Peter Kahi is here to help you understand more about business.

Peter Kahi is here to help you understand more about business.
Peter Kahi is here to help you understand more about business.

For thirty-two years now, Peter Kahi has been one of the great business insolvency practitioners. Currently, he is a proprietor of Nakumatt Holdings and style dealer Deacons.  In the business field, people call him the ‘corporate mortician.’ He works similarly to an emergency doctor as he can save a dying business or let it go in peace. Most of the Kenyan companies consult Peter whenever they face critical situations. Here are several indications for business failure, as outlined by Peter Kahi.

Not owning material goods

According to Peter, many of the retailer shops that fail do not possess assets such as land. He says they have nothing to sell in case of any bad debts or even raise capital for daily operations. Peter says having assets is a divine move as investors can be attracted to offload some of the issues faced by a retailer. A good example is Nakumatt Company. In the beginning, it had no trolleys and shelves, although strategic investors, as well as other Companies, came forth to support them.

According to Kahi, Deacons is searching for assets buyer that includes fittings, fixtures, motor vehicles, office equipment as well as stocks.  Besides, some corporations like Uchumi own assets; if they face any problems, they will sell it off or even get surplus funding. It is the reason they have small debts. Peter says the essential rules to ensure you have business assets include avoiding liabilities to build an asset. Furthermore, consider having good cash flow instead of acquiring assets, and your operations should be aiding revenue to the company but not take away.

Using the wrong Business model

According to Peter, a business model is one of the fundamental aspects of a company. Choosing the right model helps a retailer to evade collapse. As per reports, Deacons collapsed with 1.1 billion Kenyan shillings debt while Nakumatt collapsed with thirty-eight billion Kenyan shillings. Since then, the low-profit margins subject retailers to an expansion spree. The splurge leads to the creation of more debts

As per Kahi, if you want to expand your production, the right time to scale up is when your business enterprise is surpassing the set achievements or when it has a steady cash flow.

Furthermore, ensure you find out whether a business is ready for growth or not. Kahi says this is a crucial step, and it requires a lot of research. Besides, you need adequate capital, staff, be ready to handle increased sales as well as more orders. Peter adds that for one to succeed, it is wise to invest in modern technology and experts.


Operating a business enterprise is not as simple as how some people see it. It calls for a lot of focus, determination, accepting where you go wrong and correct as well as joining forces with those experienced. Another trick is to ensure you market the brands you are selling as much as you can for it to be visible and attractive. Do not let the demand fall by the wayside as people will not interact with your brand.



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