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SASRA: Revival of the 2018 Bill-Streamlining Co-op Officials.

S Hariet W. Masai

CSR Amid Covid-19: Co-operative Coronavirus Response Committee.

2020 International Youths Day: The Era of Young Co-operators.



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





Kenya Police Sacco makes a hefty donation in support of the fight against Covid-19

• Challenge 2025: Digitalization of the Global Co-operative Movement. • Loan Defaulters in Peril: Saccos’ Access to CRB Reports Gains Momentum. • Ushirika Day Postponed: A Black Swan Event in the Co-operative Movement. www.saccotimes.co.ke







ATM Services


• Pay for goods and services

• Repayment period 36 months • Minimum deposit ksh. 1,500 per month and ksh.50 for insurance per member.


NAME:............................................................................................................................ • Withdraw cash from any Vis a branded ATM


A/C No. .......................................................................................................................... SPOT CASH (M-BANKING)


• Maximum deposit holding times five subject to 2/3 rule

• Dial *645# or *882#

P/No. .............................................................................................................................. • Withdraw cash from your account via BIASHARA LOAN

• Repayment period within 60 months

• Eligible for a loan after 3 months of savings • Deposit multiplied by 3 • Repayment for the first loan is within 12 months • Minimum deposits kshs. 1,500 and ksh 200 per month for insurance.

• • • • •

M-PESA Pay for loans via M-PESA Deposit cash to your account Make utility payments via M-PESA Transfer cash to another account Buying airtime from account

M/No. .......................................................ID No. ........................................................


• Maximum deposit holding times five subject to 2/3 rule

JOIN DATE. ...........................................SIGNATURE..............................................

• Repayment period within 72 months PREMIUM LOAN

• Maximum deposit holding times five subject to 2/3 rule • Repayment period within 84 months GRANT LOAN • Maximum deposit holding times five • Repayment period within 48 months • Repayment through standing order in fosa • Loan appraised based on payslip net pay JIJENGE LOAN • Maximum deposit holding times five • Loan paid with other sources of income which passes through fosa • Repayment period within 48 months EMERGENCY LOAN • Maximum deposit holding times five subject to 2/3 rule • Repayment period within 12 months • No supporting documents • Instant on application EDUCATION LOAN • Maximum deposit holding times five subject to 2/3 rule • Repayment period within 18 months


OTHER INFORMATION • Member can apply for a loan advance at a commission • Long term loans can be topped up after servicing for six months while short term loans top up is after servicing for three months. • All loans have to be secured either by: • Self guarantee 80% of deposits • Guarantors based on limit of deposits • Collateral- Title deed FOSA PRODUCTS SALARY ADVANCE • Salary pass through fosa • Repayment period within 12 months SALARY IN ADVANCE • Salary pass through fosa • Repayment period within 1 months FIXED DEPOSIT • Interest rate of 8% p.a • Minimum deposit is ksh. 10,000 • Minimum period of 3 months to earn interest • Interest rate negotiable above kshs.1 million ADV (Alternative Delivery Channel)

LIPA NA MPESA • Pay Bill 883050 SAFE CUSTODY • Safe keeping of documents • Annual fee of Ksh. 300 CLASS C MEMBERSHIP • Have a withdraw able deposit account • Membership drawn from individuals to groups • Access to safe custody and fixed deposit account facilities • Can negotiate an advance against amount in fixed account RETIREMENT PACKAGE • • • •

Minimum kshs. 300 p.m Earn interest Can deposit bulk cash Payable after retirement

FOSA ACTIVITIES • • • • • • • •

Fosa savings accounts Salary processing Bankers cheques Clearing Cheques Children A/CS SMS banking Standing Order services Mpesa

P.O BOX 1931, NAKURU TELEPHONE 051/2212415/6 Mobile: 0722-388616 FAX: 051/2215189 EMAIL: info@cosmopolitansacco.co.ke | WEBSITE:www.cosmopolitansacco.com SACCO TIMES | AUGUST - SEPTEMBER 2020

SASRA: Revival of the 2018 Bill-Streamlining Co-op Officials.


CSR Amid Covid-19: Co-operative Coronavirus Response Committee.


2020 International Youths Day: The Era of Young Co-operators.



Hariet W. Masai

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




Kenya Police Sacco makes a hefty donation in support of the fight against Covid-19

Joan Mutindi Marketing Executive

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



JOAN MUTINDI Marketing Executive


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

• Challenge 2025: Digitalization of the Global Co-operative Movement. • Loan Defaulters in Peril: Saccos’ Access to CRB Reports Gains Momentum. • Ushirika Day Postponed: A Black Swan Event in the Co-operative Movement. www.saccotimes.co.ke







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

EDITOR-IN-CHIEF Reinhard Mosagwe EDITORIAL June Njoroge STAFF WRITERS Anthony Mwachiro, Enock Kipturgut, Clarence Imbayi, Kipkoech Chirchir, Dickson Adhiambo, Doreen Atenya, Vincent Munga, Alexander Kimuri, Lilian Mutiso, Irene Atieno, Austin Nyambuoro, June Njoroge. SALES & ADVERTISING Margret Ndung’u Enock Kipturgut DESIGN AND LAYOUT: Smartex Creative Graffix Email: smartexgraffix14@gmail.com Tel: +254 721 496 922 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: satimeseastafrica@gmail.com Website: www.saccotimes.co.ke

S Hariet W. Masai

Accosca: Address To The Co-Operative Movement In The Wake Of Covid-19


CSR Amid Covid-19: Co-operative Coronavirus Response Committee


Ushirika Day Postponed: A Black Swan Event in Co-operative Movement


Kenya Police Sacco makes a hefty donation in fight against Covid-19


2020 International Co-operatives Day: Co-ops for Climate Action


Imarika Sacco Collaborates with Kilifi County Government


SASRA: Revival of the 2018 Bill-Streamlining Co-op Officials


SASRA: Loan Defaulters in Peril as Saccos’ Access to CRB Reports


Cosmopolitan DT Sacco cushions members from Covid-19 pandemic


2020 International Youths Day: What Saccos Must do


Anxiety as Saccos operate on unapproved budgets


Kimisitu Sacco Takes a Forefront In Response To Cushion The Society


Metropolitan National Sacco Soars High in 2020


Qwetu Sacco Cushions Vulnerable Communities in Taita Taveta


Co-operative Tribunal goes Virtual to Clear Backlog of Cases


Ollin National Sacco Responds to Curb the Spread of the Covid-19


KPCU Members to Benefit from New Measures Rolled Out by Ministry


Kiambu Coffee Co-operatives Unite to Reform the Ailing Sector


Non-Deposit –Taking Saccos to spend half of their 2019 Budget


Matatu Saccos Spearhead the Fight Against Covid-19


How Saccos are Coping with Effects of the Covid-19 Pandemic


SaccoTIMES News Round up SACCO


Testimonials 46 View Park Towers, Utalii Lane, 17th Floor, Wing C, Suite 402 P.O. Box 41364 - 00100, Nairobi Email: satimeseastafrica@gmail.com AUGUST - SEPTEMBER 2020 | SACCO TIMES Cell: +254 722 663 953



EDITORIAL Dear Readers,


elcome to the 29th issue of Sacco Times Magazine. Even as we endure these tumultuous times spelled by the Covid-19 pandemic, we remain steadfast in playing our integral role, of keeping you informed, on all significant matters, pertinent to the Sacco Sector and the entire Co-operative movement on the whole. A raft of changes has happened in the sector since our last edition and as the premier and leading publication, we have left no stone unturned, in exclusively covering all of them, in this issue. However, our primary focus for this edition, has been Co-operative Social Responsibility in the wake of Covid-19. The Co-operative principles are very much alive, pertinently the 6th and 7th principles about ‘cooperation among co-operatives’ and ‘concern for the community’ respectively. It has been so refreshing, to see how cooperatives across the country have come together, bonded by these principles, to contribute towards the Covid-19 Co-operative Fund, through the Co-operative Coronavirus Response Committee (CCRC); to reach out to the needy and vulnerable in the society adversely affected by the pandemic. In this regard we have featured Kenya Police Sacco, Kimisitu Sacco, Imarika Sacco, Cosmopolitan Sacco, Ollin National Sacco and Qwetu Sacco; their strategies for coping with the pandemic, whilst still giving back to the society in their own capacity. The International day of Co-operatives, locally dubbed as ‘Ushirika Day’, set aside for the 4th of July might have been postponed, but this year’s theme,’Co-ops for Climate action’ could not have been more timely. The locust infestation is still upon us, which has been directly linked to climate change, there is a dire need for urgent action, to avert the natural disasters spelled by climate change. Collectively and in their respective capacities, co-operatives, can significantly impact the climate agenda. Amid these dark times, there have been some achievements to be celebrated, like the fact that Kenyan Saccos scooped the 2020 World Council of Credit Union’s (WOCCU) Membership Growth Award, during the Council’s recently held 2020 virtual AGM.The revival of the 2018 Sacco Societies (Amendment) Bill, is also to be celebrated, as it heralds a new dawn for the governance and management of Saccos. Loan defaulting will also be a thing of the past, as the access of CRB reports by Saccos, is gaining momentum, since DT-Saccos under SASRA were included as authorized



subscribers of credit data. Some employers released withheld statutory dues to Saccos, owing to the 30th of June deadline, by the National Treasury Cabinet Secretary, Ukur Yatani. The Co-operative Tribunal, has gone virtual to clear the backlog of cases and digitalization of Saccos is still ongoing, expedited by the pandemic. We have a piece on Challenge 2025, which advocates for the digitization of the entire global co-operative movement. Liquidity still remains a concern and Saccos across the board, have been embracing contingency funding plans, to continue serving their members, during these turbulent times. We were privileged to interview the CEO of ACCOSCA, Mr. George Ombado, and we have shared some key takeaways, from their ongoing series of webinars, aimed at assisting Co-operatives weather the storm, brewed by the Coronavirus pandemic; by engaging both the local and global co-operative movement. The 2020 World Council Young Credit Union Professionals (WYCUP) Virtual Forum, also took place and the key message at the forum was engaging and empowering young people to ensure relevance for credit unions going forward. In reiteration, International Youths Day is also coming up and we have a piece on youth inclusion into the sector and what Saccos need to be doing, to pool more youth membership into movement. We have all the aforementioned and so much more in this issue. On behalf of Sacco Times Magazine, I urge you to keep safe, by adhering to the stipulated precautionary guidelines, set by the Ministry of Health, to curb the spread of the coronavirus disease. Enjoy your reading! JUNE NJOROGE, EDITOR


Accosca: Address To The Co-Operative Movement In The Wake Of Covid-19 The Covid-19 Pandemic that continues to ravage the world at an alarming rate, has thrust many Savings and Credit Co-operatives (SACCOS) in a quandary. The African Confederation of Co-operative Savings and Credit Associations (ACCOSCA), has been at the forefront in assisting Saccos weather the storm brewed by the coronavirus disease. The organization has been holding webinars since the onset of the outbreak, to address pertinent issues, affecting the sector and offering strategies, that Saccos can embrace to offset the impact of the pandemic. Spearheading these webinars has been the Chief Executive Officer, Mr. George Ombado (ICUDE) and the ACCOSCA Chairperson, Mr. Cambridge Mdlalose (ADE), together with their team, the Kenya Union of Savings and Credit Co-operatives Ltd (KUSCCO), Sacco Societies Regulatory Authority (SASRA), World Council of Credit Unions (WOCCU), United States Agency for International Development (USAID) and other key contributors to the global co-operative movement. Sacco Times Magazine was privileged to interview Mr. George Ombado to shed more light on the status quo of the Co-operative movement in the wake of the Covid-19 pandemic. By June Njoroge 1. Thank you for making time to speak to Sacco Times Magazine, let’s begin with a brief introduction. Who is George Ombado and what is the role of ACCOSCA in the Co-operative movement in Kenya and other African nations? A. George Ombado is the current Chief Executive Officer at the African Confederation of Cooperative Savings and Credit Associations(ACCOSCA). He is a Development Economist, with a keen interest in Strategic Management and Discourse that shapes the developing countries, to attain financial inclusion and access.

ACCOSCA CEO, Mr.George Ombado, ICUDE.

B. ACCOSCA, is a PanAfrican Confederation of national associations of Savings and Credit Cooperative Societies, which has developed programs aimed at improving socioeconomic needs, through

savings and credit unions, partnering with various government bodies, development agencies and research institutions, so as to contribute towards mitigating challenges facing Africa in the 21st century. This is aimed at effectively supporting members, working on bringing services to the people, not generally served by the formal sector. 2. Covid-19 pandemic has thrust the economy into a turmoil, from your standpoint, what has been the greatest threat to Cooperatives, posed by the coronavirus? A. Liquidity challenge is the main issue; economic restrictions have been put in place due to the crisis. Many members in the sector, have been laid off and are withdrawing cash at an alarming rate, while also seeking loan moratoriums or restructuring at the same time. 3. What strategies should Saccos implement to address the pandemic? A. Saccos should be more proactive than reactive, in meeting their member’s challenges, and addressing them co-operatively. B. Saccos can halt all capital expenditure projects or rather postpone them to alleviate the mounting pressure. C. Saccos should seek out multiple funding options and lines of credit. D. They should educate their members about the importance of growing AUGUST - SEPTEMBER 2020 | SACCO TIMES


UPDATE their savings, during stable economic times and manage their own financial health. E. Central Finance facilities should be activated, to manage both excess liquidity and its lack thereof, across Saccos. F. This crisis should be awake up call to Saccos that don’t offer many and if at all any digital banking options to their members, to invest in technology. 4. Is the Sacco business model in Kenya resilient enough to recover from the impact of a crisis of such magnitude? A. With collaboration between the National Apex, Regulator and Union, Saccos and continuous education to their members, recovery is imminent and faster growth. 5. What measures have you taken to cushion your members against the full impact of the outbreak? A. Continuous member engagement, through webinars to advice on the best ways to approach the pandemic and ensure proper liquidity management. 6. What advocacy and regulatory relief has ACCOSCA accorded to the Co-operative sector? A. We have been organizing webinars and training sessions, to help our members get advice on how to deal with their members during this pandemic. 7. What are some digital solutions and remote service delivery that Saccos should be seeking to overcome the outbreak? A. Saccos should leverage on their online banking systems, for instance mobile banking



to avoid members visiting the banking halls to curb the spread of the coronavirus, in line with the stipulated precautionary directives set by the government. 8. Liquidity is one of the major issues that Saccos are experiencing during this pandemic, what is your advice to them? A. Look for facilities within the sector, that have a Central Finance Facility, to get funding to help mitigate liquidity issues. B. In future, Saccos should look into educating their members on the importance of preparedness for such a crisis by incorporating best saving practices. 9. What do you foresee as the future of the sector after the pandemic? A. We foresee a more digitalized sector, as it remains the only safe option for Saccos to reach their members during this turbulent times. B. Members are bound to increase their savings, in case of such a crisis in future. C. Saccos will also consider having products related to health security for their members, in case of such a pandemic in future. Below are some takeaways from the series of webinars ACCOSCA has been spearheading: A. Building synergies to promote inclusivity in Cooperatives (Webinar) Key Takeaways • Saccos need to embrace inclusivity, to foster growth by offering equal opportunities to all through: 1. Gender Inclusivity-Take affirmative actions in women leadership. 2. Reaching out to the Youth and empowering them as they are the future of the Co-operative movement. B. Helping members weather the Covid-19 storm through Financial Counselling Programs. (Webinar) Key Takeaways • Saccos should find out the financial health of their members and develop opportunities to help members assess their financial health. • Saccos should talk to their members about improving their finances by seeking financial counseling services or coaching, to help members improve their financial position. • Financial counselling/Coaching is beneficial to both the members and the Sacco.

To members, it helps to set goals, establish a plan to increase savings, reduce debt and have a wise spending plan. To Saccos, it improves member respect and loyalty, reduces delinquencies and charge offs, enhances productivity and grows membership. C.Adressing Liquidity Concerns and Formulation of Contingency Plans. Key Takeaways • Saccos need to adopt a trend to have extended liquidity and cash forecast requirements to address a one-years’ time horizon, to enable directors and management lead time to employ creative measures to satisfy cash outflow obligations. • Saccos liquidity contingency plans should cover: minimum cash and liquidity balances; permitted funding sources; available working capital; mix and capex permissions; opex reduction strategies. • Steps to creating a Contingency Funding Plan: 1. Measure the normal variation in cash flow 2. Determine the possible variation, resulting from a moderate deposit or loan repayment, typically 5% to 10% 3. Determine the potential variation resulting from a dramatic downturn in deposits and/or loan repayment typically 15% to 30%. D. Risk Management Framework- Saccos are faced with a lot of risks, which should be assessed and mitigated; in case of such a disaster.

UPDATE for Co-operatives, Mr Geoffrey Njang’ombe stated. Banking on the core co-operative principles of ’concern for the community’ and ‘co-operation among co-operatives’, Cooperatives across the country, have come together and contributed towards this noble course.

CSR Amid Covid-19: Co-operative Coronavirus Response Committee By June Njoroge


orporate Social Responsibility (CSR) has taken a whole new definition in the wake of the Covid-19 pandemic, that has thrust most sectors at the edge of a precipice, leaving no community unscathed. The impact that CSR initiatives by Corporates are making, cannot be undermined and has helped thousands of households, adversely affected by the Coronavirus pandemic. The Co-operative movement in Kenya, has been at the forefront, playing a significant role in reaching out to the needy and vulnerable members of the Society. The State Department of Cooperatives, created the Cooperative Coronavirus Response Committee (CCRC) and established a Co-operatives Covid-19 Fund, under the Co-

Ali Noor Ismail, PS, Co-operatives, Francis Kamande, Chairman, CCRC & NACHU and Lucia Mburu, member, Pamoja Achievers SACCO show the ‘survival co-op kit’.

ops Care initiative, in support of the government, to combat the coronavirus disease. The Co-operative movement in Kenya, has been at the forefront, playing a significant role in reaching out to the needy and vulnerable members of the Society. The State Department of Co-operatives, created the Co-operative Coronavirus Response Committee (CCRC) and established a Cooperatives Covid-19 Fund, under the Co-ops Care initiative, in support of the government, to combat the coronavirus disease. “The national government has made an appeal for local fundraising to address the pandemic. The Co-operative sector needs to organize itself and support the government in fighting the Covid-19 pandemic by assisting the needy and vulnerable affected members of the society.” acting Commissioner

Drawing membership from ten key stakeholder organizations, the Coronavirus Response Committee (CCRC), which has been tasked with mobilizing resources to cater to the most affected during the pandemic, has been inarguably delivering on its mandate of providing 500,000 households with the ‘Co-op survival kit’. The kit consists of one litre of cooking oil, two kilograms of beans, maize flour and green grams; precautionary gear, which entails masks and soap is also inclusive of the kit. The State Department, Cooperative Alliance of Kenya (CAK), National Co-operatives Housing Union (NACHU), Kenya Union of Savings and Credit Co-operatives (KUSCCO)Sacco Societies Regulatory Authority (SASRA) among others, are all stakeholder organizations in this initiative. “The sector will focus on non-clinical activities and mobilization of the necessary financial resources to support in minimizing the potential vagaries of Covid-19 in the sector and the general public.” noted Mr. Njang’ombe. The committee will collaborate with the National Emergency Response Committee, in line with the co-operative principle of ‘Education, Training and Information’, to serve a conduit to co-operative members in monitoring and disseminating information upon guidance by the Ministry of Health. CCRC also intends to lobby the government in the provision of support and relief post the pandemic. AUGUST - SEPTEMBER 2020 | SACCO TIMES


STOP CORONA!!! Sacco Times Magazine cares for you, and that’s the reason we want you to keep safe from the Coronavirus. Together we can stop the spread and stay healthy.


Stay at home.

Regularly wash your hands with soap or use a sanitizer.

Avoid touching your face, nose and mouth.

Always wear a fitting mask when out in public.

Observe Social distancing when in public of one metre away from the next person.

Pay Attention to Hygiene.

SIGNS AND SYMPTOMS Seek immediate medical attention if you show the following signs: • Fever • Coughing • Headache • Difficulty in breathing.

LET’S FIGHT COVID-19 TOGETHER You can get the latest updates on our website: Saccotimes.co.ke SACCO TIMES MAGAZINE! ALWAYS KEEPING YOU INFORMED! 8

#Stay Safe #We are in this together.



Ushirika Day Postponed: A Black Swan Event in Co-operative Movement By June Njoroge


020 Ushirika Day was called off due to the Covid-19 pandemic, making it a black swan event in the Co-operative movement hitherto. This, following the directive by the government to ban all public gatherings, as a precautionary measure, to curb the spread of the coronavirus disease. Similarly, all Annual General Meetings (AGMs) and Annual Delegates Meetings(ADMs), were postponed indefinitely earlier in March, until the eventual containment of the Covid-19 pandemic. The day which is annually scheduled for the 4th of July, is a global observance day set to reflect and celebrate the achievements of the Co-operative movement. The day also aims to strengthen and extend partnerships, between the international co-operative movement and other supporting organizations locally and globally. The theme for this year is Cooperatives for Climate Action; chosen specifically, because Greenhouse Gas emissions, are more than 50% higher, than it was in 1990 and global warming is destroying the climate system. This was in support of the United Nations Sustainable Development Goal on Climate Action. The National Council for Ushirika Day Celebrations’ Chairman, Mr Japheth Magomere, wrote to all cooperatives countrywide, informing them about the cancellation. The Council expressed apologies to co-operatives, some of which had already made adjudication submissions and required payments, that the Council has promised to reimburse.

‘Apologies for the inconvenience caused and especially to those that had already made their adjudication submissions, we shall ensure that appropriate reimbursements are made towards Ushirika day,’ noted Mr Magomere. Co-operatives, have been contributing towards the Ushirika Day budget, based on their annual turnovers; which is used to meet adjudication activities, sports events, publicity, hospitality and many other activities countrywide. Ushirika Day which is organized by the Ushirika Council and the Co-operative Alliance of Kenya(CAK). Traditionally, the co-operative sector holds a forum to launch pre-Ushirika Day activities such as cooperative sports, mobilizing blood donations and family fun activities. The aforementioned organizers of the event, consider key areas to award different co-operatives, such as credit management, capitalization, saving management, risk management, efficiency, technology optimization and improvement and overall institution management. Winners usually scoop trophies and certificates at a gala dinner, which culminates all events associated with the Ushirika Day celebrations. During the 97th Ushirika Day held in July 2019, the president Uhuru Kenyatta in his address noted the invaluable contribution made by co-operatives in the country. Savings and Credit Co-operatives(Saccos) make up about 45% of Kenya’s Gross Domestic Program (GDP), with an asset base of over Ksh. 1 trillion, mobilized savings and deposits in excess of Ksh 732 billion and a loan portfolio of 700 billion.

Ushirika Council Chairman, Mr. Japheth Magomere, OGW. In addition, the sector employs more than 500,000 people whilst necessitating self-employment especially through lending. In the long term pursuit of Vision 2030, the President identified cooperatives, as key vehicles with flagship projects and MediumTerm Plans already underway. Co-operatives are also key partners in the achievement of the Big 4 Agenda, all working towards the same endeavor; the ultimate realization of vision 2030. The Big 4 Agenda programmes cover affordable universal healthcare, decent and affordable housing, food security and nutrition, job creation and economic growth through manufacturing. An estimated 80% of Kenya’s population derives their income either directly or indirectly through Co-operative activities.

President Uhuru Kenyatta attend the 97th National Ushirika Day held at KICC Nairobi in July 20, 2019.

‘Kenya has the largest Co-operative movement in Africa and is ranked in the 7th position globally, making it very pertinent in the economic and social development of the country.’ the president further noted. AUGUST - SEPTEMBER 2020 | SACCO TIMES



Kenya Police Sacco makes a hefty donation in support of the fight against Covid-19 By June Njoroge


he distinguished giant Kenya Police Savings and Credit Cooperative Society Ltd, has made an indomitable donation to help members acting as part of the frontline combatants, in the fight against the Coronavirus pandemic. Police officers in all the forty-seven counties were the target beneficiaries of this gargantuan donation, that saw them adequately equipped with hand sanitizers, face masks and gloves to protect them, as they continue to carry out their critical role, during this tumultuous times. The dawn of May, saw the renowned Society distribute face masks, gloves and hand sanitizers, to police officers in the counties of Nairobi, Kiambu, Kirinyaga, Nyeri, Laikipia, Kajiado, Nyamira, Uasin Gishu, Narok, Bomet, Kisii and Homabay.The Sacco also made donations, to the Directorate of Criminal Investigation (DCI), General Service Unit (GSU) headquarters and also to officers manning various cessation points across the country.

The Inspector General of the National Police Service, Mr. Hilary Nzioki Mutyambai, receiving the donation from the Kenya Police Sacco National Chairman Mr. David Mategwa.

Spearheading the countrywide distribution were the Kenya Police Sacco’s Directors. Addressing members of the press, the National Chairman Mr. David Mategwa said the move is aimed at protecting members on duty, who are at the frontline, in the fight against Covid-19. He urged members to adhere to the precautionary measures, while carrying out their duties. “We have donated more than 480,000 gloves, 200,000 face masks, and 40,000 hand sanitizers for use by the National

Police Service officials and staff. We are doing this to make sure that our members are safe and protected,” said Mr. Mategwa. The Inspector General of the National Police Service, Mr. Hilary Nzioki Mutyambai, acknowledged the receipt of the donation from the acclaimed Sacco. ‘Our aim is to see the Coronavirus disease curve flattening and this can only be done through obedience to the stipulated directives by Ministry of Health,’Mr. Mutyambai said.

Inspector General of the National Police Service, Mr. Hilary Nzioki Mutyambai receives donations from Kenya Police Sacco National Chairman, Mr. David Mategwa and the Board of Directors, in witness of other dignitaries.



PHILANTHROPY His sentiments were echoed by Mr. Noor Gabow, the Deputy Inspector General of Administration Police (APS), who said that police officers have been doing an invaluable job, being at the frontline, guarding roadblocks and ensuring lockdowns are adhered to, on a daily basis, whilst still maintaining law and order all over the country. ‘The protective gear given by the Sacco will go a long way to protect police officers all over the country, I therefore commend the Sacco for this generous donation.’ Said Mr. Edward Mbugua, the Deputy Inspector General National Police Service (KPS) in reiteration. “Today, I received the PPE for COVID 19 Pandemic Protection, for use by Commissioners and NPSC staff from the National Chairman of Kenya Police Sacco David Mategwa, said the National Police Service Commission (NPSC) Chairperson Eliud N. Kinuthia. A consignment was dispatched to Uasin Gishu, Narok, Bomet, Kisii, Kisumu, Busia, Siaya and Homabay counties. Police officers in Laikipia, Nyeri, Kirinyaga, Kiambu, Marsabit and Isiolo Counties were also in receipt of another consignment. The Eastern region, saw the PPE’s presented to County commanders in Embu, Tharakanithi and Meru South. In a bid to cushion members from the harsh economic times, spelled by the Covid-19 pandemic, Kenya Police Sacco has reduced interest rates for members’ loan facility, to further enable police officers, to cope with the Covid-19 crisis. “Our focus is on the welfare of our members and in consequence, we have reduced interest rates on all loans which will come to effect from the 1st of May 2020.” Mr Mategwa said. The society has been supportive to members, as evidenced in the performance report of the financial year that ended on december 31, 2019.

Corporate Social Investment. The Sacco visited various vulnerable communities, including children homes, making food and clothing donations, during the financial year under review. The Sacco did not exclude its members, it donated sports kits, DSTVs and TV sets to National Police Service Commission and various police stations and field camps. The Society is also supporting the construction of nine classrooms at the Utumishi Girls Academy. The Society also currently sponsoring seventy students at various levels of high school. The Chairman reported that the 2019 KCSE class which was composed of seven candidates posted exemplary performance and are set to join university. Financial Performance Kenya Police Sacco paid out dividends on members share capital, at a rate of 17% and interest on deposits, at a rate of 10.5% during the 2019 financial year. The society continues to listen to members’ expectations, serving their needs through strong corporate governance and strategized management. This has earned its




stability in the market, despite the economic strife in the country, coupled with the repeal of the interest rate cap and now the Covid-19 pandemic. The Sacco’s asset base currently stands at Kshs.35billion, compared to the previous year, which recorded Kshs.29 billion, reflecting a 20.4% increase. This signifies the society’s stability in the co-operative movement, which has seen it ranked at the top, in tier 1 category. During the 2019 Ushirika Celebrations, Kenya Police Sacco was feted as the best managed society countrywide and employer based in the tier one category. It also ranked as the best Sacco in Credit Management countrywide and during the FIRE awards, it emerged as the second runners up, in the Sacco category. ISO CERTIFICATION The Society has implemented a quality management system based on ISO 9001:2015, making it the first Sacco in the country to acquire the prestigious certification; attained upon meeting the stipulated standard requirements for a quality management system (QMS). “The board continues to invest in quality management system, based on ISO 9001:2015 certification, which seeks to streamline the formulation of policies and procedures while proactively mitigating risks,” said the National Chairman Mr. David Mategwa during this year’s Annual Delegates Meeting (ADM), held on March 4, 2020. GCR Ratings The Sacco also has a stable rating from



the Global Credit Rating (GCR) due to strong capital position, adequate funding and liquidity and a solid risk management position. The agency revised ratings for Kenya Police Sacco to BBB(KE)/A3(KE) from BB+ (KE)/B(KE), utilizing information from audited financial results, budgeted financial statements, unaudited interim results and the latest internal or external audit reports to management. “The outlook is stable. We expect the capital position to remain strong at a level above 20%, driven mainly by strong earnings and a more conservative than peers’ dividend policy. The risk position is expected to remain in line with direct peers, but better than the sector,” noted the GCR report. Internet and Mobile Banking Platform. The Sacco is also well equipped with the latest core banking system that is based on Mobile Banking and Internet Banking channels, Investment Management System platform and Client Relationship Management platform among other platforms that has already registered a robust growth in operational efficiency. M-Tawi, a world class technology innovating banking solution, is the Sacco’s mobile banking platform which is the very definition of technology excellence, making for a one stop shop for financial services for the members from making deposits and withdrawals, loan applications, cash transfers and payment of utility bills. Members are able to transact at the convenience of their mobile devices. M-Tawi was birthed from the digital transformation journey dubbed ‘Pambazuka’, embarked upon by the Sacco in 2017, to provide members with a more interactive digital platform that enhances member experience. The platform provides the best value for members because of its interactive and user friendly interface. M-Tawi is accessible to members on Android,


Students sponsored by Kenya Police Sacco pose next to the National Chairman, David Mategwa. IOS and USSD via *653#; available on Google Play store and App store for download. Kenya Police Sacco Embraces the Big Four Agenda Under the Affordable Housing Pillar. The Sacco qualified among the 11 Saccos selected by the Kenya Mortgage Refinance Company to buy shares, in an initiative of the National Treasury and World Bank to support the affordable housing agenda by providing secure, long- term funding to the mortgage lenders consequently increasing the availability and affordability of mortgage loans to Kenyans. This is in tune with the Big Four Agenda under the housing pillar Kenya Police Investment Co-operative Society Ltd Home ownership remains but a distant dream for many Kenyans but the Sacco through its subsidiary the Kenya Police Investment Co-operative Society Ltd has turned it into a reality, by mobilizing resources to enable members to venture into the real estate market. Some of their available projects include, Serene Garden Estate (Kitengela), Kiserian (Phase 11), Kamulu, Airport View Estate (Eldoret) and Nakuru Garden Estate.

Other investment activities include agribusiness and trading in equity and money markets. Since its inception in 1972 under the Co-operative Societies Act Cap 490 of the laws of Kenya, with a membership of only 690 members, Kenya Police Sacco has been at the forefront of channeling members needs and expectations, as it carries out its mandate of mobilizing savings and providing affordable credit facilities. The formidable Sacco that currently boasts a membership of 61,755, is set to catapult to greater heights of success, with the implementation of their 2020-2024 strategic plan, which focuses chiefly on Corporate governance, membership, service excellence and institutional development. Kenya Police Sacco is undoubtedly the ultimate pacesetter in the Cooperative sector.




Ollin National Sacco Responds to Curb the Spread of the Covid-19 Pandemic The renowned Ollin National Sacco Ltd, continues to thrive amid the Coronavirus pandemic, necessitating for the acclaimed Sacco to employ stringent measures to mitigate the effects of the disease, whilst curbing the spread in their own capacity, through engaging their members and the community at large. In an interview, Ollin National Sacco CEO, Mr. John Gathige shared with Sacco Times Magazine, how the Sacco is coping with the new normal and their Corporate Social Responsibility activities, targeted towards the needy and vulnerable in the Society, adversely affected by the Coronavirus disease.

A. Ollin National Sacco has ensured that proper hygiene is observed within the Sacco premises, by providing water and soap for hand washing, temperature screening, maintaining social distancing while in the banking halls, provision of sanitizers and ensuring every member being served wears a face mask.

By Our Correspondent

Q. The country is going through harsh economic conditions as a result of the Covid-19 pandemic, what has the Sacco done so far to facilitate remote working, to continue serving members and avert the spread of the virus? A. The Sacco has been encouraging members to use ABC channels – mobile banking, ATM and Agency banking. Sacco has been conducting board and management meetings virtually. The sacco has created 2 teams of members of staff. One in the office and the other remotely working from home and they interchange fortnightly across all its branches.

Q. First, tell us about your Sacco? A. Ollin Sacco is among the fastest growing Saccos with a membership of over 12,000 drawn from different sectors of the economy key among them teachers, farmers’ business people, SMEs, institutions and companies. It has branches in Kerugoya, Mwea, Kianyaga, Kitengela, Kiserian and Kimana (Loitoktok).

Q. What challenges have been encountered by your Sacco due to the Covid-19 Pandemic? A. The Sacco has registered supressed income, deposits by members, low uptake of loans and various marketing activities have been interrupted. Q. How has your Sacco responded towards the threats posed by the Coronavirus? What parameters have you embraced as a Sacco?

Sensitization has also been a key strategy employed by the Sacco using pull up banners in all sacco banking halls, documentaries frequently running on TVs, social media platforms and e-shots.

Q. On member sensitization about Covid-19, what has the Sacco done so far? A. The Sacco frequently sends messages and e-shots to members reminding them to adhere to the precautionary measures set by the Ministry of Health in order to keep safe and curb the spread.



CSR Q. After the pandemic, will the Sacco still be in a position to deliver its mandate? A. Yes, the Sacco has designed new strategies of doing business due to the Covid-19 pandemic and mainly through technology driven platforms. The sacco remains flexible and has adopted new normal to spur business growth. Q. Where do you see the Sacco in the next five years? A. Ollin National Sacco will have an asset base of over Kshs 10 Billion and will have automated over 70% of its operations including credit activities.

In the banking halls the Sacco has strategically placed posters and pull up banners to also remind them on how the virus is transmitted and how to prevent spread.

Q. Finally, what can you tell new members who wish to join this Sacco, during these tough times? A. The Sacco model of business is the way to go and through Sacco’s there is a brighter future ahead. Save as much as you can. Ollin Sacco has a robust policy framework including an aggressive strategic plan to ensure sustainable growth into unforeseeable future.

Q. What type of aid has the Sacco offered, whether monetary or in kind to the government and to fellow Kenyans as a whole to help alleviate economic pain? A. The Sacco has carried out fumigation exercise at the ‘boda boda ’cycles’ stages, police stations, the Sacco premises and the surrounding environment. Q. KUSCCO issued directives for employers to release withheld deductions to Saccos during this pandemic. Tell us how this directive will benefit the Sacco during this tough times? A. The directive will assist in reducing the loan arrears and boost the sacco liquidity. Q. SASRA has issued directives for Saccos to cut on lending activities during this pandemic. What is your take on that and what advice have you given members?

Prior to the pandemic, the Sacco had conducted its Annual General Meeting (AGM) and member education, in the month of January 2020, registering a stellar financial performance.

A. The Sacco has to strike a balance as lending is the core source of income. Members are advised to spend their money wisely and reduce the consumption loans. The sacco has restructured some of its loans, given moratorium to members adversely affected and reviewed its main products all aimed at managing its portfolio.

The Sacco recorded an asset base growth of 17%, share capital of 36% with monthly remittance having grown by 14% in the same year under review. Consequently, the Sacco deposits increased by 14%, loans grew by 17% and membership had increased by 14%. Ollin National Sacco continues to be a pacesetter in the sector even during these turbulent times spelled by the Covid-19 pandemic.



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: info@ollin.co.ke | www.ollin.co.ke

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 JOINT ACCOUNT This is an account for those willing to save jointly. Features • Competitive interest rates • No withdrawals limits • No ledger fees. 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


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

This is an account for business people and enterprises. SACCO TIMES | AUGUST - SEPTEMBER 2020

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.

TECHNOLOGY sector, than it has been in the wake of the Covid-19 pandemic. Savings and Credit Co-operatives, that have made the digital shift in their services, have been leveraging on the platform as their safety nets; consequently, not experiencing the full scope of the pandemic’s impact, as opposed to the ones that are entirely dependent on their brick and mortar offices.

Challenge 2025: Digitization of the

Global Co-operative Movement By June Njoroge


he World Council of Credit Union (WOCCU) has set ‘Challenge 2025’ with the key objective of increasing membership in Co-operatives worldwide, going forward, through the digitization of the of the global Co-operative system by 2025. In 2014, the Council set a goal of reaching 260 million Co-operative members worldwide by 2020. A concerted worldwide effort, by Co-operatives was able to see the fulfilment of the ‘Vison 2020” goal by 2017.However, it was noted that the co-operatives that grew, were those that offered core services via online and mobile channels, hence the need for the challenge 2025. The Council looks to measure digitization of Co-operatives, in four key areas and report annually on the progress being made toward challenge 2025.The first one is through, Digital channels through offering members core digital transaction services, such as mobile and internet banking, making online payments and online loan processing.

Inculcating Digital Payments, that will connect co-operatives, to a shared payment system, allowing mobile payments and integrated with a national payments system, is also a paramount area of focus. Employing Data Analytics, will also be an interest area, in determining additional service offering to members, and identifying those that need financial literacy or counseling services. Cybersecurity, makes for the fourth critical area in the achievement of Challenge 2025, through the implementation of a cybersecurity system that complies with national regulations, to protect members’ consumer data from digital attacks and intrusions. In the wake of cybercrimes such as phishing schemes, account takeover fraud, data breaches, identity theft, money laundering and other digital scams; cyber security systems are of utmost importance to protect members’ funds. The era of digital disruption in Kenya, has never proved more significant in the Co-operative

There has been a rapid proliferation and mushrooming of fintechs that offer these ICT solutions to Saccos, and co-operatives across the board should ensure they recruit credible and competent fintechs to make their digital migration. The 5th edition of the annual Sacco Leaders Convention, could not have been more timely, held in late February in Mombasa with the focus being embracing and investing in innovative technology driven strategies and solutions, as the future of the lucrative sector, to enhance efficiency in operations and convenience in service delivery to members. The World Council of Credit Unions (WOCCU) in their 2020 global regulatory update, digitization was a top agenda especially in the fight against cybercrimes among a myriad of other benefits. Mobile and internet banking has especially been embraced by some co-operatives and is proving to be a godsend, during this turbulent times of the Coronavirus outbreak, where transacting using cash is considered a risk factor, in spreading the virus. Restrictions in mobility lockdowns, have rendered the use of online services a basic necessity. Challenge 2025, might be achieved within a shorter time span then the precedented, given the urgent need of digitization in not only cooperatives but also all sectors of the economy.




Imarika Sacco Collaborates with Kilifi County Government, to cushion the community against the Covid-19 pandemic about by the Covid-19 pandemic, the future of the Sacco business remains promising as technology is the way to go. With the deployment of technology, the Sacco can develop products and services, that members can access through the virtual platform with a concentration on short term lending,” said Mr. Gevera. “This coupled with the directive given to employers by KUSCCO to release withheld statutory deductions, Saccos will be guaranteed the much needed cash flow to manage their obligations,” added Mr. Gevera noting that it will boost operations in the society. By our correspondent


he rapid growing Imarika Savings and Credit Cooperative Ltd, donated food items worth Kshs. 1 million to the County government of Kilifi, in an effort to boost the emergency fund kit launched by the County Governor Amason Jefwa Kingi; through its subsidiary organization Imarika Foundation. Addressing the press during a function where the foundation donated 50 water tanks to the County government, the Sacco Chairman Mr. Renson Ndoro, said the society is working hard to support the community through this turbulent times spelled by the Coronavirus outbreak. “We are here today to give our donation in support to the Covid-19 pandemic victims, in response to the call for support by the government. The water tanks given today are part of the bigger donation we have pledged to donate to our local communities, through the County government,” said Mr. Ndoro. The society also donated assorted food items,



worth Kshs 147,500, and 2,000 masks valued at Kshs 100,000. The foundation further committed to donate Kshs100,000 per month worth of food and other essential commodities, until the situation improves, which is subject to a limit of Kshs 1 million. The Ministry of Trade, Tourism and Co-operatives, Chief Officer, Mary Mukare, received the donations on behalf of the County government, acknowledging the Imarika foundation for the art of giving gesture, shown to the community during the time of dire need. “Imarika Sacco is always responsive to calls from the county”’ she said. Imarika Sacco acting CEO George Yongo, urged members and those willing to join, not to shy away as the Sacco is still vibrant, adding that the situation brought about by the Covid-19 pandemic, will soon be arrested. Imarika Marketing manager Jackson Gevera highlights the measures taken by the society in ensuring the smooth running of the Sacco operations. “Despite the economic hardships brought

PHILANTHROPY The Sacco operations for the year 2020 started well with high expectations following the approval of the business plan/ budget by the Special Delegates Meeting (SDM). However, this did not last long following the outbreak of the coronavirus disease, which struck towards the beginning of March 2020, wreaking havoc to most businesses and organizations. The marketing manager says the pandemic has adversely affected the Sacco business, especially the Front Office Service Activities (FOSA). “This cadre of membership is for business men and women who are self-employed and entirely dependent on their businesses, to service their loans and contribute their monthly shares. Since most of them operate from the market places, they have been forced to close down to curb the spread of the disease; in line with the ‘stay home’ directive given by the government through the ministry of health,” he said. He added that, to curb the effect and adopt to the new normal in running the affairs of the Sacco, a number of measures have been put in place by the society to mitigate the situation and meet the needs and expectations of members.

“The Sacco also has a virtual platform popularly known as “spot-cash” where members can access their cash services through the mobile phone. These measures coupled with a dedicated customer service desk operating normally during working hours, are some of the measures taken to minimize the risks posed by the disease which hinders the smooth running of the Sacco business.”

Imarika Sacco is a registered deposit taking Sacco (DT) based in Kilifi County with a branch network covering two other counties; Kwale and Tana River in the Coast region. The situation is anticipated to improve gradually, as the government and other stake holders fight to contain the disease. Consequently, Saccos and other businesses at large will be revitalized so as to keep on delivering services to members effectively. Imarika Sacco is inarguably a trend setter in the co-operative sector.

The Sacco through her subsidiary organization, Imarika Foundation has also intervened in terms of creating awareness and sensitization to the Sacco members and the communities as well. The foundation which was registered in 2015 as an NGO, has been at the fore front championing Corporate Social Responsibility matters of the Sacco. During the coronavirus pandemic, Imarika Foundation has developed animation videos sensitizing members on the importance of social distancing and washing of hands as a measure to reduce the spread. The videos are played in the Sacco banking halls when members come to seek services.

“On short term lending, the Sacco has revised the limit of the “Mkopo Hewani” loan from Ksh. 5,000 to Ksh. 20,000. This loan can be accessed through mobile banking, limiting congestion in the Sacco offices. Other measures include rescheduling of the loan repayments to give members ample time and affordability to repay,” said Mr. Gevera. Increased mobile banking to Ksh. 40,000 from 20,000. “The Sacco has allowed some employers especially those in the hospitality industry to make partial remittances of their employees check off deductions, because of the crisis caused by the covid-19 pandemic, the Sacco credit Manager George Makuri said. AUGUST - SEPTEMBER 2020 | SACCO TIMES


vings and Credit Co-operative Society Limited nnual report and financial statements edit Society Limited or theCo-operative year ended 31 December 2015

Borrow upto Ksh. 40,000

Mkopo Hewani

PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME and financial statements2015 2014 IMARIKA Notes 2015 Shs Shs nded 31 December





2 (a) 2 (b) it on loan and advances 2 (c)

2 (d) 2 (e) ome: es 3 (b) ified subsequently

648,023,972 2014 593,909,503 17,034,599 11,476,958 Shs 665,058,571 605,386,461 2 (c) (290,717,406) (251,548,301) 374,341,165 353,838,160 2 (d) 10,732,658 9,398,544 648,023,972 593,909,503 2 (e) 92,676,800 86,992,185 17,034,599 11,476,958 3 (b) (58,911,541) 8,425,699 (49,701,951) (45,843,656) 665,058,571 605,386,461 (230,705,180) (201,109,211) (290,717,406) (251,548,301) (70,040,463) (53,801,644) 3 (a) 374,341,165 68,391,488 353,838,160 157,900,077 5 (2,555,191) (2,495,652) 10,732,658 9,398,544 65,836,297 155,404,425




2015 Shs

2 (a) 2 (b)

Making Life Simple

92,676,800 86,992,185 (58,911,541) 8,425,699 (49,701,951) (45,843,656) vailable for sale financial (21,505,074) 39,841,033 (230,705,180) (201,109,211) (70,040,463) me 44,331,222 (53,801,644) 195,245,458 3 (a) 68,391,488 157,900,077 or the year 28,394,438 18,147,902 5 (2,555,191) (2,495,652) STATEMENT OF FINANCIAL POSITION 65,836,297 155,404,425



6 7 8 9 10 11 12

1. Enquiries 2. Airtime purchase 3. Withdraw to Mpesa 4. Deposit 5. Check Mini Statement 6. Mkopo Hewani 7. Access your Ordinary Savings account.

As at 31 December 2015 2014 Shs Shs


ial ents

Access the following services:-



(21,505,074) 112,995,234

39,841,033 168,623,054



122,013,705 195,245,458 141,730,679 44,331,222

21,783,318 21,783,318 95,932,705 92,044,605 OUR BRANCH NETWORK 28,394,438 18,147,902 2,850,154 4,692,482 MALINDI, MARIAKANI, GARSEN, UKUNDA 4,368,067,480MTWAPA, 3,674,950,792



0726 007 037 info@imarika.org www.imarika.org 13 As at 3127,241,417 December 14,899,555 HEAD OFFICE: KITECOH COMPLEX SACCO TIMES | AUGUST14 - SEPTEMBER 2020 260,743,090 20P.O. BOX 207,380,762 712-80108 @imarikasacco facebook/imarikasacco 2015 2014

TEL: 7522572/07525017 |15Mobile: 0721788294 3,103,022,125




137,150,000 2,149,872


Shs194,349,997 2,159,980


SASRA: Revival of the 2018 BillStreamlining Co-op Officials By June Njoroge

banks and microfinance firms, undergo thorough background checks, on any individual, with the intention of holding senior leadership in the institutions.


he revival of the Sacco Societies (Amendment) Bill,2018 that had stalled, heralds a new dawn in the governance and management, of Savings and Credit Co-operatives in the country.

The Bill will also bar from leadership, any individuals with a record of embezzling public funds from any institution and other economic crime related offences such as fraud, financial impropriety and corruption.

The new law is bound to bring to an end, the rampant cases of mismanagement and bad governance, that have led to the premature demise of many Cooperatives. Members of such Saccos that been roiled in murky scandals, have borne the brunt of the aforementioned bad governance and mismanagement, having lost their hard-earned savings to unscrupulous Sacco officials. A case scenario is Ekeza Sacco, that sank with members’ savings amounting to billions of shillings. The Co-operative Sector, has been hitherto operating on a 2008 Act, and is therefore not up to date with the status quo, of the industry. The Bill was read for the first time in the Senate in November 2019, under the Senate Committee on Trade, Tourism and Industrialization. A deadline was set for the 15th of June, for members of the public to offer a written memorandum on the bill, before the onset of the next stage. The Sacco Societies Regulatory Authority (SASRA), will have an upper hand in the determination of individuals that are fit to serve as Sacco officials. ‘The policy has deliberate interventions, pertinently dealing with governance, like the legislation on determining who can be a leader in a Sacco,’ noted Mr. Geoffrey Njang’ombe, Commissioner for Co-operatives at a press conference. The new law will oversee a sweeping exercise of unqualified Sacco officials. A test to determine and evaluate individuals in Sacco management

Commissioner for Co-operatives, Mr.Geoffrey N. Njang’ombe. from shareholders, directors, CEOs and board members, will be conducted to ensure their capability, in carrying out their duties. “The Authority shall determine the suitability and propriety of every person seeking to serve as a Chief Executive Officer, Board Member or any other position in a Sacco,’ states the Bill. SASRA will wield the power, with adequate reason, to bar an individual from serving as a Sacco official. A checklist will therefore be formulated by the said regulator, in order for any person to hold Sacco office; with character, reputation, reliability and financial integrity of a person as key determinants. Academic qualifications, financial status and experience in the specific position an individual seeks to occupy; shall also be highly considered. The Bill also stipulates that a mandatory continuous or minimum professional development course, training and certification, will be undertaken by every CEO, board member and any other Sacco official, seeking to serve in a particular position. This is a Corporate Governance strategy, to ensure the officials fulfil their delegated leadership needs effectively. Contrary to Saccos,

SASRA will also conduct thorough investigations, on individuals who seek to be in leadership positions, but have in the past been directors of co-operatives, that were involuntarily liquidated, or are under involuntary liquidation, placed under statutory management. Any license or approval issued by any financial sector regulator will also be looked into by SASRA; which might include checking with other regulators such as CBK; with the chief objective of determining the integrity of the office seeker. The Bill had been earlier on also seeking for the inclusion of Saccos, in the credit sharing system. This has already been achieved, with the recently published 2020 CRB regulations, that names Saccos under SASRA, as one of the authorized subscribers of Credit data to CRBs. The Bill also requires the use of the phrase’DT-Sacco’, or any of its derivatives, to be limited to only the deposit-taking Saccos licensed by SASRA; which has been seeking restrictions and legal protection, against the usage of the word ’Saccos’. Deposit-Taking Saccos will then have twelve months, to comply to the provisions of the new law. Matatu Saccos, are also among the entities that meant to undergo transformations, such as changing the name ‘Matatu Saccos,’ to Transport Co-operatives or TransCoops. AUGUST - SEPTEMBER 2020 | SACCO TIMES



SASRA: Loan Defaulters in Peril as Saccos’ Access to CRB Reports Gains Momentum By June Njoroge oan Defaulting has long been a stubborn wound to many Savings and Credit Co-operatives (SACCOS), and has been alarmingly crippling the financial stability of the lucrative sector.

they did not intend to repay. The move is bound to shift the loan repayment landscape and Saccos will undoubtedly experience, a great improvement in the quality of their loan book.


Metropol CRB, Transunion CRB and Credit Info CRB are the three available CRBs in the country, that Co-operatives have been partnering with. By the end of 2018, around 150 Deposit –Taking Saccos had partnered with CRBs, in a credit information sharing endeavor.

However, the tide has changed thanks to the newly published 2020 CRB regulations, that have already started gaining momentum. The regulations stipulate the inclusion of Saccos in the credit sharing system. All Saccos registered under the Sacco Societies Regulatory Authority(SASRA), stand to gain in gauging the creditworthiness, of members before disbursing loans.

CBK Governor, Mr. Patrick Njoroge

“Sacco societies regulated by the Sacco Societies Regulatory Authority (SASRA), have now been included as authorized subscribers of credit data to CRBs. These Saccos will now submit borrowers’ information to CRBs and also receive credit reports directly from them.” stated the press release, by the Central Bank of Kenya (CBK). The new regulations have replaced the Credit Reference Bureau Regulations (2013) and were done in consultation with the regulator, SASRA. Consequently, full compliance must be met. This consultative process commenced in 2018, with the chief objective of strengthening Kenya’s credit information sharing system (CIS). “These Saccos will now submit borrowers’ information to CRBs



SASRA CEO, Mr. John Mwaka and also receive credit reports directly from them,” the CBK announced. Previously, Saccos have been sharing names of loan defaulters with Credit Reference Bureaus (CRBs) on a voluntary basis, as there was no laid down legal framework; but had no access to the records of rogue borrowers, since the law had only granted banks, this privilege. Days are numbered for the unscrupulous Sacco members, who have been in the habit of taking up loans, that

A majority of them had partnered with Metropol CRB; around 132 in number,16 others with Transunion CRB and 2 with Credit Info CRB.This information is crucial as it paints the true picture, of prospective borrowers and gives a correct credit score. Sacco members with a good borrowing history, can receive good reports on CRB card. The move to list serial defaulters, will inarguably also raise ethical standards in regaining confidence within the Sacco movement, since loan guarantors will be protected. Once a loan defaulter is listed with CRBs, the person remains barred from accessing any credit, for a period of five years, even after clearing the outstanding amounts. “Co-operatives shall in tandem, with the nature of business exchange information, on performing and non-performing loans, as may be specified by the authority and compliant to regulations made under the Act.” the report noted. Co-operative

UPDATE Alliance of Kenya (CAK), Chief Executive Officer Mr. Daniel Marube noted that the move by Saccos to share credit information of their members with CRBs, will upgrade the quality of assets held by Saccos and encourage the repayment of loans. He added that being blacklisted will mean that no credit provider including commercial banks will be able to deal with a defaulter.

include: Insurance Regulatory Authority (IRA), Retirement Benefits Authority (RBA), Capital Market Authority (CMA) and Central Bank of Kenya (CBK).

This move, is aimed at strengthening the Kenya Credit Information Sharing (CIS) system, by boosting consumer protection of borrowers, ensuring the sustainability of CIS, as a vital instrument, to bridge the information gap about a borrower’s creditworthiness, by expanding the sources of information.

Co-operatives, are now in the same league as banks and microfinance institutions, required to share all data on their customers, with CRBs. However, Saccos will be required to issue pre- and postlisting notices to their customers as required by law.

The CIS framework, is important because it benefits the borrowers who maintain good credit history and lenders, who are able to get information on potential borrowers. Consequently, it increases access to credit, enhances efficiency in financial intermediation, reduces transaction costs and fosters financial sector stability, through reduction in non-performing loans. A report by Sacco Societies Regulatory Authority (SASRA) indicates that in 2018, there was an increase in the nonperforming loan ratio, to 6.3% from 6.14%, recorded in 2017. This was as a result of increase in the provision of loans, under the doubtful and loss categories which increased from Kshs 4.92billion in 2017, to Kshs 5.3 billion in 2018 respectively. Sacco Society’s Authority (SASRA), the sector regulator has already signed a memorandum of understanding (MoU), with other financial regulators, to be sharing credit information who

The Sacco Societies (Amendment) Bill 2016 and the Sacco Societies (Amendment) Bill 2018, had stalled at the National Assembly, pending approval but gained traction in October, 2019.

A report by Sacco Societies Regulatory Authority (SASRA) indicates that in 2018, there was an increase in the non-performing loan ratio, to 6.3% from 6.14%, recorded in 2017. Non-Performing loans held by Saccos amounts to Kshs 15billion, whilst bad loans in the banking sector stand at 170 billion, an indication that defaulters could be shifting to the Sacco sector.

The Credit Information Sharing Association of Kenya, Chief Executive Officer, Jared Getenga, earlier said cross border information sharing, as well as allowing Saccos and the utility companies to exchange information, would greatly boost the credit sharing system. Unregulated digital (mobilebased) and credit –only lenders, have been banned from the country’s credit information sharing (CIS).‘ Approvals granted to unregulated and credit-only lenders as third party credit information providers to CRBs, have been withdrawn,’ the statement noted. CRB clearance certificate fees for first time applicants, has also been abolished and borrowers, who had been blacklisted with non-performing loans, of less than Kshs 1,000 are to be delisted, according to CBK. This was caused by the numerous complaints, raised over the misuse of the Customer Information Sharing (CIS), by the aforementioned, especially for poor responsiveness, to customer complaints.CBK Governor, Patrick Njoroge invoked the National Payment Systems Act, for the tough policing of digital lenders. The CBK, also banned negative credit information for borrowers, whose loans ceased ‘performing’ from the 1st of April and will not be listed till September 30th 2020.’ Loans that fall in arrears from April to September 2020 will not be blacklisted,’ the statement noted. The Covid-19 Pandemic, has further increased the loan defaults, caused by the numerous job losses and ‘unpaid leave’ for many Kenyans, pertinently, the hardest-hit sectors. AUGUST - SEPTEMBER 2020 | SACCO TIMES


CSR “Saccos are part of essential service providers and we at Cosmopolitan DT Sacco, have continued to serve our members since the Covid-19 outbreak in the country. We have been encouraging our members to visit our banking halls in small numbers and organized our staff to work in shifts, in order to uphold the social distance directives. We have also installed hand sanitizers, water and soap dispensers, at every entrance in our branches, alongside messages to sensitize our customers against the spread of the virus,” she said.

Cosmopolitan DT Sacco cushions members from

Covid-19 pandemic By Our Correspondent akuru County residents and its environs have less to worry about, in regards to the adverse effects spelled by the coronavirus pandemic, thanks to Cosmopolitan DT Savings and Credit Co-operative Society’s efforts, to cushion them.


In an exclusive interview with Sacco times Magazine, the Sacco CEO, Mrs. Loise Methu, said the Sacco is at the forefront in the fight against the Covid-19 pandemic, and that the Sacco is in collaboration with the County government to cushion vulnerable members of the society. “Cosmopolitan Sacco has been reaching out to members, distributing face masks. The Sacco also gave financial support through KUSCCO for the purpose



of distributing relief food to the affected communities.” said Mrs. Methu. She noted that the Society has laid out measures, in line with the government directives, to continue offering financial services, during the pandemic period.

On member sensitization, Mrs. Methu noted that the Sacco, has installed check points at the entrance to check customer temperatures, alongside video graphics in the halls, that create awareness on the fight against the virus. Customers are also advised to keep a safe distance of at least 1.5 meters, from each other while receiving services at the Sacco branches. According to the CEO, Cosmopolitan DT Sacco continues to thrive, even in the wake of market dynamics and challenges, thanks to the its well grafted strategic plans, which embraces technological emblems towards growth and development.

CSR “When the Covid-19 pandemic struck the country, we were all shocked because it’s a new thing, new disease. The Government issued directives on social distancing as a move to curb the spread of the virus. We have been operating with lean staff, supporting the fight, and offering services to the members without any hitches,” said the Mrs. Methu. Cosmopolitan DT Sacco has laid out plans to continue serving members, even after the Covid-19 pandemic. In consideration to the KUSCCO directives, the Sacco intends to use the withheld deductions from employers, to keep its mandate of meeting the needs and expectations of members. The Sacco Society Regulatory Authority (SASRA), directed Saccos to go slow and revise loan terms during the pandemic, a move that the Sacco has initiated to offset effects on members, ascertaining that they still have cash to sustain operations. “Different Saccos have members from different sectors, some of which have been adversely affected by the pandemic. At Cosmopolitan Sacco, we continue to issue loans, within the limits of what the Sacco can, whilst still avoiding a liquidity crisis. Members still being paid by their employers, continue getting loans as usual,” said the CEO.She encouraged members of the Society and the entire community to continue observing the set rules and guidelines by the government, in order to keep the coronavirus pandemic at bay. “During this tough times, I would like to tell our members and the entire public to keep safe and prevent the spread of the virus. For those who wish to join Cosmopolitan DT Sacco, our doors remain open, come let us grow together, helping one another during this hard times,” said Mrs. Methu. The society intends to rebrand its products, do more recruitments and open up more branches closer to members, as part of it five-year strategic plan, to be among the top Saccos in the country. The Sacco started in 1977, with an aim of creating an environment to encourage members to save and access affordable credit. The Sacco promotes economic and social welfare of its members and the community, drawing its membership from institutions, farmers, business people, women groups, individuals among others. With a total of five branches, Cosmopolitan D.T. Sacco operates under the Sacco Society Regulatory Authority (SASRA) since 2016. The future looks bright for the amid the crisis at hand.

Cosmopolitan Sacco: One of the most viable Saccos to join By June Njoroge osmopolitan Sacco continues to be one of the most viable Saccos to join in 2020. The Sacco was among the first co-operatives to hold their Annual General Meeting (AGM) in the first quarter of the year before the advent of the Covid-19 Pandemic into the country; which rendered the indefinite postponement of AGMs/ADMs under a directive from the Ministry of Industry, Trade and Co-operatives.


The Sacco thrives on the co-operative principles and values of democracy, solidarity, equity, integrity, honesty, teamwork, openness and transparency, social responsibility, self-responsibility and quality services. In order to meet the needs of the members, the Sacco currently has a three-year strategic plan (2018 – 2020) developed in a participatory process, involving the Board of Directors, Senior Managers, Branch Managers and the HODs in guidance of consultancy. The Cosmopolitan D.T Sacco strategic plan is meant to guide the Board of Directors and the Management staff to achieve the Sacco objectives based on given pillars; Membership, Financial performance, Infrastructure & operations, product & services, human resources, governance and also stakeholders engagement. The Sacco has consistently scooped top awards in Nakuru County and beyond. It has also partnered with TSC, KUSCCO, CIC, Co-operative Bank, National Bank, Consolidated Bank among others, in a bid to ensure members maximize their Sacco’s benefits hence widely transforming member’s livelihoods. The Sacco registered remarkable financial performance; the Sacco board of directors recommended payment of dividends on share capital at 10.1% (in 2019 financial year), amounting to Kshs. 27,321,081 compared to Kshs 24,218,326 in 2018.Interest on members’ deposits also stood at 11.20%, amounting to Kshs. 428,678,919, an increase from Kshs. 373,681,674 in the period under review. In terms of membership, the board reported that the Sacco recruited 406 new members, which realized a membership growth from 19,983 members in 2018 to 20,389 members, as deposits increased to Kshs. 4,854,238,135 from Kshs. 4,288,449,938, a percentage growth of 13.2 %. The Sacco retained surplus of Kshs. 422,223,479 from Kshs. 309,935,526 in 2018, translating to 36.23%. The Sacco’s operating revenue grew from Kshs. 704,094,125 in 2018 to Kshs. 789,690,075, an increase of Kshs. 85,595,950, recording a 12.16 % increase. AUGUST - SEPTEMBER 2020 | SACCO TIMES



2020 International Youths Day: What Saccos Must do to Pool Youth Membership By June Njoroge


nternational Youths Day is commemorated every year on the 12th of August, consequently its imperative to track the progress of the youth joining Savings and Credit Cooperatives, to draw benefits of the Sacco model; the difference they are making and what Co-operatives should be doing to empower them and absorb them, thereby swelling membership. According to the 2019 Subsector Demographic study, conducted by the Sacco Society Regulatory Authority (SASRA), more youth have been joining Saccos and seizing the opportunities therein to save, invest and grow. This debunked the misconception and public rhetoric, that Sacco membership has no place for the youth; birthing a revolution, that has hitherto recorded exponential growth both in Saccos and the economy on the whole. The report revealed that the youth comprised of a third of the total 4.97 million Sacco members, across the 174 Deposit –Taking (DT) Saccos. According to the constitution, the youth refers to the population defined to be within the age brackets of 18 and 35, who accounted for 30.86%, of the total individual members, which is nearly 1/3 of all members.

60.65% of the 4.78 million individual members, being male and 34.23% are female; contrary to the national population demographic, where the female gender has been established to be more than the male gender. The theme for the 2020 International Youths Day is ‘Youth Engagement for Global Action’ which seeks to highlight ways in which the engagement of young people at the local, national and global levels, is enriching national and multilateral institutions; whilst drawing lessons of how their representation and engagement, can be significantly enhanced. This is to shed light on the need to enable the engagement of youth, by making local, national and global institutions more inclusive, for the purpose of strengthening their capacity and relevance to achieve global action. Prior to the International Youths day, World Youth Skills Day(WYSD) is observed and celebrated on 15th of July every year, with an aim to raise awareness about the importance of technical, vocational education training and the development of other skills, relevant to both local and global economies. The theme for this year is ‘Skills for a resilient youth in the Era of Covid-19’ meant to prepare young people to explore response strategies to the unfolding economic crisis. The day also highlights the important role of skilled youth in addressing global challenges. Both days are significant, because they encourage the youth around the world and creates awareness about their status quo. However, due to the Covid-19 pandemic, both World Youth Skills Day and International Youths day will take place under a challenging context, most likely virtually. Co-operatives can also, in their own capacity empower the youth skills and make them more employable and more productive, in their work environment. They need to assist the youth by equipping them with skills of employment, decent work and entrepreneurship. The input by youth into Saccos is invaluable and Saccos

The age bracket 25 and 35 years, accounted for 23.46% of the total individual membership, coming in second after the 36- and 50-years age group, who accounted for 28.88%. The male gender was found to be greatly dominating the membership of DT-Saccos, with



need to strengthen their capacity, to join Saccos through meaningful engagement and participation. Some of the strategies that Saccos should deploy to get more youth onboard the Sacco wagon include: Digital marketing & Social media-A key catchment area for the youth. Millennials and Social media have become synonymous in this digital age we are in, making for a key catchment area for Saccos to recruit more youth. Marketing dynamics have shifted and evolved and Saccos should also move with the changing tide. Digital marketing companies such as FinWit Ltd, make for a one stop shop for Saccos to fulfil all their digital marketing needs. Creating more awareness of the advantages of joining Saccos. Co-operatives need to come up with effective strategies to create awareness among the youth. With a dwindling concentration span, capturing the attention of the youth requires utilizing creative marketing strategies. A digital marketing company such as FinWit Ltd, offers these much-needed creative and innovative strategies and solutions, as one of its products, that is a guarantee to onboard more youth. Redesigning products and services that appeal more to the youth. Saccos need to design more products that appeal to the youth, for them to feel the need of joining Saccos. These tailor-made products need to address the needs and challenges facing the youth of today; to somewhat offer them solutions, which will consequently lure them into joining. The youth are the future of the Sacco movement and Co-operatives need to be strategic and employ deliberate policies in embracing them.


Anxiety as Saccos operate on unapproved budgets By Our Correspondent here is anxiety that many DT Saccos will not be able to survive, owing to delays by members to approve their 2020/21 budgets, which began earlier in July 2020.


In order to avert the looming cash crunch, the State Department of Cooperatives has issued guidelines to Deposit-Taking Saccos, to allow them to spend, awaiting approval of their budgets by members. While approval of expenditures is usually approved by members during an Annual Delegates/General Meetings, this process, has not taken place within the Co-operative sector. Its not yet clear, how co-operatives that have not had their budgets approved by members, will navigate the new financial calendar that begins this month. “Each Co-operative has provisions in its by-laws, on how its affairs should be managed, including closing of books of accounts and decision making. These societies should invoke these clauses when required,” said Didacus Ityeng, Senior Deputy Commissioner in charge of Policy and Capacity Building at the State Department for Co-operatives. Unlike listed firms, which have been given the go ahead by regulators and the High Court, to hold virtual AGMs, Saccos, which are designed on the model, where members own the society and make all the decisions, are yet to hold their top organ meetings. This means, that most of these cooperatives, have not had their budgets approved and have a team of directors, that have not been subjected to scrutiny by members, issues that are usually resolved at the AGM/ADM. However, an interview with a cross section of executives, paints a picture of an industry, that is yet to get into any crisis, despite disruptions from the COVID-19 pandemic. “There is a document that is normally prepared by technocrats, who are also employees of the Sacco. Before

Didacus Ityeng Senior Deputy Commissioner for Cooperatives.

Mr. John Mwangi, Tai Sacco, Chief Executive Officer.

a budget is presented to the ADM, it is normally interrogated by a Finance and Administration Committee, which is a board committee, after which it is tabled before the whole board. Boards are still meeting when necessary, but of course observing health protocols and advisories,” said Mr John Mwangi, Tai Sacco Chief Executive Officer.

While DT Saccos usually have up to the end of April each year, to hold their AGMs, only a handful of Saccos had held their annual meetings, before the Commissioner for Co-operatives, suspended these meetings for all the others.

He told Sacco Times Magazine, that most Sacco boards, have a maximum of 9 directors which is still below the threshold allowed by the MOH, as a social distancing requirement. Saccos are also essential services providers and as such roadblocks, did not restrict movement of directors of Saccos and their staff. “While we have those societies that held their AGMs before the pandemic restrictions were imposed, others like us, had the budget for 2020 approved, during the ADM held in 2019,”added Mr. Mwangi. For those Saccos that had not presented their 2020 budgets, to the ADM for approval, the department of Co-operatives has allowed them to apply 50% of the budget while awaiting approval. “Yes, I can confirm that the Commissioner for Co-operatives, has given the greenlight for DT Saccos to spend, based on a budget that has yet to be approved by members. He has given specific instructions, on what should be spent,” said Solomon Angutsa, CEO of Kenya Police Sacco Society Limited.

“In my opinion , if it will not be possible to hold an ADM this year, specifically the ADMs that will possibly be held next year, will have no option but to ratify the budgets,” said Mr Mwangi. While listed firms have been able to apply to the Capital Markets Authority(CMA), to allow them hold virtual AGMs, the same platform has yet to be offered, by the Sacco Societies Regulatory Authority(SASRA). “We intend to hold our ADM via electronic means in September and are in the process of changing our by-laws to allow this to happen,” said Dorothy Makena, Marketing Manager, Southern Star Sacco. At the moment, Southern Star Sacco conducts most of its meeting online. Most Saccos cannot hold virtual AGMs, due to the heavy investment and financial muscle, that this platform requires. For instance, a Sacco needs to have an IT provider, who can provide full image and sound broadcast of the entire event, ensure a secure authentication process and enable digital transmission of proxies up until online voting.




Kimisitu Sacco Takes a Forefront In Response To Cushion The Society By June Njoroge he prestigious Kimisitu Sacco has made a generous contribution to the Co-operative Coronavirus Response Committee (CCRC), with the chief objective of cushioning fellow vulnerable and needy Kenyans, who have been adversely affected by the Covid-19 pandemic.


Growth, Membership Growth and Impact.

Kimisitu Sacco CEO, Mr. Lwanga Mbeche, was joined by Cooperatives PS Ali Noor Ismail and other Dignitaries, to present the sacco’s Invaluable contribution to the committee, which would go a long way in offsetting the impact of the pandemic, during this turbulent times.

The Sacco boasts a robust state-of-the art Information Communication Technology (ICT) systems, designed to increase efficiency, in the delivery of financial services to members.

The contribution will oversee the provision of food stuffs, gloves, masks and hand sanitizers, all included in the ‘Co-op kit’. The initiative is aimed at supporting 500,000 vulnerable households, by equipping them with the survival ‘Co-op kit’. The Sacco has also been sensitizing its members on the importance of adhering to the stipulated precautionary measures set by the Ministry of Health.

Kimisitu Sacco has embraced the era of digital disruption at full tilt, in line with the 2020 World Council of Credit Union’s (WOCCU) global regulatory update, which advocated for digitalization of Co-operatives as the future of the lucrative sector.

Kimisitu Sacco CEO Mr. Lwanga Mbeche

As part of their ICT solutions, the Sacco employs the use of modernized data center and cloud technology platforms,

Kimisitu Sacco has been at the forefront in the fight against the Covid-19 pandemic, especially by deploying technology driven solutions, which are aligned to the Sacco’s current Strategic plan 5-year-plan (2016-2020). The Sacco is in the process of formulating a new Strategic plan (2021-2023), with Innovation and Technological Advancement being a key thematic area, among Customer Delight, Human Capital Development, Revenue



Kimisitu Sacco CEO Mr.Lwanga Mbeche (Right), joined by Co-operatives Ps Mr. Ali Noor Ismail (center) and NACHU Chairman Mr. Francis Kamande (left) issue the Sacco’s contribution to the Co-operative Coronavirus Response Committee (CCRC).

CSR with an existing infrastructure, to offer excellent customer service to members. The Sacco has rolled out the implementation of Electronic Document Management System (EDMS), to fully automate, enhance and improve its internal business processes whilst reducing service turnaround time.

Introducing NAFUU Loan

The loan application can easily be made through the Kimisitu online portal and can also clear all outstanding loans from the Sacco.

The Sacco has been fully leveraging on its online platform, which has especially come in handy, during this tumultuous times spelled by the pandemic.

The Sacco’s membership has continued to grow despite the turbulent times, owed to the cushionary product and innovative ICT systems and procedures put by the Sacco to ensure seamless services to its members.

This follows the directives set by the government to opt for cashless transactions, as a precautionary measure to curb the spread of the virus.

Founded in 1985 by the staff of International Centre for Research and Agroforestry (ICRAF) and the International Development Research Centre (IDRC), Kimisitu Sacco continues to provide quality financial services, through prudent mobilization of resources.

The Sacco’s social media platforms have been very active with a team assigned to respond to all online inquiries and a fully equipped operational call center to cater to all needs and expectations of members and potential non-members, thereby enhancing customer satisfaction and experience.

The Sacco is currently conducting a membership recruitment drive and an existing member can introduce new members and earn an an incentive for each member introduced to the Sacco.

Members can easily utilize the online platform for new member registration, loan applications, online requests, balance inquiries, account monitoring and other online transactions through the members’ web portal, at their convenience. To ensure the observance of the stipulated Covid-19 guidelines, the Sacco has a lean staff working from the office and through technology has ensured that the other staff work from home this serves as a precautionary measure. The Sacco has introduced a new product dubbed ‘Nafuu Loan’, whereby a member qualifies

to take up a loan of up to Kshs. 500,000, at an interest rate of 10% per annum which is equivalent to 0.8% per month on reducing balance, with a repayment period of 48 months which can be made in affordable instalments and takes a day to process.

Any member can gerr it, you can gerr it, we can gerr it... Chukua Nafuu Loan, Kaa nyumbani, all loan applications online through https://portal.kimisitusacco.or.ke/ #StayHome # KimisituCares AUGUST - SEPTEMBER 2020 | SACCO TIMES


Co-operative PICTORIAL


Ali Noor Ismail, PS, State Department of Cooperatives speaks to a few cooperators at CCRC launch. Unaitas Sacco contributes Kshs 1 million to Co-operative Covid-19 Response kitty.

Kenya Bankers Sacco, National Chairman, Mr. Vincent Chisaka, CEO Mr. Elijah Dede, COO Mr. Lucas Ondong, together with the CSR team led by the Chair Margaret Kabera present food products, sanitizers and a cheque to Huruma Childrens’ Home. Tai Sacco, in collaboration with Tai Housing, donates food to the Kiambu County Government, in the quest to feed at least 200 vulnerable families in the County.

Boresha Sacco contributes towards the Covid-19 Response inititative.



Commissioner for Cooperatives, Mr. Geoffrey Njang’ombe, at the launch of the Cooperative Coronavirus Response Committee.


Biashara Sacco Chairman Mr. Kamau Njamuku gives the donation cheque to H. E Governor Mutahi Kahiga in the presence of County officials and Biashara Sacco board members. CIC Group makes a massive contiribution towards the Co-operative Covid -19 Fund.

From left: Francis Kamande, Chairman, CCRC & NACHU, Ali Noor Ismail, PS, Co-operatives, Mercy Njeru, Advocacy Manager, KUSCCO and Rose Ngaruiya, Marketing Manager, KUSCCO present a cheque in support of vulnerable co-operators affected by the pandemic.

Harambee Sacco donates Kshs 3 million worth of PPEs to the Police. National Treasurer of Harambee Sacco Charles Konzolo (left) presents masks to Deputy Inspector General of Police Njoroge Mbugua.

Gusii Youth Bunge Sacco joins hands with Kisii County Government in the fight against Covid-19.

Youth from Mutarakwa Harmony Co-operative, and the International Cooperative Alliance-Africa Youth Network to commemorate this year’s International Day of Cooperatives through a tree planting at Ngong Road Forest. AUGUST - SEPTEMBER 2020 | SACCO TIMES



Big Win for Kenyan Saccos: WOCCU’s 2020 Membership Growth Awards By June Njoroge

based Saccos had 16.32% of the total members,35 Governmentbased Saccos had 16.62% of the total membership.


pplause to Kenyan Saccos, for scooping WOCCU’s 2020 Membership Growth Awards, based on data derived from its most recent Annual Statistical Report; at the 2020 World Council of Credit Union Annual General Meeting(AGM), held virtually for the very first time due to the Covid-19 Pandemic. The award was received by the KUSCCO Chair, Mr. George Magutu Mwangi.KUSCCO membership grew at a rate of 14.2%, adding just under 1 million members for a total membership of 7.8 million. “SACCOS began in Kenya in the 1960s and have progressively grown over the years. They sustain the lives and livelihoods of over 14 million people,” noted Mr. Magutu. Savings and Credit Cooperatives(Saccos) make up about 45% of Kenya’s Gross Domestic Program (GDP), with an asset base of over Ksh. 1 trillion, mobilized savings and deposits in excess of Ksh 732 billion and a loan portfolio of 700 billion. In addition, the sector employs more than 500,000 people whilst necessitating selfemployment especially through lending. The Ministry of Co-operative Development estimates that 80% of Kenya’s population derives their income either directly or indirectly through Co-operative activities. In a recent report by the World Council of Credit Unions (WOCCU) Kenya has the largest Co-operative movement in Africa and is ranked in the 7th position globally, making it very pertinent in the economic and social development of the country.



KUSCCO Chair Mr. George Magutu Mwangi. The rapid mushrooming and proliferation of Sacco societies in the country has brought the number to about 13,200 registered Saccos;175 of them being regulated by the Sacco Societies Regulatory Authority (SASRA) as of December 2019. In the long term pursuit of Vision 2030, Co-operatives were identified as key vehicles with flagship projects and Medium-Term Plans already underway. Co-operatives are also key partners in the achievement of the Big 4 Agenda, birthed by the President, all working towards the same endeavor; the ultimate realization of vision 2030. The Big 4 Agenda programmes cover affordable universal healthcare, decent and affordable housing, food security and nutrition, job creation and economic growth through manufacturing. According to the 2019 Sacco Subsector Demographic Study Report conducted by the Sacco Societies Regulatory Authority (SASRA), the total membership of DT-Saccos across the board which is from individuals, corporate and institutional sums up to 4.97 million which is 96.2%. Out of this 4.78million of the members are individuals while the remainder are corporate and institutional members like self-help groups (chamas), churches, sole-proprietorships, private schools and limited liabilities companies; who make up for 3.8%. The male gender greatly dominates the membership of DT-Saccos, with 60.65% of the 4.78 million individual members being male and 34.23% are female; contrary to the national population demographic, where the female gender has been established to be more than the male gender. Kenyan Saccos, have been known to draw membership from five clusters which indicated; 50 Farmers-based Saccos had 47.81% of the total members,43 Teacher–

The 21 Community-based DTSaccos and the 25 Private Sectorbased DT-Saccos were the common bond cluster that were found to have the least number of individual members which accounted for 9.38% and 9.86% respectively as a proportion to the total individual membership. Cumulatively, the population of members in Saccos, aged between 18 years and 50 years accounted for 59.64% of the total membership. This is consistent with the fact that Saccos being member-based socioeconomic enterprises, majorly draws membership from that segment of the population that is engaged in some form of active or productive socio-economic activities. The lowest proportion of members was found to be within the 18- and 24-years bracket and also above 65 years, which accounted for 7.4% and 5.51% respectively of the total membership. A plethora of factors have been ailing the lucrative sector, stunting its growth such as the nonremittance of dues by employers, corruption, cybercrimes and loan defaulting. However, the ministry of cooperatives, key regulators and Unions have formulated solutions to these problems such as the launch of the anti-fraud investigation unit, revival of the 2018 Bill that will seek tame errant co-operative officials, Saccos access to CRB reports to deal with serial loan defaulters and so much more.

AGRICULTURE model. The current one is not working and we will engage all stakeholders, including Governors to get their input on this.” the CS said.

CS Munya meet Cooperative officials in Nyeri and kirinyaga over coffee reforms.

KPCU Members to Benefit from New

Measures Rolled Out by Ministry By Our Staff Reporter.


enya Planters Cooperative Union (KPCU) members, are set to benefit from a raft of measures set by the ministry of agriculture. Speaking in Machakos, the Agriculture Livestock, Fisheries and Cooperatives Cabinet Secretary, Peter Munya, said the ministry is in the process of reviving all KPCU coffee millers; by installing modern machines for proper efficiency. “Ongoing reforms in the coffee sector will continue. The new KPCU will wind off fraudsters and intermediaries, who stole from farmers, by altering and adjusting the weighing machines,” said CS Munya. The CS added that the measures targets to cut off cartels, who are stealing from coffee farmers, thus increasing on farmer’s earnings. “Farmers will get 40% of the value of the coffee they deliver. We are also pursuing better foreign markets,” he said. The measures, aim at lowering the

cost of production, reviving the sector from the monopoly of cartels and turn around farmers’ fortunes. Munya further noted that the government is launching e-vouchers, that will enable smallholder farmers access discounts, of up to 60% on fertilizer and agro-chemicals. The voucher is part of a Kshs 53.7 billion economic stimulus package program, designed to help the country through the current COVID-19 crisis. The move comes from the report of the coffee taskforce, which was appointed by President Uhuru Kenyatta, to tackle challenges like marketing and the quality of coffee. “The programme shall include increasing coffee production and productivity, improving the efficiency of farmers’ cooperatives societies, supporting research development and technology dissemination, supporting the development of alternative coffee markets and project coordination. We must change tact to have a successful

He further noted that the Kshs 5 billion that World Bank funds, for the coffee revitalization programme, will be implemented in eight counties including Machakos, Meru, Tharaka Nithi, Murang’a, Nyeri, Kirinyaga, Embu and Kiambu, to increase coffee production. Munya urged farmers to purchase chemicals and subsidized fertilizer, at the national trading corporation, adding that the government, has established Kshs.3 billion Coffee Cherry Advance Revolving Funds, to provide an affordable, sustainable and accessible cherry advance to smallholder farmers. “Farmers who deliver their produce at new KPCU, will be given forms to fill so that they benefit from the funds at 3% interest rate and I advise them to fill them in the next two weeks if possible,” Munya said. Meanwhile, the CS said the government in collaboration with his ministry, is working tirelessly, setting reforms in the agricultural sector. “To address challenges facing agricultural production and trade, the Cabinet has directed reforms, anchored on warehouse receipt system, enhanced private sector participation, revamped oversight committee on food balance sheet and institutional reforms to eliminate overlapping roles,” said the CS. The reforms will also spearhead auditing, of over 500 Co-operative societies, across the country, to determine the status of billions of shillings, in debts owed by farmers to the Societies and Societies to financial institutions respectively.




Qwetu Sacco Cushions Vulnerable Communities in Taita Taveta during the Covid-19 Pandemic


wetu Savings and Credit Co-operative Society, is helping vulnerable communities during the Coronavirus pandemic and the flash floods that have displaced families, leaving a trail of destruction. The Sacco, through a resource mobilization initiative, donated foodstuffs to help the vulnerable and needy persons in Taita Taveta County. The initiative is ran under its subsidiary, Qwetu Sacco Foundation, with an aim of giving back to the society, which forms part of the society’s Corporate Social Responsibility. The Sacco donated flour, rice, sugar, cooking oil among other food items. The Sacco Chairman Mr. Alfred Mlolwa, said the Sacco is working towards realizing members’ needs and expectations during this difficult time, as it embarks on curbing



These outstanding growth, led to society expanding its market to a ‘Common Bond’ membership that incorporated all sectors of the economy. the spread of Covid-19. The Sacco has embraced the use of cashless transactions by investing heavily on mobile banking; members can deposit into their accounts, using the M-PESA Paybill number 129104, or withdraw by dialing USSD code *645#, in support of the government’s move to curb the spread. Qwetu Sacco has also joined other societies in the Co-operative Coronavirus Response, contributing towards the Covid-19 Co-op Kit, which targets close to 500,000 vulnerable persons across the country.

The society recently opened bookshop services to enable members access and buy story books, revision books for their children, motivational books to boost their spirit during the tough times spelled by the Covid-19 pandemic. The Sacco guarantees members’ full ownership of the society, once they purchase 150 shares at Kshs.100 per share. The benefits accrued include high interest dividends, quick access to affordable loans, and access to personalized financial services and management training. The society has a total membership of more than 34,000 members drawn from teachers in primary, secondary and t echnical schools, lecturers from training colleges, including others from the office of the president, county government, Ministry of Health, business men, KNUT and Qwetu society’s staff.

CSR Biashara, Qwetu Kilimo, Asset Finance, LPO Finance, Qwetu boda boda, Qwetu Micro Elimu and Qwetu Super Deposit. For, BOSA the society offers loan products including Qwetu Smart, Qwetu Super, Qwetu Development, Qwetu School Fees and Emergency loans. The society offers services including photocopy services, exercise and text books, stationeries, games Items and story books. Other Savings products include Toto wa Qwetu Account, which is set up to nurture children attain a bright future. Qwetu Sacco CEO Charles Kaba, during his address to the delegates during their special delegate meeting at a Voi resort. Picture by Anthony Mwachiro.

Qwetu Sacco also offers services including ATM, Mobile Banking, SPOTCASH, SMS alerts and cheque books, which have eased member service delivery. These services are also key in ensuring that cashless transactions are enjoyed at the convenience of members, in solidarity with the government move to curb the spread of the corona virus pandemic. The government gave a directive to financial institution to adopt cashless transaction models, in order to curb the spread of Covid -19.

Chairman Mr. Alfred Mlolwa Since its inception, Qwetu Savings and Credit Cooperative Society has been recording significant exponential growth. The Sacco introduced the Front Office Service Activities (FOSA), in the year 2000, which saw the society open the micro-credit section in 2003.

These outstanding growth, led to society expanding its market to a ‘Common Bond’ membership that incorporated all sectors of the economy. Qwetu Sacco operates under the Sacco Society Regulatory Authority (SASRA) since 2012.Its FOSA loan products range from Pre-salary Advance, Salary Advance, Prestige Advance, Overdraft on pending Loan, Cheques, Qwetu Express, Qwetu Express Plus, Qwetu Personal and Qwetu Plus. The Micro-Credit loan products including Qwetu

Qwetu Sacco society Ltd was founded in 1968, by about 200 visionary teachers who pooled together part of their salary as contributions with the objective of growing financially and socially. In 1976 the society was officially registered, with an aim of mobilizing savings, helping members meet their needs and expectations by offering tailored products at a competitive rate. Qwetu Sacco is truly setting pace towards the containment of the Corona virus pandemic




Co-operative Tribunal goes Virtual to Clear Backlog of Cases By Our Staff Reporter

constitution, or other laws of the land. Most tribunals are subject to supervision by the High Court.


he Co-operative Tribunal, has moved to have disputes filed, before they are mentioned and determined, via electronic sittings.

The Co-operative Tribunal, has jurisdiction to hear disputes among members, past members and persons claiming through members of co-operatives.

This, is as the COVID-19 pandemic and resultant containment measures, hamper the operations of this quasi-judicial body. “Take note that the Applications, that were due for hearing between 16th to 19th March, 2020 will be mentioned virtually, for directions on 22nd July, 2020 from 9.00 a.m. as per the cause list attached. The link will be shared via the Co-operative Tribunal’s email address” said Chairperson of the Co-operative Tribunal, Hon Beatrice Kimemia. The tribunal has further directed that all following Applications, that were coming up for hearing between 6th to 9th April, 2020 will be mentioned virtually, for directions on 23rd July,2020 from 9a.m. In the pre-Covid-19 era, the tribunal, had planned to clear all backlog of cases, in the period between July 2019 and June 2020. This schedule has now been disrupted, owing to logistical nightmares posed by the Coronavirus pandemic. The Co-operative Tribunal, is a specialized court established under section 77 of the Cooperative Societies Act, Chapter 490 of the laws of Kenya. It has exclusive and unlimited geographical and pecuniary jurisdiction, in co-operative disputes. Decisions of the



Tribunal, are appealable to the High Court within 30 days of its rulings and awards. There are 32 cases that are up for mention on 22nd July, 2020, in disputes involving Rwama Farmers Co-operative Society, Murata Sacco Society, Afya Cooperative Society, Mukungungu Farmers Sacco, Yes Housing Coop, Wakandeba Sacco, Methodist Savings & Credit Co-operative Society, Mala Savings & Credit Co-operative Society, Nyala Sacco Society, City Star Sacco, Transcom Sacco, Savannah Traders Sacco, Komothoi Koffee Growers, Feb Sacco Society, Muki Sacco, Ken-Kaz Sacco among others. Notices of motion, that will be heard virtually on 23rd July 2020, by the tribunal, involve disputes touching on several Saccos. They include Scania Sacco, Muka Mukuu Farmers Co-op Society, Forward Travellers Sacco, Nyati Housing Cooperative Society Vs Ngossheny Housing Cooperative Society, Kenya Medical Association Sacco, Ol Kalou Central Farmers Cooperative Society, United Nations Sacco Society, FEP Sacco and Marsabit County Butchers Sacco among others. The Co-operative tribunal, was first established in 1997 and domiciled in the Ministry, but opened doors to the public in 2002. In 2010, the Constitution of Kenya, placed all tribunals under the judiciary. Tribunals are bodies established by Acts of Parliament, to exercise judicial or quasi-judicial functions. They supplement ordinary courts in the administration of justice but lack a penal jurisdiction. Tribunals, like the courts, have to respect the Bill of Rights in their decisions and not be repugnant to justice and morality or be inconsistent with the

This can be between past members and deceased members; members, past members or deceased members and the society, its committee or any officer of the Society; the society and any other Cooperative society. The tribunal has a total membership of eight (8) members of the board. A chairman and deputy chairman, are appointed by the Cabinet Secretary on the nomination by the Judicial Service Commission. Three persons with at least ten years’ experience in the field of co-operative management and practice are appointed to the tribunal by the Cabinet Secretary. The Co-op tribunal, is domiciled at the Reinsurance Plaza, on Taifa Road on 11th and 12th floor, Nairobi. In March last year, Chief Registrar of the Judiciary, Anne Amadi, presided over the swearing-in of the Chairperson, of the Co-operative Tribunal, Hon Beatrice Kimemia, at the Supreme Court, in Nairobi. Ms Kimemia was appointed by the Cabinet Secretary for Industry, Trade and Co-operative, on temporary basis, with effect from February 1, 2019. The oath was administered by the acting Registrar of the Tribunal, Anne Asugah.



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2020 International Co-operatives Day: Co-ops for Climate Action By June Njoroge

irreversible impacts on people and the natural world, unless carbon emissions are cut sharply and rapidly.


uly 4th 2020 marked the International Day of Cooperatives, and urgent environmental action was the agenda, with ‘Co-ops for Climate Action’ as the chosen theme; it couldn’t have been more timely, given the status quo of the world, marked with extreme natural disasters, all which have been linked to climate change. Kenya ushered in a host of environmental disasters, in the dawn of 2020, such as the locust infestation and torrential rain that caused flashfloods, consequently triggering landslides. The National Environment Management Authority (NEMA) in their 2019 -2024 Strategic Plan, which is aligned to the Medium Term III, Big 4 Agenda, UN Sustainable Development Goals, Kenya Vision 2030 and the Africa 2063 Agenda; highlights climate change, as one of their top priorities and rightfully so, because its a crisis that needs to be addressed and mitigated promptly. The 2020 ‘Co-operatives for Climate Action’ theme was specifically chosen to support the Sustainable Development Goal (SDG) 13, on Climate Action and to highlight, the contribution of Co-operatives in combating climate change. ”Since 1990, global carbon dioxide emissions have increased by 50 percent. Today, 800 million people are



“On a global scale, the cooperative economy, integrates more than one billion members and generates employment for 10%, of the world’s employed population.

Mr. Ariel Guarco, President, International Co-operative Alliance.

vulnerable to severe drought, toxic air pollutants, rising sea levels and frequent and powerful natural disasters. I want to take advantage of this International Day of Cooperatives, to emphasize Climate Action, an objective that calls on us to mobilize our communities, to build a healthier, fairer and more united economy.” said Ariel Guarco, President of the ICA on the occasion of unveiling the theme. The day was inviting the global co-operative community, to continue pushing for actions that will address climate change. Co-operatives around the world, took the opportunity to demonstrate leadership, by sharing their co-operative values, in battling this global issue. The latest report from the Intergovernmental Panel, on Climate Change, indicates that climate change is set to inflict severe, widespread, and

The turnover of the 300 largest co-operatives, is equivalent to the Gross Domestic Product of the world’s sixth economy. Today, even under the most difficult circumstances, the co-operative movement is doing everything in its power, to protect communities and help them overcome climate change.” Stated Guarco. The 2020 theme, founded on the belief and co-operative value of ‘self-help and solidarity,’ also promotes the 7th co-operative principle, which states that cooperatives, are sustainable and responsible in their approach and play an important role, in leading environmental sustainable initiatives. Climate change spells a host of problems such as increased droughts, heat waves and famine, increased spread of pests and pathogens, loss of biodiversity, desertification, ocean acidification, wild fires, floods, landslides, more intense storms, cyclones and hurricanes. Human activities such as deforestation, toxic pollution, overexploitation of natural resources and illegal wildlife

ENVIRONMENT trade, have immensely contributed to climate change. Every country on every continent, is directly affected by climate change and swift action is required, to mitigate rising global temperatures. Research shows that planting a trillion trees, can absorb 20 years’ worth of global greenhouse emissions, given that young trees absorb carbon dioxide at a rate of 6 kg per tree each year. Trees reach their most productive stage of carbon storage, at about 10 years at which point, they are estimated to absorb 22 kg of carbon dioxide per year. Co-operatives vary in their ability to adapt and respond to climate change, according to the context in which they operate, the resources they have at their disposal, and their level of preparedness. The International Co-operative Alliance, approaches climate change through the lens of the co-operative values, of self-help, self-responsibility, democracy, equality, equity, and solidarity and the ethical values of honesty, openness, social responsibility, and caring for others. Following these values, it proposes that: 1. Climate negotiations must ensure that GHG emissions must not exceed dangerous levels. 2. Countries and extra-national sectors such as shipping carriers and airlines must assume responsibility, for their share of global GHG emissions and their share of GHG emissions reductions. 3. Countries must live up to previous commitments, on which the rest of the world is depending.

ENVIRONMENT 4. All countries need to invest in efforts to reduce GHG emissions and adapt to climate change. 5. Countries with more resources need to help those with fewer resources to reduce GHG emissions and adapt to climate change. 6. Countries should adopt concrete policies towards sustainable consumption and production patterns and behaviours. 7. All countries need to report transparently on their GHG emissions and their efforts to reduce emissions. 8. Countries need to support the transfer of technology and intellectual property

The day was inviting the global cooperative community, to continue pushing for actions that will address climate change. Co-operatives around the world, took the opportunity to demonstrate leadership, by sharing their co-operative values, in battling this global issue.

that aids reduction of GHG emissions or adaptation to climate change while considering unsuspected detrimental impacts. 9. Recognizing the unique contribution co-operatives can play, in creating resilience, reducing GHG emissions, and advancing sustainable development, it is critical that countries create the legal and financial conditions, under which cooperatives, can significantly scale up their efforts and contributions, to address climate change. With 1 billion members, Cooperatives are an important global network that can play a key role in cutting carbon emissions. At the same time, cooperatives advance values such as the importance of dialogue and solidarity, while leading societies towards a democratic, people-centric economy. The co-operative movement can use this important opportunity to take a stand as a global actor of change and collaborate with its partners, within the international community. This collective effort can significantly impact the climate agenda and achieve a fair, green and just transition for all communities, leaving no one behind. “We have to demonstrate on a global scale, that it is possible to develop an economy with social inclusion and protection of natural resources. Our common home is in danger. There are methods of production and consumption that are constantly attacking the environment. We don’t have much time to reverse this situation. We must act now, with our values and principles”, noted Guarco.



AGRICULTURE In tandem, the County is running another project with the World Bank, where it will contribute Kshs 70 million, within two years, with the bank injecting Kshs 140 million, for the Coffee Revival Action Programme, in the next financial year.

Kiambu County Governor, Mr.James Nyoro, spearheads the distribution of fertilizers to coffee farmers.

Kiambu Coffee Co-operatives

Unite to Reform the Ailing Sector By June Njoroge. n a raft of reformation strategies to revive the Kiambu Coffee sector, twentythree Co-operative societies, have come together to form an umbrella body, called the ’Kiambu County Coffee Farmers Association’, which will oversee the ailing sector reclaim its lost glory.


Kiambu County Governor, Mr. James Nyoro, spearheaded the initiative, that saw the distribution of 10,166 bags, of quality industrial fertilizers, free of charge, to coffee farmers, as the county embarks on the provision of more incentives to boost yields. The governor, who was speaking at Gatukuyu Farmers Co-operative Society, in Gatundu North, lauded the 23 societies, assuring them that they would greatly reap from this strategy, through shared agronomy support and enjoy the economies of scale by bulk buying as opposed to each society hiring its own agronomist and purchasing its own



processing plant respectively; which increases expenses, incurring more losses than gains, yet they can unite, cut expenses and register exponential growth in the sector. Mr. Nyoro assured the said societies, that maximum support will be accorded to them by the County government, which planned to distribute 750 tonnes of fertilizer, at a cost of Kshs 40 million, to the twenty-three societies, which will in turn distribute the same to active farmers.

Kiambu Coffee farmers receive free fertilizers from the County Governement to boost production.

‘The governor noted that Phase two of the coffee sector revitalization, will inculcate rehabilitating dilapidated fermentation tanks, drying beds and other facilities in the primary processing facilities. He added that the County plans to put up coffee cafés, in major towns and education institutions to promote consumption of locally produced coffee. A plethora of factors have been ailing the sector, which has seen numerous coffee plantations in Kiambu and Ruiru sub-counties cleared out, to pave way for multibillion housing construction projects. The chairman of the Kiambu Coffee Co-operative Society, Mr Francis Maara, said that low prices and reduced production over the years, has bereft farmers the ability to purchase basic inputs. Consequently, many farmers had given up on coffee farming, due to poor prices further aggravated by exploitation by middlemen in the sector. ‘Since my appointment, my commitment to boost agriculture and improve the wellbeing of Kiambu farmers, has remained steadfast and my government will see to it that the sector transforms for the better,’ said Mr Nyoro. In April, the World Bank gave Kshs 1.5 billion, to Kenya’s Coffee sector, to kick start reforms and enhance productivity. The funds were to be distributed to the 8 counties leading in coffee production; Murang’a, Kiambu, Kirinyaga, Tharaka Nithi, Nyeri and Machakos, that account for close to 70% of national coffee

UPDATE production. The funds were to go towards linking farmers to direct markets, in order to eradicate the issue of cartels, automating co-operative processes and acquiring modernization equipment.

Non-Deposit –Taking Saccos to spend half of their 2019 Budget awaiting the government directive on public gatherings,” said Mr Njang’ombe in circular.

Agriculture executive, Mr. Joseph Kamau, said that under the association, the government will be able to support them, as it has been committed to revitalizing the sector and strengthening the marketing platform, for selling coffee. He added that the department, has invested in a specially blended fertilizer, that lowers soil acidity and is being supplied to farmers, to jumpstart production. ‘The secondary effect of poor market prices, is that farmers are not able to buy enough inputs. We have begun concentrating on fertilizers and pesticides, which is bound to spur production,’ said Mr Kamau. He noted that the lack of technical skills, on coffee productions by farmers, have further derailed the growth of the sector, as they are oblivious of what inputs to use, quantities required and the right pruning methods. ‘We have embarked on an extension programme called village based advisers where one model farmer, helps others improve their crop,’ he stated. ‘This is the first time the county government has aided farmers, in terms of farm inputs, marketing and processing as everyone else including banks and donors, are exiting the coffee industry,’ noted Mr. Maara. The fertilizer will go a long way in increasing yields, as Co-operative societies had indicated that fertilizers and pesticides, were a priority in improving coffee production; which would boost quality and ultimately lead to better market prices.

The move is in line with Section 24(a) of the Cooperative Societies Act which stipulates that for each financial year, the committee of a co-operative society shall cause to be prepared estimates of the societies income and expenditure, including recurrent and capital estimates for approval at the annual general meeting, at least three months before the end of the preceding year.

Commissioner for Co-operatives, Mr. Geoffrey N. Njang’ombe. By June Njoroge


on-Deposit Taking Saccos can only spend half of their 2019 budget, according to a new directive from the State Department of Co-operatives. In a circular, Mr. Geoffrey Njang’ombe, the acting commissioner for Cooperatives directed that until the budget estimates for 2020/2021 financial year gain approval at AGMs, Non-DT Saccos, will operate on the capped budget. This is due to the Covid-19 Pandemic, that saw to the postponement of AGMs/ ADMs, in March, under a directive from the Ministry of Industry, Trade and Co-operatives to curb to spread of the coronavirus. Since budgets have to be approved by members, the Saccos that had not held their AGMs, will be severely affected by this directive, because the longevity of the pandemic still remains unknown. “The Co-operatives whose budget has not been approved by the members for this year are hereby allowed to incur half of the expenditures approved by members in the last year estimates

The move will have a ripple effect on the affected Saccos, who will be operating on a limited budget, development projects will have to stall, rolling out digital platforms, opening new branches will not be possible; a tight expenditure will have to be embraced, bonuses, education and training, salaries, dividend advances and other capital spending plans that require a huge budget, will be greatly affected. In the wake of liquidity crisis that most Saccos are facing due to the pandemic, the move is like stirring up a hornet’s nest. It still remains unknown when AGMs will be held, given the surge of Covid-19 cases in the country. However, virtual AGMs will be a possibility, such as the one that was recently held by the World Council of Credit Unions(WOCCU) for the very first time due to the pandemic. Over 90 delegates from around the globe attended the virtual AGM and Kenyan Saccos even managed to scoop the 2020 Membership Growth Award, which was received by the KUSCCO Chair Mr. George Magutu Mwangi. Unaitas Sacco was able to hold a virtual Annual Delegates Meeting(ADM) in May, so virtual AGMs can also be held in this regard, but would require an enormous budget which for most Saccos is unavailable due to the pandemic.



UPDATE 2. Utilizing Cashless Payments Matatu Saccos have been embracing mobile payments, to help curb the spread of the coronavirus disease. Safaricom had rolled out a partnership with public transport sector players, to accept cashless payments through M-Pesa, in March when the pandemic started.

Passengers getting sanitized before boarding matatus.

Matatu Saccos Spearhead the Fight Against Covid-19 By June Njoroge.


atatu Savings and Credit Co-operative Societies (SACCOS), have been in their own capacities aiding in the fight against the Covid-19 pandemic by: 1. Creating awareness The Public Service vehicles have been serving as a vital communication tools, in spreading awareness on the Covid-19 preventive measures. In collaboration with the UN Habitat, many Matatu Saccos have been conveying messages and images on Covid-19 prevention. Under the UN-Habitat project, the matatus, have been spray painted with images of cyclists and people with masks, featuring messages such as ‘We care for your safety’, Keep Physical Distance’ and ‘Stop Coronavirus’. The Chairman of the Matatu Welfare Association, Mr. Dickson Mbugua, lauded UN-Habitat, for coming up with the idea. The first two uniquely branded vehicles were unveiled at an event



organized by the UN-Habitat, in partnership with the Matatu Welfare Association, Flone Initiative, Light Art Club, with the support of the National Transport and Safety Authority and the Kenya Urban Roads Authority. Mr. George Njao, the Director General of the National Transport and Safety Authority, pointed out that, each matatu carries around 300 people a day. “This means that one sick matatu worker could infect 300 people in a day. COVID-19 is here to stay. The message on the matatus goes beyond COVID-19 – it is going to change the overall general public health in our transport system,” he said. Kevin Wandera, one of the matatu owners, said that preventing the disease starts with each individual. “The first person to fight the disease is me. When I meet passengers, I don’t know who they met so I have to be very careful and encourage other people to follow my steps. I can be an ambassador of the messages,” he stated.

A matatu spray painted with Covid-19 prevention messages,as part of the UN-Habitat initiative.

‘Our partnership with the different public transit players, brings the convenience and safety of M-PESA, to this crucial sector given the widespread uptake of public transport, across the country,” Chief Financial Services Officer of Safaricom, Sitoyo Lopokoiyit said. The service had already been deployed to more than 300 City Star Shuttle vehicles in Nairobi and was rolled out to additional players, helping them further comply with the Government’s directives to combat the spread of Coronavirus. For the passengers who prefer to pay their fares through M-Pesa, they follow the standard procedure when sending money to another person, keying the number provided by the crew. Safaricom announced all its M-PESA customers can send money for free for transactions of Sh1,000 and below for a 90day period to help minimize the impact of coronavirus to its customers and to help them avoid the use of cash. 3. Reducing occupancy In respect to the social distance directive, Matatu Saccos have also reduced the number of passengers, to curb the spread of the coronavirus disease. Matatus are now carrying eight passengers as opposed to fourteen. 4. Sanitization of passengers Matatu Saccos have invested in litres upon litres of sanitizers, that they use on every passenger before they board. All passengers are also still required to don their masks in accordance with the law.


How Saccos are Coping with Effects of the Covid-19 Pandemic By Sacco Times Reporter accos have issued Covid-19 emergency measures to cushion members. From the onset of the pandemic and its disruptions on key sectors of the economy, a number of Savings and Credit Co-operative Societies have introduced relief packages to their cash-strapped members.

these Societies, who are usually re-elected by members each year, have been told to continue holding office, until the next AGM.


This follows job losses in such sectors, as the aviation industry, hotels, horticulture as well as transport among others. A number of Sacco members, have either lost their jobs, are on salary pay cuts or unpaid leave as cancellation of international flights has taken its toll on businesses. A cross section of Sacco top executives, who spoke to our publication, detailed the impact of Covid-19 on their business including a reduction in deposits by members as well as decline in the uptake of loan products. A number of Saccos have pulled out their sales teams, from collecting cash from members. With a shift towards use of digital platforms to interact with members, most Saccos, especially those that are rural-based with farmers as key members, are facing significant challenges. “The pandemic and resultant containment measures, has meant that the avenues for conducting effective member education forums on the use of IT, are limited,” said Mrs Dorothy Makena, Marketing Manager, Southern Star Sacco. The Chuka-based Society, has been encouraging members to use the M-SACCO banking platform, to make cash deposits. Co-operative Societies, especially those that operate Deposit-Taking business,

are changing the business models and encouraging members to use online and mobile platforms. “We have optimized all our ICT platforms, to reduce the number of members in our banking halls. Our customer support services are also available round the clock, with all cash handling staff using gloves,” said Mr John Mwangi, CEO Tai Sacco Society Limited, based in Githunguri, Kiambu County. He added that the Society, is adhering to all Government advisories and has postponed all meetings, including those held by the board, unless it is absolutely necessary to do so. Saccos are being encouraged to use e-cash as much as possible, to eliminate the risk of physical contact and overcrowding the banking halls. With Saccos unable to convene virtual AGMs, the regulator has permitted these societies to pay dividends and Interest on Members’ deposits, as long as their financial statements have been audited and submitted as per Section 25(7) of the Co-operatives Act. However, not all deposit taking Saccos have the capacity to move their transactions to electronic platforms. “Covid 19 has really affected us bearing in mind, that we depend on members who are either farmers, business people, salaried employees, churches and so on. As we speak, we are experiencing cash flow problems and while we have introduced members to mobile banking, the uptake is still slow due to a huge technology gap,” said Makena. With AGM cancellations, directors on the Board of

The State Department for Cooperatives, also directed that all dividends and rebates paid out to members, but will still need to be ratified when the AGMs eventually take place. According to a report by Cytonn, an independent investments management firm in Kenya and the USA, Covid-19 has taken unprecedented and most likely the largest test, to the survival of Saccos. Cytonn said many Sacco members are withdrawing their savings to cater for their personal needs. Most members, especially those in societies drawing members from the aviation sector, horticulture and hospitality industry, going on unpaid leave or have been affected by pay-cut while many businesses have either recorded losses or have been completely shut down. Many Saccos have moved their services online and are leveraging on their Investment, as many members can access services at their convenience. There has been an increase in the use of online services as many people are encouraged to stay and work from home, to flatten the curve. In the wake of Covid-19, Saccos need to implement parallel measures, to reduce the impact of the pandemic on their liquidity immediately, while putting in place measures to accelerate their recovery after the Covid-19 crisis and cushion their institutions against future shocks. For instance, Saccos can take advantage of the central bank measures, to restructure loan repayments over the next 6 to 12 months. AUGUST - SEPTEMBER 2020 | SACCO TIMES



Sacco News Round up By June Njoroge.

Big Win: Kenyan Saccos Scoop 2020 WOCCU’s Membership Growth Award


ccolades to Kenyan Saccos for clinching the 2020 WOCCU’S Membership Growth Award during its first ever virtual AGM, due to the Covid-19 Pandemic. The award was accepted by the KUSCCO Chair Mr. George Magutu Mwangi.

Stima Sacco launches New Instant ATM Cards & Employs a New CEO


tima Sacco just launched new instant ATM cards, making it one of the few Saccos in the country to offer them. The card will greatly boost Customer Service, in terms of efficiency and convenience, therefore enhancing member experience and satisfaction.

Harambee Sacco Hits Market with New Debit Card


n a first for d e p o s i t- t a k i n g Saccos, a VISA branded Debit Card has been rolled out by Harambee Sacco in partnership with Co-operative Bank of Kenya. Harambee Sacco becomes the first credit union to offer its own branded debit cards to members, joining the top ranks of commercial banks, which already offer this service to its customers. Members of Harambee Sacco will now be able to apply for and instantly receive a Visa Debit card and immediately start using the card to transact in the usual way at any Visa-branded outlet including ATMs, Co-op Bank Kenya Agents or to shop at Visa-branded outlets and online stores. According to Harambee Sacco Chairman Macloud Malonza, this new product will significantly boost convenience to members who will now not wait for weeks before they receive their cards. Malonza has asked Sacco members to apply for the card to minimize branch visits and deepen cashless transactions especially in the wake of Covid-19 pandemic. Vincent Marangu, the Director of Co-operatives banking at Coop Bank, said the system will deepen digital banking services to Saccos. This instant card issuing solution will be rolled out to all Saccos that are providing Visa Debit cards to members through the Bank.


Dr. Gamaliel Hassan takes charge as CEO of Stima Sacco


here is a change in executive suite, at Stima Sacco, Mr. Chris Useki has exited and has been replaced by Dr. Gamaliel Hassan, who becomes the third CEO with a PhD degree in the Sacco sub-sector. Both Useki and Hassan are MBA degree holders, in a star-studded management team at Stima Sacco.Dr Gamaliel Hassan is now the acting chief executive, following the expiry of the term of Chris Useki. Hassan is a holder of a Ph.D. and MBA in Strategic Management, BA (Economics), CPA (K) and CPS (K) in good standing. He is also an African Development Educator (ADE), a Certified



Islamic Finance Executive (CIFE) and an Advanced CIFE both in Accounting and Financial Analysis. Hassan has over 20 years’ work experience, 15 of which have been in senior management. He has expertise in corporate & strategy, customer orientation and commercial awareness as well as communication, research, advocacy and networking. Hassan is a certified Sacco development educator. He is the chief manager for strategy and business. Mr Useki served in an acting capacity from October 2016, when the former boss Paul Wambua resigned until his appointment which was in August 2017.

BRIEFING ROOM Harambee Sacco donates PPEs worth Kshs 3 million to the Police force in the fight against Covid-19


n a bid to curb the spread of the coronavirus disease, Harambee Sacco donated protective gear to the police force to ensure safety of officers who make up most of the Sacco’s membership, as they carry out their duties. The donations which entailed water tanks, gloves, masks, bottles of sanitizers and personal protective equipment; were received by the Deputy Inspector General of Police Mr Edward Njoroge Mbugua at Vigilance House in Nairobi. Mr. Charles Konzolo, Harambee Sacco’s national treasurer, noted that the Sacco would be making similar donations to the traffic police department and the general service unit whilst urging other organisations to support the frontline combatants of the Covid-19 pandemic.

New World Council Board Chair Vows to Defend and Promote Co-operative Model Worldwide


r. Rafal Matusiak, has been elected as the World Council of Credit Unions(WOCCU) Board Chair by the Council’s Board of Directors, at the 2020 Annual General Meeting; the first WOCCU AGM to be held virtually due to the Covid-19 Pandemic. He has been serving as the President of the National Association of Co-operative Savings and Credit Unions (NACSCUPoland). Matusiak becomes Chair as he enters his sixth year of service on the World Council Board. He was first was elected as a Board Director in July 2015. He was then elected Chair of the Governance and Elections Committee in 2017, before being elected Vice Chair and Secretary in 2018.Matusiak vowed to help World Council promote and defend the credit union model around the world through its advocacy efforts and development work.

SASRA Urges Saccos to Close Offices and use Mobile Wallet


he Sacco Societies Regulatory Authority(SASRA) has directed Saccos to close physical banking halls and shift to online, mobile phone Apps to cushion members from COVID-19 pandemic. Speaking at an online conference by the World Council of Credit Unions and the African Confederation of Co-operative and Credit Association, SASRA Chief Manager Mr Peter Njuguna directed all the 174 licensed DT Saccos to file monthly loan performance reports to enable the regulator monitor the pulse of these credit unions. According to World Council’s Technology and Innovation for Financial Inclusion (TIFI) Project team Saccos’ Asset and Liability Management (ALM) strategies are going to be severely tested by COVID-19.


K-Unity Appoints a New Chairman


r. Joseph Kamau is the new K-Unity Chairman, taking over from Mr. John Mbitu, who will now serve as a director at the Sacco.

CIC Group Appoints New CEO


r. Patrick Nyaga, is the new CEO at the CIC Insurance Group PLC taking over from Tom Gitogo. He has well over 25 years working experience, chiefly in auditing and banking. He has worked in various senior positions in Banking; previously he was at Co-operative Bank as the Group Finance and Strategy Director, at Barclays Bank as the Regional Head of Assurance and at KPMG (EA), with the main focus being audit of financial institutions in Kenya and region. He is a certified Public Accountant (K) and a member of ICPAK and a member of the Institute of Directors of Kenya. Mr. Nyaga has a wealth of experience and is more than qualified to take CIC Group to greater heights.




Here is what our readers had to say Salute!ToSaccoTimesMagazine I absolutely enjoyed your May-June issue, it was very in depth, informative and educative. I had no idea Co-operatives are that old; the piece on History of Cooperatives was very enlightening and thorough, in tracing the roots of the Cooperative movement in Kenya. I have still not cracked the riddle on your Sacco Times Dominoes page and neither have I found the word ‘interest’ in the word search puzzle. Another take away for me was the article on environment and being a member of a Sacco in Nairobi, we definitely need to do more besides the tree planting days we have annually. The recommendations you gave on some strategies Saccos should implement are very sound, and I might broach some during next years’ AGM, to fellow members to see if we can take on multiple environmental pledges, because its undoubtedly an issue of concern. Great job! I look forward to your next issue. Grace Kathambi, Nairobi County

Co-ops for Climate Change The article on the 2020 World Environment Day, in the previous issue was very informative. Saccos with their vast network, can make a huge difference in averting climate change. Collectively, the entire movement in Kenya can make a bigger impact, towards mitigating climate change. Indeed, Saccos in the country need to take pledges towards environmental conservation. I come from Kitui County, and we have been bearing the brunt of the locust infestation first hand, since January, at the time I didn’t know it was climate related. Our family farm has been left bare, because the locusts have been feeding on everything from vegetables, fruits and even the napier grass meant for cows. The situation has slightly improved because of intervention from the government but we are yet to recover from the losses we are incurring which has been exacerbated by the coronavirus pandemic.

Saccos to break common bond to avert liquidity crisis Some Saccos with a common bond especially from the worst hit sectors of the economy such as aviation, tourism, horticulture and hospitality should diversify their membership to avert an imminent liquidity crisis. Due to many layoffs and employees being sent on ‘unpaid’ leave, members are unable to service their obligations to these Saccos and some have withdrawn membership. This will go a long way in boosting stability. Dorcas Wangari, Nyeri.

Clinton Syombua, Kitui County.

Can Saccos roll out innovative products for retirees? My father just retired December last year and has recently withdrawn membership, from a Sacco, where he has been a member for over thirty years. Upon asking him, he said the Sacco has no financial products or services, for their retired members. This is a niche that Saccos can cash in on, from senior members, who can channel their pension earnings through their respective FOSA accounts, which will consequently sustain membership and capital base. Petrolina Amatsi, Nyanza.

{Dear Readers, because your feedback is invaluable, engage with us by sending us feedback on matters pertinent to the Co-operative sector via satimeseastafrica@gmail.com or you can share your thoughts on our various social media platforms.}



Kudos to the Cooperative Coronavirus Response Committee I would like to congratulate the Cooperative Coronavirus Response Committee, all contributing Cooperatives and affiliated bodies, for the commendable work they have been doing to reach out to the needy and vulnerable Kenyans, adversely affected by the Covid-19 pandemic. The ‘survival Co-op kit’, being distributed is going a long way in helping many households. Keep up the good work! Mwanaisha Mwadime, Kwale


Months 72





*653# to register and access M-Tawi services.

DIAL *653#

• Apply for instant loans i.e. Q-cash, M-sasa, Flex and Golden loan. • Request for various services e.g. ATM cards, Standing orders, Mini and Full statements. • Pay for utility bills.

And so much more! BRANCH NETWORK HEADQUARTERS Ngara Road, off Muranga Road, P.O. Box 51042 ‐ 00200, Nairobi 0709 825 000 info@policesacco.com

KAKAMEGA BRANCH Daaron Foundation Trust building, Ground floor, Off Mumias Rd opposite NALA Hospital 0709825560

MOMBASA BRANCH Oriental Building, ground floor, Nkurumah Road 0709 825 505

MERU BRANCH Solco Plaza, Ground Floor, Moi Avenue 0709 825 590

ELDORET BRANCH Kirem Plaza, 3rd floor Ronald Ngala Street 0709 825 530

NYERI BRANCH Kasturi Plaza, 1st Floor, Kimathi Street 0709 825 570

KISII BRANCH Mocha place, 2nd Floor, Opposite Tuskys 0709 825 551

NAKURU BRANCH SAILEE HSE on the GROUND FLOOR. Kenyatta Avenue opposite Nyayo Gardens 0709825600



PAYBILL SERVICE Members can deposit to their FOSA accounts using the new Paybill number 4027903 enter their account number e.g. 502XXXXXXXXX then enter the amount.

0709 825 000


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Sacco Times is a monthly advertorial news magazine which publicizes Sacco’s and other corporate companies, covers Sacco success stories, dev...


Sacco Times is a monthly advertorial news magazine which publicizes Sacco’s and other corporate companies, covers Sacco success stories, dev...