GRINDING OUT JUICY INCOME BY ADDING VALUE TO GROUNDNUTS, CASSAVA AND CEREALS

Michael Gakinya Mwangi displays some of the products he makes through value addition in his firm in Murang'a. PHOTO | FAITH NYAMAI | NATION MEDIA GROUP

By FAITH NYAMAI 

He took sometime thinking whether the idea of going into business was the right one for him. Eventually, Mr Michael Gakinya Mwangi decided to take the plunge.

Two years down the road, it is clear to him that he made the right decision and the sky is now the limit.

Mr Mwangi is the brains behind NutMasters Company Ltd, a firm that adds value mainly groundnuts to make biscuits, cookies, bread, and peanut butter.

The company is located at Mukuyu, Murang’a County, along the Sagana- Thika highway.

Aside from groundnuts, the business uses cassava tubers, sorghum, millet and wimbi to make and package porridge flour popularly known as uji mix flour.

The couple has been marketing their products through internet and social media. They also have a website.

Mr Mwangi says after realizing  how rich groundnuts are in nutrients, he decided go add value to them in order to reach a wider market.

“The business has room for expansion because since we exposed our products in the market so many people liked them, we get countless calls placing orders on a daily basis,” explains Mwangi

Mr Mwangi registered the business in May 2014. He pumped Sh700,000, which he had borrowed from a bank. He used the money to buy a posho mill, baking equipment and a roster for grinding the groundnuts, among other essential items.

Before venturing into the business, Mr Mwangi was working as driver at Simba Telecom Ltd in Nairobi, a job he quit immediately his start-up was up and running.

However, the start-up was just operational for a month before closing down.

He says he was forced to travel to the US a month after starting the business to visit a brother who was hailing. He left the fledgling venture in the hands of a partner, who was unable to keep the business afloat.

Mr Mwangi returned to Kenya in December, 2014 only to find that his dream company was no more. He was however determined to pick up the pieces and begin afresh.

Thankfully, all his equipment were intact. This is when he decided to bring in is wife Evalyne Muthoni as a partner. Since then, the business has been making impressive progress.

Mr Mwangi has been working closely with farmers in Maragua Meru County who grow groundnuts in large scale. He buys some of them in parts of western Kenya.

They have also identified cassava, wheat, sorghum, millet and Wimbi farmers around from whom they buy the raw materials.

“We use groundnuts mainly to make our products. We mix it with other farm produce to make our products,” he says.
The company has 12 employees all of whom work as sales persons.

“Every time I want to market my products, I take about three workers with me. I have trained them on marketing skills,” says Mr Mwangi who is a trained salesman.

The firm has developed a strong network of customers from seven counties including Nyeri, Murang’a, Embu, Kirinyaga, Meru, Kiambu and Nairobi.

The prices of the products range from Sh50 for the bread, uji mix flour and cookies to Sh200 for the peanut butter products. They supply most of their products to retail shops and supermarkets.

Mr Mwangi notes that among the challenges they faced when they set out on the business journey was penetrating the market and gaining the confidence of their customers.

“The fact that we are using groundnuts and traditional farm products has made us stand out and attract increasing number of customers,” he says.

They have been marketing their products in agricultural shows. They also get customers by referrals.
For Mr Mwangi and his wife, determination is the key to success.

They project that in the next five years their company will be among the best suppliers of groundnuts and cassava products across the country.

Since last year they have been making between Sh180,000 and Sh240,000 monthly.
SOURCE: NATION MEDIA