Joseph Gitonga is the Director of Sales and Marketing at real estate firm Username Investment Limited.
We didn’t have much capital when we started this business. During our first land purchase process, we paid for a property that had been acquired fraudulently and lost Sh. 5 million. This was all the money we had, some of which was borrowed. We hit the dead end. But while all hope seemed lost, one land owner agreed to partner with us. This helped us recover from the loss. In yet another deal, we lost Sh. 30 million in a land repurchase deal. It turned out that the land belonged to another owner who lived abroad. We renegotiated with the rightful owner in very difficult circumstances and finally managed to buy the land again. But all our profits got lost. This was one of the lowest moments of my life. We are now very keen on due diligence when acquiring any property. We are careful to ensure that we sign all legal documents as a company and the same applies to our clients.
Muhoho Kenyatta: The man who runs the Kenyatta family business empire
You can turn heavy losses around. Despite our losses, we have built a firm that is recognized as a powerhouse in Kenya’s real estate sector. We have over 50 employees and more than 500 indirect workers. We have also accomplished over 39 projects, issued over 8,072 title deeds and formed a client base of over 10,200 clients since our establishment in 2013. Identifying and solving the housing need for low earning people has been the door to this success. Every Kenyan needs a place to call home, but not every Kenyan can afford properties worth over a million shillings.
I did not budget or invest adequately when I graduated from college. I treated my salary as too little to be invested. I would pay bills and other basics, and blow the rest in extravagant living. I have since learned that no money is too little to be invested, and no money is too little to be budgeted for. Without a budget even top salaried people end up losing millions, shilling after shilling goes to frivolous spending and eventually bad debts.
I save my money through the money market funds. These savings are goal oriented. Currently, I am getting interests ranging from 8 to 10 per cent on my savings. Though this saving plan offers liquidity within 2 to 4 days, it has discouraged me from unplanned and unnecessary expenditures. Previously, I used to save money through a savings bank account. I earned lower interest rates in comparison to what I earn today. In most cases, inflation rates were almost as high as the interest rates.
Money is not the end goal, it is a means to a goal. I believe this is how people should approach their finances. It helps to develop self-accountability and transparency. If you look around, we are getting this realization that life is actually very short. You’re here today and gone tomorrow. Pursue excellence and enjoy the process. Always, avoid short cuts as they come with long delays around the corner. There is no perfect path to success; mistakes and failures are part of our lives as well as entrepreneurial journeys. To reduce instances of making basic mistakes, always have a business mentor and seek advice from seasoned entrepreneurs. This network of seasoned peers helps one to make progress faster and make confident decisions.
There is too much emphasis on material wealth in Kenya. People are obsessed with things that matter less – appearance than reality, to impress rather than to impact, and leading plastic lives. We have sidelined the time and efforts required in building careers, wealth, relationships and family. We need to go back to the basics and start all over by having a clear and well written set of goals, and a specific plan on how to accomplish them. Studies show that people with a clear plan are 85 per cent more likely to accomplish their goals than those who never bother with planning.
This feature on Joseph Gitonga was first published by the Saturday Magazine. The Saturday magazine is a publication of the Nation Media Group. You can read the Nation Media Group publications by subscribing HERE!