After being decorated in the continental arena for her
achievements in the business circles, Keroche Breweries chief executive
officer Tabitha Karanja is resting easy as she savours her success in
beer making industry.
In less than
two months, she scooped two coveted awards, the CNBC Business
Development Manager East Africa and the CNBC Africa All Africa Business
Leaders Award. This has catapulted the amiable CEO to the pinnacle of
high-end achievers in the business.
Buoyancy
is now what is driving Mrs Karanja, with the glamorous awards having
raised her stakes as well as social ranking. “It was a humbling
experience that has pushed my efforts a notch higher.” She notes.
“It
will inspire others harbouring valid dreams of making it no matter the
obstacles,” says Mrs Karanja, with measured confidence.
She
is steering a Sh7 billion investment, having started with Sh100,000
focusing on making fortified wines. “We used the capital to buy a
second-hand machine that could only manage 100 cartons a day.” She
said. Luckly, the market was receptive and soon, demand went beyond
supply, calling for expansion.
THANKSGIVING PARTY
Seated
behind an executive mahogany table, Mrs Karanja cannot wait to take a
well-deserved Christmas break. “Since venturing into the liquor making
business… perhaps this would by my most relaxed Christmas. In the past, I
had little time to celebrate,” adds the CEO.
A
devout Catholic, she appreciates the importance of Christmas but the
demands of her work meant she had little time to make merry as she
plunged in the uncharted waters of beer making, a monopolised market,
hitherto.
Her well-deserved break
will come with goodies for her family. “I love cooking. I will ensure I
will be the one in the kitchen cooking for my family. It has been a
while,” says Mrs Karanja.
To cap what
has turned out to be a promising business for her, on November 29, this
year, Ms Karanja surprised her husband and Keroche Breweries chairman
Joseph Karanja with a “thanksgiving party” for his support in ensuring
that their brewery thrives.
“He has
been a pillar of my success. Not many in his shoes could afford their
spouses such a leeway to chase their dreams and ensure they emerge
tops,” reminisces Ms Karanja.
Adding, “together with my children, we decided to fete him and catch him by surprise. The trick worked.”
The
guests list included Mr Karanja’s blossom buddies and it was quite a
“refreshing” moment for the down-to-earth chairman, who likes to pull
strings behind the curtain.
But with a
mega brewing plant coming up, Mrs Karanja will only have a few days to
unwind, as she works on the final logistics for grand opening of the Sh5
billion factory in early 2015.
The of Head of State is expected to grace the occasion, with a tentative opening date slated for March
With
a production capacity of 600,000 bottles per day, the CEO is conscious
of the fact that she needs to step up her game in marketing with a view
to capture 20 per cent stake. “The new production plant has the capacity
of producing 30 different brands, thus having my work cut out,” says Ms
Karanja
And, she has hit the ground
running, meeting traders from different counties, exploring ways of
expanding her sales in readiness of the increased production. She is
leading from the front accompanying the sales team to the potential
markets.
Contented that she will
ably satisfy local demand, Mrs Karanja will start making inroads into
Tanzania and Uganda before spreading wings to the continent.
“The work has just begun at Kercoche Breweries. More is to come,” she reveals.
She
ventured into a market where few could have dared, taking on a
decade-long business monopoly and conquering age–old gender prejudice to
become a major player in the country’s profitable drinks industry.
Mrs
Karanja prides herself of having broken an individual borrowing
ceiling, managing to secure Sh5 billion loan to fund what is probably
the biggest investment in Kenya, this year.
CLOSING THE GAP
After
trading in manufactured products for close to a decade, she decided to
do something more challenging. At the time, she was already running a
hardware in Naivasha but an urge to get into manufacturing saw her take
the leap of faith. The year was 1997.
She was not sure what type on manufacturing she wanted to venture since she was not an industrialist. She conducted research.
“I
found a gap in the liquor industry. Drinkers in the lower end and
middle income bracket were left to consume cheap brews of unknown
quality that were readily available. That is where thought of venturing
into the liquor industry was born,” she recalls.
Little
did she know what she was getting into; expecting a smooth sailing as
her business continued to register impressive growth, she oozed
confidence. But she was in for a rude shock, entering an industry that
had been monopolised for over 80 years and, soon after, she was in the
deep end.
On a Tuesday afternoon in
2003, a lawmaker tabled a motion in Parliament saying her business was
making killer brews. The MP alleged that the liquor had killed two of
his constituents, allegations that could not substantiated and motion
was defeated on the floor of the House. But CEO was ordered to furnish
the August House with papers to prove that, indeed, her brews were up to
the set standards. She complied.
Always
on the tenterhooks. She did not know what to expect. And in what
appeared to be a well-orchestrated plan to eliminate her in the market,
she endured intimidation. As the storm raged, her billboards were
defaced on the evening of October 20, 2006. The Kenya Revenue Authority
(KRA) was also in pursuit, demanding Sh1.2 billion as back-dated tax
arrears, to be paid up in 14 days.
The
Sh1.2 billion did not include interest and penalties. In total, she
owed the taxman about Sh2 billion. “At the time, I was paying 45 per
cent tax but they were now demanding 65 per cent back-dated to 1998. “
Having
weathered the storm, the high flying CEO current range of products
include, two ready-to-drink vodka brands, four spirits and three wines.
With a current five per cent market share of the beer market, Keroche
plans to capture 20 per cent of the beer market and 30 per cent of the
spirits market from the current 20 per cent next year.
QUALITY BREWED
The
company produces Summit Lager, Summit Malt, Vienna Ice, Viena Ice Lemon
Twist, Valley Wine; Pinotage’ , Chenin Blanc and Savignon Blanc and
recently launched a Crescent range of triple distilled spirits; Vodka,
Whisky, Dry Gin and Brandy.
To
budding entrepreneurs, Mrs Karanja says, “whatever you feel you want to
start, you must be conscious of your priorities, otherwise when you face
one challenge, you will be tempted to bolt away. Secondly, whatever you
are doing, you must offer a superior quality and be convinced beyond
doubt that it will succeed. Happy holidays.” She concludes.
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