“The Den made us sweat but am happy with the deal,”

Michael Kinuthia director Nozy customs. [Photo by David Gichuru, Standard]

Most of us can recall, in our teenage years, standing by a bus stop waiting for a specific matatu to show up because we liked the artwork on the body, the interior design or the sound system. It is because of this customer appeal that the matatu art industry has grown in leaps and bounds.

The potential in the industry attracted Myke Rabar, HomeBoyz founder and a Lion in the KCB Lion’s Den, to invest in entrepreneur Michael Kinuthia, who pitched for Sh1.5 million in return for 15 per cent of his matatu graffiti company, Nozy Customs.

“My experience in the Den was strange and intimidating. For starters, I had never heard of the Lions. When I received a call that they were interested in my company, I thought it was a prank,” Nozy, as he is popularly known, tells Hustle.

“I was even more suspicious because they wanted details about my graffiti and my company. But as I kept talking with them, they sounded legit so I decided to give it a chance.”

Nozy, along with his business partner Eliud Ndungu, set off preparing their pitch, which included a breakdown of the company’s finances and a display of their work.

“I learned my craft from a guy called Donna, who quit the industry in 2008 when it was illegal to graffiti a matatu. Those were tough days for us because most of us didn’t know how to do anything else and never imagined we would have to because the industry was very lucrative.”

Nozy says before the crackdown on matatu art, a typical project took one month to complete. The total cost was between Sh80,000 and Sh100,000 and they would rake in a profit of approximately Sh40,000.

When the industry declined, most of the artists transferred their graffiti works from vehicles to T-shirts. He started his own printing, Nozy Wear.

“The T-shirts also had good business, but it was tedious because we had to do every single shirt by hand. We would charge Sh1,500 per shirt for a profit of Sh1,000.  On most days, we did up to 10 T-shirts. I stayed in the business for about two years until the matatu art business started picking up again.”

It was in this re-emergence that he started his company, Nozy Customs. His start-up was only Sh4,000, which he used to buy an airbrush gun. He charged Sh35,000 for his first job.

Nozy currently charges between Sh70,000 and Sh100,000 for body work.

“This has been another tough year though, because banks are not giving as many loans as they used to so fewer people can afford to buy matatus. And those who can are holding onto their money due to the uncertain political climate in the country,” he says.

Average turnover

Back in 2015 and 2016, when banks and Saccos were issuing loans, Nozy Customs worked on four to five matatus each month at Sh150,000 per vehicle. In 2017, their average turnover declined to Sh100,000 per month.

Ironically, when Nozy and his business partner were in the Den, it was the questions about their turnover and their intended use of the investment that challenged them the most.

“In my industry, very few of us keep record books because nobody has really been taught how. We have a very ‘instant cash-instant use’ kind of system. Until we were called to the Lion’s Den, we knew little about turnover or projected income. We were helped by their financial advisors to put together a spreadsheet based on our costs versus our billing,” says Nozy.

“I now realise how crucial this is. I’ve watched my counterparts go from making over Sh200,000 a month to not knowing where their next pay will come from. I’ve been lucky enough to operate more responsibly but still need to get to the next level where I can plan for my business several years into the future.”

Despite the challenges, Nozy Customs secured investment from the Lions. Nozy believes Myke Rabar’s interest stemmed from both the potential of the business and Rabar’s understanding of the nuances from which the industry operates.

“The matatu world is very different from the normal corporate world even in terms of the language of choice. When we were sitting with the other entrepreneurs in the waiting area, everyone was conversing in English, including the producers of the show. Eliud and I kept looking at each other, wondering if we would hack it,” he says.

“When we got into the Den, I started pitching in English but realised if I continued like this, I wouldn’t be able to express myself. So I said, kama mbaya mbaya and switched to sheng. I think the most important thing is always to be yourself and express yourself in your most comfortable way.”

Happy with deal

Nozy ended up giving away 33 per cent of his company instead of his initial offer of 15 per cent. However, he is very happy with the deal because, he admits, the greatest weakness of his company and his industry in general has been lack of a solid business direction.

He knows Rabar will bring this and more to the table as they put in systems and structures to take Nozy Customs to the next level. 

“My vision is to go beyond artwork. I would like to do interiors and bodywork as well. To stay competitive we will have to diversify. We are definitely on the right track,” says Nozy.

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