Pioneer M-Pesa dealer rides the telecoms wave

 

Esther Muchemi, founder and chief executive Samchi Telecom. Photo/Courtesy 

By David Herbling

In Summary

Milestones

• 2000 Opened Samchi Telecom on Koinange Street, Nairobi, to sell airtime, mobile phones and SIM cards.
• 2002 Opened Samchi’s second branch in Eastleigh, Nairobi.
• 2006 Became pioneer M-Pesa dealer as the service was being tested before being officially launched.
• 2009 Named best dealer in distribution resources by Safaricom.
• 2010 M-Pesa agent of the year.
• 2011 2nd runners up dealer of the year and best M-Pesa agent.
• 2012 2nd runners up dealer of the year and best data dealer.
• 2014 Named finalist in the Ernst & Young Entrepreneur of the Year Awards.

• Pioneer M-Pesa dealer rides the telecoms wave

After working for nearly two decades as an auditor, Esther Muchemi decided to venture into Kenya’s nascent telecommunications business where she saw many opportunities.

Ms Muchemi founded Samchi Telecom in 2000 to sell airtime, mobile phones and SIM cards, with hopes of cashing in on the imminent mobile revolution that was to sweep the country.

“Telecommunication business was on the verge of exploding. I had an instinct that IT was going to be a big thing in Kenya,” says the University of Nairobi accounting graduate.

Samchi Telecom was in 2009 and 2010 honoured as the top M-Pesa agent by Safaricom, based on transaction volumes. The company has severally been ranked as top airtime dealer for the telco.

Earlier in 1996, Ms Muchemi set up an auditing firm, Esther Muchemi & Co, but the venture was not raking in enough cash like she wanted.

“I decided to get into entrepreneurship. I knew I would get what I want by being self-employed,” she says.

Ms Muchemi says she used Sh800,000 to set up her first outlet at Nginyo Towers along Koinange Street in Nairobi.

Successful businesses

At first, Samchi Telecom was a retailer of both Safaricom and Kencell (now Airtel) airtime and SIM cards, but Ms Muchemi made a decision in 2001 to be an exclusive Safaricom dealer.

“The commission structure was very great in the early years,” says the entrepreneur.

Samchi Telecom is a wholesaler, retailer and distributor of other product lines such as modems, USB flash drives and wireless devices such as tablets and Webbox.

“We’ve grown organically. I have relied on credit from suppliers and my bank to grow the business,” she says.

In 2002, she opened Samchi Telecom’s second shop in Nairobi’s Eastleigh estate. The business is now a network of 42 outlets countrywide, a great feat that has seen Samchi open at least two new shops every year.

She declined to disclose the firm’s turnover but it is believed to have grossed the billion shilling mark.

Ms Muchemi’s efforts to set up one of Kenya’s most successful businesses saw her named as a finalist in this year’s Ernst & Young (EY) Entrepreneur of the Year Awards (EOYA), Eastern Africa chapter.