Ol-Kejuado

Dutch banker develops concrete action plan for survival savings & credit cooperative Kenya

 

About Ol-Kejuado

Ol-Kejuado is a savings & credit cooperative (SACCO) of teachers. It was developed 30 years ago with 200 teachers and now has 600 members representing 200 schools in the region. It has 500.000 euro of shared capital, savings of 80.000 euro, outstanding loans of 600.000 euro and it made an income of 45.000 euro in 2008. The SACCO manages savings and creates credit possibilities for its members who are all teachers. In Kenya, teachers also have extra jobs, and Ol-Kejuado loans are used for creating extra income, like small shops, house construction for rental purposes and small transport businesses. By creating a microfinance infrastructure, it helps the teacher population in the area to create extra income and stay in the region, which is good for educational programmes in this rural area.

 

Business case

The SACCO manager, Mr. John Charagu, also works with Oikocredit Kenya and the Kenyan banks K-Rep and the Kenya Commercial Bank and is very dedicated. However, due to a history of bad leadership, Ol-Kejuado faces cash flow problems and therefore, members are not met in their needs. Also, local competitors have accessed the region. John asked SharePeople for assistance and he was matched with Mr. Eduard Holtz, Senior Private Banker at MeesPierson. Ol-Kejuado asked Eduard for advice on its actual financial status and on how to improve that and its services to its actual members. It also asked him for a 5 year strategic plan on business development for new members and even for non-members.

 

Results

 

Analysis

Upon arrival, Eduard found a long term strategic plan which for Ol-Kejuado had been difficult to put into action. Therefore, Eduard made a more operational action plan which touched all the aspects of the SACCO. Besides doing the financial analysis and writing a scenario on how Ol-Kejuado can become profitable again, he also touched Operations, HRM and marketing & sales of the SACCO. To draw ‘the bigger picture' and to connect all aspects together was new for the SACCO's management.

 

 

Advice

Eduard, the SACCO's management and major stakeholder Oikocredit Kenya discussed what had to be the next steps. Amongst the advice are concrete steps on how to improve the financial situation and to first focus on improving the running business instead of starting new offices. Also, Eduard showed some easy steps to have quick results in marketing with ideas on members attraction.

 

Impact on the partners

The long term impact of the programme will be measured in August 2009, 6 months after Eduard has advised Ol-Kejuado. Short term impact is that Ol-Kejuado has found a financial way out. Besides the financial improvement, the SACCO has an action plan on how to grow.

 

‘It is a great experience allowing you to go to the roots of development aid and in that circumstance better understand the ins and outs of development work taking into account the unique local environment.' (Eduard Holtz, MeesPierson)

 

‘Eduard has the insight and ability to link all aspect of organization operations. He came up with projection which showed how actions today can either bring the SACCO down or up in the future. He was able to link small steps to the big picture.' (Elikanah Kiairie Nganga, Oikocredit Kenya)

 

‘I learnt from the expert that a good strategic business plan means nothing to organizations unless they are linked to simple action plans which the organization can follow to meet strategic plans.' (Elikanah Kiairie Nganga, Oikocredit Kenya)

 

 

Follow up

The whole action plan was presented to the Annual General Meeting in May 2009 by the SACCO's management to be able to pursue with all actions. Oikocredit Kenya will be involved as potential financial partner to provide Ol-Kejuado with new working capital. Later on this year we expect to know if all members agree and what steps will be taken.

 

Click here for the weblog 'Expert Programme Eduard Holtz'