JamboPay’s rise from cyber cafe to Sh1bn regional force

His employer used all means to stop him from quitting his job including raising his salary substantially. But Mr Danson Muchemi was dead set on making a leap of faith and embarking on an entrepreneurial journey.

He parted ways with his employer, a Turkish firm, in 2009 and established a venture that is now thriving judging by its Sh1 billion annual turnover.

Lacking resources but armed with a vision, Mr Muchemi started JamboPay, an online payment service, with just Sh85,000 and one leased computer at a cyber café in Nairobi.

Six years down the road, Mr Muchemi can afford to smile broadly as the firm has unbelievably made tremendous progress and is now in Tanzania, Uganda and Senegal moving over Sh4 billion a year.

The entrepreneur says he wants to take the firm to even greater heights and has set his sights on expanding to seven countries by the end of the year. The firm is already making inroads in Rwanda and hopes to be in 14 countries by the end of 2016.

JamboPay is a transaction-based platform that collects money on behalf of governments, private enterprises and parastatals earning fees of between two and four per cent of the value of a transaction. The company has also struck deals with businesses and government organisations to disburse money electronically.

The company currently serves more than 1,500 clients cutting across sectors such as retail, financial services, media, and hospitality. It employs 105 employees, 68 of whom are on permanent terms while the rest are on part-time contracts.

Mr Muchemi’s initial plan was to set up an e-commerce platform, mama-mboga.com to trade in agricultural produce. However while turning over this idea on his mind, he stumbled upon the brilliant idea of JamboPay and instantly he was in business.

“I wrote to the Central Bank of Kenya and I was surprised when they called asking if I could do a presentation to the National Payment System,” the businessman says adding that once he got the regulator’s approval he has never looked back.

His turning point was when he met his current board chairman, Dr Hans Brugmans from PUM Netherlands. “I approached a Dutch organisation, PUM- Senious Experts of Netherlands in 2010 and sought assistance in getting an expert to help me develop strong business processes for Jambo Pay,” he says.

“They sent me many CVs to select from. I selected Dr Hans Brugmans, a very experienced management consultant who provided very crucial business advisory services.”

BOOK KEEPING

Dr Brugmans helped him establish strong business processes that have been instrumental in his success. “For three weeks, he looked at suppliers, branding, books, staff and gave me a list of what I should implement,” he says.

Mr Brugmans made him to appreciate book-keeping and taught him how to draft contracts and streamline operations. These components, he says, have been the engine the company’s growth.

“Record-keeping is like a thermometer; it helps you know when business is healthy or ailing,” he says.

JamboPay marked a key milestone when it fell 68 corporate giants including big banks, telcos and the International Business Machines (IBM) to clinch a deal to run Nairobi County’s electronic payment platform, eJijiPay.

“When you are good at what you do, you have the best chance of clinching deals. JamboPay had been providing e-payments services to over 1000 clients by the time City Hall was advertising for the electronic revenue collection tender,” he says.

Before they got the tender, they went through a rigorous evaluation process. They won the contract thanks to their quality and cost.
“It was one of the most  rigorous tender process we have had to go through in our history. We executed the contract in record time and today we have collected over Sh6 billion for City Hall through the eJijiPay platform,” Mr Muchemi enthuses.

The firm has bagged several other lucrative contracts from public and private institutions, including government tenders in Uganda and Tanzania.

What is his advice for new business people?

 Mr Muchemi says although he started small he had a big dream. “I leased a computer at the cyber where I launched my business and later on rented a tiny space. I remember I used to stretch my arms and touch the walls,” he fondly reminiscences.

“Start implementing your idea with the resources you have and build it step by step. If you don’t do that, you run the risk of your idea remaining a pipe dream.”

He said he was also able to stay afloat during the initial stages of his business life by keeping his costs as low as possible. He was paying Sh4,500 per month for the office space.

Some business people, Mr Muchemi says, make the mistake of holding on to their venture tightly. He says it pays to delegate and relax.
“(Dr) Hans Brugmans has taught me to delegate and relax. For your business to grow, you must let it go,” he says.

“It was one of my best lessons. I am a relaxed and focused business leader because I delegate to the right people.”

He plans to take a less active role for the company that expects to list on the Nairobi Securities Exchange in the next five years.

“At least I can now sit back and watch the company grow because I believe as an entrepreneur I have taken it so far,” he says.

Mr Muchemi advises young entrepreneurs to be focused and be firm in making decisions. It is important, he says, to say a firm no or yes in business. “Whether or not a business will succeed depends on the decisions you make.”

“JamboPay is a highly specialised company. We focus on electronic payments services only. That was the decision I made from the onset and I had to say no to a lot of other opportunities and offers to move to other ICT areas,” he says.