Paul Njagi, a Kenyan businessman has advised young Kenyans who wish to be business people to go for it with whatever amount they have.
He explained that in entrepreneurship, all one needs is the desire to do business and the rest, including enough capital will bring itself.
Njagi recounted how he started his cereal business with Sh5,000 capital. He noted that the business which is currently worth Ksh3 million was started with only 50 kilograms of maize and 10 kilograms of yellow beans.
The businessman revealed he would source stock from farmers in his rural home in Kyeni, Embu County, and sell to customers by the road side since he did not have a shop.
”I started as a small trader five years ago, selling my produce on the roadside. Today I can look back and smile because my store is now worth Sh3 million with some smaller branches countrywide.’’
”The journey has taught me that you do not need capital to start a business. All you need is a burning desire to do business. Capital will bring itself from places and people you do not even expect,” he said.
He noted that what helped him in his business is a strong saving culture. Being a member of Co-op bank, he would put part of his earnings to a savings account which helped him get a loan quickly.
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His biggest breakthrough was when a friend informed him that a nearby animal feed company was looking for maize suppliers.
Determined Njagi approached the company and convinced it that he would supply them with maize, marking the beginning of her growth in the cereal business.
“I had no idea where to get the maize from, but I knew I would get some bags at a cheap price,” he said.
He later approached Co-op bank for funding to start his supply business. Fortunately, he was able to get a Sh500,000 loan which helped him purchase several bags of maize. Part of the money was used to facilitate transport of the maize from farmers to his store.
Today, the once Sh5,000 business is worth Sh3 million, with five branches in Embu, Kiambu, Mwea, Nairobi and Machakos. The businessman noted that plans to open two more branches are underway.
He explained that all these branches have largely been built on loans. He advised business people to make good use of loans for business expansion.
”You cannot grow in business without loans. Throughout my business years I have been relying on the Co-op bank MSME Term Loan. I prefer this loan product because it attracts a low-interest rate and has a long repayment period,’’ he noted.
Co-op Bank’s MSME Term Loan enables customers to access the financial help they need quickly to achieve their business goals.
It targets business people and allows them to borrow a certain amount for business expansion or to raise business supply capabilities.
The amount borrowed can be repaid in up to 60 months based on the business level and the type of security provided. Â The interest rate is capped at 13 percent per annum.
Features
Amount of unsecured term loan
- Bronze: Ksh 600,000.00
- Silver: Ksh6,000,000.00
- Gold: Ksh 10,000,000.00
Fully secured term loans
Up to 24 months of repayment for unsecured borrowing
Up to 60 months repayment period for secured borrowing
The loan is available to any business with an active bank account. However, to qualify, the business needs to be in operation for at least 12 months.
Other requirements include a business license for the current year, certified bank statements for 6 months, a copy of KRA, and the National ID.
To apply, visit any Co-op Bank branch or click here for more.