Man turns serial failure into booming business

For 17 years, Nairobi’s Karogoto Fish and Chips operated seven outlets until the owner, Francis Njuki, closed shop citing a spike in the price of electricity that rendered the business unprofitable.

Mr Njuki was 43-years-old in 1989 and a father of four when he quit employment at Avery Kenya, a firm dealing in weights and measures gadgets, to concentrate on the food business.

“It is the best decision I made that placed my destiny in my own hands, but my then manager and even my wife would not hear of it. Sadly when business was booming electricity charges rose four times dealing my venture a fatal blow,’ he recalls.

Mr Njuki spent proceeds from the business on buying two plots in Eastleigh and another property in Karen (where he stays today) but continued living in Kariobangi.

He then ventured into selling mobile phones and their accessories, which saw him fly to Dubai monthly to replenish his stock that he sold at his two shops located on Accra Road. Here he also operated a booming cyber business.

But his venture in the wholesale mobile phones business was short-lived as he suffered a blow when technology ushered in new products that rendered his Sh1.2 million stock obsolete. “The mobile phone business is the worst to bet on. It is worse than a vegetable business where old stock is dipped in water, yellow-looking stalks plucked out and you are still in business.

But in mobile telephony an upgrade means that your gadgets are obsolete and not needed,” he recalls. Mr Njuki then concentrated on his real estate venture in Eastleigh and built 38 rental flats in three years, thanks to an array of loans borrowed from banks. “My friends described me as a risky borrower with suicidal tendencies, but no one can acquire meaningful economic progress without loans. However, you must conduct your feasibility studies well before seeking any loan,” he advises.Meanwhile, Mr Njuki identified a parcel of land in Ongata Rongai town where he bought half an acre and another half much later.

He set up a timber business on the land in 2005 and supplied real estate developers with products for three years but closed the shop following proliferation of timber dealers. The government’s introduction of punitive anti-logging laws also made timber too expensive to source, dealing the business the final fatal blow.

Mr Njuki sold all his machinery and obtained a new loan that he used to construct a two-storey building on the land housing 100 stalls, a hotel and a conference hall.

After three years of building Rongai Bees Park he ushered in tenants but quickly suffered an exodus due to its location outside Ongata Rongai town centre.

He closed the stalls and obtained approvals to build a swimming pool, gym, jacuzzi, sauna and steam bath.

After building the swimming pool, a modern gym is the new kid on the block.

It opened doors to fitness seekers last August and has attracted about 50 regular members so far.

“My research shows that the future is biased towards lifestyle fitness, which informed my latest Sh12 million gym to complement the swimming pool business,” says Mr Njuki.

Gym instructor Charles Odongo attributes the rapid growth of membership to skilled trainers, modern equipment and aggressive marketing.

Other than an electronic billboard outside the gym on the busy Magadi Road, the gym advertises its offerings on social sites including Facebook; Kenyans Health Fitness Tips by Charles Odongo; Instagram@Beespark_fitnessrongai; and YouTube, Charles Odongo.

Further, the gym organises ourdoor excursions that saw members trek across Ngong Hills last December. They will walk across Mt Longonot in March.

None of Mr Njuki’s five grown children is engaged in his businesses since his vision is for each to build their own empire. “My vision is different from theirs, which they must pursue to fruition. Dishing out hefty pocket money to children only serves to destroy their quest to pursue their vision. You make them dependent, unemployable, impatient and lazy,” he says.

Mr Njuki says he still relies on loans to boost his investments and has never regretted quitting his job to venture into business. His parting words: “Never quit when business fails, change with the times and try something else.”