Campaigns put a smile on the faces of businesspeople

By TOM MOSOBA tmosoba@tz.nationmedia.com  ( email the author)

Posted  Sunday, February 17  2013 at  00:30

In Summary

• Suppliers of T-shirts, caps and other election-related merchandise having the time of their lives

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For many Kenyans, the end of the campaign season cannot come soon enough. But for many businesses and entrepreneurs across the country, these are the best of times.

The 2013 election, touted as the country’s most expensive ever, has been a boon for a multitude of businesses.

Posters and billboards, transport, public address equipment, entertainment (musicians) and media advertising are some of the openings through which firms are minting money from politicians.

For the last 12 years, Mr Albert Kiambi, 50, a father of two, has struggled to build a design company which largely remained a hand-to-mouth venture. But that was until the election campaigns started.

His firm, AK2 Designs, has suddenly hit the jackpot.

“I landed my first job to brand political campaign vehicles last December and since then orders have been flowing in,” Mr Kiambi told the Sunday Nation.

His first client was Nairobi Metropolitan Development minister Jamleck Kamau who paid him a handsome amount to brand six vehicles in TNA colours.

Mr Kiambi said that as soon as the minister’s vehicles hit the roads, he got a lot of inquiries and today lists Jubilee presidential running mate William Ruto and Eagle chairman Raphael Tuju among high-profile politicians who have sought his services.

While reluctant to disclose how much money he was making, Mr Kiambi said it was substantial compared to the past. “I never dealt with politicians before but all I can say is they pay well for a job well done. In my many years running the company, the highest amount I ever made was Sh100,000 in one good month but in this campaign, I have banked Sh400,000 in under two months,” he revealed.

He has also hired youths to help him. “In this industry there are no permanent jobs but with the new orders, I hired several young men who have an assured daily wage.”

Mr Kiambi, who is based in Baricho Road in Industrial area, said funds to buy materials are no problem as the politicians pay cash upfront.

He says he considers himself lucky for a past contact with Mr Kamau. “The only problem is how to break into these circles. You must first know or be recommended by someone and from there it is your expertise that sells your name,” Mr Kiambi said.

Another contented businessman is Nakuru-based Samuel Gakunga who has been smiling all the way to the bank at the end of every week since the campaigns started.

“In December alone, I took Sh200,000 home,” he told the Sunday Nation.

Mr Gakunga is the proprietor of Classique Image Graphics, a company he founded in 2007 and has been doing roaring business printing posters. He only accepts orders of a minimum 1,000 posters, which brings in between Sh13,000 and Sh16,000.

Depending on the quantity of the order, the A2 posters, which are slightly larger than normal, may cost up to Sh36,000.

Normally, he asks for 75 per cent of the money up front with the balance due when the client collects his order.

Sometimes the workload is overwhelming, and at one time he had to explain to angry clients why he could not deliver at the agreed time. “There is nothing as bad as ruining the trust of a client after he has paid you,” he said.

When the orders are huge, Mr Gakunga says he leaves his house at 3 am and only returns after 9 pm.

He says he sub-contracts the work for him to deliver on time but stresses that he only does this when he has too much on his plate.

Unscrupulous people are also cashing in. In some areas, especially the slums of Nairobi, “rent a crowd” services as are available where youth and women are paid to beef up attendances at rallies.

The Sunday Nation established that middlemen with political connections have formed support clubs or lobbies to negotiate contracts with the main political coalitions to provide all manner of services.

“It is through such individuals that we get orders to supply T-shirts and caps, print banners and put up billboards,” Said Mr Joshua Kahanya of Top Signs Media. The company supplies TNA and Jubilee.

“We do not deal directly with political parties or coalitions. We only deal with those who give us the business,” he said.

In Mombasa, Ezra Areba, the technical services manager at Docucare Limited, says his fortunes have been mixed.

“Business was good before the party nominations. After that, the orders slowed down. Some politicians are saying they no longer have the money to print more election materials,” Mr Aruba said.

At the high end, up to 16 helicopters were recently registered to operate in the country.

The demand for helicopters by politicians, especially from the leading coalitions, has put a strain on aviation fuel supplies with the rise in demand, according to operators at Wilson Airport.

“Total and Shell are struggling to cope with demand for Jet A1 aviation fuel,” a helicopter company official said.

Industry players said air charter firms and businessmen from South Africa, Switzerland and Germany are leasing out the helicopters and minting millions every day.

“More than 40 helicopters are operating locally and most of these have been brought in for the campaigns as politicians prefer them to ease their campaign tours and project a higher public image,” an operator said.

The operator said most of the helicopters had been issued with temporary licences.

Insurance companies have also recorded brisk business offering risk insurance, proving that elections are not always bad for business. When they are peaceful, they can put a smile on many faces.

By last Friday, the Kenya Civil Aviation Authority had licensed 46 helicopters to operate in the country.

Corporate communications boss Mutia Mwandikwa denied claims that most of the helicopters would be withdrawn after the elections. “The aviation industry is growing fast and the use of helicopters for other purposes other than campaigns explains the upsurge in registrations,” he said.

Additional reporting by Verah Okeyo, Mercy Gakii, Moses Odhiambo, Dennis Odunga and Bozo Njenje.