SACCO TIMES EDITION 30 OCTOBER - NOV 2020

Agenda 2030: Co-operatives Contributions to the UN SDGs

S Hariet W. Masai

SASRA: Clarion Call for

WOCCU: A Guide

the Merger of Small Saccos

for Saccos in Planning

to Maintain Stability

Virtual AGM’s.

SACCO TIMES

SACCO TIMES

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

KEEPING YOU INFORMED

OCTOBER - NOVEMBER 2020 | KSh 150

ISSUE - 2019030 MANAGER MARKETING

Satisfaction and Confidence, Savers Pledge Life-Time Membership to UTS

Plus

Mr. Simeon Kioko Kitheka, Universal Traders Sacco Chairman • Of Untold Sacco Stories: Member Chronicles-Co-operatives Transforming Lives.

• Retirees Inclusion: How Saccos Can Nurture an Aging Membership.

• 2020 ICU Day: Celebrating the Global Spirit of Co-operation. www.saccotimes.co.ke

SACCO TIMES

OCTOBER - NOVEMBER 2020 | SACCO TIMES

@saccotimeske

1

2

SACCO TIMES | OCTOBER - NOVEMBER 2020

Agenda 2030: Co-operatives Contributions to the UN SDGs

S

CONTENTS

SASRA: Clarion Call for

WOCCU: A Guide

the Merger of Small Saccos

for Saccos in Planning

to Maintain Stability

Virtual AGM’s.

SACCO TIMES

SACCO TIMES

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

KEEPING YOU INFORMED

OCTOBER - NOVEMBER 2020 | KSh 150

ISSUE - 2019030 MANAGER MARKETING

Satisfaction and Confidence, Savers Pledge Life-Time Membership to UTS

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

SACCO TIMES

SACCO TIMES

Plus

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

Mr. Simeon Kioko Kitheka, Universal Traders Sacco Chairman • Of Untold Sacco Stories: Member Chronicles-Co-operatives Transforming Lives.

• Retirees Inclusion: How Saccos Can Nurture an Aging Membership.

• 2020 ICU Day: Celebrating the Global Spirit of Co-operation. www.saccotimes.co.ke

SACCO TIMES

OCTOBER - NOVEMBER 2020 | SACCO TIMES

@saccotimeske

1

CHIEF EXECUTIVE OFFICER Joan Mutindi

SACCO TIMES

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, Clarence Imbayi, Kipkoech Chirchir, Dickson Adhiambo, Doreen Atenya, Vincent Munga, Alexander Kimuri, Lilian Mutiso, Irene Atieno, Austin Nyambuoro, June Njoroge, Enock kipturgut, Malachi Motano, Eric Bosire. Brighton Makaori.

SALES & ADVERTISING Margret Ndung’u, Enock Kipturgut, Dorcus Koech, Emmah Mureithi 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

SASRA: Clarion Call for the Merger of Small Saccos to Maintain Stability

5

Agenda 2030: Co-operatives Contributions to the UN SDGs

6

Widows in Murang’a Form a Sacco to Advocate for Their Rights

8

Satisfaction and Confidence, Savers Pledge Life-Time Membership to UTS

10

Imarisha Sacco Donates to Kericho and Bomet County Governments

14

Of Untold Sacco Stories: Member Chronicles-Co-operatives

16

Kenya Police Sacco Leads in Rewarding Top Savers

18

2020 ICU Day: Celebrating the Global Spirit of Co-operation

23

Boresha Sacco opens branch in Iten, Elgeyo-Marakwet County

24

Saccos Must Adopt Initiatives to Attract and Retain High End Savers

27

The Rise from Humble Beginnings to Formidable Business Ventures

28

Slum-based Sacco, SHOFCO, Adopts Technology & Diversifies Membership

31

Wakenya Pamoja Sacco Greatly Impacts the Lives of Members

32

WOCCU: A Guide for Saccos in Planning Virtual AGM’s

35

Retirees Inclusion: How Saccos Can Nurture an Aging Membership

37

Mombasa Port Sacco Assures Members of Prosperity

38

Digitizing Saccos is Currently Inevitable but Must Begin with Management

40

Future of Co-operatives is Uncertain due to Succession Structures

42

Sacco News Round up

44

SACCO TIMES

Testimonials 46

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

MARKETING MANAGER

OCTOBER - NOVEMBER 2020 | SACCO TIMES

3

EDITORIAL Dear Readers,

W

elcome to the 30th issue of Sacco Times Magazine; the premier and widely read publication of Sacco stories and crucial matters, revolving around the vast Co-operative movement. Our founding principle of ‘Keeping you informed,’ holds true hitherto, ever striving to distil with creativity, accuracy, precision and perspective; significant developments in the lucrative Sacco sector.

Finally, the dark clouds of the Covid-19 Pandemic, are slowly dissipating and we are steadily steering away from the crisis, with economic recovery gaining momentum. In his speech, at the recently held National Covid-19 Conference, the president, said that currently, Kenya’s Covid-19 positivity rate stands at 4.4%, which is a remarkable achievement, as we are below the 5% threshold, recommended by the World Health Organization (WHO), for reopening.

The Co-operative movement is also experiencing a resurgence, after a turbulent 6 months, where most Saccos faced a liquidity crisis. The resilience demonstrated by Cooperatives through that period, has been profound and even in the face of such turmoil, they have lived up to the spirit of co-operation.

This is a very inspiring and empowering edition, as we chronicle authentic stories, of members, whose lives have been utterly transformed, by their Saccos. Members who have attained great achievements, thereby impacting the lives of others, by virtue of patronizing the array of products and services, offered by their respective Saccos.

Its only when you get to hear the story from a direct beneficiary, do you distinctly see the integral role played

by Saccos. Its no wonder, why there has been such a rapid mushrooming and burgeoning of Co-operatives, across the country; people want to tap into the myriad benefits. For this edition, we have featured Universal Traders Sacco(UTS), Kenya Police Saccco, Imarisha Sacco, Boresha Sacco, Cosmopolitan Sacco, Wakenya Pamoja Sacco and Mombasa Port Sacco.

There are some major developments, that have occurred since our last edition, SASRA, has been calling for mergers and acquisitions of smaller Saccos, to maintain stability in the sector. The regulator has also moved supervision online, as a precautionary measure against the pandemic. The state backed Kenya Mortgage Refinance Company (KMRC), has commenced operations, after receiving a license, from the Central Bank of Kenya (CBK); Co-operative shareholders such Harambee Sacco and Ukulima Sacco, have already started rolling out, this product to their members.

In light of the recently held 75th United Nations General Assembly, we take stock of the co-operatives role in the achievement of Agenda 2030, through the Sustainable Development Goals (SDGs). Virtual meetings, have become the new normal and we have shared key insights, on how

4

SACCO TIMES | OCTOBER - NOVEMBER 2020

Saccos can go about holding their AGMs and ADMs virtually, following a guide from the World Council of Credit Unions (WOCCU).

The quest for Co-operative digitalization, is still on, in response to Challenge 2025, on digitalization of the global co-operative movement; to explore how technology can strengthen and catalyze the growth of deposit-taking Saccos, to harness socio-economic endeavors.

The 2020 International Credit Unions Day, is also coming up, it’s a global celebration day, with the ultimate goal of raising awareness, about the great work, that credit unions(Saccos) are doing around the world and give members an opportunity to get more engaged. Retirees inclusion, has been an issue of concern, with Saccos lacking products and services for retirees, we shed light on how Saccos can nurture this aging membership.

Saccos have also been adopting various initiatives to retain high end savers, we also have a piece on that.

The Co-operative Coronavirus Response Committee (CCRC), continues to receive donations to reach out to the targeted 500,000 vulnerable households, adversely affected by the pandemic.

On the briefing room section, we enlighten you on Sacco news updates and you absolutely have to try our crossword puzzle, on the Sacco Times dominoes page, as well as unravelling the riddle. Sacco Times Magazine also wishes a happy customer service week to all our esteemed clients.

Despite the slow return to normalcy, Covid-19 is still at large and I urge you to continue 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.

UPDATE

SASRA: Clarion Call for the Merger of Small Saccos to Maintain Stability

By June Njoroge

T

he Sacco Societies Regulatory Authority (SASRA), has issued a clarion call to small Savings and Credit Co-operative Societies (SACCOS), to merge, in order to ensure they remain competitive, efficient and stable, whilst lowering operational costs.

As smaller Saccos tackle the uphill struggle, to mobilize deposits, the giant Saccos continue to deepen the control of deposits, which is the chief lending source, to members, with the top 20, already controlling more than half of the total deposits.

SASRA, states that the 20 DT Saccos, controlled a cumulative total deposits of Kshs 224.75 billion in 2019, which accounted for 59.08%, which is over half of the total deposits, which stand at Kshs 380.44 billion. An analysis indicates that, the bulk of the deposits are concentrated in the few DT-Saccos, with a deposit size in excess of Kshs 5 billion.

This coming after the Regulator, revoked licenses of several Saccos and put some on restricted operations, due to liquidity constraints. Since 2015, SASRA has revoked licenses of 14 DT Saccos, on account of failing to maintain the required levels of core capital.

In 2019,12 Saccos, were given license renewals, but with conditions attached, because they were in breach of some ratios.

The Regulator, warns that as the market share of small Saccos, continues to come under pressure from large Saccos, they are at risk

of folding up, making it a Hobson’s choice to merge and consolidate.

“A time has thus come, for the Sacco subsector, to start policy conversations and dialogues, on voluntary consolidation and amalgamations, of the many small DT-Saccos, in order for them to remain competitive and benefit from associated comparative advantages,” noted the Regulator.

According to their data, in 2012, there were a total of 215 Saccos, as opposed to the current 172 licensed DT-Saccos, which means that 43 Saccos, have dropped out in a span of 8 years.

In reiteration, the Central Bank of Kenya, has been open to the mergers and acquisitions, stating that they are crucial, for bringing stability in the sector.

A total of 99 DT-Saccos, whose total deposits were below the Sh1 billion threshold, controlled a paltry 8.4%, of the total deposits within the system.

Large Deposit-Taking Saccos (DT-Saccos), have been urged to absorb these smaller entities, in a mutually beneficial venture, whereby, the large Saccos increases membership and consequently stability, whilst the smaller Saccos, will be saved from imminent insolvency, should the consolidation in the Co-operative movement come to pass.

Similarly, this has been witnessed in the banking sector, whereby, small banks have been bought out by large banks; where over 70% of deposits, lay in the hands of the top eight, out of the 40 entities.

The recent case scenario, being the acquisition of the Jamii Bora Bank, which was renamed Kingdom Bank, after full acquisition by the Co-operative Bank.

“In the absence of such consolidation and amalgamation initiatives, a time will come in the medium to long term, when the market share of these small DT-Saccos, will be wiped out, thereby, rendering them financially unviable,” warns the Regulator. The stipulated regulations by SASRA, require among other things, that all DT Saccos, maintain at all times, the prescribed minimum core capital, of not less than Kshs 10 million.

In addition, the DT Saccos, are also required to maintain a minimum of capital adequacy ratios, of core capital to total assets of not less than 10%; core

SASRA CEO, Mr. John Mwaka. capital to total deposits at 8% and institutional capital, to total assets at 8% respectively.

This a move towards strategic growth in the movement, which is meant to also shield members, in the cases where a Sacco license in revoked, leading to its consequent liquidation, whereby, it becomes a long and tedious process, for members in the recovery of their savings.

Deposits are very crucial and account for over 90%, of funding for loans and other credit facilities, issued by DT-Saccos.

Consequently, without adequate deposit mobilization, their existence is compromised, because the Sacco business model, thrives on allowing members, to borrow up to three times, their savings.

This move, will also help seal poor corporate governance loopholes and boost the confidence of members, from small Saccos, who would have otherwise, been thrust in a precarious position, in the case of the aforementioned, license revocation and consequent liquidation, or insolvency.

OCTOBER - NOVEMBER 2020 | SACCO TIMES

5

EXCELLENCE

Agenda 2030: Co-operatives Contributions to the UN SDGs

By June Njoroge

T

he 75th session of the United Nations General Assembly, was recently concluded in the last half of September; the progress of the Sustainable Development Goals (SDGs), was a key area of focus.

In light of this, its imperative to take stock of the contributions made by Co-operatives; who were identified as key partners, in the implementation and acceleration of the Agenda 2030, for Sustainable Development.

The Agenda was adopted by United Nations Member States and World Leaders in 2015; it sets out the roadmap or blueprint, for a future of shared prosperity and environmental sustainability.

It stipulates 17 Sustainable Development Goals (SDGs), which are an urgent call for action, by all countries; both developed and developing, in a unified global partnership.

The goals are targeted towards poverty eradication, improving health and education; reducing inequality and spurring economic growth, whilst tackling climate change with the ultimate goal of preserving the planet.

SDGs, aim to take the work begun in the year 2000, by the Millennium Development Goals and transform the world, through sustainable development, with the aforementioned 17 internationally agreed targets.

In his inaugural speech, UN Secretary-General António Guterres, called for an urgent and transformative change, to deliver the Sustainable Development Goals by 2030.He noted that Covid-19 had presented a drawback on the progress SDGs

6

but was slowly recovering.

The Co-operative enterprise model, has much in common with the 2030 Agenda. Synergies between Co-operatives and the 2030 Agenda, have been identified and leveraged effectively.

In reiteration, by virtue of these acknowledged synergies, between the UN’s vision for a sustainable future and that of the Co-operative movement, its pretty succinct, that Co-operatives are key contributors to the achievement of the Agenda.

The Committee for the Promotion and Advancement of Co-operatives(COPAC), has been carefully examining the contributions by Co-operatives, to the different SDGs and producing a series called ‘Transforming our world: A Co-operative 2030; of how Co-operatives, are directly contributing to every particular SDG.The Covid -19 Pandemic, has clearly demonstrated the resilience of the Co-operative model, arising as a critical actor of change, with Co-operatives, having aligned their work with the

SACCO TIMES | OCTOBER - NOVEMBER 2020

SDGs and established targets and indicators, to track achievements.

COPAC hopes to raise awareness, about the significant contributions, of Co-operative enterprises, towards achieving the 2030 agenda, in a sustainable, inclusive and responsible way; encouraging continued support for their efforts.

Currently, Co-operatives, are in Phase two of implementing the Blueprint for a ‘Co-operative Decade,’ a global strategy, for the Co-operative business model, to be the acknowledged leader in economic, social and environmental sustainability, model preferred by people and the fastest growing form of enterprise.

EXCELLENCE The International Co-operative Alliance, as the global voice of the movement, is committed to educating Co-operatives about SDGs, helping co-operatives, respond to the UN’s call to action.

The UN 17 Sustainable Development Goals (SDGs)

The ICA President, Ariel Guarco, notes that “Cooperatives are making differential contributions, to the sustainable development agenda; chiefly because Co-operative values and principles are aligned to the global goals,” Saccos are key partners in the advancement of SDGs and the model of business, is based on ethics, values and principles, that put the needs and aspirations of members, above the simple goal of making profit.

The 17 Sustainable Development Goals (SDGs) to transform our world:

The Co-operative principles and values, which constitute of the co-operative identity; are guided by solidarity and common values, that enable them to address global problems, by offering local solutions.

GOAL 4: Quality Education. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.

Co-operatives nurture long-term vision for sustainable economic growth, social development and environmental responsibility; through self-help and empowerment, reinvesting in their communities and concern for the well-being of people and the world. Co-ops for 2030 is a campaign for Cooperatives, to learn more about the SDGs and report their progress.

GOAL 6: Clean Water and Sanitation. Ensure availability and sustainable management of water and sanitation for all.

The agenda, explicitly recognizes Co-operatives, as important players, within the private sector to achieve the SDGs, creating an opportunity for them, to position themselves as partners, with local, national, regional and local institutions, to achieve sustainable development.

For instance, in line with SDG 8, on decent work and economic growth, Co- operatives have a proven track record, of directly and indirectly, providing stable employment and significantly contributing to the economy, making up about 45% of Kenya’s Gross Domestic Program (GDP).

In addition, in line with SDG 17, on Partnerships to Achieve the Goals, one of the co-operative principles is ‘Co-operation among Co-operatives,’ making them aware of the importance of an effective international and multilateral cooperation. Again, Co-operatives, as member-owned, people-centered and value based enterprises, are well placed to be vehicles, for promoting equality and inclusive economic development; which is in line with SDG 10.

The 2030 Agenda for Sustainable Development, recognizes the contributions of Co-operatives and calls on them, to continue working together, with the international community, in achieving the Sustainable Development Goals (SDGs).

GOAL 1: No Poverty. End poverty in all its forms everywhere.

GOAL 2: Zero Hunger. End hunger, achieve food security and improved nutrition, and promote sustainable agriculture.

GOAL 3: Good Health and Well-being. Ensure healthy lives and promote wellbeing for all at all ages.

GOAL 5: Gender Equality. Achieve gender equality and empower all women and girls.

GOAL 7: Affordable and Clean Energy. Ensure access to affordable, reliable, sustainable and modern energy for all GOAL 8: Decent Work and Economic Growth. Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all.

GOAL 9: Industry, Innovation and Infrastructure. Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation.

GOAL 10: Reduced Inequality. Reduce inequality within and among countries.

GOAL 11: Sustainable Cities and Communities. Make cities and human settlements inclusive, safe, resilient and sustainable.

GOAL 12: Responsible Consumption and Production. Ensure sustainable consumption and production patterns.

GOAL 13: Climate Action. Take urgent action to combat climate change and its impacts (taking note of agreements made by the UNFCCC forum).

GOAL 14: Life Below Water. Conserve and sustainably use the oceans, seas and marine resources for sustainable development.

GOAL 15: Life on Land. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification and halt and reverse land degradation, and halt biodiversity loss.

GOAL 16: Peace and Justice Strong Institutions. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.

GOAL 17: Partnerships to achieve the Goal. Strengthen the means of implementatio and revitalize the global partnership for sustainable development.

OCTOBER - NOVEMBER 2020 | SACCO TIMES

7

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.

PREVENTION IS THE BEST REMEDY. 6 EASY STEPS TO STAY SAFE FROM COVID-19

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.

SACCO TIMES | OCTOBER - NOVEMBER 2020

UPDATE secure their properties without charges. Subgroups will therefore be established by the Sacco in the wards and constituencies, to organize ward clinics with the lawyers, to reach out to widows in the villages. Wajane Sacco will also support the elderly widows, who do not benefit from the cash transfer.

It will provide sponsorships for the desperate and needy widows children’s education.

Widows in Murang’a Form a Sacco to Advocate for Their Rights

By Malachi Motano idows in Murang’a County have formed a Sacco to help them champion for their rights, over the inheritance of properties, that were left behind by their deceased husbands.

W

The Sacco dubbed, ’Wajane Murang’a Sacco,’ will help widows secure their rightful properties, upon the death of their husbands.

The Murang’a County Women Representative, Sabina Chege, speaking while celebrating with widows at Kimorori grounds in Kenol town, took the initiative to bring the widows together, upon the discovery that many have become victims as soon as their husbands are buried.

Losing a husband for many women in Kenya, especially in the rural areas, is very frustrating and especially if the husband was the breadwinner of the family. Most communities in Kenya still observe the retrogressive cultural practice, that disregards widows, the rights to own family property. As a result, most widows become helpless, often neglected, mistreated and in some cases, have been evicted from

Sabina Chege with widows at Kimorori grounds.

their matrimonial homes.

“Many widows are thrown out of their matrimonial homes and their property is taken away. Since they don’t have the financial capability to fight for their property, they are forced to leave and start afresh,’ lamented the Women Representative. “Some women have had their brothers-in-law seeking to inherit them, and they are left helpless. The Sacco will help the widows to stand together and support each other.” She noted.

The Sacco, will engage a team of lawyers, who will volunteer their services, to help the women

Sabina Chege (C) with women at Kimorori grounds.

Whereas many widows live alone for decades, many widowers remarry as soon after their wives die. Chege gave them different gifts, but also brought on board the Women Enterprise Fund, Uwezo fund and NHIF to talk to them on how to better support themselves.

The Women Representative was confident that with proper structures in place, members of the Sacco will soon be able to benefit from the Women Enterprise Fund and start income-generating activities.

The founder and Chairperson of Muungano wa Wajane communitybased organization Bertha Gaitho (the widow of the late AIPCA Archbishop Samson Gaitho), said the group had forwarded a bill to support widows to the Attorney General 5 years ago, but is yet to be tabled in Parliament. According to her, if passed into law, the bill would protect every widow in the country.

She appealed to the government, to set up a kitty to support widows, saying that being financially stable will help them deal with the stigma.

“The organization has over 500 groups in 16 counties.

Many are accused of causing their husbands’ deaths, while some are even imprisoned. Others are displaced from their homes with their children,” she added.

The widows are always forced to find other ways of supporting their families, since the will and testaments left behind by their late husbands, are often challenged in court.

OCTOBER - NOVEMBER 2020 | SACCO TIMES

9

TESTIMONIALS

Satisfaction and Confidence, Savers Pledge Life-Time Membership to UTS

By Malachi Motano

Leader Testimonial

“

My name is Simeon Kioko Kitheka, the Chairman of UTS. I joined in 1993, back then I was a teacher, resigned and became a business consultant, which I don’t regret to date. Where we are seated is my farm, I got a loan from UTS, to buy the farm which is 25 acres.

I also got a loan for business.

From UTS loans, I dug a dam, bought a lorry which is a water boozer, which I use to sell water.

I also have a hotel which has created employment to over 50 young men and women, who are all paid through the SACCO. I deposit money on daily basis and all my allowances pass through the SACCO. All my children and my wife have accounts at the SACCO, which has become my primary Bank.

In my capacity as the Chairman, though it will be officially

Chairman Kitheka at his farm in Vota Katumani. reported at the ADM next year, I would like to tell Nairobi that we are coming. Already we have constituted a committee, to work on the logistics.

My vision for the SACCO is, that I want it to be the biggest SACCO in the country, that assists people, the way it has assisted me to grow.” he concluded.

SACCOS, like other financial institutions, have al-

ways reported outstanding performances to members, either at the annual general or delegates meetings respectively.

Whether the achievements are projected on a graph or the reality on the ground, is yet to be established. However, SACCO Times Magazine, with the case study of Universal Traders SACCO (UTS), was able to get to the bottom of this dilemma, getting stories from the SACCO Members themselves.

John Mwaura, is the Chairman of Space Capital Limited, which gives loans to people with small businesses; money to either start or boost their business, like vegetable vendors or matatu operators.

Space Capital Staff and Chairman John Mwaura says the lender has enjoyed loans from UTS.

10

SACCO TIMES | OCTOBER - NOVEMBER 2020

“I was introduced to UTS, by a teacher friend back in Embu where I come from, at the time I was working for Kenya Power

TESTIMONIALS at the Gitaru station. The friend who was already a member of the SACCO, told me that UTS, was just a SACCO where one can borrow money to grow mangoes, and buy cows. As an investor, I decided to put some money there to understand the mangoes cow concept.” He stated.

“After saving for some time, I took a loan of Kshs. 170,000, for another investment. That was the beginning of my walk with UTS. I juggled my work at Kenya power with other financial investments. The one shining today, courtesy of UTS, is Space Capital, where we are five directors. Together with my finance director, we went to Machakos and met the SACCO CEO Dominic Mutunga, who listened to us and gave us an appointment to present our proposal to the Board. Our Kshs 20 million proposal was accepted, on condition that we had to save first with the SACCO.” he noted.

“We started mobilizing funds.

The five directors, agreed to save Kshs 1 million each, to enable the SACCO to give us the loan. We saved for six months and were able to get the loan in 2017.Since then, we have continued saving and borrowing. We have taken about four to five loans. I have also brought in other companies, which have borrowed from UTS. Space Capital, has also given birth to some of its subsidiaries, like speed cash, double spaced among others.

We have introduced all of them to UTS. We took advantage, after learning that UTS has various products. After the Kshs 20 million, we borrowed Kshs. 8 million, topped up and doubled to Kshs 40 million. The SACCO did not at any time deny us an audience.” He noted.

Afritech Graphics And Press Chemicals Ltd staff, CEO and MD (not in uniform), UTS Mlolongo Branch manager (front, third from right) and Marketing Manager Peter Kiamba (front - right). his partner Esther Omucheni (MD), own Afritech Graphics And Press Chemicals Ltd, a print media investment, which has been in the industry for 23 years. They share their journey after joining UTS. “I knew UTS through Peter Nzavi who was a director at UTS. Every time I passed by Mlolongo, I could see colours, that looked like Co-operative Bank and was wondering whether Co-operative Bank was already here, until the day I went to market my photocopiers, thats when I met Mr. Nzavi. That is how our relationship started. “said Michael.

“We joined UTS in early 2019 and have benefited a lot, in terms of securing loans, and the overdraft facility. Processing loans at UTS can take just a day.

When we wanted some money to pay entry duty, for some of our goods, but were short of Kshs I million, we went to our Branch in Mlolongo, and within that day, they released the money to us.

Our main clients are schools, which were closed when cases of Covid-19 heightened. Another big client is Kenya Literature Bureau (KLB) which also closed. We had their stock but could deliver and they also had some of our money which we could

not get, however, the business had to continue. We are proud that UTS, stood firmly with us.

Whereas financial institutions, have so many processes, even for small loans like Ksh 500,000, UTS can process your loan within a very short time.” He added.

“We have taken two loans; development loans worth Kshs. 28 million. Recently, we also took education loans, for our two sons who were going to study in the UK. Currently, we have undertakings with our staff payroll, and all our 15 employees, have joined UTS. Nowadays, my staff even get salaries on 24th or 25th of every month, just like most staff working in the Banking sector; Afritech therefore, has no challenge with salaries. I just give out a pay roll, and they

Michael Ochieng (CEO) and OCTOBER - NOVEMBER 2020 | SACCO TIMES

11

TESTIMONIALS pay and advance salaries to my staff. When other companies were reducing staff during the pandemic, we maintained ours.

UTS is flexible and listens to customers.

Even the newest branch, has good management, that listens and acts promptly on customer’s needs. You don’t need to go to Machakos when Mlolongo is here.

Whatever we need from Machakos, we can get it in Mlolongo. So it for us to make Mlolongo branch, grow and expand. We cannot quit UTS since it has always been there for us in times of laughter and in times of difficulties.” he noted.

In Wote town, Makueni Funeral Home is the first ultra-modern state of the art funeral home, thanks to the input of UTS.

Makueni Funeral Home MD Charles Mutunga and his board Secretary together with Wote UTS Branch Manager Dorcas Keli Kimeu pose for a group photo during the visit by sacco times. introduced to UTS in 2010, by a friend who works at the SACCO. So far, I have successfully serviced two loans from the SACCO, one of Kshs. 100,000 and another Kshs 200, 000.

”My name is Charles Mutunga, the managing director of Makueni Funeral Home, an investment under Makueni Pamoja Association, made up of 90 members, who are both businessmen and professionals.

We were introduced to UTS, by one of our members, who was a member of the SACCO in 2012, when we needed a financier, for our building. UTS gave a loan of Kshs 5 million, to complete the construction and another Kshs. 28 million, to buy fridges, and other equipment, that were required for the business.

We opened the morgue in December 2015 and have been admitting clients to this minute. “ he noted.

UTS not only benefits big businesses, like Space Capital, Afritech, Makueni Funeral Home, but also smaller businesses.

Eunice Muia, sells second hand clothes, in Machakos town.” I was

12

SACCO TIMES | OCTOBER - NOVEMBER 2020

Currently, I am servicing another one, worth Ksh. 100,000. My business has today grown, enabling me to buy a plot and build a house. I have even introduced my two customers, to the SACCO and I pledge lifetime membership.” she noted.

Eunice Muia at her shop.

Martha wa Kimuyu (left) with her Relationship Officer sharing her lifetime journey with UTS.

Martha Nduku Wa Kimuyu, a shop owner at Kaseve shopping centre, in the outskirts of Machakos town, is another small business owner. “I Joined UTS in 1998, after being introduced by a friend. I have taken about 4 to 5 loans, with the first one being Kshs. 50,000, Kshs. 70,000 and Kshs. 50,000 respectively.

Currently I am servicing another one worth Ksh. 50,000. The investments from UTS loans, have enabled me to successfully educate my children, who are today a medical doctor, pharmacist and a teacher, respectively.” she noted.

UNIVERSAL TRADERS SACCO LTD The leading Sacco in Kenya providing quality financial services to all ts members

CORPORATE CURRENT ACCOUNT

SACCO LINK DEBIT CARD

*346#

M-SACCO Dail *346# (Registration is Free) PAYBILL NO:

503500

HEAD OFFICE – MACHAKOS : P.O. BOX 2119 – 90100, TRADERS HOUSE, TEL: 0716 127 102 WOTE BRANCH: P.O. BOX 205 – 90300, WOTE TOWN, TEL: 0717 729 349 - NOVEMBER EMBU BRANCH: P.O. BOX 2681-60100, JASHO BUILDING,OCTOBER TEL: 0721 423 6872020 | SACCO TIMES TALA BRANCH: P.O. BOX 68-90131, HOME LAND PLAZA, TEL: 0716 127 090 KITUI BRANCH: P.O. BOX 2119-90100, JEE PLAZA, Tel: 0716 064 142 KATHIANI BRANCH: P.O. BOX 2119-90100, KATHIANI MARKET, TEL: 0717 687 112 MLOLONGO BRANCH: TEL: 0713 586 331, 0709 721 004

13

CSR

Imarisha Sacco Donates to Kericho and Bomet County Governments, in the Fight Against Covid-19 Pandemic

By June Njoroge

T

he giant Imarisha Sacco Society Ltd, has made a donation of high quality face masks to Kericho and Bomet County Governments, to curb the spread of the coronavirus pandemic.

The masks will go a long way in ensuring the safety of both the vulnerable and needy County residents and health workers, in mitigating effects and flattening the curve.

The donation was presented by the Sacco Chairman, Mr. Mathew Ruto, accompanied by the Chief Executive Officer, Mr. Mathew Rotich, Vice Chairman David Langat, the treasurer Mr. Charles Sigey and the secretary Mr. Kiplangat Koech.

On one hand to receive the donations, was the Deputy Governor Susan Kikwai and health CECM Dr. Shadrack Mutai.

The Deputy Governor lauded Imarisha Sacco for being part of the fight, against the Covid-19 pandemic, by lending a hand to the vulnerable in the society.

“Imarisha Sacco wants to be assured of the safety of all locals,

1

The prestigious Sacco has embraced the era of digital disruption at full tilt, deploying technological solutions in the service delivery to their members since they are either our loyal or potential customers.’’ Mr. Ruto noted. Dr. Mutai urged residents to avoid stigmatization of Covid 19 patients and their relatives, stating that the disease was manageable, just like any other ailment.

He urged members of the community to give moral support to those in isolation facilities by sending encouraging messages and communicating with them positively.

He also commended the County Government of Kericho, led by the Governor Prof. Paul Chepkwony for their efforts in uplifting the health sector which earned them great praise, from the cabinet Secretary for Health Mr. Mutahi Kagwe during his recent tour of health facilities in the county.

The Sacco has also been encouraging members to utilize cashless transactions, by embracing the use of its e channels; that is mobile banking and Xmobi (mobile App) to enhance convenience in accessing and transacting their accounts. To this end, the Sacco has also established a wellequipped Call Center to minimize traffic at the offices, whilst still operating on lean staff due to the surge of the Covid-19 cases.

The Sacco has also been conducting fumigation exercises at their offices to ensure the safety of their staff. Soap dispensers and water are at the entrance of all their branches; and hand sanitizers are strategically placed at their ATMs and banking halls.

Additionally, the Sacco has installed check points at the entrance to all their offices to check customer

2

14

SACCO TIMES | OCTOBER - NOVEMBER 2020

CSR temperature and to ascertain that everyone is observing social distance and is wearing a mask.

Technology and Innovation.

The prestigious Sacco has embraced the era of digital disruption at full tilt, deploying technological solutions in the service delivery to their members, to ensure efficiency and convenience. The Sacco has adopted the latest technology in their operations which comprises of loans processing, biometric systems and digital cyber center.

The Sacco has been leveraging on its online platforms, encouraging members to use cashless transactions, through its E-Channels which are M-Imarisha and Xmobi customer App. Members utilize these platforms to access their accounts at their convenience, applying for digital loans, viewing statements, balance requests, ATM withdrawals, deposits, cash transfers and other online banking services.

Embracing the Big 4 Agenda on the Provision of Affordable Housing Pillar.

In the recently held virtual Annual General Meeting (AGM), by the Kenya Mortgage Refinance Company (KMRC) Imarisha Sacco was recognized as one of the key shareholders, in the implementation of the Presidents’ Big 4 agenda under the Affordable Housing Pillar.

The distinguished Sacco qualified among the top co-operatives, selected by the Kenya Mortgage Refinance Company, in an initiative of the World Bank and the National Treasury 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.

Products.

The acclaimed Sacco boasts of an array of products to cater for its diverse membership comprising of different age and gender demographics. For instance, the FOSA Senior Citizen Account (FSCA) is tailored to benefit members. It is a savings product that assists to cushion members once they exit active service as they await pensions and gratuity.

The Sacco also has Medical Welfare Fund initiative, dubbed as Pongea welfare that is aimed at securing the health of its members. Micro credit loans are also availed to SMEs to boost their businesses and Chama accounts.

With a strong asset base of over 12.9 billion and a membership of over 100,000, Imarisha Sacco is setting pace for other co-operators in the industry.

1) Imarisha Sacco CEO, Mr. Mathew Rotich handing over the face masks donation to County Government of Bomet.

2) Deputy Governor Ms Susan Kikwai receiving donations from Imarisha Sacco Chairman, Mr. Mathew Ruto.

3) Imarisha Sacco Chairman, Mr Mathew Ruto handing over the face masks donations to Bomet County Government.

4) Imarisha Sacco Chairman, Mr. Mathew Ruto addressing the press during the handing over of face masks donations to County Government of Bomet.

5) Imarisha Sacco Officials set to present donations to Kericho County Government.

5

4

3

OCTOBER - NOVEMBER 2020 | SACCO TIMES

15

UNITY IS STRENGTH INTRODUCTION IMARISHA SACCO SOCIETY LIMITED was registered in 1978 and is rated one of the top performing and well managed saccos in the vibrant co-operative movement.

It’s no longer a preserve for teachers only, as it has since opened its doors to the general public, salaried people, business people, farmers, institutions/corporates, chamas/registered groups, Non-Governmental Organizations (NGOs), National Government and County Government employees etc.

BRANCHES The sacco currently has ten FOSA Branches; Kericho (the head office), Bureti (Kericho County) Bomet, Mulot, Ndanai (Bomet County), Keringet (Nakuru County) Awasi (Kisumu County), Nandi Hills (Nandi County), Eldoret (Uasin Gishu County) & Narok Branch (Narok County) OUR VISION A sacco with customer-centric experience OUR MISSION Providing efficient financial services delivery to customers through continuous innovation.

OUR GUIDING CORE VALUES AND PRINCIPLES • • • • • • • • •

God first Team work Effectiveness and efficiency Transparency/accountability Creativity and innovation Equality Equity Integrity Respect

MEMBERSHIP REGISTRATION • Registration fee Ksh. 360 only • Latest payslip & a photocopy of national ID • Minimum monthly share contribution of Ksh. 1,000 FRONT OFFICE SERVICE ACTIVITIES (FOSA PRODUCTS) 1. SAVINGS ACCOUNT Members use this account for; • Savings, where deposits & withdrawals are made at any time. Interest on savings is paid annually at market rates.

• To channel other payments as those from tea, coffee, sugar cane, milk etc. hence qualify to apply for proceeds advance and loans.

• Salaries can be channeled through this account thus one can apply for salary advances, lnua loan and Daraja loan.

• Payment of BOSA & FOSA loans applied by members is done through this account Target Group: Salaried people, Business people, Farmers, institutions/ Corporates, Chamas/ Registered groups, NonGovernmental Organizations (NGO’s) National County and County Government employees.

Requirements: • National Identity Card.

• Passport size photo taken free on opening of the account.

16

2. FIXED DEPOSIT ACCOUNT. This is an account where deposit is made for a fixed period/term to earn an interest. The Minimum balance is. Ksh. 20,000 The Sacco compliments once effort to save by offering: • The interest rate is competitive and negotiable.

3. PARROT ACCOUNT This product allows our members to encourage their children to save.

• Open for children aged between 1-18 years.

• Minimum opening balance is Kshs. 1,000.

• Earns interest with a balance above Kshs. 5,000.

• Withdrawals limited to 3 times annually.

• Accounts operation by parents or guardians.

• No ledger fee ADVANCES AND FOSA LOANS 1) SHORT-TERM ADVANCES This credit facility allows members to solve day to day problems that involve small money such as rent and school fees. It targets individuals whose salaries are channeled through FOSA accounts.

Eligibility: 90% of net salary Repayment: 1 month Interest rate: 10% 2. LONG-TERM ADVANCES This advance runs for 6 months with possibility of extension to one year in future. This credit facility enables our members to meet the financial obligations which require money which is more than one’s salary. It target individuals whose salaries are channeled through FOSA Accounts.

Eligibility: 4 Times one’s net salary.

Repayment: 6 Months.

Interest Rate: 14%.

3. INUA LOAN. This loan product targets individuals whose salaries are channeled through a FOSA Account.

Eligibility: 5 Times FOSA non-withdrawal deposits Repayment Period: 24 Months Interest Rate: 14% per annum.

4. DARAJA LOAN. This loan product targets individuals whose salaries are channeled through a FOSA Account.

Eligibility: 3 Times FOSA non-withdrawal deposits Repayment Period: 36 Months Interest Rate: 14% P.A. OTHER FOSA SERVICES • M-lmarisha {Mobile banking) • Standing order- an internal instruction by members to have repayment of their loans effected through their FOSA accounts • SMS alerts- to notify members whenever any transaction is done • in their accounts • Call center service- 24/7 • Cheque book • Sale of Banker’s Cheques.

• A.T.M banking.

• M-Pesa BACK OFFICE SERVICE ACTIVITIES (BOSA PRODUCTS) 1) DEVELOPMENT/NORMAL LOANS • This product is open to all members • A member can take maximum loan of 3 times deposits held • Repayment period: 60 months • Interest: 1% p.m interest rate on reducing

balance.

2. PREMIUM LOAN • The premium loan is open to all members • A member can take maximum loan of 3 times deposits held • Repayment period: 60 months • Interest: 1% p.m interest rate on reducing balance.

• It also attracts 1.5% premium interest recovered up-front 3. RE-FINANCE LOAN • This loan is open to all members wishing to refinance their existing loans.

• Repayment period is 48 months.

• Interest rate: 1% p.m interest reducing balance 4. EDUCATION LOAN • This loan is meant for secondary, college or university fees.

• A member can take a loan of up to 3 times deposits held.

• Repayment period: 20 months • Interest rate: 1% p.m on reducing balance.

5. EMERGENCY LOAN. • This loan is meant for unforeseen circumstances like burials, natural calamities and court orders.

• A condition is that a member should have served all other loans.

• Repayment period is capped at 12 months.

• Interest Rate: 1% p.m. on reducing balance 6. INTRODUCTORY LOAN. • This loan is available to new salaried members • A new member is eligible to a maximum loan of Kshs 200,000 where a third (1/3) is taken to member’s deposits • Interest rate is 1% p.m on reducing balance.

• Repayment period: 48 months.

7. BOOSTING SHARES. Members have the option to increase their deposits on top of normal check - off system through:• Pay Cash.

• Capitalization of part of the loan applied.

• Standing Order.

8. RECOGNITION OF BEST SAVERS Best savers are recognized annually.

MICRO-CREDIT PRODUCTS 1. PAMOJA LOAN. This Micro-Credit facility is available to groups with membership of 5 -15 members. The group is required to have a mandatory savings of Ksh. 500 weekly per member for a minimum of two months in order to qualify for the loan.

Interest charged is 14% per annum straight-line.

Requirements are as follows:• Registration certificate and By- laws of the group.

• ID photocopies and passport size photos of officials.

• Registration fee of Kshs. 300.

The loan is granted in levels i.e 1st level 20,000/2. INDIVIDUAL LOAN/ BINAFSI This product is available for individual business people with registered premises I Companies.

• Savings for a minimum of six (6) months • Four (4) times deposits which attracts affordable Interest rates • 1st loan Repayment period is 12 - 48 Months.

N/B: Terms and conditions apply

3. CHAP CHAP LOAN Available for Boda boda operators five (5) times the savings.

• 1’’ loan maximum repayment period - 1 Year.

• Affordable low Interest rate.

• Minimum saving period - Six (6) months 4. CHAMA LOAN This product is for self help groups, associations, chamas • Eligible members must have other micro loans • N/B Terms and conditions apply 5. SOKO LOAN. • Available for market vendors • Must have an active FOSA account.

• Affordable low Interest rate • Repayment period 7 days • Based on regular and consistent savings 6. MUWA LOAN. • Available for sugar cane farmers and Intermediaries • Affordable low interest rate • Repayment period 12 months 7. KILIMO ADVANCE Must have an active FOSA account • Affordable low Interest rate • Maximum repayment period 10 months • Farm payout for a minimum of 4 months 8. KILIMO LOAN. • Must have an active FOSA Account • Affordable low Interest rate • Repayment period 12 - 24 Months • 5 % Net loan to FOSA account retained as kilimo deposits • Must have channeled farm payout for at least 4 months 9. KAHAWA LOAN PRODUCTS a. CHERRY PICKING ADVANCE • Available to coffee farmers • 12 months repayment period • One must be a member of FCS • Farmers borrow through FCS b. PARCHMENT ADVANCE • Available to coffee farmers • 12 months repayment period • One must be a member of FCS • Applied when members await payment from marketers. c. FARM INPUT LOAN • Available to coffee farmers • 12 months repayment period • One must be a member of FCS • 4 times micro savings • Farmers borrow through FCS FEEDBACK We appreciate and encourage members and the general public to give feedback; complaints, suggestions and compliments in writing through; Email: customercare@imarishasacco.co.ke. or written comments can also be put in our suggestion boxes at any of our b ranches.

HEAD OFFICE Moi Highway, Kerico – Nakuru Road | P.O. Box 682-20200, Kericho | Cell: 0709 758 000 Email: kerichohq@imarishasacco.co.ke / Info@imarishasacco.co.ke | Website: www.imarishasacco.co.ke SACCO TIMES | OCTOBER - NOVEMBER 2020 Imarisha Sacco Society Limited

@ImarishaSacco

ImarishaSacco

OPINION

Of Untold Sacco Stories: Member Chronicles-

Co-operatives Transforming Lives

By June Njoroge.

Other giant Saccos, chosen for this partnership, will soon be launching theirs; they include: Stima Sacco, Safaricom Sacco, Bingwa Sacco, Imarika Saccco, Mwalimu National Sacco, Tower Sacco and Unaitas Sacco.

S

avings and Credit Cooperative Societies (SACCOS), have been greatly impacting the lives of their members and communities; enormously contributing to the socio-economic growth of the country. Saccos make up about 45% of Kenya’s Gross Domestic Program (GDP).

There are many untold stories by members, who have reaped the fruits of being an integral part of the Sacco model, the only business model, which dictates that they are the owners and customers of the entity.

The myriad benefits earned by members, have led to the rapid proliferation and burgeoning of the Sacco movement, ranking the country as the first in Africa and the 7th, in the world, according to the World Council of Credit Unions(WOCCU).

Sacco Societies Regulatory Authority (SASRA), estimates that there were 13,200 registered Saccos, with 175 of them under its regulation, as of December 2019.

Many members have been the beneficiaries of the array of products, offered by Co-operatives; from savings and loaning products, insurance services, mortgage products, asset financing among many others.

Loaning products especially have aided many members, to start successful business ventures, which consequently has had a ripple effect, whereby, it has created employment opportunities for others, providing a source of livelihood for their families.

The Ministry of Co-operative Development, estimates that, 80% of Kenya’s population, derives

their income either directly or indirectly through Cooperative activities.

Many members have also benefited from education loans, especially to facilitate their children’s higher education in tertiary institutions, across the country.

Several Co-operatives, also have an insurance firm like K-Unity Sacco, partners with Mapa Insurance Agency, to provide maximum insurance protection to all members and the general public, in case of loss of life or property.

This encompasses personal life, Micro Insurance, SME’s and Corporates. Most Saccos have a benevolent fund, that comes in handy in case members are bereaved.

Emergency loans in case members experience such incidences are availed by most Co-operatives.

For many members in different Co-operatives, home ownership, has been made possible, through affordable home loans and mortgage products. Just recently, Harambee Sacco, has become the first Sacco, to roll out the long awaited mortgage product, in partnership with the state backed, Kenya Mortgage Refinance Company (KMRC), at an annual subsidized interest of 7%. KMRC has approved two mortgage products; the Harambee Jenga loan, where borrowers will be facilitated to build houses on their own parcels of land; and the Harambee Home loan, which will enable members to purchase readily built houses.

KMRC will be lending to banks and financial cooperatives at an annual interest rate of 5%, enabling them to write home loans at between 7% to 9%, lower than the average market rate of 11.9%, making it 42% cheaper.

Kenya Police Sacco and Ukulima Sacco, have also rolled out new mortgage products, in partnership with the Kenya Mortgage Refinance Company (KMRC); being among the chosen Co-operative shareholders.

The initiative between the Kenyan Government and the World Bank, to support the affordable housing agenda, by providing secure, longterm funding to the mortgage lenders; consequently, increasing the availability and affordability of mortgage loans to Kenyans, is truly a godsend.

This partnership, led to the establishment of the Kenya Mortgage Refinance Company (KMRC) and the National Housing Development Fund (NHDF); under the National Treasury, which will work with specific Savings and Credit Co-operative Societies (SACCOs) to deliver affordable housing units. Currently 11 Cooperatives have been selected after meticulous evaluation. This is in line with the Big Four Agenda under the affordable housing pillar.

Among the measures taken to accelerate the realization of Vision 2030, H.E. President Uhuru Kenyatta birthed the Big Four Agenda: Food Security, Affordable Housing, Manufacturing and Affordable healthcare for all.

Decent affordable housing has been a quagmire, with a deficit of almost two million houses, countrywide.

The annual production is at only 50,000 units as opposed to the targeted 250,000 units. Under the agenda, Kenya aims to provide 500,000 affordable housing units by 2022.Saccos continue to transform the lives of their members and the sector is bound for exponential growth and expansion.

OCTOBER - NOVEMBER 2020 | SACCO TIMES

17

EXCELLENCE

Kenya Police Sacco Leads in Rewarding Top Savers & Conducting Member Education Drive Across the Country Amid Covid-19 Pandemic

By June Njoroge & Anthony Mwachiro.

former Inspector General Mr. Joseph Boinnet, Board of Director and Management together with the Sacco’s best savers.

T

he giant Kenya Police Sacco, undisputedly remains to be the most viable Sacco to join in 2020.

The acclaimed Sacco has set pace on multiple fronts, by rewarding top savers and leading a countrywide member education drive, amid the Covid-19 Pandemic.

Speaking at the recently concluded Top Savers Seminar at Sarova White sands resort in Mombasa, the national Chairman Mr. David Mategwa, OGW, DNS, ICUDE, said the objective of the seminar was to encourage more saving and boost the saving culture amongst members of the Sacco.

‘We continue to focus on sustainability as a business response to challenges facing business globally. Empowering members for quality lives, whilst encouraging innovation and development using the latest technology,’ Mr. Mategwa stated. He further added that the Sacco has revised its operation mechanism on organizational resilience to offset the effects of the Covid-19 pandemic to members.

In attendance was the Chief guest, State Department of Cooperatives PS, Ali Noor Ismail, Inspector General of the National Police Service, Mr. Hilary Nzioki Mutyambai, National Service Police Commission, Mr. Eliud Kinuthia, Deputy Inspector General Mr. Edward Mbugua,

18

SACCO TIMES | OCTOBER - NOVEMBER 2020

Kenya Police Sacco National Chairman, OGW, DNS, ICUDE Mr. David Mategwa, giving his address at the Top Savers Seminar in Mombasa.

State Department of Cooperatives PS, Mr. Ali Noor Ismail adressing members at the Kenya Police Sacco Top Savers Seminar in Mombasa.

The PS noted that the government was key in giving maximum confidence to Saccos, as the security of members’ savings remains to be a paramount concern to the government, with regulations already put in place, calling for members to save more.

He further noted that the Kenya Police Sacco has instilled confidence in members, having been awarded as the best in credit service management during the 2019 Ushirika day. Mr. Eliud Kinuthia, NPSC Chairperson, called on civilians working in the police department to join the Sacco.

Similar sentiments were shared by the former Inspector General, Mr. Joseph Boinnet, who noted that the Kenya Police Sacco has invested heavily thanks to the commendable saving culture inculcated by the Sacco.

The various guest speakers, lauded the Sacco management for implementing effective measures meant to increase more savings from members; which has boosted the asset base to the current Kshs 35billion.

The Inspector General of the National Police Service, Mr. Hilary Nzioki Mutyambai, giving his address at the Kenya Police Sacco Top Savers Seminar in Mombasa.

The distinguished Sacco has been embracing in full throttle the significance of 5th Co-operatives Principle on Education, Training and Information; which emphasizes on the importance of member education, in acknowledgement that an enlightened member is

EXCELLENCE a better investor. In full cognizance of this the Sacco also recently conducted a countrywide member education drive.

Former Inspector General of Police, Mr. Joseph Boinnet during his key address at the Kenya Police Sacco Top Savers Seminar.

The initiative, which is well aligned to the Sacco’s 2020-2024 strategic plan, that highlighted membership as a key thematic area, was carried out strictly adhering to the safety precautions, stipulated by the Ministry of Health, to curb the spread of the coronavirus disease.

Spearheading this initiative, was the National Chairman Mr. David Mategwa, OGW, DNS, ICUDE, the Board of Directors and regional officials.

Director Eric Tumwet conducting member education in Kainuk,Astu camp.

The exercise was a vital move to inform and empower members and non-members, to aid them in making informed choices in regards to saving and investing with the Sacco; whilst also enlightening them about the vast array of products and services offered.

The Kenya Police Sacco National Chairman, Mr. David Mategwa and Chief invited guests share a chat at the Top Savers Seminar in Mombasa.

Kenya Police Sacco remains to be the most credible Sacco to join, with a track record that speaks for itself and utilizes

Director Jamleck Gichobi during the member education drive at Mt Kulal police station. state of the art modern technology in service delivery through its online platform.

The Kenya Police Sacco Top Savers and invited guests pose for a group photo at the Top Savers Seminar in Mombasa.

National Treasurer Amos Tingos, conducting a members education session at Chuka Police Station.

There are a myriad reasons to join the distinguished Sacco such as the payment of high annual dividends and interest on deposits, low interest rate on loans, instant mobile loans through the M-Tawi platform, loan clearance on behalf of members and affordable property with investment co-operative.

In addition, Kenya Police Sacco, was recognized as one of the key cooperative shareholders, in the Kenya Mortgage Refinance Company (KMRC), during their recently held first virtual AGM, having already launched and commenced rolling out the mortgage product. Consequently, acquiring property through the Sacco will be more affordable for members.

The acclaimed Sacco has been fully embracing and practicing the seven CoOCTOBER - NOVEMBER 2020 | SACCO TIMES

19

EXCELLENCE operatives Principles in all its operations, which are based on the Co-operatives identity and values of self-help, selfresponsibility, equality, equity and solidarity.

Sacco Times Magazine carried out an evaluation of the prestigious Sacco, through the lens of the seven founding principles of the Co-operative movement: • Voluntary and Open Membership In terms of this 1st Co-operative principle, Kenya Police Sacco is open to all persons, provided they abide by the Sacco’s by laws and accept responsibilities of membership; devoid of any bias and irrespective of gender, tribe, religion or political affiliation. Currently membership stands at 61,755 and is bound to increase owing to the recently conducted countrywide member education exercise, coupled with the benefits to be reaped from being a member as aforementioned.

The Sacco attributes its stellar performance to the loyalty of its members, as the national Chairman Mr David Mategwa acknowledged during the Sacco’s ADM on March 4th 2020.

• Democratic Member Control Co-operatives are democratic organisations controlled by their members. Management of a Co-operative Society is always on democratic lines with members having equal voting rights. Kenya Police Sacco abides by this law, having conducted their Annual Delegates Meeting (ADM) in the first quarter of the year, before the ban on public gatherings due to the Covid-19 pandemic. This saw the re-election

20

SACCO TIMES | OCTOBER - NOVEMBER 2020

of Mr. David Mategwa, OGW, DNS, ICUDE, as the Chairman of the Sacco, three members of the board and one from the supervisory committee were retiring and the election helped fill the vacancies.

• Member Economic Participation.

Members contribute equitably to and democratically control the capital of their Co-operative. It is through the diligent member economic participation that the Kenya Police Sacco has been exponentially registering stellar financial performance year after year. Currently the Sacco’s asset base stands at Kshs 35 billion; a 20.4% increase from Kshs 29 billion of 2018, with a turnover of Kshs 5.8 billion. The society paid out dividends on members share capital at a rate of 17% and interest on deposits at a rate of 10.5% in the year under review.

• Autonomy and Independence.

Co-operatives are autonomous selfhelp organisations controlled by their members. Kenya Police Sacco is an independent Co-operative in the tier –one league and regulated by the Sacco Societies Regulatory Authority (SASRA).

The renowned Sacco is ISO 9001:2015 certified with a stable rating from the Global Credit Rating (GCR) due to its strong capital and solid risk management position. The Sacco was feted as the best managed and the best in credit management, countrywide at the 97th Ushirika Day Celebrations in 2019.

• Education, Training and Information.

Co-operatives provide education and training for their members, elected representatives, managers and employees so they can contribute effectively to the development of their co-operatives. As aforementioned, the Sacco recently conducted a countrywide member education drive.

• Co-operation among Co-operatives Co-operatives serve their members most effectively and strengthen the

EXCELLENCE co-operative movement by working together through local, national, regional and international structures. Kenya Police Sacco has co-operated with other Saccos and affiliated bodies, as a primary shareholder, in the creation of the Co-operative Coronavirus Response Committee (CCRC) to give towards the Co-operative Covid-19 Fund, to support 500,000 vulnerable households adversely affected by the Covid-19 Pandemic.

• Concern for the Community Co-operatives work for the sustainable development of their communities through policies approved by their members. The Kenya Police Sacco has been at the forefront of giving back to the community and especially during these turbulent times of the Covid-19 Pandemic. The Sacco is one of the key shareholders of the Co-operatives Coronavirus Response Committee (CCRC), created with the chief objective of cushioning fellow vulnerable and needy Kenyans, who have been adversely affected by the Covid-19 pandemic.

The initiative is aimed at supporting 500,000 vulnerable households, by equipping them with the survival ‘Co-op kit’ through the Co-operatives Covid-19 Fund.

The kit consists of food stuffs, gloves, masks and hand sanitizers. The Sacco recently also made a massive donation of face masks, gloves and hand sanitizers to police officers in all the forty-seven counties, who were acting as the frontline combatants in the fight against Covid 19.

As part of its Corporate Social Investment, the Sacco frequently visits children homes to make food and clothing donations.

The Society is also supporting the construction of nine

classrooms at Utumishi Girls and sponsoring seventy students at various levels of high school. All these initiatives have positively impacted the society.

KEY TESTIMONIALS “There are almost 1,000 millionaire police officers, at the Kenya Police Sacco, as attested by the statistics from the 2019 financial report. We are legitimate savers and investors, with money earned from our hard work, saving every penny into the Sacco. I want to dispel the notion that when a police officer is successful, he or she must have engaged in corruption. We make our money legitimately through service to Kenyans and the country as a whole.” Former Inspector General, of the National Police Service, Mr Joseph Boinnet. ”The National Police Service is now a major investor in the economy of Kenya. We have a good number of millionaires, who have saved in the Sacco. The essence of every business venture, is to get good returns, in this regard I wish to laud the Sacco, for the good performance over the years, but more significantly, the impressive results posted in the 2019 financial year.

This saw the members and our officers in particular, benefit from one of the most competitive dividends and interest rates in the market.

This is definitely a reflection of prudent management of resources, that creates value for the members, affording our officers peace of mind, enabling them to concentrate on their core mandate.”

The current Inspector General of the National Police Service, Mr. Hilary Nzioki Mutyambai.

“As the Chairperson of the National Police Service Commission, am ready to debate this on any platform, that our employees work hard for every coin they have and they are great savers” Mr. Eliud N. Kinuthia.

OCTOBER - NOVEMBER 2020 | SACCO TIMES

21

UPDATE

Excellence Happens Here

2020 Customer Service Week

Sacco Times Magazine wishes our highly esteemed clients, a happy customer service week. Our sincere gratitude goes to all of you, for the unwavering business support demonstrated in our many editions. The theme for this year is ‘Dream Team’ to reflect on the importance of teamwork, in providing outstanding service to all customers. At Sacco Times Magazine, we value teamwork and as a dream team, we are:

Strategic Ambitious Creative Committed Optimistic

Talented Innovative Meticulous Enthusiastic Savvy

We applause and thank our loyal clients: Kenya Police Sacco, Imarika Sacco, Safaricom Sacco, Stima Sacco, Kimisitu Sacco, Harambee Sacco, Cosmopolitan Saccco, Imarisha Sacco, Boresha Sacco,Wakenya Pamoja Sacco, Ollin National Sacco, Finnlemm Sacco, Universal Traders Sacco (UTS), Tower Sacco, Mentor Sacco, Mombasa Port, NewFortis Sacco, Capital Sacco, Unaitas Sacco, Lengo Sacco, Dimkes Sacco, Tabasamu Sacco, Mwito Sacco, Stegro Sacco, Magereza Sacco, Transnational Times, Kisumu Teachers Sacco, Bingwa Sacco, Metropolitan Sacco Biashara Sacco, Skyline Sacco, Orient Sacco, Solution Sacco, Tai Sacco, Winas Sacco, Patnas Sacco, IG Sacco, Wevarsity Sacco, GDC Sacco, Kimbilio Daima Sacco, Ndege Chai Sacco, Ukristo na Ufanisi, Kwetu Sacco, Yetu Sacco, Shirika Sacco, Qwetu Sacco, Ukulima Sacco, Daima Sacco, Mafanikio Sacco, Shoppers Sacco, Jitegemee Sacco, Tabasuri Sacco, Kitui Teachers Sacco, Gusii Mwalimu Sacco, Southern Star Sacco, Elimu Sacco, Vitikas Sacco, Kenya Achievas Sacco, Kenya Bankers Sacco, Siraji Sacco, Umoja Wendani Sacco, Maisha Bora Sacco, Mudete Sacco, Hazina Sacco, Unison Sacco, Afya Sacco, Fortune Sacco, Teleposta Sacco, Waumini Sacco, Kenpipe Sacco, Mhasibu Sacco, Chai Sacco,Enea Sacco, Eco Pillar Sacco, Balozi Sacco, Taqwa Sacco, Lainisha Sacco and Taifa Sacco.

22

SACCO TIMES | OCTOBER - NOVEMBER 2020

UPDATE

2020 ICU Day: Celebrating the Global Spirit of Co-operation

By June Njoroge

T

he 2020 International Credit Union day, is coming up on the 15th of October and this year’s theme is ‘inspiring hope for a global community;’ to celebrate the spirit of the global credit union movement..’ Its a day to reflect upon the credit union movement’s history, promote its achievements, recognize the hard work and share member experiences.

The ultimate goal is to raise awareness about the great work, that credit unions are doing around the world and give members an opportunity to get more engaged.

The focus reflects how all cooperatives can contribute to a brighter future, by providing financial empowerment to people all over the world through financial services, education and support.

ICU Day has been celebrated on the third Thursday of October since 1948.Despite of the pandemic, credit unions have been staying true to their co-operative principles and stepped up during this time of economic uncertainty, offering hope to members.

This year’s ICU Day theme, helps to promote the power of credit unions and highlight the incredible impact they make in their communities every day. Credit unions worldwide have been a source of hope for their members and community throughout the pandemic. The uplifting stories deserve to be

shared, to remind people that credit unions are there for them during and after the pandemic, thereby inspiring hope.

Chosen by the World Council of Credit Unions (WOCCU) and the US Sector body, Credit Union National Association (CUNA), the theme is meant to encourage credit unions across the world, to share stories about how they are providing financial services, guidance and relief to help members and communities overcome everyday hurdles, unexpected loss or disaster. ”This year’s theme for ICU Day is Inspiring hope for a global community. What better way to show how credit unions from across the world provide hope through financial services, education and support than to highlight how credit unions have advanced the lives of members during the economic uncertainty wrought by Covid-19” said Michelle Kamke, marketing projects manager at CUNA. Brian Branch, President and CEO of WOCCU, added: “Throughout the COVID-19 crisis, credit unions around the globe have continued to provide a high level of service to their members and demonstrated a generosity to their local communities that has set them apart from other financial institutions. We are truly inspiring hope for a global community. I can’t think of a better theme around which to celebrate International Credit Union Day 2020.”

In Kenya, Saccos have transformed the lives of

many people, in a myriad ways from starting business ventures, educating children, providing insurance services, emergency loans among many other ways.

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 the long term pursuit of Vision 2030, Co-operatives were identified 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, 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. Saccos should be greatly feted for their remarkable impact, in the lives of many in Kenya and across the world. Happy Credit Union Day!

OCTOBER - NOVEMBER 2020 | SACCO TIMES

23

GROWTH

Boresha Sacco opens branch in Iten, Elgeyo-Marakwet County

By Kipturgut Enock

T

he renowned Boresha Savings and Credit Cooperative Society is set to scale the heights of success with new growth and expansion strategies, that were resolved at the 29th Annual Delegates Meeting (ADM), held at Teachers Plaza in Eldama Ravine, Baringo County, under strict guidelines, as set by the Ministry of Health to curb the spread of the Covid-19 pandemic.

The Delegates unanimously endorsed a plan to upgrade the Iten marketing desk to a fullyfledged branch and commence construction of the Multimillion Marigat plaza upon approval by the Regulator. This will be the third office building of the Sacco.

The Sacco Chairman Mr. Albert Chebiegon, urged members who are yet to embrace the digital shift in technology, to register at the branches, to get prompt and more convenient and efficient services through mobile phones.

Dr. Moses Chebor, SACCO CEO Addressing the Delegates.

This move is vital especially in the wake of the Covid-19 pandemic, where everyone is advised to avoid crowded areas, to mitigate the spread of the deadly coronavirus disease.

“We continue to upgrade our mobile lending channels and technology to keep up with our competitors in the sector,” he noted. The Chairman added that Boresha Sacco society’s main objective, is to provide savings and affordable credit facilities to the members, in a bid to empower them economically.

The Sacco loan book stand at Kshs 5.7 Billion. This has largely contributed to the micro economic growth in the government’s Big Four agenda in Manufacturing, Housing, Food Security and Universal Health Coverage. “The society lends its members development loans, school fees and agri -based loans, enhancing the economic growth through transformation of members’ livelihoods,” he added.

KUPPET Chairman Baringo Branch Mr. David Toroitich adressing delegates.

24

SACCO TIMES | OCTOBER - NOVEMBER 2020

GROWTH The Chairman lauded the Delegates, Management, Board of Directors, Managers and staff for their excellence in member recruitment in the year under review. Sacco members increased to 108,196 from 95,382 in the previous year, recording an increase of 13%.

The Chairman further called upon delegates to continue Sacco patronage through recruitment of new members. He thanked all members who attended their annual educational meetings that were held in February and March, in all Sacco electoral areas, where members were trained by selected facilitators.

Sacho, Kabarnet, Salawa and Nakuru clusters, will hold their elections in 2021,” he noted.

of dividends on share capital at 12.2%, interest on members’ deposits at 9.1% and Bonus on Equity shares at 8.5%, a total of Ksh 312,244,208.

During the ADM, the Chairman reported that Board of Directors and Committee members, who were due to retire both as delegates and directors, as per the one third rotational policy applicable annually, were reelected by delegates in their respective areas to serve a threeyear term.

The Chairman congratulated the outgoing CEO, Dr. Moses Chebor who has been on the helm and diligently served the Sacco for over thirty-five years.

Dr. Moses Chebor observed that the Society, has been growing gradually, in all its areas of operations, due to a good governance structure; which include membership, revenues, asset base, empowerment of

e.g Albert Chebiegon (Board Member-Barwesa), Moses Cheplallam (Board Meber-Lembus/Torongo), John Lessonet

“We assure our members that all the concerns raised in the educational meetings will be addressed by the board,” Mr. Chebiegon noted. On governance, the Sacco’s electoral policy serves as the guideline, towards member representation procedures and elections, which spells out the minimum qualifications, for both delegates and board of directors, to be nominated for elections.

The rotational retirement and elections of delegates, implementation was done this year, with delegates from Barwesa, Lembus, Torongo, Kipng’orom, Sirwa, Esageri, Kabartonjo, Kipsaraman, Bartabwa, Mogotio, Tiaty, Marigat/Mukutani, Eldoret and Kapsabet held their elections. 74 delegates were retained, while 34 new delegates were elected, in these areas and three are still vacant, making a total of 111 seats.

Mr. Chebiegon congratulated all the delegates and urged them to represent members well in their respective clusters, for a term of three years. “Delegates from Mochongoi, Kisanana, Eldama Ravine, Mumberes, Tenges,

(Board Member- Kipng’orom, Sirwa & Esangeri), James Chepchieng (Board Memeber-Kabartonjo) and Evans Mengich(Supervisory-North Region) Ronalds LLP East Africa was appointed as the new external auditor after the exit of Kibiego and Kiptum auditors, who has been auditing accounts for the past three years. The chairman lauded them for doing their work with dedication and their timeliness.

Ms. Pamela Wanyancha, Koibatek/ Mogotio Sub County Co-operative Officer addressing Delegates.

members and the community at large, since its inception forty four years ago. He added that the review of the Society’s strategic plan in the year under review, has guided the society’s performance on targets and key activities.

The Sacco registered sterling performance, with the asset base growing by 8% from Kshs 6.7 billion to 7.3 billion in the year under review. This has necessitated the regulator, to rank the Sacco under the tier one category and position 19

The ADM ratified the payment OCTOBER - NOVEMBER 2020 | SACCO TIMES

25

GROWTH in asset base out of the 175 Saccos licensed by SASRA to operate FOSA as a Deposit Taking Sacco in the country.

Share capital increased from Kshs 373.4million in 2018 to Kshs 425.1 million in 2019, an increase of 14%.

Equity shares increased from Kshs 237.5 million in 2018 to Kshs 249.7 million an increase of 5%. The total Sacco revenue grew by 20%, to Kshs 1.2 billion from Kshs 1.06 billion in 2018, which ranked the Sacco at position 15 in total revenue.

Member deposits increased to Kshs 4.7 billion in 2019, compared to 4 billion in 2018, an increase of 17%, with 80 members having over one million savings/deposits.

The highest saver with Kshs 18 million with a cumulative deposit of Kshs 130Million.

Dr. Chebor urged members to voluntarily contribute equity shares, for the construction of the Sacco’s own office, (Boresha Plaza), at Marigat highlighting that members have so far contributed Kshs 5.0.

He added that the management, has set a side Kshs 30 million, from the Sacco reserves, for the commencement of the construction works upon grant of the approval from the regulator.”

The vibrant Sacco held a luncheon for the top savers at Lake Bogoria early this year to appreciate them for their commitment ,royalty and trust in the society.

“Delegates were challenged to continue saving more reward on their savings/deposits”. said Chebor. He assured members that the Sacco management, continues to improve on quality of services, by reaching out

26

SACCO TIMES | OCTOBER - NOVEMBER 2020

Delegates at the ADM

to other key partners in the industry, through networking, benchmarking and training programmes, to ensure that members demands and needs, remain competitive in the market, as the financial provider of choice in its areas of operation.

The management acknowledged members who have embraced M-Boresha platform, in accessing financial services, through mobile devices. “We encourage our members who are yet to register, to do so in branches close to them, so that they can be able to access the financial services at the comfort of their home,” he added.

The delegates approved and appointed Ronald Bowsy and Associates, as the Society external auditors, to audit the Sacco accounts for the next three years.

Dr Chebor assured delegates and members that the management and Board of Directors have employed skilled personnel to serve members in in branches.

He thanked members for their loyalty to the society, Board of Directors, Management,

Supervisory committee and staff for their commitment and hence the realization of good performance in all areas of operations.

He further lauded the partners and stakeholders, Co-operatives, CIC, KUSCCO, national and County Governments for their support to the Sacco. The supervisory committee led by the chairman Wilbert Mammet in their findings, said that the Sacco is on the right path of development, after realization of the Sacco’s ratios.

The Sacco treasurer Mr. Henry Limo read the budgets for the previous financial year and the anticipated budget 2020/2021, that was approved by the delegate system.

The finance Manager CPA Prisca Lagat trained the delegate system on the Sacco’s financial ratios and presentation of the Sacco financial statements.

The acclaimed Boresha Sacco is set soar higher with the implementation of these new strategies.

OPINION Winning and retaining members now needs such programs, because of increased competition for deposits in the Sacco sector gaining momentum. Due to the slowed deposit mobilization in the Sacco movement, the gap between gross loans and deposits, is currently hitting the highs of Kshs 39.11 billion, when compared to the previous Kshs 32.37 billion.

Kenya’s Saccos match during Ushirika day celebrations.

Saccos Must Adopt Initiatives to Attract and Retain High End Savers

By Malachi Motano.

S

avings and Credit Cooperative Societies (SACCOS) and other financial institutions, should adopt measures, to counter the increasing competition, which presents flamboyant options, ultimately risking losing big savers.

The Saccos, whether small, medium or large must now consider using different ways of motivation, to retain their current members, as well as improve their existing products and services, to generate more revenue.

Some of the programmes Saccos have been embracing include, awarding the highest savers, utilizing reward schemes. Sacco leaders should look at the big savers in terms of shares and deposits, as well as those who take loans and pay back in time, as the people who patronize their Sacco products, hence deserving recognition.

The recognition doesn’t have to be cash, but can also be in form of certificates and trophies or a retreat, like the one done recently by the Kenya Police Sacco.

Appreciating member’s efforts, might hold them longer at the Sacco and also motivate others to

join. Saccos can also come up with programmes, like loyalty dividends, with members who have saved in the Sacco for long, as well as those who regularly make use of the Sacco’s services as the beneficiaries.

There are Saccos, that have been paying dividends, that range from seven to ten per cent over the years, but have currently developed special payout, known as loyalty dividends, that enables members who qualify, to earn an additional three per cent.

The programme will reward those who save, take and service more loans as they qualify for the dividend, since Saccos rely mostly on deposits. The loyalty dividend is crucial, since it assists in making more members remain hooked to the Sacco’s products, instead of just saving, while waiting for the normal dividend, at the end of the year. Members’ uptake of products and services, is the main source of money for the Sacco, hence members should be encouraged to patronize them, therefore deserving rewards.

The concern to introduce recognition schemes, comes at a time when Saccos are recording low growth in deposits, the slowest in seven years, with an increasing appetite for loans due to the economic hardships that members have been facing, amid the Covid-19 pandemic.

According to current statistics by the Sacco Society Regulatory Authority (SASRA), last year deposits grew by 11.27% to Kshs 380.44 billion, from Kshs 341.91 billion, while the growth rate in 2018, was at 11.99%, which marked the fifth straight year, of slowing pace in mobilization of deposits which is a key resource for lending.

Still on recognition, all Saccos should encourage a saving culture and utilize it as a promotional tool.

The regulator is now warning that unless Saccos mobilize enough deposits, they risk external borrowing. The situation is undesirable, since Saccos have to fund the deficit from external sources, which in most cases turns out to be expensive.

Although Saccos have not been so competitive in the past, the emergence of many microcredit organisations, exposes them to new competitors. Previously, Saccos paid little attention to membership drive.

Appreciation of good savers might improve membership. Other measures to help Saccos attract and retain membership, is by having their members sharing their success stories so that others can emulate, like the way Safaricom Sacco in 2019 revealed that their highest saver, had hit Kshs 20 million and encouraged others to take the cue.

Incorporating loyalty schemes, discourages members from taking loans with other financial institutions. If a society has high liquidity, and members are not borrowing, the excess funds can only yield meagre returns, therefore Saccos must reverse the trend, because as members increase their deposits, without a commensurate increase in loans, they dilute rebates in equal measure.

Its encouraging that few Saccos like Qwetu, Boresha, Imarika, Unaitas and Kenya Highlands among others are developing such programmes.

OCTOBER - NOVEMBER 2020 | SACCO TIMES

27

EXCELLENCE

The Rise from Humble Beginnings to Formidable Business

Ventures, Courtesy of Cosmopolitan DT Sacco

By Eric Bosire

F

or two decades Mr. Shem Kebira Mogaka and Mr. Danson Kamande, who hail from Nakuru Town and Naivasha Sub County respectively, have been able to establish vibrant businesses, courtesy of the renowned Cosmopolitan DT Sacco, formerly Cosmopolitan Sacco.

Both Mr. Shem Kebira and Mr. Danson Kamande, coincidentally joined Cosmopolitan Sacco in 2001.

Since then, they have enjoyed every step of their development journey, in their business growth. This has been their greatest motivation, to remain as active and loyal members to the Sacco.

Mr. Shem Kebira has grown his business from a small hardware store, to selling building and construction materials in a larger capacity, thanks to Cosmopolitan Sacco. Semo Hardware, currently supplies construction materials to the entire Nakuru County and its neighbouring environs, of Kisii and Baringo counties.

He lauds the Sacco’s affordable loaning products, pertinently the Jijenge loan, that helped him lay the foundation for his business and has sustained it to date. The hardware has grown to provide employment to ten staff members, from an initial two. He says the Sacco has helped transform the lives many residents, by offering loans and other financial services at affordable rates and on timely basis.

“I joined the Sacco in 2001 and since then I cannot regret. I have been

28

SACCO TIMES | OCTOBER - NOVEMBER 2020

able to transform my business from a mere simple hardware, to a formidable and reputable venture, courtesy of Cosmopolitan Sacco asset financing products”, Mr. Kebira disclosed. The Sacco has been in every step of his development track record, both personally and in his career as a teacher. Currently, he is the head teacher at St Marys’ Girls Primary School, in Nakuru County. Mr. Kebira is just one of the many members, whom the Sacco has been able to finance and promote thrift, amongst its members,

through accumulation of savings, thereby creating a source of funds from which members can borrow, at affordable and reasonable costs.

“I had few business problems back then. But when I talked to Cosmopolitan Sacco through their asset finance manager, I was able to get a loan of Kshs 400,000, through my savings and dividends, which enabled me to set up Semo Hardware, then at KU plaza, before moving it near Egerton University.

Due to expansion and good returns in the business, I had to move to Nehemiah House in Nakuru town,

EXCELLENCE where am currently based.”, he adds.

Mr. Kebira further emphasizes that the only way to benefit, is through growing savings and deposits in order to guarantee Sacco loans, which has consequently helped him make wise investments, thereby promoting his economic and social welfare.

He advises that the secret to growing ones’ loan portfolio is just to generate savings through the Sacco, to qualify getting loans, which will help facilitate making investments, just like he did.

Investment and returns Mr. Kebira adds that as an investor, he grew his deposits gradually and got the capability to acquire vehicles for transportation. With time he acquired another loan of Kshs

Mr. Shem Kebira Mogaka, CEO, Semo Hardware Business Enterprise, shows part of his warehouse in Nakuru County.

320,000 and made deposits worth Kshs 1.5 million, before qualifying for another Kshs 5 million loan, that enabled him to acquire 3 Pickups, add more stock, an affordable office space for storage and a lorry, for easier transportation of materials to his clients.

“Since I deal with supply of building and construction materials, through the help Cosmopolitan DT Sacco I have been able to purchase 3 pickups and a lorry that are helpful, in supplying materials to my clientele, within our regions coverage”. Mr. Kebira noted. He further adds that the flexibility of the Sacco’s products, has enabled him to make tremendous strides economically, owing to the flexible loans granted to him since he joined.

“My counterparts are yearning to join Cosmopolitan DT Sacco, as I have informed them about the Sacco’s products; since they have seen me grow Semo Hardware, from a just a small joint, to a formidable hardware, with ten staff members just from two, my wife and I”, he says jovially.

Out of Bond Many people have notions that it is difficult for new members to get loans without formal employment.

However, Cosmopolitan DT Sacco has stood the test of turbulent financial times, that has seen a number of societies collapse; growing to become one of the biggest indigenous financial institutions in the County and its environs.

The Sacco continues to provide opportunities for business people, to grow their savings, and acquire loans to advance their businesses.

It’s this background, that Mr. Danson Kamande, with the help of Cosmopolitan Sacco, has relied on to fulfil his business desires, which has enabled him to advance from a shopkeeper, to owning one of the biggest Fashion establishments, ‘Jaynees Boutique,’ that specializes in ladies, men and children fashion clothes, together with other accessories. Mr. Kamande says that its only financial discipline and proper management, that has helped him establish the business.

OCTOBER - NOVEMBER 2020 | SACCO TIMES

29

EXCELLENCE “I have always been disciplined in saving, borrowing and investing wisely, in an idea which I intend to pursue’. I first got a loan of Kshs 0.6 million, then advanced, now I am currently servicing a Kshs 1.5 million loan,” notes Kamande jovially, while serving one of his clients at the boutique. At the start, Kamande says, when he approached Cosmopolitan Sacco, he already had an idea of what he needed to invest in; shifting from a retail shop, to venture into a boutique, which entailed fetching clothes from Eastleigh, Nairobi in bulk.

“I saw the need, and hence invested in it. Though it’s challenging, I have managed through avoiding unnecessary expenditure and paying promptly, to increase my loan limits.

I am also optimistic that by the end of this Covid 19 pandemic, I will be able to further expand my business through direct importations from outside Kenya”, says Kamande. He adds that h e

Mr.Danson Kamande at his Boutique in Naivasha Sub County, Courtesy of Cosmopolitan Sacco loan products.

also targets at the end of this year, to bring at least 100 new members on-board, so as to benefit, like he did. Since Sacco’s’ work on guarantorship model, Mr. Kamande says through joining the Sacco, members can be able to guarantee each other and even borrow through self guarantorship.

Both Mr. Kamande and Mr. Kebira,

share the same sentiments, that time management and selfdetermination, has helped them establish their businesses through borrowing and paying promptly from Cosmopolitan Sacco. Similarly, Mr. Kebira and Mr. Kamande are examples of the transformation power of Cosmopolitan DT Sacco, that has played an integral role in improving and providing opportunities to save, borrow and invest in business.

Cosmopolitan Sacco’s headquarters is at the multi-million Cosmopolitan plaza in Nakuru County. The plaza, which is part of the society’s asset base, stands at Kshs7.4 billion, serving as a testimony to the Sacco’s rock solid foundation and determination, to scale to greater heights of success.

Mr.Danson Kamande busy at work in his Boutique in Naivasha Sub County, after he changed his retail business to the current business courtesy of Cosmopolitan Sacco loan products .

30 30

SACCOTIMES TIMES||OCTOBER OCTOBER--NOVEMBER NOVEMBER2020 2020 SACCO

The Sacco also has an office in Naivasha, with several satellite offices across the county to serve its members.

UPDATE

Slum-based Sacco, SHOFCO, Adopts Technology & Diversifies Membership

By Malachi Motano hining Hope for Communities (SHOFCO), a Savings and Credit Cooperative Organization (SACCO) in Nairobi city’s informal settlements of Kibera and Mathare; has adopted technology to attract more clientele and revenue. Since its establishment five years ago, in August 2015, the Sacco has built its membership base, from only 10 members to over 4, 000, out of which over 3, 000 members live in Kibera and 1, 000 live in Mathare.

S

Committed to recruit more members, the Sacco based in Nairobi, is now eyeing more members from other cities, with a main focus in the informal settlements of Muoroto slum in Tudor, in Mombasa and the giant Nyalenda slum, at the lakeside city, Kisumu. According to the Sacco manager, Collins Odongo, Shofco is keen to uplift lives of slum dwellers, who have largely

Shofco manager Manager Collins Odingo speaking to the press in Kibera.

been ignored by players in the industry.

“Our mission is to empower members economically, through mobilization of savings and provision of affordable credit services. We will consider opening our doors to other residents apart from slum dwellers, but for now we are still looking at how best we can roll it out, even though our immediate goal, is to reach slum dwellers in other parts of the country,” Odongo said. He was speaking to journalists in Nairobi, when celebrating Shofco’s fifth anniversary, where he indicated that the Sacco, intends to have its presence, in all major slums in the country, by the end of next year (2021).

“It is a movement for slum dwellers and targets to grow its assets by three-fold, in the next five years. Those who wish to join the Sacco, should visit our offices in Kibera and Mathare, for

registration and submission of membership application forms and can begin to save from as low as Kshs 300 a month,” Odongo said. Currently, about 90 per cent of the Sacco’s members, are women in small businesses, such as vegetable vendors, and ‘Mitumba’ sellers, among others.

The Sacco has created a mobile platform, that allows members to apply for loans and make payments.

“We now plan to fully go digital, embracing ICT, to conveniently make available all services on our mobile platform. Every cloud has a silver lining, Covid-19 pandemic has taught us to adopt technology advancements, in the delivery of services,” he said. Just like other financial institutions, the Sacco, has also been hit hard by the pandemic and as a result, has restructured loans worth more than Kshs 10 million, since April when the pandemic had soared.

“This is in line with the Central Bank of Kenya’s call, on financial institutions to provide relief to borrowers of personal loans, based on individual circumstances, caused by the pandemic,” he said. One of the beneficiaries of the Sacco is Sheripher Mutua, who runs an egg business and daycare facility for children in Lindi area, Kibera.

“I have just applied for my third loan. The egg business is doing really well, but the daycare has been hit hard by the Covid-19 pandemic,” she pointed out.

Another beneficiary is Tabitha Oria, who leads a group of 35 young women, who have benefited from the Sacco said.

“We first borrowed Kshs 25, 000 and we now intend to apply for Kshs 100, 000, to expand our business,” she says. Her group runs a water vending kiosk in Laini Saba area in Kibera.Shofco Sacco is truly transforming lives.

OCTOBER - NOVEMBER 2020 | SACCO TIMES

31

EXCELLENCE “Since I joined the Sacco, I have received many benefits, the loans acquired helped me to pay school fees, I started business and even farming,” she said “Am glad to inform you that, if it was not for the loans I received from Wakenya Pamoja Sacco, I would not have been able to send my children to school; my son is pursuing Civil Engineering at Kisii University, I have also bought land, which I intend to construct rental houses, after acquiring another loan of Kshs 500,000” she added.

Joyce Mogeni a member of Nyambunwa Self help group in Magena at her house which she built through the loan she acquired from Wakenya Pamoja Sacco (Photo Brighton Makori)

Wakenya Pamoja Sacco Greatly Impacts the Lives of Members

By Our Correspondent

T

he renowned Wakenya Pamoja Savings and Credit Co-operative Society, has remained steadfast in promoting the social economic welfare, of its members and transforming their lives, through the provision of affordable financial services, as stipulated in its mission and vision.

have helped her venture into farming and other businesses.

She is a happy member and a beneficiary of the Sacco’s loan products.

Caren Elizabeth Obara, is yet another beneficiary of Wakenya Pamoja Sacco. She hails from Bokimonge sub location, Bomachoge Borabu in Kisii County. Caren who is a member and leader of Obwachani selfhelp group, joined the Sacco in 2007, with only a capacity to get Kshs 3,000 loan, but can now get more than Kshs 200,000, which she intends to use to add rental houses.

“In the year 2007, Wakenya Pamoja Sacco officials visited our area in order to educate and

Many members attest to having greatly benefited from the Sacco, noting that their lives have been changed by being members of the Sacco and they attribute their success to Wakenya Pamoja Sacco.

Joyce Mogeni of Nyambunwa, is a prominent business lady and a proud member of the Sacco, whose life has greatly improved since becoming a member in 2007. She lauds the Sacco for helping her secure loans, which

Caren Elizabeth Obara’s rental house.

32

SACCO TIMES | OCTOBER - NOVEMBER 2020

EXCELLENCE

Caren Elizabeth Obara from Obwachani A self help group feeding poultry at her home. She started the project after she acquired a loan from wakenya Pamoja sacco. [Photo Brighton Makori} sensitize us on the benefits of being a member. Through their education, I was convinced and joined the Sacco since then. I have been a beneficiary of the Sacco by enabling me to pay school fees for my children, bought cattle and water tanks.

Moreover, I have also managed to start poultry farming and built rental houses on which teachers from the nearby Riyabu Secondary School reside.”

Hilda Kemunto Masese, who hails from Nyaigemi in Nyangusu is another beneficiary, who commends Wakenya Pamoja Sacco for enabling her to buy a matatu, after getting a loan of Kshs 800,000. ““I am now targeting a million shillings in my next move. My recent loan enabled me to buy a 10 seater matatu, which was doing well before the Covid -19 pandemic. I intend to clear my current loan and borrow more”, she said.

Hilda Kemunto Masese alongside her 10 seater vehicle she bought after getting a loan from the sacco.

They note that prior to taking their respective loans, as aforementioned, they were educated about the Sacco’s products. They strongly advocate for Wakenya Pamoja Sacco and call upon other people to join the Sacco and benefit, just like they have.

Wakenya Pamoja Sacco continues to be a very credible Sacco to join, having embraced technological advancements, in the delivery of their services via digital platforms, such as mobile banking, which has increased efficiency and convenience.

The Sacco’s stellar performance in the year under review is also one to note, with an increase in turnover for Kshs 385.4 million in 2018 to 433.7 million in 2019.

Membership also grew from 151,347 in 2018, to152,423 members in 2019. A 6.3 % growth was recorded on share capital from Kshs 454.3 million of 2018 to 482.6 million in 2019. The asset base stood at Kshs 1.57 billion from Kshs 1.51 of 2018, with member deposits growing to Kshs 776.6 million in 2019 from Kshs.757.9 million of 2018.The Sacco

All the three beneficiaries laud Wakenya Pamoja Sacco, for playing a key role in their individual success, by granting affordable interest rates on loans.

Hilda Kemunto Masese at her shop.

declared dividends of Kshs 14.2 million from Kshs11.6 million of 2018.

Wakenya Pamoja Sacco Society has been known as the people’s Sacco, aimed at enhancing the socio-economic welfare of its members, through the provision of affordable, accessible and sustainable financial services.

The Sacco has an array of both loaning and savings products, developed to cater to the needs of its diverse membership.

In addition, the Sacco, has a robust mobile banking system, with E-Banking services which include: Lipa na Mpesa, Point of Sale and ATMs. This has increased efficiency and convenience in service delivery, making it easier for members to bank and pay.

The platform caters for both registered and unregistered users, enabling members to check balances, request for ministatements, make cash deposits and withdrawals, utilizing either the Mpesa Paybill option or the USSD code *346#. They are then required to follow the prompts and after transacting, a confirmation message notification is received from Wakenya Pamoja Sacco.

OCTOBER - NOVEMBER 2020 | SACCO TIMES

33

oing business rates 4 months.

WAKENYA PAMOJA SACCO

y farmers l medium urban areas all medium rural areas

existence for at

up e from 6,9,12

e ROSCA or ASCA

rate.

# 6 4 *3

Kahawa House, Opposite Gudka Westend, along the Kisii - So k Road Overlooking Daraja Moja, P.O. Box 829-40200, Kisii Website: www.wakenyapamojasacco.com Mobile: 0777 668190 / 0746 668190 E-mail: wpsacco@wakenyapamojasacco.com

LL CA

Mobile Banking Making it Easier to Bank and Pay ENABLES YOU TO CKECH BALANCE AND REQUEST FOR A MINI STATEMENT

CASH DEPOSIT: USING PAYBILL

Registered/Unregistered Users • Go to Safaricom M-pesa menu • Select Lipa na m-pesa paybill option • Enter business number 115380 • Enter your Wakenya Pamoja Account Number that you want to deposit money to e.g. SA00WP000000000. SA and WP are letters while the others are numbers and must be 15 digits.

• Enter amount you want to deposit.

• Enter your m-pesa pin • Confirm the transaction and wait for an SMS notification from SAFARICOM and from WPSACCO.

CASH DEPOSIT: USING USSD CODE

CASH WITHDRAWAL: USING USSD CODE

Registered Users

Registered Users

• Dial *346#

• Dial *346#

• Log in with your WPSACCO pin

• Log in with your WPSACCO pin

• on the USSD menu, select the deposit option

• On the USSD menu, select the WITHDRAWAL option

• Next, select the Account Number you wish to deposit the money into

• Next, select the Account Number you wish to withdraw money to, for example M-pesa

• Select the option you want to use to deposit money for example M-pesa • Enter the amount to deposit and continue • Confirm the deposit • Enter your M-pesa pin and confirm • Wait for an SMS notification • Money is successfully deposited.

34

• On the next menu, selsct the account number • Enter the amount you want to withdraw and then continue • Confirm the amount • Wait for an SMS notification • Money is successfully withdrawn.

Kahawa House, Opposite Gudka Westend, P.O. Box 829-40200, Kisii Mobile: 0746 668190 SACCO TIMES | OCTOBER - NOVEMBER 2020 Email: wpsacco@wakenyapamojasacco.com | Website: www.wakenyapamojasacco.com

EXCELLENCE

WOCCU: A Guide for Saccos in Planning Virtual AGM’s This platform, allows the host to have full control of the broadcast, including who is on camera, who can speak and what viewers are seeing on their screens at all times. In this case, it would be good to minimize the number of video feeds needed, to as few as possible, this will help minimize the bandwidth and avoid potential technical difficulties.

By June Njoroge

T

he Covid-19 Pandemic has caused unprecedented changes in the Cooperative movement. The ban on public gatherings led to the postponement and cancellation of Annual General Meetings(AGMs) in March; when only a handful of Saccos had held their AGMs. Consequently, this has led most businesses, leveraging on online platforms to hold virtual meetings, as remote working has been swiftly adopted, to curb the spread of the coronavirus. Co-operatives can as well hold virtual AGMs, following guidelines from the World Council of Credit Unions (WOCCU), which was able to successfully hold a one of a kind virtual AGM, in July, with over 90 delegates from around the globe in attendance.

In light of this, WOCCU has developed a guide for Saccos, to address some of the considerations and strategies, needed to hold a successful virtual AGM.Sacco Times Magazine wishes to share key insights from the webinar conducted by the Senior Events Co-ordinator at World Council, Kassandra Schroeder.

Key Insights Both the normal in-person and virtual AGMs, address the same needs but differ in many ways.

First, Saccos need to assess their needs guided by their respective by laws. The next step is finding a platform, that can support key elements or features, such as authentication of membership, ascertainment of a quorum, acceptance or rejection reports, acceptance or rejection motions, voting and members queries.

Saccos need to decide on the meeting format; they can either opt for Web Conferencing or a Webinar Style format.

If everyone needs to be seen and to speak, the Web Conferencing or video meeting platform is advisable, which allows every participant to appear on camera.

This platform requires more preparation and there will be less control over the broadcast.

However, if you utilize the Webinar Style format, it allows for a smooth, scripted meeting to operate, allowing for open communication with delegates or members, via chat, Q&A or the ‘raise hand’ feature.

Saccos can also enlist a production company, that can assist in managing the broadcast. In either scenario, Saccos should schedule a dry run of their webinar or video conference, with presenters beforehand, to help identify and diagnose any potential problems before going live.

Sacco need to decide if the AGM will be a closed or open meeting. If its a closed meeting, then the Sacco can easily identify and establish its quorum, thus user authentication is not required, as only delegates receive an invite.

Saccos can issue expectations to their delegates, that the link and login details are confidential and may not be shared, if they wish to send a proxy, then this information should be shared with the host in order to update the registry.

If its an open meeting AGM, Saccos will need to establish a user authentication process and establish their quorum. In this case, the invite goes out to a voting and observing only audience. Most webinar platforms have a ‘waiting room,’ in which the host must permit each individual’s entry into the meeting. This allows for a more controlled and identified entrance to the meeting. However, in both cases preregistration will OCTOBER - NOVEMBER 2020 | SACCO TIMES

35

EXCELLENCE be required to keep track of who is attending.

Saccos need to decide how to go about voting. Ballots may need to be submitted before the meeting to allow easy tallying and announcement of results at the meeting; or during the meeting, if items require discussion, before voting, but need results announced during the meeting; or after the meeting, if not all members can make the live broadcast and will watch a recording of the meeting and submit votes.

If there are items to be addressed with a verbal yay/nay/abstain vote, in a Web Conferenced meeting, where all are on video, each person can be addressed individually, to avoid technical confusion. In a webinar style format, where only leaders are on camera, ask for ‘Nay-only’ votes, to streamline the proceeding.

Ask those with a Nay vote, to submit via the chat, Q&A boxes or utilize the ‘raise your hand’ feature.

In either case, the host can unmute this member, to allow for further commentary. In many platforms, there is also a polling functionality which can work well for nay/ yay votes as well. However, first consider which viewers are online.

broadcast is advisable, in regards to accessing the platform selected and availing contact information, in case of technical problems.

Opening your meeting 15-30 minutes early, is also advisable, to leave time to diagnose technical difficulties, before the broadcast starts, as well as allowing time, to bring your members in. Having a slide showing and music playing, helps the attendees, to diagnose if their audio is working in advance.

Saccos also need to ascertain that their selected presenters, have the technical capabilities to run a virtual meeting. Most platforms, have the capability to have the host controlling the broadcast, meaning you can virtually manage the meeting for your presenters, allowing them to focus on their presentation.

Tips and incentives should be shared with the presenters, to help them successfully deliver their

Saccos need to ascertain whether their members have the capabilities, to view a virtual broadcast. Most webinar and video conferencing platforms, can also provide a phone number, to call into the meeting and listen to the proceedings, which can be leveraged, if a member doesn’t have the internet bandwidth necessary, to view the video broadcast online, therefore they cannot be able to utilize the polling functionality.

Most platforms can be viewed from mobile phones, tablets or desk top computers. Sending a technical guide to members, before the

36

SACCO TIMES | OCTOBER - NOVEMBER 2020

Saccos should meticulously consider vendors, when receiving demos or proposals from potential partners, to support their virtual meeting.

message on camera: These include ensuring: a source of light whether natural or artificial, is in front of their face, rather than behind it, to ensure they are easily visible on camera.

They need to choose a quiet room, with an uncluttered background, that does not distract attendees, from the message they are attempting to present. Presenters should be close enough to the microphone on their computer or mobile device, so that they can easily be heard and be well equipped with working headphones, that will allow them to respond to other presenters or attendees, if needed.

Many virtual speaking guides exist which Saccos can provide to their presenters. If your speaker doesn’t have a very strong connection, you can opt for a simu-live approach, which will have an aspect of a scripted meeting, such as speeches and reports, it could be pre-recorded and then broadcast live from a secured line. In this way, time can be saved whilst still having them online, to address comments after the recording, if necessary.

Saccos should meticulously consider vendors, when receiving demos or proposals from potential partners, to support their virtual meeting. Besides inquiring about the functions of their solutions, Saccos should ensure the vendors meet the needs they have established and if the proposal pricing includes a rehearsal; this is beneficial to your speakers, vendors and staff, to make sure you are all on the same page, before you can have an audience.

Saccos should also ensure, that their agreement includes a confidentiality clause, depending on the nature of the meeting and ascertain whether the vendor’s services, include technical support during the virtual AGM.

UPDATE

Retirees Inclusion: How Saccos Can Nurture an Aging Membership

By June Njoroge

savings, Saccos can provide a dividend management plan, whereby, deductions are made from the dividend income earned, to cater for the required monthly obligations, whilst the remainder, can be divided into monthly income.

A

majority of Savings and Credit Co-operative Societies, have had a daunting task, in trying to retain members, who are senior citizens, after retirement from formal employment.

This is due to the lack of financial products and services, that are specifically tailored for retirees; who rush to withdraw membership, in order to access their deposits, as they are devoid of a regular source of income, to commit and service obligations to their Saccos. Most retirees have been lifetime members of Saccos, therefore, they have substantial deposits, that could dent the share capital base of the Sacco if mass withdrawals are made.

According to the Sacco Subsector Demographic Study Report, conducted by the Sacco Societies Regulatory Authority (SASRA) in 2019, it indicated that members aged 65 years and above, were the least in the DT Sacco system and accounted for only a paltry 5.51%, of the total membership of 4.97 million. The age bracket between 51 and 64 years, was found to be the second least, at 17.63%.

SASRA CEO, Mr. John Mwaka noted from the study, that Saccos especially Teachers-based and Government – based, needed to design products and services, that resonate with their elderly members, between the age brackets of 51-64 years and above, in order to halt the apparent mass exit of members.

Saccos must learn and understand the demographic composition of their members, and use that information, to develop responsive financial products and services, unique to the specific needs of their members.

Most Saccos have been reluctant to develop products for retirees, because of the stringent rules, set by the Retirements Benefits Authority (RBA), which some are unable to meet. The complexity of pension-backed financial products, have

also slowed down Saccos in this regard.

However, with effective strategies in place, Saccos can nurture their aging members through: • Developing Innovative Financial Products and Services, tailored specifically for retirees.

Elderly people have unique needs and cannot be compared with the younger demographic. Consequently, Saccos need to develop products and services, that appeal to senior members. For instance, with old age comes a myriad health problems, Saccos can introduce a savings product, targeted towards medical expenses, under a medical cover for recurrent illnesses. This would be a sure bet in retaining retirees. In addition, they should introduce unique features in the products and services, such as low minimum monthly saving contribution or none whatsoever, on condition that there is a dividend payment rate.

• Advising Retirees to channel their pension through the Sacco’s FOSA accounts.

Saccos should ensure that they comply and adhere to the rules and regulations, set by the Retirements Benefits Authority (RBA), before allowing their members to process their pension earnings through their FOSA accounts.

• Provision of Advisory and Dividend Management Plan.

Retirees no longer have regular monthly income, to contribute to their

• Education and Training to members who are nearing retirement.

Saccos should conduct education and training sessions, to their elderly members, who are about to retire and inform them, how they can continue to benefit as members after retirement. Before doing this, Saccos should ensure, they have implemented the aforementioned financial products and services, that can appeal to and benefit retirees.

• Introduce an estate planning scheme Saccos should introduce this scheme for their senior members, who might be concerned about future security, in the event of an abrupt death. The member will be required to nominate their spouses, children or next of kin and any other preferred beneficiaries, to join the Sacco, whilst they are still alive. The beneficiaries would enjoy the credit facilities, on their behalf and in the event that they pass on, they stand to inherit the retiree’s deposits, with a set caveat, of the inability to withdraw all the deposits, but instead enjoy monthly incomes.

• Appoint Retirees as Mentors or ambassadors of the Sacco.

Saccos should delegate retirees the roles of being mentors and ambassadors of the Sacco, whereby, they can advise younger members, on the importance of embracing a saving culture, through the Sacco. This empowers them and makes them feel appreciated; consequently, they would want to prolong their membership.

OCTOBER - NOVEMBER 2020 | SACCO TIMES

37

GROWTH

Mombasa Port Sacco Assures Members of Prosperity Despite the Covid-19 Effects Mombasa Port CEO, Dedan Ondiek during his speach to delegates and guests present during the SDM.

By Anthony Mwachiro

M

ombasa Port Sacco management, is optimistic that the Society, will maintain its top performance, amid the Covid 19 pandemic’s impact on the economy. Addressing delegates during their Special Delegates Meeting (SDM), held at Bandari Maritime Academy, in Mombasa, the Board Chairperson, Mr. Alfred Konde noted that the Society, was able to remain afloat despite the pandemic.

Mombasa Port Sacco Chairperson, Alfred Konde shares a point with his deputy Mr. Philip Omwalo during the SDM at Bandari Maritime Academy.

“The total revenue as at August, 2020 was Kshs 551.8 million compared to our budget of Kshs 648.8 million, thus missing the target by 15%. This is a positive performance for our Sacco, regardless of the adverse effects, spelled by Covid 19 pandemic.” Noted Mr Konde.

During the event, delegates approved their budget, with income projection at Kshs 1.1 billion, for the year 2021, with the board confident in ensuring that the Society Mombasa Port Sacco Hon. Secretary Susan Ayoyi, meets its target, despite addressing delegates during the SDM on 3rd october 2020.

Mombasa county director of cooperatives Nelson Nyoro addressing delegates and MPS management during their SDM.

38

SACCO TIMES | OCTOBER - NOVEMBER 2020

the impact of the pandemic, that has affected the entire world economically. Mombasa Port Sacco management, assured their members of their commitment, aimed at ensuring members’ safety, as they patronized their products and services.

According to the 2021 budget, Mombasa Port Sacco, has dedicated about Kshs 25 million shillings for marketing the society, at different levels to increase membership. In reiteration, the Chairperson, called for members, to take an active role in growing the Sacco’s membership.

“If each member can take the challenge to bring in at least one member, we would double the number to about 20,000 members.” Said Mr. Konde. On technology, he noted that plans were at an advanced stage, to have a member’s portal at the Society’s website, to enable

Mombasa Port Sacco CEO Dedan Ondiek listening to a delegate’s view during their SDM.

GROWTH

Mombasa Port Sacco delegate sharing his view during their SDM at Bandari Maritime Academy.

members access services, without visiting the office.

In a statement, the management emphasized the need to change the way of doing business, as a result of the Covid 19 pandemic, as well as adopt to what the new normal called for, in order to achieve success.

“We will adhere to the stipulated health guidelines, during these hard times, as its evident Covid- 19 is here to stay.” He added. Members are however requested, to continually change their mindset, to prudent financial management, in order to achieve positive changes in their wellbeing.

The Sacco has set aside Kshs 25.8 million, aimed at improving technology, for efficiency, while Kshs 24 million, has also been allocated to education and training.

The management insists on the need to invest heavily,

in members’ trainings, with the objective of providing required skills, to enable them to invest their credit facilities in viable ventures.

Mombasa County Co-operative Director, Mr. Nelson Nyoro, who was the Chief guest at the SDM lauded the Sacco for impressive performance despite the pandemic.

“It’s encouraging to see that you are very dedicated in ensuring that the Sacco maintains positive growth, despite the challenging business environment, which has resulted to loss of employment, hence affecting the Co-operative movement.” Noted Mr. Nyoro.

Section of Mombasa Port Sacco delegates during their SDM.

The Co-operative director called for the co-operative movement, to continue investing in technology and education to members, as the only tool to enable the societies realize their target.

Mombasa Port Sacco delegate airing his view during their SDM at Bandari Maritime Academy.

Pictures by Anthony Mwachiro.

OCTOBER - NOVEMBER 2020 | SACCO TIMES

39

GROWTH

Digitizing Saccos is Currently Inevitable but Must Begin with Management

By Malachi Motano

T

he disruption witnessed

by Savings and Credit Cooperatives (SACCOS) in the current digital age is calling for urgent automation.

However, the exercise must begin with the leadership, since it is through their participation, that will promptly transmogrify and advance the tempo, of the current unavoidable digitization of the financial institutions, such as Saccos.

Leadership here, refers to stakeholders of the deposittaking Saccos, participation of policymakers, industry regulator, Saccos’ management, from the CEOs, Chief Finance Officers to Heads of IT. From the recent 2020 premier virtual East Africa SaccoTech Forum, that was organized by CIO East Africa, it came out clearly that leaders in the Sacco movement should urgently embark on the journey of digital transformation, for them to have impact on social development.

According to Kenya Union of Savings and Credit Co-operatives (KUSCCO) Managing Director George Ototo, digital leadership embraces the increasing use of digital technologies in the world of business, as well as how organisations or institutions, are nurturing opportunities and tackling risks in a fast-developing, technology market environment.

The Sacco stakeholders ought to reflect on the various past unbelievable technological developments and the adjustments that are indicating that Saccos, are walking step by step, on a journey lined to modify processes, that will revamp social impacts in the overall goal, of the co-operators involvement in

40

SACCO TIMES | OCTOBER - NOVEMBER 2020

The East Africa SaccoTech forum organized

by CIO East Africa.

building the economy.

Now that Saccos must purpose to be dynamic in the future, emphasis must be placed on the need for the leadership, to forget the already disrupted way of management and instead lead their institutions with a focus on adaptability, agility and transparency in this era of digital transformation.

The future is dynamic which calls for reorganisation, fast adaptation and will have no space for traditional management.

Previously most organizations were focused on efficiency and effectiveness. Saccos in the country have come up with various strategic plans, to improve their performance within different periods.

Some of these plans intend to make Saccos achieve competitive advantage, in the current turbulent business environment; like customer relationship management, education and training, information technology, regulatory framework, monitoring, evaluation and mentorship and capacity building in the cooperative movement. In Kenya and even the rest

of Sub-Saharan Africa, Saccos are today highly winning the confidence of savers, compared to traditional banks due to their easy loaning nature.

As a result, Saccos have attracted large membership. In Kenya, there are over 14,000 registered Co-operative societies, of which 5,000 are Saccos. The neighboring Uganda, has more than 6,000 Saccos operating and serving more than 18 million people, while in Ethiopia there are over 20,000 financial institutions. Despite servicing such large numbers, its so unfortunate that some of the Saccos still use rudimentary paper-based tools, to manage their daily data and processes, such as recording members’ profiles, savings and loans information, sales of inputs and purchases of outputs.

The old system has high costs implications for Saccos, including loss of time on administrative issues and looking for documents, employing large numbers of staff to handle manual recording, lack of reliable data for planning and

CONTINUE ON PAGE 43

CSR

SACCO TIMES DOMINOES

Amid these turbulent times spelled by the Covid-19 Pandemic, its been hard to find moments of relaxation.

Sacco Times Magazine has prepared a Crossword puzzle, for this purpose, on Sacco lingo, that you should know: 3 4

1

6

5 2

7

ACROSS 2. Back Office Service Activity?

4. Money you pay on top of the amount you borrow?

7. Money spent or cost incurred by a Sacco to generate revenue?

ACROSS

DOWN 1. Earnings distributed to members as return on their shares/ deposits in the Sacco.

5. Front Office Service Activity?

3. A percentage return against your share capital or interest on deposit?

6. The amount of money made by the Sacco over a period of time?

DOWN

2.Back Office Service Activity?

1.Earnings distributed to members as return Ready to be Riddled?

If you have me, you want to share me. If you share me, you

on their shares/deposits in the Sacco

don’t have me. What am I?

Answers Across Down 2. BOSA 1. Rebates 4. Interest 3. Dividends 7. Expense 5. FOSA 6. Turnover.

4.Money you pay on top of the amount you borrow?

5.Front Office Service Activity?

solve the riddle and we shall reveal the answer in our next 7.Money spent or cost incurred by a Sacco toTry generate

revenue?

edition, in the Sacco Times Magazine Dominoes section, so

percentage return against your look out for3.A that.

share capital or interest on deposit?

#Sacco Times Magazine Brain teasers.

- NOVEMBER 6.Theedutained. amount of moneyOCTOBER made by the 2020 | SACCO TIMES #Keep safe and Sacco over a period of time?

Answers

41

GROWTH

Future of Co-operatives is Uncertain due to Succession Structures That Leave the Youth Behind

By Malachi Motano

old.

Unfortunately, their representation at the board of directors, supervisory committees and other prominent positions, is very low.

S

avings and Credit Cooperative Societies (SACCOS), must demystify the old belief and perception that Saccos are projects of the elderly, hence can’t entrust young people with key positions.

Those offices are occupied mostly by the over 40 year olds, who still believe that Sacco membership, is composed of older people, with no place for the youth.

Its unfortunate that while young people form, almost a third of the membership, of Saccos, they remain vulnerable when it comes to occupying major offices.

According to the Sacco Society Regulatory Authority (SASRA), about 30.86% of the Sacco Membership, are aged between 18 and 35 years.

This demonstrates that Saccos are not only for the

42

Nandi County Youth Bunge SACCO

SACCO TIMES | OCTOBER - NOVEMBER 2020

The Sacco board is charged with the responsibility of making important decisions, which include coming up with new products and services, levels of dividends and the general running of Saccos; which implies that they highly determine the performance of Co-operatives.

Most young people don’t have much in terms of investments,

which make them not to actively get involved in the management. Its rare to find the youth in Saccos with agricultural bonds like sugarcane, coffee and tea owning plantations, therefore cannot rise to the management.

The situation is replicated, in the Saccos that peg management on shares or level of savings, which in most cases knock-out young people.

Unless Saccos revise the clauses, that technically knockout young people, from holding key offices, lack of sufficient representation, puts the Sacco movement at a risk of succession, when old leaders finally leave the offices, without properly grooming new young people.

Digitizing Saccos is Currently Inevitable but Must Begin with Management FROM PAGE 40 decision-making, loss of income from unsettled loans, loss of value on stored inputs and outputs due to lack of knowledge, lack time to focus on important issues, such as marketing, loan repayment and difficulties when applying for loans due to lack of reliable business data.

The Mimi Na Wewe Youth Sacco is an initiative of Alternatives Africa promoting and facilitating development of youth-friendly saving cultures.

According to the Regulator, most CEOs are aged between 36 to 50 years, accounting for 58.48%, with only 10.53%, out of the 172 CEOs in DT Saccos below 35 years.2.34% of them are above 61 years old, with one breaking the record for being in office at 70 years.

Most young people don’t vie for positions during Sacco elections; not taking advantage of their numbers to vote their colleagues below 35 into the top offices.

Consequently, management offices are occupied by individuals between 51 to 60 years, accounting for 48.52 %,45.56% and 47.93% respectively.

According to SASRA, officials above 71 years old hold 8.28% of the Chairmen positions,9.47% Vice-Chairmen positions,4.14% secretaries and 5.92% Treasurers’.

The records clearly indicate that there are no young people, in the big offices at the Sacco boards, depicting the lack of representation within the DT-

Sacco system.

The issue of common bond is also posing challenges in setting up the Sacco leadership and management in terms of who can occupy leadership positions.

Despite the fact that government-based, teachersbased and farmers-based Saccos, with natural common bonds have opened up membership to any willing save, in one way or the other have guarded the offices of the leaders.

Saccos have opened up membership to ’foreigners’ but the same individuals, cannot vie for elective positions at the board. Meanwhile the management is purely rested on the common bond.

The challenge of involving youth and women in top leadership, is also a national problem, which poses another glaring disparity, in the Sacco movement, despite women being seen as anchors of the Sacco movement.

Some Saccos continue to use paper-based data management systems, for a number of reasons like lack of awareness of existing digital solutions, incapacity to use technology, digital illiteracy, weak enabling environments, lack of capital, social and cultural opposition to new technologies.

However, going digital presents five major operational benefits for Co-operatives which include, reduced work-day, improved accuracy, increased revenue collection, reduced cost of delivering services and improved documentation and reporting. Such digital systems free up Cooperatives to focus their efforts on important matters, such as marketing, and to improve productivity for members.

They also offer users better prospects of securing bank loans and contracts from big aggregators, since cooperatives using digital systems can easily show that they are reliable and profitable. Any Sacco seeking to implement a digital financial system, must first research and identify packages, that provide the services required by the business and its members, considering what features the Sacco needs and any additional services it would like the system to deliver.

To reap the benefits from such digital financial packages, Saccos should identify a staff member who can take the digital lead, bringing the whole business into the digital era, and developing a digital culture for the organisation as a whole.

KUSCCO MD Mr George Ototo makes a virtual contribution at the 2020 East Africa SaccoTech forum.

OCTOBER - NOVEMBER 2020 | SACCO TIMES

43

BRIEFING ROOM

Sacco News Round up

By June Njoroge.

Kenya Police Sacco Scoops the GCR Award!

K

enya Police S a c c o scoops the ‘Best National Long and Short Term Financial Lender’ Award, by the Global Credit Rating Company (GCR), for the second year in a row. This is due to strong capital position, adequate funding and liquidity, a solid risk management position and strong solid management under the leadership of the National Chairman Mr. David Mategwa.

Harambee Sacco Launches Mortgage product

Tai Sacco Holds ADM & Launch 2020-2024 Strategic Plan Tai Sacco celebrates the launch of its 20202024 Strategic Plan, Elimu and Makao loans, at the Sacco’s 28th ADM held at the St Francis Catholic Church Hall in Ruiru.

Ukulima Sacco Launch Mortgage Products in Partnership with KMRC Ukulima Sacco rolls out new mortgage products, in partnership with the Kenya Mortgage Refinance Company (KMRC); as one of the Co-operative Shareholders, in the state backed initiative towards the achievement of affordable housing, in line with the Big 4 agenda. Shareholders are to be advanced at 5%, to enable them advance to their customers at between 7% and 9 %.

International Co-operative Alliance Celebrates 125th Anniversary

Harambee Sacco has become the first Sacco to roll out the long awaited mortgage product in partnership with the state backed, Kenya Mortgage Refinance Company (KMRC) at an annual subsidized interest of 7%. KMRC has approved two mortgage products; the Harambee Jenga loan, where borrowers will be facilitated to build houses on their own parcels of land; and the Harambee Home loan, which will enable members to purchase readily built houses. KMRC will be lending to banks and financial co-operatives at an annual interest rate of 5%, enabling them to write home loans at between 7% to 9%, lower than the average market rate of 11.9%, making it 42% cheaper. The Sacco contributed Kshs 25 million for a stake at KMRC.Each beneficiary will be expected to pay a 10% deposit for a mortgage starting at Kshs 500,000 to a maximum of Kshs 4 million. The two loans are pegged at 8% rate for the 10 year mortgages and at 9% for over 10 years up to 25 years.

44

SACCO TIMES | OCTOBER - NOVEMBER 2020

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

The International Co-operative Alliance unites, represents and serves Co-operatives worldwide. Its the apex body representing cooperatives, providing a global voice and forum for knowledge, expertise and coordinated action about cooperatives.

It works with global and regional governments and organisations to create the legislative environments that allow cooperatives to form and grow.

BRIEFING ROOM

Unaitas Sacco Celebrates Sacco Supervision Shifts Online The Sacco Societies Regulatory Authority (SASRA), has shifted Members Day! the supervision of Deposit Unaitas Sacco celebrated Members Day, led by the Chairman and the CEO; appreciating members for their business support.

–Taking Saccos online, in the wake of the coronavirus pandemic, to curb the spread.

Interactions between the Regulator and Saccos, in regards to approvals and general correspondence are now being conducted online.

Taqwa Sacco Signs MOU to bolster FOSA & Asset Financing The first Shariah compliant Sacco in Kenya, Taqwa Sacco, led by the Chairman Dr. Ahmed Yussuf together with Vice Chairman, Mr. Ahmed Hussein and Takaful Insurance CEO, Sumayya Hassan, has signed an MOU, that allows to further strengthen their relationship and most importantly benefit members, applying for FOSA and asset financing.

All assets of Taqwa Sacco will now be insured at affordable and reasonable prices.

World Council Young Credit Union Professionals (WYCUP) Celebrates 20th Anniversary

W

YCUP celebrates 20 years of empowering, networking and inspiring young credit union professionals around the world. It raises the voice of young leaders across the credit union sector and represents a global community of young professions who recognize the potential for financial cooperatives to positively impact the world.

Solution Sacco Launch the Verve Debit Card Scheme & New Agribusiness Products The Meru-based Solution Sacco, has launched the Verve Debit Card Scheme to increase efficiency in the banking experience of their members. The Sacco also now has new agribusiness products tailored to meet the specific needs of Tea Farmers, Dairy Farmers and other SME’s.

OCTOBER - NOVEMBER 2020 | SACCO TIMES

45

TESTIMONIALS

Here is what our readers had to say Kudos to the Cooperative Movement for their CSR Initiatives Amid Covid-19 I would like to commend Kenyan Saccos for their efforts to help the vulnerable and needy in the society, with their CSR programmes during this Covid-19 period. I am just glad that Co-operatives were not a part of the murky Covid-19 millionaires scandal; they came together in the spirit of Co-operation and supported the needy adversely affected by the pandemic.

Samir Abdullahi, Marsabit.

Compiled by June Njoroge.

Applause to Sacco Times Magazine!

I am an avid reader of Sacco Times Magazine; admittedly, you are doing a commendable job in informing co-operators and the public on significant matters about the industry. I like the new segments that were introduced, the magazine has really improved this year, your August -September issue was particularly very informative and thorough, in regards to developments in the sector, keep up the good work. Sacco Times is definitely the leading Co-operative publication.

Brian Kiprono, Kericho

Good Riddance to Sacco Loan Defaulters!

I was very pleased when I read the article about loan defaulters and Saccos finally gaining access to CRB reports, in your August-September issue. It is such a godsend, especially for some of us who are Sacco members and have been guarantors to some of these loan defaulters, that have often in the past, put our livelihoods in jeopardy and tainted our reputations with our Saccos. Among the ways Saccos have been utilizing to get these serial defaulters to service their loans, has been targeting guarantors and to some extent almost pushing the blame on them. At least with these, reports Saccos will be able to gauge the credit worthiness of members before disbursing loans. For the members with a good borrowing history, it’s a win for them, as they can enjoy the benefits of the good CRB reports.

Youth to be Considered in Saccos’ Leadership Positions Saccos are in a rush to recruit the youth but should also consider and delegate leadership positions to them.

Leadership in Saccos has for long been dominated by the older demographic, who are also board members. These aged members, in many cases, may not necessarily embrace the changes happening in the Co-operative movement, which could jeopardize the success of the Sacco. Assigning leadership roles to capable youth will additionally go a long way in motivating them, to save more whilst even bringing in more youth. Youth are the future of the Co-operative movement, they should be given a chance to lead and bring in different incentives on how to grow Saccos.

MaryAnn Mokua, Kisii County

46

SACCO TIMES | OCTOBER - NOVEMBER 2020

Jeffrey Kiptoo, Nairobi County

Revival of the 2018 Bill is a godsend Bad governance and mismanagement in Saccos have become so rampant and actually discourage many from joining. However, the revival of the bill spells good news in the sector, because it will help in curbing corruption and more people will be confident in joining Saccos, dispelling the fears about the security of their savings. I happen to have a relative who had savings of over five million shillings, in a Sacco that went under in 2017 and it completely destroyed him and his family. He went from depression to being severely ill, at the detriment of his family. I would not wish to experience or see someone else lose all their hard earned savings to lazy, corrupt and greedy Sacco officials. This Bill, if passed to law will help in taming rogue officials and see the election of only qualified individuals to lead.

Ruth Soi, Kajiado County

{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.}

COSMOPOLITAN DEPOSIT TAKING SACCO MEMBERSHIP CARD

CLASS B

ATM Services

CHAMA LOAN

• Pay for goods and services

NAME:............................................................................................................................

• Withdraw cash from any Vis a branded ATM

BOSA PRODUCTS CLASS A

• Repayment period 36 months

A/C No. ..........................................................................................................................

SPOT CASH (M-BANKING) • Minimum deposit ksh. 1,500 per month

DEVELOPMENT LOAN

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

and ksh.50 for insurance per member.

M-COSMO/X-MOBI

• 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. ........................................................

SUPER LOAN

• 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 OCTOBER - NOVEMBER 2020 | SACCO TIMES

47

48

SACCO TIMES | OCTOBER - NOVEMBER 2020