Siaya resident Gwada Ogot made headlines last month when he petitioned the Senate to legalise marijuana, arguing that the plant, scientifically known as cannabis sativa, has multiple documented medicinal benefits.
Clinical trials in both animals and humans have found cannabidiol (CBD) extracts as having antipsychotic effects due to its anxiety-reducing effects.
"The crime and controversy around marijuana emanate from its prohibition and not from the plant itself, its uses or users," Ogot said.
While many Kenyans may have thought he was high on something, a growing segment of the global population agrees with him: 28 states in America and at least 25 countries.
And with the legal cannabis industry generating Sh690 billion in sales last year, up 34 per cent from 2015, investors including hip hop legend Snoop Dogg are cashing in.
High risk, high reward
Much like the independent movie business, the cannabis industry attracts investors looking for high-risk, high-reward investments, and as marijuana goes more mainstream, so does the funding mechanisms for the industry's businesses.
Just recently, numerous investment firms have cropped up, announcing themselves as major entities in the billion-dollar industry.
The opportunities are wide-ranging: Everything from exotic strains of marijuana to concentrated edibles to topical creams fortified with CBD extracts, as well as clothing and jewellery lines, are being offered to consumers.
CW Hemp, a family-owned company based in Colorado, is known nationwide as the exclusive provider of Charlotte's Web, which the company has dubbed as "the world's most-trusted hemp extract."
Founded by the Stanley brothers of Colorado, the company's mission is to provide the best medicinal product to those who are in serious need.
When it came to getting their businesses set up, the Stanley brothers were on an interesting road in terms of investor interaction.
"We've built one of the strongest marijuana brands in the world, and we've done it with less than $4 million (Sh400 million) in total outside capital, mostly from Florida-based investors who wanted to feel good about what they were doing with their money," says Joel Stanley, CEO of CW Hemp.
"They believed in our mission. We're constantly asking ourselves if we want to bring in an outside investor, because who doesn't like to feel more secure? But we're very proud of how we built a family business with small investments."
Medicinal benefits
Bonita "Bo" Money, one of the few women of colour in the cannabis products industry ("Less than 3 per cent," she estimates), has been an enthusiast for years, calling it "a miracle plant," relying on the medicinal value of the substance as the key ingredient for her popular topical cream That Glass Jar.
"People need to be properly educated. There's too much misinformation and part of my job is to ensure that people understand the benefits," she says.
Money is also the founder of the networking organisation Women Abuv Ground, aimed at what she calls "cannapreneurs".
"I don't get high," she says. "I'm interested in the healing properties of CBDs and how people can heal naturally. My company makes no medical claims and we can only gauge its effectiveness by the people that have used it for various ailments. But from what I've seen, this product is of huge benefit for multiple health issues."
And when looking for investors to work with, she turned to some private sources, while mostly self-funding her endeavour.
"I've had the chance to work with some very like-minded people who believe in this cause. I've been courted by major companies, but I didn't want to give up control. I've been discussing a potential collaboration with my mentor, Dr Charles Hensley, the creator of Zicam, and I'm developing an animated series called 'The Pot Headz' and a reality project centred on the cannabis lifestyle. I'm very excited about what's coming up."
Taking a different approach to investors is MedMen, a leading cannabis firm with nationwide exposure, based in Los Angeles.
MedMen management offers turnkey services to cannabis licence holders, while MedMen Capital operates as a strategic investment group working in key markets across the US and Canada.
"Nearly two decades after California became the first state to legalise medical marijuana, we now have 28 states with legalised medical marijuana," says Adam Bierman, MedMen's co-founder and CEO.
"Last November, the number of states with legalised recreational use doubled to eight. As marijuana becomes more accepted by the mainstream, its appeal also broadens. It's not just about stoners rolling up joints. It is about highly productive and functional professionals choosing a cannabis vape pen over a glass of Scotch, or Chardonnay moms shopping for CBD-infused bath bombs and cannabis edibles."
In terms of investment opportunities and the way MedMen is structured, Bierman is candid about the emerging opportunities.
"Everything at MedMen has been earned," he says.
"When we started out, there weren't any large-scale cannabis investment firms in operation. MedMen is primarily self-funded, and we did receive some early capital from a wealthy family in Florida who believed in our mission and wanted to be a part of the industry."
Job creation
MedMen has grown quickly, now employing more than 100 people across all its departments. Bierman says the company has seen "over $130 million (Sh13 billion) in project development in the cannabis space in 12 months."
And despite a rapidly changing landscape with more players arriving by the month, Bierman is confident with how MedMen has progressed.
"Had we started last year, I think the way we would have approached our business model, and our launch, might have been very different. We're still breaking new ground every day in an industry that's just starting to truly explode, so the fact that we did what we did with no major capital infusion at the beginning, I'm very proud and excited for the future."
Indeed, the mainstreaming of money into the sector got another boost with the inaugural Institutional Capital & Cannabis Conference, organised by MedMen and IMN, which produces investment and finance conferences.
Over a weekend in March in San Jose, California, interested investors attended such panels as How Consumers Are Driving the Industry Forward, Navigating the Regulatory, Compliance and Tax Landscape and Private Capital Investment in the Cannabis Industry, with reps from top industry investors Casa Verde Capital, Arcview, law firms and other investment houses.
MedMen notes that the conference is "the only event of its kind focused on the legal cannabis business as an alternative asset class to achieve portfolio diversification. This event has been created specifically with the needs of the institutional and accredited investor in mind."
Patrick McMahon and Scott Lambert, the co-founders of The OG Collective and P&S Ventures Holding Co., have seen the industry expand in ways that they never could have anticipated.
The Cathedral City-based company is looking to expand further into Los Angeles, with the ability to grow plants, make concentrates and edibles, and produce vape pens, which continue to increase in popularity.
"We expect the OG Collective to expand," McMahon says.
"We see ourselves as becoming the BevMo of the marijuana industry. The industry is too big to turn back on now, and the amount of potential tax revenue cannot be ignored. Investments are tough because we're still dealing with a cash business, which is a big obstacle, but we're getting there."
Lambert adds: "Between the two of us, we have a tremendous amount of knowledge about this business. We've created high-paying jobs in this particular area, and as the public becomes better informed and educated, we see that opinions are changing. Marijuana has been here forever and it's not going to go away any time soon."
Considered the largest non-profit medical cannabis dispensary in California, Harborside Health Centre, founded by Steve DeAngelo in 2006, is one of the country's most well-known medical marijuana dispensaries.
Operating out of Oakland and San Jose, Harborside has pulled in more than Sh3 billion in sales per year on medical marijuana since its inception, with 2016 netting Sh4.4 billion.
In addition to running Harborside, DeAngelo is the president and co-founder of the ArcView Group, a cannabis-focused investor network that also operates as a research group that works to connect entrepreneurs with cash-ready investors.
"ArcView was born seven years ago out of my friendship with Troy Dayton," DeAngelo says.
"We had been approached by various cannabis entrepreneurs who needed help with financing, so we created ArcView as a way of bridging that community with the investor community."
And the results speak for themselves. "Since we started, ArcView has raised $100 million (Sh10 billion), which has benefited 130 companies," he says.
"We're really one of the original pioneers in the space, and neither Troy nor I had any experience in finance. We're activists but we're conscious of the challenges that people face when wanting to start their own operation. The power of private enterprise is what drives social change, and we're very excited about how things are progressing. It will be very hard to rollback what's been accomplished, despite the apparent intentions of some in our government."
Another big player is Casa Verde Capital, a venture capital and investment firm dedicated to the growth and expansion of the cannabis industry.
Founded in 2015 and based in Los Angeles, Casa Verde is overseen by probably the best-known cannabis entrepreneur, Snoop Dogg, as well as by Ted Chung, Evan Eneman and Karan Wadhera.
The firm specialises in growth capital, and seed and growth-stage investments, as well as helping to fund start-ups, while investing in media, technology, mobile apps and research development focused on breakthrough technologies, innovative remedies and lab testing.
Growing markets
Another business model comes from Kalyx Development, which has rapidly amassed a multi-state portfolio of cannabis properties.
The company leases its properties to cannabis operators, and offers the opportunity to certain tenants to receive capital which can be used to upgrade infrastructure.
Kalyx purchases commercial and industrial real estate which can be used for new cannabis businesses, and is well positioned in the industry due to their deep knowledge of specific regulatory, zoning, and operational challenges which have become unique obstacles to those looking to expand in the cannabis industry.
"We're the preeminent company in this space, and we're thrilled about the many opportunities we're seeing in California," says Lily Colley, director of marketing and operations.
"This is a very exciting market for us, as we see ourselves as a resource for operators in that we can act as an investment vehicle."
While not acting as a cannabis operator, Kalyx focuses its energies in states with progressive laws and growing cannabis markets such as Oregon, Colorado, Washington and Arizona.
CBD-enriched products have become more widely accepted in the past few years, with celebrity stylists such as Karla Welch on Instagram to talk up the benefits of products from Lord Jones, and makeup artist Jessa Blades extolling the wonders of cannabis-infused beauty products.
And as more people learn about the health benefits of CBD, the more commonplace it will become.
"This is a miracle plant, and it should be treasured and not misunderstood," says That Glass Jar's Money, whose topical cream has become a big hit with people looking for CBD-assisted therapeutic relief.
"Products like our cream are going to be a big part of the future of the medical marijuana business and we're excited to be at the forefront."