INTERVIEW BY GEORGE GICHUKI
Ruth Kinyanjui is not your ordinary lady. She is not your ordinary entrepreneur either. Articulate, calm and collected, engaging and amiable, she is a renowned media personality. Ruth analyses trending business and economic issues for mainstream television stations in Kenya with ease. Facts and figures are her stock in trade. A Certified Public Accountant of Kenya (CPA-K), Ruth holds an undergraduate degree in finance ( B.Com – Finance option) and a Master of Business Administration ( MBA) in strategic management. As a matter of fact, she is well grounded professionally. You get to learn that when you have a one-on-one conversation with her; especially on how to make money ethically. And we all love making lots and lots of money. Don’t we?
Eight years ago, she got tired of living behind the curtains. She opened a new chapter in her career. She has christened it : ‘Daring Greatly.’Before then, Ruth had successfully honed her skills in finance as an employee of Big four audit firms – PwC, KPMG and PKF. But with time, she realized that ‘counting beans’ as it were was not ‘her thing.’ In her own words: “It was very monotonous.” She opted instead to be a front liner in the world business. A new space where she could use her experience and expertise in audit, as well as her ‘bubbly’ personality to turnaround financial institutions. Making them agile, profitable and solid. Ascension Investments – the finance and strategy consultancy firm that she set up – has carved a niche in the savings and credit co-operative societies sub sector by guiding players to digitalize and strengthen their corporate governance. Her goal is to help clients achieve growth, optimization and operational efficiency. Though a rigorous exercise, she is happy to note that it has borne fruits for the clients she passionately serves.
How were you able to transition from audit to financial consultancy?
I really enjoyed working as an auditor but at some point, it got a bit monotonous. Audit is regulated and you have to play by the rules. I was actually pushed a lot into the technical accounting space. However, anyone who has interacted with me knows that I am outgoing. I am bubbly, you know. Therefore naturally, I am more of a marketer or a business developer and I enjoy holding meetings and making presentations to clients.
As much as I would have wanted to stay behind the scenes as an auditor, I am productive in consultancy. Audit helped me to lay a firm foundation for my new career path. For instance, the skills that I employed to do gap analysis in audit have come in handy while identifying capacity building gaps in the organizations that I serve today. In the same breath, I am really thankful to one of my former employees who helped me to appreciate that organizational strategy is cascaded from the top leadership to the junior staff. That way, all employees in that organization – irrespective of their ranks – were really motivated. It was all hands in deck. All of us were happy to work in that organization.
Bearing that in mind, my work today, especially with Saccos, is to make sure that the motivation of the junior and senior employees, board members and all stakeholders is very high. Consequently, everyone in the organization is motivated to serve to the best of his or her ability. Productivity is enhanced and the organization achieves faster growth. In a nutshell, the most valuable assets for organizations are people.
Which services are offered by Ascension Investments Limited?
We largely focus on digital-driven corporate strategies. This is because in the financial services space, there is a lot of information and data. So, we analyze the data to ensure that it’s communicating and it’s in line with the corporate strategy. After analysis, we are able to understand the organization’s history, its current status and road ahead. This information should be aligned to its strategy. Should there be any gaps, we are able to identify them and come up with the necessary solutions. Our interventions are data driven.
Indeed, data –driven strategies help players in the financial sector to achieve growth across various parameters. The information we gather helps us in other outputs of the strategic process. These outputs include: the marketing pricing and positioning strategy as well as the digital transformation strategy. We develop strategies that meet the specific needs of different departments in an organization. After that, we ensure that the corporate strategy developed is aligned to its procedures and policies. That is the best practice in all forward looking organizations.
We also give input on branding. At times, a brand maybe outdated hence requiring to be refreshed or even rebranded. Moreover, we ensure that organizations are keeping pace with market trends including: artificial intelligence (AI) and business intelligence (BI). Finally, we offer capacity building to our clients (mainly Saccos), involving their board members and staff, and we ensure that it is aligned with their respective strategies.
Share with us your experience in serving Saccos for the last eight years?
It is eight years now since 2018 when I left a big four audit firm to offer my knowledge and professional experience to Saccos. Within that period, I’ve seen actual growth… indeed a lot of growth and acceptance of Saccos in Kenya. But in my view, this is just a tip of the iceberg. There is a huge market for Saccos which hasn’t been tapped.
From my economic analysis, I have established that micro, small and medium enterprises (MSMEs) are the engines of Kenya’s economy. MSMEs operate throughout the country, across diverse sectors and provide employment opportunities to millions of Kenyans directly and indirectly. Unfortunately, a good number of them operate informally, hence missing a lot of financing and growth oriented opportunities.
Many Saccos in Kenya support MSMEs to achieve their goals by offering them innovative financial solutions. By assisting Saccos to build their capacity, I feel that I am also part and parcel of their journey with MSMEs. That experience (transforming the lives of micro-entrepreneurs) has been very amazing for me.
I am really delighted whenever a Sacco I am working with achieves growth. Some are able to achieve incremental growth year on year. But even the ones who are not able to attain such growth, it gives me a lot of satisfaction when I support them in getting to the next level.
In the last eight years, I have noted that the financial services space in Kenya is becoming efficient. With a steady growth of 15 % to 20% annually. This growth is reflected in the dividends and rebates their members have been receiving year on year.
What makes Ascension Investments Limited to stand out in a market that is characterized by cut throat competition?
We have a competitive edge because of offering personalized and customized products and services to our clients. In essence, we take into consideration that each Sacco has its unique qualities. For instance, their clientele base is different, and often, they operate from different geographical regions of the country. Additionally, the board and management teams of Saccos are unique. We therefore don’t have ‘a one-size-fits-all’ product or service for them.
Indeed, whereas some Saccos have clear goals which are aligned to their strategies at the beginning of every financial year, others need a lot of support. Ascension’s role in this case is to guide these organizations (irrespective of their size) so that they can realize their full potential.
What is your flagship product?
I would say executive training. Information is power. Knowledge is also power. Once equipped with the necessary knowledge and information, people in leadership positions are able to drive strategy and this takes their respective organizations to a higher level. The strategic journey makes all the difference in organizations and this is highly dependent on how knowledgeable and informed their leaders are.
I get a lot of satisfaction when I see organizations whose leaders I have trained achieving growth. Actually, some have literally doubled in size within a span of four to eight years depending on the period I have trained them. That is quite amazing! As a rule of thumb, I totally believe in people and the organizations that they serve. This motivates me to share knowledge and information with them, whenever I am called upon.
What motivates you to hold executive training sessions in other parts of the world; for instance Malaysia?
There is power in exposure. I remember one of my employers really exposed me to the world. He gave me an opportunity to train executives in other parts of the world; the first country to do so being Dubai. When leaders experience fast hand what is going on in other countries, their mindsets shift.
More importantly, I have established from experience that people are very attentive when being trained in foreign countries. They don’t step out of sessions for instance to take or make calls which is a very disruptive habit locally. During these trips, people learn more about the economies of other countries, their financial sectors as well as culture. This makes leaders to think big and critically, besides appreciating the fact that they can also grow their organizations to very high levels. In the second of April this year, we are taking Sacco leaders to South Africa for executive training, while last year, we went to Dubai.
In my community, an adage goes that those who don’t travel widely presume that their mothers are the best cooks. By travelling widely, leaders appreciate how their peers in the rest world are able to establish big organizations, with cutting edge technology and solid strategies. This challenges them to do likewise once they come back to Kenya.
How does corporate governance help organizations to achieve their goals?
I am thankful that currently, I am sitting in the boards of a tier one Sacco and a commercial bank. Previously, I have also served in a board of a microfinance institution. Governance helps organizations to anchor their visions and missions in solid strategies. Mission guides people in their day to day activities. Vision on the other hand reminds them about their history, current status and road ahead. Even as organizations embrace their missions and visions, it is important for them to play by the rules; that is where sound corporate governance comes in handy. In a nutshell, organizations should not have blurry visions, they should document their strategic plans, while always remembering that if they are not properly governed, then they cannot achieve their goals.
What role does strategic management play in the overall growth of organizations?
Being strategic is being intentional. At a personal level, it helps individuals to have awareness. If for instance you have planned to travel to Nakuru from Nairobi and arrive at 8.00 am, then you need to start your journey as early as 5.00 am. Awareness helps you to be strategic while planning such a trip. Against this background, forward looking organizations are aware that they are not the only players in a certain business field. They therefore come up with strategies in order to have an edge over the competition. This helps them to be ahead of the pack. In business, you need to be aware of the things that will push you ahead of the competition, and continuously work towards achieving them strategically.
As a business leader or an organization, being strategic doesn’t mean you must overwork. On the contrary, it means identifying and working on a few things that will give you a mark or advantage in your area of operation. That is your purpose and it gives you an identity at the marketplace. Ultimately, this boils down to your objectives or core values.
Do you think business development and marketing should be viewed as an expense by organizations?
One of my former employers once told me that growth is the best thing an individual or organization can experience. The foundation of business and marketing is trust. Building trust is a process. We do business with the people that we like and trust. Unfortunately in our society, trust is taken for granted. Once clients trust you, they build confidence in you because they know you cannot let them down. Consequently, they give you repeat business. Therefore, even as organizations budget for marketing and business development (which is a very critical exercise), for this effort to bear fruits, it should be anchored on trust.
The Sacco market in Kenya for instance is very small. Players know one another. Therefore, if you shortchange one of them as a service provider or supplier, that information is bound to spread. Therefore, this market will lose trust and confidence in you. Ultimately, you will lose business.
Why have Saccos in Kenya embraced digitilization?
I think the digital transformation conversation is imperative right now. Look at the generation that we have, for example, in Kenya. Everyone is digitalized you know!
The young people actually do not want the traditional products and services offered by Saccos and other players in the financial sector. They are looking for easier ways to save and access their money. This defines the products that are being developed by Saccos – they are largely digital. This applies also to the Saccos established decades ago and with an elderly membership. By and large, the traditional way of doing business has been disrupted by technology.
We support Saccos to develop their digital transformation strategy by first and foremost, conducting gap analysis. By so doing, we are able to establish whether a particular Sacco is keeping pace with the market trends in so far as digitilizationis concerned. Those left behind in this journey face the risk of losing a huge chunk of their market share. Therefore, no resources should be spared in ensuring that all Saccos in Kenya are fully digital.
As a member of several Saccos for instance, I am able to conveniently access funds via my mobile phone to meet my emergency needs. This has been made possible by digitilization.
How do you support Saccos in their brand building process? Brand building is a key component in strategic documents. That is where the implementation matrix is defined. You cannot sell a brand that you don’t believe in. Equally important, your brand should resonate with your target market. There is no way you can sell a mango effectively when you are passionate about selling oranges. You have to believe in a mango in order to sell it.
Over time, the tastes and preferences of your customers change. You therefore need to refresh your brand or carry out a rebranding exercise altogether. But even as you do that, you need to rely on the feedback of your customers. That is why investing in market research is critical.
In a nutshell, what are the ‘must do’ things for Saccos in Kenya?
One of the most important things that Saccos should do is to communicate regularly and clearly with their members. Even as they market themselves to prospective members, they should not stop engaging the ones already on board. Indeed, one of the seven principles of co-operatives – education, training and information- lays emphasis on the need of Sacco management teams to keep members informed about their performance, products and services as well as other trends in the co-operative movement. Secondly, they should embrace digitalization, while mitigating its risks (cyber security threat). Thirdly, they should comply with all the regulations that the government has put in place.
Saccos should also empower their staff members through regular training. By the same token, they also need to conduct market research regularly in order to understand their operating environment (both micro and macro-economic). They should also put in place sound corporate governance structures.
You offer consultancy to Saccos when they are upgrading their systems. Based on that experience, which measures should Saccos put in place before embarking on that journey?
I do project management whenever a Sacco is planning to upgrade its system. The first step in this regard is ensuring that the audit of the previous system is up to date and everything is as per the balance stipulated. This stage should be properly audited and agreed by every stakeholder including the management, board and the new vendor. My role in this process is that of a prefect. I ensure that everyone involved in this process has delivered as per the contract.
Management consultancy is about supporting the interest of the organization. It is an oversight role. I ensure that all the vendors have delivered and the contract is favourable to my client. From my experience, some contracts can have a lot of gaps. They favour vendors more than the clients – who in this case are Saccos.
As the prefect, I ensure that no member has lost his or her funds in the entire process. I also ensure that all the regulations are adhered to. In this regard, a lot of sign offs are required. Once the process is complete, I am conduct a follow up audit to ensure that the system is up and running, and all the balances have been reconciled to the letter.
What are your views regarding the directive by Kenyan government that co-operatives with a membership of over 5,000 should embrace the delegate system of representation in general meetings?
It is very important to abide by regulations. The co-operative sector in Kenya is the most developed across the African continent and it therefore needs to be well regulated by the government. For instance, many people have deposited millions of shillings in Saccos and losing such money due to poor governance is suicidal. Having said that though, Rome was not built in a day. It is therefore important for the management of co-operatives affected by the new directive to guide and educate their members on why this change is necessary, and how it should be undertaken. The delegate system is normally approved in a resolution by members at an AGM. Members are bound to accept or reject it. At this point also, the government needs to understand that change of regulations takes time.
Do you have any other pertinent issue?
By and large, I am proud of working with Saccos because of their transformative agenda. They offer innovative financial solutions to people from all walks of life. As a firm believer and supporter of the MSMEs agenda in Kenya, given their pivotal role in our socio-economic development – I am glad that many players in that sector are Sacco members. MSMEs with time grow to SMEs, then to mid-corporates and ultimately they become corporates. This not only benefits their owners, but the government earns revenue through taxation.
I am therefore looking forward to the day when just like commercial banks, Saccos in Kenya will get a lot of support from the government – for instance through friendly regulations and laws- so that their role as engines of economic development can be enhanced. At the household level, I am very glad that Saccos are able to reach the unbanked people in the rural and far flung areas by offering them innovative financial solutions.
What is ‘the other side’ of Ruth ?
I love supporting the less privileged people, analyzing the economy during TV programmes, socializing, spending quality time with with my family and jogging. My day normally starts at 6.00 am. After preparing my children to go to school, i start my work at 8.00 am. I hold virtual or physical meetings with my clients up to 6.00 pm. After that, i either go to the gym or take an evening walk at Karura Forest. My favourite dish is githeri (maize mixed with beans). My favourite author on the other hand is Brene Brown who has inspired me as a woman leader to dare greatly. The other one is Susan Cain; from whom i have learnt that things are sweet at times, but they can also get bitter. Finally, my best book is Who Will Cry When You Die by Robin Sharma.
