Alnoor Kassam Speaks To Kumekucha: Exclusive Interview From Calgary, Canada

Kumekucha talks to Alnoor Kassam of Trade Bank and Diners Finance fame.

Those who are familiar with the inside story know that Mr Kassam is undoubtedly one of the greatest entrepreneurs Kenya has ever produced. The fact that Justice Minister Martha Karua claims that he is still wanted to face charges just illustrates how much things have not changed in Kenya and how Nicholas Biwott is still a very powerful man in the country today. Biwott, when Moi was taking power in 1978 was close to a pauper. Today he is one of the richest persons in East and Central Africa. So how did he make his money? No wonder everbody goes into politics for the worng reasons in Kenya. In fact Nick Biwott has been barred in the past from traveling to the US and Britain because of his widely known corrupt dealings. The fact that the Kibaki government claims that Kassam is a criminal and has not yet locked up Biwott (there was a time, recently, the administration toyed with the idea of appointing him to the cabinet) tells you all you need to know about the current situation concerning corruption in Kenya better than any carefully worded government statement heavy on rhetoric.

Read this fascinating interview and judge the man for yourself. He is no angel but surely, he has not been treated fairly by a past Kenyan government run by crooks and a current one that is still carrying too much of that old excess baggage…

I have punctuated the interview with my own commentary (in italics) where I have felt it is necessary for background and clarity purposes.

Kumekucha- You say you learnt a lot from running your first company, and got to understand the Kenyan market, but was the Empire Match Company ever profitable? What kind of profit or losses did it make?

Empire Match Company was at a breakeven point when I passed over management and operations to my Partners Orbit Chemicals, but was not profitable.

Commentary: The Empire Match company sold book matches with ads printed on the front. It was Kassam's first business venture in Kenya.

Kumekucha- Did you actually get involved in the hawking of your book matches in the days of the Empire Match company?

Yes I was initially the sales man knocking on all the advertiser doors and that is where I learnt how to sell and market a product. I studied Kotler, a Marketing Text Book and learnt the 4 P's of marketing.


Kumekucha- What was the key factor that made the difference in the successful turnaround of Diners Club Africa?

Realizing that Diners Club had until 1983 been poorly managed and there was no Sales or marketing or financial management and was targeted to only a very small percentage of the Kenyan population. The Established white Kenyan ( members of Muthiga club and Karen club, a few Asians and almost no Black Kenyans, when Black Kenyans were 98% of the population)

Commentary: Diners Finance Africa remains an admired model of the expansion possibilities of an enterprise, even in Africa, when structures and enough staff incentives are put in place. Kenyan executives who were familiar with it's operations and able to put all the controversy surrounding sister company TradeBank's collapse in proper perspective have copied many of the ideas with great success.

Kumekucha - Who was your most key manager/director in the amazingly innovative way in which Diners and TradeBank were run?

At Diners Club there were so many amazing people. Frank Levene who took membership from 2500 to 4000 in one year, John Kariuki , Valentine Gitoho , Mercy Kanga, Terry Njoroge ….Its many years since I was in Kenya but we had 120 employees and all of them were super stars…….

Trade Bank. Ian Rayner, Gideon Ndambuki and many many others.

Kumekucha - Legend has it that you stopped a run on Diners Finance, resulting from rumours over the TradeBank debt, by making available lots of cash to pay on the spot, anybody who wanted to close their accounts and were so successful at it that depositors who withdraw their money re-deposited the funds the very next day. What are the facts of that incident?

There were a few times that this happened and I can not recall the particular incident but we always made sure that we were very liquid and solvent at Diners Finance.


Kumekucha - Some analysts including this writer believe that you were being naïve by expecting to successfully collect the Trade Bank debt from a person as powerful as former minister Nicholas Biwott was at the time. Please comment.

With hindsight I was. But time will tell if Biwott manages to keep Yaya. I will not give up and am, even as we talk, trying to get the Kenyan Government to confirm their statements if there are any charges against me (as this is a mistake) and that I am free to come to Kenya. If the Kenya government confirms that, I will return to Kenya to get the legal process going to recover Yaya for the depositors of Trade Bank and Diners Club.


Kumekucha - In purchasing TradeBank, what was your thinking in accepting to buy a bank with such a huge debt in their books?

I felt that I would be able to collect the loan because I had security for the loan and it was the only way in those days to get a bank license


Kumekucha- What Internet businesses were you involved in shortly after arriving in Calgary?

I was not involved in any Internet business in Calgary but quite a few in Vancouver where I lived for 10 yrs. I was partner in the Smart Seed Fund.


Kumekucha - If You were in Kenya today and wanted to start a business, what business would you opt to venture into?

I do not know if I would start business in Kenya again and if I were to start one I would have to visit Kenya first. I have been away for 13 yrs and I am older and hopefully wiser and if I did something again in Kenya I hope it would not be a business but a project to assist Kenyans in looking at ourselves and asking how we got into the current mess and how we can correct things.


Kumekucha- Which is your favorite town/city in Kenya . Please give reasons why.

I loved Nairobi , but spent many years in Mombasa and supposedly a home in Shelly beach! Limuru , Kericho , Lamu. Chavakali, Masaku [Machakos], Nyeri , and Burma Market all have their charms. But right now I would love to be at the Sagret having Nyama Choma and a Tusker !


Kumekucha- What do you consider your biggest achievement as an entrepreneur ever? Please give details.

Creating the credit card industry in Kenya and becoming one of the best employers and best in customer service in Kenya .


Q- What do you consider to have been your biggest challenge as an entrepreneur and how did you resolve it?

Dealing with Biwott and Moi and I have not resolved it… yet.


Q- What is your view of the current government policies on the economy? Are they on the right track? What can be done?

I do not know as I am very far removed but they seem to be very similar to the Moi and Kenyatta era governments. I think Kenyans need to get these old Tribal Fogies out of the system and realize that the world is a very small place and we all have choices to do business where it is most friendly.


Kumekucha - Do you think it is possible to reduce corruption in Kenya to manageable levels and if so how do you think this can be achieved?

Yes .Yes. Yes It needs great leadership.


Kumekucha - You seem to have changed a great deal in your thinking and approach to life. What caused this?

Most of all the traumas in my Life, fleeing Kenya , my children being stuck in Kenya , and then becoming Clinically depressed and becoming suicidal and then deciding that there must be a better way to live my life.


Kumekucha - Why do you want to be Mayor?

I have been successful in Business many times in my Life and I have as much money as I need right now, I want to challenge myself to do something that is challenging and seems like it could be fun.


Kumekucha - What are your chances of winning?

Great if you ask me , very poor if you ask most other people today . Again time will tell if I am right.

Read Alnoor Kassam Analysis
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