They started with nothing. In fact, they were just a group of slum-dwelling matatu touts who earned less than Ksh400 per day. But today, they own a business that has been valued for not less than Ksh500 Million ($5.6 Million). We present to you, the success story of Umoinner Sacco.
Umoinner Sacco
To most Nairobi residents the name Umoinner is a household one. Their buses ply the Nairobi-Umoja-Innercore route and are well-known for their outstanding graffiti. But beyond the glitter and glamour, this brand has a humbling story – one that will challenge you to always outperform your potential.
(Related Article: 35 Ways To Survive In Nairobi When Broke)
Their Story
Umoinner was started by three members all who were touts (or manambas). In a recent television interview one of their co-founders attested to the fact that they started out saving at least Ksh10 per member per day.
With time however, more and more touts started to believe in this idea and soon they were able to make a contribution of Ksh200 per day ($2.2). It was a case of successfully making others believe in your idea even when you have nothing in your pocket.
Their first breakthrough
After about 10 years of saving diligently and sacrificing on some of the most basic pleasures of life, the first product of the Umoinner idea was born (2006). This came in form of a 14 seater matatu which cost them Ksh600,000 to acquire.
However, operating successful in the matatu industry would prove to be a rougher ride than they had expected. The members recall how their rivals once conspired with goons to run them out of business. But amidst all these challenges they learned to improve their strategies to survive.
Three years down the line, their business was thriving but they still had one more huddle to tackle.
The challenge
In 2009, the Ministry of Transport issued a new directive that required matatu owners to organize themselves into SACCOs. So Umoinner decided to register a SACCO.
What they didn’t know however is that only groups with more than 30 vehicles (matatus) were approved to form SACCOs. Umoinner did not meet this threshold at that time and therefore had to wait for 3 more years to get the final approval.
Once they got this approval, they proceeded to brand themselves. Their matatus acquired a unique look. They invested in good management and with time the sky opened up for them.
Clearly, it had taken quite some time for them to make their mark on the road. In fact, cumulatively they had to wait for about 15 – 20 years to see their dreams come true.
Their Success Story
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- Image Source: Umoinner Sacco FB
Today, Umoinner stands tall as one of the best run matau SACCOs in the city. Their membership has grown from 3 to more than 81. Their fleet of buses now stands at well over 100.
They make more than Ksh1.5 million ($16,667) in profits per month a feat that has enabled them to value their company to the tune of Ksh500+million ($5.6m). They have created jobs for over 500 individual from the slum areas of Nairobi. Above all, they run a football event that aims to empower youth in the fight against poverty and drug abuse.
(Related Article: You Only Need These 6 Principals To Succeed In Life)
Lesson Learnt
First believe in your idea even if you don’t have enough capital at that time just stay patient and keep learning. Most importantly, keep saving whatever little you have and use it to fund your dreams. Then if possible find a few people who believe in your dream and pool resource together in the spirit of Harambee.
Which lesson have you learnt from this story? Share your experience with us via the comment box.
