KCB VENTURE 1 final

TRENDS INTEL INDUSTRY COUNTY PURSUITS
FDI OUTLOOK BRIGHTENS BREXIT
KCB BANK FUNDS HOTELS’ BOOM WAJIR’S FIRST TARMAC ROAD THE SHAZA CLUB
Not for sale
Corporate Magazine
| Oct - Dec, 2016
Crown paints
Kisumu red
How first
tarmacked
road is
transforming
Wajir
Narendra Raval
MAN
Focus on
the hotel
industry
OF
STEEL
Devki Group CEO on the journey
to a multi-billion shilling empire

BANK
KCB APP, as convenient as
you want life to be.
Download the KCB App from your app store
to enjoy a variety of exciting financial and lifestyles services
including mobile banking, the latest news, forex rates,
NSE stocks prices and so much more
For more information, visit www.kcbbankgroup.com
2 |
Regulated by the Central Bank of Kenya

11
VW arrival in Kenya
boosts FDI portfolio
Nairobi viewed favourable
by investors looking for a
gateway to East Africa’s
400-million people market
26
A dash of colour
20
Radisson Blu makes a splash
KCB Bank’s Sh5 billion loan to
hotel developer is tranforming
Upper Hill as the face of
Kenya’s financial discrict
38
Stay. Dine. Meet. Join.
The Shaza Club
You can own a piece of this
paradise in the North Coast
Rakesh Rao explains how
from the Kisumu plant,
financed by KCB Bank, Crown
Paints can use Lake Victoria
to send products to Mwanza
and use the road to transport
our products to Rwanda and
Uganda
16
Watching the Lions
having bufallo steak for
breakfast at Ole Sereni
Four men are sitting in a
lounge bar. They are about
to make a decision that will
transform the hospitality
industry in Kenya
32
How first
tarmac road is
transforming Wajir
According to Wajir County, majority of the
700,000 residents had never seen tarmack
before. That is now history for this north
eastern town
| 3

FDI OUTLOOK BRIGHTENS BREXIT
KCB BANK FUNDS HOTELS’ BOOM WAJIR’S FIRST TARMAC ROAD THE SHAZA CLUB
KCB Corporate Magazine | Oct - Dec, 2016
EDITOR’S NOTE
A bold new Venture
TRENDS
INTEL INDUSTRY COUNTY PURSUITS
Crown paints
Kisumu red
How first
tarmacked
road is
transforming
Wajir
Not for sale
Our intention
is to guide you
in carving the
appropriate
niche for your
business and
ensuring that
your business
flourishes, as
it should
T
here are two things
about firsts; one is
that they are sacred
and two is that
we should never
run out of them.
KCB Venture is one of our many
firsts and as such, we take great pride
in welcoming you to our newest
initiative.
This is the ideal magazine for you
if you are looking to get ahead in the
world of business and great banking
partnerships.
KCB Venture offers fresh insights to
keep you in touch with all key areas of
economic drivers. These insights will
help you keep ahead of the pack, give
you unvarnished access to your peers
and present you with a bird’s eye view
of the business landscape.
Our intention is to guide you in
carving the appropriate niche for
your business and ensuring that it
flourishes, as it should.
Our brand purpose is an excellent
representation of our commitment to
you.
In this magazine, we have placed
special emphasis on cementing our
relationships in ‘simplifying your
world to enable your progress.”
Which brings us to the two
propositions at the core of this
initiative.
We believe our success is based on
the achievements of our clients and in
doing so, raises the profile of business
partnerships in the country.
It’s time to tell the stories and in
particular each client’s unique niche in
the marketplace.
Our first issue centers on Narendra
“Guru” Naval - Man of Steel.
His story is full of inspiring nuggets,
from his humble start in Gikomba to
establishing himself as one of the most
successful businessmen in Africa. He
has ventured into aviation, cement
manufacturing and is now embarking
on a huge project to generate
electricity from geothermal.
We have also spotlighted
partnerships in the hospitality
industry. Radisson Blu as you will
read is a world-beater. It started off
as an idea to put up apartments and
metamorphosed into what it is today.
Ole Sereni is another client of KCB
Bank that has positioned itself as a
business hotel in the city. Guests will
occasionally wake up to the sight
of hungry lions having a buffalo for
breakfast, barely four kilometres to the
CBD.
And how about being a part of
history by bringing the first tarmac
road in Wajir County? Locals are
known to take the long walk from the
dry interior to get a feel of tarmac
under their feet.
Further in, we have other stories
touching on the market of use to you
and told in great quality by a top-notch
editorial team.
Welcome aboard and enjoy the read.
Editor in Chief
Narendra Raval
MAN
OF
STEEL
Devki Group CEO on the journey
to a multi-billion shilling empire
Focus on
the hotel
industry
KCB Group Head of Corporate
and Regulatory Affairs
Judith Sidi Odhiambo
KCB Group Marketing Director
Angela Mwirigi
KCB Bank Kenya Marketing
Brand Manager
Charity Wanjau
KCB Group Corporate
Communications, Kencom
House, Nairobi
Tel:+254 (20) 3270199 or +254 (20)
2229685
www.kcbbankgroup.com
Facebook: KCB Group
Twitter: @KCBGroup
Instagram: @KCBGroup
Give us your feedback at:
corporateservice@kcb.co.ke or
corporate@kcb.co.ke
KCB Venture is published for
KCB Group by Oxygène MCL
venturemagazine@oxygene.co.ke
www.oxygene.co.ke
Editor in Chief
Judith Sidi Odhiambo
Sub editors Mutahi Mureithi,
Mugumo Munene, Nick Wachira
Contributing writers Biko
Jackson, Nyambega Gisesa
KCB Venture is available at
all corporate branches and at
select hotels and businesses in
Nairobi.A digital copy is available
free at venturemagazine.com.
©No part of the contents may
be reproduced without prior
permission from the publishers.
All advertisements and noncommissioned
texts are taken
in good faith. While every care
is taken to ensure accuracy in
preparing the magazine, the
publisher and KCB Venture
assume no responsibility for
effects arising therefrom.
4 |

OPINION
Growing Business
Through Partnerships
Nairobi viewed favourable by investors looking for a
gateway to East Africa’s 400-million people market
By Moezz Mir
I
dentifying the right strategic
partner to help a business
grow and succeed is no easy
task. It is a labour of pain,
since partnerships are
anchored on mutual
trust, finding synergies between the two
parties, and essentially settling on the right
mix of attributes that will grow the business
without creating friction.
Companies therefore need financial partners
who understand their goals and can help
achieve its objectives. Building and fostering a
relationship with a business partner can make
all the difference in its future success.
What is then required of the ideal business
partnership is the application of expertise and
a unique set of skills to help build a strong
strategy and offer honest alternatives about
what they can and cannot do for a company.
Without having the relationship framework
from the beginning, there is all the likelihood
that the business will be adversely affected.
As with any new venture, it’s challenging
to find the right fit in a strategic partner. That
is why KCB Bank strives to build and grow
relationships with its clients right from the
start.
KCB Bank has stepped in to play an
important role in helping suppliers and
other service providers solve their business
challenges. By providing tailor made financial
solutions, the bank has earned the stripes over
decades of relevant experience in the industry
as a trusted and reliable financial partner.
Regardless of the industry in which your
business operates, having an ally on your side
in the form of a strategic partner will push
your business to the next level. A strategic
alliance will give you a competitive advantage
and an opportunity to access a broader range
of resources and expertise. This means that the
partnerships we create offer clients distinctive
skill sets and infrastructure access that are
above the competition.
5 |
For us, successful partnerships and alliances
rely on the principle that the work involved in
maintaining a partnership, and the benefits
from the alliance are equally spread, in a
mutually beneficial way.
It has been proven that the best results from
a strategic partnership generally occur when
each partner delivers excellence in service
areas that are different but related to what the
other party brings to the table. That way, there
is a play of strengths and expertise on the table
for maximum utilization.
However, not every detail of an operation
can be planned for, and that the success of
an endeavor depends on the amount of trust
and communication between the parties.
At KCB Bank, we are keen on shared
prosperity that will require unprecedented
efforts by all developing economies in the
region to unleash individual sector-led
growth. This reaffirms the Bank’s commitment
to supporting entrepreneurship as a key driver
of growth and development.
Entrepreneurs have long been the backbone
of local economies, and, by providing
new solutions to old development
issues, financial institutions can
assist in positioning them as
key drivers of sustainable and
inclusive growth.
We as an institution have
a significant role to play
in unlocking economic
growth potential and
accelerating growth
and development. The
efforts required will not
be trouble free, but they
are essential if Africa is to
strengthen its competitiveness
in a challenging global economy.
The Writer is the Director,
Corporate Banking at KCB
Bank Kenya
“By providing
tailor made
financial
solutions,
the Bank
has earned
the stripes
over decades
of relevant
experience in
the industry
as a trusted
and reliable
financial
partner.”
Moezz Mir
| 5

TRENDS & INTEL
Digital cash
World goes
cashless
A
ccording to the third Annual Digital Money
report released in 2016, a partnership
between Citi and Imperial College
of London, emerging markets
governments have a big role to
play in entrenching the drive
towards a cashless society since up to two-thirds of state
disbursements are still done through cash or cheques.
Citi estimates $150bn
could be saved globally
every year by digitising
The abundancy of
cashless payment
systems in the region
has also had a positive
effect for many who
prefer the convenient
alternative method of
payment.
7m
The number of
customers the KCB-
Mpesa platform has
attracted since inception.
The platform disburses
betweeh Ksh20 million
and Ksh 30 million daily.
only a quarter of
these payments, by
eliminating the cost of
cash transactions and
reducing fraud.
Another $150bn
annually could be saved
if only a quarter of retail
payments were digitised,
while up to $100bn
could be saved through
digitising a quarter
of SME collection
transactions.
Ideally, traditional
means of trade would
naturally advance
with the course of this
technological revolution.
Growing use of financial
technology is enhanced
by various companies
looking to reduce the
use of traditional cash
exchange. To advance the
efficiency of their economies, various countries have also
turned to cashless systems. South Korea is well known for
its high preference use of cashless technology. According
to the Korea Times, “The Bank of Korea is planning a
“cashless society” by 2020. If a shopper buys a 9,500 won
item and pays with a 10,000 won banknote, for instance,
the shopper will be credited 500 won to his or her prepaid
card instead of getting a 500 won coin in change.”
KCB M-PESA
12bn
KCB MPESA is a
revolutionary mobile
solution to the unbanked,
enhancing the financial
inclusion agenda of the
bank.Latest statistics
show that at least 40%
of the loans processed
through KCB MPESA are
below Ksh 500 and 57%
are below Ksh 1000.
Over the last two years, a
total of Sh12 billion have
been disbursed on this
platform.
QR CODES
Visa has launched its mVisa
QR code-based mobile
payment service in Kenya.
With mVisa, consumers can
directly access all of the funds
in their bank accounts to pay
merchants or individuals.
Merchants will provide a
QR code that will have their
payment details.
NFC
Near Field Communication
(NFC), goes way beyond
making payments using
smartphones. After all,
there are also many credit
and debit cards which
contain NFC chips. These
speed up POS payment
processing by enabling
smaller amounts to be
paid quickly and easily
without requiring a PIN or
signature.
After launching the
payment application on
your phone, the phone is
tapped on the credit card
terminal and a connection
is made using NFC. From
there, the payment
finishes processing the
same way it would in a
traditional credit card
swipe transaction.
6 |

Facts:
Agriculture
contributes about 26%
of the country’s GDP
Agriculture employs
about 75% of Kenya’s
population.
Agricultural produce
exports account for
nearly two thirds of the
total domestic export
100,000 - the
individual number of
youth and women KCB
Group has committed
to funding in the
agricultural sector
INDUSTRY
KCB Group commits
to fund farming
A
rguably, every person on the African
continent has either grown up on
agriculture or has been educated
on agriculture - an indication
of the importance this sector
holds in our lives and the
economy.
The sustainability of livelihoods is dependent
on the bulk of investments made. Subsequently,
an enormous multiplier effect is washing over the
value chain (from the farmer, to the seller, to the
consumer then to the economy).
In an effort to enable farmers transform their
farming practices from subsistence farming to
commercial businesses through financial inclusion,
KCB Group committed Kshs 35 billion (US$ 350
million), 5 percent of their lending book, towards
lending and capacity building in the agricultural
sector over the next five years. This funding is
expected to impact the lives of more than two
million farmers including 100,000 youth and women
who will now have access to affordable credit
facilities.
Furthermore, the partnership between KCB
Group and MasterCard Foundation will see the
establishment of a Kshs 3 billion (US$30M) program
that allows small holder farmers access to credit
facilities and market information through their
mobile phones in Kenya and Rwanda. Additionally,
the partnership has seen the Bank also commit to
spending $200 million (Kshs.20 billion) in credit
to farmers under the programme dubbed KCB
MobiGro, manifesting its commitment towards
supporting the agricultural sector in the region.
By providing accessible funding coupled with
training opportunities for the smallholder farmers
and pastoralists, the bank aims to drive further
growth and build on the strength of the sector
seeing the significant and immediate impact it has
to our country.
Ksh20bn
The amount that KCB Group has committed in credit
to farmers under the programme dubbed ‘Mobigrow’
| 7

TRENDS & INTEL
NEW HEIGHTS
Redefining
Nairobi’s
skyline
450
The KCB Plaza is a
21 storey building
including a car park
that can accommodate
450 vehicles on five
parking levels
U
pcoming KCB Bank Plaza has been
recognised as the leading
commercial building in
Kenya and the
region by a
panel of experts. The panel consists
of pioneers in the architectural
field included Shamla Fernandez
from Kenya, Janfrans van der
Erden from the Netherlands and
Dr. Allan Kenneth Birabi from
Uganda. Announced earlier this
year, the Plaza is celebrated by the
association for its sustainability
efforts. The structure contains a
natural ventilation system that
maintains a zero dependency
on automated systems for
cooling support; instead, the
structure is supported by the
sky courts and atrium design.
The striking design of the aluminum shading
fins provides a natural mechanism to
reduce indoor temperatures. Innovative
accents are pronounced throughout the
Plaza including an apparatus that can
harvest rainwater and treat it. The
Plaza preserves the theme of modern
design using solar power beams to
reduce electricity costs. Construction
began in December 2010 and
concluded in 2015. Located in the
fast-developing financial district
in Upperhill, the Plaza is in the
company of Britam Insurance,
UAP Insurance, the World Bank
and Nairobi Hospital. The
unique capabilities of the Plaza
to express pioneering design
while using environmentallyfriendly
techniques makes it a
real standout in the Kenyan
market.
“To enhace day lighting, there is
extensive use of light reflecting
metallic silver finish on the solar
shading fins, use of high light
transmittance glass and louvered
horizontal shading.”
8 |

CLIMATE CHANGE
Cleaner
energy:
leading
from the
front
Kenya is shaping up to
be a distinct leader on the
global stage in clean energy.
The country is on track to
become the largest producer
of geothermal energy on the
African continent by the year
2022.
Geothermal energy
is classified as clean,
sustainable energy that is
produced from heat sources
from the earth, including
magma and hot rocks. The
government outlined a longterm
strategic goal in the
Kenya Vision 2030 to provide
nearly 70 percent of Kenyans
with renewable energy.
Currently, the economy
relies on traditional sources
including wood fuel and other
biomass that account for 68
percent of the total energy
consumption.
The country is aiming
to diversify its sources
of energy to advance and
urbanize the economy. The
increased use of green
bonds or funds aimed to
back projects that support
green initiatives, can enable
support clean energy, and
as a result, source for more
long-term capital for greener
investment.
Green bonds as an
attractive investment
portfolio are increasingly
becoming popular.
Key country
indicators
IN THIS ISSUE of KCB Venture
we looked at some growth
indicators and trends.
We have also looked at
global trends to put things in
perspective.
Last year, the global slump in
oil prices affected oil exporting
countries, though for oil
importerts like Kenya, it was a
blessing in disguise.
In fact, the generally stable
inflation rate was driven by
the low oil prices among other
drivers.
Electricity production
continued to be stable, with
geothermal posting good growth
further supplementing the
government’s drive towards
clean energy.
Quantity MT
Price Ksh/Kg
| 9

EU POLITICS
How Brexit
will affect
Kenya
J
une 23rd 2016 marked the day that
Britain made an official exit from the
European Union - a day that will
forever go down in history. This
decision caused widespread
panic, especially among the
African nations, due to their huge reliance on
Britain.
For Kenya, one of the greatest impacts Brexit has
had is on the flower industry with more than a third
of all flowers sold in Europe coming from Kenya. A
butterfly effect has unsettled the market owing to
the fact that UK is the second largest buyer after
Netherlands.
Despite all these setbacks that resulted from the
Brexit, all hope is not lost.
1
A set of agreements between regional African
blocs and the European Union, as well as
between African countries themselves have
and will curb the negatives. A solid example is the
Tripartite Free Trade Area Agreement that creates a
free-trade zone stretching from Cape Town to Cairo,
covering 26 countries and representing almost half
of African Union member states.
2
Brexit could also possibly result in fairer
trade deals for Africa, both with Britain and
the EU. But until Britain’s post-Brexit trade
policy is established, it is not possible to assess
how progressive it may be. A slightly debilitated
EU however, may be forced to compromise more,
enabling African countries to secure fairer deals.
3
For the UK and its African Commonwealth
partners, stronger trade relationships are
mutually beneficial. British officials have
suggested that African farmers could benefit in any
new trade deal with the UK because they could
sell their produce at rates that would be attractive
to the UK market. For Kenya and South Africa,
whose roses and wine respectively are popular in
the UK, Brexit could mean an end to the restrictive
Common Agricultural Policy (CAP).
4
Finally, the pound is not so sterling anymore.
As of September 2016, buying the pound
currently stands at Kshs 131.34. This is good
news for importers seeing that the exchange rate
has drastically plummeted. The bad news is that
exporters will earn less in Kenya shillings!
Ksh23bn
The
amount Kenya exports to two of the biggest European destinations, the UK
and the Netherlands. Trading statistics for the first quarter of this year show
that the two EU states together accounted for 18.3 per cent of total exports.
10 |

TRANSPORT
Lightening
the Load for
Nairobi
A light rail system will be
constructed in Nairobi to ease
congestion. The light rail system
will run along nine major populated
suburbs not supported by the
current transit structure. Included
in the nine suburban areas are
stations in Ruiru-Thika, Juja
Road-Kangundo, Jomo Kenyatta
International Airport-Athi River,
Lang’ata Road-Karen and Upper
Hill-Ngong.
The rail system will also include
stops along the Eastlands area
including Kabete-Kikuyu, Gigiri-
Limuru and Outer Ring Road. It will
connect the nine Nairobi suburbs
to the city center, which will end at
the Nairobi Railway Station in the
Central Business District.
The project, estimated to cost
$140 million, will be supported by
the wider Metropolitan Mass Rapid
Transport System (MRTS). A recent
survey of Nairobi says that the city
contains the world’s fourth most
congested roads.
Additionally, the Kenyan
government has estimated that
traffic jams cost $578,000 a day
in lost productivity. The MRTS will
aim to provide a city-wide heavy
rail, light rail and rapid bus transit
to ease costs and congestion
rates. The cost of the project will
be financed by various private
investors.
Ksh57M
The Kenyan government
has estimated that traffic
jams cost Kshs57 m a day
in lost productivity
FDI
VW arrival in Kenya
boosts FDI portfolio
Nairobi viewed favourable by investors looking for a
gateway to East Africa’s 400-million people market
C
ar maker Volkswagen
is the latest major
entrant into the
Kenyan market
as the country
continues
to boast of rising foreign direct
investment arriving on its shores.
Volkswagen is expanding its
commitment in Africa with local
production of the Polo Vivo in the
Kenyan town of Thika near Nairobi.
According to the German
automaker, the project which will
be jointly realised with local firm,
DT Dobie, will be Volkswagen’s
third production facility in Africa –
alongside the South African factory
and a local production facility in
Nigeria. It is planned to build up
to 5,000 units of the Polo Vivo per
year at the plant operated by Kenya
Vehicle Manufacturers (KVM) from
2017.
“We are taking the successful Polo
Vivo from South Africa to Kenya
to leverage the enormous growth
potential of the African automobile
TRENDS & INTEL
market and participate in its positive
development. This compact model
is the best-selling car in the Sub-
Saharan region – so it is the ideal
entry model for the promising
Kenyan market,” said VW’s Thomas
Schäfer commented at the signing
ceremony.
“With this move, we are
strengthening the brand’s overall
position in Africa and taking an
important step towards expanding
our commitment in the region,”
Schäfer continued.
During a visit to State House
by the VW team, President Uhuru
Kenyatta said: “The investment by
the Volkswagen Group in Kenya is a
key milestone in my administration’s
determined push to grow the
manufacturing base and industrialise
the nation.”
Kenya is one of Africa’s emerging
markets. The country plays a
prominent role among East African
nations and with a GDP of some US$
63 billion, it is one of the strongest
economies in East Africa.
| 11

COVER STORY
‘Guru’
Narendra
Raval, the
Man
Devki Group Chairman reveals how
KCB Bank grew with him during the
group’s formative years
of
Steel
12 |

COVER STORY
Stepping into the spacious
reception of Devki Group of
companies in the dusty little
town of Ruiru, one is met by
an antiseptic environment
and tranquility that belies the
reality outside the offices.
A large TV screen
welcomes you to the head
office of the largest steel
factory in the region. On
the screen is a looping
documentary on the journey
the company has taken to
become the behemoth it is
today. Donning the walls are
pictures of the Chairman,
Narendra Raval in various
poses with Very Very
Important People.
There is one with former
President Daniel arap Moi.
There is another with
Narendra Modi,
India’s Premier who,
during a recent
state visit to Kenya,
squeezed some
time to visit his old
friend Raval, or
Guru as he prefers
being referred to, in
his house in Nyari
estate. The other is
that of Raval with
Mwai Kibaki, Kenya’s
immediate past President.
The most telling picture
however is that of Guru
adjusting Uhuru Kenyatta’s
tie right where Raval’s cement
and steel companies thrive.
“The President is my friend
and we have known each
other for a long time,” says
Raval as he ambles around his
massive office. And it is a very
big office.
The entire top floor of
“I started off at
Gikomba in the
cheapest store
we could get
because nobody
was interested
in the area as it
was considered
a very unsafe
place,”
the office complex is a case
study in good taste; ambient
lighting covers the entire
floor; the furniture is what
you find in those expensive
catalogues while the walls are
decorated with art and rather
pricey looking wallpaper.
The floor is bedecked with
the most expensive Italian
marble, a turquoise blue
there, a gray and blue tile
thither. Yet, he wasn’t born
with a silver spoon.
“I started off at Gikomba
in the cheapest store
we could get
because nobody
was interested in
the area as it was
considered a very
unsafe place,” says
the former priest.
Having seen a
gap in the hardware
business, he took a
plunge by sinking
his savings in buying
and reselling steel. The
Kshs 3,500 shillings a month
in rent for 5,000 square feet
was considered steep for the
time and place but Raval was
undeterred. It was a tough
time for him and the country
in general. During the late
eighties and early nineties,
Kenya was going through the
labour pains of the advent
of multi-partyism and the
epicenter was usually the area
around Gikomba.
| 13

COVER STORY
“It was very nice of
KCB Bank what they
did to me. That’s why
till today, I tell my
board of directors that
we will not ever leave
KCB Bank because
they understand
the Kenyan market,
they understand
the people, and the
business way of
Kenya. “
4,000
The number of
employees employed
directly by the Devki
Group. Thousands
more are employed
indirectly.
“All the riots were starting
around where our shop was,
on Kombo Munyiri road. We
endured a lot of tear gas”, says
Raval rather mistfully.
He started off buying steel
from the existing mills and
within five years, his store
had become the largest steel
hardware shop in the area.
Having sold steel and seen
the margins manufacturers
were making, Raval decided
to backward integrate by
venturing into manufacturing.
At the time, there were only a
couple of steel rolling mills in
the country that basically had a
tight hold on the market.
Raval found a site in Athi
River, 30 kilometres from the
city centre, where he planned to
make his dream a reality. “We
bought 25 acres at Sh35,000
an acre. At the time, the
whole place was nothing but a
thick bush. Only Kenya Meat
Commission had established in
the area,” he says.
Having bought the land,
Raval was left penniless. He did
not even have enough money to
put up a boundary wall.
“I used a have a pick up
Toyota KXU 905 (today I don’t
remember the number plates
of any of my cars but this one
I remember which means
whoever stays with you in
difficult times you will never
forget them) that I used to
ferry stones from the quarry for
building the wall”, he says.
After the fencing project,
Raval approached KCB Bank
for financing to set up his steel
rolling mill. He had never done
a business plan before, but he
gave it a shot. It was shy of the
bank’s expectations and as a
result, he hired an expert who
helped him prepare a proper
plan.
A KCB Bank manager, whom
14 |

COVER STORY
he fondly remembers as Mr.
Ndambuki, kept encouraging
him during the loan application
process. Finally, he applied and
received US$100,000 (at the
time equivalent to Sh36 million)
which he used to purchase his
first steel rolling equipment.
Production would start after
KCB Bank gave him a letter
of credit to import the raw
materials needed to kick off the
business.
But a setback was to strike
immediately he started
production. The global price
of steel not only crashed
spectacularly, but a couple
of local competitors, keen on
running Devki out of business,
ganged up by undercutting him
on the price.
Raval’s steel was piling up in
the godown and the market was
flooded.
“For five months, I could not
pay salaries for my employees
but they stuck by me. It was
very nice of my bank and the
Kenyan workers, some of whom
are still working with me, to
stick by the company,” says
Raval.
To his relief, KCB Bank did
not push him for repayments
but instead restructured
the facility until the market
recovered. Fortunately, fate
was on his side. When prices
recovered, the only steel
available in the market was
from Devki; all the competitors
had cleaned out their stocks
because they had been selling
their product cheaply to force
Devki out.
“I woke up one day and I was
the only one with steel in the
store. I got a good profit margin
at that time because I had the
goods and nobody else had it”.
He made a cool US$1 million in
profit.
Today, Devki is the largest
steel firm in the region, with a
production capacity of a quarter
million tonnes per year spread
over several factories. The firm
employs over 4,000 employees
directly and tens of thousands
indirectly and, according to
FORBES magazine, Raval is
one of the richest men on the
continent, with a net worth
of some US$400 million. The
Devki group has a turnover
of Kshs65 billion according to
FORBES.
The company makes over
300 items, ranging from shoe
nails, roofing sheets, steel bars,
wire mesh, barbed wire among
others. The company also
makes its own oxygen on site.
“It was very nice of KCB
Bank what they did to me.
That’s why till today, I tell my
board of directors that we
will not ever leave KCB Bank
because they understand
the Kenyan market, they
understand the people, and the
business way of Kenya. I have
stopped doing business with
many other banks, but I will
never leave KCB Bank,” says
Raval.
Do you have a dream?
Contact : +254 (20) 3270199
corporateservice@kcb.co.ke
BRANCHING OUT
Devki’s
other
ventures
The Devki Group has also
invested heavily in cement,
aviation and energy, partly
through financing from KCB
Bank Kenya.
The group owns National
Cement Company, the makers
of the Simba Cement brand.
Raval says that all he wanted
was to act as a disruptive
force in the industry and
sell his products below the
prevailing prices. Today,
Simba sells for Kshs575 a bag
compared to the competition’s
Kshs675.
$400m
Narendra Raval net
worth (Forbes).
“I decided that I will not
only invest for profits, but
make cement affordable to
millions of Kenyans,” says
Raval. “I feel KCB Bank is my
own bank. The bank has never
let me down in the thirty years
that we have worked together.
I can put my hand on my heart
and say that I will not go
wrong with this bank and they
will stand with me in good and
bad times.”
| 15

16 |
Watching
the Lions
feast
at Ole
Sereni

INDUSTRY FOCUS: HOSPITALITY
Four men are sitting in a
lounge bar. Which bar isn’t
important. What’s important
is what is about to transpire
in that bar. As lore goes,
the four gentlemen are
knocking back scotch and
bourbons and avoiding the
complimentary peanuts
because they want to stay
in shape. You see, they are
golfers, these men, albeit
amateur golfers.
They often do a round of
golf together in Kabete and
their wives exchange food
recipes. Once in a while,
they take their children for
a holiday somewhere where
they kick about a ball on a
green lawn, or build a castle
on a beach. So yes, you could
say they are great chums.
This is almost 15-years ago.
The guy with the white
socks is Kul Bakoo, who you
might know as the owner
of Kul Graphics in present
time. Next to him is Bobby
Jandu the owner of Allied
Plumbers; they do a lot of
plumbing, air conditioning,
water treatment and all.
The one holding the glass
with his left hand is Mso
Dave Bola; he’s based in
Zambia now, running an
insurance business. Lastly
there is the tall one with
a Godfather sneer. That’s
Nazir Noobin. He, together
with Raju started CopyCat
in 1981. It blew the roof: 32
years later and CopyCat is
now a hundred million dollar
company.
What had previously
happened was that the
American Embassy, which
bought the building they
were now deliberating upon,
after the bombing of their
embassy in 1998 had just
moved to a new building
in Gigiri after selling it
back to Kul Bakoo for a few
hundred million shillings.
The three gentlemen had
pooled resources to help
Bakoo buy it back. Then they
had tried to sell it off with
no success. It was a fortress,
the place; steel, reinforced
walls, blocked windows,
boulders on the side facing
the National Park. They
didn’t know what to do with
that 40,000sq ft building.
Someone had swirled his
scotch and said, “Let’s do a
hotel.” There were chuckles
of cynicism. Nazir sipped
| 17

Extent of
KCB Bank
financing
They knocked on KCB Bank’s
door and asked for Sh650
Million loan. The Bank
obliged. They signed up a
management contract with
a company from India called
Sarovar Hotels after opening
the doors to the hotel on the
1st of November 2009.
KCB Bank also provided a
dollar based facility ($21
million) for phase two of the
project. “One of the basic
things is that KCB Bank
agreed to give us the money
in US Dollars which was very
appropriate for us in terms of
offering a bit of a relief on the
way our projections would
work.”
650m
The first loan from
KCB Bank for Phase
one of the Ole
Sereni hotel project
his Johnnie Walker Black and
groaned: none of them had any
hotel experience. What did they
know about running a hotel?
This was mad, gentlemen. But
they are businessmen, selfmade
men, risk takers, their
hearts bled for adventure and
enterprise. So just like that
they agreed to start a hotel.
Ole Sereni Hotel was born.
They knocked on Kenya
Commercial Bank’s door and
asked for Sh650 Million loan.
The Bank obliged. They signed
up a management contract
with a company from India
called Sarovar Hotels after
opening the doors to the
hotel on the 1st of November
2009. They only had 45 rooms
for a start. The gym was not
ready, the salon was not ready,
the specialty restaurant was
not ready. Things didn’t pick
immediately but pick they
did. Now they are at 84%
bed occupancy and almost
about 96% on revenues versus
budget.
Does having four directors
who are friends coming to
run a business complicate
things? “Not at all,” Nazir
stresses. “The relationship
between us four people is a
very strong relationship. We’re
from different backgrounds,
different religions but before
this, we’d already known
each other for 30 years.
We’re friends, yes but when
it comes to business, it’s a
totally different ball game,
18 |

INDUSTRY FOCUS: HOSPITALITY
we all respect each other in
terms of what we are good at.
So everybody respects each
other’s contribution.”
Early this year, a pride of
lions killed a buffalo right
next to the watering point a
stone-throw away from the
hotel. For almost a week,
the lions didn’t move from
the kill. Guests would wake
up daily to find them lolling
about the watering point,
eating and napping and giving
everybody a front-seat show.
That is one of the charms of
Ole Sereni Hotel, this ringside
seats to the spectacle of
Nairobi National Park. From
the Eagle SteakHouse you can
sink into your rich leather
chair and feast your eyes on
the park. Or at sunset, a glass
of cognac in hand, sit at the
Water Hole Snack Bar and
watch the sun paint the park
orange, and then, red, with a
sharp paintbrush of warmth
and light.
However, the turbines of
Nairobi’s enterprise never
sleeps. Hotels are coming up
every month, some positioned
facing the park, threatening
to bite Ole Sereni’s pie. They
seem unperturbed. Rather,
they are unperturbed. “We are
not focused on what others
are doing,” Nazir says, “We
are focused on developing a
sustainable brand, something
that will stand the test of time
as a beacon of hospitality.”
To prove their point, they
went back to knock on the
door of their only friend who
has held their hands since that
day the dream was born; KCB
Bank. The bank has always
tailored their financial services
to what they need. They told
the bank they wanted to
embark on a bigger project:
Ole Sereni 2:0, or just OS2.
The project entails the
expansion of the existing hotel
with an additional 154 rooms,
three large conference rooms
with a capacity of 800 clients
and three basement parkings
with a holding capacity of 500
vehicles. They will have to
employ 150 more employees.
The project is meant to be
completed in two years time.
There is excitement and
enthusiasm all around. Ole
Sereni is taking it to the next
level and with it comes great
hopes. When you walk through
the foyer of the hotel and up
one of the winding staircases,
you will see a golden sculpture
of a leopard. It’s more than
a decoration. It’s what Ole
Sereni seems to embody; the
resilience and stealthiness of
a leopard. The hotel will not
make noise, but it gets its prey
all the time.
Do you have a dream?
Contact : +254 (20) 3270199
corporateservice@kcb.co.ke
HOSPITALITY
Ole Sereni
partnership
with KCB
Bank
“One of the basic
things is that KCB
Bank agreed to give
us the money in US
Dollars which was
very appropriate
for us in terms of
offering a bit of a
relief on the way our
projections would
work.”
Bhakoo Co-Director
at Ole Sereni.
Ole Sereni has grown over
time and continues to prosper
even as many hotels open shop
in Nairobi, competing for the
same pie. They are currently
embarking on a project called
OS2, or Ole Sereni Phase 2. The
project entails the expansion
of the existing hotel with an
additional 154 rooms, three
large conference rooms that has
a capacity of 800 clients, three
basement parking with a holding
capacity of 500 vehicles. The
project is meant to be complete
in two years’ time.
| 19

INDUSTRY FOCUS: HOSPITALITY
Radisson Blu m
20 |

akes a splash
KCB Bank’s Sh5 billion loan to hotel
developer is tranforming Upper Hill as
the face of Kenya’s financial District
Hotels are all about the experience
guests carry home and not the silver
fork and knife laid out on the table, and
certainly not the brick and mortar that
make up the superstructure.
Mr. Jens Brandin, Radisson Blu’s Upper
Hill General Manager knows this just too
well; guests come for a reason other than
food and a bed. They are looking for an
experience.
He says it and does it with an African
ring as though he were echoing the words
masterfully written by celebrated novelist
Chinua Achebe in his classic ‘Things Fall
Apart’.
The towering Jens Brandin marched
into what is perhaps Nairobi’s most
modern hotel reception with the gait and
confidence of a maestro in front of an
accomplished orchestra on a busy August
mid-morning.
He was effortlessly fitting into four
roles all in under the three hours the KCB
Bank media crew was in the hotel; the
weight on his shoulders of hosting three
Heads of State and a Prime Minister, time
for our media crew, chaperoning a highpowered
diplomatic team on a tour of the
hotel to finding the time to keep up with
his maintenance staff. He gave not the
slightest indication that on his shoulders
was the burden of hosting the Heads of
State and numerous VIP delegations;
that actually the hotel was running at full
capacity.
“When you have a full hotel, the work
happens before. This is actually the fun
part,” he said.
As you enter the hotel lobby, you are
met by Nairobi’s roomiest hotel reception,
with its understated but elegant African
theme in the lobby and throughout the
open spaces.
To the right hand is a corridor leading
down to an array of shops, where the
high-end tourists or business clientele
indulge in a spot of retail therapy
between business, a work-out in the gym,
pampering sessions in the spa or a minisafari
to the Nairobi National Park to the
south, a 20-minute drive away.
The lobby with its comfy sets of sofas
eases out to the Chop House where you
can start a meal with grilled vegetables
and cured meats served on planchas
(hot metal plates), and then enjoy the
show as one of the hotel’s skilled servers
carve barbequed meat at your table while
watching the rest of an authentic African
meal being prepared in the open kitchen.
Alternatively, you can branch out to the
Larder restaurant and order a plate of an
international favorite, or try something
distinctly Kenyan. The Larder is open all
day with its alluring aesthetics enveloped
in warm lighting and charming ambiance
offering a top-end menu from slow-roasted
local meats to traditional fish stew.
Or further out on the southern
verandah at the Al Fresco Pool Bar & Grill
where guests can dine at the poolside with
a glass of wine while relishing a menu
designed by nutritionists to blend healthy
options with local cuisine, while enjoying
| 21

INDUSTRY FOCUS:
HOSPITALITY
KCB Bank
believed
in the
dream
Michael Kairo
wondered just how to turn
the multi-million dollar
dream into reality.
“As far as I know he
approached many banks
in Kenya and a lot of
them, obviously foreign
banks, were not able to
see the vision he saw,”
said Mr. Brandin. “But
he was fascinated by the
flexibility and partnership
that he received from KCB
Bank.”
The bank bought in and
financed him to the tune
of Sh5 billion, creating
what has become one of
Kenya’s top hotels.
the Nairobi breeze.
Not to mention that the
history of the city, traditional
homeland of the Maa-speaking
people, is captured in Maasai
shukas placed on the backs
of selected chairs at the Al
Fresco, to give the feel of
cake sprinkles on white icing.
Or the three Maasai statues
towering above the lobby
next to the bank of elevators,
each of which has a glass rear
so that guests can relish a
breathtaking bird’s eye view of
the lobby on their way up or
down, to or from their selected
quarters.
It seems to give a new
meaning to opulence as
Nairobi’s jewel in the crown
when it comes to the upscale,
modern five-star hotels.
“I think we’re definitely one
of the largest hotels, certainly
one of the most modern in
terms of layout and flexibility.
From day one, our meeting
rooms have been busy” said
Mr. Brandin with under-stated
emphasis.
The Radisson Blu is in a
class of its own: It brings
to life the upcoming Upper
Hill Financial District, with
stunning views of the city. It
has a good view of the city to
the north and Nairobi National
Park to the south.
The hotel boasts 1,400
square meters of space for
events.
“We have amazing views of
the national park on one side
and the CBD on the other side.
You really notice that you’re in
Upper Hill when you look to
the north,” said Mr. Brandin,
still looking delighted by the
stunning location of the hotel
two years into the job.
The meeting space with 12
rooms is versatile and offers a
possibility of hosting a small
party for friends or a large
gathering in the 590-squaremeter
Mount Kilimanjaro
Ballroom, which can
accommodate up to 700 guests
for a reception. The meeting
space is outfitted with features
like free high-speed, wireless
Internet access and state-ofthe-art
audiovisual equipment.
Even Mr. Brandin knows
that this is a coveted location
22 |

INDUSTRY FOCUS: HOSPITALITY
“We have 1400
square meters
of function
space, always
(in) day light
facing south and
north. Amazing
views facing the
national park
on one side and
the CBD on the
other side. You
really notice
that you’re in
Upper Hill when
you look to the
north,”
for any hotel, not just for its
stunning views but surrounded
by competition for what will
be Kenya’s tallest building in
the foreseeable future. In the
Upper Hill District, Britam is
building what will be the tallest
building followed by KCB Bank,
UAP Insurance Company and
then World Bank. This brings
business to within walking
distance of Radisson Blu.
“I think many of those in
Westlands would wish their
hotels are situated here,” says
Mr. Brandin.
The road taken by the hotel
has not been smooth at all. The
iconic dream that has become
part of the more than 1,400
hotels around the world run
by the Carlson Rezidor Hotel
Group has long become a
reality; it was eight years in the
making actually.
The outfit that today
routinely hosts heads of State –
they had four during the Tokyo
International Conference on
Africa Development (TICAD)
held in Nairobi at the end of
August – was the brainchild of
Mr. Michael Kairu.
His initial idea was to build
executive serviced apartments
on the two-acre property, said
Mr. Brandin, until a Danish
architect convinced him that
the bigger the dream the easier
it would be to attract funding.
“The Danish Architect
suggested that they go big
to attract funding … Out of
a medium small residential
apartment idea it became a big
beautiful hotel ….which we’re
in now,” says Mr. Brandin, his
hands swooshing in tandem
with his pronouncement to
illustrate the fulfilment of the
moment.
The dream graduated from
the serviced apartments into
this magnificent structure that
now boasts 271 rooms and a
secure more-than-ample 240
parking lots which opened its
door to guests in November
last year.
“When you think about a
project that’s been eight years
in the making … imagine when
you plan for the space, for the
layout … you cannot change
it from one day to the other.
I think we really got it right;
the mix between 271 rooms
the rooms, standard, superior,
suites with the function
space…” said Mr. Brandin.
Those staying in a Business
Class Room or in one of
the Suites receive access
to the exclusive Business
Class Lounge, which serves
complimentary breakfast, tea
and coffee each morning and
canapés, wine and beer during
club hours between 5pm and
7 pm.
Just before it all began to
come together, there was the
elephant in the room; where
to get Ksh7 billion needed to
bring the superstructure to
life, complete with its glamour
and glitz. Mr. Kairu and his
business partners in Elgon
Road Ltd certainly didn’t have
it.
They drew up a plan and
turned to banks with an
elaborate proposal on just how
to turn the multi-million dollar
dream into reality.
“As far as I know he
approached many banks in
Kenya and a lot of them,
obviously foreign banks, were
not able to see the vision he
saw,” said Mr. Brandin. “But he
was fascinated by the flexibility
and partnership that he
received from KCB. Bank”
“It’s great to see that there
is entrepreneurship and trust
because money and banks need
to come first before dreams can
become a reality,” he added.
KCB Bank came in and
financed the project to the tune
of Ksh5 billion.
Mr. Brandin, a German
national who’s working for
the first time in Africa having
worked previously in Europe, is
happy that the hotel is up and
running and just can’t seem
to get enough of the Kenyan
spirit.
“It’s great to be in a country
where you have such a
hardworking workforce. We do
not have to train our staff how
to be welcoming. The staff have
this in them,” he says adding,
“They have the most amazing
natural smile that you can find,
FEATURE
Radisson
Blu and
the Green
Key
Taking responsibility
for the environment and
local community has been
an important part of the
broader commitment of the
Carlson Rezidor Hotel Group
to sustainable development
for many years.
The Radisson Blu Hotel,
Nairobi Upper Hill is
proudly certified with the
international Green Key
eco-label. This international
eco-label for hotels
1,800
Establishments in 34
countries around the
world who are certified
with the international
Green Key eco-label.
currently covers over
1,800 establishments in
34 countries worldwide.
It is based on ecological,
social and technical criteria
that surpass official
environmental laws within
the respective countries.
Green Key aims to raise
the awareness of hotels,
staff, and clients about
sustainable methods of
operation and technology
and the running of
ecologically sound and
responsible businesses,
thereby reducing resource
and energy use.
| 23

I think, anywhere in the world.”
The Kenyan spirit fuses
well into the theme of the
experience that the Radisson
Blu team works to offer their
clientele – an unforgettable
experience different from any
other hotel.
“Not only the design and
facilities but the service. I
have worked in many parts of
the world. We have our main
vision called ‘Yes I Can’. It’s a
mixture between a philosophy
and a service programme
… which we try to use to
make it right for the guests
all the time and really create
memorable moments,” says
Brandin. “Nowadays, especially
in our sector, it is not really
about sleep and food. People
don’t come to us because they
are hungry and tired. We are
selling experience.”
And he’s full of optimism
about the future.
“We have elections next year
but we have so much positivity.
Talk to people who were here
A meeting room
like no other
700
The capacity at Kilimanjaro
meeting room . The
space is outfitted with
features like free highspeed,
wireless Internet
and state-of-the-art
audiovisual equipment.
ten years ago and they go wow!
What has happened here? I
think there’s so much potential
here. This is where it’s
happening. This is where you’ll
see an amazing development
in the middle class and so on.
We have great local partners
and we’re trying to bring the
international experience and
the synergy which is truly
amazing,” he says.
And they are putting their
money into hosting the weary
traveler on holiday or the
24 |

“We have two projects
in Nairobi; Park Inn
and Radisson Blu
Serviced Apartments
coming up in
Aboretum. We also
have Kigali coming up.
We will have hotels
coming up in Kampala,
Tanzania and all over
Africa really”
Mr Jens Brandin, GM
Radisson Blu
business executive inking the
next deal an experience like no
other. And there’s not stopping.
“We have two projects in
Nairobi; Park Inn and Radisson
Blu Serviced Apartments
coming up at the Aboretum.
We also have Kigali coming up.
We will have hotels coming up
in Kampala, Tanzania and all
over Africa really,” he says.
271
The number of rooms
that Radisson Blu
offers in three distinct
varieties. The hotel
also has 240 parking
spaces.
Do you have a dream?
Contact : +254 (20) 3270199
corporateservice@kcb.co.ke
| 25

26 |
How first
tarmac road is
transforming
Wajir

COUNTY: ECONOMIC DEVELOPMENT
According to Wajir County,
majority of the 700,000
residents had never seen
tarmack before. That is
now history for this north
eastern town
D
ubow Abdi has lived his entire life in northern
Kenya. Born 66 years ago 15 kilometers east
of Wajir town, one of the oldest hamlets
in northern Kenya, he has lived through
the colonial period and the village elder
has been around long enough to have seen it all. Or so
he thought.
Mr. Abdi has not travelled that much. He has only
managed to visit several towns within northern Kenya,
the likes of Habwasein, Eldas and El Wak.
But like most people in his village Mzee Abdi had
never seen a tarmacked road prior to 2014.
So, when the county government announced in
late 2013, that it had prioritized the construction of a
tarmacked road in Wajir town, he slaughtered a camel
for his family in anticipation.
On the day that Ogle Construction Company - the first
contractor to lay the town’s tarmac - applied the first
sealant, the section which protects water from seeping
through the foundation of the road, Mzee Abdi, his three
wives and eleven of his children literally camped in
Wajir town to get a feel of the tarmac.
“It’s very funny that we didn’t know that it was not
even tarmacked. But, we didn’t care because my wives
and my children had never seen a tarmac road before,”
he said during an interview in Wajir for Venture.
Since that day, almost two years now, Mzee Abdi has
made it his business to ferry people from the interiors
of Wajir County - one of Kenya ’s largest counties which
occupies 10 per cent of the land mass of the country - to
see the tarmac.
“We started by walking, then started using boda
bodas and we now use taxis. I used to charge Sh. 100
for someone to come and see the new road but I lost
business when people discovered that you can see, hold,
touch and sit on the tarmac road without paying a
penny,” he says with a cheeky smile.
Mzee Abdi is not alone.
According to the Wajir County Government, a
majority of over 700,000 residents of the County had
never seen a tarmac road before the county constructed
the first kilometer in 2014.
| 27

COUNTY: ECONOMIC DEVELOPMENT
The vision
Wajir Town, established
by the British in 1912 as their
regional colonial office, is one
of the country’s most remote
places. It’s a semi arid outback
that has never shed off its
badhia (rural area, in Somali
language) tag.
Located almost 700
kilometers from Nairobi, it
would take you about three
days by bus, if you are lucky.
If not, you can spend a week,
sleeping in the open, while
mechanics try to bring the bus
back to life.
Wajir, a dusty and rugged
town, is so remote that when
the county government put
out the advertisements for the
tarmacking of the roads, out of
the dozens of companies that
applied, only one qualified.
One of the main reasons why
most of the contractors were
disqualified is that they did not
even have a clue how the town
looked like.
Ogle Construction Company,
a family owned company that
was first started in northern
Kenya before spreading to the
rest of the country, was the
only one which qualified.
Registered in 2005, Ogle
Construction was the pioneer
road construction firm in
the former North Eastern
Province. The company has
Abdi argues that
without the input
of KCB Bank, the
project could
probably have
stalled.
“Due to structural
hiccups within the
county, we were not
getting the required
funds flow in time.
KCB Bank came at
the right time to
ensure that we had
the finances to carry
out the project in the
required time,”
Ogle Construction
MD, Mr. Ahmedsiad
Abdi
440
Wajir has a total of 440
km gravelled roads,
out of 5,280 km road
network. The rest of the
roads are unclassified.
Up to this year, the county
had no tarmac road.
However, the county has
an international airport
in Wajir and 7 airstrips;
Habaswein, Khorof Harar,
Wagalla, Buna, Bute,
Tarbaj, and Diff.
28 |

COUNTY: ECONOMIC DEVELOPMENT
entered the history books with
the Wajir road construction.
“I was doing the Kwale-
Lunga Lunga road, a national
government project when I
saw the advert. I told myself
that Wajir is my home. I have
to go back and do something
for my people because not
many of them have the
experience, the personnel
and the equipment to do
that kind of work,” recalls
Ogle Construction MD, Mr.
Ahmedsiad Abdi.
Despite its vast experience
in road construction, building
a tarmac road in a place such
as Wajir was not a smooth ride.
“The County was barely a
year old. It had no capacity for
such a project. There were no
structures, no personnel and
exposure and skills to do the
project. It was a very young
county,” Abdi explains.
As a result of the
inexperience, a lot of time was
lost in decision making before
construction started.
“The County officials did
not understand that for some
of these contracts there are
requirements that once you
certify a payment it needs to be
paid within a certain time. If
you don’t, it will have impacts
on the progress of the project,”
Abdi says.
To save the situation,
Ogle Construction Company
approached KCB Bank, their
principal bank for several
years, for funding.
“Already we had secured the
support of KCB Bank. Such
a project requires a number
of guarantees that must be
secured by a bank. These
guarantees must be secured
by a recognized bank locally.
Without this you cannot even
execute a contract. But we
needed more assistance so as
to finance the project,” he says.
Abdi says that without the
input of KCB Bank, the project
could probably have stalled.
“Due to structural hiccups
within the county, we were
not getting the required funds
flow in time. KCB Bank came
at the right time to ensure that
we had the finances to carry
out the project in the required
time,” he says.
Having graduated from a
normal regular account holder
to a corporate client, Ogle
Construction Company further
sought asset financing from
the
KCB Bank.
“Our construction
equipment is procured through
a facility from KCB Bank
which is structured based on
one-to-one discussions and
which they consider based
on our requirements. They
understand what we want and
How we did it
The deal
with KCB
Bank
In total, the bank
financed between 20 to
25 per cent of the Ogle
Construction Wajir tarmac
project.
Abdi says that without
the input of KCB Bank, the
project could probably
have stalled.
“Due to structural
hiccups within the county,
we were not getting the
required money flow in
time. KCB Bank came on
board to ensure that we
had the finances to carry
out the project in the
required time,” he says.
Having graduated from
a normal regular account
holder to a corporate
client, Ogle Construction
Company further sought
asset financing from the
bank to be able to acquire
the equipoment that was
needed for the task.
| 29

COUNTY: ECONOMIC
DEVELOPMENT
work around that,” he says.
In total, the bank financed
between 20 to 25 per cent of
the Ogle Construction Wajir
tarmac project.
“Without KCB Bank, we
could not be talking about
contracts, getting the much
needed finances to continue
with the project and the
necessary equipment,” he says.
Ogle Construction Company,
constructed the first eight
kilometers out of the 28
kilometers that are now
tarmacked in the town.
Abdi describes building
the tarmac road as the most
unique experience in his road
construction career.
“Unlike other urban areas
where we have a project and
people have encroached on
the road and thus it is difficult
to relocate them, in Wajir,
the residents cleared the
roads even before we reached
the sections that they had
encroached on,” says Abdi with
a smile.
According to Wajir
County Governor Ahmed
Abdullahi, the tarmac road
has transformed Wajir town
more than anything else since
independence.
“Before the tarmac road, we
had only two storied buildings
in Wajir Town. We now have
at least five storied buildings
coming up. We didn’t even
have demarcations for the
town but the road has now
made it possible for us to
demarcate the town better,” the
Governor said.
Construction of a tarmac
road, the most unorthodox
means of spurring
development, has totally
transformed the once sleepy
and dusty town.
Value of property along the
tarmac has gone up. Dozens
of old buildings along the
road have come down and are
being replaced with modern
buildings. There are two
new hotels. One of them, the
Wajir Hilton Hotel, is already
recording a rise in business.
A Kenya Medical Training
College (KMTC) is almost
complete. The county has
constructed a Huduma Centre
and for the first time in history,
you can train as a teacher
within the county at the Wajir
Teachers Training College.
There is even a university
under construction.
Residents like Shukri
Dubow, a 35-year-old
watchman who calls himself
Contribution to
the economy
500
The number of cars
estimated to be operating
in Wajir, up from 150,
following the tarmacking
of the roads
“macho ya town,” have a
new moniker for the town.
“This is the new Eastleigh,”
he terms it.
Like Eastleigh, there is a
new swagger in the town. The
county recently sounded a
warning to donkey owners to
“keep off” the tarmac.
Residents used to walking
can now use taxis.
Before the tarmac was
done, the local matatu and
taxi association estimates that
there were about 150 vehicles
operating in the town.
“We now have more than
500 vehicles. We are excited
that soon we might also have a
feel of traffic jams,” Abdi Noor,
a taxi operator, jokes.
Even boda boda operators
are not being left behind.
“We used to have less than
100 boda bodas operating in
this town. Since the tarmac
road was done, we now have
more than 300 operating,” says
Timothy Kamenjo, a 25-yearold
boda boda operator.
Along the tarmac road,
businesses open late after the
county government installed
20 floodlights and more than
300 solar-powered street lights
to boost security.
Wajir now offers an
example in road infrastructure
development to other counties.
“Just the other day, there
was a delegation from
Mandera County who visited
us to learn how they can
construct tarmac roads,” Mr
Abdullahi says.
The tarmac is now a main
feature in the reconstruction
of the new Wajir that is meant
to be a “Gateway to northern
Kenya, with a dream to be
the affluent, service-oriented
capital of Kenya’s forgotten
north, and a beacon of hope
Do you have a dream?
Contact : +254 (20) 3270199
corporateservice@kcb.co.ke
30 |

““Before the tarmac road, we had
only two storied buildings in Wajir
Town. We now have at least five
storied buildings coming up,”
Wajir Governor Ahmed Abdullahi.
500
The estimated number of
vehicles operating in Wajir
Town since the tarmacking
of the road up from about
150
| 31

A
dash
of
colour
Rakesh Rao explains how from
the Kisumu plant, Crown Paints
can use use Lake Victoria to send
paints to Mwanza and use improved
infrastructure to transport products
to Rwanda and Uganda
32 |

PROJECT FINANCE
If you take a walk in Nairobi’s Industrial area,
you will probably notice Crown Paints’ factory
located on Mogadishu Road. Hundreds of men in
aprons smeared with different colours of paint
are busy doing their thing.
It’s a busy place where
man and machine form an
intriguing combination.
A sea of humanity mills
around the plant, producing
about 1 million litres of paint
a year.
However, almost two years
ago, the company, which is
the country’s leading paint
manufacturer, discovered that
its factory was not optimally
serving its business.
The company also found
that for every tin of paint
transported to distant markets,
it was actually transporting
70 per cent water, the amount
of water that is contained in a
can of paint.
Last year, the company
decided to open up an
automated factory in Kisumu,
which could help it solve the
inefficiencies.
“Kisumu is located at a
central place to serve the
Western Kenyan market and
neighboring countries. From
the Kisumu plant, we can use
Lake Victoria to send paints
to Mwanza and use the road
to transport our products to
Rwanda and Uganda,” Rakesh
Rao, the CEO of the company,
says, from his office located at
Crown Paints headquarters in
Nairobi’s Likoni Road.
The company, which has
been in existence since 1958,
has 75 per cent market share
in Western Kenya serving
Kisumu, Eldoret and several
other towns in the region.
However, the period in
| 33

PROJECT FINANCE
KCB Bank
partnership
with Crown
Paints
Crown Paints intends to get
more funds from KCB Bank
for future expansion at the
factory.
“Currently, we are holding
no stocks. We produce and
sell the all paint we make.
We will need to build a
showroom and hardware
for storing the finished
goods,” says Rao.
The Kisumu factory has
assisted in changing
fortunes for the company.
“In Rwanda, the business
has grown by over 100
per cent. In Tanzania, we
have just broken even and
despite some teething
problems in Uganda, we
are doing well,” Mr Rao
says.
For the past four decades,
Crown Paints has
maintained its reputation
as a manufacturer of
various paints and paint
related products such
as internal and external
paints, specialized and
textured paint finishes,
roof paints, floor paints
and wood varnishes.
400m
The amount it cost
Crown Paints to set up
the Kisumu plant.
which the decision to open
a factory was made, was a
difficult and painful one for
the Nairobi Stocks Exchange
listed company.
To start with, the company
was just coming out of a costly
expansion in the East African
region that had consumed
billions of shillings.
Secondly, the company
had suffered heavily from the
exchange rate changes with
the currencies in Tanzania,
Uganda and Rwanda
depreciating by about 50 per
cent.
The effect was a loss to the
tune of Sh. 300million.
To raise capital for the
Kisumu plant, Crown Paints
approached KCB Bank,
through which the paint
manufacturer conducts over
80 per cent of its businesses.
“We have benefited a lot
from the bank. When we
approached the bank to
finance the Kisumu project,
they gave us the best interest
rates that were much more
competitive,” Mr Rao says.
Crown Paints has a
partnership with KCB
Bank in which they benefit
from special discounts and
free advice from the paint
manufacturer.
“We offer free advice on
special finishes, various
decorations and paints to use
to the bank’s customers who
take loans to build property,”
Mr Rao says.
With KCB Bank financing,
the company built the Sh.400
million Kisumu plant. After a
few months of operation, the
Crown Paints Kisumu factory
is already a success.
The factory is completely
automated and produces 1.2
million litres of paint per
month.
During the production
process, other than
when loading the paint
34 |

manufacturing ingredients,
there is no manual
intervention.
“The cost of operation
is lower compared to the
Nairobi plant. We only
need 20 to 30 people to
produce one million tonnes
of paint compared to a staff
of over 100 at the Nairobi
plant. Interestingly, we get
the same quantity of paint
within two to three hours
compared to the six hours
or more we could have
used in the Nairobi factory.
It takes 50 per cent less
time to produce the same
amount,” Mr Rao says.
He adds that they
intend to get more funds
from KCB Bank for future
expansion at the factory.
“Currently, we are
not holding any stocks.
We produce and almost
immediately sell the paint
we make. We will need
to build a showroom and
hardware for storing the
finished goods,” he says.
The Kisumu factory has
boosted the fortunes for the
company.
“In Rwanda, the
business has grown by over
100 per cent. In Tanzania,
we have just broken even
and despite some teething
problems in Uganda, we
are doing well,” Mr Rao
says.
For the past four
decades, Crown Paints has
maintained its reputation
as a manufacturer of
various paints and paint
related products such
as internal and external
paints, specialized and
textured paint finishes, roof
paints, floor paints and
wood varnishes.
Currently, Crown Paints
occupies more than 65
per cent of the premium
market share and about 44
per cent of the premium
and economy paints
market.
The company has a net
worth of over Sh6 billion
and now produces over 5
million tonnes of paint in a
month.
In 2014, Mr Rao was
honoured as the CEO of the
Year and Crown Paints as
the Company of the Year
during the Company of the
Year Awards (COYA).
Do you have a dream?
Contact : +254 (20) 3270199
corporateservice@kcb.co.ke
PROJECT FINANCE
“We offer free advice on special
finishes, various decorations
and paints to use to the bank’s
customers who take loans to
build property”
Rakesh Rao, CEO Crown Paints
| 35

PURSUITS
CLASS REDEFINED
The 2016 Range Rover offers a
luxurious experience like no other
Prodigious off-road
ability
You never forget that you’re
driving a tall two-tonne, top
heavy SUV when you’re behind
the wheel of the Range Rover,
but the car is more agile than
you may expect. It feels precise
and inspires confidence in most
situations, allowing you to place
it accurately on the road.
Superbly comfortable
and refined
Refinement is one of the Range
Rover’s strongest areas. It’s
particularly impressive cruising
at high speeds, when it does an
excellent job of isolating you
from the elements, thanks in
part to an acoustically laminated
windscreen.
Land Rover Range
Rover Boot Space
You won’t want for boot capacity
in the Range Rover. There’s more
than enough space for a couple of
adults’ luggage and a reasonably
hefty baby buggy – or a few sets
of golf clubs.
At least you don’t have to worry
about opening and closing the
boot; both the upper and lower
sections are electrically powered
as standard across the range.
T
hey say you can never
buy class… we beg
to differ with this
particular notion.
Class can indeed
be bought, but
at a very steep price. What is the first
thing that comes to your mind when
you see that sleek white expensive
looking four wheeler speed past you
on the highway? Yes, you guessed
it… Class. You know, that vehicle that
leaves everyone in traffic questioning
their existence. The vehicle that
speaks on its own and needs no further
introduction. The kind of automobile
that automatically sets you apart from
the crowd. The 2016 Range Rover.
This is not your ordinary car. Unlike
the rest, it has its place in both the
hearts of men and women alike.
Its sleek, curved and proportioned
presence serves that exact purpose.
This Range Rover model boasts
of a 5.0-liter V8 engine that uses a
Roots-type twin vortex supercharger
to generate 550 horsepower to keep
you cruising along Nairobi’s highways
at your heart’s desire. In the interest of
your safety, the auto experts ensured
that in the event of an unfortunate
incident, the car has been fitted with
dual front, front side and full-length
side curtain airbags in addition to
traction and stability control systems
and a tyre-pressure monitoring system.
Allow driving to become your
next best hobby with the impressive
interior the model has been built to
accommodate. The leather upholstery,
genuine wood trim, a touchscreenactivated
navigation system within the
2016 Land Rover Range Rover ensures
you are comfortable and confident as
you navigate through the city streets..
Complimentary features that assert
the fact that this indeed the automobile
of the century include the heated front
seats, a heated steering wheel, a power
lift gate, a rear parking camera, tri-zone
automatic climate control, Bluetooth
phone connectivity with audio streaming
and 19-inch alloy wheels.
In the case of the 2016 Land Rover
Range Rover, class is earned.
http://www.landrover.com/vehicles/
range-rover/specifications.html
36 |

SWINGING
Golf made easy
G
olf is not only a
lifestyle, it’s also
a good way of
unwinding
after a
intense
week in the office or managing
your business.
It is the perfect way to relax
over the weekend, do some
exercise, catch up with friends,
and perhaps conclude that deal.
Today, the profile of the Kenyan
golfer has changed to that of
young to middle aged person
contrary to earlier times when
it was associated with geriatrics
who had made their money during
the colonial times.
It is a game of discipline and
integrity; you are your own
referee. You report your mistakes,
and penalize yourself while at it!
For those who have not started
playing (as yet), golf looks like a
lazy man’s (or woman’s) game.
It isn’t. To begin with, for an
eighteen hole, you will take a
brisk walk of not less than seven
kilometers, and for longer courses
(like Thika Greens), more than ten
kilometers.
Usually, a round of golf lasts
about four hours, again depending
on many variables, such as
weather, the number of
people playing and the
speed of play by all
the teams in the
field; as they
say, a herd of
buffalos (or any
other animal
for that matter)
moved as fast
as the slowest
member of the herd.
For the uninitiated,
here are some of the words
that you will hear golfers
mention casually, but which
might sound like some Greek.
Medal: It’s got nothing to do
with winning a medal. It is a
format of play where all shots
are counted, as opposed to
stableford, another format
of play that is popular with
amateurs.
Par: Every hole (and there are
eighteen of them) is ranked in
terms of length. Par 3, 4 or 5.
If you get a par on a par three,
you have finished playing with
three strokes.
Birdie: You have played better
than the hole ranking. i.e par
three, you have holed out
in two.
Eagle: You have played two
better than the hole ranking
i.e par four, you have holed
out in two.
Albatross: Well, they are very
rare. On a par five, you get
your ball in the hole in two
shots.
Hole in one: As rare as an
albatross. Means that you
hit your tee shot, and it flies
straight into the hole.
Bunker: Nothing to do with
Saddam Hussein. It is where
you find some sand, just
to make your life slightly
more exciting (or difficult,
depending on how you have
been playing generally)
Tee Box: It is where you plant
that little plastic or wooden
tee and start off your
journey.
Fairway: It is where
the ball should
(ideally) land
after teeing off.
Greens:
That’s where
you use your
putter, that
little club that
taps the ball ever
so slowly into the
hole. Nicely mowed
and smooth, and with some
exotic grass, some caddies
have been known to remove
their shoes when walking on
the green.
RALLYING
Keeping ‘Flash’
Tundo on the
move
Front suspension
The proto car boasts of a Ford
body and Mitsubishi Evolution 10
engine that makes it a beast to reckon
with the KCB Bank rallies. This
new entrant to the rally scene costs
between Sh. 15-24M in assembly
costs depending on the level of
customization, undeniably making it a
car of choice for the rallying gurus.
Costs of running the car during
outings are extremely high with the
machines using at least 200 litres of
aviation Gas fuel and 10 tyres during
each outings. Peek just some of the
specs and resources below that go
into making one of the first choice
vehicle in the world of motor sport.
Rear suspension
Estimate
Tyres- 22,000 Kshs each x
14 tyres - Sh. 308,000
Aviation gas fuel 200 litres
@ 200 - Sh. 40, 000
Brake discs – Sh. 193,200
Roll cage – Sh. 213,600
Carbon seats Evo- Sh.
288,000
Drivers and Co drivers foot
well – Sh. 96,000
Door Cards – Sh. 201, 160
Intercom – Sh. 83,000
Trip Meter- Sh. 43, 900
| 37

PURSUITS
GETAWAY
Stay. Dine. Meet. Join.
The Shaza Club
T
here is a new club in town.
The members of this
club pride themselves
on the fact that they
have earned the
privilege of a true and authentic African
experience. Membership in this exclusive
club gives you the opportunity to escape
at any time and revel in treats the club
has to offer. The Shaza Club is where you
want to belong.
It has one of the highest ratings on
Booking.com based on client feedback.
The Shaza, recognized and published
by the Rolls-Royce Enthusiasts’ Club
(RREC) in their Strive for Perfection:
A Celebration of Design & Luxury, the
club awards you with the ultimate coast
address.
The strong Swahili and Moroccan
architecture is prevalent within the
expanse of the breathtaking lobby
and the spectacular design resonates
throughout the club. Members have
their pick between the lavishly furnished
penthouse suites, the studio suites or the
exclusive suites. Fine dining at Saffron,
ice cream and milkshakes with your
family at the BLu ice cream bar and
sundowners at the pool bar overlooking
the awe-inspiring panoramic view of the
Indian Ocean are many of the activities
available to Shaza club members.You
have a choice of a Penthouse, two and
three bed apartments.
You deserve it; Give it a go. The Shaza
Club is located on Shanzu Beach road in
Mombasa, Kenya.
www.theshaza.com
“A house is made of
walls and beams; a
home is built with
love and dreams.”
William Arthur Ward
38 |

| 39

BANK
Voted Best Local Trade Finance
Bank 2015 – Kenya
For the 4 th time in a row, we are proud to be recognized as leaders
in Trade Finance.
We thank you, our customers for your continued support.
Our services include:
• Pre-shipment Finance / Pre-export Finance
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• Bank Guarantees / bonds
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For more information, visit www.kcbbankgroup.com or a branch near you.
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Regulated by the Central Bank of Kenya
40 |