By Henry Kimoli
Naushad Merali and Chris Kirubi shared two things in common. They were shrewd businessmen and the undisputed fathers of board room tenderpreneurship. For lack of a better acronymn to describe the fallen Kenyan billionaires.
They were not only well connected in political and business circles, but invested heavily in acquiring powerful contacts that improved their acquisition and retention of capital.
Both were members of the deep state, in all the four governments that have existed in Kenya, since independence.
Kirubi’s acumen, or theatrics has already been variously elucidated. But Merali. Naushad. Is the reason why Mwalimu Sacco, Eveready East Africa, to mention but two are staring at their own corporate burials. Shortly after Merali on Saturday 2nd July 2021.
Mwalimu Sacco got ambitious and purchased Equitorial Bank from Merali. For reasons only their officials can explain. The Eveready story is complicated. It is detailed in later parts of this bulletin. But Merali was a philanthropist per excellence. He donated prime land Mweiga where President Mwai Kibaki retirement home is constructed by the government.
Merali started hobnobbing with power during the reign of Jomo Kenyatta. Using this vantage position, he ensured that successive Moi and Kibaki regimes sang his song.
It was during the Moi era that Merali become notoriously rich as he was the first point of call for big business.
He is said to have supplied the cash that Moi used to cling to power until 2002. Two days after Moi exited in December 2002, the Merali magic ceased the Kibaki administration as the President sat on a whellchair in Muthaiga.
Merali influenced the appointment of strategic ministers in the Kibaki and Moi administration. But he found himself curtailed during the Uhuru Kenyatta Presidency
Merali meets Pope Francis
Merali met and shook hands with Pope Francis on 25th November 2015 at State House. He was among the dignitaries invited to the high level reception.
Merali is an Ismaili, an influential Muslim group that controls the economy of Kenya. It’s religious leader is the Agakhan. From humble beginnings as a semi skilled accounts clerk at Ryce Motors, Merali warned his way to the deep state from where he cut mega deals.
Ryce Motors
The Daihatsu franchise was swallowed up by Merali to gain his foot hold into the Motor Industry.
Firestone East Africa
It is not in public domain how this happened, but he ended up being the mega share holder and benefactor.
Sasini Tea and Coffee
His agricultural toe hold, also listed in the Nairobi Stock Exchange.
KenCell Communications Limited
This was the acquisition he made when the teleco business was established in Kenya. Using his connections with the then President Moi family, Merali was conferred a licence in partnership with French giant Vivendi.
The shrewd businessman went on to roll out the 0733 network in Kenya. But being the smart man he was, he sold the Celtel, then owned by MO Amin. This was after he boxed out the French without paying a dime. The Corporate giant went on to remain in the board of Celtel and is said to have still remained in Airtel board, the current holder of the 0733 franchise.
The Eveready East Africa scam
When the battery maker and dry cell retail giant began to struggle, Merali smelt an opportunity. He connived to issue a Rights Issue in 2006 through which Kenyans and other investors bought shares an an initial offer of Sh.6. The share price was based on assets that including its battery manufacturing plant in Nakuru.
This stable was domiciled on 30 acres of prime land. Other assets of the firm included prime land in Muthaiga and Karen.
Ten years after the IPO, the prime assets were sold to keep the company afloat and finance a divesture after counterfeits forced the company to the knees.
Thus, Eveready PLC, now divorced with Energizer PLC is technically insolvent. It remains listed in the Nairobi Stock Exchange(NSE). But may well be dead and buried. Like it’s founder.
