AA Kenya CEO shares insights into firm’s 104 years history

More than 100 years ago, an ex-military officer by the name Lionel Galton Fenzi embarked on a mission to open up East Africa to the transformative powers of mobility.

Fenzi was a man of vision, who wanted to map out and produce accurate measurements of roads connecting various parts of the region.

To achieve his ambition, he founded the Automobile Association of Kenya (AA Kenya) in 1919.

The organisation would primarily serve as a vehicle through which he would import automobiles with the capacity to traverse through the tough Kenyan terrain, for him to be able to accomplish his mission of mapping and measuring the roads connecting various parts of the country.

More than 100 years later, the organisation still exists, with more than 50 outlets spread across the country. It has diversified from just the importation of automobiles, to the provision of several other services including driver training, motor vehicle valuation and inspection, car insurance brokerage, road rescue, tracking, fleet management among others.

The current CEO, Francis Theuri, attributes the firm’s resilience, growth and longevity to a number of factors. One of these is innovation, which he says has acted as a guiding principle in a volatile, complex, and uncertain operating environment, characterized by several disruptive events, such as recently, the Covid-19 pandemic.

“The Covid-19 pandemic brought a wave of global disruptions to organisations and individuals, leaving no one untouched. Over 90 per cent of Kenyan firms saw their sales plummet, and one in five workers lost their jobs, sparing no institution, not even AA Kenya, an organisation with a 104-year legacy,” said Mr Theuri.

He says that although the organisation had faced its share of challenges in the past, the magnitude of the disruption imposed by the pandemic was unlike anything they had ever encountered. The organisation had to be agile in navigating new frontiers and adopting new business models.

“AA Kenya with its diverse and dynamic team, embarked on the digitisation of services, beginning with the transition of the mileage rates to a digital platform. This move was perfectly aligned with the growing demand for online services as people found themselves confined to their homes,” Mr Theuri said.

The firm also started offering online-based driving school classes, and launched the AA driving test App, a tool for students to assess their exam readiness.

“This tool has become a master copy for many other players, and it separates us from other players. This innovative solution boosted our revenue and provided students with a valuable resource,” noted Mr Theuri.

AA Kenya also launched the AA Flight Delay Assistance (FDA), an innovative app designed to provide air travelers with access to airport lounges during flight delays of more than 60 minutes.

“This service aims to enhance the travel experience of AA members and offer non-members the opportunity to enjoy some benefits for a small annual fee,” said Mr Theuri.

He says diversification of membership to include a wide range of members from school-going children, to the youth, to individual motorists and corporate motorists, has also been a major contributor to the growth of the organisation.

He adds that forging strong partnerships has also been integral to the growth of the business. The organisation partners with insurance companies for co-insurance. Underwriters double as agents, strengthening the bonds of partnership.

The organisation has also collaborated with TotalEnergies to offer the "Safe To Load" (STL) service, inspecting all TotalEnergies trucks before loading hazardous products for transport. This is to enhance road safety, prevent crashes and protect businesses.

Further, AA Kenya, in collaboration with major logistics firms, undertakes technical inspections on heavy commercial vehicles, especially in brake testing.

“Cognisant that forging resilience in isolation is perilous, AA Kenya has been extending its business model to include B2B partnerships. These partnerships have taught AA Kenya crucial lessons, including that we can achieve more by working together,” Mr Theuri said.

AA has international affiliations, including with the International de L’Automobile (FIA), which represents over 100 million motorists globally, in 246 automobile organizations in 145 countries across the globe.

The AA Institute – Africa School of Mobility is currently hosting the African Council of Tourism Automobile Clubs (ACTA) Road Rescue Training for 2023.

“This ensures that our rescue personnel are well trained and equipped with the requisite skills along with other international road rescue officers by sharing best practices and learning from each other,” noted Mr Theuri.