Business Daily
Date: 07.07.2015
Page 15
Article size: 538 cm2
ColumnCM: 119.55
AVE: 227155.55
? FUNDING ACL director tells how small groups are coming together to raise capital for business and buyouts
Investor turns the fortunes of
'chamas' with pooled resources
BY SIMON CIURI
Kenyans have for decades preferred
setting up as well as commercial advisory empowerment firm targeting women in
the places such as Mukuru kwa Njenga,
Kibera, Kawangware and Laikipia
where they made beadworks and leather
investment groups (chamas) as a services.
way of saving and consolidating
Mr Kihu, together with a business
their money in order to access investments partner Patrick Kariuki, formed the
that would otherwise be out of reach for Kenya Association of Investment Group.
accessories for export.
individuals.
The new company began offering training
The women, who number about
One ofthe most talked about success and management skills to saccos on how 120, would also receive designs and
stories is Transcentury, an investment to sell their products in the market.
material from international fashion
group started as a chama in 1995 at a golf
"We basically acted as a link between labels and assemble them using local
course in Nairobi and which has grown the saccos and customers, informing accessories and have them sold abroad
by leaps and bounds since.
the latter what they market required for a commission.
Some of these international brands
Mwai Kihu, aformer planning manager including buyout opportunities for them,"
at Sameer Africa, is amongKenyans who said Mr Kihu.
include Adidas, United Arrows, Manor,
believe in the potential of investment
Some of his clients advised him to set Sass and Bide, Lancaster, Oskle, Chan Luu
firms— so much so that he quit his stable up a business that would specifically focus among several others. Ethical Fashion's new owners
job in the tyre­making firm to venture on raising capital and target investments have since shifted the factory from the Industrial
out.
and buyouts in profitable venture and area to the Export Processing Zone premises in
His gamble has paid off with his
investment group's (Amalgamated
Chama Limited) latest conquest being
a Shl5 million buyout in April of Ethical
Fashion Artisans, a textile company setup
by the United Nations in 2009.
ACL, which comprises approximately
55 individual members and 20 chamas,
in November purchased a stake in waste
managementcompanyEnvirosafe Limited
for about Shl3 million, exemplifying its
continued growth.
"I had reached a point in my life where
the need for self­realisation was strong,"
Mr Kihu, 63, told Business Daily at his
Uniafric House offices along Koinange
share the returns.
He heeded their advice and formed
the Amalgamated Chama Limited (ACL)
together with four other directors­
Patrick Kariuki, Sundeep Raishura,
Josephine Chepkoech and David Owino.
Mr Kihu was (and still is) the chama's
Kitengela, retaining all its the employees in the
process.
"The beauty of this investment is that it is an
impact­based investment programme. At the
very end ofthe value chain, you are involving and
benefitting members ofthe community but not just
ACL owners," said Mr Kihu.
chairman.
In 2013, the company reported revenues of Sh71.8
The founding members were required million, a 47.7 per cent increase from the previous
to raise a Shi million capital that would year's Sh48.6 million.
help them raise the fund for the initial
In November last year, ACL acquired a 30
investments.
per cent stake in Envirosafe Limited, a waste
"We had two types of members that management company based in Kitengela.
included other investment groups and
Envirosafe collects waste from hospitals, pesticide
individuals. There were no restrictions firm and other manufacturing companies and
on members' nationality," said Mr Kihu. disposes them in an environmentally safe way.
Street.
ACL has over the past seven years
Some of company's clients are British American
"I wanted to test new waters in the grown its portfolio to billions
Tobacco (BAT) and Unilever,
world of business. My last pay slip
of shillings with most of
"The company was previously co­owned by
was in October 1999."
a South African and Zimbabwean investors. We
their investments being in
real estate as well as in the
Years after resigning
bought our stake from the South African," said Mr
from Sameer, Mr Kihu
manufacturing sector.
Kihu. The company, he adds, is currently in the red
had still not found his
Theirlatest acquisition
but their aim is to have it achieve portability this year
bearing in business.
Ethical Fashion Artisans
even as they plan to expand regionally.
His fortunes
exemplifies the group's
ACL is also currently eyeing investments in the
however turned in
insatiable appetite for
hospitality industry in Loitokitok, Kajiado where
2007 when micro­
investment.
they own 600 acres of land. Mr Kihu says they plan
lenders were trying to
gain a foothold in the Kenyan
was founded in 2009 in Industrial Area setting up a resort on the land, but did not give
market. These saccos were at the
International Trade Centre.
by the United Nations, through its agency timelines and cost for the proj ect saying it was still
time looking for individuals
and firms to offer insights on
Ethical Fashion started as a women
in the planning phase.
On money and investments, Mr Mwai says
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya
Business Daily
Date: 07.07.2015
Page 15
Article size: 538 cm2
ColumnCM: 119.55
AVE: 227155.55
he prefers passive investments and is averse to
startups.
Nearly all startups die in the
formative years. I prefer to buy
an existing company and if
it is doing well, leave it to
the management to run
it," he said.
[email protected]
edia.com
Amalgamated
Chama Limited
(ACL) chairman
Mwai Kihu
during the
interview
at his office
in Nairobi
yesterday.
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya