As a debt collector it was painful to see my business get auctioned

Collectr Ke started in December, 2020 at the height of Covid. We are yet to break-even as all the money we have managed to generate goes back directly into getting our name out there. My biggest challenge would be what I would call the “the first timer curse”. It takes more than just being an expert to get business in Kenya. Without valuable references, one has to work thrice as hard to get to the high table. You must invest more time in networking and being at the right places at the right time.

Before venturing out as a freelance business consultant and later founding Collectr, I had previously worked with Faulu Bank, Jamii Bora Bank and Vision Fund for slightly over 10 years. My knack for entrepreneurship started way back in Primary School. In adulthood, I ventured into the transport industry by purchasing four motorcycles and later opening a hotel in Umoja Innercore while still in employment.

After leaving employment in 2017, I partnered with one of my best friends to start a microfinance – Msingi Credit. We had a great six months start until the sound of the expansion trumpet bellowed upon us. This growth meant either selling equity to outsiders or getting cheap funds to further our business. My friend chose the first and I chose the latter. The latter would mean us lending borrowed money which had a cost element attached to it and as novices in the area of financial projections, this would be the worst mistake ever for the business. With default rising, meeting monthly obligations proved to be a challenge. Individuals who had lent us money would also change lending terms which affected our overall cash flows. Eventually we shut down. As a debt collector, I watched as we were auctioned.  We have used this experience as our moral compass in our business.

Whilst looking for a mentor in the area of credit risk management and debt collection, I met one great man on LinkedIn called Tim Paulsen – Managing Director at the International Centre for Professional Collections (USA). Our relationship would climax with me becoming the 2nd Certified Financial Collections Professional in Africa and further, the Director (EA) for the ICPC. With these developments, Collectr got approval to jointly venture with the ICPC in certification of more collectors in the region ultimately raising the bar in debt collection. Last year alone, Collectr we worked with the likes of the Credit Information Sharing (Kenya), the Higher Education Loans Board, Mwalimu National Sacco and the Kenya Depositors Insurance Corporation to bolster their staff capacity in credit.

I currently save in a Sacco and it has proven to be very effective. With a Sacco, once money goes into your savings account, the chances of you withdrawing it are minimized as the process is tedious. I also save through a fintech called Jipay. They have a unique product that makes saving more interesting for everyone. Previously, I was in a merry-go-round with a few friends and we used to meet in a club for our monthly meetings. The recipient of the month proceed would later leave the table with nothing after buying drinks and food.

For me entrepreneurship is my opium - great highs when things are working, worse lows when nothing seems to work. The roller coaster ride is very exciting for me but there are certain days you will find me missing the permanency that came with employment. 

Put your faith in a trusted mentor. Having built a solid career in my 20’s, immersing a lot of money and losing it all in a split second, I have been deliberate to get mentors in my life for money, career, business and relationships. Most of the mistakes I made going up would have been avoided had I been keen on asking for help.

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