So according to the article on Alai’s website, the new owners of Makini school did not buy the buildings and land from Mary Okello but paid her 930 million for the school brand. From my understanding of the article, they had an arrangement with her to lease the property and operate the school there. I thought school property is normally inherently tied to a school business especially large ones. Maybe I was wrong but I think those investors got shafted a good one or are extremely poor planners because I don’t understand how they couldn’t have foreseen such a probable outcome. I mean, you wouldn’t spend 930 million before conducting a simulation. The location of the school is very prime and they obviously can’t find an alternative location in that area because of the high cost. If they shift to a cheaper area, they will lose students, that’s for sure because people like taking their kids to schools near where they live.
My 2 Cents. Those investors erred because a day school’s perceived value is also dependent on the location it is in. Failing to buy both the name and the property was their coup de grâce moment. A school’s brand includes it’s location. Most pupils in any school live within less than 2 kilometers radius from their school. Parents typically prefer children studying near home for convenience etc. Part of the Makini brand is due to the school’s location. A large part. Therefore, those investors just gave Mary Okello a cool 930 million for nothing because they can’t shift their business with the students from that location. They will leave her premises, and she will launch a new “Makini” and continue like nothing happened. Well played Mary Okello, well played.
Hii ni ile pesa iliyofichwa kwa mattress. People are ready to get rid of it in any way. Because they know that by 1st October hizo noti za ngiri zitakuwa makaratasi.
The school name was sold last year. The investors are facing a capacity problem and can’t scale their business from that location. Mary Okello isn’t willing to lease more land to them. Ni kama kununua premio bei ya V8
I am reminded of the Spectre International saga; you commit to buying out a plant only to later on find out that the land the plant sits in is not part of the deal.
In this case either they knew all along or their lawyers did not understand the fine print. The reaction suggests the latter.
kwani the investors didn’t have lawyers to scrutinize everything or they brushed the documents assuming everything is okay? basically okello can kick them out with their name and rebrand it to another name? They paid alot just for a simple name that can be replaced easily.
Those are fund managers. They earn a fee of around 1% of the funds they manage annually. Sasa io pesa si yao. Walikula pamoja na Madam Okello.
They will still earn their fee at the end of the year.
The owners of the money cannot question anything, because it is stolen money. Ata return ya 50 cents kwa dollar annually ni enough kwao.
I meant bank