Nairobi billionaire Joseph Barrage Wanjui.
When he reigned in the 70s and 80s, city billionaire Joseph Barrage Wanjui was the power behind the East African Industries (EAI). Soon, he became the face of EAI. In his earlier snapshots, he was the man with the smoking pipe—a striking emblem of his bohemian lifestyle. The pipe symbolised intellectual curiosity and sophistry.
Beneath, Wanjui was philanthropist. He was the first African member of the Rotary Club of Nairobi, which allowed him to carry out community work and connect with the subalterns.
Through the 1970s and 80s, Wanjui, better known as J.B. Wanjui, or simply Joe, reigned supreme as the engineer, industrialist, and CEO. His name echoed through boardrooms and factory floors alike. He hobnobbed with everyone—the rich and the poor—but mostly the latter.
While his classmates and agemates held political power, JB was in business, at the helm of the most essential blue-chip company in Kenya – EAI, whose signature was "Kwa Maisha Bora". Here, he watched the manufacture and distribution of East Africa's leading brands: Kimbo and Cowboy cooking oils, Rexona soap, Blue Band margarine, Royco Mchuzi Mix (spice), Treetop (fruit drink) and many others. He not only made money for the company’s shareholders but also became one of the wealthiest Kenyans.
Brokering deals
When he died on Tuesday, Wanjui had accomplished much more – and left a trail of companies and institutions where his intellectual and administration might be felt. He was worth billions of shillings, and his shareholding in blue-chip companies was epic. Yet, Joe never displayed his riches, nor was he interested in joining politics – where some of his peers eked a living without breaking a sweat. He loved hard work and brokering deals. Those who never understood him thought he was just lucky.
Born in Kikuyu on May 24, 1937, Wanjui received his early education at Kabaa and Mangu High School, a citadel of the Catholic faith that trained the first generation of scholars and administrators who passed through the hands of Irish Fr. John O'Connor. It was in Mangu that Wanjui's educational prowess would be seen. He passed his 1957 Cambridge School Certificate with a Division One.
He was assured of a full scholarship to the prestigious Makerere, which offered degrees from the University of London. But as he awaited to join Makerere, he was admitted for an undergraduate course at Ohio Wesleyan University in 1958 with a full scholarship, but without a travel grant.
Spoilt for choice, Wanjui went to see Robert Stephens, one of the US airlift administrators, at a building overlooking City Market, Nairobi. He had to choose between Makerere and Ohio Wesleyan. "After a lengthy conversation with me and a weekend wrestling with his decision, Wanjui decided in favour of Ohio Wesleyan," Stephen wrote in his book, Kenyan Airlifts to America.
Two travel grants were offered by the African-American Institute and Fullbright Commission. He opted for the former and left for Ohio Wesleyan, where he graduated with a Bachelor of Science in Physics and Mathematics. Kenya's Mbiyu Koinange had previously graduated from the same University in 1935. Having graduated on top of his class, Wanjui then registered for a Master of Science degree in Industrial and Management Engineering at Columbia University New York, where he graduated in 1964.
"By the time he graduated in 1964, Kenya was independent, but he had no idea how he would be able to use his qualifications in an industrial/commercial setting still dominated by the British and Indians," wrote Stephens.
ESSO Corporation
It was into this dominated space that Wanjui was thrown. Upon graduating, Wanjui started working in New York with the oil company ESSO Corporation. At 27, he was seconded to Nairobi as an executive trainee. However, the Jomo Kenyatta government appointed him the head of the Industrial and Commercial Development Corporation (ICDC), the capitalist wing of the government.
Founded by Dr Gikonyo Kiano, Kenya's first PhD, ICDC was an offshoot of the Ministry of Commerce and Industry responsible for attracting new business and capital. Dr. Kiano loved to support bright Kenyans returning from US universities. Wanjui took his position with gusto. In essence, he was one of the youngest executives in the country, directing hundreds of taxpayers' money into commercial ventures. Some succeeded, while others spectacularly floundered as they became avenues of sleaze.
If there are current Kenyan billionaires who entered into shareholding arrangements with Western companies, the man behind them was J.B. Wanjui. He helped many of them make investments or understand the inner workings of international capital.
Wanjui only stayed for a short time. In 1968, he resigned from ICDC after being appointed Technical Director of the giant East African Industries – where the salary was good. His position was taken by Maina Wanjigi - the Stanford-trained agricultural economist, who died last week.
East African Industries became Wanjui's second home. In 1972, he was promoted to managing director and in 1974, at 37, he became its chairman and Chief Executive Officer. He held this position until 1993.
Africans were investing in business at the time. Wanjui put his money in blue-chip companies. He bought shares, which later became controlling stakes.
"I was fortunate to have gone to America for an education at the time I did."
At an early age, after returning from the US, Wanjui purchased 25 acres of land in Tigoni, which he later sold. "To many Kikuyu, such an act is deemed crazy, if not a taboo. My logic then, and now, was that the money from the sale created alternatives for more lucrative forms of investments," he later wrote.
For those who would wonder about the influential positions he held, Wanjui wrote something in his book, My Native Roots: "Quite a bit of it was through luck, but a lot more came through very hard work," he later said.
"For even where luck and circumstances play a role, as they do in any situation, every chance they provide must be pursued and grabbed with both hands. I took advantage of the many breaks that came my way."
His contemporaries were B.M. Gechaga, who was associated with BAT (Kenya) Limited for many years, and K.S.N. Matiba at the East African Breweries. Various partnerships emerged during the 1970s. Duncan Ndegwa acquired some 50 per cent of Unga Group's shareholding, while Matiba and Stephen Smith founded Alliance Hotels. Moody Awori had partnered with Horacius Da Gama Rosa to form Mareba Enterprises.
By the time of his death, Wanjui was in a special class of old-money families that had dominated Kenya’s entrepreneurial space in the 1960s and 1970s. These included the Kenyatta family, former Central Bank Governor Phillip Ndegwa, former permanent secretaries Duncan Ndegwa, John Michuki, Jeremiah Kiereini, and Spy Chief James Kanyotu.
In addition to the private sector, Wanjui found himself in positions within the public sector. For instance, he was the chairman of the Pig Industry Board, now moribund. In 1973, the board featured in Parliament amid allegations that it was made up of one tribe. This was not as much a reflection of Wanjui as the Kenyatta state, where the Kenyanisation of some positions was skewed towards the Mt Kenya inhabitants.
As Wanjui would later find out, his entry into the private sector was a prudent decision. The death of Jomo Kenyatta in 1978 disrupted some of his colleagues' political careers as they lost their seats quickly. But Wanjui continued to be in good books of those who mattered. When the Kenya Times, a Kanu newspaper, was founded, he was appointed a board member by President Moi. The others were Kanu politicians Justus ole Tipis and Peter Nyakiamo, industrialists J.K. Kalinga, and the Attorney General.
Joe also served as chairman of the Kenya Association of Manufacturers between 1967 and 1975 and again between 1978 and 1988. In essence, he served as KAM chair for a total of 18 years, an illustration of the faith that industrialists had in him. He was also appointed by Mwai Kibaki, the minister for Finance, as a member of the Income Tax Appeals Tribunal.
In the early 1980s, some MPs questioned why Wanjui was the chairman of Kenya External Trade Authority while he was still with the East African Industries. But Wanjui was not alone. Many other influential personalities were on the list – though his name was used to canvas the point. "Is the government aware that these people have particular interests in their manufacturing industries? They are people with particular interests for their manufacturing industries and would promote their goods than those of Kenya as a whole," argued Wilberforce Kisero of Mt Elgon.
Wanjui came to believe that the government was the key impediment to business growth. As one of Kibaki's economic advisers, he always insisted that the government formulate policy that eased business growth. He advocated for a free market environment and freedom for entrepreneurs.
Wanjui was also a power broker and featured prominently in the Kibaki presidency as a critical financier of the Kibaki campaign. In the golf circles, he was part of the Gema technocrats who rallied around Kibaki. Others were Daudi Mwiraria and George Muhoho. Wanjui was part of the powerful Muthaiga Group, the most powerful wing of Kibaki's presidency. The battle for control between the Muthaiga Group and the Hurlingham Group would later define the workings of Kibaki's presidency, especially his relationship with the Raila Odinga group. While the Muthaiga Group consisted of Kibaki's golfing buddies, the Hurlingham comprised his Democratic Party remnants – the politicos he had relied on during his tenure in opposition politics. However, Wanjui played his political games behind the scenes.
Fierce competition
On June 17, 2003, Wanjui was named by President Kibaki as the Chancellor of the University of Nairobi, the first time that a non-politician held the position. It was previously held by past presidents Jomo Kenyatta and Daniel arap Moi.
As an entrepreneur, he also burnt his fingers. For instance, Wanjui was actively involved in the fierce competition between South African brewers and Kenya Breweries from 1997 to 2002, during the establishment of the Castle Brewery in Thika, which aimed to break Kenya Breweries' monopoly. The South Africans also enticed Njenga Karume, Kenya Breweries' largest distributor. Karume was to own a third of the Thika plant through his Ol Donto Sabuk company. This investment led to considerable tension, with Kenya Breweries ultimately prevailing by branding itself as a Kenyan company and securing control over local barley farmers. In 2002, Castle conceded and exited Thika, swapping the brewery with its rival for one in Tanzania. However, Kenya Breweries later shut down the Thika plant.
Last year, Wanjui initiated a legal battle against his former company, Unilever (previously EAI), over its 52 per cent stake in Limuru Tea. Unilever intended to transfer this stake to CVC Capital Partners, a US-based private equity firm. As a minority shareholder interested in acquiring the company, Wanjui contested the move. Eventually, the Capital Markets Authority (CMA) compelled the company to extend a takeover offer to him. The minority stake was valued at Sh365 million. Wanjui's ownership in Limuru Tea had been a closely guarded secret, hidden for decades under Standard Chartered nominee account 9532. It was one of the many secrets that Wanjui might have had.
Wanjui's wealth only became apparent as he disposed of his shares. In 2021, he sold a stake in insurance company UAP to South Africa's Old Mutual for Sh3.2 billion. He had been at the helm of the company for 35 years and retired on June 22, 2021. Wanjui held 43.25 million shares through his investment vehicle, Bawan Limited, equivalent to 20.5 per cent.
There were many other investments associated with Wanjui. Hotel, Industry, real estate, and banking. How one man commanded so much wealth, yet remained invisible, is the story of JB Wanjui.
[email protected] @johnkamau1
