Scandals in Kenya: Take a look at some of the top business ideas that drove Kenyans crazy and then collapsed, leaving millions of Kenyans counting millions of money in losses:
Kenyan quail-preneurs may still be nursing wounds and cursing their luck, having learned the hard way “not all that glitters is gold.”
The rearing of these birds whose meat is hailed for health benefits was pointed to be a lucrative venture for all, prompting a gold rush as agribusiness entrepreneurs poured in.
Disappointingly, many watched the venture unravel in a swirl of dust and despair as quail farming faced a glut due to oversupply that surpassed demand resulting to massive losses for farmers.
2. Pyramid Schemes
They were touted as one of the biggest public scams of all time. Unsuspecting investors were lured into placing their money in the schemes with promises of handsome returns.
Those who invested ended up losing their money with some said to have lost more than Sh20 million. Court battles are just some of the painful reminders to many Kenyans of the schemes that stole their dreams and hard-earned cash.
3. Multi level marketing
One would think Kenyans had learned a lesson from the disappointment of pyramid schemes, so when multi-level marketing firms hit the streets, some Kenyans could not be left behind while others made a kill. But to their shock, some of the multi-level firms were pyramid schemes in disguise.
4. Guinea Fowl
Kenyan’s love for rearing birds seems unstoppable. One would think quail farming is the only business venture that took the country by storm but its predecessor, the guinea fowl, was equally a lucrative concept that failed to live up to its hype.
Like in the case of quail there was high demand that was affected by market glut.
5. Pool Table
In 1997/98 during the grand entry of pool tables into the Kenyan market, if you owned one, you were making a kill.
But the market would soon get saturated with these gaming tables leading to dwindling profits for those who had invested heavily.
6. Utility Poles
Kenyans ventured into the tree business to cash in on the growing demand for utility poles by Kenya Power.
It was big business given there’s still a huge chunk of Kenyan homes not connected to power. But with a saturated market, demand for poles diminished as prices dipped. To make matters worse the firm is turning to concrete poles.
7. Bottled Water
Kenyans’ appetite for bottled water has been on an upward trajectory over the years.
There is, however, a downside to it as the once lucrative niche market has gotten saturated with the products from backstreet investors who have acquired water purification machines.
This competition has forced big established companies to rethink their strategies.
8. Fish farming
Some Kenyans ventured into the business without factoring in market dynamics. As more ponds were created, fish flooded but not even Kenyans’ appetite kept the market afloat.
Fish farming is lucrative but one needs to watch costs before starting a fish farm.
9. Green House
At some point in Kenya, farmers who owned green houses minted good money. However, the market got crowed with green houses leading to oversupply of tomatoes.
The glut affected the tomato business and the commodity started trading at lower prices.
Clever farmers begun growing passion and citrus fruits but those who stuck to tomatoes still rake mediocre returns. Scandals in Kenya. Scandals in Kenya.