One of the major problems facing Kenya is the unemployed educated youth. Kenyans will have to create the employment opportunities by starting new businesses. Starting the number of businesses to absorb all the youth will require much capital. Existing conventional methods of raising credit and attracting grants will not suffice. Alternative ways must be sought. In the search for alternatives ways to raise and create capital, Hernado's ideas in his book The Mystery of Capital offers some possibilities. Using the west as an example where his ideas are practiced, he emphasizes the need to create capital out of assets. A modern property system is necessary to create capital out of assets. It is well developed property systems that are used to turn assets into capital. Hernado gives examples on how the poorly developed property systems in the third world and former communist countries undermine the creation of capital from the vast amounts of assets existing in those countries. Obstacles to creating a proper property system are legal, administrative and political.
Capital Resource Management Limited (CRM proposed) is a wholly owned subsidiary of NDC. The mandate of CRM is to help raise capital to start the businesses proposed by NDC
CRM plans to use Hernado's ideas to create capital out of vast assets held by Nyeri people. To do that CRM will look for ways to create representations out of the assets that Nyeri people have. Those representations will be used to generate capital. To generate capital the representations will be made tradable. To make them tradable requires a network of merchants. Our laws do not offer enough opportunities to make such representations tradable. CRM plans to create representations that are tradable within existing laws. CRM will consult with lenders and lawyers in an attempt to get such representations acceptable as collateral.
Nyeri people will be required to provide many of the inputs necessary to start business. Many of those inputs will be paid for in the form of certificates instead of cash. Well to do people from Nyeri, the employed, will be encouraged to buy the certificates. In buying the certificates they will be partnering with the locals and co-owning the business with them.
Agricultural produce is a major income earner for Nyeri people. CRM will look at opportunities to get better returns for the produce. It will encourage investing the proceeds from the crops in business startups.
Land is the biggest asset or resource that Nyeri people have. Existing laws and trading patterns do not allow quick and easy exchange of land titles as an asset representation. CRM will consult with lawyers and lenders to look for easy ways to use a land title to secure credit.
CRM will look for ways to generate capital out of human effort, materials, services, agricultural produce and the land titles. This is necessary to raise the large amounts of capital necessary for the large number of businesses proposed. All the ideas proposed here by CRM are at a very elementary stage . Experts will be consulted so that they are refined and made applicable to the work of CRM.