“I spent a night after a long day at work helping my 10-year-old daughter cover 12 exercise books,” says Patrick Korir Sigilai, the co-founder of stationery company Sandy EA.
“I remember thinking there are at least 200 other parents going through this task right now. What if there was an easier way to do it?”
Patrick discussed the idea with his wife, Shellah Korir, who was seated across from him, also engrossed in the task of covering those exercise books.
“We laughed about it, but the very next day, we set out to do our homework on whether or not this idea was feasible.”
It has been six years since that night.
Patrick, now 35, shares with Hustle how a simple assignment from the school his daughter, Sandy, attended built him a company that’s rapidly becoming a household name by providing an easy solution to covering school books.
Ready-made book covers seems like such a simple concept. What made you think you could turn it into a business?
Many great businesses are born from simple concepts, right?
People like what’s convenient and saves them that extra minute or that extra shilling. I was shocked when I did my research and realised no one else had thought of doing this, of commercialising this activity, even though it’s been a Kenyan practice for decades. We did it, our parents did it, but no one was monetising it.
Take us through the process, from concept to actualisation of the idea.
When I was covering my daughter’s books, she was extremely particular about the end result. She even vetoed the covers that didn’t meet her standards.
Her mother and I had to redo those ones – some flaps were too long, others too short, others crooked.
When I got down to creating a sample ready-made cover for the market, I knew we needed precision. I worked on that first and then went door-to-door, asking my neighbours to try the covers and see if they liked the concept.
The very next day, I had children coming to my door to order more covers. I’d only given five covers to each house, but most schools have at least 12 to 15 exercise books per child.
What were your costs for the covers?
The first samples were free. When more orders came in, I charged Sh20 for a set of five covers. I didn’t put a mark-up on this because I was still testing the product.
The cost went up to Sh35 for a set of five covers after I finalised the design, artwork and improved the paper quality. That’s the wholesale price; retailers have varied pricing. I also added an A4 version at a wholesale price of Sh50.
Apart from your neighbours, who else do you count among your first customers?
Sandy’s school. We had redone her books after I finished the final product and the ready-made covers were such a hit. Her classmates and teacher were so impressed and wanted to know where she got her covers from.
She told them I was selling the covers and the teacher called me, asking if I could supply them to her class.
The craze picked up throughout the school. Eventually the administration called me and suggested I pitch a tent at break time and sell covers to interested students. I took them up on the offer.
How did it go?
Extremely well. That day alone, we sold 300 sets of covers. In the first term, we sold approximately 1,000 sets to the school.
What has Sandy EA’s growth been like?
We registered the company in February 2013 right after we made the first few sample covers. Six months after that, I resigned from my full-time job as a marketer to focus on Sandy EA. That month, we sold 3,000 sets. Our next priority was to roll out our products to big commercial outlets like supermarkets and bookshops.
We outsourced the printing and cutting, and did the finishing ourselves.
Who were your first large customers?
Our very first large customer was Woolmart Supermarket in Nakuru, which is where we are based. The product flew off the shelves in two weeks; we sold 100 sets of A5 and A4. The following month, we sold 300 sets of each size.
We also stocked at a bookshop that bought 500 sets of each size. On December 27, 2013, an order we’d supplied of 500 sold out in one day.
Our big break came when we approached Nakumatt. To my shock, they enlisted the product right away, making an order of 10,000 sets of each size.
You were fairly new as a company, so how did you meet this order?
We couldn’t because no bank would finance our LPO (local purchase order). Eventually, I went back to Nakumatt and asked them if I could satisfy the order slowly over time and supply branch by branch as opposed to countrywide.
It was the December-January period, which is high season for book sales because of the back-to-school rush.
We ended up supplying them will a total of 5,000 sets, which was 50 per cent of their original ask, and it brought in Sh400,000 as opposed to the original Sh1 million.
Haw far have you spread outside of Nakuru?
We’re now countrywide, and stocked in most well-known supermarkets like Tuskys, Naivas and Chandarana. We’re also stocked in bookshops like Text Book Centre.
What was your turnover in the first year?
We turned over Sh200,000. In year two, we did Sh500,000. Last year, we closed at Sh4 million, reaching sales of 114,000 sets.
What’s your projection for 2019?
Last year, we applied to KCB Lions’ Den and got investment from Darshan Chandaria of Sh5 million. It was such a great experience because four of the Lions bid to invest in us.
We had gone in with Mr Chandaria in mind because of his retail and manufacturing expertise. We were humbled to get him on board. With his investment and guidance, we shall expand enough to meet demand and reach more networks and regions.
We anticipate a turnover of Sh20 million in 2019, selling approximately 500,000 sets.
What’s your ultimate goal?
To spread across East Africa and then go Africa-wide. We’re also in the process of releasing new products and expanding our stationary line.
In line with the ingenuity of the book covers, which we make from paper for now, we want to find the gaps in the market and fill them. It’s all about simplifying parents’ and students’ lives at an affordable cost.
BCCI: The bank ‘that would bribe God’
“This bank would bribe God.” These words of a former employee of the disgraced Bank of Credit and Commerce International (BCCI) sum up one of the most rotten global financial institutions.
BCCI pitched itself as a top bank for the Third World, but its spectacular collapse would reveal a web of transnational corruption and a playground for dictators, drug lords and terrorists.
It was one of the largest banks cutting across 69 countries and its aftermath would cause despair to innocent depositors, including Kenyans.
BCCI, which had $20 billion (Sh2.1 trillion in today’s exchange rate) assets globally, was revealed to have lost more than its entire capital.
The bank was founded in 1972 by the crafty Pakistani banker Agha Hasan Abedi.
He was loved in his homeland for his charitable acts but would go on to break every rule known to God and man.
In 1991, the Bank of England (BoE) froze its assets, citing large-scale fraud running for several years. This would see the bank cease operations in multiple countries. The Luxembourg-based BCCI was 77 per cent owned by the Gulf Emirate of Abu Dhabi.
BoE investigations had unearthed laundering of drugs money, terrorism financing and the bank boasted of having high-profile customers such as Panama’s former strongman Manual Noriega as customers.
The Standard, quoting “highly placed” sources reported that Abu Dhabi ruler Sheikh Zayed Sultan would act as guarantor to protect the savings of Kenyan depositors.
The bank had five branches countrywide and panic had gripped depositors on the state of their money.
Central Bank of Kenya (CBK) would then move to appoint a manager to oversee the operations of the BCCI operations in Kenya.
It sent statements assuring depositors that their money was safe.
The Standard reported that the Sheikh would be approaching the Kenyan and other regional subsidiaries of the bank to urge them to maintain operations and assure them of his personal support.
It was said that contact between CBK and Abu Dhabi was “likely.”
This came as the British Ambassador to the UAE Graham Burton implored the gulf state to help compensate Britons, and the Indian government also took similar steps.
The collapse of BCCI was, however, not expect to badly hit the Kenyan banking system. This was during the sleazy 1990s when Kenya’s banking system was badly tested. It was the era of high graft and “political banks,” where the institutions fraudulently lent to firms belonging or connected to politicians, who were sometimes also shareholders.
And even though the impact was expected to be minimal, it was projected that a significant number of depositors would transfer funds from Asian and Arab banks to other local institutions.
“Confidence in Arab banking has taken a serious knock,” the “highly placed” source told The Standard.
BCCI didn’t go down without a fight. It accused the British government of a conspiracy to bring down the Pakistani-run bank. The Sheikh was said to be furious and would later engage in a protracted legal battle with the British.
“It looks to us like a Western plot to eliminate a successful Muslim-run Third World Bank. We know that it often acted unethically. But that is no excuse for putting it out of business, especially as the Sultan of Abu Dhabi had agreed to a restructuring plan,” said a spokesperson for British Asians.
A CBK statement signed by then-Deputy Governor Wanjohi Murithi said it was keenly monitoring affairs of the mother bank and would go to lengths to protect Kenyan depositors.
“In this respect, the CBK has sought and obtained the assurance of the branch’s management that the interests of depositors are not put at risk by the difficulties facing the parent company and that the bank will meet any withdrawal instructions by depositors in the normal course of business,” said Mr Murithi.
CBK added that it had maintained surveillance of the local branch and was satisfied with its solvency and liquidity.
This was meant to stop Kenyans from making panic withdrawals.
For instance, armed policemen would be deployed at the bank’s Nairobi branch on Koinange Street after the bank had announced it would shut its Kenyan operations.
In Britain, thousands of businesses owned by British Asians were on the verge of financial ruin following the closure of BCCI.
Their firms held almost half of the 120,000 bank accounts registered with BCCI in Britain.
The African Development Bank was also not spared from this mess, with the bulk of its funds deposited and BCCI and stood to lose every coin.
In Britain, local authorities from Scotland to the Channel Islands are said to have lost over £100 million (Sh15.2 billion in today’s exchange rate).
The biggest puzzle remained how BCCI was allowed by BoE and other monetary regulation authorities globally to reach such levels of fraudulence.
This was despite the bank being under tight watch owing to the conviction of some of its executives on narcotics laundering charges in the US.
Coast politician, the late Shariff Nassir, would claim that five primary schools in Mombasa lost nearly Sh1 million and appealed to then Education Minister George Saitoti to help recover the savings. Then BoE Governor Robin Leigh-Pemberton condemned it as so deeply immersed in fraud that rescue or recovery – at least in Britain – was out of the question.
“The culture of the bank is criminal,” he said. The bank was revealed to have targeted the Third World and had created several “institutional devices” to promote its operations in developing countries.
These included the Third World Foundation for Social and Economic Studies, a British-registered charity.
“It allowed it to cultivate high-level contacts among international statesmen,” reported The Observer, a British newspaper.
BCCI also arranged an annual Third World lecture and a Third World prize endowment fund of about $10 million (Sh1 billion in today’s exchange rate).
Winners of the annual prize had included Nelson Mandela (1985), sir Bob Geldof (1986) and Archbishop Desmond Tutu (1989).
East Africa celebrates top women in banking and finance
The Angaza Awards for Women to watch in Banking and Finance in East Africa took place Online via Zoom on 8th June 2021.
The event was set to celebrate the top 10 women shaping banking and finance across East Africa. The 2021 Angaza Awards, which will be a Pan-African Awards program, was also announced at the event.
Key speakers at this webinar were Dr Nancy Onyango, Director of Internal Audit and Inspection at the IMF; and Gail Evans, New York Times Best Selling Author of Play Like a Man, Win Like a Woman and former White House Aide and CNN Executive Vice President.
Dr Nancy Onyango advised women to deep expertise in their fields, spend time in forums and link with key players in that sector.
“Gain exposure with other cultures by seeking for employment overseas and use customized CV for each job application,” said Dr Onyango.
According to Gail Evans, women should show up and be fully present in meetings and not be preoccupied with other issues.
“Be simple and avoid jargon. Multi-tasking only means that you are mediocre Smart people ask good questions in a business meeting. Most women face drawbacks due to perfectionism, procrastination and fear of failure, said Evans.
She advised women to play like a man and win like a woman, be strategic, and intentionally make their moves to get to the top.
“For us to pull up businesses that have been affected by effects of COVID-19 pandemic, we need to re-invent business models, change the product offering and make more use of digital platforms,” said Mary Wamae Equity Group Executive Director.
Mary Wamae emerged top at the inaugural Angaza awards( East Africa) ahead of other finalists.
While women continue to excel in banking and finance, the number of that occupies top executive positions is still less.
“There is a gap for women occupying C suite level and it continues to widen in the finance sector. At entry level, there is still an experience gap for women,” said Nkirote Mworia, Group Secretary for UAP-Old Mutual Group.
She said that at the Middle Management level, women do not express their ambition. For this reason, UAP-Old Mutual has developed an executive sponsorship program to help women get to the next level.
Mworia added that most women hold the notion that top positions in management have politics and pressure.
“One needs leadership skills and not technical expertise to get to the top,” said Mworia.
According to Catherine Karimi, Chief Executive Officer and Principal Officer of APA Life Assurance Company, women need to focus on the strengths and natural abilities that they already have.
“Take risks and raise your hand to get to the high table. Find mentors along the way and develop your own brand and not compare yourself with others Focus on your strengths because it will make you move faster in the career ladder,” said Karimi.
Lina Mukashyaka Higiro, a Rwandan businesswoman and chief executive officer of the NCBA Bank Rwanda since July 2018, has three lessons for women who want to excel in banking and finance.
“Always spend at least 20 minutes each day reading, seeking genuine feedback from other staff members and widen your network,” Higiro told the webinar.
Women picked for Angaza awards
Mary Wamae, Executive Director, led this year’s Top 10 Women in Angaza Awards, Equity Group (Kenya)(2)Catherine Karimi, Chief Executive Officer, APA Life Insurance Company (Kenya)(3)Lina Higiro, Chief Executive Officer, NCBA Bank (Rwanda)(4)Elizabeth Wasunna Ochwa, Business Banking Director, Absa Bank (Kenya)(5)Joanita Jaggwe, Country Head of Risk and Compliance, KCB Group (South Sudan)(6) Millicent Omukaga, Technical Assistance Expert on Inclusive Finance, African Development Bank (Kenya)(7)Emmanuella Nzahabonimana, Head of Information Technology, KCB Group (Rwanda)(8)Judith Sidi Odhiambo, Group Head of Corporate Affairs, KCB Group (Kenya)(9)Rosemary Ngure, ESG & Impact Manager, Catalyst Principal Partners (Kenya) and(10)Pooja Bhatt, Co-Founder, QuantaRisk and QuantaInsure (Kenya).
The Kenyan Wallstreet, a financial media firm, partnered with Kaleidoscope Consultants to raise awareness of seasoned women shaping and influencing the sector through their organizations.
The Angaza Award criteria included assessing the applicants’ area of responsibility and contribution to firm performance. Professionals in Banking, Capital Markets, Insurance, Investment Banking, Fintech, Fund Management, Microfinance, and SACCOs were invited to submit their applications or nominations via the Kenyan Wallstreet Award Web page.
IFC in New Partnership to Develop Affordable Housing in Mombasa County
NAIROBI, Kenya, Jun 14 – International Finance Corporation, a member of the World Bank Group, has signed a new deal in support of affordable housing in Kenya.
The corporation has partnered with Belco Realty LLP, to develop a mixed use affordable living complex that will consist of 1,379 residential units and over 4,500 square meters of retail and commercial spaces in Kongowea, Mombasa County.
Together with the Kenyan firm, IFC says the partnership will help meet surging demand for housing in Kenya.
Under the agreement, IFC will help identify suitable international strategic partners to invest equity of up to $12 million, or Sh1.3 billion in Belco and to provide the company with the necessary technical support to develop the project.
The development, known as Kongowea Village, will be developed to foster inclusive and affordable community living within the city.
Jumoke Jagun-Dokunmu, IFC’s Regional Director for Eastern Africa says the project, which will be located on eight acres within the heart of Mombasa city, will aim to be a catalyst for wider city regeneration.
The project will be developed to meet IFC EDGE certification requirements and will incorporate the latest technologies in passive cooling, energy efficiency and water conservation to support sustainable urbanization.
Kongowea Village is expected to create 1,160 jobs and business opportunities during the three-year construction period and many more after completion of the project within the themed retail arcade.
“Access to quality housing is a growing problem in Kenya and across Africa,” said Jumoke Jagun-Dokunmu, IFC’s Regional Director for Eastern Africa.
“Developers often target the high end of the market, but this project is aimed squarely at the lower-income bracket. Helping Belco identify the right partners for this project is expected to attract more developers to Kenya and other parts of Africa to help meet rising demand for housing.”
“IFC‘s engagement with Belco will help Kenya support its rapidly growing and urbanizing population by increasing access to affordable housing. The problem is similar across most of Africa, where population growth and demand for quality housing are combining to outstrip supply. We are pleased to partner with a company such as Belco that is committed to contributing to solving this challenge,” said Emmanuel Nyirinkindi, IFC‘s Director for Transaction Advisory Services.
IFC’s partnership with Belco is part of its broader strategy to support better access to affordable housing in Kenya.
In 2020, IFC invested $2 million in equity in the Kenya Mortgage Refinance Company (KMRC) to help increase access to affordable mortgages and support home ownership in the country.