I promised to follow up on the interesting comments around entrepreneurship in Kenya that were sparked by my post on Mama Mikes by “interviewing” the founder of the company – Segeni Ng’ethe.
While reading Seg’s responses I was struck by how simple it would be to address some of his issues e.g. setting up a business incubator – unfortunately the people with the resources and the attention of important decision-makers focus on grandiose solutions, that often amount to nothing much in terms of tangible, long-lasting outcomes. The other half is too busy “socializing”
or whatever it is that events like the WSF hope to accomplish.
I smell a rant coming on so let me stop here.
If you have further questions for him, please leave a comment.
Thanks for playing Seg!
First his disclaimer: Take this into account: My answer(s) are very specific to the type of business I am in. If I were in a different type of business/industry, I don’t think the challenges would be the same.
1. What would you say are the biggest challenges you face being a young entrepreneur / start-up in Kenya? In your ideal world what would be the solution/s?
Challenges:
(i). Very expensive internet connections
(ii). Very slow internet connections
Ideal Solutions:
(i) A new technology that allows me to access hi-speed internet from my laptop from anywhere in Nairobi
More practical solution:
(i) A business incubator focused on businesses in need of hi-speed internet access for their business to thrive. The incubator would provide subsidized hi-speed internet access for the business 1st phase of life.
2. Have you tried to approach any local institutions for financing? If so, what has been the response?
Not yet. We intend to speak to at least 2 institutions and at least 3 private investors this year.
3. How did you handle the transition from being based in the United States to being based in Kenya? Is there anything you’d do differently?
Things I would do different:
(i) – Prepared myself better for the lack of inexpensive high speed connections. (Actually, I am not sure how one does this 
)
(ii) – Established temporary office space (or place to live) prior to arrival (so I avoid working from my parents home). Having a central place to operate from is soo critical.
(iii) – STOP thinking of expenses in dollar terms. I took me months to start valuing services and products in terms of Kshs and not dollars. There is a world of difference as soon you make the switch.
Things I did correctly:
(i) I took time in looking for good people. Kenya is full of wonderful talent, but you have to take your time finding them. Finding good people has been the best thing I did for MamaMikes.
4. There’s been an interesting debate going on in the Kenyan blogosphere about the dearth of investment opportunities in Kenya (esp. for Diaspora-based Kenyans aka KT’s) beyond the overdone real estate market and the stock exchange – what’s your view on this? Where else could guys be putting their money?
I can’t comment on this properly, because most of what I own is tied up in MamaMikes. I have not invested in real estate or in the stock market. So I lack the experience to offer ‘tried and tested’ answers.
Also, I have an issue with how the question is phrased, why call investments in real estate and the stock market as “overdone”. The people I know who have invested in the stock market have done and continue to do phenomenally well. I think investments are ‘overdone’ when they stop generating returns. So long as they continue to give you good returns they will remain a good investment.
If I had cash, where would I invest today?
(i) Planting Eucalyptus trees to feed fuel hungry tea factories. (Tea factories require wood fuel to process tea. And they can’t get enough. The same trees can be used as electricity poles and are used for Charcoal).
(ii) Investing in low income housing in populated areas (target rental rates averaging between 5k – 15k a month). For example in areas like Eastleigh.
(iii) Investing in a learning institution – offering a niche education, not yet offered in Kenya. Eg: Mobile phone programming, high-end web programming
(iv) Investing in good people, who lack the capital to build and develop their ideas.