In the hallways of Jomo Kenyatta University of Agriculture and Technology, five students embarked on a journey that would forever change their lives.
Their story is one of determination, foresight, and the unwavering belief that a small savings scheme could bloom into a thriving real estate empire.
It all began after the completion of their studies in December 2002.
Computer scientists Samuel Njenga and Joseph Mwaniki, along with three other friends, found themselves at a crossroads.
With their graduation in March 2003, they were poised to go their separate ways.
They resolved to start a savings scheme, each contributing Sh5,000 a month, as a means of staying connected.
Little did they know that this modest initiative would evolve into something much grander.
They had no inkling that their decision to continue their contributions and invest in stocks at the Nairobi Securities Exchange would be the first step on a remarkable journey.
Over the course of two years, their initial investment of Sh5,000 per month had grown into an impressive Sh800,000.
With these funds at their disposal, they ventured into real estate, purchasing two plots in Membley area, Kiambu County.
This marked the inception of their entrepreneurial path.
The group, having tasted success, continued their monthly contributions while working in various public and private sector roles.
Along the way, five more individuals joined their initiative.
Samuel Njenga, now the managing director of Itrade, recalls how they decided to divest from the Membley plots after a period of significant appreciation.
They did so with a “handsome profit” and reinvested their gains into a one-acre plot in Kitengela, Kajiado County. Their strategic thinking and shrewd investment decisions set them apart.
With this Kitengela plot, they didn’t just stop at a single investment.
Instead, they subdivided it into ten plots, successfully selling each one. This pattern of buying, developing, and selling land became a profitable cycle for them.
Their real estate ambitions were taking shape.
As their endeavors grew, so did the need for a more structured approach.
The remote owner-managed model of management was no longer viable. It was time to take a bold step.
They registered Itrade as a company and established an office. Samuel Njenga assumed the role of managing director, and Joseph Mwaniki became the finance director.
This transformation allowed for more efficient decision-making in the day-to-day operations of the firm while reserving major decisions, such as land purchases and funding for new projects, for the board.
Itrade’s transition into real estate development occurred serendipitously.
A client living abroad entrusted them with overseeing the construction of a single housing unit, a task they executed successfully.
Encouraged by this achievement, they decided to delve deeper into the construction sector and form a construction company. Simultaneously, they realized the importance of expertise in various areas of their business.
Recognizing the gaps in their knowledge, they diversified their team by bringing in professionals.
An interior designer, a banker, two auditors, and an accountant joined their ranks, enhancing their capacity to make informed decisions and offer top-notch services in their real estate investments.
Their maiden real estate project was Itrade Gardens in Ruiru, a gated community comprising six maisonette units.
The project was a resounding success, and the earnings were substantial. This achievement fueled their ambition, and they sought financing from Kenya Commercial Bank Group and HF Group to embark on larger developments.
Their initial forays into these projects were met with such enthusiasm that the estates sold out during the construction stage.
The success of these projects prompted a pivotal decision in 2015 – the transformation of their land-buying company into a housing developer.
This transformation marked a turning point for Itrade, propelling it into a rapid growth phase.
Today, Itrade stands as a real estate powerhouse. With 20 permanent employees and up to 100 temporary workers, depending on project needs, the company is a source of employment for many.
Its financial growth has been impressive, with turnover soaring from Sh500,000 in 2006 to Sh400 million in the 2016/2017 period.
The incorporation of a hardware business contributed to this growth, with turnover reaching Sh100 million in 2012 and rising to Sh250 million by 2015.
The journey is far from over for Itrade.
Samuel Njenga has his sights set on even greater achievements.
“In the 2016/2017 period we realised a Sh400 million turnover and are eyeing to hit the Sh1 billion mark in our next growth period,” says Mr Njenga adding that they are soon breaking ground for two new projects in Ruiru and Kinoo worth Sh450 million next year.
Samuel Njenga’s advice to those embarking on similar journeys is rooted in the principles that guided their success. He emphasizes the importance of patience, trust, and synergy among members.
Listening to every member’s input and focusing on the realization of agreed strategic goals are key. He also encourages chamas (savings schemes) to avoid petty conflicts and remain steadfast in their commitment to long-term growth.
