Man who bets against all the odds

By Kenneth Kwama

As investment companies scramble to reduce exposure to market volatility and the vagaries of the slowing economy, one of the country’s largest investors is still planning to invest where others fear to tread. Certainly, Trans-Century Ltd (TC) and its long-term bets have almost always paid off.

Over the past years, Trans-Century has been working hard to shake off its perceived links to high profile individuals in the Government, as it grapples to build itself a public profile.

But the firm’s profile is not public enough yet and people still perceive it as a private, deal-making cult.

The investment group comprise a line-up of powerful people, including Eddy Njoroge, KenGen managing director, Michael Waweru, Commissioner General of Kenya Revenue Authority, Jimnah Mbaru and state house operatives-Zeph Mbugua and Peter Kanyago.

secret ingredients

Although TC has 29 members, the largest shareholder, public face and Chairman of the group is the hitherto, less known James Mungai Gachui, variously described as a keen golfer.

East African Cables, a manufacturer of cables and conductors, is one of the investments in which Trans-Century controls a major stake.

FJ encountered Gachui at the launch of a business exhibition-Expo 2009. The Expo is an annual event organised by the Oshwal Community to bring businesses together to help them tap into new markets for their products.

With a head for business and a heart to go with it, Gachui is indeed a rare business mind. He shared with the audience a few of his secret ingredients and a glimpse into his personal thoughts and TC’s operations. Gachui says that most businesses fail because they focus more on competition. In his opinion, there would be more successes if business owners embraced collaboration as their model of operation.

"Nobody invited me here, but I came. I was interested because it was a business expo and I’m an entrepreneur. I saw a lot of opportunity for networking," said Gachui.

Gachui attributes Trans-Century’ success to the fact that the group is made up of people who agreed to work together for a common good.

Says Gachui: "There is strength in numbers. When people come together to do business, they succeed."

largest shareholder

TC’s efforts have yielded much because it now has major stakes in myriads of big companies, both in Kenya and across the borders.

Its interests spans several businesses and it is the controlling shareholder in East African Cables Ltd. It’s also the largest minority shareholder in Rift Valley Railways, where it owns a 20 per cent stake.

TC also boasts significant shares in Development Bank, Equity Bank, Kenya Power and Lighting Company and Avery East Africa Ltd amongst others.

It acquired 75 per cent of the cable maker in 2003 from industrialist Naushad Merali for Sh240 million but the value of the company has since risen by more than 1000 per cent, partly boosted by a massive upward run of its share prices at the Nairobi Stock Exchange more than two years ago.

As at May 28, 2007, Gachui was the largest shareholder at Trans-Century.

He owned 1.7 million out of the total 19.6 million shares in the investment company’s portfolio. Another notable figure in the group who also accompanied him to the expo, Jimnah Mbaru-was then the sixth largest shareholder with 1.17 million shares.

Mungai Gachui, Trans-Century chairman, says that most businesses fail because they focus more on competition. [PHOTO: Jonah Onyango]

There is no easy dissection of the Gachui phenomenon. Where other people proclaim doom, he sees opportunity.

"It is true many businesses are experiencing problems because of last year’s post-election crisis. Economic growth has been revised downwards, cost of food and energy have gone up and people are losing jobs," says Gachui.

But according to Gachui, this should be no excuse to give up. He says he has always admired the private sector for its resilience and believes the sector will stay strong even on the face of political squabbles."Political crisis is not new, but we should continue praying to attain the right environment for business. I believe we will be fine," says Gachui. According to Gachui, local companies should take advantage of the big number of professionals who are being herded back home by the financial crisis that is currently wreaking havoc in companies in US and Europe.

positive attitude

"Much as it could be negative for the affected, it is a positive thing for local businesses and they should take advantage of these skills," he says.

In his professional career, has blazed through various positions at Kenya Petroleum Refineries Limited in Mombasa where he rose to become senior technologist from an entry-level trainee technologist.

He joined Total Kenya in 1978 and rose to the position of Operations Manager, a role he held until 1985 when he was moved to Paris, France to the Supply and International Trading Department. He left Total in 1993 to launch Galana Petroleum. He retired from the business in 2000.

Besides TC, he is also Chairman of Wananchi On Line Ltd, and Jimana Ltd.

He is also Director of RVR, East Africa Cables, Chase Bank, Kewberg Cables and Braids, and Metal Fabricators Zambia Ltd.