Harambee Saccco CEO bets bigly on a bold turnaround plan

The last couple of years have been a challenging period for Savings and Credit Co-Operative industry. But Dr. George Ochiri (Pictured), the Chief executive of Harambee Sacco, acknowledges that his company needs to become nimbler if it wants to adapt well to future challenges.

“Turning around an organization such as this means more than improving the numbers. Declining membership, slumping profit margins, negative cash flow, and rising debt levels are just some of those challenges.

And these are symptoms of a company that has gotten off track. I am here to help restore that lost glory. We will therefore embark on value-based leadership and put right policies in place,” he opens up during an interview in his office.

Dr. Ochiri who took the reins of the once largest Sacco in the country in terms of membership and assets six months ago, is a buoyant 43-year old Doctor of Philosophy (PhD) holder in Supply Chain Management and whose passion to flourish under challenging conditions, is unrivaled.

“When I took over this position I was aware of the challenges lying ahead. And we have started by putting in place tough decisions and workable policies that we believe if acceptably implemented, will go along aware in turning around the fortunes of Harambee Sacco,” affirms the father of two whose first leadership role began at a publishing firm, Longhorn Publishers as an accountant before later moving on to become the company’s in-house Sacco treasurer.

“It is where I took keen interest in Sacco management.”

With his past experience in several Saccos including Kimbo and Maisha Bora Saccos, Ochiri, also a Masters’ holder in Procurement and Logistics from Jomo Kenyatta University of Agriculture and Technology (JKUAT), believes he has the right requisite to guide Harambee Sacco back to profitability and a household name it once was.

Harambee Sacco is currently ranked fourth largest deposit-taking firm behind Kenya Police Sacco, Mwalimu and Stima Investment Saccos, and fast emerging as a startling turnaround, having already generated straight working policies since Ochiri took over.

“We have seen some of the policies we are putting in place bearing fruits. Such as tightening financial control, reconciliation of ledger accounts which we undertook between November and December last year, we also had to bring on board data analysts to help us with that, among others,” acknowledges the former Safaricom Sacco chief executive who in just under seven years oversaw the firms’ membership swell from 2,000 members to in excess of 12,000 upon his departure last year.

Some of those policies and decisions, he says have not only been excruciating but also necessary under the company’s commitments in its bold turnaround plan to get out of the current severe situation.

Various of the uncomfortable resolutions involved staff rationalization and suspension of about 16 top officials in various departments that had been found culpable of mismanagement and outright graft and in their roles Ochiri says younger and fresher employees have been brought on board in various departments as heads in a move he said is meant to instill professionalism in the running of the Sacco that holds over Sh20 billion in deposits.

“We are determined to bring on board younger employees and most importantly invest in innovation and ICT. Actually the plan is to ensure that our members will be receiving their dividends through their mobile phones and we plan to make this mandatory in three years’ time,” he says, adding that the company will soon embark on a rebranding and marketing exercise in an effort to help change the negative perception that had held back its growth.

Harambee Sacco’s membership has been declining over the years with the number at 92,000 at the end of 2017, most of whom are current and former civil servants. Today the Sacco has a membership of 77,000 from 120,000 a few years ago, but its new CEO understands why.

“This can be explained by the fact that there has been less recruiting into the forces by the national government while the number of our youth joining the Kenya Defence Forces (KDF) has also been lessened. The merger of police forces into the National Police Service Commission can also explain this,” he says.

Also on the cards include Voluntary Early Retirement (VER) program which seeks to offer aging officials an early send-off package, but it is subject to Board’s approval. The program is targeting up to 20 employees most of whom are in their later years of employment.

The company has also embarked on an ambitious but tedious process of identifying its assets that include a prime land in Kisumu and prime properties in Mombasa as well as other properties in Nairobi for sale to be converted into cash.

“But we are not selling our plaza in Nairobi where our offices sit, this is a profitable one, in fact it is fully occupied,” he affirmed, adding that the company will also embark on non-funded income projects to boost its revenues with several partnerships already in the offing.

“We will also be looking to refurbish our branches. We want to be a customer-driven company and to be a reference Sacco,” concludes a die-hard Arsenal Football Club fanatic.

About Dr. George Ochiri

1. Age: 43 years
2. Marital Status: Married with two children

3: Faith: Catholic Christian.  -Favourite Quote “Do it unto the Glory of God”

4: Education: Masters, PhD holder Procurement, Logistics and Supply Chain Management, Alumni of JKUAT

5: Former Employers: Longhorn Publishers, Kimbo Sacco, Maisha Bora Sacco and Safaricom Sacco

6. Legacy plan: To make Harambee Sacco a Kes100B worth of business upon his departure