When news leaked on Wednesday that Istanbul-based Celebi Aviation had acquired airport services firm Transglobal Cargo for $40.1 million (Sh5.17 billion), the owner of the Kenyan firm, Peter Muthoka, received many congratulatory messages from friends and acquaintances.
Among the younger generation who are active online, there was a quest to know more about the billionaire who had amassed such a fortune behind the scenes.
In the decades that he has been in business, Mr Muthoka rarely makes the news. When he does, it is usually in relation to a lucrative exit or a substantial donation he has made to a presidential aspirant or a national cause.
When reached for comment on the sale of the company offering ground handling services at Nairobi’s Jomo Kenyatta International Airport (JKIA), he expressed skepticism that the transaction warranted media coverage.
“It’s not a lot of money,” he said, noting that there have been larger transactions in the logistics market.
Ahead of the sale of Transglobal Cargo, the Kenyan firm had faced increased competition and risk of loss of major contracts, including that of Emirates SkyCargo.
Mr Muthoka will not discuss his net worth, insisting that he is required to remain humble as a Christian and that statements of personal wealth are a mark of pride.
Businessman Peter Muthoka speaks during at a past gala dinner at Safari Park hotel on August 18, 2016.
Photo credit: File | Nation Media Group
“The Bible says if you humble yourself before God and obey him, he will lift you up,” he says, echoing the message of Deuteronomy Chapter 28.
Quoting scripture, the businessman says he is also an ordained bishop at Chrisco Church, which he has funded for years, including the construction of a church in Machakos.
“Being an ordained bishop is what I consider to be the most important thing,” he said.
His description of the sale of Transglobal as a small transaction is likely due to decades of booking billions of shillings in exit deals or borrowing hundreds of millions of shillings from banks.
He was paid Sh1.8 billion in 2014 when Dubai’s Al Futtaim bought motor vehicle dealer CMC Holdings, a company in which the businessman was the top shareholder with a 24.7 percent stake.
“People online are saying that I am strategic and know when to exit, and that is true,” Mr Muthoka said.
The former shareholders of CMC agreed to sell the company after they had fought each other for years, with most of the top owners and directors accused of having improperly enriched themselves by irregularly taking out cash or through lopsided contracts when they did business with the motor vehicle dealer.
Mr Muthoka’s other logistics firm – Andy Forwarders (since rebranded to Acceler Global Logistics) — was accused of having overcharged CMC to the tune of Sh1.1 billion in a report by PricewaterhouseCoopers (PwC).
The PwC report was subsequently criticised by the South African audit firm Webber Wentzel for being vague in the absence of hard evidence, underlining the controversy that engulfed the company at the time.
Mr Muthoka said the CMC matter was a dark chapter that he wanted to forget about.
“That was a long time ago. It was malice,” he said, declining to discuss the matter further.
Turning to more pleasant matters, the businessman is willing to shed light on his connections to the country’s top leadership, including the current administration, which he supports.
He says he was 33 years old when he first met former President Daniel Moi at State House in 1992.
“I went to give him money. The President had a fund which he used in harambees and other donations,” Mr Muthoka said.
“I do not do business with the government. I support politicians because I am patriotic, and politics and commerce are intertwined.”
Leaving aside the potential to win contracts in the public sector, well-connected businessmen have several other advantages.
These include protection from bureaucrats, some of whom have been known to shake down entrepreneurs.
Mr Muthoka says he and his friends made the top private sector contribution of Sh20 million in 2005 when former President Mwai Kibaki was raising funds in the wake of a severe famine.
He said he also gave the largest amount of Sh25 million in 2017 when former President Uhuru Kenyatta was raising campaign funds at Safari Park Hotel at an exclusive dinner.
“I gave Sh25 million, and the President asked me to sit next to him at the high table. The most expensive plate was platinum, whose cost was Sh10 million,” Mr Muthoka said.
The businessman also donated 22 Toyota Prado cars, which were used by Jubilee Party candidates in the Ukambani region.
Mr Muthoka says he is also involved in philanthropy, including housing, feeding, and educating 400 children from poor families.
As for his next steps, he says he will use the payout from the sale of Transglobal to continue to invest in Acceler Global Logistics, which offers freight services.
He has already channeled some of the cash to repay debt that Transglobal used to upgrade its facilities.
Standard Chartered Bank Kenya has been a major financier of the businessman.
