How I built my premium home fittings company

From a young age, Stevens Muga always wanted to create something that would make a difference in the society.

He is now living his dream by helping homeowners to find the right fittings for their dream homes using his firm, Italian Kitchens, which specialises in installation, supply and design of premium quality kitchen, wardrobes, bathrooms, tiles and appliances.

“I love good spaces,” he says, noting that a well-fitted house makes the space a naturally pleasant place to live in.

In 2012, just as Kenya’s real estate sector was taking off, Mr Munga did some research and found out that there were a few people who were doing good fit-outs and their services were not cheap either. Due to the high cost, good fit-outs were the preserve of upscale projects.

Home and business owners who could not afford had to contend with basic interior fittings. This did not sit well with him and he set out to disrupt the market by stating his firm Italian Kitchens fwith about Sh20 million from a loan and savings.

“I wanted to offer interiors for people looking for good spaces without breaking the bank, so I decided to disrupt the market and combine the passion for space and provide a solution.’’

Initially, it only offered luxury kitchen designs from Italy but over time the firm has diversified the portfolio to include at least 10 product lines like wardrobes, bathrooms, tiles, vanities, water closets, home appliances and accessories.

“We have built the company brick by brick and a project at a time.”

Over the last nine years the company has been riding on the country's real estate sector for growth. Its clients are both developers building to rent or sell, and homeowners.

TASTES, OPTIONS

Mr Muga says the real estate and interior design market has evolved over time, with the average person building a home attentive to details due to exposure from the internet.

Developers, he observes, also want to offer value to potential buyers to sell the property fast.

“Buyers now have lots of options and will not settle for mediocrity in terms of finishes. It doesn’t matter their budget, they want value for money and are pickier than they were 15 years ago,” the art and antique collector adds.

In November Italian Kitchens opened its first retail store in Sarit Centre, Westlands targeting about 20,000 daily footfall in the mall and companies located in the area, and surrounding suburbs such as Parklands, Lavington, Kitsuru and Lower Kabete.

It also plans to expand its footprint to Ngong Road with another store at the Junction Mall or the Hub, then Mombasa and Kisumu.

“The plan is to open three to four branches over the next four years. The point is to bring this service as close as possible to our clients.”

“People value convenience. So, if we can meet that need for them and offer what they want, we will have achieved our goals.’’

The company has been able to weather tough periods over the years. The pandemic fallout particularly led to a decline in uptake of housing units in the market due to uncertainties and households’ decline in income.

“The Kenyan business terrain is not easy. You really have to be adaptable, understand how to navigate it.’’

Italian Kitchens is seeking to raise $2 million (Sh226 million) from venture capital (VC) firms.

The funds will be to open retail stores in Uganda, Tanzania and Nigeria.

AT 10 YEARS

The strategy will involve working with local partners and finding anchor projects in those countries, who understand the nuances of those markets. As they execute the project, they then set operations instead of first making the investment and prospecting.

“We are looking at VC firms. If we can get a private placement deal with the high-net-worth individuals, it is still an option we can look at.’’

“We been around for 10 years and are past the early business growth stages. We are looking to go into series A funding to raise capital to shore up our capacity to manage this expansion. We want someone who will plug into our vision. This is the right time for us to get that done. Because we are ready for the take-off.”

Mr Muga is betting on the expansion in the retail sector, projecting to maintain a 25 to 40 percent annual revenue growth.

“Retail will be the future and that is why we want to be a brand that is everywhere and a niche for anyone looking for finishes.’’

The company started with him as the operator, before adding his co-director, and now has 10 employees, outsourcing other functions such as human resources, IT services and some installation personnel for sites and projects.