What you need:
paper tubes, e.g. from toilet roll,
Put the tubes next to each other.
Staple the tubes together at both rims.
The tubes do not have to be equal in
The more tubes you staple together, the more stable the pencil holder will become.
Glue the tubes onto a piece of cardboard...
...which is large enough to cover all tubes.
Glue coloured paper onto the sides of the tubes (or around all tubes at once).
You can use paper in a single colour or in various colours.
You can glue small other motifs to the rolls, too, e.g. flowers.