Raila the Entrepreneur: How He Built Gas Giant EA Spectre

His exploits business rarely get as much coverage as his political chess moves

ODM leader Raila Odinga, the Presidential candidate for the Azimio la Umoja-One Kenya Coalition Party in the 2022 General elections, is well-known for his exploits in politics.

The 77-year old former Prime Minister has a storied political career spanning several decades, full of highs and lows – including 9 years behind bars during the struggle for multi-party democracy and serving as Prime Minister in the Grand Coalition Government between 2008 and 2013. However, his exploits in the world of business rarely get as much coverage as his rallies or political chess moves.

Odinga founded EA Spectre Limited while working at the University of Nairobi’s Department of Mechanical Engineering in 1971. According to the LPG cylinder manufacturing and revalidation company’s website, it controls about 20% market share in new LPG cylinders manufacture and over 80% of the revalidation market share.

He sits on the company’s board, as does his spouse Ida Odinga and German-trained engineer Israel O. Agina. Raila’s elder brother Dr. Oburu Odinga chairs EA Spectre’s board of directors.

The Azimio candidate in a May 2022 meeting with the European Business Council opened up on how he established the firm.

He lamented that, nowadays, an influx of cheap imports from China had seen many factories in Nairobi’s Industrial Area – where Spectre set up its first workshop – converted into warehouses. Pushing for local manufacturing to be strengthened, he argued that the warehouses in Industrial Area today employ far less people than the factories in the 70’s did.

READ>>Rent-to-Own: Why Ruto’s Proposal is Dividing Opinion

Odinga disclosed that he was able to establish Spectre after a rare opportunity arose. He was informed by a techician at UoN that there was an Indian businessman, formerly based in Jinja, Uganda who was looking to dispose of his equipment as he fled the country at a time when infamous dictator Iddi Amin was hell-bent on kicking the Indian community out of Uganda.

The equipment being stored at a yard in Parklands, Nairobi included welding machines, sheet metal cutting machines and rolling machines.

Raila went and inspected the equipment and found that they were in good shape. The businessman was, however, asking for Ksh12,000 which Odinga couldn’t afford at the time.  To fund the acquisition of the equipment, the young Odinga decided to sell his Opel left-hand drive car, which he had brought with him from Germany upon completion of his studies.

Odinga then registered the Standard Processing Equipment Construction & Eréction Ltd (later renamed East African Spectre). He revealed that the firm started out manufacturing casements, steel doors and windows before later venturing into manufacturing LPG cylinders after spotting a gap in the market.

“I went and started a workshop in Industrial Area, on Kingston road, now its called Kampala Road. I got employees also who were kicked out from Uganda, they were doing what they called Ugandanization,” Odinga recalled.

Spectre soon found its niche in LPG cylinder manufacturing as there were no local firms making them at the time. It grew and bagged clients including Total Kenya among other major oil marketing companies.

It also expanded over the years to grow its capacity. In 1988, Spectre entered a financing agreement with Industrial Development Bank Ltd (now IDB Capital) for expansion funding allowing it to put up a new factory along Mombasa Road.

In 2008, East Africa Spectre Ltd  embarked on a major upgrade of its factory to strengthen its market position. The firm installed a new state of the art cylinder manufacturing plant.

Old machines were replaced and various processes mechanized. Among machines that were installed as part of the upgrade were a heat treatment furnace, hydrostatic testing rig and spray painting system.

READ>>Silicon Savannah: New US Ambassador Nominee’s Big Plans for Tech in Kenya

Latest

In Race for African Leadership Award, Ruto Faces Tough Opposition

Among the contenders of the prestigious African of the Year award is Kenya’s President William Ruto, who will be battling it out with President Hakainde Hichilema of Zambia and Prof. Benedict Okey Oramah, President of Afrexim Bank.

Transforming Financial Inclusion: The Impact of M-Pesa in Kenya and Beyond 

Discover the profound impact of M-Pesa on financial inclusion in Kenya and beyond. Explore how this innovative mobile service revolutionizes transactions and shapes the future of finance globally.

All You Need To Know About Vaping

Vaping, the act of inhaling vapour produced by an...

A Look at New Generation Ford Vehicle Models Trending in Kenya

The new partnership between Ford and Caetano offers the brand an opportunity to gain market share in Kenya by leveraging on Caetano’s extensive network and experience.

Follow Us

Newsletter

Don't miss

Safaricom To Power Tusker OktobaFest Beer Festival

Safaricom’s involvement in OktobaFest as a technology and payments partner will focus on fostering seamless in-festival connectivity, empowering the youth and Gen Z community through Safaricom Hook, and powering digital payments through M-PESA.

Music Producers Launch Organization To Streamline Recording Industry

Recording Industry of Kenya (RIKE) was launched on 9th October 2023. Registered in 2022 as a not-for-profit organization, RIKE aims to promote the collective interests of producers of sound recordings in the country.

Nairobi’s Hero Bar Listed Among World’s 50 Best Bars

World Best Bars: Hero Bar in Nairobi continues to climb the list, moving up six places to No.62 and Johannesburg’s Sin + Tax comes in at No.94. Dubai new entry Ergo is at No.69 and Melbourne’s Byrdi has re-entered the list at No.61.

Kenyan DJs Face Off In Smirnoff Battle Of The Beats Season 3

The Smirnoff Battle of the Beats Season 3, a DJ competition, is poised to unleash an unprecedented musical frenzy countrywide.

The Highs And Lows Of Betty Kyallo, Sisters Show As Season 2 Ends

Kyallo Kulture has always been, above all, about sisterhood, and in Season 2 we have witnessed the charm of it - the ups that gave us wholesome moments as the sisters led by Betty Kyallo spent time together.

DStv Beats CNN, BBC To Become Most Admired Media Outlet In Africa

DStv, MultiChoice Group’s leading broadcast service, has been named...

MultiChoice Revises Subscription Fees For DStv, GOtv

MultiChoice has announced price adjustments on some of their...

Octopizzo: How I Make My Money

"I've been doing this for 12, 13 years. It reaches a point where you no longer need to prove that you can make a hit record," he stated.

New Spotify EQUAL Artist Qing Madi Talks Music and Dreams

Heavily influenced by her cultural background and the lyrical arrangements of Kendrick Lamar, the versatile Nigerian prodigy is shaping the future of music with her unique genre-bending fusion of Afrobeats, Pop, Soul and R&B.

Bob Collymore Immortalized in New Festival

The late Collymore was famous for his love for jazz and even initiated the Safaricom Jazz Festival, which saw several of the world's biggest Jazz artists perform in Nairobi.
MARTIN SIELE
MARTIN SIELEhttps://loud.co.ke/
Martin K.N Siele is the Content Lead at Business Today. He is also a Quartz contributor and a 2021 Baraza Media Lab-Fringe Graph Data Storytelling Fellow. Passionate about digital media, sports and entertainment, Siele also founded Loud.co.ke

In Race for African Leadership Award, Ruto Faces Tough Opposition

Among the contenders of the prestigious African of the Year award is Kenya’s President William Ruto, who will be battling it out with President Hakainde Hichilema of Zambia and Prof. Benedict Okey Oramah, President of Afrexim Bank.

Transforming Financial Inclusion: The Impact of M-Pesa in Kenya and Beyond 

Discover the profound impact of M-Pesa on financial inclusion in Kenya and beyond. Explore how this innovative mobile service revolutionizes transactions and shapes the future of finance globally.

All You Need To Know About Vaping

Vaping, the act of inhaling vapour produced by an electronic cigarette or similar device, has a relatively short history compared to traditional tobacco smoking. The...

LEAVE A REPLY

Please enter your comment!
Please enter your name here