Ninitz Kerosene Is Launched

Today we managed to clear all of the hurdles to launch Patrick's business, Ninitz Kerosene. For the record, this business was started for 7525 Ksh ($119). Before we distributed the rest of the money, we wanted to see Patrick's receipts for the rent and the tank, as well as get Mma Agnes, owner of Kibera Kerosene, from whom we'd purchase 100 liters of kerosene, to agree to mentor Patrick. The photo shows, from left to right, Patrick, Agnes, an employee filling Patrick's tank, and Henry.

I explained to Agnes how those of us who had been here last year really wanted to help him start his business, but that we were also concerned that he didn't really know how to run a business. Henry explained to her that we wanted Patrick to deposit with her on a daily basis an amount equivalent to the cost of what he'd sold for the day. This would insure that when his tank emptied, he'd already have the money on deposit for his next tank of kerosene. She agreed to do so, offering to write up receipts and keep a book for him to keep him going. I was overjoyed.

Once the deals were completed, we had a wonderful conversation with Agnes about her business. She's been in business for about four years, and is one of the three large suppliers of kerosene in Kibera (otherwise one has to go into town for large amounts). She said that Patrick was lucky because she'd started with a loan that she was still repaying (that said, I think she's actually doing reasonably well--interest can be from 12-18%, which is likely why her loan continues.) She is mainly a wholesaler, and it turned out that she'd actually given us her wholesale price, because that’s how her tanks are set for dispensing kerosene. This was really kind on her part.

Agnes discussed how difficult it had been to start her business. Initially friends had promised to support her, but when she actually went to them, no one would help her. She eventually managed to scrape together what she needed. Once she started making some money, though, her friends started coming to her for money. She said the whole thing taught her a lesson about who you can trust and who your friends are. She also said that the only one you can really talk to about your problems is God, and although he doesn't send an obvious answer, he will listen. It was really interesting to hear her talk like this.

Agnes also said that she was always very careful with her business, mainly reinvesting in the business, rather than taking out money for herself. I kept looking at Patrick, trying to make sure that he was hearing her messages (because they were definitely better coming from her than from me). We asked her whether Patrick's business could be successful, and she assured us that he should have no problem, as long as he reinvested his earnings, rather than simply spent them. She also said it should be pretty easy for him to grow. We closed on an upbeat note--Agnes asked when we would be back next year, and she predicted that we could have a party to celebrate Patrick's success, and that she wanted to be at that party.

I do hope she'll mentor him during this difficult time. Running a business is not easy, and it requires discipline. I've actually put in more effort than Patrick this week to get his business off the ground, as did Henry. I wonder if he knows that. We should all hope for the best.