Located in the central business district of Nairobi, Speed Capital is a Ksh. 400 million financial entities whose history of creation is rather intriguing as presented on Daily business March 9, 2015.
It was founded in 2009 by the CEO of Tuskys Supermarkets, Daniel Githua, and one of his friends at the time of the Starehe Boys Center, Ben Ireri.
In August 2009, Githua had accompanied a friend to pay the dowry. The negotiations were difficult and unfortunately the groom and his men failed to reach the required amount of Ksh 120,000. This short film opened the doors for him to lend the friend money and make a profit while he worked there.
Nairobi Stock Exchange CEO Geoffrey Otieno Odundo and Tusker Matttresses Group CEO Daniel Githua at a past event.
“I quickly collected money from a few friends who were there and I loaned it to my friend on condition that he repay with interest in a few weeks,” Githua recalled, quoted by the publication.
This incident made him consider the idea of an emergency loan. After further and in-depth analysis, he established that there was an ever increasing demand for quick loans, and it was from this that in September 2009, Speed Capital was registered as a company with 120,000 Ksh as seed capital.
Githua, together with his friend Ireri, started issuing small loans and mainly to friends and associates. He then worked as an auditor at Industrial Promotion Services.
By the end of the year, they had served Ksh. 5 million loans.
In 2010, the company experienced a meteoric rise. This forced the two budding entrepreneurs to strategize on growing what they had started as a side business. Thus, in 2010, they recruited their first branch manager, Miriam Mutinda, formerly banker in the microfinance branch of World Vision.
“We have the proper processes in place and hired eight staff, most of them loan officers,” Githua explained.
That year, Speed Capital raised Ksh 15 million from investors, including Kenyans living in the diaspora.
Murang’a was home to the company’s first branch, a move that was championed by the CEO of Tuskys primarily because he grew up there. However, the branch closed a year later due to weak activity.
Githua and Ireri did not stop there, they settled in Kitengela and Naivasha. A decision was then made to scale back the expansion and the duo decided to specialize in the metropolitan area of Nairobi for ease of administration. As a result, the following branches have been set up in Ongata Rongai, Embakasi, Thika and Gikomba markets.
To fully focus on the business, Githua left his post as senior auditor at Tuskys to fully manage Speed Capital.
Daniel Githua, CEO and Founder of Tuskys Supermarkets, at the lender’s offices at Kimathi House, Nairobi, March 8, 2015.
By 2015, the company’s workforce had grown to 90, with an additional branch in the Nairobi Pipeline area. Its board of directors had grown to include Gilbert Kibicho, founder of Top100 SME Virgin Tours, and Jesse Mwangi, director of consumer, commerce and marketing of the Nigerian company Habanera Limited.
“In addition to the implementation of strong corporate governance, the growth of Speed Capital is also due to the use of a different approach to lending,” said Githua.
He said the company has taken a different approach to lending, away from other financial institutions, focusing on the business model and processes.
“Many small businesses don’t keep proper bookkeeping and it’s easy to present a good statement of cash flow just by making deposits and withdrawals, which in reality may not be from the business but are intentionally made to show. a good financial situation,
“Looking at how the business operates, the industry in which it operates and the average margins, among other factors, provide a better borrower profile than books and bank statements. As a result, it reduces the risk of default.” , Githau then said. as told.
Githua left Speed Capital in 2015 when he was appointed the new and first non-family CEO of Tuskys Supermarkets.