Friends of Ngong Road

We empower Nairobi children living in poverty to transform their lives through education and support, leading to employment.

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Karibu Loo Corner

Karibu Loo has rebuilt the business and is ready for a new year

With the country’s ongoing vaccination campaign and following the relaxation of Covid-19 restrictions, the Kenyan economy is gradually recovering from Covid-19 impacts. 

Rebuilding the Business after Covid-19

The impact of Covid -19 has resulted in 2021 being a rebuilding year for Karibu Loo. In 2021, we focused on growing long-term rentals, now constituting over 60% of this year’s total revenue.  Our primary marketing tool was digital advertising campaigns through Google and social media platforms (Facebook, Instagram and Twitter). The campaigns have yielded nearly 80% of our sales, including long-term commercial, coming through direct inquiry without a sales intermediary.

Long-Term Business is our mainstay

Since the onset of the pandemic, long-term business (primarily construction companies) has been our mainstay in revenue and has enabled us to survive through the pandemic. Short-term business primarily relies on events, and their return has been slower.

During the last three quarters of 2021, we recorded a rapid increase in long-term revenue peaking at 25 cabins per day in the fourth quarter. In recent months, the long-term has contributed almost 70% of the total monthly revenue for Karibu Loo, the highest level we have recorded since inception of Karibu Loo. We believe this trend will progress next year, creating a solid revenue generation base. 

2022 Business Outlook is bright

The coming year outlook remains uncertain and contingent on the impact of the Covid-19 variant (Omicron). We anticipate serving the BATUK (British Military Training Unit Kenya) organization.  They train troops in Nanyuki, about a four-hour drive from Nairobi. BATUK usually schedules military training in phases throughout the year so we anticipate supplying at least 40 cabins per day for three months beginning in January with the possibility of extending through the rest of the year. Despite the complex operations cost behind the business, it provides a significant revenue boost.

Staff Update on Covid-19 

For safety, we urged staff to vaccinate, aiding in Covid-19 prevention, risk reduction, and client protection during services. Currently all our staff are 100% fully vaccinated (complete doses).

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KL continuing to make progress in 2018

Karibu Loo (KL) has many exciting developments to report. Thus far in 2018, KL has gone from being a business struggling to secure long-term contracts to a business struggling with positive growing pains.

  • Moving to profitability. In early 2018, KL achieved consistent profitability: $2,000 in January, $1,000 in February, and a remarkable $7,000 in March. April is on track to generate profits as well.
  • Sound leadership from Maureen and Kenneth. Under Maureen Mulievi’s effective leadership, the business thrived, reinforced by dynamic sales expert Kenneth Odongo’s energetic contributions. See all staff at Karibu Loo: https://www.karibuloo.co.ke/our-staff/
  • Long-term business absorbing an impressive 46% to 94% of units. Maureen, Kenneth and the staff have been successful in securing more long-term contracts. The British Army in northern Kenya demands exceptional service and effort, expanding contracts from 16 to 66 units in January. The construction business, with an April total of 17 units on monthly contracts, now includes Konza Construction, Nanchang Construction, TENSES, and Karen Construction. KL has retained the ongoing weekly Sunday-only rentals to three churches for seven units. Long-term rentals therefore absorb 17% (27% with the churches) of our units plus the highly variable British Army business, which puts absorption between 94% in January to 46% in April.
  • More effective targeting. KL has learned that long-term rentals are primarily done by foreign corporations or government entities, and Kenneth is becoming effective at targeting important, long-term sales.
  • Assets spread thin with inefficiencies costing over $15,000. Running the business has been a challenge as our assets are spread very thin. Current assets include 88 unit (including one VIP unit), a large truck, one exhauster and a pickup truck that can pull the VIP unit or the newly-built trailer to transport unit. KL had to pay for third-party trucks to transport the units to the British Army and is currently renting a large truck full-time (combined cost in Q1 was $14,000) to service the British Army business to which KL has dedicated the exhauster. All the units in Nairobi are serviced manually, which is unhealthy and unpleasant for our staff. The low number of available cabins has forced KL to rent units from competitors on occasion (Q1 cost = $615).
  • Most urgent need – a reliable large truck. The prominent challenge is the aging truck, reliable for years but now consistently failing, affecting KL company’s operations. The portable sanitation business is not viable without a reliable truck and exhauster. We’re planning to buy a truck, exhauster, and 60 loos. Seeking individual donations to achieve this purchase goal.

Today, KL employs five Ngong Road Children’s Foundation (NRCF) graduates full-time and has employed 57 high-school graduates part-time as Associates since inception. KL’s Associate Program allows recent NRCF high-school graduates to gain that very valuable first job experience and earn income. The organization employs Sales and Operations Associates for event cabin upkeep, materials stocking, and representing the organization.

The Associates program teaches NRCF graduates how to be good employees – show up on time, do a good job, and dress properly – skills that students living in the slums never see demonstrated by adults in their lives yet are critical to the charity’s mission of transforming lives through employment . Associates make 500 Kenyan shillings a day plus transport and a meal. (For context, 500 Kenyan shillings covers about a quarter of a month’s rent in the slums).

The slum economy has received an injection of $5,000 in earned wages through the making of almost 1,000 day-payments.

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Karibu Loo is Expanding!

The KL business in Nairobi is expanding and these are the updates regarding its status.

Karibu Loo Will be Fully Launched in 2016

We have placed an order that will begin the expanding portable toilet business in Nairobi.  In early 2016, we will fully launch the business by adding a pick-up truck, a VIP toilet, and another 40 cabins, along with hand-washing stations in response to our key learnings during the 2015 pilot.

Financial results

During the pilot project, we were able to break even because all of the capital was donated.  We are actively soliciting financial support to pay for the cost of the equipment that will allow us to expand.  Those efforts will continue in 2016.  If we are able to secure donations to cover our capital needs we will be able to begin making financial contributions to Ngong Road Children’s Foundation’s operating budget next year.

Employment

In 2015, we exceeded our goals for the employment of our graduates.  To date, 24 graduates have worked as Associates at events, learning important employment skills.  In addition, we have hired three graduates to assist with operations, administration, and accounting.  As we grow these results should continue.

Looking ahead

Michael Switzer will continue as our volunteer general manager in Nairobi until June 2016.  We expect to hire his successor in March and to continue to build the team and infrastructure that will allow this business to build on the successes of 2015.

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