Failure prepared me for success - Hyssop Properties CEO Naftaly Mwangi

Hyssop Properties CEO Naftaly Mwangi. [File, Standard] At 35 years, Naftali Mwangi has seen it all in business before finding his calling in real estate. He trained as an engineer but became a banker. His first foray into entrepreneurship ended up in failure when he attempted selling cars and later running a hardware store. "I've failed in business multiple times but I've learnt a lot from failure than even what I'm learning right now," he tells Enterprise. He is the founder and CEO of Hyssop Properties. He recently won two top awards at the National Business Leadership Awards (NaBLA Awards) bagging the CEO of The Year and Company of the Year titles. How did it all begin? Mr Mwangi graduated in electrical engineering from the Jomo Kenyatta University of Agriculture and Technology (JKUAT). He worked in a bank for four years but quit to venture into the lucrative real estate sector. "I honestly didn't have a passion for engineering, I did it to copy someone ... by luck, I found myself in the banking sector where I discovered my qualities and skills," he says. He says his skills are leadership, teamwork, and growth. He's currently pursuing an MBA in business management and plans to enrol for a degree in real estate. He'd registered his company in 2012 but it only began operations in 2016 as he laid the groundwork. Mwangi resigned from formal employment in 2014. To open his first office, he took a loan from a shylock against his car. Hyssop, a name borrowed from the Bible in reference to a plant believed to have a cleansing effect, started with two employees but it now has 36 staff members and offices in Nairobi, Nakuru, Kiambu and Laikipia counties. The firm links Kenyans to affordable homes and land investment. He started as an agent helping firms sell off houses. His first formative deal was when Co-operative Bank Housing hired Hyssops to offload about 100 plots that they were struggling to sell. Mwangi sold the properties for about Sh60 million in about six months earning a good cut. "We sold them in less than six months and earned a Sh10 million cut. That's the capital that built Hyssop. We've never borrowed from a bank." Mwangi advises budding entrepreneurs to "just do it" explaining that the internet and technology have since made entrepreneurship easier. "Through social media one is able to carefully segment and target their customer base." Real estate remains one of the hottest investment avenues in the sector. Such lucrative sectors give way to many crooks trying to take advantage. Mwangi is all too aware of this and encourages due diligence before any purchases. He's also called on authorities to crack down on rogue dealers. Mwangi notes that the sector can only keep growing and dispels claims of a real estate bubble. "When you go to the developed world such as Europe, real estate is growing at 2 per cent annually. In Kenya, it's growing between 30 and 40 per cent annually," he says. He adds that there's a growing population and devolution also created a real estate boom. "If you go to Nakuru County, it wasn't what it is some five years ago. The towns in most counties are flourishing," he notes. "County governments have big budgets and also hundreds of employees who have salaries and need housing." The firm focuses on the Nairobi metropolis having projects in areas such as Kiambu, Machakos and Kitengela. Hyssops has, however, thrived in Nakuru, Nyandarua and Laikipia counties as it eyes expansion into Eldoret and Malindi in the Coast. One of their key products to boost property uptake has been the 'Zawadi Mzazi' project which they've patented as a business. "Our market research shows that six out of ten people in this country have a parent to settle. They also want to build image when they are hosting guests at their rural homes," he says. This saw them partner with a financial institution and engage individuals who want to build for their parents. This year alone they've constructed 36 houses and have also partnered with the Kenya National Library where they are building houses for their members. He owned a home when he was 24 years old and offers some tips. "Owning a home is a basic factor of financial freedom ... don't worry about distance if you want to build your first home as your dream home, it will take forever," he advises. He explains that there's a huge investment infrastructure which is unlocking many locations that were once considered as located far away. "Today, going to Kitengela if using the Expressway takes 15 minutes, before, it could take over one hour." He notes that owning a home early gave him the guts to quit employment early and pursue his entrepreneurship dream. Financing is also a key impediment to owning a home early and Kenya also has a low mortgage uptake despite things like housing being a key pillar in the current administration's focus. "One of the deterrents to owning a home is actually the cost of money as banks are expensive. However, there are so many saccos helping people own homes. Some offer up to 15 years to pay," he says noting that they've partnered with Tower Sacco for some of their projects. He says that two-bedroomed apartments have sold really well owing to the rise of young, single and affluent folks. This is mostly the case in urban areas. However, in regions farther from Nairobi, people prefer to build bigger residential houses. Mwangi's goal is to drive home ownership by helping people source funds and the expertise to build. Between Sh1.8m to Sh3m Hyssops can turn easily turn a plot into a home. Apartments range from Sh3m to Sh4.6m. The law allowed people to tap into their pensions to build a house in efforts to drive home ownership.

Failure prepared me for success - Hyssop Properties CEO Naftaly Mwangi

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