Lesson From The Collapse Of Family Businesses

Lesson from the collapse of tuskys, nakumatt etc
I thought as a parent we need to read this

A majority of you are young parents. Most of you have teenagers as your eldest kids.


It’s entirely your responsibility to hold their hands and mentor them into wealth and business.

I just read in the Business Daily that Gideon Moi is selling Siginon Freight business valued at 10B to a foreign investor. For what it’s worth , Moi grew this business as one of africa’s largest logistics company. Today we’re not talking about his ‘source of capital’. That’s not the import of the post.

This captures well the shortcomings of Africans.

Every african business built by hustlers to billionaire status is always torn down after inheritance. Kirima, Karume , Tuskys etc are just few examples.

This is attributed to the fact that, instead of you bringing your children close to learn and be protective of the business, you chase them away to hustle. Then who are you building it for?

Also, our education system is very “employment centred”. Why don’t you take your kids to school to learn how to come and add value to your business?

Asians do it.

Europeans do it.

Americans do it.

Arabs do it

Africans have retrograde cultures that court poverty.

You Hustle to billionaire status, regardless of the means, but you don’t incubate your own kids from an early age. By the time they get to their twenties, they start wishing for your own death to inherit your wealth. The minute they do, they run it down, splurge, sell and their own children start Hustling afresh.

It’s like we love poverty so much that our wealth doesn’t last two generations.

Americans can proudly talk of 200 or 100 year legacy businesses.

In Kenya, you see a drunk in the local bar and you hear his grandfather was a senior Chief with a lot of wealth.

We are blessed with resources, hard work and talents. However, our own cultures and habits sabotage us.

Henry Ford is a man who started Ford Motor Company. His family has been in the board for generations. As you buy your Ford Ranger, remember that.

Kiichiro Toyoda started Toyota more than 150 years ago. Until today the Toyoda family control stakes in the Lexus, Suzuki and Toyota business. As you buy your Lexus 570 always know that.

Dell Computers, McDonald’s, Hyundai, name them.

Atwoli is a billionaire hustler. None of his children are running his enterprise. They are all over the place. 20 years from now, his billions shared amongst his wives and concubines will dissipate. His grandchildren will have to restart afresh.

In Kericho, we have a billionaire family called the Mutai’s. Their father worked as a loader at Kericho’s first wholesalers called Kericho Wholesalers owned by billionaire Asians.

After many years of working, the Mzee Mutai quit to start his own wholesalers business that was localized.

In few decades, he had built a strong business and he hired all his children. They worked as sales people, accountants, drivers etc. When he passed on, his sons took the hardware and wholesalers business to the next level. They are today, amongst the largest owners of long haul trucks plying the East Africa Corridor. They have never ending contracts with major cement companies and they own some of the best properties in the best area codes of nairobi, Mombasa, europe and australia.

If they induct their children too, they will make it a generational legacy.

Simon Nyachae is another great example of involving your children in the running and management of business from a tender age.

As you start Hustling however small, please educate your children on the principles of business so that they can grow and uphold your work. One day, when you’re old, you’ll be glad you did.

No, your children won’t waste your property, it’s your mentorship, your encouragement, your belief in them, your assurances that will make them protective over your legacy.

As you figure out your survival now, please think about the future as well. Don’t be that hustler who broke your back only for your grandchildren to work in a mjengo site as if you never existed.

there was a whole section about this in the economist last week, the problem is not only kenyan… Its global

Survivorship bias at its finest. This is a global problem and greed is part if human nature. Very few family businesses survive past the third generation. The examples you give are the exceptions rather than the norm.

@Ndindu the stupid bonobo we know your handwriting, leta link from the ZA forum you copy pasted this from

Mzee hataki bibi ajiunge na biashara yake. Kazi ya bibi ni kuzaa na kulea watoto. Bibi anazaa watoto na kuwalea. Bibi anafundisha watoto eti mzee ndio the king at home. Kids fear their dad in return afterall he is providing food and school fees. Mzee knows that he is feared…so he knows he must maintain the status quo. Status quo is only maintained by him being staying aloof.

The kids are now adults…they want wealth. Mzee is already addicted to his lifestyle of ‘aloofness’. Kids no longer fear mzee as he is now old and no longer commanding ‘fear’. Mzee knows this so he grows distant. Only lawyers and a few old ‘friends’ are privy to mzees business/wealth. After many years of working mzee has a lot of resources at his disposal. He can suddenly acquire new investments without breaking a sweat. He acquires them in secret. Only the lawyers know. He disposes others in secret. He uses others as collateral for loans, etc.

Anyway…mzee will never share nor disclose his full wealth to his family. Till after death.

i believe we all know some very rich old men who own large tracts of land, apartments, fleets of cars, supermarkets, etc but their kids wako hustling majuu or are employed in some offices. Kids are taking loans to buy cars, living kwa nyumba zakukomboa, starting cliche businesses yet their old men are worth hundreds of millions if not billions.

Njenga Karueme, Michuki, Tuskys, Nakumatt, Muguku,

Build your business, at retirement sell it. Leave cash to your kids and grandkids that will last them a lifetime. Not everyone is built to be a risktaker like you.

I love this!! Let those foolish idiots that inherited their wealth sell it to us upcoming birrioneas.

Naomba nipate hela to purchase some of it. I wish he uses the money to fund a presidential campaign alafu tumpige stick aanguke. Next time auze something else tumpige stick pia.

Akifika mahali anapeana bibi hapo I will be ready. He has a very delicious looking wife. [SIZE=1]Nani ako na namba yake??[/SIZE]