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Hariet W. Masai

View Park Towers, Utalii Lane, th 17 Floor, Wing C, Suite 402 P.O. Box 41364 - 00100, Nairobi Email: Cell: +254 722 663 953



MAR - APR 2019 | KSh 150

NewFortis maintains top form despite the tough sociopolitical challenges experienced in 2018 Ollin asset value hits Ksh 4.5 billion as members benefit from education program New Fortis Sacco Chairman John Githinji










Hariet W. Masai

View Park Towers, Utalii Lane, 17th Floor, Wing C, Suite 402 P.O. Box 41364 - 00100, Nairobi Email: Cell: +254 722 663 953



MAR - APR 2019 | KSh 150

NewFortis maintains top form despite the tough socio-political challenges experienced in 2018

Joan Mutindi Marketing Executive

Kampus Towers, 1st floor, University Way P.O. Box 19 - 00100. Nairobi Tel: 0720 380 226 / 0724 172 670 Email:,

Ollin asset value hits Ksh 4.5 billion as members benefit from education program



JOAN MUTINDI Marketing Executive

Kampus Towers, 1st floor, University Way P.O. Box 19 - 00100. Nairobi Tel: 0720 380 226 / 0724 172 670 Email:,

New Fortis Sacco Chairman John Githinji




JOAN MUTINDI Marketing Executive Kampus Towers, 1st floor, University Way P.O. Box 19 - 00100. Nairobi Tel: 0720 380 226 / 0724 172 670 Email:,

CHIEF EXECUTIVE OFFICER Joan Mutindi EDITOR-IN-CHIEF Reinhard Mosagwe EDITOR Malachi Motano STAFF WRITERS Micah Sali, Fredrick Weyimi, John Mwangi, Daniel Ocharo, Irene Atieno, Kipkoech Chirchir, Kephas Ayiecha, Dickson Odhiambo, Robert Ocharo. Austin Nyambuoro, Lillian Mutiso, Charles Were, Vincent Munga, Alexander Kimuri, Grace Makovu Anthony Mwachiro, Malachi Motano, Kevin Ng’ang’a

NewFortis maintains top form despite the tough socio-political challenges Government drafts new policy to safeguard Sacco members’ savings Tower Sacco registers remarkable 36 percent growth Mombasa Port Sacco positions itself to harness more from SGR Hope for Kakamega women after relaunch of low interest Sacco Ollin asset value hits Ksh 4.5 billion as members benefit

SALES & ADVERTISING Sylvia Shinyanzwa, Caro, James Mbugua, Jane Mueni, John Mwangi, Margaret Ndanu Martha Wanjiru

Boresha Sacco flexes muscles to become a financial service provider Government is hunting down officials who misuse Sacco savings Ndege Chai Sacco enlarges its territories with record performance Lengo Sacco to recruit new members in Mtwapa and Mariakani

DESIGN AND LAYOUT: Smartex Creative Graffix Email: Tel: +254 786 765 092

Mentor Sacco records15.2 percent growth in income interest

6 10 12 17 19 20 22 25 26 29 32

34 38 Thamani Sacco proves the best financial services provider in Tharaka Nithi 42 Court bars Commissioner from appointing new Ekeza Sacco management 46 UTS Traders Sacco opens a new branch in Mlolongo

Motivated by good results, Kitui Teachers Sacco enters 2019 with a bang

SUBSCRIPTION Major Capital Agencies Limited DISTRIBUTION AND CIRCULATION JETsam Distribution Limited PUBLISHED BY: Satimes East Africa Ltd View Park Towers, Utalii Lane 17th Floor, Wing C Suite 402 P. O Box 41364 - 00100, Nairobi Cell +254724172670 / 0720380226 Email: Website:

S Hariet W. Masai


View Park Towers, Utalii Lane, th 17 Floor, Wing C, Suite 402 P.O. Box 41364 - 00100, Nairobi Email: Cell: +254 722 663 953





“The satisfaction, patronage and the support our members have continued to enjoy from our Sacco is a clear manifestation of the great achievement we have register consistently over a long period of time. I urge all of you to invest more energy towards realization of greater achievements,” says John Githinji -Sacco chairman.

Dear Reader,


elcome to our first edition of the Sacco Times Magazine for the year 2019. We continue to give a detailed analysis of emerging trends in the cooperative sector. Our editorial team gave sharp focus to the Annual and Delegates meeting (ADMs and AGMs). According to the Sacco Calendar, most Sacco conduct their AGMs and ADMs in the first quarter of the year.Our main highlight is NewFortis (formerly Nyeri Teachers). Despite of the fair social and political challenges witnessed locally and even internationally in 2018, the former Nyeri Teachers Sacco was able to wade through, registering an improvement in the business.All these has been attributed to the prudent leadership of the Sacco, members support and resilience.



We also featured Tower Sacco which continues to record positive results, with the total income increasing by Ksh. 322,053,214 million to Ksh. 1,230,241128 billion as at December 31, 2018, a 36 per cent growth compared to December 2017. “This is the first time in the history of our Sacco that we have realized a turnover of over one billion shillings,” says the Sacco chairman John Gitundu. Ollin Sacco kicked off 2019 with a unique education program to its members, which according to the CEO John Gathige, will remain to be an exclusive venture and could set pace for other industry players. This is just but the highlight of some of the must read stories we have for you. Grab your copy. Thanks, Enjoy your reading


Affordable housing is still a dream say Saccos By Charles were.


ffordable housing is still a mirage to most Kenyans due to high interests rates, hidden charges in mortgage schemes and inadequate funding according to Savings and credit cooperatives (saccos). Although Saccos have the potential to contribute in the realization of the low housing agenda, there are several challenges facing the industry the Kenya Union of Savings and Credit Co-operatives Ltd (Kuscco) national chairman George Magutu said. While presiding over the 4th Sacco leaders’ convention at Pride Inn Paradise Hotel in Mombasa he added that the

cost of property is too high for the low-middle income segment of the population, As a result, majority of informal sector borrowers are inclined towards incremental financing and self-construction loans, which are mainly provided by co-operative societies. From the recent report on sectoral financing from the Sacco Societies Regulatory Authority (Sasra) revealed that from the over Sh300 billion borrowed by members in 2016, Sh118 billion (36 percent) was borrowed to fund housing projects Mr Magutu said. “This is an indication of the key role that saccos have over the years played in the provision of housing to their members. With a membership of about 14

million people, the co-operative societies have great potential to bridge the existing housing gap,” he added. The chairman of Kusco said to help address the housing deficit in the country, the union has over 14,000 mortgage accounts financing long term mortgages for cooperators and saccos to put up houses and offices respectively. “We therefore call upon the government to fast-track investments through facilitative tax regimes and build capacity in co-operatives. “This will enable co-operatives not only produce raw materials in terms of farm produce, but also process and sell finished commodities to an ever growing market,” he said. On the other hand Kuscco managing director George Ototo challenged the government of unfair taxation by the numerous agencies thereby affecting their business. He cited the amendments to the income tax act, through the Finance Act 2018, doubled the withholding tax rate on dividends payable to members to 10 percent up from five percent as one that should be reviewed. Saying this will make saccos struggle to meet capital adequacy ratios required by Sasra if the motivation to save is interfered with. MARCH - APRIL 2019 | SACCO TIMES



NewFortis maintains top form despite the tough sociopolitical challenges experienced in 2018 By Malachi Motano


espite the sociopolitical challenges witnessed locally and even internationally in 2018, NewsFortis Sacco was still able to register massive improvement in the business sector due to its prudent leadership and the overwhelming support from its members.

Chief Guest Nyeri Governor Mutahi Kahiga who is also a former teacher challenged the Sacco members to work with the county and find a way of exploring the many investment opportunities.

2017 and 11,930 in 2016. The withdrawable deposits rose from 3,397,952,675 in 2017 to 3,917,843,335 in 2018, with the outstanding loans of 5,122,129,751 in 2018 from 4,570,435,229 in 2017 and 3,741,906,071 in 2016. The Sacco’s statistics with the chairman also indicate that the share capital also

“The satisfaction, patronage and the support our members have continued to enjoy from our Sacco is a clear manifestation of the great achievement we have registered consistently over a long period of time. I urge all of you to invest more energy towards realization of greater achievements,” says John Githinji, the Sacco chairman. According to the chairman, the year under review witnessed the Sacco membership grow to 14,082 from 12,832 in

rose from 99,607,885 in 2018 from 92,548413 in 2017 and 79,042,098 in 2016 with the dividend interest hitting 516,058,912 in 2018 from 445,010,192 in 2017 and 370,025,316 in 2016. “Besides the above growth, we have continued to empower our members to own plots in Mweiga that are served on first come first serve basis. Our Othaya and Karatina branches are self-sustaining and we now intend to open new branches in Nanyuki and Nairobi soon,” says the Chairman. The Sacco also bought a van with a registration number of KCS 013M as had been proposed in the previous annual general meeting. NewFortis Sacco has continued to model products and services that are able to meet member’s aspirations. During the same year under review, the board introduces a 66 months product by the name, Jiinue loan. Chairman, “We urge you dear members to continue patronizing the various products more so, the new ones.” Other achievements include the Sacco emerging the best both in credit management employer base Sacco in tier 1 and urban Sacco in credit on deposits during the 2018 Ushirika day celebrations. The Sacco also became the highest in dividends paid by urban Sacco’s in the country and best in large category Saccos

A section of the board and managerial team during the AGM.



GROWTH disruption a head which calls for a more vibrant and innovative department to remain a breast with the demands and challenges especially the issue of cybercrime and related security measures. The Sacco has put measurers to cub this.” The chairman also reports that the Sacco is in the process of developing a new strategic plan for the years to come having reviewed the current one (2015-2019) which is guiding the operations of the Sacco. The Sacco members follow proceedings of the 43rd AGM in Nyeri. countrywide. Still at the same Ushirika day Celebrations that culminated into a gala dinner in a Nairobi hotel, NewFortis Sacco was first position in the category of the best capitalized in large category Saccos and highest interests paid on unwithdrawable deposit in Kenya. Meanwhile at the county level, NewFortis Sacco was awarded the first position on interests on unwithdrawable deposits.

NewFotis Chairman John Githinji reads his report during the 43rd AGM helld at Nyamachaki Primary School in Nyeri.

The Sacco has also had a competitive edge on ICT, providing members with online solutions that enable them to transact their accounts from an online portal. “Chairman, “This has deepened financial inclusion and continues to deliver innovations and business solutions to our member and improvement on members’ experience. Both the e- loan and dividend advance have attracted commendable patronage. I therefore urge all members to channel your salaries through FOSA to enjoy

On risk management, the Sacco is urging all members to update their next-of-kin cards which will enable the Sacco to reach out to the right beneficiaries. The chairman’s appeal comes after the Sacco lost 42 members in the year under review. The chairman is privileged to announce that during the year 2018, a total of Ksh. 516,058,912 was meant to be paid out as dividend and interest compared to Ksh. 445,010,192 in 2017, translating to 18 percent interests and 13 percent dividend respectively. However, he regrets that in line with the finance bill 2018 the taxation of withholding tax has been increased from 5 percent previously to 10 percent and this will be subjected to members dividends and deposits.

NewFortis Sacco CEO John Mathinji presents the proposed budget for 2019. the product. He adds, “As we embrace technology, we expect

He explains that the Sacco amendment bill 2018 also requires that information be shared on performing and noperforming loans to enable credit reference bureau (CRB) to ease the burden of loan defaulting.




Sacco opposes introduction of Social impact member


ewFortis Sacco opposes the introduction of a social impact member as had been proposed in the amendment.

The Chairman Recorgnises that institutional by-laws are key guide to governance, with Saccos by-laws formulated in line with co-operative Act and SASRA regulations. The government has proposed legislative amendment to the cooperative society Act through the finance bill 2017. “In order to harmonize our bylaws, some amendments also need to be done. Another development is on the International financial reporting standards (IFRS-9) enforced by the international accounts board. Its introduction will affect the financial statements moving forward,” Mr. Githinji says. The chairman appreciates the members for also patronizing preferential membership with a total of 404 registered already hitting the one million mark on unwithdrawable deposits, courtesy of the product. The Sacco will sensitize members on the existing alternative building technology to enable majority of the low and middle income



NewsFortis Sacco Chairman John Githinji briefs the chief guest Governor Mutahi Kahiga on his arrival at the meeting.

population segments to afford decent and affordable shelters now that Saccos are marked as key players in the achievement of the presidential Big -4Agenda. The Sacco will develop long term financial products tailored for housing projects. Other investments in 2018 by NewFortis Sacco include Ksh. 46,601408-CIC, Ksh. 1,000,000 - KERUSSU, Ksh, 1,050,000 - Teachers plaza, 734,603 - CODIC, Ksh, 7 9 , 2 2 7 8 1 2 - KU S C C O, K s h, 24,327,100- Cooperative bank class A, Ksh.14,050,000 Cooperative bank class B and 11,00- Coop Alliance of Kenya. The chairman recorgnises that cooperatives in Kenya and the rest of the world have woken up to the realization of the need to create a responsible, sustainable consumption and production while creating an opportunity to show how they run successful businesses within its very unique model and ensuring its values, principles and governance structures are sustained.

According to the Sacco Chairman John Githinji, Saccos are formed based on the cooperative principle of one man one vote. He says most Saccos address interests of a specific group and the introduction of a ‘foreigner’ in the board may make the Sacco to acquire new interests which are not in line with the original reason for its formation. “Members, the debate whether to introduce this ‘foreigner’ has been going on since it was proposed. I want to say this that this Sacco was started to address our interests. This foreigner may bring a lot of money and steal the running of the Sacco for his own interests and not the members. His sentiments were echoed by the Chief guest who is the area governor Mutahi Kahiga “There is no way we can start something (Sacco) of our own then a foreigner comes to acquire it. We (members) are the ones who know our interest. We don’t want anybody so come and manage for us our own business. May the so called social impact member look for his colleagues and form his own Sacco,” says the Governor.


The main objective of the society is to facilitate savings at the same time giving loans to members. BOSA PRODUCTS

DEVELOPMENT LOAN • A member gets 3 times the products of his or her

• • • •

deposit. Maximum repayment period of 60 months. Loan secured by four guarantors. Amount granted within 72 hours. Interest charged amount to 6.5% per annum.


• A member gets 4 times the products of his/her shares. • Maximum repayment period of 72 months. • Members transfer his/her divides to shares until loan granted is repaid in full. • Loan secured by 4 guarantors. • Loans granted within 72 hours. • Interest charged amounts to 6.5% per annum. PRIDE LOAN Deposit entitlement not considered. Loan repayable within 72 months. Interest rate 0.7 % per month and capitalized. Loan approved in 30 minutes. Loan secured by four guarantors.

• • • • •

SCHOOL FEES LOAN Amount granted depends on the ability to pay. Granted on daily basis. Repayable within 12 months Secured by 4 guarantors. Interest rate 0.54% per month No supporting documents.

• • • • • •

EMERGENCY LOAN • Maximum loan is Kshs. 60,000. • Repayable within 1year • Interest rate of 0.54% per month • No supporting documents required . • Granted on daily basis. • Loan secured by 4 guarantors.

m ^


RISK MANAGEMENT PROGRAMME. • Member ' s contribute Kshs 150/= to finance the program me. • In case of death the society pays 40,000/= from the fund towards funeral expenses. • Society refunds twice the deposit and writes off the outstanding loan. • Members refunded 5000/= after retirement.

RETIREMENT PACKAGE • Members are encouraged to retain their membership after retirement. • Lumpsum and monthly pension paid through Fosa. • Monthly Contribution 500/= per month. • Granted loans like any other member recovered through standing orders.

NewFortis Sacco


• Documents forwarded through subscription forms • Members to pay yearly charge of 300/-

Because we are better together

• Documents retrieved on request through writing SCHOOL FEES CHEQUES • Cheque processed within 10 minutes • Members pay 100/= Non-members pay 200/=

• Acceptable locally and internationally SACCO ACHIEVEMENT

• The Best Managed in Large category Sacco's in the country • Highest Interest on Unwithdrwable Deposits by urban Sacco • • • • • •

• •

in the country Granted over 23.3 billion shillings as loans since inception The best in credit management (Employer based Saccos) in the country Issued with an operating licence by SASRA Best in credit management Countrywide

OTHER SERVICES M- BANKING Withdraw money from your Fosa account using your mobile phone. Money anytime ,anywhere, via * 426#


y -

Because we are better together NewFortis Sacco Ltd P.0 Box 1939 - 10100 Nyeri M M-BANKING

Withdrawal Money - Deposit Money Pay Utility bills Account Transfers


Loan Applications Balance Enquiry Mini statement SMS alerts Pay Bill No.: 339450




Head Office - Nyeri Branch Tel: ( 061) 2030759 mobile: 0725 349 343

Because we are better together

Karatina Branch mobile: 0725 310 368

othaya branch Tel: ( 061) 3152020




Government drafts new policy to

safeguard Sacco members’ savings By Malachi Motano


he government has drafted a new policy for the cooperative movement that targets to ensure that Sacco members’ savings are safeguarded. If the new policy comes into effect in its current form, Sacco directors will have to undergo a fresh vetting to weed the industry of rogue officials. The draft policy has also proposed establishment of an investigative unit at the Sacco Societies Regulatory Authority to follow up on irregularities. According to the latest report from SASRA, Saccos advanced loans worth 328 billion shillings in 2016, with a majority of it spend on buying land, house construction and capital for businesses. “I must say that the Ministry is



The CS was represented by Susan Mochache the PS -state department of cooperatives at the official release of the report on sectoral financing by Saccos launch in a Nairobi hotel.

very impressed by the level of contributions being made by Saccos in the national economy. This is particularly so with regard to the credit financing to the Land and Housing sector; as well as to the Trade, Education and Agricultural sector of the economy,” says Industry, Trade and Cooperatives CS Peter Munya. According to the CS, Land and Housing sector of the economy is the single highest beneficiary of

credit facilities from Saccos. The sector received a whooping Kshs 118 Billion accounting to over 36 percent of the aggregate finance to all sectors, and nearly twice as much as the second beneficiary sector. “This is a revelation that henceforth re-positions Saccos as competitive vehicles for the provision of credit towards the Affordable Housing which is part of the government’s Big 4 Agenda.,” CS. He says the Ministry therefore expects that Saccos will continue to remain at the frontline of government’s agenda on provision of Affordable Housing to the public. “Indeed in creating the Kenya Mortgage Refinance Company (KMRC); the government has been collaborating with Saccos, firstly as potential investors through subscription to its equity;

GOVERNANCE and secondly as financiers that will on-lend to the public on behalf of KMRC. My Ministry therefore challenges Saccos to appropriately position themselves for these opportunities,” Munya. The Report documents the Trade sector as the second highest beneficiary of credit facilities from Saccos, with over Kshs 67 Billion which accounts for 21% of the total sectoral lending. Interestingly, Kshs 63 Billion of this amount was channeled towards whole sale and retail trade, thereby cementing the place of Saccos as alternative financier of MSMEs. The decision by many Saccos to open their common bond to the business community, particularly through the microcredit financing models, means that more and more household businesses are relying on Saccos for credit financing. The Agricultural sector, one of the highest beneficiaries of credit facilities from Saccos according to the report received a paltry Kshs 21 Billion in credit from Saccos during the period under review and accounting for only 6.61% of

Representatives from different Saccos wintess the release of the report on sectoral financing by Saccos launch in a Nairobi hotel.

the total sectoral financings by Saccos. The credit finance to the Education sector received Kshs 39 Billion and accounted for 12% of the total sectoral financing. The CS attributed the low level of credit finance towards the agricultural sector directly to the dwindling fortunes of agricultural produce as reliable collateral for credit facilities. As at December, 2018, the deposittaking Saccos alone reported a total asset worth of Kshs 498 Billion; with a gross loan portfolio

SASRA CEO (right) and Hon. John Munuve the current Chairman SASRA board at the release of the report on sectoral financing by Saccos launch in a Nairobi hotel.

of Kshs 373 Billion. These loan facilities have been distributed to different sectors of the economy. “If at all the findings of the Report were to be applied literally; then it may not be difficult to project the sectors of the economy in which the Kshs 373 Billion Saccos loans lie,” CS. The CS says government is more focused on the credit side of Sacco business, it should not be lost that Sacco business also has the savings component; which fortunately has periodically been reported by SASRA. As at December, 2018, the total deposits and savings among the 174 deposit-taking Saccos alone stood at Kshs 342 Billion. It is these deposits and savings that substantially funded the credit component. “Although these foregoing statistics represent the savings and credit information of deposittaking Saccos only; I must say that as a Ministry we have taken appropriate measures to ensure that data from all Sacco Societies are henceforth collected, collated, validated and reported accordingly. A taskforce to provide a way forward on this was appointed in December 2018 and should be submitting its report any time soon, CS. MARCH - APRIL 2019 | SACCO TIMES



Tower Sacco registers remarkable 36 percent growth as turnover hits one billion mark in 2018 surplus before payment of rebates on non-withdrawable deposits was Ksh. 764,575,043 million for the year under review compared to Ksh. 649,401,805million in 2017 reflecting a growth of Ksh. 115,173,238 million (a growth of 18 per cent).

Members of the Sacco follow the ongoing proceedings during 43rd AGM.

By Fred Ndung’u


ower Sacco hit new levels in 2018 by registering a remarkable turnover of over Ksh 1.2 billion, which is three times bigger the turnover registered in the previous year. The Sacco’s total income rose from Ksh. 322,053,214 to Ksh. 1,230,241,128 as at December 31, 2018, a 36 percent growth compared to results posted in December 2017. “This is the first time in the history of our Sacco that we have realized a turnover of over one billion shillings,” says the Sacco chairman John Gitundu. He says in the year under review, the Sacco had realized a 37 per cent growth in membership (from 60,728 members in Dec 2017 to 83,333 members in Dec 2018). Its share capital and



Sacco CEO Gabriel Njihia Waweru says the Sacco is moving confidently in the right direction.

non withdrawable deposits realized a 26 per cent growth from Ksh. 4,444,958,833 billion in Dec 2017 to sh 5,593,018,326 billion in 2018. The loans book realized a 38 per cent increase from Ksh. 4,429,187,117 billion in 2017 to Ksh. 6,095,582,121 billion in Dec 2018. The Sacco’s total assets also increased by 28 per cent from Ksh. 6,652, 981,523 billion in 2017 to Ksh. 8,524, 725,337 in 2018. According to the Chairman,

His board of directors recommended a 20 per cent dividend payment on shares amounting to Ksh. 100,537,327million; a 12.1 percent rebates on nonwithdrawable deposits amounting to Ksh. 575,759,628 million, and honoraria of Ksh. 1,440,000 million which is 0.76 per cent on net surplus. “Kindly take note that the dividends payments and rebates are not the only indicators of Towers Sacco’s sterling performance; our other indicators include high levels of efficiency in loans disbursement; efficient service delivery; our growth in physical infrastructure; high compliance levels within the industry and good corporate governance practices,” Gitundu added. The board also requested for approval of sh 70 M (which the members accented to) for an upgrade of its ICT system to overcome down time and to boost security among many other critical considerations. He confirmed that elaborate marketing strategies have been discussed and approved to enable growth of membership to 200,000 by 2021. According

GROWTH better and more efficiently.

Chief Guest Muthoni Wamuiya CEC Industrialisation,Cooperatives, Trade and enterprise development expresses commitments of the County Government in suppoprting Saccos.

Meanwhile the construction of an ultra-modern seven storey head office is due to begin, with the Nairobi branch set to commence its operation from March 1, this year (2018).

to him, Tower Sacco shall continue empowering SMEs and farmers who form part of its membership. “We are endeavoring to realign our procedures in order to deal better with our human resource so that we can train and motivate our staff more; we have restructured our organogram in efforts to improve service delivery to members and to be able to handle our suppliers and other partners and stakeholders

The Sacco takes pride in various branches and satellite offices in several towns all over the central region including in Ol’ Kalao itself, Engineer, Ndaragua, Nyahururu, Gilgil, Miharati, Kwa haraka, Naivasha, Geta, Mirangine, Ngano, Wiyumiririe and Shamata. It also operates a branch in Maralal and is due to open its Nairobi branch in March this year with other branches set to be opened in the future at Mtwapa (coast region) and Narok.

The Sacco has already identified Kariobangi Light Industry premises along Outer ring road after conducting a feasibility study in the area. Renovations are already at an advanced stage. Tower Sacco Chairman John Gitungu reads his report at the 43rd AGM.

“Our transformational agenda shall address growth and sustainability among other pertinent issues. Our four key pillars realized after intensive, inclusive and consultative deliberations include Growth, ICT, Marketing and People. Our projection is that Tower Sacco will attain a total assets base of 20 billion by 2021 and this aspiration informed our 43rd AGM slogan20B by 2021,” Gitundu enumerated in his report. According to the Sacco CEO Gabriel Njihia Waweru, the Sacco is moving confidently in the right direction.

Sacco CEO Gabriel Njihia Waweru addressing members during the AGM. MARCH - APRIL 2019 | SACCO TIMES


GROWTH “Tower is undoubtedly moving in the right direction and we have been regularly assessed and approved by our industry regulators. I urge all of you to continue saving and investing in the Sacco to earn maximum benefits as dividends payment rates keep rising every other years.

cooperative organizations have been rebranding and breaking their common bonds in a strategic move meant to reach out to as many customers as possible throughout the country and also to diversify operations in efforts to offer more solutions. Tower Sacco (the former Nyandarua Teachers Savings & Credit Cooperative Society) which was Previously offering services and solutions exclusively to teachers, became among the biggest beneficiaries of the innovative measure.

The 20 percent payment as dividends on share capital is relative. The more shares one has the better the earnings,� he advised, urging members to concentrate on building their share capital. He adds that Tower Sacco services have improved tremendously as reflected in industry assessment reports released by SASRA (Sacco Societies Regulatory Authority) and the Ministry of Trade, Industry and Cooperatives Development. For over 10 years now many professional and sectorspecifically savings and credit



Members of the Sacco follow the ongoing proceedings during 43rd AGM.

Today the Sacco embraces and attracts members from all professions and fields including government ministries, the teachers service commission (TSC), Kenya Defense Forces (KDF), Kenya Police Service, Kenya Prison Service, County Governments, private & public learning institutions, hospitals (government and private),

parastatals, Kenyans in the Diaspora, farmers and the business community including SMEs. During the 2019 AGM, the Sacco hosted over 1000 of its members at its 43rd annual general meeting (AGM) which was held at the Ol Kalao Catholic Parish Church in Ol Kalao town. The orderly and lively meeting started promptly and provided a wealth of information for its membership and invited guests who included the chief guest Muthoni Wamuiya, the CEC in charge of Trade and Co-operatives in Nyandarua County, the County CEC for Education Faith Wanjiru Mbugua (also a member of the Sacco)and Chief Officer Ministry of Trade, Commerce and Industrialization (Also the acting Director of Cooperatives Development) and the Nyandarua County commissioner Veronica Karuha among many others.



A basket for All Your Financial Needs


Loan Products Tower SACCO was registered on 15 September 1976. It was licensed by SASRA as a deposit taking SACCO on 28th July 2011 afer fulfilling all the condi ons set by the regulatory body. Membership is drawn from the following: Ø Teachers both in private and public schools Ø All public civil servants both county and na onal government Ø Business community Ø Farmers Ø Small and medium scale entrepreneurs Ø Registered self help groups Ø Corporates such as companies, primary socie es, partnerships, coopera ves, SACCOs, schools Ø People living in diaspora How to join Tower SACCO One is required to fill a membership applica on form, a ach a copy of ID and pay entrance fee. The forms are available in all our branches and also can be downloaded from our website.

of members within the Republic of Kenya and beyond. Core Values: Ø We are guided by the following core values;


Ø Integrity Ø Confiden ality on all SACCO ma ers Ø Efficiency and effec veness Ø Teamwork Ø Equality and equity Ø Crea vity and innova on {Acronym } I C E T E C

Vision: To be accessible, universal SACCO of choice for excellent and vibrant economic growth. Mission: To mobilize, offer diversified sustainable financial products and services at compe ve rates to upli� social economic standards

FOSA Loan Normal Loan Ø Loan granted should be 5 mes the member's Ø Loan granted should be 4 mes the member's deposits. deposits. Ø Secured by guarantors Ø Secured by guarantors Ø The maximum repayment period is 60 months. Ø The maximum repayment period is 84 months. Ø Compe ve interest rate Ø Compe ve interest rate FOSA Flex Loan Ø Loan granted should be 5 mes the member's deposits. Ø Secured by guarantors Ø The maximum repayment period is 84 months. Ø Compe ve interest rate on reducing balance Emergency Loan Karibu Loan Ø Loan granted should be 3 mes the member's deposits. Ø Suitable for newly employed members or those who Ø Loan is repayable within 12months. have recently joined the Sacco. Ø Compe ve interest rate Ø 20% of the loan is deducted to raise ones deposits Ø Secured by guarantors Ø Repayable in 36 months Special Loan Ø Compe ve interest rate Ø Granted to purchase products e.g. motor bikes, lap tops, Ø Secured by guarantors mobile phones etc. FOSA Emergency 24 Ø Member can iden fy the poducts and supplier, the Ø Loan granted should be 5 mes the member's cheque is drawn in favour of the supplier. deposits. Ø Maximum amount is Kshs.150,000. Ø Secured by guarantors Ø Repayable within 36 months. Ø The maximum repayment period is 24 months. Ø Compe ve interest rate Ø Compe ve interest rate



Loan Products

Loan Products Maximum amount is Kshs.50,000 Compe ve interest rate. Maximum repayment period of 12 months. Salary in Advance Ø Maximum amount equivalent to one month's salary Ø Recovered immediately salary is received. Ø Compe ve interest rate Okoa Advance Ø Those who have applied for FOSA or normal loan awai ng maturity. Ø Those who have deposited cheques awai ng clearance. Ø Re rees who have received their pension's le ers awai ng their pension. Ø On applica on of withdrawal from the society's membership or from premium scheme. Ø Compe ve interest rate Ø The whole advance amount plus interest is recovered when the above aforesaid mature. Ø No guarantors are required. Premium Loan Ø Loan granted should be 3 mes the member's deposits. Ø Secured by guarantors Ø The maximum repayment period is 36 months. Ø Compe ve interest rate Ø Ø Ø

Premium Emergency Loan Ø Loan granted should be 3 mes the member's deposits. Ø Secured by guarantors Ø The maximum repayment period is 12 months. Ø Compe ve interest rate Group Premium Loan Ø Loan is granted to groups to purchase land Ø The land should have free hold tle deed Ø Group members must be 6 and above Ø Loan is granted 3 mes each member deposits Ø Secured by group deposits and tle deed Ø Compe ve interest rate Ø Repayable in 36 months Dividend Advance Ø Repayable by dividends Ø Open to all members when board passes resolu on to offer them. Mapato Loan Ø This is a loan granted but is payable by dividends Ø Appraisal done based on members, dividends / rebates Ø Repayable in 36 months Ø Secured by 3 guarantors Ø Member does not receive devidend in cash during the loan period.

Trade Finance

Mkopo Mashinani

This a facility that supports trade in goods and services both locally and interna onally. This financing facility is anchored on trade documents. We give you trade finance instruments that facilitate movement of goods from one point to another both locally and interna onally . Ø Bank Guarantees Bid Bonds Performance Bonds Ø Invoice Discoun ng Ø LPO Financing

Bima Loan in partnership with CIC Premium financing provides a short term loan for businesses and individuals to use specifically to pay for asset insurance coverage. Ø A member is required to have deposits. Ø Loan is 3 mes the deposits. Ø Compe ve interest rates Ø Flexible financing terms for a period of up to 12 months

Loan Products FEATURES Ø Loan granted to organized youth groups to buy new motor bikes Ø Flexible repayment period Ø Compe ve interest rate on reducing balance per month Ø Group co-guaranteeing applies in the loan Group benefits from financial management training from the Sacco Requirements Ø The members iden fy motor cycle of their choice Ø Member qualifies for a loan 3 mes their deposits Ø Log book to be BODA BODA GROUP LOAN registered in the name This is a product developed with an eye on giving our youth an of Tower Sacco and will opportunity to develop and become financially independent. For only be transferred once desired impact, we encourage them to form groups, save and the loan is repaid in full apply for loans to buy boda boda for their business. Ø The motor cycle will be Ø The group should open and run account with the Sacco for comprehensively insured at least three months.


The loan is granted to members who are organized into duly registered groups.


Loan is based on 5 mes ones deposits


Compe rates

ve interest


Repayment period of 18 months


Secured by guarantors and cha el mortgage

MORTGAGE This is a product developed to give you and your family shelter and security. The product enables you to acquire property, acquire and develop or develop already acquired property. This product eases the burden of acquiring your dream home and frees you from tenancy and easily transforms you into a landlord. All you require is save with us for at least six months.



FEATURES Ø Long and flexible repayment period of up to 15 years Ø Compe ve interest rates on a reducing balance Ø Swi� processing of applica on. Requirements Ø Duly signed applica on form Ø Copy of Customer ID/PIN Ø Copy of Sale Agreement/Offer le er Ø Valid valua on report Ø Customer to raise 20% of value of property Ø Cer fied ownership documents to be submi ed to the Sacco Ø Property to be charged to Tower Sacco for the dura on of the loan period ¯ Terms and condi ons apply


Saving Products Sacco Junior Account Account Features Ø Free Entertainment and Banking for the kids Ø Free School Fees Cheques Ø Parent must open a different account for each child Ø Minimum interest earning balance of Kshs. 2000. Ø Free Home Banking Ø Account can only be withdrawn 3 mes a year.

SAVING PRODUCTS Ordinary Savings Account Ø An account that can be used to process salaries, pensions, farm produce and normal savings. Ø No withdrawal limits. Ø Cheques can be deposited into the account Ø ATM can be issued. Ø Withdrawal can be made via mobile phone

Requirements for Opening the Account Ø Parent’s ID Card Ø Child Birth Cer ficatate (Op onal) Ø Fill in Applica on form (Parent) Ø No account opening fee.

Current/Business Account Ø Account ideal for business people. Ø No minimum balance. Ø Cheque book is issued. Ø Overdra� facility offered Fixed Deposit Account Minimum amount is Kshs.20,000 Contract period is 3 months, 6 months, 9 month and 1 year. Ø Compe ve interest rates above market rates. Ø A customer who wishes to terminate the contract before the contract period ends forfeits the interest earned.


Stop Gap Account Account is designed to save for re ement. Compe ve interest rates which is compounded every year.




NEWS FARMER’S PRODUCTS Farm Produce Advance Ø Granted to members whose farm produce passes through FOSA Ø Compe ve interest rate Ø Repayment period is 6 months Ø Secured by guarantors



Member is given 5 mes of ones deposits


6 months repayment period




Insurance fee of 2% and soil tested


Loan is granted upon approval of the agronomist


Available to members and non members

ve interest rate of 1% flat rate

Tower Sacco Agency For Loan Repayment Shares Contribution Balance Enquiries Mini Statements

This facility enables a farmer to acquire high yield organic fer lizer at affordable monthly instalments. It is ideal for specified crops and is for fied with nutrients necessary to give boun ful havest and is friendly to the soil.

Live your dream Why wait for ages to acquire your dream asset.. With Tower Asset Financing, the path to increased investment is at arm's length only.. We'll help you acquire the asset today and pay later…. Raise only 20% of asset value in non withdrawable deposit and you are set. FEATURES Ø Prompt response to hire purchase applica ons


Ø Compe

ve interest rates Ø Ø Flexible financing terms for up to 84 months Ø Assets remain the property of Tower Sacco for the dura on of the Ø Ø loan period


Ownership is transferred to you once the last payment has been made. An insurance premium financing op on is available to assist you with your insurance repayment. Automa c reminders of insurance expiry Asset is co-owned by the par es.


OUR SERVICE STANDARDS Utmost 20 Minutes Services

Utmost 20 Min Services

Cash/Cheque Deposits Over The Counter Withdrawals ATM and Cheque Book Collec on General Enquiries ATM Card Ac va on / De-ac va on Bankers Cheque

Account Opening FDR Processing Dormant Account Ac va on Internal Funds Transfer Statement Processing Moneygram/Western Union

Utmost 24 Hours Services

Utmost 3 Week Services

Salary/Pension Processing RTGS/EFT Remitances Bank Standing Orders Processing

ATM /FOSA Card Processing Cheque Book Processing

Utmost 1 Hour- Short Term Loans

Utmost 2 Weeks - Long Term Loans

Emergency 12 &24 School Fees Special Loans Advances Refunds Mkopo Mashinani

Normal Loan FOSA/Karibu Loan Premium Loan

Asset Finance and Group Premium Loans – Upon Perfec on of the Securi es

P.O. Box 259-20303 Ol’Kalou Tel: 0723-836421/0733416492 Hotline: 0731638930














0743 514 643



0723 836 421 0725 562 016 0711 727 714 0754 507 679 0727 172 775 0736 500 971 0740 852 490 0775 131 098 0731 028 088 0707 805 818 0788 975 698 0727 072 991 0788 975 724 0707 937 575


Stima Sacco distances itself from troubled Stima Investment Society


tima Sacco has refuted a report published in one of the dailies that its Board has been disbanded following a forensic audit that revealed fraud.

said the two institutions are regulated by two different bodies; Sasra for Stima Sacco while the Department of Cooperatives for Stima Investments.

Stima Sacco has clarified that the organisation in question is Stima Investment Cooperative Society Limited which has no relation to the giant deposit taking Sacco.

“Stima Sacco board has not submitted a case in court in relation with the purported disbandment of its board,” the statement further read.

“Stima DT Sacco Society Limited and Stima investment Cooperative Society limited are separate entities with separate Governance structures and distinct clientele. Stima DT Sacco is a licensed Deposit-taking Sacco and does not deal with real estate,” read a statement from the Sacco.

“Stima DT Sacco is the 2nd largest Sacco by asset classification out of about 220 deposit-taking Saccos in Kenya and we can confirm to our members that we are in a strong financial position and well within the statutory requirements as governed by SASRA (Saccos Society Regulatory Authority), a fact that can be confirmed by the Authority,” said Stima Sacco

Media reports had indicated that the cooperative Sacco, which has over 13,000 members, had



Stima Sacco further said the two institutions are regulated by two different bodies_ Sasra for Stima Sacco while the Department of Cooperatives for Stima Investments.

misappropriated Sh500 million in suspect land transactions. “We wish to clarify that the news article published in a section of the press has nothing to do with Stima Sacco. The media house has since corrected the story,” read a text message to members. Stima Sacco further


Mombasa Port Sacco positions itself to harness more from SGR opportunities By Anthony Mwachiro


ombasa port Sacco has taken a pole position aimed at harnessing more investment opportunities for its members in the myriad services brought fourth by the Standard Gauge Railway (SGR). According to the chairperson of the board of management Alfred Konde, already the board is recruiting more staff to enhance efficiency in service delivery with plans to open a liason office in Nairobi at advanced stage. “Already we have advertised for some posts that will go a long with increasing the number of staff to meet the increasing demand both at the Coast and in Nairobi. Am happy to report to you that our Nairobi office is operational.” Revealed Mr. Konde, Chairman Mombasa Port Sacco.

Msa Port Sacco chairperson, Alfred Konde expressing a boint during their delegates meeting at their conference hall in Mombasa. Picture by Anthony Mwachiro.

Mombasa Port Sacco CEO Dedan Ondieki, during his address to delegates. Photo by Anthony MWachiro.

He was addressing the media at the sideline of the society’s delegates meeting in Mombasa. The Sacco saw its membership increase steadily to about 8,000 in 2018 with the management insisting to have business development manager to ensure that the society comes up with products suitable to the general public, apart from introducing products only suitable for business people, farmers, tenderprenuers, chamas, children among others. In a statement to delegates, the board revealed an increase of 6.65 percent in loans from 3.3 billion in 2017 to 3.5 by the end of 2018. “Deposit in the same period grew from 2,300,181,529 to 2,668,265,373 signifying a 16 percent growth. Total asset base witnessed a 15.15 percent to 5.3 billion from 4.6 billion.” Said the Chairman.

Section of mombasa port delegates during their annual delegates meeting held on 16 February, 2019. Picture by Anthony Mwachiro.

The Sacco is now operating from its new building. MARCH - APRIL 2019 | SACCO TIMES


OPPORTUNITY He assured members of benefits as a result of the new building which has created a new image to our Sacco which is a part of our branding process. The structure belong to all members” At the same time, he maintained that the Sacco will invest more on education to members, delegates and staff to enable the society have a clear structure in its growth strategy. Similar sentiments were shared by Harry Arigi, the society’s supervisory committee chairperson who reminded the delegates of their roles for the growth of the Sacco through education to their members whom they represent. In a statement to delegates, he maintained that those serving as delegates or board members had been given privilege by the members not a right as there are others who could take up the place.

Mombasa port delegates expressing her opinion on how to improve the society to the greatest hights nationally. Photo by Anthony Mwachiro.

“Zonal representatives should note that elections are not a contest but a process to ensure zones are properly represented and issues deliberated in a sober manner. I urge you delegates to conduct your zonal meetings and share some information

Msa port supervisory chair Harry Arigi (back standing) shares a point with CEO Dedan Ondieki while the secretary Suzan Ayoyi keeps an eye. Photo by Anthony Mwachiro.



with your members who elected you.” Advised Arigi. The delegates approved a 23.5 million as dividend which is 20% of the total members share capital and approved the same to be capitalised and pay interest to members deposits at 12.5 percent, borrow up to a limit of 500 million shillings and increase share capital by Kshs. 5,000 with effect from the month of July 2019, with the aim of each member having a minimum share capital of

The Sacco will invest more on education to members, delegates and staff to enable the society have a clear structure in its growth strategy.


Hope for Kakamega women after relaunch of low interest Sacco By Enock Ndayala


women Sacco in Kakamega county has been relaunched in efforts geared at enabling women access low interest loans . According to the County Women Representative Elsie Muhanda, the relaunch of the Kakamega County Women Maendeleo will help women save and get loans to venture in to different businesses. She was speaking when she officially launched the entity, where she said the move is expected to increase the savings and loan limits of women through interest friendly loans to help them start and manage small businesses within the region and beyond. The re-launch also leaves women in Kakamega confident to feel they are included in day to day activities of our economy, even though the county has had several micro-financing societies that promote savings and investments in past with very few considering Mama Mboga, and those unemployed. These Saccos provide their clients with valuable information that allow them to invest in the best markets that promise big returns. Leaders in Kakamega county have been rooting for the formation of such societies, and a number have begun to blossom. The society will provides a banking platform where members can save and borrow soft loans to start and run their business. Started in 1972, it was ideally meant to

The Sacco is Hon Elsie’s flagship programme seeking to bring on board all residents of Kakamega Count.

voice the concerns of women in Western but went under after and remained dormant for decades.

inducing politics and ethnic prejudice in the affairs of saccos, saying it crippled their performance.

Now renewed and strengthened, it consists of several branches including Lurambi Traders Sacco, Maendeleo ya Wanawake, Ikolomani Dairy and Umbrella Sacco among others.

One Christine Achieng’who attended the relaunch has been saving in the society for six months. She said her loan limit had grown to Sh900, 000.

Besides providing a base for saving and borrowing, the society creates leadership opportunities for both members and nonmembers.

Ms Achieng’ used to roast maize in Kakamega before becoming a hospital sanitarian. She joined the society in June and has been saving since then.

“Through the society, we are committed to changing the belief that women were created for house chores and other domestic duties,” said Ms. Muhanda during the relaunch at Bukhungu Stadium.

“My loan has matured and I expect to get a total of Sh900, 000 that I will use to build rental houses. I encourage other women to join societies and start saving so as to increase their loan limits,” she said.

According to her, the poverty index of the county and the entire Western region would drastically decline by great measures if more women became self-employed and independent.

The Sacco currently has over 12,000 registered members with a base capita shares of Sh 20 million will not only help women but other unemployed young entrepreneurs including Bodaboda.




against MARCH - APRIL 2019 | SACCO TIMES



Ollin asset value hits Ksh 4.5 billion as members benefit from education program By Malachi Motano llin Sacco fortunes remain on positive trajectory after announcing a total asset value of close to Ksh 5 billion mark (Ksh.4,518,715,280) set by the Sacco society regulatory authority (SASRA).

best in credit management, best managed, second most improved and also in risk management among the employer based Saccos.


Meanwhile in Kirinyaga County, the Sacco emerged position one -Highest audit compliance, position two- highest dividend rate, and highest average savings per member and finally position 3-highest interest on unwithdrawable deposits.

This achievement according to the Sacco’s Chief Executive Officer (CEO) John Gathige is attributed to the extensive marketing, educating members on the Sacco products and services and the team work in Sacco activities. The Sacco kicked off its 2019 activity calendar with a members education program. According to the CEO, Ollin becomes the first Sacco in the county to hold such a program in the first week of the new year. “The unwavering support by members who not only show commitment, but also patronize the products and services has finally seen the Sacco’s total assets near the 5 billion mark set by our regulator (SASRA),” reiterates Mr. Harrison Gachugo, the Sacco Chairman.

In Kajiado County, the Sacco has been recognized as the most vibrant after establishing two branches one in Kitengela and another one in Kiserian. “For Ollin, it is a continuous improvement. Talk of Gemba Kaizen,” The Chairman says. Sacco CEO John Gathige and the board chairman Harrison Gachugo confirm a point during the 42nd AGM

on monthly remittance from Ksh. 79,562,368 to 93,303,406 in the same period under review. The Sacco has continued to gain competitive recognition both at the national and county levels. At the national level, the Sacco is the

‘If you think education is expensive, try ignorance’. Ollin Sacco does not want to be caught in the mix and therefore began 2019 with Members education from January 5, to 19, in Ndia, Gichugu and Mwea divisions respectively with increased attendance of 19 percent compared to 2018.

According to the available data, in the last financial year (2017-2018) the Sacco’s total assets grew by 15 per cent, from Ksh. 3,928,434,158 to Ksh. 4,518,715,280. Back office (BOSA) deposits also increase from Ksh.1,999,272,821 to Ksh. 2,353,691,534, an increase of 28 percent. Loans increased by 22 per cent from Ksh. 2,891,422,956 earlier to Ksh. Ksh.3,535,090,437 in 2018 while the share capital increased by 40 per cent from Ksh. 65,764,320 to Ksh. 92,217,144 and an increase of 17 per cent



Members follow the proceedings at the 42nd AGM held in Kutus Primary.

GROWTH The Sacco also need to device ways and means that will ensure sustainable growth in deposits now that due to the rapid growth in assets, the deposit ratio currently has been on the declining trend. Though the Sacco has embraced improved information communication technology (ICT) in the passed, it now intends to establish satellite centres and agency outlets, acquire a more robust mobile platform and establish a more reliable and interactive ICT infrastructure. The CEO John Gathige leads his management team during the introduction session at the 42nd AGM held at Kutus Primary School.

“Although the turnout looks impressive, quite a large number of members still did not attend. We encourage members to be participating in large numbers since knowledge is power,” Chairman says. The Sacco also encourages members to regularly update the Sacco on their next of kin details since lack of updates poses great challenges when identifying the bona fide next of kin when processing the estate of the deceased. “In some instances, the Sacco has been forced to transfer the estate to the public trustees where the process of claiming the same is rigorous and tedious,” says Chairman.

Sacco CEO John Gathige and his Finance Manager presenting Sacco budget for 2019 at the AGM. to assist in marketing the Ollin brand as the Sacco targets its membership to hit 20,000 by 2020.

The last five years has seen the society grow rapidly in terms of membership and branch networks, there is now need for the Society to increase its office space and establish a modern data centre at the headquarters to accommodate the increased human and data traffic respectively. On behalf of the board, the Chairman declared a dividend of 15 percent on shares and interests of 11.8 percent on deposits all totalling to Ksh. 291,568, 152 for the financial year 2018 compared to Kshs.243,779,568 in 2017 which translates to an increase of Ksh. 47,788,584 equivalent to 20 percent growth.

He adds, “In order to reduce conflicts and losses when processing the claims of the estates, it is now mandatory that every member updates his or her next of kin details, regardless of whether one had previously declared the same and should be ready by the end of June this year. Although the Sacco has a robust and ambitious strategic plan for 2016- 2020, it is laying emphasis on the marketing, deposit mobilization and ICT pillars. The Sacco is calling upon members

Chief guest and former minister for cooperatives Joe Nyaga makes his keynote speech during the 42nd AGM MARCH - APRIL 2019 | SACCO TIMES



Boresha Sacco flexes muscles to become a financial service provider in Baringo

Members attend Boresha Sacco educational meeting held at the Kenya School of Government (KSG)-Baringo Central Sub-county on February 23. /Barasel Talam By Barasel Talam


oresha Savings and Credit Cooperative Society (Sacco) has lived up to its co objective of becoming a financial service provider in Baringo County and beyond..

in 2017 with a target of 120,000 members this year. The institution’s share capital has also increased from Kshs. 373.4 million from Kshs 325 million in

“We are grateful to our members for continued patronage, unity of purpose and participation that has grown the society to the league of tier one SACCO in Kenya” Chief Executive Officer Moses Chebor said.

Established way back in 1976, the institution formerly known as Baringo Teachers Sacco has made drastic achievements aimed at accumulating saving and creating a source of funds to lend to its members at fair and reasonable interest rates. After being registered as deposit taking under SASRA in 2012 the Sacco currently boasts 95,382 members as per the end December 2018 up from 85,531

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2017 while outstanding loans to members are Kshs 5.369 Billion in 2018 as compared to Kshs. 4.534 billion the previous year. Its asset base stands at 6.7 billion.

Chebor was addressing series of educational meetings to members which kicked off at the Sacco’s Eldama-Ravine town plaza headquarters-Baringo on February 9. Boresha Sacco board member Pius Bolei makes his submission during the educational meeting held at Eldama-Ravine offices on February 9.

Members also turned up in hundreds for the similar meet-

SERVICE PROVIDER ings held between February and March 2 at Marigat, Mogotio, Mochongoi, Chemolingot, Kabarnet, Kabartonjo, Tenges, Kipsarman and Barwesa branches.

wooing in members from all walks of life. Jekones Ndoge who was facilitating during the meeting challenged the members to invest in the sacco so that they can continue earning living through dividends even during their retirement.

Members from Uasin Gishu, Elgeyo-Marakwet and TransNzoia converged at Cathedral Catholic Church in Eldoret and Nandi county members met at CITC in Kapsabet town. Nakuru, Kabarak, Rongai, Solai, Elburgon members converged at the Nakuru showground.

Chief Executive Officer Moses Chebor

In a move to expand the Sacco’s asset and financial base, the members unanimously agreed to contribute equity shares voluntarily to build the proposed Marigat plaza. The proposed three storey building which will be the third office in the region after Kabarnet and Eldama Ravine is expected to expand financial services to the grassroots and take services closer to over 100,000 members across the expansive region. The Sacco Vice chair Kipruto Kiptoo encouraged members to make the project a success through floating equity shares of a minimum contribution of Kshs. 10,000.

“It is the happiness of every member to earn a shilling into his or her pocket even when you retire so you can earn their living without any difficulties, though it is possible only with proper management of resources during your active age in life,” Ndoge said. He further challenged the members, especially teachers, to start identifying viable projects like poultry or vegetable farming which can easily make them earn an income even after quitting their teaching job.

Boresha Sacco Chairman Mr. Albert Chebiegon. cooperative society, which was initially interpreted to belong for teachers before rebranding its name in 2012 to Boresha before

Members were also urged to embrace use of technology and the sacco has acquired a new code USSD *434# which is more secure and efficient. And membership portal so as to ease operations in checking balances, accessing FOSA statements,

Kiptoo said the new building will be beneficial to the current members and future generation, adding that the sacco has helped members improve their standards of living through accumulation of savings and creating a source of funds at fair and reasonable interest rates. “I am encouraging our members to invest more in the project as it will in turn promote your economic welfare and interest” he said. At the same time the vice chair encouraged farmers and small entrepreneurs to join the giant

Boresha Sacco members keenly follow proceedings at the educational meeting held at the Eldama-Ravine offices. FEBRUARY MARCH - MARCH - APRIL 2019 | SACCO TIMES


GROWTH SERVICE PROVIDER viewing guarantors, dividend report and inquiry to the Sacco.

said. The visionary Chief Executive noted that the society’s impressive performance will see members earn increased dividends on share capital at 12 percent, interest on member’s deposits at 9 percent and bonus on equity shares at 8.3 per cent.

The members also had a chance to exercise their democratic rights of electing Board Members who were set to retire based on the Sacco By-Laws. The Sacco Annual Delegates meeting (ADM) is scheduled for 23rd to 24th March with the educational meetings held being a prelude for the same. Besides, the Sacco Chief Executive Mr. Chebor said they have since developed several new products that will cater for members from different sectors. “Our goal is to add value to our members by focusing on improved performance, operational efficiency and strong capital base. For instance we have seen our members savings grow to Kshs. 4 billion up from 3.4 billion in the year 2017,” he

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Members attend Boresha Sacco educational meeting held at the Kenya School of Government (KSG)Baringo Central Sub-county on February 23. /Barasel Talam

The society Chairman Albert Chebiegon said that the Sacco has created an opportunity for wealth through savings and credit and created a source for affordable credit and financial services. He said they treat retired members as Sacco heroes and heroines, encouraging them to continue maintaining membership so that they can continue enjoying services like other members. “Retirement is beckoning to our members, one day you will retire, you won’t go to work, your

cash flow from employment will reduce. Check your retirement date on your pay slip and invest your money wisely,” said Chebiegon adding that members should set their targets such that they clear all loans before retirement. KNUT Assistant Executive at Koibatek-Mogotio Branch Mr. Caleb Kibichii lauded the sacco for recruiting ECDE teachers to the sacco so that they benefit from their services. Nonetheless, members across all branches were given the freedom and liberty to field questions directly to the Sacco management who then had the choice to explain a wide range of and position of issues. Members were also educated on various products and services on offer at the society and also impressed to embrace MemberRecruit-Member strategy where existing members are called


Government is hunting down officials who misuse Sacco savings - Matiang’i


nterior Cabinet Secretary Fred Matiang’i has said the government will pursue officials who misuse Sacco funds. In the recent past, some Saccos have been facing management and operational challenges due to malpractices by those in leadership positions, putting members’ savings at risk. However, the CS says soon arrests will be made on directors and Sacco officials mismanaging or looting Saccos. “We will not spare any individual involved in the loss of Sacco funds,”CS.

Interior Cabinet Secretary Fred Matiang’i addresses officials of Police Sacco in Nairobi, March 6, 2019.

delegates on Wednesday in Nairobi during their annual delegates meeting. The Kenya Police Service asset base grew by 19.4 percent to 28.9 billion shillings with deposits standing at 17 billion shillings.

Matiang’i also said there are measures in place with the Ministry of Housing to ensure that 20 per cent of every housing programme is set aside for the police department.

He called upon the disciplined officers to join Saccos for their own benefit.

The CS has also encouraged Police Sacco to develop training programmes for its members on how to spend and manage their savings.

“One way in which we are going to support co-operative movements is to punish and bring to book those who misuse the Sacco resources. We will go after these people. We are hot on the trail of the Ekeza officials and others,” Matiang’i said.

His remarks come as Ekeza Savings and Credit Cooperative Society is on the verge of collapsing because of managerial issues. Members are demanding their cash back.

He was addressing Police Sacco MARCH - APRIL 2019 | SACCO TIMES



Ndege Chai Sacco enlarges its

territories with record performance By Benedict Tirop


dege Chai Sacco has embarked on a recruitment drive for members in the existing and new catchment areas with the latest being the outgrowers in Silibwet-Bomet County believed to have a good potential for membership. The Sacco is also encouraging members to increase their savings in order to ensure financial stability of their society. “Although the membership of the society increased by 3 per cent to 37,286 in the period under review, we are still looking for more members. We are targeting 6,000 new members this financial year( 2019). It is also imperative to teach the members not to withdraw all their savings but cultivate a culture of saving,” says the Sacco Chairman Daniel Sang. The society’s income increased by an impressive 22 per cent from Kshs. 215,127,034 to Kshs. 262,702,815 million, share capital from Ksh. 174,099,963 as at Dec 31,. 2017 to Kshs. 181,444,517 in 2018, an increase of 4%, with the member deposits increasing by 6 percent from Kshs. 1,796,147,978 in 2017 to Kshs. 1,901,161,749 in 2018. However, the society’s loan portfolio reduced by 4 per cent from Kshs. 2,144,454,000 in 2017 to Kshs. 2,067,329,126 as at the end of 2018. “This reduction is due to the loans recovered from members who left as result of the voluntary early retirement as well as the phased closure of Flowers,” said the Chairman. “I hereby thank delegates for approving the 3 percent retention



” Ndege Chai CEO Mr. Gilbert Bett (R) with the (Hon.) Treasurer Mrs. Linner Turgut and Sacco’s (Hon.) Secretary Ms Dorothy Mukio during the 41st ADM. from all normal and additional loans applied. We have begun seeing the benefits of this move as the difference between the total loan portfolio and total deposits has started to narrow and with this trend continuing, we will move towards the ultimate goal where deposits will be more than the loan portfolio. This will enable us serve our members from our own resources with minimal external credit,” the Chairman told the delegates.

Ndege Chai Chairman, Daniel Sang with the Guest Speaker.

The chairman added, “Each loan that is not serviced on time forces the Sacco to make provisions as required by the regulations. To make matters more difficult, the regulations have been tightened further whereby A Sacco is required to provide 1 percent general provision for performing loans.” He received applause on loan turnaround time from delegates who agreed that the society had made great strides in approving and paying loans on time.

The Chief Guest speaker adressing the delegates.

OUTREACH According to the Chairman, in 2018, the loan turnaround time improved and promised members that the management will strive to ensure that their members got loans in a timely manner so as to meet their aspirations. “I wish to urge members, starting with you delegates, to ensure the payment of loans in order to reduce the provisions that have to be made. On our part will ensure that the credit policy is implemented to the latter so as to ensure quality loans.” The Chairman says his Sacco has complied with the seven ratios out of the eight ratios set by SASRA, which are monitored monthly “I am pleased to inform you that we have finally made enough reserves to enable us comply with the minimum 8 percent required. Our intention is to ensure that we continue to be in compliance with all the regulatory ratios so that our license to operate is renewed annually.” He thanked members for supporting the board and called for continuation of the gesture so that service and returns to them continued to improve. The Sacco has set aside Kshs. 38.5 million towards achieving the IFRS 9 and Institutional capital to asset ratios,which are some of the key requirements by SASRA. The Chairman thanked delegates who he described as playing

Delegates elect members to constitute a new board. a pivotal role in the growth of the society through continued recruitment of new members. On the corporate social responsibility, the society is playing a key role in uplifting the standard of living in their catchment areas through provision of scholarships to bright and needy children. Other achievements include the Sacco becoming position 1 in capitalization (Core Capital), position 2 in offering education and training to staff,members and committees, best society with the best coverage and the best in Gender balance in the board of directors, among others during the last Ushirika day.

Ndege Chai Sacco CEO Gilbert Bett (Right) leads the issuing of certificates to the elected board members.

The society also participated in the 2018 edition of the Champions of Governance awards and were proud to receive the First Runners Up in the Co operatives category,

Ndege Sacco Chairman Daniel Sang reconises that mebership has increased by 3 percent.

Delegates follow the ongoing proceedings of the 41st ADM at Chebululu Sports Club-Kericho.

second runners up in the CEO of the year category (Mr. Gilbert Bett) and Overall winner –Chairman of the Year (Mr. Daniel Sang.) The long serving chairman was re-elected un-opposed together with his treasurer Mrs. Linner Turgut and the Chairman of the Supervisory Committee Mr. Paul K. Mutai. MARCH - APRIL 2019 | SACCO TIMES


NDEGE CHAI SACCO LIMITED MISSION To facilitate the mobilization of savings and provision of cost effective financial and non-financial products and services to our members/ customers in Kenya and beyond. SLOGAN Prospering together CORE VALUES • Integrity and honesty • Creativity and innovation and • Excellence and quality. OUR PRODUCTS & SERVICES M-Banking (*882#) M-Ndege Chai Mobile services provides mobile banking services to our members. Members are able to transact in their mobile phones by dialing *882# and following with simple steps provided. M-Ndege Services • Salary Advance and Jipange loan • Balance Inquiry • Bank to M-pesa Mpesa: Apart from sending and receiving cash through our Mpesa outlets, members can deposit cash to their Fosa accounts, make loan repayments and savings using the PAYBILL option of Mpesa and using the Ndege Chai business number 637 637. e.g For Deposits DE ID No. - Amount For Fosa (saving) SA ID No. - Amount For Normal Loan NL ID No. - Amount For Additional Loan AL ID No. -Amount For Advance V ID No. - Amount For Jipange Loan JL ID NO. - Amount ATM Service: We are connected to Co-operative Bank’s Sacco Link Network and members can access their cash at any Coop Bank ATM countrywide and any VISA branded ATM or merchant outlets like supermarkets. LOAN PRODUCTS 1. Normal Loan This is development loan product and meant to assist a member initiate and finance development projects. Features. • Repayment period is 60 months, • Interest rate is 13% p.a - reducing balance. • It is based on 3 times unwithdrawable deposits. • Loan is processed within a month. 2. Additional loan This refinancing loan product and is like a top up that facilitates completion of an ongoing project/investment or can start a new project altogether. Features • Maximum repayment period is 60 months • Interest rate at 13% p.a reducing balance • Loan is processed within a month. 3. Emergency Loan The loan facility helps a member met emergency situations that were un foreseen. Features • Maximum repayment period is 12 months.



• The loan is processed within a day with maximum processing period being week. • Interest rate is 13% per annum on reducing balance. 4. Jipange Loan (enhanced and rebranded) Improved Features: • Is FOSA salary-based product • Repayment period 4 months • Interest rate 4% per month • Online Jipange Loan application is done 5. Maziwa Loan-New • Applicant must have been a member for the last six months and a member to a dairy cooperative society. • Expected income from sale of milk must be channeled through FOSA. • The Loan amount is times the deposits. • Maximum loan amount will be Kshs.150,000. • The repayment period will be 12 months. 6. Asset Finance (Boda Boda) Loan-New • Repayment period is 18 months. • Has to be guaranteed by 4 guarantors. • Logbook to be retained by the financier until clearance of the loan. • Member to contribute Kshs 15,000 of the cost of the motorcycle. SAVINGS ACCOUNTS 1. Children’s Account Members are encouraged to open this account for their children. It helps instil a saving culture for kids when they are still young. Accounts operation by parents/ guardians. 2. Holiday Account And Christmas Account The Sacco encourages members to take time off work to relax and savour life. To this end, a member can start a Holiday Savings Plan with the Sacco. Christmas Savings Account also gives members an opportunity to treat themselves well after year end. 3.School Fees Savings Account Interest paid on savings account based on amount saved. 4.Groups Savings Account • Minimum balance of Ksh 1,000 • Negotiable interest rate. Fixed Deposit account with negotiable interest depending on amount and period. • Group members who must be account holders have access to credit facilities • Two passport sized colored photographs of officials/ signatories • Registration Certificate and constitution of the group. • Minutes of the meeting held by the group approving the opening of the account 5. Joint Saving Account This is a saving scheme for spouse or partners who have mutually agreed to make deposits in a joint account. The partners should apply the account indicating their names, copies of their national identity cards and a passport-sized photograph for ach of the applicants. 6. Akiba Kuu Savings account This is a savings facility that takes care of your investment plans with a conveniently short term to medium term investment arrangement. Features: • Based on your (net) salary and ability to invest, • A regular deposit of any amount is allowed.

• Interest rate is competitive. 7. Fixed Deposit Account Members with liquid cash which they do not intend to use in the near future or have money for a long term project are encouraged to fix it in this account to earn an attractive interest instead of keeping it idle. OUR COMMITMENT TO SERVICE We are committed to: • Offer excellent service with courtesy, honesty, integrity and impartiality; • Handle your queries and needs promptly and confidentially; • Upon receipt of your application for admission as a member, the society will acknowledge your application and advice you the same day on deductions. Processing Loans Duration: • Normal & Additional loan- 1 month maximum. • Emergency loan - 1 day to 1 week maximum • Online Salary advance- promptly • Online Jipange Loan - promptly • Our customer service officers are available to attend to all customer queries and give advice to members as required. LAST EXPENSE CLAIMS 1. Principle Member - Kshs. 100,000 2. Spouse - Kshs. 60,000 3. Child - Kshs. 30,000 Email:- Members can receive their statements via email directly from our system. Business hours Our Back Office and headquarters is open from 8:30 a.m to 5:00 p.m during weekdays and 8:30 a.m to 1:00p.m on Saturdays. FOSA’s will be open from 8:30 a.m to 4:00p.m during weekdays and 8:30 a.m to 1:00 p.m on Saturdays. NOMINEE FORM: Members are advised to update their next of kin (nominee) to reflect their current status. ACHIEVEMENTS Our Saccos is among the first deposit taking Sacco’s to be licensed by SASRA in 2011. this gives us confidence as a good corporate citizen. Participated in champions of governance award in 2017 and 2018. over the years the Sacco has continued to perform well and continues to receive several accolades including during Ushirika Day celebrations. The Sacco has continually paid competitive rates of dividends/ interest annually since 1980. CORPORATE SOCIAL RESPONSIBILITY The society is mindful of the welfare of the community social needs and has contributed immensely to this end. • Secondary school scholarship is awarded to the 2 best boys and 2 best girls (in KCPE exams) from among our members. • Donations and annual visits to the less privileged in the society including children’s homes/ Orphanages, Youth activities and environmental conservation. • Industrial attachment/ internship Opportunities to college students.


Lengo Sacco to recruit new members in Mtwapa and Mariakani

The society also witnessed a 22.8 percent growth in revenue to 38,883,484 from 31,646,063 in the year that ended on December 31, 2017. The report also indicates that the Sacco assets grew from 158,666,130 to 200,764,759 which is a 26.5 percent as compared to 7.7 percent in 2017. Members’ deposit went up with 22.9 percent in 2018 to 132,582,945 compared to 17 percent the previous year.

Section of Lengo Sacco delegates during their ADM. Photos by ANthony Mwachiro. By Anthony Mwachiro


he deposit taking Sacco is now targeting top towns in Kilifi County with a membership recruitment drive.

As a result of increased membership, share capital of Lengo grew up by 45 percent to 15,293,629 as compared to 24 percent increase in the year 2017.

The ADM was held on March 2, 2019 at Red Cross hall in Malindi where the Chairman presented the society’s performance during their financial year 2018. His board of management assured delegates that they are committed to ensure they work in partnership with all relevant

“This 2019, the Sacco intends to do more marketing targeting Mtwapa and Mariakani areas so as to increase our membership,” said Sacco Chairman George Ndaa, when he addressed delegates during their annual delegates meeting ADM. According to the report, the Sacco has continued to record impressive performance currently and in the other financial years. In 2018, the Sacco registered 3,303 new members from 11,292 by the end of 2017 to 14595, a move that the management maintains have increased its share capital.

Lengo Sacco Chairperson George Ndaa, addressing delegates during their ADM at Redcross Hall in Malindi. MARCH - APRIL 2019 | SACCO TIMES



Lengo CEO William Karani explaining a point to delegates durinmg the ADM.

whenever they are called to.

County and beyond.

“The society spent 414,352 on education in the year under review, with an increment of members’ intake of 52 percent on education, ” read a section of the supervisory report to members.

Mwasi maintains Lengo is still strong as most Sacco of same calibre were struggling and urged the management to take the opportunity and maximize.

Also present at the ADM was Kilifi County cooperative development officer, James Mwasi who urged the Sacco to be careful as they focus on investing more on ICT to enable them serve its fast growing members. According to the Co-operative officer, financial institutions were losing cash as a result of cybercrime with more focus shifting to Saccos according to Serianu report.

Lenngo CEO william Karani and Chairperson George Ndaa (right) shares a point durng their ADM at Malindi Red cross hall. stakeholders to overcome challenges that might hinder smooth growth of the Sacco. Lengo was the first deposit taking Sacco to present its approved accounts to members, with a positive trend witnessed in all aspects despite challenges in the working environment. The Chairman says his board is committed to equip members with education for easy decision making a sober deliberation on matters pertaining to the growth of the society. The similar sentiments were echoed in the supervisory report committee who urged members to spare time and attend to education days and training



Lengo CEO William Karani explaining a point to delegates durinmg the ADM.

“We encourage technology but we need to consider security of the systems to avoid loss of members’ investments,” said Chairman. The Sacco which initially drew its members from the former municipal council, according to the cooperative officer today has network that can be used to recruit members from all over

Kuscco Coast and North Eastern regional director, Alfred Mlolwa, urged Lengo members to focus more on recruiting youth in to their society calling each delegate to be a good ambassador of the Sacco. He urges the Sacco to play safe adding that there are people taking advantage of the common bond by Saccos to play fraud. “As Sacco we want every person to come on board, however its good to know your customers in and out. It will not be good to members if a member comes in takes a loan and disappear for good.” Advised Mlolwa. The regional director, urged Lengo Sacco members to take investment loans rather than consumption adding that investments and savings will act as security once they retire from their current employment.

CONTACT US ON:0715 882 191 / 0707 700 084 / 0719 987 817



MISSION To mobilize savings among members and provide quality financial products and services to improve their living standards.

• No minimum operating balance. Benefits • Free daily service at one’s business point • One can access loan after 3 months.

VISION To be the leading SACCO in providing quality financial products & services to members.

Tuinuke Pamoja Account United we stand divided we fall. Tuinuke Pamoja Account is specially designed to accommodate those who wish to achieve their goals through collective resources.

PROFILE Lengo Sacco Ltd was started in 1976 and was drawing its membership from the Permanent Employees of the Municipal Council of Malindi, who have now been taken over by the County Government of Kilifi. Since that time Lengo Sacco Ltd has undergone tremendous growth and has opened its common bond to non-employees of Kilifi County Government, we are therefore extending our sincere welcome to the public at large with the vision of growing together. OUR PRODUCTS AND SERVICES I. FRONT OFFICE Jawabu Account An account that answers all your financial questions any time you need cash. Access your money 24/7 with no limit. Requirements • ID photo copy of the applicant. • Passport size photo (take at the branch) Lengo Savings Account An account tailored to embrace those with passion to save. Lengo savings account welcomes your decision to build savings in an easy effective way. Features • Initial deposit – Ksh 500 • Minimum operating balance Ksh 2,000 • Account maintenance – free • Withdrawal restricted to only once a month. Tunza Junior Account Do you want your child to be financially smart? You as the parent hold the key to this dream. Tunza Junior exposes your child to the saving culture making him/ her part of the banking process. Accounts Benefits • A complimentary Education tour for active Tunza Junior annually. • Access to your money once in three months. Features • Initial deposit – Ksh. 300 • Minimum operating balance – Ksh. 1,000 • Monthly account maintenance fee – Nil • Withdrawal charges – Ksh. 100 Requirements • Birth certificate of the child • ID photo copy of the parent / guardian • Passport size photo (taken at the branch) Bakisha Account Designed puporsely for small traders i.e. boda, mama mboga…. Features • Free account opening

Features • Initial deposit – free • Minimum operating balance – Ksh. 1,000 • Withdrawal charges – Ksh 100 Requirements • Member’s ID photo copies • One of the members must be an existing member of the Sacco • Passport size photos (taken at the branch) Sherehe (Christmas / Idd / Birthday), Account An account designed to meet the demand of our Christian and Muslim members. Sherehe account allows you to save specifically for these festives. Features • Withdrawals shall strictly be at the beginning of the festive month. • No account maintenance fee • Withdrawal charges – Ksh 100 Mama Jiandae Account This product is designed to allow expectant mothers save and meet their future delivery expenses and the needs of the new born baby. Features/ benefits • No ledger fees • No minimum operating balance. • Allows daily, weekly or monthly deposits. • Withdrawals only at the maturity date • Withdrawal charges – Ksh 100 Corporate Account A business account that allows registered organizations / institutions to cary out their banking in a convenient manner. Features • Initial deposit – Ks. 2,000 • Minimum operating balance – Ksh 2,000 • Ledger fee – Ksk. 100 • Withdrawal charges – Ksh. 100

These are loans extended to registered members after a period of six months. Extended loan amount should be three times the member’s shares. Requirements • Three guarantors and a witness. • ID photocopy of the applicant. • Repayment period up to 48 months. • Interest rate 1.75% on a reducing balance. Development loan top up A facility extended to those already servicing a development loan. Requirements • One should have serviced at least ¾ of his/her current loan. • A 10% penalty will be charged on the remaining balance. • 2% interest rate Smart Loan • Should have a payslip • Should be a member • Amount depends on the basic salary • Interest rate of 1% per month. Somesha Loan This is a special facility designed to all needy students in primary, secondary and college level. Requirements • The fees structure for the whole year (signed and rubber stamped) • The student’s admission letter (stamped) • ID photocopy of the applicant Features • Interest rate is at 1.75% on a reducing balance. • Repayment period: up to 48 months for college and 12 months for primary and secondary level. Okoa loan • Access upto Ksh. 50,000 within 24 hours. • A special facility for the salaried members. Features • Does not consider the 2/3 rule. • Repayment period is upto12 months, • Interest rate is at 2% on reducing balance. Requirements • Recent pay slip • ID photocopy • Three guarantors

Requirements • Copies of registration certificate • Copy of the Company Constitution • Copy of minutes • ID copies of the signatories

Bakisha Loan • Bakisha Account Holders • Access upto Ksh 50,000 • Repayment period up to 6 months. • Interest rate 1.5%.

Advances This is a service tailored for the salaried members of Lengo Sacco (FOSA Shares is a Must)

Emergency Loans • In case of an emergency, you can access a loan from Lengo Sacco.

Special Advance Repayment period: up to five months Interest rate 10% on reducing balance

Requirements • Supporting documents • 3 guarantors and a witness • Repayment period up to12 months • Interest rate 1.75% on a reducing balance.

2. BACK OFFICE Development Loans

Unity & Quality Services31 MARCH - APRIL 2019 | SACCO TIMES


Mentor Sacco records15.2 percent growth in income interest, projects more profit confirmed that the Sacco membership has steadily grown from 16,376 in 2017 to 19,056 contributing to the Sacco’s asset base growth Kshs. 891,103,474 from Kshs. 6,272,852 to Ksh. 7,163,955,474 as at October 2018. “This demonstrates that the Sacco has therefore moved to the league of the big Saccos in the country as per our performance indicators adding that Mentor has become a tier one Sacco in the country because of its remarkable and consistent performance,” noted Mrs. Ndegwa. By Eric Bosire ccording to the financial report Presented to members at the 42nd annual general meeting (AGM) by the Sacco chairman, Anthony Kamau, total income grew from Kshs. 896,329,058 million in 2017 to Kshs 1.04 billion in 2018, with the total revenue increasing by Kshs 142.165 Million to 1.03 Billion compared to Ksh 896.32 Million as realized in 2017.

With membership growth, asset base, profitability, robust capital base and members empowerment being the core focus, Mentor Sacco bagged top awards during last year International Cooperative Alliance day fete. These include the best capitalized Sacco in large category Saccos and highest interest on improvable deposits by urban Saccos in the country.


According to the CEO, the Sacco’s performance growth has been attributed to the commitment of member’s spirit in embracing savings not only for purposes of borrowing but as a retirement plan.

The report further indicates that interest income for the Sacco grew by 15.2 percent to over 973 million up from the previous year that was 844 million with the Sacco chairman saying that compared to 2017, the Sacco spent less expenses a decline from the previous financial year. “Also to note, the Sacco spent less in 2018 as total expenses declined from 331 million to 328.6 million for the year under review,” Mr. Kamau said during their (AGM) that was well attended by its members and other stakeholders at the Murang’a Sports Club in Murang’a Town. The Sacco whose asset base is Kshs. 7.16 billion has significantly improved thanks to the members



Mentor Sacco CEO Joyce Ndegwa during the 4nd AGM that was held at Murang’a sports club recently. co-operation in contribution and an increase in members share capital has therefore announced an increase in dividend distribution to its members as compared to the year 2017. The Sacco’s Chief Executive Officer Mrs. Joyce Ndegwa

“Through savings, we shall also combine efforts in mobilizing the society’s deposits translating to increased funds for lending which further improves on our returns,”she said. The Sacco chairman attributes this to the retained financial stability and soundness through building a stable Sacco with adequate capitalization, resilient enough to withstand external shocks even in times of crisis hence sustaining its aggregate core capital and capital adequacy ratios.

PERFORMANCE use of the available quick cash mobile banking as the most efficient and convenient channel of service delivery. “We urge all members to embrace this platform as it is a 24 hours seven days a week platform. As in the past year we have transacted over 2billion in the year under review. However you should also enjoy other services like Sacco link

Mentor Sacco board mebers being introduced to the members. “The aggregate core capital increased by over Kshs.232 million to reach Kshs. 948million up from 716.3 Million that was recorded in 2017. Thus advancing the Sacco’s impressive liquidity ratio improving upto 24 percent from 18 percent in 2017. Likewise, the core capital (total assets) was 13 percent compared to 11 percent in the previous year. While the Core Capital (Total Deposits) improved from 16 percent to 18 percent with the institutional capital base remaining at 8 percent,” he also noted. The event was graced by Chief Officer from the Ministry of Co-operatives Mr. Geoffrey Njang’ombe who commended the Sacco leadership for steering its tremendous growth and insisted that in order for the Sacco to realize their vision and mission; there is need for continuous member recruitment, enhanced Sacco products and awareness of its products so as to enhance its efficiency in future.

each” and the capacity to borrow is intended on what the borrower has as per the regulations of SASRA. “We urge our members to take our products seriously as this will make our deposits grow. We therefore have to raise our standards high so that our loan book grows, which is our main business to ensure that we grow our share capital and improve on retention to keep up with the pace”, Mr Kamau the Sacco chairman said. On her part the CEO Mrs. Joyce Ndegwa said members should encouraged colleagues to make

Mentor Sacco Chairman Mr Antony Kamau giving his address to the members during the AGM.

cards and service from our satellite Branches in Nairobi (Ngara), Kenol, Thika and Murang’a as well as Kangema, Ithanga, Kandara, Kangari, and Kiriaini satellite branches respectively for easier service delivery.

“He who pays the viper pays the tune. He said adding that the management should be watchful of external borrowing to avoid Sacco external debts. The Chief guest dded that the Sacco should emphasize on the concept of co-operatives as a question of from “each as to

Sacco Members being awarded after the event. FEBRUARY MARCH - MARCH - APRIL 2019 | SACCO TIMES


OUTREACH He added, “When we approached the administration here (I mean the County government, area member of Parliament, MCA), expressing our interests to establish a new branch, the question that became common was, how much are you bringing to the people of Mlolongo? I want to say that we have brought to you Kshs 50 million. It is you now to come, borrow and do or start your business.”

The Member of Parliament Hon. Patrick Makau together with the Chairman Simon Kitheka unveil the new UTS Sacco in Mlolongo town.

UTS Traders Sacco opens a new branch in Mlolongo By Malachi Motano


raders in Mlolongo town, one of the fast-growing towns in Machakos County located along Mombasa road had all the reasons to smile after Universal Traders Sacco (UTS) opened a branch that will offer them banking services. According to the Sacco Chairman Simon Kitheka, this comes at a time when the Sacco is gaining membership from the area. People would travel many kilometers to Machakos to find the services. “Nyinyi vijana wa hapa Mlolongo, tumekuwa wa kwanza kuwaletea bank hapa. Zile pesa mnapata kwa hizi biashara zenu ndogo ndogo, hakikisheni mumewekeza zingine kwa Sacco hii halafu baadaye mkuje kukopa na kuendeleze biashara hiyo…… You members of the youth here



UTS Sacco officials register new members after the official opening in Mlolongo.

in Mlolongo, we are the first Sacco to bring to you banking solutions. Ensure you save the little money you get from your small businesses so that you can later borrow to boost your businesses,” said the Chairman.

Encouraging the youth and women to start small businesses that could potentially grow into big investments, the Chairman opened accounts with UTS for the first 20 small traders who had come to witness the official launch of the branch. The area (Mavoko)Member of Parliament Patrick Makau who was also the chief guest said the government is doing all its best to support micro-finance and asked UTS Sacco leaders to ensure they abide to all the set rules by the regulator SASRA. Promoting the saving culture, the Member of parliament opened accounts at UTS for all the traders who had attended

OUTREACH the launch and even to those who had no businesses. “How many of you have small businesses? It doesn’t matter how small or big raise your hands!!” Again how many of you don’t have businesses? Just raise your hands where you are.” Chairman I am opening accounts to all these people and from today they must be members of UTS Sacco,” said the Member of Parliament.

Residents and Traders in Mlolongo gather to witness the opening of UTS new branch.

The Chairman gave more examples, “John Mwaura our delegate from Embu joined the Sacco with only Kshs. 100. He has been saving and borrowing and has built an ‘empire’ in Embu. One time he borrowed Kshs. 20 million for a youth project, a venture which earns them upto 26 million weekly.

The Member of Parliament who was also ‘endorsed’ by members at the launch as the Governor come 2022 opened accounts for 55 people who had businesses but did not have accounts with UTS at Kshs.1000. He also opened accounts for 38 others who were not in business but are willing to start. Honourable Makau then gave out Kshs. 6,000 to the Chairman of Mlolongo business people to open accounts with UTS, other Kshs. 6,000 to the Bodaboda riders to open accounts with the same Sacco and another Kshs. 6,000 to women enterprise groups also to have accounts with UTS Sacco. One of the delegates John Mwaura, also promised to double money in the accounts of those (the new accounts) who will have saved upto Kshs. 100,000 in the next six months. The area member of County Assembly (Syokimau Mlolongo ward) Daniel Mbevi also pledged to open accounts for 200 women. Felix Mambo Nduli Who was also a Candidate for Syokimau Mlolongo in the last general elections pledged to open accounts for 30 people with the same Sacco. “This is a Sacco to watch si

hivihivi (not just a simple one). Within Ukumbani, we have Kitui Governor Charity Ngilu as a member. We also have other great politicians like Kalonzo Musyoka, now Mavoko MP Patrick Makau becoming a member just to mention but a few.” (On a lighter note), even if you count great businessmen in the county, you wont miss me in the list, we have come from far,” said the Chairman.

Sacco Chairman Simon Kitheka (centre), CEO Domnic Mutunga (left) and the Chief Guest Mavoko, Member of Parliament Patrick Makau confirms a point during the opening ceremony.

UTS Sacco board members (Chairman Simon Kitheka third left and CEO Domnic Mutunga left) pose for a group photo before the official opening of the branch.

Another board member who has done great investments from saving and borrowing at UTS is Mary Munene from Runyenjes who according to the chairman mobilised her whole village into a milk production project, bought a cooler from her borrowing and today the Sacco is receiving milions of shillings from the members of her project who opened accounts with UTS. Universal Traders Sacco Ltd (UTS), previously known as Masaku Traders Sacco Society Limited, was registered in 1991 as a co-operative society in response to the economic needs of the local population. “Indeed the Sacco has come from far. From 33 members, the Sacco today has branches in Machakos, Kitui, Embu, Kathiani, Tala, wote and, now Mlolongo and will soon reach the capital city (Nairobi),” CEO Domnic Mutunga revisited the journey UTS Sacco has travelled.

MP Patrick Makau who was the chief guest registers to become a member of UTS Sacco. MARCH - APRIL 2019 | SACCO TIMES







Motivated by good results, Kitui Teachers Sacco enters 2019 with a bang By Malachi Motano


itui teachers Sacco moves into 2019 ready for the future and motivated by the strong results posted in 2018. According to the Sacco chairman Dr. Joseph Kithome, the revenue generated for the year under review was Kshs. 899,021,568 up from Kshs. 759,128,852 in 2017, representing an increase of 18 percent. “This we attribute to sustained growth in members’ loans and deposits. Our strong capital position with share capital growth of 117 percent closed the year at Kshs. 334,779,635 up from Kshs. 153,950,070 giving us differentiated flexibility to continue growing the business,”he says.

A section of Board members and guests follow proceedings at the 42nd AGM held on Feb 9, 2019.

“As a result of that performance I propose to you for consideration and declaration

The chairman was presenting his report at the 42nd annual general meeting (AGM) for Kitui teachers Sacco held at Kitui Multipurpose Development and Training Institute on February 9, 2019.

He says the Sacco had started off shares drive exercise and so far has achieved Kshs. 170,000,078,33 which is slightly above half of the targeted amount of Kshs. 300 million.

His report indicates that member deposits grew by 15 percent closing the year at Kshs. 3,384,874,551 from Kshs. 2,932,515, 953 previously. The report further indicates that loan (being the biggest asset of the Sacco) grew by 20 percent closing the year under review at Ksh. 4,048,961,563 up from 3,384,582,841 in the last financial year.



of interests on deposits of 12.5 percent, dividend on shares at the rate of 13.4 percent and housing dividend of 8 percent for the year ended December 31, 2018,” Chairman makes the proposal.

“I remind members that shares drive is very beneficial to the society and will enable us to start bank buy offs and dividend advance through out the year. Please ensure you buy these shares to take advantage of the future benefits which include good returns and strong ownership of the Sacco,” Dr Kithome makes the plea. Kitui Teachers Sacco CEO Florence Mutua welcomes members to the 42nd AGM.

He also reports that the Sacco did micro- credit roll- out in

SCALING THE LADDER all the branches during the year under review and has so far recruited 161 groups which have already started group savings and getting loans. The chairman says the construction of Makueni FOSA at Makindu nears completion and its operations expected to begin in the month of February. The board has also implemented the use of credit reference bureau CRB) as part of good practice. The Sacco introduced customer care tent or desk at the head office and branches for better services.

In the spirit of partnership, the Sacco partnered with Cooperative bank to issue members with Sacco personal cheque which require members to apply to be issued with cheque to enable them enjoy the current account services. The Sacco, as a financial institution has complied with laws and regulations by SASRA, KRA among others.

Chief guest Hon. John Munuve the current Chairman SASRA board make his remarks at the Kitui Teachers Sacco 42nd AGM in Kitui town.

“Under the same, we are able to offer cyber services like downloading of the payslips, KRA pin P9 forms. This has reduced member movements and enhanced confidentiality of members details.”

The Sacco is now proposing to register a foundation for CSR whereby even the donors and well wishers can chip in and partner to support the needy to uplift their standard of living through courtesy of the esteemed Sacco

He notes that the Sacco is growing very fast and needs to be sustained and supported well by exhausting the current market and venturing into new markets with strategies. “In pursuance of this, the Sacco has started logistics on Sacco agency whereby members will be able to access sacco services, deposits, withdrawals and balance inquiry are taken closer to members and also enable the sacco to tap on the unbanked through POS- (point of sale). This will save time and transport to visit the Sacco offices to withdraw,” he says.

On the corporate social responsibility (CSR) Kitui teachers Sacco in 2018 sponsored a total of 12 students with three in the schools with special need in national and extra-county schools.

During the year under review, the Sacco educated 5616 members in all their regions as required by the law that cooperatives must provide education and training to members, elected representatives, and staff. Sacco Chairman Dr.Joseph Kithome clarifies a point he made in his report to members who followed keenly his presentation at tthe 42nd AGM.

With the business environment changing time and again, the board does not want the Sacco to be left behind and therefore looking into modernization of some of its old plazas. “This will be done on the need basis and as per the budget”

“As a Sacco we have implemented this and has witnessed improvement in customer care, positive attitude, and new skills in our staff, quality decision making in our board and informed general membership of the Sacco,” Chairman Recognizing that cyber crime has become a great threat to Saccos as per Serianu report, Kitui teachers Sacco has carried out system audit to ensure that the Sacco’s data is safe.

Sacco Treasurer and chairmanEducation committee. MARCH - APRIL 2019 | SACCO TIMES


COMMON BOND The chairman appreciates that no institution can operate without a strategic plan which defines the path to achieving the desired goals. In a complex and difficult economic times now that Sacco movement is changing significantly fast.

Kitui teachers Sacco to rebrand for a larger market

“Our strategic plan 2019-2023 based on pillars of finance performance, business development, ICT and risk, human resource management and corporate governance, is therefore about our critical path to achieve asset base of Ksh 10 billion and provide maximum returns to members,” he says. The board also proposed rebrand and change the name of the Sacco to enable it achieve the Sacco’s vision which is to be a market leader in financial solutions globally. A Sacco that enjoys the benefits of market maximization to occupy space rather than place, market diversification, ability to venture in micro-credit businesses, global national outlook, attract investors and savers, have competitive advantage and maximization of the benefits of opening a common bond. Success comes with challenges, in 2018, the Sacco lost 52 members through demise. The Sacco also experience a problem of some members who are not committed to service their liabilities responsibilities leading to loan default which intern affect other members who carry the burden on their behalf “Members must be careful when guaranteeing one another.



By Malachi Motano

The proposed rebranding and change of name of society is meant to enable us achieve our vision which is to become a market leader in financial solutions globally and enjoy the benefits of market maximization to occupy space rather than place, market diversification and ability to venture into microcredit business and many others,” says Chairman Dr. Joseph Kithome. The proposal was backedup by the chief guest Hon. John Munuve who is the current board Chairman of Sacco Societies Regulatory Authority (SASRA).

Sacco Members follow the proceeding at the 42nd AGM.

“Former Kiambu teachers Sacco broke their common bond re-branded to Metropolitan Sacco and today has asset base of 12 billion. The former Kirinyaga tea farmers have become Bingwa Sacco and the list is endless. Due to re-branding, the Sacco’s assets base have doubled if not tripled,” he mention few Saccos that have grown after rebranding. They were speaking at the 42nd annual genera meeting of Kitui teachers Sacco held on Saturday February 9, at the Kitui Multipurpose training and development institute.

KITUI TEACHERS SACCO LIMITED PO. BOX 254, KITUI, KENYA Kitui Head Office: Telephone: +254 (20) 8014596

Mwingi Branch: Telephone: +254 (735) 318207

Mutomo Branch: Telephone: +254 (20) 2458605

Kyuso Branch: Telephone: +254 (739) 689557

Mutito Branch: Telephone: +254 (706) 212124

Together,We make a difference” VISION To be a Market Leader in Financial Solutions Globally MISSION To uplift Members’ standards of living through provision of innovative and quality financial products and services. LOAN PRODUCTS INVESTMENT LOAN • Maximum of deposit holding times 4 and 4.5 for share drive bought over 20,000 • Subject to 2/3 rule • Repayment period within 84 months • Competitive interest rate at a reducing balance • Security options - Guarantors - Applicants deposits NORMAL LOAN • Maximum of deposit holding times 3 and 3.5 for share drive bought over 20,000 • Subject to 2/3 rule • Repayment period within 48 months • Competitive interest rate at a reducing balance • Security options - Guarantors - Applicants deposits CAPITAL LOAN • Maximum of deposit holding times 4 and 4.5 for share drive bought over 20,000 • Subject to 2/3 rule • Repayment period within 84 months • Competitive interest rate at a reducing balance • Member must capitalize dividends for the entire period of the loan • Security options - Guarantors - Applicants deposit

HEKIMA LOAN • No maximum amount qualifying • Subject to members ability to pay • Repayable within 18 months • Competitive interest rate at a reducing balance • No waiting Period (i.e. instant) SPECIAL LOAN • No maximum amount qualifying • Subject to members ability to pay • Repayable within 12 months • Competitive interest rate at a reducing balance • No waiting Period (i.e. instant) SALARY ADVANCE LOAN • No maximum amount qualifying • Subject to members ability to pay • Repayable within 5 months • Competitive interest rate at a reducing balance • No waiting Period (i.e. instant) PRIME LOAN • No maximum amount qualifying • Subject to 1/3 of members net salary from employer. • Repayable within 18 months • Competitive interest rate at a reducing balance • No waiting Period (i.e. instant) M-PATA LOAN • Half of members net salary after all deductions • Deposits x 0.5 (1/2) • Minimum amount Kshs 500 • Salary to be channeled through FOSA for at least one month • Repayable within one month.

EMERGENCY LOAN/SCHOOL FEES LOAN • Maximum of deposit holding times 3 and 3.5 for share drive bought over 20,000 • Subject to 2/3 rule • Repayable within 12 months • Competitive interest rate at a reducing balance • No waiting Period (i.e. instant)

SHARES DRIVE • Buy shares to increase societies share capital

SUPER LOAN • No maximum amount qualifying • Subject to members ability to pay • Repayable within 24 months • Competitive interest rate at a reducing balance • No waiting Period (i.e. instant)

Benefits of share drive i) High returns ii) Dividend advance throughout the year iii) Increased deposit multiplier on loaning for shares drive above kshs 20,000 iv) Bank buy offs

How to buy i) By cash ii) Booster loan (interest free) iii) Dividend capitalization

SAVINGS PRODUCTS FIXED DEPOSIT ACCOUNT • Minimum Amount of Kshs 50,000 • Interest rates varies from 10% to 14.75% per annum • Minimum period to earn interest is 3 months,6 months,9 months or 12 months • Withholding tax of 15% statutory requirement. TOTO/CHILDREN ACCOUNT • Minimum contribution of Kshs 100 • Interest rate of 5% per annum HOLIDAY ACCOUNT • Minimum contribution of Kshs 100 • Interest rate of 5% per annum JIINUE ACCOUNT • Minimum contribution of Kshs 100 • Interest rate of 5% per annum SACCO SERVICES ATM-VISA SERVICES • Withdraw money from any Visa enabled ATM machine • Buy goods • M-pesa services at prevailing market rate SMS BANKING • • • • • • •

Send salary credit alerts Cheque credit alert Credit top up alert Fixed deposit interest credit Funds transfer Loan credit alert Mini statement alert


Withdrawing money from accounts via M-pesa Deposits money to account via M-pesa Pay loan and deposits(shares) via m-banking Make utility payment i.e. electricity bill, water bill etc


Sale of bankers cheques contemporaries Accepting cheques and deposits Loan processing at the same fee as above Salary processing at nominal fee Pension processing MARCH - APRIL 2019 | SACCO TIMES



Thamani Sacco proves the best financial services provider in Tharaka Nithi Rebranding To achieve the envisioned growth within its growth path, the Sacco recently changed its name into a dynamic, crosscultural and futuristic title; ‘Thamani Sacco Society Limited’.

By Malachi Motano


hamani Savings and Credit cooperative society (Sacco) continues to record impressive performance in its financial years, proving to be the best financial services provider in the giant Tharaka Nithi County.

“We are now confident that our outreach will be swift, tremendous and effective serving all cadres of society with our competitive, dynamic, affordable, financial products consciously developed to meet customer expectations and accelerate growth among members and stakeholders as well,” Chairman.

Registered on 3rd November 1987 under Co-operative Act CAP 12 0f 1997 mandate of mobilizing member’s savings and availing credit to them, has lived its objectives and made drastic achievements aimed at accumulating saving and creating a source of funds to lend to its members at fair and reasonable interest rates. “Initially known as Nithi Tea Growers Sacco Ltd with operated back office activity until September 2000, when it opened front office activity (FOSA) and also broke the common bond (tea growers) to allow people from other agricultural undertakings and business enterprises to become members,” says Sacco Chairman Jackson Ireri Abida.

CEO Rose Kithinji says, Professionalism, integrity and accountability, team spirit, customer focus and being Innovative are the Sacco’s Core values, without forgetting our motto of ‘Bridge to Wealth.

The board conducts Members Information Days (MIDS), with the Annual General Meeting (AGM) being the ultimate gathering of all members as well as stake holders, to keep members posted on the Sacco performance, products and financial status. “It is during this forum that

In October 2011, the Sacco was licensed by the Sacco society regulatory authority (SASRA) and todate, the Sacco has 30 members of staff, Seven(7) board members and three (3) Supervisory Committee Members, drawn from all the electoral Zones within the County. The Sacco has witnessed exponential growth with membership growing tremendously to the level that it has now set its eyes further afield.

Members of Thamani Sacco follow the proceeding of their AGM in Chuka.



REDEEMER compared to Kshs. 20,700,000 in 2017 “We have increased the surplus by 2,270,915,” says the Chairman. Interest on members deposit was at the rate of 7 percent, dividend on share capital at a rate of 10 percent, dividend on development shares also at 10 percent and interest on savings deposit at 2 percent.

Thamani Sacco Chairman Jackson Ireri and the CEO Rose Kithinji at the AGM held in Chuka town

As a way forward, the Chairman says says the Sacco must continuously educate its members about the Sacco, products and services that it offers to grow its membership, requests members to increase

important and crucial issues are discussed. Members freely engage the management and together chart the way forward. Resolutions passed are then handed over to the management for implementation,” says the chairman. The Sacco offers variety of products to and welcomes everybody who wishes to join. The Chairman says “Our doors are open. We value all our members hence we ensure they receive the best service over. We have two key departments; Front Office Activity (FOSA) and Back Office Activity (BOSA). All our members can now access the Sacco link ATM services in all the 47 counties,” Chairman.

Members of the supervisory committee follow Chairman Jackson Ireri’s presentation.

During the last financial year (2018), the share capital increased by 10,577,695 from Kshs. 36,951,512 in 2017 to Kshs. 47,469,168. The loan balanced as at December 2018 was only 292,299,747 from 292788,005 previously, meanwhile loan disbursement increased from Ksh. 214,910,474 in 2017 to 224,452,719 last year. The total rebate that was paid to members for the year 2018 amounted to Kshs. 23,570,915,

Board of directors. MARCH - APRIL 2019 | SACCO TIMES


REDEEMER He was speaking when presenting his report to the members at the Sacco AGM in Chuka town Thamani Sacco head office is in Chuka Town in Tharaka Nithi County. We have a fully operational branch in Chogoria Town, Marima and plans of setting wings to other Towns within the county are ongoing. The Sacco’s vision Statement reads, ‘To be the best financial products and services provider in the region,’ and the mission statement is ‘Offering satisfactory, affordable and convenient products and services in an effective manner.

Members of Thamani Sacco registering during the AGM. financial institutions, reduce loan default rates and increase members as well as increase members loyalty. The chairman is happy with the steps that government through the state department of cooperatives is taking to improve performance in the sector which contribute about 30 percent of the national deposits and hopes that cooperative policy document which is at its final stages will reflect on the cooperative principle

their share capital in order to accumulate funds for lending and open agency to bring services close to members. The Chairman says by practising the above, would prepare the Sacco to meet the many challenges in the sector like high competition from established



Thamani Sacco Chairman Jackson Ireri presents his report to the members at the AGM in Chuka town.

The Sacco has lived its objectives and made drastic achievements aimed at accumulating saving and creating a source of funds to lend to its members at fair and reasonable interest rates.

“Professionalism, integrity and accountability, team spirit, customer focus and being Innovative are our core values, without forgetting our motto of ‘Bridge to wealth’, CEO Rose Kithinji

FOSA Products • Savings Account • Fixed Deposit • Current Account • Education Account • Thamani Junior Account • Monthly crop advance • Special crop advance • Mini & Bonus advance • Milk advances • Salary advances BOSA Accounts • Micro credit & Group Loan • Asset Financing loan • Development Loan • Investment loan • Personal loan • Emergency & School fees • Motor vehicle & Boda Boda Production loans • Tea & Coffee Crop loan • Horticulture loans • Pigs, Fisheries & Poultry • Milk pro

Thamani Savings and Credit Cooperative Society CREDIT FACILITIES



Products and services

• This is a product for sacco members who are interested in high milk producing dairy cows. • Repayment period 24 months • Consideration deposit x 4 • Maximum loan 150000 • Certificate from veterinary officer • The dairy cow must be in calf or the calf should not be more than 3monthsold. • Atleast 3 guarantors.

• Photocopy of national ID card • Original tittle deed • Security title deed

12. SCHOOL FEES LOAN • • • •

Maximum amountKshs100000 Deposits x3 Repayment period12months Security 3 guarantors

13. PRODUCTION LOANS BASED ON TEA PROCEEDS REQUIREMENTS • Tea bonus pay slip • Tea proceeds to be channeled through the sacco society • Security 3guarantors • Repayment period 12 months


2/3 salary rule to be observed Repayment period 24months Security 3permanent employees as guarantors Collateral may be required as additional guarantor


Maximum amountKshs100000 Deposit x3 Repayment period 12 months Security 3 guarantors

21. GROUP LOAN/MICRO • • • • •

Minimum loans Kshs30,000 Repayment period 12 months Consideration x5 deposit Subsequent loan to be increased by 50% Security – guarantors by group members (coguarantors) • Loan amount above Kshs 200000,will need additional collateral guarantee.

PROCESSING FEES COST 1. Valuation of land 2. Land board attendance 3. Registration charge/legal agreement drawn by laywer 4. Stamp duty 1/1000 x loan amount plus stamp duty. MOTOBIKE FINANCING LOAN • • • • • •

Deposit x 4 Maximum loan 120000 Cheque addressed 3guarantors and logbook Repayment period 2 years Daily payment


• • • •

Maximum number of pigs 10 Repayment period – 6 months Deposit x5 Subsequent number of pigs to be increased by 50% • Security guarantors, or group members( co – guarantying) • Loan above Kshs 200000 shall need addition security




• Maximum loan amount Kshs 300000 • Consideration average of 3 months production times rate of payment. Times 18 months • Security 3 gurantors.


Mobile Banking *882# 1. Withdraws • Press *882# to access the M- Banking menu, Input your PIN. • Type then number against title. 1 select withdrawal then send ok. • Select a/c to withdrawal from. • payBill 170573 • money transfer • thisis offered onrequestand money may transferred using cheque off systems applicable standing services are offered at reasonable charges. • Bankers cheques • They ar sold atvery fair prices from the saving account • Other services offered • Cheues deposits for clearance • N.H.I.F facility • Processing all payouts • Safe custody services • Tittle deed • Marriage certificates • Jewels • Shares certificate • Wills

• Unwithdrawable deposit amount x3 • Repayment period – 5 years (60) months • Security tittle deed

The banking services are offered to tea growers, coffee growers, dairy farmers and members of the public at large

15. DEVELOPMENT LOAN • • • • •

Maximum loanKshs500000 Deposit x3 Repayment period 36months Security 3 guarantors Collateral maybe required as additional security


Other requirements • Group registration by ministry of gender ,social and culture services • Group should open a savings account • Minimum 10, members maximum 20.

• Must be registered institution/ group by relevant body • Must havean acive account foratleast 11 yr • Certified minutes from the instiution • Maximumloan of 30000000 • Shares deposit x 4 • Repayment period is 24 months

THAMANI SACCO SOCIETY LTD P.O. BOX 467, CHUKA. TEL: Head office 0645630545 / 0770622018 BRANCHES: Chogoria 0770622116 | Marima 0770621921 | Kibugua 0770622021 | Chuka town 0776710220 Email: MARCH - APRIL 2019 | SACCO TIMES



Court bars Commissioner of Cooperatives from appointing new Ekeza Sacco management


Nairobi Court has barred the Commissioner of Cooperative Development from installing a new management committee at Ekeza Sacco Ltd. Senior Resident Magistrate M. Murage ordered that the current management should stay in office until the case is heard and determined. The ruling comes after 11 Sacco members moved to court seeking to stop the Commissioner from interfering with the management of their Sacco.



Members of Ekeza Sacco at a past AGM at Safaricom Stadium Kasarani.

The Sacco’s license was cancelled and was placed under receivership by the government last year over non-compliance with the law. The case will be heard on March 13. The founder and chairman of the Ekeza Sacco Bishop David Kariuki Ngari ‘Gakuyo’ in January put some of the Sacco’s properties up for sale to raise money to refund members’ savings.

They include a residential property within Nyari Estate near Village Market in Nairobi, a hotel in Juja and a house on half an acre along Thika-Garissa road in Makongeni. Others are 50 acres in Kilimabogo Thika, 100 acres in Kabati, Murang’a county and a quarry in Kabati. The Sacco’s license was cancelled and was placed under receivership by the government last year over non-compliance with the law.

HEAD OFFICE KERUGOYA P.O. Box 83-00300 Kerugoya | Tel: 0724 256 461 | CEO Direct Line: 0798 369 696 CUSTOMER CARE LINES: H/Office: 0707 555 825 / 0707 555 802 KITENGELA BRANCH: 0711 356 753 / 0707 555 892 / 0707 555 886 MWEA BRANCH: 0722 781 092 / 0707 555 863 KISERIAN: 0740485382 EMAIL: |

Ollin Sacco

Together We Prosper How to become a member One only needs to fill a membership application form and attach a copy of his or her national ID. Application forms are available in all our branches and also can be downloaded from our website. Deposit contributions Regular deposit contribution can be done through the following ways:• Monthly check-offs • Cash deposits • Dividend/interest capitalization • Mobile banking PRODUCTS & SERVICES SAVINGS PRODUCTS ORDINARY SAVINGS ACCOUNT This is an account that is used for processing salaries, pensions and normal savings. Features • Competitive interest rates • No withdrawals limits • Use VISA branded ATM and mobile banking to operate the account. • No ledger fees. FIXED DEPOSIT ACCOUNT This is an account that earns interest on savings over a period of time. Features • Competitive interest rates • Reasonable minimum amount of KSh. 20,000 • Can be used to access a loan. • You forfeit interest if you withdraw before maturity CALL DEPOSIT ACCOUNT This is an account that is flexible to deposit savings and can be used to earn reasonable interest on money that is idle. Features • The funds can be recalled any time and earn interest. • Earn interest on daily basis • Competitive interest rates

Features • Competitive interest rates • No withdrawals limits • No ledger fees. STOP GAP ACCOUNT This is an account for savings meant for retirement purposes. Features • Earns competitive interest rates which are compounded annually. • Withdrawals are done after retirement • No minimum opening and operating balance • No ledger fees. CHILDREN’S ACCOUNT This is an account meant for children between age of 0 to 18 years. Features • Free bankers cheque to school • No minimum balance • No ledger fee • Withdrawals is 3 times a year • Free banking and fun day for children To open the account the parent/guardian to the child requires the copy of the ID and child birth certificate/ birth notification. CAPITAL LOAN This is a loan for long term investment for members. Features • The loan is 3 times multiplier subject to 1/3 rule as per government regulations. • Competitive interest rate • Repayment period is 84 months • Applicant to have a minimum share capital of Kshs. 40,000. • The loan is secured by guarantors INVESTMENT LOAN This is a loan for capital investment such as development of commercial plots, residential homes amongst others. Features • The loan is 3 times multiplier subject to 1/3 rule as per government regulations. • Competitive interest rate • Repayment period is 72 months • The loan is secured by guarantors DEVELOPMENT LOAN This is a product to cater for capital development.

This is an account for those willing to save jointly.

Features • The loan is 3 times multiplier subject to 1/3 rule as per government regulations. • Competitive interest rate. • Repayment period is 60 months • The loan is secured by guarantors

Features • Competitive interest rates • No withdrawals limits • No ledger fees.

This is a loan to buy off loans from other financial institutions on behalf of members.


GROUP SAVINGS ACCOUNT This is an account for registered self help groups. Features • No ledger fee • The group can access a loan(Pamoja loan) BUSINESS ACCOUNT This is an account for business people and enterprises.


Features • This is a check off loan for members in the TSC and civil service only. • The member’s salary has to pass through the SACCO or fill in the paypoint forms. • The loan to be appraised using 1/3 basic salary rule • The loan to be 5 times member deposits • Maximum repayment period is 72 months • Competitive interest rate • Security will be guarantors

OLLIN PREMIUM LOAN This is unsecured loan for government employees(TSC and civil servants) Features • This is a check off loan • The loan requires 20% of loan to be rolled back to deposits. • Repayment period is 60 months

• • • •

The loan is 3 times member’s deposits Competitive interest rate The maximum repayment period is 24 months The loan is subject to 1/3 rule as per government regulations • Secured by guarantors FANIKISHA LOAN This is a short term loan open to all salaried members whose salary passes through the SACCO.

ESTATE LOAN The loan is for the landlords/lady’s who want to expand their businesses. One has to open an estate account and channel the rental income through it for a minimum of 3 months. Features • Loan qualified is subject to 75% of monthly rental income. • Competitive interest rate • Repayment period is 72 months • Valuation of the property has to be done • Property is charged in favour of the SACCO as security of the loan SUPA LOAN This loan is available to all salaried members who are not employed by the government. Features • Members needs to save for at least 2 months • The loan is 3 times multiplier. • Competitive interest rate. • Repayment period is 48 months • The loan is secured by guarantors FOSA LOAN This is a loan open to all salaried members whose salary passes through the SACCO. Features • This is an instant loan to a maximum of Kshs. 1,000,000. • Competitive interest rate. • Repayment period of 60 months • Security is guarantors EMERGENCY LOAN The loan is meant to take care of unforeseen events such as hospitalization, funeral expenses and court fines. Features • The loan is 3 times multiplier subject to 1/3 rule as per government regulations. • Competitive interest rate. • Repayment period is 12 months • The loan is secured by guarantors EDUCATION LOAN This is a loan meant to cater for school, college and university fees. Features • The loan is 3 times multiplier subject to 1/3 rule as per government regulations. • Competitive interest rate. • Repayment period is 12 months • The loan is secured by guarantors OLLIN SCHOLARS LOAN This loan is available to finance all levels of education. Features. • This is a check off loan. • The loan is processed instantly.

Features • The loan is processed the same day. • Competitive interest rate. • Repayment period of 18 months • Security is guarantors OKOA LOAN This is a one month loan open to all salaried members whose salary passes through the SACCO. Features • The loan is processed the same day. • Also the loan is accessible via mobile banking platform *645# • Competitive interest rate. • Repayment period of 1 month ALPHA LOAN This is a loan for the newly recruited teachers and civil servants who have salary accounts with the SACCO but are yet to receive the first pay. Features • The loan is processed the same day. • Maximum amount qualified is Ksh 100,000 • 20% is rolled back to the deposits • Competitive interest rate. • Repayment period of 36 months • Security is guarantors BIZ LOAN This is a loan for business persons to fund their businesses. Features • A member saves for 2 months • A member qualifies 75% of the business proceeds • Competitive interest rate. • Repayment period of 36 months MAPATO LOAN This is a loan available to mapato savings account holders. Features • A member have to save for at least 4 months before loaning • The loan is 2 times ones deposits • Security is guarantors • Repayment of 24 months • Competitive interest rate ZION LOAN This is a loan for churches that can be used to access credit facilities to finance church projects such as land acquisition, construction, vehicle purchase, furniture purchase and equipment for the church such as music equipment. Features • Encourage the church offering to be passing through the zion account • Save for at least 2 months • The loan is 10 times deposits. • Competitive interest rate • Repayment period of 60 months • Security of the loan to be guarantors or charged and valued title deed.





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Welcome to our first edition of the Sacco Times Magazine for the year 2019. We continue to give a detailed analysis of emerging trends in th...


Welcome to our first edition of the Sacco Times Magazine for the year 2019. We continue to give a detailed analysis of emerging trends in th...