Eric Kinoti has worked his way up to become one
of Kenya’s youngest self-made millionaires.
Behind his success lies a story of youthful
determination. At the age of 28, he is the proprietor of the now popular Shades
System East Africa, a firm that manufactures and supplies luxury tents across
the region.
“I started Shade System Company four years ago
aged 24 with only five employees and a seed capital of Sh60,000. I saw a
business gap because this sector was predominantly controlled by non-Kenyans,’’
said Mr Kinoti in an interview with the Business Daily at his office
in Westlands, Nairobi.
He sold eggs in the coastal town of Mombasa to
raise capital. He could source for the eggs and sell them at a profit to local
hotels and save his earnings.
He says a friend approached him asking whether he
could provide him with a tent for a function and after several dealings with
him, Mr Kinoti noticed that the business was thriving and also decided to give
it a try.
But the Sh60,000 he had saved was not enough, he
says. The logistics was a big headache and more cash was needed to see his idea
take off the ground.
Out of desperation, he approached a shylock who
gave him Sh2 million that set him on the path to success.
“I immediately hit the road doing marketing, for
my new business and was powered by zeal and passion for self-employment. After
two years of poor returns, things started to look up’’ he says with pride.
His first deal involved school supplies followed
by a military tender that saw him pocket over Sh15 million. Buoyed by the
unexpected development, Mr Kinoti knew there was no looking back.
He says the tents business is popular in Kenya
but that competition is stiff.
“Customers are receptive to new trends in the
market which have made us to diversify our products,’’ he says.
Mr Kinoti notes Kenya’s economic growth in the
last few years had positively impacted his business, with multi-national
companies setting base in the country.
He cites the growth of the hospitality and the
construction sectors which are his mainstay.
Shades System Company buys raw materials and
customises them according to the project specification and customer choice. The
firm imports raw materials from Turkey, South Korea and sometimes uses locally
produced ones.
A social man who links up with his peers and
mentees on Facebook to offer advice on entrepreneurship, his face lights up as
he reads some comments from his admirers: “You always make my day with your
words on entrepreneurship,’’ writes Linet Nteere. “If you were to be given Sh2m
now, what will you do with it?’’ asks Johnny Rasco on the social network.
“When you inspire these young people you are
creating self-employment because this gives them the drive to make their dreams
come true. Hope is important no matter the challenges,’’ he quips.
But demand for tents is mostly from the corporate
world. Individuals only come when there is a family or occasional outdoor
function.
He says corporates take most of his products for branding in a world where quality is paramount.
He says corporates take most of his products for branding in a world where quality is paramount.
To meet their demands, firms must invest in
machines and employ technical experts, something which he says his company has
achieved.
“We provide restaurant canopies, marquees,
swimming pool shades, garden umbrellas, branded gazebos, bouncing castles,
carpark shades among others,’’ he said, naming some of the products they offer.
His company is well known in East Africa, with
clients coming from as far as Ethiopia, Somalia, Rwanda, Congo, Burundi and
Southern Sudan.
The company also gets tenders from
non-governmental organisations offering humanitarian services in these
countries.
“If you want to thrive in any sector, observe
what successful people are doing and come up with a more unique structure and
strategy that will sell you to the public as a brand. When you imitate what
your role models are doing, you limit yourself, be different, ’’ he advises
would-be entrepreneurs.
A marketer by profession, Mr Kinoti worked in a
bank before he ventured into self-employment but insists that Rwanda is the
best place to set a business in Africa.
“In Rwanda an entrepreneur can register a company
within a day unlike in Kenya where there is a lot of bureaucracy when setting
up and their business policies are also friendly,’’ said Mr Kinoti who has
employed 50 people both directly and indirectly.
He maintains that brand awareness is a key factor
that defines the success of an enterprise.
And he should know, for his company is now worth
Sh150 million. His clients include East Africa Breweries, Toyota Kenya, the Department of
Defence and Bata Company, among other respected institutions in the country.
His competitors include Kenya Tents Company,
Kenya Canvas Company and Tarpo Industries.
What other secrets does he have for success?
“Be focused and keen to monitor emerging business
trends both locally and internationally and compare how similar enterprises are
performing in other countries,’’ he says. He cites strong teamwork and
competent staff for lifting his company above the crowd.
It has certainly not been an easy walk for a man
who was not lucky to be born with a silver-spoon in his mouth. Mr Kinoti has
overcome a lot of challenges and adds that the memories of the past are still
fresh in his mind. He recounts how he used to hawk eggs before he could go to
work.
Highly demanding
“The manufacturing industry is highly demanding due
to the capital required and I was forced to borrow from shylocks (informal
lenders).
‘‘I cannot encourage any potential entrepreneur
to borrow from these people because their repayment interests are too high and
sometimes you can even lose your business to them.’’
Mr Kinoti maintains that Kenyan youths are
innovative and that success comes from taking calculated risks. “Money is good
but the idea comes first,’’ he says.
His role models include renowned business
magnates Chris Kirubi and Donald Trump. According to him, the two have come up
with strategies that do not necessarily seek to benefit themselves but to
uplift the lives of people around them by creating job opportunities.
Apart from Shade Systems Company, Mr Kinoti owns
Safi Sana Home Support Services Limited, a company that offers professional
home and office cleaning services.
“We want to redefine the market and offer
services that will take us to the next level based on quality,’’ he said
Safisana trains and later employs the best performers.
Shade System is also set to open manufacturing
plants in Rwanda and Malawi to widen its footprint in Africa.
