Nipate
Forum => Kenya Discussion => Topic started by: Georgesoros on January 20, 2016, 05:04:15 PM
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Omolo
Can you write a book on how to do business in a corrupt society?
Corruption has been institutionalized, so am sure it will be a best seller.
So one has to also change attitude..
http://www.the-star.co.ke/news/2016/01/19/youth-view-graft-as-acceptable-says-report_c1278558
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Omolo
Can you write a book on how to do business in a corrupt society?
Corruption has been institutionalized, so am sure it will be a best seller.
So one has to also change attitude..
http://www.the-star.co.ke/news/2016/01/19/youth-view-graft-as-acceptable-says-report_c1278558
It's unfortunately impossible to do straight business in a corrupt society such as Kenya.
A little story:
About 6 years ago, a good friend decided to start her own business selling high-end cosmetics. She went the "proper" way, as that's how things should be done (or so she thought).
She registered a company, commissioned a proper market survey which came back very positive (why blow bucks painting your face always baffles me but then again, I'm an uncultured guy), applied for all relevant licenses, permits, what-have-you and got the sole distributorship for Kenya from an international cosmetics firm. She then quit her high-paying no-end job. She opened her first shop in an upmarket area of Nairobi, started importing her wares and business was a-booming for the first few months. She quickly targeted other areas (one of them in the ill-fated Westgate Mall). Business soared, until even I started looking at cosmetics hungrily (seriously, the margins are ridiculous).
So far, so good.
Then competition came in. The Kenyan way. Another business decided she was making too much for her own good and decided to relieve her. They started importing the same stuff from Dubai (genuine). Using Kenyan shortcuts, they paid practically nothing to the KRA and other government institutions. Their landed cost was way below hers, so they could drastically undercut her while still making very good profits.
She talked to her lawyer, as she had the sole distributorship for Kenya. He advised her that suing the other company would take years, cost a bomb, and probably amount to nothing if (when) the judge is compromised. Meanwhile, her business was slowly and steadily dwindling down. First, her fourth shop (already leased and partitioned) was never opened, then the Westgate shop had to close (before the terror attack), then the second, and finally the first one, along with all her employees who lost their jobs. She was devastated.
Today, her business is booming again. How? She went the “Kenyan” way.....
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Empodocles,that is more like it, you have to swim along and don't try to swim against the tide.
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Empodocles,that is more like it, you have to swim along and don't try to swim against the tide.
RV Pundit,
I agree as that's something I've been doing for a long time now. No choice because if I take the moral high-ground, I lose, like my friend almost did.
At the beginning, when I was a wee bit ignorant (probably still am but that's another story), I started off with the importation of car spares. I politely declined to bribe the cops (those were the days when imported containers of spares had to be inspected by the police). Well, on one lovely Sunday morning, some nice chaps from the SCPU (Special Crimes Prevention Unit) popped over to my house (yeah, they found out where I lived) and took me for a ride in their car full of awesome weaponry. They gently explained to me the consequences of dealing in stolen motor vehicle parts (BS, I had all the documentation), how they would need to take everything from my godown for inspection, how long it would take, how little of it I would probably get back, how sad their boss was that I was being uncooperative, and then bought me a soda at a kiosk (seriously).
Hobson's choice.
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Yeah.There are industries to avoid if don't have the stomach for that. You can do clean business if you're dealing in very few industries....like NGO & donor sector...which is majority ran by wazungus who try to be ethical.
I agree as that's something I've been doing for a long time now. No choice because if I take the moral high-ground, I lose, like my friend almost did.
At the beginning, when I was a wee bit ignorant (probably still am but that's another story), I started off with the importation of car spares. I politely declined to bribe the cops (those were the days when imported containers of spares had to be inspected by the police). Well, on one lovely Sunday morning, some nice chaps from the SCPU (Special Crimes Prevention Unit) popped over to my house (yeah, they found out where I lived) and took me for a ride in their car full of awesome weaponry. They gently explained to me the consequences of dealing in stolen motor vehicle parts (BS, I had all the documentation), how they would need to take everything from my godown for inspection, how long it would take, how little of it I would probably get back, how sad their boss was that I was being uncooperative, and then bought me a soda at a kiosk (seriously).
Hobson's choice.