Tabitha Karanja: Why I plan to celebrate x-mas, New Year in style

After being decorated in the continental arena for her achievements in the business circles, Keroche Breweries chief executive officer Tabitha Karanja is resting easy as she savours her success in beer making industry.

In less than two months, she scooped two coveted awards, the CNBC Business Development Manager East Africa and the CNBC Africa All Africa Business Leaders Award. This has catapulted the amiable CEO to the pinnacle of high-end achievers in the business.

Buoyancy is now what is driving Mrs Karanja, with the glamorous awards having raised her stakes as well as social ranking. “It was a humbling experience that has pushed my efforts a notch higher.” She notes.

“It will inspire others harbouring valid dreams of making it no matter the obstacles,” says Mrs Karanja, with measured confidence.

She is steering a Sh7 billion investment, having started with Sh100,000 focusing on making fortified wines. “We used the capital to buy a second-hand machine that could only manage 100 cartons a day.” She said.  Luckly, the market was receptive and soon, demand went beyond supply, calling for expansion.   

THANKSGIVING PARTY

Seated behind an executive mahogany table, Mrs Karanja cannot wait to take a well-deserved Christmas break. “Since venturing into the liquor making business… perhaps this would by my most relaxed Christmas. In the past, I had little time to celebrate,” adds the CEO.

A devout Catholic, she appreciates the importance of Christmas but the demands of her work meant she had little time to make merry as she plunged in the uncharted waters of beer making, a monopolised market, hitherto.

Her well-deserved break will come with goodies for her family. “I love cooking. I will ensure I will be the one in the kitchen cooking for my family. It has been a while,” says Mrs Karanja.

To cap what has turned out to be a promising business for her, on November 29, this year, Ms Karanja surprised her husband and Keroche Breweries chairman Joseph Karanja with a “thanksgiving party” for his support in ensuring that their brewery thrives.

“He has been a pillar of my success. Not many in his shoes could afford their spouses such a leeway to chase their dreams and ensure they emerge tops,” reminisces Ms Karanja.

Adding, “together with my children, we decided to fete him and catch him by surprise. The trick worked.”

The guests list included Mr Karanja’s blossom buddies and it was quite a “refreshing” moment for the down-to-earth chairman, who likes to pull strings behind the curtain.

But with a mega brewing plant coming up, Mrs Karanja will only have a few days to unwind, as she works on the final logistics for grand opening of the Sh5 billion factory in early 2015.

The of Head of State is expected to grace the occasion, with a tentative opening date slated for March

With a production capacity of 600,000 bottles per day, the CEO is conscious of the fact that she needs to step up her game in marketing with a view to capture 20 per cent stake. “The new production plant has the capacity of producing 30 different brands, thus having my work cut out,” says Ms Karanja

And, she has hit the ground running, meeting traders from different counties, exploring ways of expanding her sales in readiness of the increased production. She is leading from the front accompanying the sales team to the potential markets.  

Contented that she will ably satisfy local demand, Mrs Karanja will start making inroads into Tanzania and Uganda before spreading wings to the continent.

“The work has just begun at Kercoche Breweries. More is to come,” she reveals.

She ventured into a market where few could have dared, taking on a decade-long business monopoly and conquering age–old gender prejudice to become a major player in the country’s profitable drinks industry.

Mrs Karanja prides herself of having broken an individual borrowing ceiling, managing to secure Sh5 billion loan to fund what is probably the biggest investment in Kenya, this year.  

CLOSING THE GAP

After trading in manufactured products for close to a decade, she decided to do something more challenging. At the time, she was already running a hardware in Naivasha but an urge to get into manufacturing saw her take the leap of faith. The year was 1997.

She was not sure what type on manufacturing she wanted to venture since she was not an industrialist. She conducted research.

“I found a gap in the liquor industry. Drinkers in the lower end and middle income bracket were left to consume cheap brews of unknown quality that were readily available. That is where thought of venturing into the liquor industry was born,” she recalls.

Little did she know what she was getting into; expecting a smooth sailing as her business continued to register impressive growth, she oozed confidence. But she was in for a rude shock, entering an industry that had been monopolised for over 80 years and, soon after, she was in the deep end.

On a Tuesday afternoon in 2003, a lawmaker tabled a motion in Parliament saying her business was making killer brews. The MP alleged that the liquor had killed two of his constituents, allegations that could not substantiated and motion was defeated on the floor of the House. But CEO was ordered to furnish the August House with papers to prove that, indeed, her brews were up to the set standards. She complied.

Always on the tenterhooks. She did not know what to expect. And in what appeared to be a well-orchestrated plan to eliminate her in the market, she endured intimidation. As the storm raged, her billboards were defaced on the evening of October 20, 2006. The Kenya Revenue Authority (KRA) was also in pursuit, demanding Sh1.2 billion as back-dated tax arrears, to be paid up in 14 days.

The Sh1.2 billion did not include interest and penalties. In total, she owed the taxman about Sh2 billion. “At the time, I was paying 45 per cent tax but they were now demanding 65 per cent back-dated to 1998. “

Having weathered the storm, the high flying CEO current range of products include, two ready-to-drink vodka brands, four spirits and three wines. With a current five per cent market share of the beer market, Keroche plans to capture 20 per cent of the beer market and 30 per cent of the spirits market from the current 20 per cent next year.

QUALITY BREWED

The company produces Summit Lager, Summit Malt, Vienna Ice, Viena Ice Lemon Twist, Valley Wine; Pinotage’ , Chenin Blanc and Savignon Blanc and recently launched a Crescent range of triple distilled spirits; Vodka, Whisky, Dry Gin and Brandy. 

To budding entrepreneurs, Mrs Karanja says, “whatever you feel you want to start, you must be conscious of your priorities, otherwise when you face one challenge, you will be tempted to bolt away. Secondly, whatever you are doing, you must offer a superior quality and be convinced beyond doubt that it will succeed. Happy holidays.” She concludes.