Kimisitu Investment C O M P A N Y
L I M I T E D
ABRIDGED STRATEGIC PLAN
2018-2022
Table of Contents CHAPTER 1. -EXECUTIVE SUMMARY ................................................................................ 3 CHAPTER 2. -COMPANY’S VISION, MISSION & CORE VALUES ....................................... 5 2.1
VISION ................................................................................................. 5
2.2
MISSION STATEMENT.........................................................................
5
2.3
CORE VALUES ....................................................................................
5
2.4
SLOGAN (MOTTO)..............................................................................
5
CHAPTER 3. -STRATEGIC OBJECTIVES ...........................................................................
6
3.1
KEY PILLARS .....................................................................................
6
a)
Shareholders / Investors pillar ..........................................................
6
b)
Human Resource Pillar ......................................................................
6
c)
Financial Pillar ....................................................................................
6
d)
Systems, Infrastructure and Operations Pillar...................................
6
e)
Investments and Services Pillar ........................................................
6
f)
Leadership &Governance pillar .........................................................
6
g)
Social responsibility and Stakeholders Pillar ...................................
6
APPENDIX A: STATEMENT OF COMPREHENSIVE INCOME ANALYSIS ...........................
7
APPENDIX B: STATEMENT OF FINANCIAL POSITION ANALYSIS ....................................
8
List of Abbreviations and Acronyms CCIA ICT Kimisitu Invest PESTLE SWOT
Co-op Consultancy & Insurance Agency Information Communication Technology Kimisitu Investment Company Limited Political, Economic, Social, Legal & Ecological/ Environment Strengths, Weaknesses, Opportunities & Threats
Chapter 1. EXECUTIVE SUMMARY Kimisitu Investment Company Limited (Kimisitu Invest) was registered in August 2010 (No. CPR/2010/29248) under the company’s Act (Cap 486) of the laws of Kenya. It is a public limited company offering investment opportunities to the public. The main object of Kimisitu Invest is to take advantage of investment opportunities existing in the country with the ultimate goal of creating shareholder wealth. The company currently has 1,736 shareholders with a total share capital of Kes. 79.7 million and an asset base of over Kes.160 million. The company’s key investment is in real estate and money market. In order to achieve its vision and continue managing the future growth and performance of the company, the Board of Directors and senior members of staff met at Four Points by Sheraton Hotel, Hurlingham, on 19th January 2018 to document the strategic direction of the company for the next five years. The workshop was facilitated by Co-op Consultancy & Insurance Agency (CCIA). To develop the Strategic Plan, the participants analysed the environment in which the company is operating, from both internal and external perspectives. This was done using the Strengths, Weaknesses, Opportunities, Threats (SWOT) and Political, Economic, Social, Technological, Legal, Ecological (PESTLE) analysis tools. These focused on the company's internal strengths and weaknesses, and an external analysis on the opportunities and threats arising from the impact of political, environmental, social and technological issues. The company's Vision, Mission, Objectives, Strategies and Action Plans were formulated. The company intends to use the Strategic Plan as a guide and reference document to achieve its overall Mission and Vision. The objectives and strategies for achieving the Mission and Vision were formulated in seven key areas (Pillars), namely Shareholders /investors, Human Resource, Financial, Systems, infrastructure & Operations, Governance & Leadership, Investments & Services, and Social Responsibility and stakeholders. The action plans are to be used as a monitoring tool for the Plan.
Abridged Strategic Plan 2018-2022
3
THE KEY OBJECTIVES FOR THE COMPANY INCLUDE:
1. To have vibrant shareholders participating actively in the company’s projects and activities. 2. To grow our share capital to at least Kes. 200 million by 2022. 3. To efficiently use and grow our assets to at least Kes.450 million by 2022. 4. To expand and diversify the company’s investments for optimum returns. 5. To adopt emerging and cost-effective technology and continuously enhance the company’s risk management framework. The Strategic Plan also includes a highlight of the monitoring and review process, which helps to assess the progress made towards meeting stated objectives. This process gives feedback to the management and highlights potential problems, which can be addressed before the situation becomes critical, enabling timely corrective action. To ensure this, the Management will continuously discuss the Strategic Plan in its meetings as an agenda and demystify its importance to the shareholders and staff. The objectives and strategies for achieving the Mission and Vision were formulated in seven key areas (Pillars), namely Shareholders, Human Resource, Finance, Leadership & Governance, Products and Services, Operations, ICT & Infrastructure, Social Responsibility and Stakeholders. The participants further developed action plans for each of the objective to be used as a monitoring tool for the five-year Plan.
4 Abridged Strategic Plan 2018-2022
Chapter 2. COMPANY’S VISION, MISSION & CORE VALUES
2.1
Vision
“A leading investment vehicle for economic better life”
2.2
Mission Statement
“To contribute to sustainable wealth creation for our communities by pooling resources for sound, innovative and market-driven investment products that are professionally managed and offer optimum returns”
2.3
Core Values
A) INTEGRITY The Company shall always conduct its affairs in a manner that is above reproach. We are committed to acting at all times with honesty, fairness, ethically and without discrimination in all our operations. We inspire our clients to trust us by following our commitments. We are clear in our communication with both our clients and employees. B) PROFESSIONALISM The company strives to carry out all its duties with the highest level of proficiency, teamwork and dedication with a view to exceeding the expectations of our staff, customers and stakeholders. C) PASSION We are zealous at everything we do. We are committed to meeting our clients’ needs D) FREEDOM We need freedom to shape our future and wealth to remain free. We are dynamic and embrace innovation and resilience.
2.4
Slogan (Motto) “Your Umbrella in fair weather” Abridged Strategic Plan 2018-2022
5
Chapter 3. STRATEGIC OBJECTIVES
3.1
Key Pillars
The participants identified the following as the Key Pillars (areas) on which the Company is founded, and whose prudent management will ensure its success.
a) Shareholders / Investors pillar Objective 1. To have vibrant shareholders participating in the activities of the company. Objective 2. To retain and attract new shareholders to invest in the company shares
b) Human Resource Pillar Objective 1. To recruit, retain qualified and competent members of staff. Objective 2. To train, motivate and develop our Members of staff.
c) Financial Pillar Objective 1. To grow our share capital to Kes. 200million. Objective 2. To grow our profitability while maintaining financially sound company. Objective 3. To efficiently use and grow our assets to Kes. 450 million by 2022.
d) Systems, Infrastructure and Operations Pillar Objective 1. To adopt emerging and cost-effective technology and continuously enhance the company’s risk management framework.
e) Investments and Services Pillar Objective 1. To expand and diversify our investments for optimum returns. Objective 2. To enhance the company brand, marketing and communication
f) Leadership & Governance pillar Objective 1. To ensure the company has proactive and professional leadership.
g) Social responsibility and Stakeholders Pillar Objective 1. Institutionalise Corporate Social Responsibility. Objective 2. Establish sustainable Social responsibility projects.
6 Abridged Strategic Plan 2018-2022
24 18,997,323 6,183,193
Kimisitu Investment Company Limited- Strategic Plan 2018-2022 2012 ϮϬϭϮ 29% Ϯϵй 13% ϭϯй 2012 ϮϬϭϮ 29% Ϯϵй 13% ϭϯй 2012 ϮϬϭϮ 44% ϰϰй
2011 ϮϬϭϭ 65% ϲϱй 21% Ϯϭй 2011 ϮϬϭϭ 65% ϲϱй 21% Ϯϭй 2011 ϮϬϭϭ 33% ϯϯй
Year Operational expenses to Total expensesYear Operational expenses to Total expenses Operational expenses to Total income
Year Year Governance Expenses to Total Expenses Governance Expenses to Total Expenses Governance Expenses to Total Income Governance Expenses to Total Income
Year Year
APPENDIX B:
YEAR
Cost Income Ratio Cost Income Ratio
Operational expenses to Total income
2013 ϮϬϭϯ 51% ϱϭй
2013 ϮϬϭϯ 31% ϯϭй 16% ϭϲй
2013 ϮϬϭϯ 31% ϯϭй 16% ϭϲй
2013 ϮϬϭϯ 31% ϯϭй 16% ϭϲй
- ŗŚƖ -
15,940,15415,940,154 14%
5,186,110 -
5,047,934 5,186,110
5,186,110 5,047,934
6,238,699 5,186,110
ȱȱȱȱȱȱȱȱȱȱȱȱȱ ŗŜǰŚŝŘǰŝŚř 6,238,699
32,412,897 16,472,743
32,412,897 Kes.
Kes. 2013
2013
2011
2012
2013
2014
2015
9
2016 ϮϬϭϲ 68% ϲϴй
2016 ϮϬϭϲ 31% ϯϭй 21% Ϯϭй
2016 ϮϬϭϲ 31% ϯϭй 21% Ϯϭй
2016 ϮϬϭϲ 19% ϭϵй 13% ϭϯй
- ŗŖŞƖ - -
7,853,555 11,609,67211,609,672 108%
4,666,166 7,853,555
7,853,555 4,666,166
12,533,021 7,853,555
ȱȱȱȱȱȱȱȱȱ ŘśǰŖśŘǰŝŚŘ 12,533,021
36,662,414 25,052,742
36,662,414 Kes.
Kes. 2016
2016
2016
2015 ϮϬϭϱ 79% ϳϵй
2015 ϮϬϭϱ 38% ϯϴй 30% ϯϬй
2015 ϮϬϭϱ 38% ϯϴй 30% ϯϬй
2015 ϮϬϭϱ 20% ϮϬй 16% ϭϲй
- ȬřŜƖ - -
5,580,6955,580,695 -36%
8,079,936 -
4,327,471 8,079,936
8,079,936 4,327,471
8,879,191 8,079,936
ȱȱȱȱȱȱȱȱȱȱ ŘŗǰŘŞŜǰśşŞ 8,879,191
26,867,293 21,286,598
26,867,293 Kes.
Kes. 2015
2015
ANALYSIS
2014 ϮϬϭϰ 71% ϳϭй
2014 ϮϬϭϰ 38% ϯϴй 27% Ϯϳй
2014 ϮϬϭϰ 38% ϯϴй 27% Ϯϳй
2014 ϮϬϭϰ 26% Ϯϲй 18% ϭϴй
- ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȬ
- ȬŚŜƖ
8,686,7928,686,792 -46%
7,913,413 -
5,457,652 7,913,413
7,913,413 5,457,652
7,517,721 7,913,413
ȱȱȱȱȱȱȱȱ ŘŖǰŞŞŞǰŝŞŜ 7,517,721
29,575,578 20,888,786
29,575,578 Kes.
Kes. 2014
2014
Abridged Strategic Plan 2018-2022 STATEMENT OF FINANCIAL POSITION
2012 ϮϬϭϮ 42% ϰϮй 19% ϭϵй
2011 ϮϬϭϭ 23% Ϯϯй 7% ϳй
Year Staff Expenses to Total expendicture Year StaffExpenses ExpensestotoTotal Total expendicture Staff Income
Staff Expenses to Total Income
- şƖ -
13,980,93713,980,937 9%
12,814,130 12,814,130
-
3,188,953 -
4,657,272 3,188,953
3,188,953 4,657,272
3,184,300 3,188,953
-
GROWTH Interest Members deposit Interest Members deposit Dividends Dividends
25,011,462 11,030,525 ȱȱȱȱȱȱȱȱ ŗŗǰŖřŖǰśŘś 3,184,300
4,015,987 -
1,423,792 4,015,987
Staff Expenses Expenses Operation/admi
Operation/admi Expenses
743,414 4,015,987 4,015,987 1,423,792
Governance Staff ExpensesExpenses
ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ743,414 ŜǰŗŞřǰŗşř
25,011,462 Kes.
Kes. 2012
Kes. 2011 18,997,323 Kes.
2012
2011
Financial Expe-interest+bank charges Governance Expenses
Profit /Loss Profit /Loss GROWTH
APPENDIX A:
Kimisitu Investment Company Limited- Strategic Plan 2018-2022
SAPPENDIX T A T E M E A: N TSTATEMENT O F C O M POF R ECOMPREHENSIVE HENSIVE INCO M E A NANALYSIS A LY S I S INCOME
EXPENDITURE Financial Expe-interest+bank charges
INCOME EXPENDITURE
INCOME
YEAR
YEAR
1
Rentained earnings Rentained earnings Share Premium Share Premium
WORKING CAPITAL WORKING CAPITAL TOTAL ASSETS TOTAL ASSETS
Proposed dividend Proposed dividend Tax payable Tax payable
CURRENT LIABILITIES CURRENT LIABILITIES Trade & other Payables Trade & other Payables
Trade & other receivables Trade & other receivables bank Balances CashCash and and bank Balances
CURRENT ASSETS CURRENT ASSETS Inventory, Prepayment Inventory, Prepayment
Intangible assetoperating software Intangible assetoperating software
current Assets Non Non current Assets heldheld for for salesale Investment Property Investment Property
FIXED ASSETS FIXED ASSETS Non current Assets Non current Assets
Year
2011 33%
APPENDIX B:
2012 44%
2013 51%
2014 71%
ȱȱȱȱȱȱ97,969,560 şŝǰşŜşǰśŜŖ 65,796,193 ȱȱȱȱȱȱŜśǰŝşŜǰŗşř
2013 2013 Kes. Kes.
59,852,445 59,852,445 117,027,042 117,027,042
ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ9,572 şǰśŝŘ ȱȱȱȱȱȱȱȱȱȱȱȱ963,734 şŜřǰŝřŚ
ȱȱȱȱȱȱ19,057,482 ŗşǰŖśŝǰŚŞŘ ȱȱȱȱȱȱ18,084,176 ŗŞǰŖŞŚǰŗŝŜ
ȱȱȱȱȱȱ27,475,303 ŘŝǰŚŝśǰřŖř ȱȱȱȱȱȱ51,434,624 śŗǰŚřŚǰŜŘŚ
ȱȱȱȱȱȱ78,909,927 ŝŞǰşŖşǰşŘŝ
Abridged Strategic Plan 2018-2022
3,296,897 ȱȱȱȱȱȱȱȱȱȱȱȱŘǰşŗŖǰŖŝŚ 2,910,074 ȱȱȱȱȱȱȱřǰŘşŜǰŞşŝ 36,140,611 56,245,578 36,140,611 56,245,578 48,763,408 76,006,127 48,763,408 76,006,127
12,520,180 ȱȱȱȱȱȱȱȱȱŗŜǰřŝŞǰŖśř 16,378,053 ȱȱȱȱŗŘǰśŘŖǰŗŞŖ 5,578,829 7,384,531 ȱȱȱȱȱȱȱśǰśŝŞǰŞŘş ȱȱȱȱȱȱȱȱȱȱȱȱŝǰřŞŚǰśřŗ 3,644,454 6,083,448 ȱȱȱȱȱȱȱřǰŜŚŚǰŚśŚ ȱȱȱȱȱȱȱȱȱȱȱȱŜǰŖŞřǰŚŚŞ
3,284,288 ȱȱȱȱȱȱȱȱȱŘŘǰŚřŞǰŖŞŗ 22,438,081 ȱȱȱȱȱȱȱřǰŘŞŚǰŘŞŞ 44,884,026 ȱȱȱȱȱȱȱȱȱśŖǰŗŞśǰśśŖ 50,185,550 ȱȱȱȱŚŚǰŞŞŚǰŖŘŜ
48,660,791 ȱȱȱȱȱȱȱȱȱŝŘǰŜŘřǰŜřŗ 72,623,631 ȱȱȱȱŚŞǰŜŜŖǰŝşŗ 492,477 ȱȱȱȱȱȱȱȱȱȱŚşŘǰŚŝŝ
2,961,631 32,482,542 Ϯ͕ϵϲϭ͕ϲϯϭ ϯϮ͕ϰϴϮ͕ϱϰϮ
ȱȱȱȱȱȱ19,095,201 ŗşǰŖşśǰŘŖŗ 4,593,203 ȱȱȱȱȱȱȱȱȱȱȱȱŚǰśşřǰŘŖř ȱȱȱȱȱȱ13,078,166 ŗřǰŖŝŞǰŗŜŜ 102,617 ȱȱȱȱȱȱȱȱȱȱȱȱřǰřŞŘǰŚşŜ 3,382,496 ȱȱȱȱȱȱ38,117,115 ȱȱȱȱȱȱȱȱȱȱŗŖŘǰŜŗŝ řŞǰŗŗŝǰŗŗś 102,617 420,865 ȱȱȱȱȱȱȱȱȱȱŗŖŘǰŜŗŝ ϰϮϬ͕ϴϲϱ 5,634,573 ϱ͕ϲϯϰ͕ϱϳϯ
2012 2012 Kes. Kes.
36,243,229 ȱȱȱȱȱȱȱȱȱśşǰŜŘŞǰŖŝŚ 59,628,074 ȱȱȱȱřŜǰŘŚřǰŘŘş 30,370,450 47,214,370 ȱȱȱȱřŖǰřŝŖǰŚśŖ ȱȱȱȱȱȱȱȱȱŚŝǰŘŗŚǰřŝŖ 5,872,779 7,820,501 ȱȱȱȱȱȱȱśǰŞŝŘǰŝŝş ȱȱȱȱȱȱȱȱȱȱȱȱŝǰŞŘŖǰśŖŗ
2011 2011 Kes. Kes.
30,136,915 30,136,915 103,167,315 103,167,315
2,690 ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ ŘǰŜşŖ - Ȭ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ
11,235,605 ȱȱȱȱȱȱ ŗŗǰŘřśǰŜŖś 11,232,915 ȱȱȱȱȱȱ ŗŗǰŘřŘǰşŗś
28,490,946 ȱȱȱȱȱȱ ŘŞǰŚşŖǰşŚŜ 10,007,435 ȱȱȱȱȱȱ ŗŖǰŖŖŝǰŚřś
41,372,520 ȱȱȱȱȱȱ ŚŗǰřŝŘǰśŘŖ 2,874,139 ȱȱȱȱȱȱȱȱȱ ŘǰŞŝŚǰŗřş
1,420,248 ϭ͕ϰϮϬ͕Ϯϰϴ 60,374,547 ϲϬ͕ϯϳϰ͕ϱϰϳ
61,794,795 ȱȱȱȱȱȱ ŜŗǰŝşŚǰŝşś
15,095,695 ȱȱȱȱȱȱ ŗśǰŖşśǰŜşś 13,576,349 ȱȱȱȱȱȱ ŗřǰśŝŜǰřŚş
94,990,522 ȱȱȱȱȱȱ şŚǰşşŖǰśŘŘ 66,318,478 ȱȱȱȱȱȱŜŜǰřŗŞǰŚŝŞ
2014 2014 Kes. Kes.
2015 79%
ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ Ȭ 2,188,734 ȱȱȱȱȱȱȱȱȱȱ ŘǰŗŞŞǰŝřŚ
51,220,226 ȱȱȱȱȱȱȱȱ śŗǰŘŘŖǰŘŘŜ 49,031,492 ȱȱȱȱȱȱȱȱ ŚşǰŖřŗǰŚşŘ
31,439,909 ȱȱȱȱȱȱȱȱ řŗǰŚřşǰşŖş 36,746,311 ȱȱȱȱȱȱȱȱ řŜǰŝŚŜǰřŗŗ
70,080,910 ȱȱȱȱȱȱȱȱ ŝŖǰŖŞŖǰşŗŖ 1,894,690 ȱȱȱȱȱȱȱȱȱȱ ŗǰŞşŚǰŜşŖ
25,221,387 25,221,387 18,860,684 18,860,684 112,216,324 112,216,324 158,751,626 158,751,626
- Ȭ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ - Ȭ ȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱȱ
27,516,026 ȱȱȱȱȱȱȱȱ ŘŝǰśŗŜǰŖŘŜ 27,516,026 ȱȱȱȱȱȱȱȱ ŘŝǰśŗŜǰŖŘŜ
15,648,996 ȱȱȱȱȱȱȱȱ ŗśǰŜŚŞǰşşŜ 34,027,596 ȱȱȱȱȱȱȱȱ řŚǰŖŘŝǰśşŜ
52,737,413 ȱȱȱȱȱȱȱȱ śŘǰŝřŝǰŚŗř 3,060,821 ȱȱȱȱȱȱȱȱȱȱ řǰŖŜŖǰŞŘŗ
3,218,765 2,562,678 ϯ͕Ϯϭϴ͕ϳϲϱ Ϯ͕ϱϲϮ͕ϲϳϴ 53,838,201 82,156,687 ϱϯ͕ϴϯϴ͕ϮϬϭ ϴϮ͕ϭϱϲ͕ϲϴϳ 2,421,945 2,421,945 Ϯ͕ϰϮϭ͕ϵϰϱ Ϯ͕ϰϮϭ͕ϵϰϱ 1,529,406 ϭ͕ϱϮϵ͕ϰϬϲ
13,553,753 ȱȱȱȱȱȱȱȱ ŗřǰśśřǰŝśř 59,478,911 ȱȱȱȱȱȱȱȱ śşǰŚŝŞǰşŗŗ
19,501,791 ȱȱȱȱȱȱȱȱ ŗşǰśŖŗǰŝşŗ 88,670,716 ȱȱȱȱȱȱȱȱ ŞŞǰŜŝŖǰŝŗŜ
2016 2016
2016 68%
86,994,407 ȱȱȱȱȱȱȱȱ ŞŜǰşşŚǰŚŖŝ 107,531,400 ȱȱȱȱȱŗŖŝǰśřŗǰŚŖŖ 66,447,350 79,733,180 ȱȱȱȱȱȱȱȱŜŜǰŚŚŝǰřśŖ ȱȱȱȱȱȱȱȱ ŝşǰŝřřǰŗŞŖ 6,993,304 8,296,429 ȱȱȱȱȱȱȱȱȱȱŜǰşşřǰřŖŚ ȱȱȱȱȱȱȱȱȱȱ ŞǰŘşŜǰŚŘş
2015 2015 Kes. Kes.
APPENDIX B: STATEMENT OF FINANCIAL POSITION ANALYSIS STATEMENT OF FINANCIAL POSITION ANALYSIS
YEAR YEAR
Cost Income Ratio
SHAREHOLDERS FUNDS SHAREHOLDERS FUNDS Share capital Share capital
1
Kimisitu Investment C O M P A N Y
L I M I T E D
Kimisitu Investment Company Limited Woodlands Court No. 10, P.O. Box 37159-00200 Nairobi, Kenya Tel: 0715 047 065, info@kimisituinvest.co.ke www.kimisituinvest.co.ke
Kimisitu Investment C O M P A N Y
Kimisitu Investment Company Limited Woodlands Court No. 10, P.O. Box 37159-00200 Nairobi, Kenya Tel: 0715 047 065, info@kimisituinvest.co.ke www.kimisituinvest.co.ke
L I M I T E D
ABRIDGED STRATEGIC PLAN
2018-2022