Architect John Kithaka began his journey in
business immediately after high school at age 18. A
small farming venture in his rural Kenyan
hometown with US$70 as capital from pocket
money his parents gave him, built his foundation
in business.
Today, at 40, Kithaka is the CEO and
founding member of the Fountain Enterprise
Programme (FEP) Group of Companies.
The group, made up of 18,000 Kenyan shareholders,
has made investments in 14 companies worth $18.3
million in the financial, media, hospitality and
education sectors.
Despite running several
successful ventures while in university and
immediately after graduation, Kithaka established
FEP out of a “burning desire to create a club of
tomorrow’s billionaires”.
Kithaka draws a lot of inspiration from his
profession as an architect, insisting that he never
invests in anything until he has laid a solid and
unshakeable foundation. He also must have a
picture in mind of what the end project will look
like and whether it will be sustainable several
generations down the line.
Speaking to How we
made it in Africa’s Dinfin Mulupi, the charismatic
entrepreneur shared his advice to other
entrepreneurs on how to be a success and maybe
even a billionaire.
Think entrepreneurial: In an era where young
people aspire to be wealthy and live in the fast lane,
Kithaka advised that there is only one way to get
there: through entrepreneurship. “We need people
who don’t think of just being a pilot but also owning
the plane; owning banks not just being bankers; and
owning the hospital instead of becoming just
doctors,” he said.
Do not go it alone: The FEP Group has 18,000
shareholders and expectations of being worth
hundreds of billions (Kenyan shillings) by 2016 when
its businesses mature. Kithaka argued that one of
the biggest mistakes African entrepreneurs do is
“going it alone”, a culture he said needs to change.
“Billionaires never have a business called ‘mine’. Are
you in cooperation with others such that you can get
out and that business will run smoothly?” Kithaka
said entrepreneurs should tap the power of many
and engage positively with each other. “Great minds
don’t compete, great minds pull together,” he added.
Seize opportunities: The world’s most successful
people, whether in business or politics, have made it
because they recognised opportunities only few could
see and turned challenges into breakthroughs.
Kithaka recalled that while he was at university, the
government announced that food prices at the
university cafeteria would be increased. “I knew for
sure, students would not be able to afford the food.
I saw an opportunity glaring. When schools
reopened, I transferred a kiosk I had in Nairobi town
and brought it to the main campus to offer students
alternative food. That was the beginning of my
breakthrough. That was a real opportunity,” he said.
Work smart: “From mathematics I know, no man can
make himself a billionaire by working hard,” said
Kithaka. “It is only by working smart that you get
there. You would need to own companies that make
billions,” he explained.
Everywhere in the world,
Kithaka said, it is the poor who work very hard and
very long hours looking for money in the wrong
places.
Get into business early: Since his passion has
always been in entrepreneurship, when he joined
university, Kithaka had to make a choice between
getting a first class (equivalent to an A) or coming
out rich.
“I was very sure I did not want to be an
employee and therefore I was not keen on getting a
first class. I did business while I was in school,
bought a car and even registered my own
architectural firm two years before graduation,” he
recalled. By the time he graduated, his architectural
firm had a good reputation and work experience and
he was well on his way to establishing the FEP
Group.
Invest in sustainable ideas: According to Kithaka, if
you can’t see your business or wealth 70 years from
now, then there is a problem. “You need wisdom in
what you are doing such that 70 years from now you
will have a solid base. In your mind, you should
make sure that your business will not collapse in
your old age.”
Be committed: It sounds like a cliché but Kithaka
argues that his success was inspired by a vow he
made, and stuck with, before turning 18. In his last
year of high school, Kithaka promised his father that
he would never ask for pocket money again. “It was a
commitment that I would look for my own money.
This was an inner drive. I did business and by the
time I joined university 18 months later, I had three
years worth of school fees,” said Kithaka.
Put your money to work: Kithaka noted
entrepreneurs should go looking for ideas, not
money. According to him, the poor look for money
and take it to the bank where it will be safe, while
the rich see the bank as the place to borrow money.
“People don’t have money problems, they have idea
problems. All you need is an idea and you will go to
the bank and they will give you money,” he added.
Think long-term: When Kithaka started calling
people in 2007 to invest in FEP and gave them an
idea of what the group would achieve by 2016, it was
only those who could see nine years ahead that
invested. “Wisdom goes for visionary people and
visionaries are those people who see [further] than
others can. You either see it or you don’t. A true
investor understands tomorrow,” said Kithaka.
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