Students turn age-old practice into booming business venture

When the boss of a cereals firm dismissed their request for industrial attachment and instead asked James Makini and Mac Moseri, then Third Year university students, to create jobs themselves, the two chose to take the challenge head-on.

Back in their hostel room, after lengthy contemplation, the two came up with a plan. They figured out how they could make money from the revered cultural practice of giving the gift of a hen to a visitor, a practice that is common in many local communities in Kenya.

“This would form the basis of our business. We thought that just as visitors are given a hen, so we could give a hen to each member of a self-help group. Then we could use this hen to teach them basic farming practices for a small fee,” said Mr Makini.

The former students at the University of Nairobi’s school of business give a hen to every member of the programme at Sh100 together with a special cage that costs Sh700, payable through an initial Sh300 followed by monthly instalments.

The hen and cage act as a bond for the group which enables members to gain access to small credit facilities and basic training on profitable farming practices.

The idea has grown into a roaring success. Dubbed “One Hen Campaign”, the project emerged top among 54 other entries from 20 countries in a Connect4Climate competition that was organised by the World Bank last year.

“We owe our success to David Nyameino, the CEO of the Cereal Growers Association of Kenya. When we went to ask for internship at his firm, he threw the challenge to us to begin a business that would offer similar positions to other students,” said Mr Makini.

The group targets small scale farmers who are organised into groups of at least 20 members. The venture has grown to be worth over Sh1 million, up from a capital of about Sh30,000 that the two raised from their Higher Education Loans Board savings.

In order to anchor their venture on a firm footing, the rules of the business were drawn. First they decided on the target customers, and the small scale farmer’s self-help groups in Kisii region won their hearts.

Then came the business registration process that ate into part of their meagre savings.

They approached two other students who gave Sh25,000. In return, the new entrants earned seats in the ownership and management of the enterprise.

At the close of last year, the business was working with 800 self-help groups, some of which were sourced from the Ministry of Social Services through referrals.

According to their estimates, by hatching a minimum of 50 chicks from a single hen, then selling the chicken for Sh400 each, a single chicken seed can rake in Sh20,000.