of the women in this communities are un-banked and do not have access to any credit as they lack tangible assets. Our interaction with the parents in the communities has opened up an opportunity to built a trust network and resulted in piloting of a product financing program.This allows the majority women owners to access credit to improve their centers.

This has also been extended to the parents where they can through installments get access to health and environmental products. The current default rate is below 5% lower than the industry stand.

In addition to access to credit, the parents and specifically women are provided with training around, good parent skills such as nutrition,hygiene,first aid and plan to expand the array of products and services available. 

Tiny Totos Kenya has worked to define the type of data it requires to collect which enables the organisations understand the network. This data started off being collected on paper and is slowing going online through the mobile app developed. 

This data will be captured directly on the a mobile device or web portal and then aggregated to provide quick summary insights on the individual daycare and network of daycares offering quick insights at hand.

The data collected includes demographic information and activity of the children similar to a school setting where attendance, payments, and meals are recorded. This information is stored securely on cloud platforms and backed up on regular basis. The nature of information requires privacy and confidentiality is maintained to ensure that information is secure and not misused.

The data is opening new opportunities to apply new technologies such as machine learning and AI in the near future we we work to expand the capabilities of our systems and model.

The vision and purpose of Tiny Totos Kenya remains to provide quality care and the data collection, maintenance and use is geared towards this goal. This means that any data use, sharing or collaboration does not infringe on the rights of the parents, children,daycare owners, internal and external staff or any government regulations on distribution and access of data.