The struggles of doing business next to learning institutions

It is about noon on Monday. A few metres from Maseno University’s Siriba campus (Gate B), an aroma of spices fills the air as you approach Gateway Hotel and Shop.

Here, you meet Moses Papa and his wife busy preparing various dishes to serve their customers.

After taking early retirement from his job at Maseno University and consulting with his family on his new path, Papa decided to venture into the world of business.

“I worked there for almost 10 years. Venturing into business was a decision that my family and I agreed upon. We are managing with the little we get here. Although the business is growing daily, there is still room for expansion,” Papa said.

His main customers are students and former colleagues at the university. This is reflected by a drop in profitability whenever the institution closes for the holidays or due to strikes. 

“They are our major customers, making up about 90 per cent of the town’s population. When they are not around, we suffer in terms of cash flow as profit margins,” said the businessman. “We ensure that when the students are in session, we maximise sales.”  

During the lull, the businesses usually adapt fast to stay afloat, including reducing the number of workers and expenditures as well as the meals and goods they sell.

Some break from their business while others venture into other sectors - but on a low key. “When you visit Maseno during that particular time, you may describe it as a ghost town, because students are not there. Many shops remain closed and the few that are open survive by drastically reducing their stock,” he said.

Adapting to these changes has been their norm since they must eke out a living.

This has seen them establish new ways to cover up for the period when they are down, from finding ways of catering bills and ensuring that their workers are retained.

“We have our survival tactics during this period. These include making arrangements with our landlords on rent, where we seek to share the cost on the terms we agree on and reduce our employees by half,” he said.

When students go on the rampage, traders bear the wrath. They are the first victims to incur losses as their businesses are usually vandalised. 

“Whenever there is unrest in the university, the first target are the stalls that are adjacent to the facility. We suffer major losses as students break into our businesses, going away with our stock worth thousands,” said Papa.

Papa, like many other traders, faces the challenge of students who reverse the money after making transactions.

“The biggest challenge is the issue of money reversal. We receive massive notifications from the service provider (Safaricom) on instances where students try to reverse their money after being serviced. When you confront them, they feel ashamed and sorry for their mistakes,” said Papa.

On the other hand, it is not always a spell of dry fortunes for some traders as Edwin Kimathi, a student and businessperson narrates. Although he has several businesses in other towns, his cyber café business in Maseno stands out.

Dealing with mostly academic materials and services, he offers the services at the strategic location - a few meters from the main gate(A) and Kisumu-Bungoma highway. Kimathi says the positive impacts of setting up the business in Maseno Town outweigh the negatives - giving him a reason to keep going in the business.

“Since my business majorly deals with stationery, my customers are mostly students who come for services such as printing, typing and photocopying. However, there are secondary customers which include lecturers, churches, hospitals and individuals residing in this place, who have made me realize profits from the business by offering us tenders,” Kimathi stated.

Kimathi makes huge fortunes during key events such as the admission of new students, graduation ceremonies, sports and other major events. “During this period, we serve thousands of individuals. That means the profit is high. However, due to the high demand, I am forced to seek an extra hand to help my team,” Kimathi stated.

His close bond with them has saved his business from destruction during rampages and unrest. He makes more cash from school events.

“The school shares their emerging events via their websites, local media outlets, and the student leadership and through the students, you can determine the events set to happen and that has helped me to plan and use the chances well,” Kimathi said.

Academic materials

In comparison, doing business next in a town such as Maseno University has some advantages since the customers are knowledgeable.

“In the case of this place, students will require such things as accessories and academic materials every day, they require online services to submit their assignments, E-citizen services to complete their tasks as compared to the villages where such people are very few,” Kimathi stated. “Last month, I made about 379,5200 for all my businesses around Maseno town,” Kimathi said. During the short holiday in December last year, he made 125,000.

He made about Sh398,000 in August this year since first years had reported.

He however says he makes as low as Sh4,000 during low seasons.

Monica Ambwao, famously known as Mama Changuli, despite leaving her old illicit liquor brewing to focus on her new business of selling vegetables near the university, said she is forced to retrieve her small garden when students go on holidays.

She noted that this period is the hardest since the little she earns from the business cannot quench her needs and sustain her livelihood.

“When they go for long and short holidays, business relatively goes down. In this situation, I close down my business and go back home and engage in some agricultural activities in preparation for their return because that is the only time we have to perform our duties at home,” she narrated.