Tabitha Karanja and her family founded Keroche Breweries – Kenya’s only homegrown brewery – in 2008.

When they started, it was a bumpy ride. At the time, East African Breweries Ltd. was the sole brewery in the country.

The brewery manufactures beers, ready-to-drink vodkas, spirits, and a range of wines.

Many people wrote Karanja off because she dared take on foreign brewing giants that had formidable backing from well-known international shareholders.

The naysayers did not stop Karanja from pursuing her dream of building Kenya’s first truly local brewery.

Six years later, the brewery’s CEO admits the journey wasn’t entirely smooth, but she’s quick to add that the rough patch is behind them now.

At the end of 2014, she plans to open a new multi-billion shilling factory that will increase her factory’s capacity tenfold.

This new facility, she said, will be a game changer for Kenya’s beer industry and her company too.

AFKInsider spoke to Karanja about her business – where it came from and where she thinks it is heading.

AFKI: Why did you choose to get into the alcohol brewing business?

Tabitha Karanja: I had always wanted to get into the manufacturing industry. When I did my research, I settled on the alcohol business. I found out that there was a gap in the liquor market, more specifically in the lower-end market where consumers do not have a high purchasing power.

Consumers in the upper-end market also did not have much of a choice since there was only one manufacturer in the country at the time – East African Breweries Ltd. Armed with this information, the decision to get into the alcohol industry was not that difficult to make.

AFKI: What challenges did you face from the onset?

Tabitha Karanja: I think I had underestimated just how strong a monopoly existed in the beer market at the time. We soon realized that breaking this hold of several decades was not going to be easy. However, we were determined to do it.

AFKI: Are you experiencing the same difficulties currently?

Tabitha Karanja: Gladly, these things have since subsided and everybody is concentrating on his or her business.

Keroche’s focus is to ensure that my customers get the drink they want; at the location they want, at the right price and when they want it.

That is why I go to work every day. I cannot thank our consumers enough for their support over the years; they are the reason we remained resilient and have survived this far.

AFKI: Your main competitors are EABL and SABMiller which both enjoy strong backing from multinational firms with global reputations. Do lenders treat you differently since you are a family business?

Tabitha Karanja: There is some small level of hesitation when we approach some lenders, especially international ones. You cannot compare Keroche to Diageo – EABL’s main shareholder – for instance and the goodwill they enjoy out there.

Our competitors tend to get loans at more favorable rates since they have a proven track record, one that has been acquired over time in the numerous countries they operate in.

We still approach lenders for money, argue our case out that we have a good company that is not only well anchored but ready for greater conquests. Lenders indeed listen to us. For instance, we recently secured funding for the expansion of our brewery from both international and local lenders.

AFKI: How big a game changer wil the expansion be?

Tabitha Karanja: We have invested 2.5 billion shillings ($29.4 million) into the construction of a new brewery in order to increase our production capacity.

The groundbreaking of the new facility, which is located in Naivasha, took place over a year ago.

We have since finalized all financing deals with local and international banks and we should be up and ready by the end of the year.

This new plant will increase our annual capacity tenfold allowing us to produce about 100 million liters, a substantial and necessary upgrade from what we have now.

AFKI: What should we expect from the new factory?

Tabitha Karanja: Keroche has been producing products at peak capacity for a while now. We thought it was only right that we should increase this capacity. Furthermore, the market is there.

A higher production capacity means that more of our brands will be available and we hope that this increases our market share in the local industry to about 20 percent.

We also expect to start producing new brands such as stouts and non-alcoholics that the company currently lacks in our portfolio.

AFKI: How is Keroche a family-owned-and-operated company?

Tabitha Karanja: I am the company’s CEO while my husband is the chairman.

Ever since we formed it in October 2008, I have been the face of the company and that explains why very few people have seen my husband at official functions.

My daughter is running her own bottled water company. Her firm is situated in the same compound as our brewery.

I have two sons who are in their mid-20s and they are just joining the company now. They are both interested in helping to run the brewery business with a bias towards financial management.

AFKI: Do you have dreams of expanding in the region?

Tabitha Karanja: With a bigger, well-oiled factory, the possibilities are endless. This new capacity is going to help us consolidate our Kenyan business but we have medium-term plans of expanding into the region.

Tanzania, Rwanda, and Uganda are some of the countries we would like to set up in but we do not have the timelines for this just yet.

AFKI: Are there any plans to list the company on the Nairobi Securities Exchange?

Tabitha Karanja: That has always been the plan. Five years from the time this new plant starts operation, we expect to sell part of the company to Kenyans who have helped grow it. At the moment, we want the initial public offer limited to local investors only. However, we may change our mind later — you never know.

AFKI: You received a presidential award during the Kenya@50 celebration in December. What was your reaction?

Tabitha Karanja: I was humbled. It was a good award to get after all the years of struggle to grow the business this far.

It was a good gesture from government, showing that they also recognize homegrown entrepreneurs who have helped grow the country’s economy in their own way.

This is different from the norm where politicians are the usual recipients of such awards. I dedicate the award to Kenyans who have been truly supportive over the years.