Dr Joe Wanjui, Kenya's Business Guru

A walk through Dr Joe Wanjui’s life
By Samwel Kumba
Meet Dr Joseph Barrage Wanjui, known less formally to his colleagues and golfing buddies as
Joe or JB. He inarguably tops in a coterie of business personalities that have the worthy ear of
the country’s President, Mwai Kibaki. But if you thought that his closeness to the President
explains how he acquired his immense wealth, you are dead wrong.
When The Financial Post (FP) arrived for the interview, he was scheduled for another immediate
meeting and remarked, "I hope you will be brief". The crew acknowledged with starry-eyed
expectations as he strode back to his official seat reaching out for a few cards. His gait is a
semblance of a still very energetic man. It is hard to believe that he celebrated his 70th birthday
on Thursday last week.
Wanjui easily reminiscences about his yesteryears, as a youth, an employee and currently a
business personality, and a successful one at that, ensconced at his prestigious office at the 5th
floor of his Highpoint Hotel located in Nairobi’s Upper hill, next to the World Bank offices .The
Bretton wood institution is also his tenant.
Perhaps one remarkable change that this business magnate has undergone is quitting what he
loved to do at one time-smoking a pipe. Though he has never smoked a cigarette, he loved his
pipe. Asked whether it was by design that he quit, he reveals that he was conforming to what
most people think: That smoking is harmful.
To those who saw him grow as an orphan, given that his father died when he was only eight, this
remarkable success is only a proof that anybody is capable of making it if they are determined
and a saving culture is the rule of thumb.
Wanjui keeps a tight rein on media access and when he is in an open forum, he is handling
issues that tell little to biographers.
Still, over the years, those who know him have attempted to paint the picture of the man behind
an empire whose value we could not immediately estimate.
Invariably, were he ensconced at Wall Street, US, where he studied, the financial capital of the
world, he would understandably remain stolid. For is he not the Croesus of the local landscape?
Raised by his mother, who was only a peasant-Wanjui does not regret his background, "I feel
privileged that I did not have anything to look forward to. We had a small piece of land which,
however, was sold. To me the fact that I had no land to look forward to encouraged me."
Admittedly Wanjui says that all he has made, he owes it to his mother. Infact when his mother
died, in her tombstone, Wanjui wrote, ‘all that I am my mother made me’. She was a woman he
simply describes as having been strong, hardworking and focused. One who easily knew where
she was destined to go.
But today, it is an indelible truth that Wanjui’s name will eternally be associated with Kenya’s
corporate and the private business world as well as politics. But he has a sanguine character and
detests shouting about what he does.
Despite his humble background, Wanjui emerged a top notch student in his academics. He
qualified to join Makerere University from Mang’u High School having been invited do a degree in
Medicine which however, was at variance with his dreams and ambitions.
In an unprecedented move, Wanjui easily turned down the offer and opted to go to the US. He
received two scholarships-Fulbright and African-American Institute- and he preferred the latter
because it did not require him to come back after his first degree. Thought to be top amongst the
richest Kenyans, one can only wonder where he acquired capital to start his companies. Before
going into private business, Wanjui’s first port of call was as an employee of Esso. He started off
in New York as an executive trainee.
However, his entrepreneurial skills can be traced back to his university days as a student. He
worked and saved while he studied which developed his culture of frugality and investing
enthusiasm.
It was in 1964 when Wanjui was to be posted to his motherland-Kenya-with Esso and little did he
know that his corporate life was just but beginning. Prudence dictated that the employer
accommodates this budding chief executive and he was booked at Nairobi’s Norfolk hotel.
Hardly had Wanjui settled that an opportunity arose. The government was looking for an
executive director with a Masters in Industrial engineering to head the Industrial and Commercial
Development Corporation (ICDC).
Not letting the opportunity slip away, he applied for the job. "After the interview, I was found
suitable. This threw me into a dilemma. I was still staying at the hotel at the expense of Esso.
How could I justify the expenses and immediately leave the company for my new job?" However,
Wanjui discussed it with the government which in turn discussed it with the then chief executive of
Esso who understood and released Wanjui to report to his new destination. At the time Wanjui
climbed to the helm of ICDC in 1964, Dr J. G. Kiano was the minister for Commerce and Industry
and President Mwai Kibaki was the assistant minister for economic planning. Already, Kibaki and
Wanjui were friends. But what the world sometimes forgets is that the billionaire abhors being
pigeonholed into that angle of looking at things.
He often thinks that this would reduce him to a Lilliputian. Whether you hate him or like him, Dr
Wanjui has given a life to thousands of Kenyans by creating jobs through the numerous
businesses in which he has interests.
But when did he meet President Kibaki? "I have known the president for a very long time. Even
when I resigned to join the East African Industries (EAI)-currently Unilever-he was the one to
whom I resigned."
Wanjui unreservedly expresses his respect for the president. Little wonder then that President
Kibaki launched his book-From where I sit-in 1986 when he (Kibaki) was the Vice President and
minister for Home Affairs. Kibaki is the one who wrote the book’s foreword.
"I think he is a true democrat. I do not know of any Kenyan politician in all the years I have lived,
who is as democratic as President Kibaki. Even when he was the Vice President, he allowed
everybody some space. He enables you to say your views without considering whether you are,
in what they nowadays call ‘a Muthaiga member’ or from any other cadre, including a waiter,"
Wanjui says of President Kibaki.
In his administration, President Kibaki is said to have taken a back seat leaving his soldiers do
the work. His critics argue that Kibaki has lost control of his soldiers yet his supporters assert that
although he does not go round shouting, he runs the country in a style that respects everybody
who in turn feel empowered.
Undeterred, The Financial Post (FP) could not let the matter rest there, believing that the world
would be keen to know the relationship of this multibillion business guru with the president. So FP
inquired how often the president consults him. But his answer remained wooly.
"The president has his cabinet, the civil service and above all, he can consult whoever he wants.
He is free to seek advice from all the people in this country that are interested in development. He
is the president. If you notice, currently there is a well structured civil service, with a brilliant
cabinet and Kenya has a lot of talented people which the president can consult when need
arises."
Wanjui supports the government’s dialogue with the private sector adding that results are being
witnessed in form of more tax collection.
"It is not by accident that there is more tax collected. It is because people feel comfortable paying
taxes. We have a mature leadership and I hope that Kenyans will vote back President Kibaki. I
say this without any apologies," Dr Wanjui finally settles any doubts that the two are indeed close.
Kenya’s economy
Today, Kenya has a vibrant economy. In the last few years, about four companies have been
listed in the Nairobi Stock Exchange (NSE). According to Wanjui, this is a sign of economic
minded leadership.
He explains: "President Kibaki understands the economy and does not seek to control it. He has
liberated it. I don’t think we have ever had such an economic liberation since independence.
When we talk about the Far East tigers, their economies were liberated and they took advantage
of it."
Wanjui argues that in economies where politics strangle the economy, a country cannot grow. He
is convinced that Kenyans are responsible for the kind of growth being experienced. "People get
the government they want. It is up to us to elect a government that can push the economic growth
even further up."
Asked to comment on what he thinks about the current government’s achievements, Wanjui cites
such funds as the Constituency Development Fund (CDF), the Local Authorities Transfer Funds
(LATF) and other devolved funds as essential for growth at the grassroots level.
"From what has been achieved including CDF funds, free primary education and above all the
economic growth; I clearly know that a lot more can be achieved. However, I also know that there
is a limit on what we can do with the income we have. But just as individuals, a nation should
develop a saving culture," he explains.
Wanjui cautions that a country should avoid over borrowing and live within its means. Otherwise,
he says, the phrase that ‘Blessed are the young for they shall inherit the national debt’ will come
to pass.
"Countries that go bust are the ones that often over borrow, in form of aid, which is a debt. Just
like an individual, you cannot go and over borrow because you have a good relationship with a
bank. What a government does must be measured against the available funds. Nations that over
borrow often end up with unfinished white elephant projects, just because they want to look good.
They stagnate," opines the Vice Chancellor, who constantly enjoys a round of golf.
Wanjui, who appreciates leaders whose ambition is to see the country grow, commends the
government for coming up with the Economic Recovery Strategy for Wealth and Employment
Creation saying, "All the other Sessional Papers including Sessional Paper number 10 have been
addressing the issue of poverty reduction. We now even have Vision 2030. If this is implemented
effectively, by the year 2030, you will see a different country."
Saying that banks are critical, Wanjui advises that the key to acquiring a loan is simply a good
business model that would convince a financial institution that backing the model would be a
worthwhile venture.
He has over time developed a good relationship with his bank-Barclays. He tells FP that from day
one of buying the first property, Barclays has always supported him through every inch of
development.
He explains: "Today, if I call Barclays, they will give me any money I want. This is because I have
built a reputation with them. For businesspeople, especially the youth, once you borrow from
banks, do not take it as an opportunity to squander and default on payment. Instead, build a
relationship with your bank. That way, you will be in business. If banks trust you, they will push
you to the top but if they do not trust you, they will bring you down."
He confesses having had to visit the head of the bank then, Peter Nyakiamo, who could
understand whenever he delayed payment.
When FP sought Wanjui’s comment on the stock market the answer was telling. "Warren Buffett,
an individual who has so far donated Ksh 2.17 trillion ($31 billion), the world’s greatest donation
ever made by an individual, to Bill and Belinda Gates Foundation, made his money on the stock
market."
As a Chancellor
Wanjui is in record as having opened the Vice Chancellors’ position to competitive bidding amidst
criticisms. Today, he stands for the same school of thought that believes that all state parastatal
heads should be subjected to the same process.
He explains: "I think it was a good thing and that is why other universities followed suit. We ended
up having a very good Vice Chancellor. I always believe in competitive bidding. When I got my
first job in Kenya, I had to apply."
Arguing that he encourages responsible leadership even within the student fraternity, Wanjui is
proud of student leaders who have maintained calm within the university.
"I believe the University of Nairobi has come of age and has responsible students. I have met with
them as well as their student leaders on several occasions. In fact, recently they had change of
leadership and they did this peacefully. Very few people noticed it. I normally tell the students’
Parliament that they are not the leaders of tomorrow, they are leaders of today," he explains.
All the institutions that Wanjui has interest in are more or less run professionally, free from his
direct interference. He says that this is not by coincidence, rather by design. But he always puts
the foot on the pedal to avoid these institutions going tailspin in his absence.
"Organizations that are run best do not have people at the top putting their fingers everywhere.
You select good people, they give you their plans and you support the plans. Then, you monitor
how they are progressing."
Saying that the current government is run in a similar manner, Wanjui argues that such a
management style does not necessarily mean that one is not aware of the goings on or not
involved with what is happening.
He explains: "Of course you have to know what is happening. There are parameters and you
have to leave the people who are managing do their best in management and encourage proper
reporting systems to the board level. In fact, most of the organizations I have interest in, I am
involved at the Board level. The board usually has its function. Normally, we stick to what the
board is meant to do and it rarely interferes with what the management does."
Wanjui’s role model, he says, is his late brother.
"He was a man who was educated up to standard eight and comes from a generation that going
up to that academic level is an achievement. In him, I saw and understood that one does not
need high academic qualifications to be an achiever."
Arguing that the world’s most successful people do not have academic excellence, Wanjui,
however, expounds that education is paramount as it opens ones mind and equips them to
address the world’s challenges.
He explains: "Bill Gates is a university dropout and so is Steve Jobs. Not that I don’t value
university education, because if anything I even give scholarships to female students studying
sciences in universities. However, university education is not an end in itself. It is a means to the
end."
Wanjui runs a trust fund sponsoring girls because he believes that the country needs more girls to
study sciences at the university. He also argues that there are many needy students who can do
with his support.
"I studied sciences and I think with that, one can do anything. To me, education is an eye
opener," he says.
Interest in politics
Asked whether having created his wealth, he was interested in politics, he says, "That only
happens in Africa. Have you heard Bill Gates or any of the wealthy people in the world expressing
interest in politics? I feel I am making a contribution through what I am doing."
He believes that through business, one can contribute to the growth of a country arguing that
successful businesspersons provide employment and thus contributing to economic growth.
"However, young people who feel they are called to politics should pursue their dreams, while
those who are called into business let them become good at it. Prosperity of a country does not
come from the politicians. It comes from businesspeople. It comes from people who are creating
wealth and jobs," emphasizes the soft spoken Wanjui, a serious look on his face.
Advising developing nations to cease from their begging ideologies, Wanjui feels that indigenous
people should be proud of being wealth creators.
Little wonder then that Wanjui’s retirement from EAI was just a formality for he still works the
same long hours and enjoys it.
"I am quite busy but I enjoy every bit of work I do. I do not consider myself retired per se. I find
working fun. For example, I am about to inaugurate about 60 rooms for the High point hotel. I am
also constructing a health club."
Convinced that he has given FP what the world would be interested to know about him, Wanjui
stands from an exquisite leather sofa he had sat on all this long in his befitting huge and pomp
office and seeks to introduce us to his last born daughter who literally runs the hotel.
We then realized the interview had ended. We were also convinced that FP had unmasked
Wanjui who has never granted such a lengthy media interview.
Email: skumba@financialpost.co.ke