Showing posts with label startups in kenya. Show all posts
Showing posts with label startups in kenya. Show all posts
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ENTREPRENEURS WATCH: Animator and creator of faiba advert ,michael muthiga CEO OF Fat Boy animations

Growing up in Nairobi, Kenya, Michael Muthiga
loved watching cartoons and was curious about how
his favourite shows were made. Without access to
the internet, he had limited information about
animation and it was only once he was in high
school that his art teacher introduced him to
illustration and 3D animations.

“It is something that has been in my blood
throughout. I tried to venture into engineering but
the animation just wouldn’t go. [Eventually] I
stopped fighting. It has always been an easy thing
for me to do,” says Muthiga.
After high school Muthiga could not afford to attend
the few colleges that offered animation courses, but
“I wasn’t going to let that stop me”, says the self
taught animator.

Muthiga began taking free online tutorials and later
joined the production team of Tinga Tinga Tales , a
children’s cartoon series based on African folk tales,
where he honed his skills.
“That is where I learnt how to handle workload; I
worked late into the night,” says Muthiga. When the
production of Tinga Tinga Tales came to an end three
years ago, Muthiga decided to start his own
business, which he named FatBoy Animations.

“I noticed there was a gap in the advertising
industry. I wanted to change the way advertisements
and commercials are made,” says the 26-year-old.
He uploaded one of his works to YouTube which
caught the attention of corporate brands and
advertising agencies.

A Kenyan telecommunications company was
impressed by his work and asked him to produce an
animated advertisement.
“I did not have to pitch and convince anyone. I
worked really hard on my first animation… it got a
lot of viewership and went viral. Then clients started
calling.”

Since then, Muthiga says, work has been flowing in
and the company has managed to enter into long-
term contracts with clients. FatBoy Animations has
since produced animated commercials for brands
such as Safaricom, Telkom Orange, Barclays Bank and
Jamii Telecommunications (JTL).
Muthiga’s best known work to date is the JTL
advertisement, known locally as Faiba, which
promoted the firm’s terrestrial fibre optic offering.

The success of this advertisement prompted JTL to
commission a series of the popular adverts.
Muthiga’s animated productions have proved quite
popular among Kenyan television audiences and
social media users.
FatBoy Animations handles between four and six
projects a month and Muthiga charges a minimum of
KSh 2m (US$22,800) for a 30 second production.

According to Muthiga, his productions have been
successful because of the creativity and unique
stories behind the animations.
Muthiga does not expect the concept to become
boring as more corporate brands shift to animated
commercials.

“It will become boring when life stops. It is not just
about the animation, it is more about the story.
There will always be new stories, things that happen
around us. There will always be something new,” he
says.
FatBoy Animations employs three people in Nairobi
and outsources specific services such as rendering,
modelling and character creation to agencies in India
and the US. According to Muthiga, finding local
talent is difficult.

“The labour is not available locally. There are a lot of
guys who can do animation, but there are standards
which we have to maintain.”
Constant power blackouts also pose a challenge to
his business.
Animation in Africa
According to Muthiga, the animation industry in
Africa is nascent and holds numerous opportunities.

“Corporate are just realising that animation can work
for them. There are still many areas such as the
medical field, education sector and architecture and
construction. All these guys are realising that
animation can work for them.

There is so much to be
done.
“The market has really opened up. Clients that are
calling now are not just from Kenya but from across
East Africa and as far as the US, Canada, India and
even China. It is the stories that captivate clients.
This is an industry worth watching.”
Muthiga encourages aspiring entrepreneurs to invest
in the “right field which they have a passion for”.

“Everyone has a talent and a gift which they are
really good at. That is the thing that should fuel
their entrepreneurial drive,” he says. “If you work to
solve a problem and not to make money then you
will succeed and the money will follow.”
Muthiga, who started his business at the age of 23,
advises young people to embrace the skills,
knowledge and experience that come with
employment.

“The passion needs to be developed. That eight to
five job is very necessary,” he says.
Muthiga says that while working on Tinga Tinga Tales
he arrived at the office at 6am and left at 9pm, for a
whole year, even though he was only required to
work eight hours a day. Working long hours taught
him how to handle huge workloads and deliver on
time.

“I wasn’t the highest paid person in the company
but I was learning something and I really loved it.”
Moving forward, Muthiga would like to break into the
animated series and feature films market.“I don’t
want to only compete in Africa with Nigerian movies.
I want to compete with US, Indian and UK animated
series and feature films. I want to go worldwide.”

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ENTREPRENEURS WATCH: the success of AL IS ON production of the hit series Mali and SHUGA


Alison Ngibuini got the kick to venture into
business after her employer moved offices. After
eight years working for some of Kenya’s leading
advertising agencies, Ngibuini had acquired
immense experience on how brands are created,
positioned and sold to customers. She never
thought about entrepreneurship until the company
she was working for shifted offices from the city to
an out-of-town location.

Ngibuini told How we made it in Africa that had she
opted to keep her job, she would have had to wake
up very early in the morning to beat Nairobi’s
infamous traffic.

“That was my wake -up call. I told my boss: ‘I am
quitting’. I had had enough. When you are employed
you can’t make decisions for yourself; the boss
moves, you have to move with him. The decision to
move was not consultative, everybody was
disgruntled but people chose to adjust. I refused to
conform and adjust. It was time for me to step out.”

Ngibuini then started her own production company,
Al Is On Production.
“I only had a computer, a pen and a mobile phone. I
began working from home.”

Al Is On Production is involved in the production and
creation of television dramas, documentaries, game
shows, commercials and feature films. The firm is
renowned in East Africa for having created award-
winning shows which have aired across the region.

Starting out as an independent producer, Ngibuini
learnt the ropes from production houses she had
worked with in the past. One of her early mentors
was Bharat Thakrar, founder and CEO of East Africa’s
largest marketing services firm Scangroup, which is
listed on the Nairobi Securities Exchange.

“Bharat was actually quite instrumental. He found a
way of engineering things such that every still
production job was done and organised by me. I had
a shoot every day. He gave me one of my first
commercials for Fanta,” said Ngibuini. “Whenever I
meet Bharat I remind him that he started me off and
I am following in his steps. I hope one day I can get
a listing of my own business in the stock market.”

Ngibuini’s initial struggle was to fight control of the
industry by European-owned companies.
“Most of the creative directors were European so they
gave the work to other Europeans. For us guys, being
black, starting off in the industry was a bit tougher
but you make your mark and build relationships,”
she said.

As business picked up, Ngibuini hired an accountant
and a secretary. Her team has since expanded to 17
full-time staff. During production, the company hires
between 70 -100 people.
Over the years, Ngibuini, who has been recognised
twice as one of Kenya’s ‘Top 40 Under 40’ successful
career women, has expanded her business portfolio
to combat the effects of increasing competition in
the industry. In 2005, after years of focusing on
commercials, Al Is On Production ventured into TV
production.

Diversified business

“I realised I needed to diversify my business. I
couldn’t just sit and chase for the same amount of
work as everybody else. I went to the UK and I saw
this show called University Challenge,” said
Ngibuini. “One day I got connected with the people
who make the show and they were actually looking at
Africa as a prospective place to do the show. We got
into a partnership and it was fantastic. I got a
chance to make a fully fledged game show. That was
my first step into television.”

The Zain Africa Challenge aired in Kenya, Uganda,
Tanzania , Rwanda, Zambia, Malawi , Nigeria , Ghana ,
and Sierra Leone for five years.
After the university challenge, Al Is On Production
began creating public education and awareness
campaigns. A Kenyan production titled Siri
addressed issues around HIV and AIDS. Soap operas
Mali and Shuga have been screened in several
countries outside Kenya.

Ngibuni’s approach has been to make quality
content that appeals to pan-African and international
audiences.
“It’s been a tough journey. But I am happy to say I
am the first producer [in Kenya] to do a full multi-
cam studio. M-Net have come into the market and
revamped the studios.”

Ngibuini said her company has been successful
because she looks beyond telling a good story.
“It is not just about telling a great story. It has to
be economically viable. Can the show be syndicated?
Does that story appeal beyond Kenya? I am not in
the showbiz world. I am running a business. People
see the glamour, but for me this is a business and
at the end of the day it must generate income.”

One of the major challenges Al Is On Production
faces is increasing competition in the industry.
“I am filming commercials for much less than I did,
say five years ago. The market has shifted. It has
become a lot more difficult to justify a TV
commercial. The budgets are not what they used to
be. What I quote, there is someone else willing to
undercut that price. It is getting leaner [and]
meaner.”

This has inspired Ngibuini to explore ways to evolve
the company and stay relevant in the market.
“It keeps me on my toes on how to remain
competitive. It has made me reinvent my company
and diversify into other things so that we don’t
plateau and stagnate.”

Although it is “still a man’s world”, Ngibuini says she
is “willing to navigate the space”.
“I feel there is great opportunity. I would like to
leave a giant footprint for young girls to know that
they can achieve anything. The only real obstacles
are the ones you create in your mind.”

Moving forward, Ngibuini would like to double her
firm’s turnover.
“I cannot do that by sticking to what I do all the
time. I want to go into new ventures, diversify and
add new portfolios to what I already have. I love
telling stories, but TV financing is always an issues. I
want to get my company to a place where we can
self-finance products and reap the benefits of it.”

Working together
As Kenya and other African countries gear up for
digital migration, Ngibuini is positive this will open
opportunities for existing and new players in film
production.
She argued that for Africa to develop, the continent
ought to stop looking inward and start looking
outwards.

“We need to move away from our own self-serving
interests. Africa needs to negotiate as a block, as
opposed to each country pushing for its own
individual interest. We should open up our space.
Why is it cheaper for me to travel to London than it
is to go to Nigeria? We should stick together.”

Ngibuini advised other entrepreneurs to maintain
good relations and have a mentor to guide them on
their journey.
“We are all something, but none of us is everything.
Be a good listener because you don’t know
everything.”

Ngibuini, who is in the process of completing her
MBA, added that entrepreneurs need to reinvent and
improve themselves.
“Don’t be static. I always ask myself: what is my
market worth?”
As difficult as entrepreneurship is, Ngibuini noted
that aspiring business people should learn to
overcome their fears and pursue their dreams.

“You also need to be tenacious, resilient and patient
and do serious networking. When you fall, get up,
dust yourself off and keep going. Your drive will
determine how far you can go. You also need to be
money smart.”

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ENTREPRENEURS WATCH: the success of the property portal buyrentkenya.com


Kenya’s property market has witnessed a boom in
the last five years, riding on a growing middle class
and continued interest in the country among
investors. However, finding property for rent or
sale has not always been an easy task.

Kenyan-born entrepreneur Jamie Pujara identified
this gap in the market and established Buy Rent
Kenya, a real estate portal.
“I noticed there is a need in the market. I don’t
know if you have been apartment searching; it’s
quite difficult in Kenya. You can’t get the
information you need. I wanted to create a space
where we could put all agents and developers’
properties online.”

The site offers listings for residential and commercial
properties from accredited and compliant agents and
brokerages. Agents and developers showcase their
properties on the platform with photographs and
short description about the location, price and
particular features.
Since its launch in May 2012, Pujara says the
business has been going “really well” due to Kenya’s
high internet penetration and unmet demand for
property .

“Property is something that interests everybody, from
the fresh graduate to the 70-year-old who is still
investing. We are now the biggest site in terms of
property listings, the agents signed on and user
base.”

Buy Rent Kenya charges agents and developers a
subscription fee for membership. The agents and
developers can either pay KSh 6,500 (US$74) per
month for silver membership which allows them to
make 15 listings or pay KSh 9,500 ($108) for gold
membership and enjoy unlimited listings.

“Our job is to provide leads; the agent’s job is to
make the sale. We don’t think the service is
expensive. The cost per lead is much cheaper and
agents get access to the diaspora market where a lot
of real estate funding in this country comes from. It
is worthwhile,” says Pujara.

In its efforts to “get rid of all the conmen”, Buy Rent
Kenya insists on working with legitimate agents and
developers only. Due to this, most of the properties
listed on the site are on the higher side of the
market locking out potential buyers in the lower-end
segment.

“We can only list properties that are legitimate. I
don’t want to put up property online that I am not
sure if the source is genuine. Unfortunately, that
jacks the price up a little bit. In the eventuality that
we have a more structured housing market in Kenya
we will incorporate more [affordable housing].”

For Buy Rent Kenya, the biggest challenge is getting
its clients to understand how they can maximise the
potential of the online property portal.
“If you have an online platform and you can put up
20 photos, why put one? If you can write a
description of two paragraphs about the property,
why write two lines? If you want sell your house,
make it look like a house you want to sell.”

The online property market is set for stiff
competition following the recent entry of Vamido,
funded by Berlin-based Rocket Internet, and
Property24, which in turn is owned by South African
multinational media company Naspers. Kenya’s
Nation Media Group also recently launched its own
real estate site, N-soko Property.

“Big competition tells you the market is big, it’s got
a lot of potential and that this is a service the
market needs. How are we going to cope? One, we
are a Kenyan company. We want to identify ourselves
as the Kenyan brand. Two, we have a head start; a
first mover advantage.”

Pujara is not worried about the competition these
multinationals have brought to the market.
“Competition is good. I think we got too complacent
towards the end of last year when we officially
became the biggest property portal. The growing
competition has given us a chance to refocus.”

Online opportunities
According to Pujara, the growing internet penetration
across Africa offers a unique opportunity to
entrepreneurs to start online businesses.
“If you can find an online solution, then Africa is the
place to be,” he says.

The entrepreneur, who also runs a high-end Chinese
restaurant started by his grandfather 35 years ago,
says one of the lessons he has learnt in
entrepreneurship is making sacrifices and putting
long hours of work and commitment into his
ventures.

“I juggle two businesses and towards the end of the
year as I said, we were getting complacent on one. I
realised I have to work double the time to make sure
they are both successful.”
Have a plan
Pujara advises entrepreneurs to have a clear
business plan and set targets.

“You need to be able to measure against what you
have set out to do That will always give you an
indication of whether or not you are on the right
track,” he says. “I think it is very important to have a
plan and to keep referring back to it. When you start
something new it is very easy to get sidetracked.”

He says it is important to keep things simple and be
willing to keep trying even when one fails.
“You are always going to fail [but] you have to keep
trying. There are a million and one roadblocks. You
have to believe in your idea. You can’t hire people to
follow your dream. You have to go on the ground and
do it yourself.”

Pujara says he is optimistic about the potential of
the market, adding that he plans to expand the
business beyond Kenya.
“We want to consolidate the Kenyan market and then
branch it out. We want to have Buy Rent in Kenya,
Uganda , Tanzania , Rwanda, Zambia, Somalia, South
Sudan and other markets in Africa. This is a long-
term goal for us. It is going to grow really big.”

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ENTREPRENEURS WATCH: ‘I want to be in the oil and gas game,’ says Kenya’s Gina Din-Kariuki


“I want to be part of the energy story in Kenya,”
says Gina Din-Kariuki, a Kenyan entrepreneur and
public relations (PR) guru. Sixteen years ago she
quit her job as head of corporate affairs at
Barclays Bank Kenya and, having built a name for
herself, plunged into business to create Gina Din
Corporate Communications (GDCC).

The firm is one of Kenya’s most successful PR firms
and has handled large corporate clients in various
sectors, including telecommunications, banking ,
hospitality and air travel.

GDCC handled the Safaricom account when the
telecom operator launched in Kenya and went on to
represent the firm for many years. Din-Kariuki told
How we made it in Africa that she watched first
hand as the industry evolved and became one of
Kenya’s success stories. With the discovery of oil and
gas in the East African country, Din-Kariuki wants to
do more than just watch.

“It was interesting… but I didn’t get into the whole
telecommunications space as a businesswoman. I
watched it grow. So this time energy came in and I
thought: ‘This is exciting but I don’t want to sit and
watch. I want to be in the game.’”

Din-Kariuki is now the local shareholder of CAMAC
Energy, a US-based New York Stock Exchange-listed
company involved in the exploration, development
and production of oil and gas .
“We are going to be exploring for oil in this region.
So one of these days you will see me with a hard
hat.”

Her entry into the energy sector makes Din-Kariuki
one of very few women in Africa to actively invest in
the energy sector.
“Maybe I will bring a little bit of glamour to the oil
industry,” she says with a chuckle.
But beyond bringing glamour, Din-Kariuki hopes to
influence policies that will see Kenyans benefit from
the country’s resources. This is also a serious long-
term investment for her.

“I always say to God, ‘you must have sent this to me
to make sure that I learn how to be patient’ because
I am not patient. PR is lots of deadline and also you
get instant results. What I have learnt in this energy
industry for a year and a half [is that] it’s teaching
me patience. It really is. It’s so slow. It’s a very
long-term investment.”

Oil exploration is also an uncertain investment. “Life
is a gamble. I am very excited by the prospects of
energy in this country. I am very encouraged by the
way the government is handling the whole process.
And you know what? I don’t want to sit on the
sidelines. You are either watching the game or
playing the game. I want to play it.”
African entrepreneurs
Din-Kariuki describes herself as resilient and strong.

She is not scared of taking risks; neither does she
jump ship when the going gets tough. In fact, she
believes difficult times come just before the “next
leap of success”.
“Every time I have wanted to quit and there have
been a few [times] it’s at that point that [I was at]
the very verge of greatness… that moment after is
when it’s your next leap of success. It’s really
interesting,” she says. “What I would say to people
starting their businesses now is hang in there. The
journey of an entrepreneur is never straight. There
are… potholes on the way but we have to stay in
there for the long haul.”

She says although doing business in Africa is
challenging with the continent facing “infrastructural
challenges” and “pockets of instability”, she admires
the resilience of African entrepreneurs. These
entrepreneurs, she says, will bring the “Africa Rising”
narrative to fruition.

“I think there is something about entrepreneurs in
Africa. We are the ones who are going to make Africa
rise. If you look at entrepreneurs in Africa and you
look at entrepreneurs elsewhere in the world, the
ones in Africa have gone through so much to get
them where they are.

“Many started out in very humble circumstances,
some haven’t been to school… so when you compare
that to a Bill Gates or a Steve Jobs, I kind of tend to
think, ‘wow to the African entrepreneur’, because
they have gone through so much more. It’s this
spirit to succeed; it’s the sprit to break the cycle.

It’s a spirit to make sure that the generations below
us don’t have to go through what we went through.
Because the beginnings have been so difficult that
we have no choice; if we don’t do it then who? If not
now, when?”
Din-Kariuki would like to see more people, especially
the African youth, go into entrepreneurship.

“There are not going to be many jobs for everybody.
We need to create these jobs. I think we have no
choice but to encourage youth entrepreneurship and
a lot of the work that I am doing with the youth
right now is a long those lines.”
But, she warns, entrepreneurship is not suited to
everyone.

“I think it’s not for the faint hearted; you have to be
internally very strong because you take a lot of hits
along the way, a lot of failure and… some people just
can’t handle failure. Some people are too sensitive
to be entrepreneurs. You have to be very thick
skinned to be an entrepreneur.

Every single day I
wake up… there is a new challenge. There will never
be a point when there is not going to be a challenge
and I am [always] ready for that,” she says.
GDCC’s future business
Even as she casts her sights on Kenya’s oil and gas
industry, Din-Kariuki is still involved in her PR
business.

GDCC is currently rebranding and is expected to
launch across Africa to meet what she describes as a
“need for an African PR brand”.
“We need to be ready to serve our clients for the
next 16 [years] and on, but with new tools. What we
are coming up with… is a product that is going to
serve Africa, not just Kenya,” she says of the
rebranding process.

Over the last 16 years, Kenya’s PR market has
evolved, with more local and international firms
entering the market. However, this is not a cause for
worry for the GDCC boss.
“It’s exciting. The pressure is on to be the very best
in what we do. Yes, there is a lot more competition
but I think that is quite exciting.

The market is
much bigger. There is a whole SME market now that
is looking at PR. That was never there before. So we
are not really all fighting over the same clients
because the base is much wider.”
Din-Kariuki describes PR as one of her passions.

“I call myself a ‘creative disruptor’. I am never happy
with the status quo. I always want to take the
brands that I handle from mediocrity to
magnificence. I get so much pleasure and joy out of
that.”

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NEWS BYTE: Dubai-style property developments arrive in Kenya

Nairobi’s skyline is changing, propelled by
multinationals setting up regional offices and a
growing demand for high-end housing. Le’ Mac, is a
proposed 22 storey tower, featuring both
residential and commercial components. The Dubai-
styled project is being developed by a local firm,
Mark Properties, and will cost an estimated US
$41.5 million upon completion in 2015. Ravi Vasta,
managing director of Mark Properties, told How we
made it in Africa’s Dinfin Mulupi how an influx of
expatriates and diplomats is spurring demand for
unique real estate projects in Nairobi and his
ambition to develop the tallest building in East
Africa.

What inspired you to develop Le’ Mac?

We wanted something new for Kenya and unique. We
started Mark Properties in 2004 and since then we
developed two luxury properties in Lavington (a high
income residential suburb in Nairobi). For the Le’
Mac project, we specifically wanted something
unique that would attract investors. We took our
team of consultants to Dubai where there is a lot of
such projects, after which they designed Le’ Mac.

How far has work on the development progressed?

We have started excavation at the 1.8 acre piece of
land in Westlands (an upmarket suburb of Nairobi)
where the Le’ Mac project will be constructed. We
will begin construction towards the end of April and
we expect to complete the project by the end of
2015. Le’ Mac will have business space on the
ground floor that will accommodate a banking hall
and coffee lounge. The next six floors will be
dedicated to office and commercial space. We will
have another six floors of residential space and a
double storey Le’ Mac Sky club housing a gym, spa,
steam and sauna rooms.
Describe the market response since the launch of
Le’ Mac.

We have placed six floors of one to three bedroom
residential [apartments] on the market, the majority
of which is sold out. However, the market is slightly
slow because of the elections and the high mortgage
rates, which are just starting to come down.

What kind of buyers are you targeting?

About 90% of the people who have bought the
residential spaces are doing so for investment
purposes. They don’t want to live there themselves
but they are targeting diplomats and expatriates who
are coming to work here. Le’ Mac looks and feels like
a five-star hotel. Our services have been tailored to
fit international standards, which is what expatriates
are used to. For instance, we are investing a lot in
security systems within the building. Investors will
make good returns. The majority of the buyers are
local investors and the diaspora.

They would like to
own property, but the price of land in preferred
locations for these kind of investments is too
expensive. For instance, in [Nairobi’s] Westlands
[area], you would need nearly 100 million shillings
($1.15 million) to purchase a quarter an acre of land.

You focus on luxury properties while research is
showing saturation in this market. Your thoughts
on this?

There is still demand for luxury projects especially as
an investment proposal. Investors buy luxury houses
mostly for rent. There is a lot of demand for houses
on rent and investors have the money to purchase
luxury houses. We are seeing more expatriates
coming to Kenya and they want houses that match
up to international standards.
Low cost and medium housing is for the local market
only. This market is totally dependent on the
mortgage rates. When it goes up, the market goes
silent. If there are special rates, the market starts
booming. Because of the high mortgage rates, people
prefer to rent instead of buying.

Mortgage rates need
to come down to 10-12% ( currently between 13-20% ).
We also need more investors in the real estate
sector .

Describe some of the challenges you face in
developing these properties.

We face challenges dealing with the government
especially due to delay of paperwork. The good thing
is that today we can access most of our construction
requirements in Kenya. It is very easy to source
materials, which was not the case ten years ago.

Can we expect similar projects such as Le’ Mac?

We are looking for land where we intend to develop
another high-rise project after we finish developing
Le’ Mac. We want to build the tallest building in
East Africa. That will be our next project. We will
have commercial space, hotels, residential space and
shopping malls. We will combine everything in one
tower. We need new and unique things to attract
more investors. These kind of projects show that
Kenya is progressing. Dubai became an icon because
of its tall buildings. We want the same in Kenya,
something that will attract tourists and even further
investment in the industry and the country.

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ENTREPRENEURS WATCH: the 30 year old entrepreneur developing a ksh 350 million project

Kenya’s real estate sector is dominated by high-net-
worth individuals and corporations, with very few
youths investing in the industry, mostly due to
challenges in accessing financing.

Kimiti Wanjaria (28) and Ian Kahara (30), the co-founders of Serene
Valley Properties, represent a new crop of youths
who are teaming up to invest in the property
market. The two IT professionals are behind the
Sigona Valley project, a KSh350m (US$4.2m) gated
estate outside Nairobi. The duo shared their
experiences with How we made it in Africa’s Dinfin
Mulupi .

Tell us more about the Sigona Valley project

Kahara: It is a gated community located about 20
minutes drive away from Nairobi. It has panoramic
views and beautiful scenery. In the north it overlooks
Mount Kilimanjaro. We have Mount Longonot to the
south and in between we have Suswa Mountains just
before Masai Mara and the Ngong Hills. It is set up
on a hill overlooking two valleys.

We are constructing
three and four bedroom villas in three different
house designs. We plan to hand out the 30 villas by
August 2013. We are targeting the middle-income
market segment. We believe now is the time to buy
because we expect the value to appreciate. So far we
have sold 50% of the units.

How did you get into property development?

Wanjaria: We came together because we thought real
estate is a new frontier due to the housing shortage
in Kenya … One day when we were having drinks we
began talking about how to unlock potential in
parcels of land that we own. We gambled with it and
registered a company. We found two other partners
Johnson Waweru and Thomas Koigi, who believed in
the idea and we hit the ground running.

Real estate is capital intensive. How did you finance
the project?

Kahara: The project is structured in such a way that
we, the developers, have to finance part of it. To fill
this gap, we thought of several options, one of them
being debt financing, but getting money from the
banks was a huge challenge. We talked to 12 banks
and gave them proposals. They all asked for three
years audited accounts, which we did not have. They
focused on our own early-stage career profiles, and
the assets we had already accumulated, rather than
the project itself. In short, they did not want to
finance us and this was very frustrating. Everyone
told us our idea was good but we could not raise
money to implement it. We then approached pan-
African development funding institution Shelter
Afrique. They looked at the project and gave us a
loan of KSh200m ($2.4m).

What challenges have you faced?

Wanjaria: Other than funding we also found out that
most of the consultants we worked with in the real
estate industry are very traditional. There is a
certain way they want to do things. We found that to
be a bit too rigid for us. As a dynamic team, we are
raring to go.

Getting statutory approvals from the
government and council offices was also challenging
because of bureaucracy. Most of the people we
consulted with were very discouraging. They were
saying interest rates are at a ten year high and that
we have never built even a single house and now we
wanted to build 30. They told us to try after 15
years. As a team we were wondering, why should we
wait until we are 60 to do something we can do
today?

What advice can you give to young people
interested in investing in real estate?

Wanjaria: They should document their ideas. We
have seen the project through on paper as
successful. We are diligently implementing step by
step. When you can present your ideas properly,
people tend to support you. They should also consult
with the right professionals. You can hit success at
30; you don’t have to wait until 60. Have unwavering
commitment and be patient.

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ENTREPRENEURS WATCH: alice kariuki,proprietor of serviced apartments in uppe hill


The real estate market in Kenya has been booming
in the last decade with new commercial and
residential projects springing up across the
country’s major urban centres. In the capital
Nairobi and its environs, local and international
investors are building golf and gated estates,
shopping malls, hotels and offices to meet high
demand for property.

Alice Kariuki, a professional accountant, teamed up
with three other women entrepreneurs in 2009 to
develop serviced apartments in Nairobi. Last month,
they broke ground with Serenita Apartments, which
are targeted at business travellers and consultants
who visit Nairobi for weeks at a time.

Kariuki says she was drawn to real estate after
discovering how lucrative the sector could be. She
worked as an investment manager and was tasked
with finding investment options for her employer
that mostly included property, shares and treasury
bills.

“We revalued all the properties every three years
and the value always went through the roof. In fact,
it was better business than what our company
actually did. I knew this was a sector worth investing
in.”
Kariuki and her business partners did “small
businesses that are often associated with women”
and later decided to embark on a larger project.

“We were never afraid of going bigger because all we
would have to do is invite investors,” she says. “We
realised that a lot of what men can do, women can
do. That has been instilled in us from childhood. As
we grew up we were told we could do anything a
man could do. Even in finance there are more men
than women but sometimes we contribute better
ideas in meetings and I feel women should be able
to do anything they set their minds on.”

Serenita Apartments comprises 84 luxury units that
sell for KSh. 19.75m (US$228,000) each. The project,
which is to be completed by January 2016, is located
next to Upper Hill, an upcoming commercial centre in
Nairobi.

“Most corporate firms are moving from the city
centre to Upper Hill and that is driving land prices
and demand for real estate and budget hotels. All
the banks have built their headquarters there. These
firms have consultants who come here for even six
months and would prefer to live in a serviced
apartment than stay in a hotel. The demand is there
and it can only grow.”

According to Kariuki, demand is partly fuelled by the
city’s standing as a regional hub, the entry of
international firms and Kenya’s growing middle class
who are increasingly investing in the sector.
“There is a lot of new money in the market, which is
likely to go towards buying land and property.”

A tough journey
However, the journey has not been smooth sailing for
Kariuki and her partners.
“Sometimes people get surprised that the project is
being run by women. Mortar and brick has not been
a domain for women in this country. Most people
often question how much we actually know about the
construction process. Right from the beginning we
decided to hire the best talent and we have been
learning along the way. We have a good grasp of
what is going on.”

When they sought additional funds to raise KSh. 90m
($1m) for the purchase of the land, banks turned the
team away.
“Many banks did not take us seriously. They made
their evaluations and gave us all sorts of excuses and
refused to lend to us. Eventually we settled for
private equity,” says Kariuki. “We want to have good
capital appreciation so that we can do another
project and prove wrong the doubting Thomases.”

Lessons from entrepreneurship

Kariuki says entrepreneurship has taught her to be
resilient and persistent. Since starting the project,
she says, they have faced a court battle, encountered
bureaucracy in government and had to adhere to
changing regulations, none of which deterred them
from their goal.

“If you go into business you will encounter
numerous challenges along the way, but I think
giving up on the dream is the last thing someone
should do. It is not easy but you have to persist.
There is no learning if you chicken out. You learn
more in difficult times. They make you better.”

She advised other entrepreneurs to “consult less in
friends because most times they cannot see your
vision”.
“They will advise you based on their ‘feelings’ and
ignore the facts. I think it is important to work with
professionals and experts, share risk with other
investors and stay the course regardless of the
hurdles you face.”

For those aspiring to invest in real estate, Kariuki
says research is crucial.
“Sit with a marketer first and run your idea through
them to find out if what you want to establish is
something that can actually sell. A lot of people
have developed projects and found themselves
caught up because they did not research.”

She says women entrepreneurs should not to shy
away from taking risks.
“That is not the best way to do business. It is good
to take a little bit of risk, otherwise we shall tip toe
and arrive safely to the grave.”

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ENTREPRENEURS WATCH: ken oyaya, founder and CEO of Blackrose Limited.

Growing up in rural Kenya, Ken Oyaya was actively
involved in helping his mother run her part-time
tailoring business. By the time he was in high
school, Oyaya was convinced that entrepreneurship
would be his chosen career.

When he started university, Oyaya changed from the
engineering course to which he had been admitted
and instead studied business management. For the
next four years, he dabbled in almost every kind of
business. His first, at age 21, was distributing
paintings made in India to hawkers in Nairobi.

“I saw the potential in business at a young age. My
mum was a teacher but she was making more money
from business,” says the founder and CEO of
Blackrose Limited.
Although he later joined the workforce and was
employed at East African Breweries Limited (EABL) for
seven years, Oyaya’s interest in entrepreneurship
never faded.

In 2011, Oyaya quit his well-paying job shortly after
being promoted to a managerial position to start his
own business in the entertainmen t industry.
“I have always had a passion for events. Even in
university I was a hustler: showing movies, hiring out
sound equipment, organising birthday parties and
even renting out pay TV to other houses,” says
Oyaya. “But when I decided to start my own business
I did not want to continue hustling.

I wanted
something more formal and organised. I decided to
open a club first.”
In the last two and a half years, he has started
about a half a dozen businesses in the
entertainment, retail and construction sectors under
his company Blackrose. Oyaya owns five clubs and
restaurants, a DJ outfit, a furniture manufacturing
firm and an interior design company.

Management style
Oyaya says he chooses to empower his 12 managers
to run the businesses and devotes his time to
coming up with new ideas. He argues that
micromanaging a business can stifle growth and
limit its expansion.

“If you never give the people you employ ownership,
you will never make money. When I go to my clubs
the waiters don’t even know I am the owner because
the managers are in charge of everything from hiring
to stocking. That gives me the time to do other
things, innovate and start new businesses. Giving
people responsibilities and giving them room to
execute is something I learnt at EABL.”

Looking back, Oyaya says he is glad he followed his
passion for business. However, making that step to
quit his job was not an easy one.
“I was in charge of events at EABL and I had been
thinking about starting my own business, but I
always felt that I wasn’t ready.”
At the time, Oyaya’s wife was enrolled in university,
they were building their home, his children were
going to an expensive private school and he had just
bought his wife a new car on loan.

“The thing I worried about the most was losing the
medical cover my family enjoyed. I was scared. I was
praying that no one would get sick after I quit my
job,” says Oyaya, adding that he finally took out
medical cover for his family and all his employees
five months ago.

The 35-year-old entrepreneur explains that after
quitting his job, he went through a stage of
confusion, finding himself free all day and even
began applying for employment. It took him six
months to make his first cheque running his own
business.

“I was getting very worried. I was now thinking of
things I could sell to get by. It was very hard. The
reason why it took me so long to settle was because
licensing a business in Kenya takes so long. There
were so many licences we needed and no one
advised us. There is a cartel that harasses
entrepreneurs and takes full advantage of their lack
of information.”

Expanding his business
Having overcome many challenges along the way,
Oyaya is keen on expanding his business. His next
venture? Setting up canteens in informal settlements
in Nairobi. Oyaya outlines why this venture will work.

“In the CBD people go to supermarkets but in the
slums it is the kiosks that sell everything. You only
need one employee and one licence for one shop and
there are no electricity or water expenses. You
require very little money to open one canteen and
you can make KSh. 500 (US$5.82) as profit per day.
Now, what if you opened 100? In Kibera slum alone
you can have 1,000 shops and they still won’t be
enough. How many slums do we have in Nairobi?”

Oyaya believes the retail sector is the low hanging
fruit as Africa’s middle class expands and low
income-earners struggle to fend for themselves and
climb up the social ladder.
His biggest lesson in business has been investing in
human resources and ensuring professionalism in all
his businesses.

“You will find someone operating a bar with one or
two waiters and a barman who also serves as the
manager because the owner wants to make 90%
profits which is never long lived. You have to invest
in people and motivate them to perform efficiently. If
you try cutting costs by compromising on human
resources you will run one shop until the day you
die. If you want to expand, you have to embrace
professionalism and hire good talent.”

Embracing failure

Oyaya reckons that entrepreneurs should also
embrace and learn from their mistakes as well as
attend professional courses to improve their
capabilities.
“I have started businesses that have failed. I choose
to look at failure as a learning process,” he says. “Our
education system is wrong. It teaches kids to never
fail. The focus is on being number one and nothing
else.”

This best or nothing mentality, Oyaya warns, makes
people afraid of failure and taking risks, and formal
employment with a monthly salary is considered a
safer option.
“I have a friend who sells sweets and makes over
KSh. 500,000 ($5,824) a month and another friend
who wears a suit and tie every day, drives a company
car but takes home KSh. 30,000 ($350) a month.
When we sit down, it is the guy in the tie and suit
who will brag the most because he works for a big
company and drives a company car. Meanwhile, the
guy who sells sweets and wears jeans all day is
quietly thinking of where he will open the next
shop.”

Oyaya warns young entrepreneurs not to focus too
much on image but rather start businesses that
actually make money. He adds that most young
people would not want their peers to know they sell
mandazi (Kenyan doughnut) for a living and would
prefer to be software entrepreneurs for instance.

“Do what you really love and start small. Let the
business grow gradually. Be proud of what you do
and do it well,” he advises. “I see most young people
eager to make money overnight. You have to patient
and put in the hard work.”

While he has no regrets about venturing into
business, Oyaya cautions that it has its downside,
citing an event last December in which he lost KSh.
600,000 ($6,989). Such unexpected losses, he adds,
can have serious repercussions on his entire
portfolio.

“As an entrepreneur I am not just responsible for my
family, I am responsible for my employees. It’s like
having more than 100 dependents,” he says Oyaya.
“But I enjoy this. I wake up at 9 o’clock and eat
breakfast as I watch TV. No one asks me why I am
late for work.”

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ENTREPRENEURS WATCH: Kamal Budhabhatti, CEO, Craft Silicon (Kenya)

Craft Silicon is one of Kenya’s leading software
exporters. The IT firm won the US$100,000 grand
prize at the 2010 Africa Awards for
Entrepreneurship. Kamal Budhabhatti, founder and
CEO of Craft Silicon, chats with Dinfin Mulupi
about how he started the business and why Kenyan
startups need to come up with more original ideas.

How did you start Craft Silicon?

After I completed my studies I moved to Kenya [from
India] and worked for a company in the polythene
sector for a while doing data entry.

Five months later
a friend of mine approached me to write software for
a local bank . Of course my boss found out about this
and was not very pleased. He had me deported back
to India. On my flight all I could think about was the
great opportunities in Kenya. I moved back to Kenya
and began writing software for banks full time. This
eventually gave birth to what Craft Silicon is today.

We are serving banks, micro-finance institutions and
other financial services companies in 44 countries.
We offer integrated financial software solutions to
banks, microfinance institutions and cooperative
societies worldwide. We have grown over the years to
become one of the leading software export companies
in the region.

For six years since starting the business I worked
without a salary, I concentrated on growing the
company. We want to continue growing the company
so that one day we can hire 10,000 people and sell
our software all over the world.

Today the company
is valued at about $30 million. I am not very happy
with that. There is still one zero missing at the end.
My vision is that by the year 2020 we will have a
valuation of $500 million. We want to be bigger than
Equity Bank and Safaricom Limited.

Describe some of the challenges you face.

We have had exponential growth, which is a good
thing but it has also presented challenges. At the
moment we have 220 employees in Kenya and 100 in
India. Most of our challenges have been in human
resources management. We are constantly working on
ensuring that all our employees carry the ideas and
vision of the company.

We have avoided micro management and instead
opted to train staff to be responsible and have a
sense of ownership in the company. I try hard to
boost my staff’s morale by appreciating their
innovative efforts. We try as much as possible to
make the employees comfortable. In our offices (Craft
Silicon Campus) we have constructed a gym,
swimming pool, sleeping rooms for staff working
overtime and give our staff free lunches to motivate
them.

Meeting our customers’ expectations is also
something we think about a lot. Technology keeps
changing and the market is very competitive. We
want to be innovative and to always be ahead.

In a previous interview you mentioned that one of
your plans was to list on the stock market. Give us
an update on this?

We don’t want to list too early because the public
will not appreciate the true value of the company.
We want to list when we have a valuation of about
$300 million to $400 million. By 2017 I think we
should be ready to list. By that time if the Nairobi
Securities Exchange (NSE) will be mature enough for
a software company then we will list here.Otherwise
we are evaluating other markets, including
Singapore. There is a lot of technology hype in the
country at the moment, we think people would be
willing to invest their money in Craft Silicon by that
time. However, I think that if you want to raise a lot
of money for an IT company, then Kenya might not
be the place right now, we still have a long way to
go.

You mentioned the hype around the IT industry in
Kenya. What do you think about all these new
startups?

I don’t want to discourage them, but I think
developers and entrepreneurs need to come up with
more original ideas. I don’t see any unique ideas. I
have not seen something that can genuinely be the
next big thing. I am just not convinced. M-Pesa was
invented five years ago, but everywhere you go, every
other technology conference, the only thing we talk
about is M-Pesa. We must come up with something
new. We cannot ride on the successes of the past.
Even the government keeps talking about M-Pesa.

This will hurt Kenya in the long-run. We need to
move on and innovate the next big thing. We need
something new to talk about.

What do you think about Kenya’s proposed Konza
City project (a planned high-tech hub inspired by
Silicon Valley)?

I think it is a great project. We are planning to take
space there. We are having meetings with the
concerned authorities to see if it makes sense for us
and if it makes sense for the company to take space
there. I think it is a good project that can bring in a
lot of outside companies into the country that will
help our economy as well as the technology sector.

How can the government attract more foreign
investment in the technology industry?

When I came to Kenya, I came with nothing and I
started from scratch, so I did not have anything to
lose. For bigger foreign companies coming in with a
lot of investment they need to do some due
diligence. A lot of large companies go to southeast
Asia because the cost of setting up and doing
business in some of these countries is affordable.

Kenya does not have tax incentives for technology
companies. One of the reasons we are planning to
set up a development centre in Singapore is because
they give us software incentives and tax rebates. This
is what attracts companies. The government needs to
address some of its policies and make the
environment attractive to foreign companies not just
to open their offices here, but to run most of their
operations from here. This will create jobs and
ultimately impact the Kenya economy.

What about creating our own local tech giants?

Craft Silicon together with Seven Seas Technologies
and Cellulant are good examples of local tech ‘giants’
in the making. I believe in these three companies,
and I believe they have the potential to take up the
world. Other companies still have some work to do.
But these are truly ‘made in Kenya’ companies doing
business with the rest of the world.
One of the changes we have witnessed in the last
few years is the influx of venture capital funding.

What advice do you have for entrepreneurs when
dealing with VCs?

Most times there are inconsistencies between the
founder’s vision and that of the VC. If that is
addressed then you are good to go. Entrepreneurs
should be careful to look at every term and condition
because some of the VCs, not all, but some, put fine
prints there that can hurt your business. Yes we
have seen a lot of VCs showing interest in Kenya’s
technology sector and a lot have come here. What I
don’t understand is why we are not seeing real big
impact so far. Correct me if I am wrong, but in the
last one year what difference have you seen? I am a
person who likes seeing results.

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ENTREPRENEURS WATCH: heshan desilva from a college drop out to the youngest kenyan billionaire


Seven years ago Kenyan Heshan de Silva’s parents
gave him KSh. 10,000 (US$116) which he used as
capital to start his first business.
De Silva, who was 18 at the time, started a company
which bundled insurance cover with long distance
bus tickets. By the end of the year, the business had
made KSh. 90m (US$1.05m).

He then embarked on his next venture, that of
investing in innovative ideas. Today De Silva runs
VenCap Kenya, a venture capital firm that is invested
in 22,000 people and has created 17,000 businesses
across the world. The fund is part of The De Silva
Group.

VenCap Kenya invests an average of $10,000-$15,000
into innovative ideas and offers its investees support
in executing the ideas. So far, the businesses created
by VenCap and its investees employ about 70,000
people.
De Silva told How we made it in Africa that creating
jobs and reducing poverty is a major goal for the
group.

“When we started this we didn’t want to be the
Abraajs of this continent that do five deals a year
and they are happy. We wanted to impact people on
a large scale. The mandate of our group is to reduce
poverty from 60% to 40% in this country within five
years. We can’t do that with five deals a year.”

According to the 25-year-old entrepreneur, VenCap
has had a 70% success rate, with three of its
companies crossing the $10m valuation mark. One of
its businesses is an advertising company that offers
GPS-enabled advertising on public transport vehicles
for KSh. 150 ($1.74) and whose model has been
patented in dozens of countries worldwide.

Another successful business is The Gourmet Nomads,
which distributes more than 1,000 lunches to
businesses in Nairobi every day for KSh. 150 ($1.74)
per meal. Offering affordable services, be it in
advertising or packed lunches, De Silva says, is
important because it appeals to a wider range of
customers.

“I never take a majority stake in a business… usually
around 25%-35% and that’s it. Even if we are
financing an idea completely, we will never cross 40%
ownership,” he says, adding that “trust is everything
in our line of work”.

VenCap has invested in various sectors including
agribusiness , robotics, advertising, hospitality,
fashion, rural road construction and hardware.
“The really nice thing about it is that we are not
looking for the next big thing. We are not looking for
huge businesses. We are targeting the poorest
people in this country. These are people who make
$2 or less a day. They are not having massive dreams
of owning [a five star hotel]. So if it’s just a need in
your street, or neighbourhood… and you create a
business that can employ three or four people and
make money at the end of the month, that is gold for
us.”

A growing portfolio
De Silva enjoys being involved in a wide range of
sectors. “Because of my ADD (attention deficit
disorder), it is so handy that I am invested in so
many things. I can be talking about the robotics we
are invested in and switch to a green house then to
a road that we are building. How can you ever get
tired when you have got a clothing line in Miami and
another in Kenya? It’s a lot of fun. I love what I do.”

However, he says managing the thousands of
businesses is difficult, comparing the group’s
portfolio to a zoo. Yet more entrepreneurs are keen
on joining.
“The number of requests that we get every day is
phenomenal. Our company email is shredded.

Managing all that and sticking to our principles is
important,” says De Silva, adding that he relies on
his team of 400 who listen to pitches and ensure
that ideas presented to the company are executed.
De Silva says his group takes lesson from the success
of Toyota which employs 1m people in Japan. VenCap
has planned for 50,000 businesses a year and has
access to up to $2bn over the next five years. The
firm works in partnership with two New York-based
funds.

“There are 11m people here unemployed who are
sitting somewhere wondering what they are going to
do. Imagine if you can impact a fraction of those
people, how fast would this country grow across many
sectors?”
Instant success
The VenCap boss is motivated by the “drastic”
change in the lives of his entrepreneurs who just a
few months ago struggled to put food on their tables
but today can afford to dine at high-end restaurants,
educate their children and create jobs for other
people.

However, this instant success can have negative
effects.
“Some of the people went into drugs when they
started making money. That was something I never
wanted to create. I don’t want to make you rich so
you can go and waste your life. I want to make sure
that people are responsible,” says De Silva, adding
that the fund works closely with its entrepreneurs to
avoid such cases.

De Silva knows about spending money
irresponsibility, having experienced the same at the
age of 23.
“When I started making a decent amount of money…
I bought a house in Lavington (upmarket suburb in
Nairobi) for KSh. 170m ($1.9m). Then I bought a
house in Palm Beach Florida, and then in South
Africa and in Sri Lanka. Then it became planes. It
was ridiculous. There was no limit to how much I just
wanted to throw at stuff. It was very irresponsible. It
went full circle and I decided to live a simple life. I
don’t need anything fancy. I believe very much in
stewardship.”

University drop-out
Before his spending spree, De Silva faced even bigger
challenges. He dropped out of an American
university after a short stint, started abusing drugs
and attempted to kill himself. He eventually
managed to turn his life around and stopped using
substances.

De Silva enjoys encouraging other youth and
motivating them to aim for the stars regardless of
their past. He hopes to change the perception that
one must have a university degree to succeed in life.

“If you don’t have a degree, if you don’t have even a
high school diploma, you will succeed if you plug a
need. You don’t require a piece of paper to be
certified to do business,” he says.
“I think education enables you to open your mind to
a lot of possibilities but at the end of the day you
are very narrowed to what you have studied and you
lock out everything that is going on around you. The
counter to that is that people like me are not
narrowed to anything; we see opportunity
everywhere.”

He advises the youth not to wait “for a golden ticket”
to venture into business.
“Don’t scratch your head saying there is no
financing. With what you have, what can you do to
achieve your goal? Investors like people who have
taken that initiative.”

Passion, he adds, is a must have.
“You really have to love what you do. If I care more
about your business than you do there is a
problem.”

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ENTREPRENEURS WATCH: Failure is a crucial part of entrepreneur James Panaito’s success


“I have started more than 50 businesses. Most of
them have failed, but I have learned a lot,” says
James Panaito, a 29-year old Kenyan entrepreneur.
From a young age, Panaito always thought up new
ideas to solve problems and figured that going into
employment would limit his ability to implement
those ideas.

Panaito told How we made it in Africa that he
dropped out of university because he felt studying to
become an architect was “wasting lots of my time”.
“I really wanted to make money,” he says. “I want to
create an empire.”

Panaito’s string of failed businesses include a dance
school and an office lunch delivery enterprise which
he believes were not successful because he lacked
skills and passion in both fields. But he has no
regrets for his many failed attempts.

“What I have learned cannot be taught at any school
because I have had real experience.”
Today Panaito runs several successful businesses in
technology, photography, education and real estate.
His first successful venture was building websites in
2006 when technology adoption among Kenyans was
just gaining ground.

“I found out that most of the problems I wanted to
solve depended on IT so I decided to venture into
that. I needed KSh. 40,000 (US$465) for capital. I
managed to convince my mum who is a teacher to
take a loan. She really believed in me.”

Panaito rented a one-roomed house made of iron
sheeting in a low income estate in Nairobi, bought a
laptop, began taking classes online and eventually
honed his skills in computer programming. Confident
that he was ready to start working, Panaito printed
out posters advertising his services. A few weeks
later he got his first client who needed a website.

“After that, work starting flowing in. In one month I
had more than 10 clients and made about KSh.
500,000 ($5,800). I volunteered to build a website for
the Ministry of Foreign Affairs which opened more
government jobs. By the end of the year I had
worked with six government ministries.”

Eventually Panaito worked with the World Bank on its
business licensing portal, opening the gates for more
work across the region.
“I love technology because I see myself as a problem
solver. I go into an organisation and observe how
they operate then look for ways to use IT to enhance
their service delivery and enable them to work less
and earn more.”

With constant work and money flowing in from his IT
business, Panaito decided to invest in his other
passion, photography. He bought a studio in Nairobi,
now known as Panaito Photography, invested in
equipment and hired a team of young photographers
to work with him.

“Through photography I get to meet people from all
walks of life and we easily interact. So, I use it to
expand my networks which create more business
opportunities.”
More ideas to implement
Panaito says he plans to open a photography school
to train more young people who are interested in the
trade. He is also launching a fashion enterprise and
a stock photo site.

“Currently advertising agencies are relying on images
from Shutterstock and Getty Images. I believe if
these images can be made available here in Africa
people will buy them.”
Panaito says diversity in business is good and he
intends to open more enterprises.
“I see myself as a businessman who thinks outside
the box and who intends to use technology to
automate and to make money while seated.”

A hustler Panaito is thankful for his humble start and values
the lessons he has acquired along the way.
“I started from zero, sleeping on the floor. I used to
walk to town looking for work and would spend time
sleeping at Uhuru Park thinking about ideas. But the
good thing is I know how to start from scratch. If
you put me in South Africa I will survive, if you put
me in Sudan I will survive. PhD graduates don’t have
the experience I have. I know how to hustle.”

The major challenge Panaito faces is accessing good
talent.
“I wish I could clone myself. Getting skilled people is
not easy. I have unique needs that have not been
tested elsewhere,” he says. “I also have so many
ideas and I can’t kick-start all of them. I have so
many pending ideas that need to be executed. I
have found that as I delay execution other people
start the very same business I was thinking of. I am
planning to build groups that can manage some of
the ideas and execute.”

The young entrepreneur advises the youth in Africa
to find a team that can help them grow.
“Associate with people who make you better, people
who inspire you and people who tell you your
strengths,” he adds. “You should never rest on your
laurels because competition gets tougher every day.
Always try to be the best in what you do. You don’t
need everything to get started. You only need what
you already have and the rest will be provided by
the people around you.”

Panaito argues that Africa’s growing middle class is
creating opportunities in various sectors that can be
exploited by forward thinking entrepreneurs .
“I believe there is demand. We should not have
more than 10% unemployment rate in any country in
Africa. There are so many streets to be cleaned,
there is grass to be cut, there is demand for African
music and fashion… it is up to us to seize the
opportunities.”

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ENTREPRENEURS WATCH: How Joanne Mwangi stepped off the corporate ladder to venture out on her own


Joanne Mwangi is one of Kenya’s most respected
entrepreneurs, and has won numerous awards for
her efforts in building and transforming a small
marketing agency into a leading regional group.

Mwangi’s firm, Professional Marketing Services (PMS),
offers a wide range of services including advertising,
public relations, event management, trade and
consumer promotions, trade merchandising and
marketing strategy development. The company has
since grown to include four subsidiaries with a
presence in Kenya, Uganda, Rwanda, Burundi and
Tanzania .

In 2010, PMS Group became the first woman-owned
business and the only one since to be voted number
one in the Top 100 SMEs competition in Kenya. In
2009, Mwangi beat women entrepreneurs from 75
countries to win the Organisation of Women in
International Trade’s Woman of the Year award.

Mwangi ventured out on her own 18 years ago after
realising her ambition to climb the corporate ladder
was hindered by her gender.
Mwangi was then at her third job, working at
American multinational Colgate-Palmolive Company.
People with lesser knowledge and experience were
hired as her bosses and earned more than she did.

“At that time the world was different… being black
and being female were things that blocked your
progress. It was the worst possible combination,”
says Mwangi. “I realised I [had] to be either a
trailblazer breaking through that glass ceiling or
knock my head on that glass ceiling for the rest of
my life. I have always been ambitious. I didn’t want
to be just a mid-level manager. I wanted to rise to
the very top.”

Mwangi attributes her success at PMS to the lessons
she acquired at Colgate which she describes as “the
best employer I ever had because they took the
trouble to train us”.
“They wanted us to be world-class marketers. Colgate
is the reason I would give, more than even my
degrees, for my success,” she says. “I was marketing
manager [but] I was taken to the factory to learn how
the product I was selling is made. They gave me an
all-rounded perspective and that helped me a lot
when I started my entrepreneurship journey.”

A tough beginning
Mwangi started her journey in marketing straight out
of university when she joined a local newspaper to
sell advertising. With a dismally low success rate,
Mwangi’s job was “depressing” and she sometimes
cried when proposals were rejected.

“Anybody in marketing knows that the two hardest
things to sell in this world are insurance and
advertising space. So I think I started in the hardest
possible environment. It toughened me. I just had
to grow thick skin. I had to learn that rejection is
not personal. It was the product that they were
rejecting, not me.”

Mwangi tells How we made it in Africa that leaving
the corporate world to start her own business was
“extremely difficult”.
“It was not easy. Being self-employed [at the time]
was the least glamorous thing in Kenya. It was only
failures who were self-employed. Anyone who was
worth anything was employed in corporate Kenya ,
wearing a tie to work.”

But Mwangi says she was optimistic during the early
stages because she had enough money to keep her
going for at least six months. However, when her
savings dwindled she went into “panic mode” and
contemplated going back into formal employment.

“One lady, who was also an entrepreneur, told me
not to quit before 18 months. In my mind I figured I
still [had] 12 months to hang in there. It wasn’t yet
time to give up. Of course, there is no magic to 18
months, but it gave me an end date. On the seventh
month I got my first good deal.”

Handling the success
Deals starting flowing in and so did the money. This
became Mwangi’s next big challenge. At 26, she was
dealing with being an employer and managing
millions of shillings in the bank. The business, she
says, was operating matatu-style, referencing the
chaotic public transport vehicles common in Kenya.

“It was total confusion. All of a sudden I was dealing
with money yet I had no real financial background. I
was mixing my personal money, the business money,
everything. It was a complete mess, but in this hot
mess I was learning.”
A major challenge Mwangi faced, and one she thinks
many entrepreneurs encounter, is limited
management capabilities. Quoting American author
Stephen Covey of The Seven Habits of Highly
Effective People fame, Mwangi says many
entrepreneurs spend all their time chopping the tree
and have no time to sharpen the axe.

“It was a struggle. I wasn’t improving me.” She
overcame this by attending trainings, reading
management books and eventually going back to
school to study finance.
“I realised the heart and soul of your business is the
finances because business is about making money. I
had to learn. In school I hated maths, [but] today it
is my favourite,” says Mwangi.

“After learning all
these things it gave me the confidence that I had
what it takes to run the show.”
Succession planning
Three years ago Mwangi made a deliberate decision
to reduce her involvement in the day-to-day
management of PMS. She started delegating more
work and took the company through change
management training.

“[My team] were used to Joanne being mother hen. I
told them I will be coming in to sign cheques, to
review proposals… but day-to-day operations, I don’t
want to know. At first it was not easy for me because
I was so engaged in PMS. I felt like I was becoming
irrelevant. The good thing is I could now focus on
strategy.”

Doing this, Mwangi says she was able to discover new
lines of business and ways to further expand the
firm. Her sights are now set on expanding PMS
across the continent through representations,
partnerships and by riding on the back of current
PMS clients who are expanding regionally.

“At a pan-African level, one of the things we need to
embrace more is mergers. I would rather have a
small percentage of a massive pie than 100% of a
little queen cake,” says Mwangi. “We need to
combine forces.”
Moving forward, Mwangi says her ultimate goal is for
PMS to go public or merge with another entity.

“I just feel that it would very wrong for me to keep
holding on to the company and not allow other
people to come in and bring in their strategies and
knowledge. That is what will keep this company
forever.”

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ENTREPRENEURS WATCH: Organic fertiliser maker aims to make a difference in Kenya


As Africa seeks to increase food production to meet
rising demand and fill shortages, the need to
protect soils and the environment is also emerging.
A recent Food and Agriculture Organisation report
revealed that the continuous use of fertilisers such
as DAP (Diammonium Phosphate) in Kenya has
resulted in reduced soil pH levels and declining
productivity.

Kenyan entrepreneur Marion Moon hopes to
replenish depleted soils using her organic fertilisers.
In 2012, a year after quitting her job, she started
Wanda Organic to produce organic fertilisers using
animal and plant waste.
Wanda Organic’s fertiliser brand called Plantmate is
targeted at smallholder commercial farmers. The for-
profit social enterprise has outsourced its production
to a Philippines-based company and plans to open a
local factory by 2015.

A 50kg bag of Plantmate currently sells for US$35.
Moon’s aim is to reduce the price to half when local
production begins and sales volumes rise. Her goal is
to sell 300,000 bags in Kenya by the end of 2015 and
capture 40% of the market in five years.

“The short-term effects of chemical fertilisers are
great because they increase your yield but the long-
term effects are very dangerous. We need to conserve
our environment, be sustainable and look after our
soils. It is the number one resource. What else does
the majority of our population have if not their
land?”

The use of Plantmate, she says, helps farmers to
increase their yields, suppress diseases and improve
soil health. Moon reiterates that her business is not
out to compete with companies that sell chemical
fertilisers but to promote sustainable farming by
supplementing chemical mixtures with organic ones.

“When you use our organic fertiliser with a little bit
of chemical fertilisers you maximise your yields
without harming your soil,” she says, adding that it
can also be used by farmers who practice organic
methods.
Getting started
After completing her studies in Australia,
Moon moved back home and worked in Kenya and
Uganda . In 2011 she quit her well paying job at a
global firm where she was the executive assistant to
the regional managing director and chairman.

“As an executive assistant I had a lot of access to the
entire company and I used to attend board meetings
and write board reports. It was a lot of fun making a
lot of money and travelling. However, we were
explaining to American shareholders how much
money we made and why we didn’t make more. In
[business] you are always explaining to people why
you are not making them as much money as they
want to make. I wanted to do something that made a
difference.”

As she tried to figure out what that difference would
be, Moon was approached to do a small due
diligence project in Southeast Asia.
“I went to Thailand and I was expecting it to be like
Kenya or Uganda, but those guys are way ahead of
us. When I went into the rural areas people were
not hungry. Here, when I go to the village everyone
is always asking [for help] and they are hungry…

Thailand was such a different experience.”
She then visited Vietnam and the Philippines and
saw how farmers there produce more, and better
quality food by practicing sustainable farming using
better seeds and organic fertilisers.
“I saw a gap. Our farmers don’t have access to
quality organic fertilisers. They have used excessive
chemical fertilisers and their [yields] are now
declining,” she says. “I am very passionate about my
country and about this continent.

My father is from
the UK so there was opportunity to move there. My
siblings moved there, but for me this is home.
Instead of complaining about food shortages I
wanted to do something about it.”
Wanda Organic has been working with large
commercial farms hoping its success will inspire
neighbouring smallholder farmers to adopt organic
fertilisers.

“They are what I call the low hanging fruit and their
business gives us money to keep growing Wanda.
However, that smallholder farmer is still my target. It
is about being patient because change is not easy.
It is about education and partnering with farmers
and other stakeholders.”

Moon explains that Plantmate is made by combining
organic waste with an activator that has over 20
naturally occurring soil microbes and putting that
mix through a rapid decomposition process. The
finished product holds more than 20 microbes
including bacteria, nitrifiers and fungi, which are
beneficial to soil and plant.

“The idea is to have many factories across the
country to be closer to the farmers. We are also
considering a franchise model so we can teach
farmers’ groups how to build their own factory, then
we just sell them the microbes.”

Setting up a basic fertiliser plant would cost about
KSh. 1m ($11, 500) and can be a manual or
mechanised operation depending on the size. This
biotechnology, Moon says, is popular in Southeast
Asia and is gaining traction in Australia and Canada.

A frustrating journey
Getting government approvals and licensing to
produce bio-organic fertilisers has been a long and
“frustrating” journey for Moon. She has also faced
difficulties carving a niche in a male dominated
industry.

“I had to really push. In the initial meeting I was
kicked out. I was told I have come to Kenya to cheat
farmers,” says Moon. “I am relatively young and that
was a barrier. A few times I was told to come with
my husband or go open a hair salon. I have been
told really stupid things.”

Moon says her experience has taught her “patience
and persistence are key ingredients in
entrepreneurship”.
“It has been a steep learning curve.”

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