Enterprise

How billionaire’s autograph on dollar inspired Kenyan

Shah

Pisu Energy Services Africa director Nirav Shah. PHOTO | COURTESY

Nirav Shah, a director of an energy management firm, has encased a one-dollar note in a glass frame in his Nairobi office autographed by Bill Gates — the world’s wealthiest man.

For Mr Shah, it is the dollar note and a signed autograph from the Microsoft co-founder that triggered his entrepreneurship spirit.

The 28-year-old says the brief interaction with Mr Gates nearly a decade ago when he was a finance student in the US inspired him to start Pisu Energy Services Africa (Pesa) Ltd in 2013.

Pesa offers energy management and audit solutions, and Mr Shah is now eyeing a piece of the lucrative geothermal energy sector.

“Everything starts with one dollar,” Mr Shah says, words that he says the Microsoft founder told him as he signed the autograph.

He says Mr Gates refused to sign a 100-dollar note, a 20-dollar note, before writing his name on a one-dollar note. It is this wisdom that inspired Mr Shah to venture into energy services, despite having no prior experience.

Mr Shah flew back to Kenya in 2008 at the height of the global financial meltdown and had a stint at his father’s company before starting his own business.

He saw an investment opportunity in the energy market following the regulations that required commercial premises, businesses and institutions to undertake energy audits to curb wastage and save costs by up to 35 per cent.

By 2013, only 19 energy auditors and firms had been registered to serve over 3,000 large power consumers required by law to undertake the audits.

“I saw an opportunity in the sector and nothing could convince me otherwise,” said Mr Shah who now has two in-house auditors and eight employees.

He used his savings and cash from his father to set up the company which initially focused on supplying electrical equipment to various utility firms, including Kenya Power and KenGen, before diversifying to energy audits.

The entrepreneur attributes his go-getter attitude to his father whom he says would force him and his younger brother to work at the shop as apprentices during holidays.

“We used to complain a lot, especially since our peers seemed to enjoy themselves during holidays. I now see the logic. I will be forever grateful to him,” said the entrepreneur who grew up in Kenya and pursued further studies abroad.

The energy firm is a subsidiary of Pisu & Company— which was started by his father in 1979 to supply food items, uniforms, power and relief supplies to government parastatals and non-governmental organisations.

Mr Shah says that the first level of energy audits involves diagnostic checks to assess energy consumption patterns and loopholes.

The firm charges about Sh400,000 for the pre-audit exercise which takes between a fortnight and three weeks. Auditors then determine whether to conduct an audit, based on the findings of the first stage, which is priced at between Sh1 million and Sh1.2 million, said Mr Shah.

This could take up to six weeks and is followed by a report with recommendations on efficient energy usage.

“Payment is done 50 per cent in advance with the other half at the end of the audit,” the father of one said.

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The business has grown over the years. This year his firm has already conducted six audits and did 30 last year. The entrepreneur is upbeat of growing his business as companies rush to beat the September deadline imposed by the Energy Regulatory Commission (ERC).

The energy audits help companies save millions of shillings in power bills. For instance, Colour Labels, a local manufacturing firm, is now paying slightly over Sh1 million a month in power bills down from Sh3.9 million.

“We have slashed our power bills by switching to LED bulbs and replacing our motors with high-energy efficient ones as recommended by auditors,” said Festus Mutie, an official at the firm.

Another firm, Malplast Industries, said it saves about Sh400,000 per month after replacing its bulbs with energy saving ones.

Under the Energy (Management) Regulations 2012, industries, business premises and institutions with annual power needs of more than 180,000 kilowatt hours (kWh) are expected to conduct energy audits at least once every three years.

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