Lengo Sacco Embraces Technology to Spur Growth

Lengo Sacco , CEO, Mr.William Yaa, Chairman Mr. Jonathan Kahindi Charo, look on, as the retiring Chairman, Mr. George Ndaa Tune, receives an award from Ms Mary Mkare, County, Chief Officer for Trade and Co-operatives during the 2020 SDM. Lengo Sacco Embraces Technology to Spur Growth

By Our Correspondent

The renowned Lengo Savings and Credit Co-operative Society, has embraced technology as its backbone to spur growth; boosting customer experience and satisfaction through the efficiency and convenience, brought about by employing technological solutions in service delivery.

Speaking during the Society’s Special Delegates Meeting (SDM) held at the Kenya Red Cross hall in Malindi constituency, Kilifi County; the Sacco Chairman Mr. Kahindi Charo said that before the end of the year the Society would roll out a mobile banking platform, while awaiting approval from the Sacco Societies Regulatory Authority(SASRA).

The Kilifi County Government, Chief Officer, in charge of Trade and Co-operative Development, Ms. Mary Mkare, applauded the Sacco on the vital move to adopt mobile banking.

“I wish to applaud the Sacco’s plans to commence mobile banking, while awaiting the regulatory approval,” she pointed out. She added that the move will also enable Sacco members to transact through

Kilifi County Chief Officer for Trade and Cooperatives,Ms Mary Mkare, addressing, Lengo Sacco delegates, during the SDM held at the Malindi Red Cross Hall.

the platform, without visiting the Co-operative banking halls; reminding them that the future of cash transactions is bleak with the surge in the Covid-19 cases. In addition, she noted that the move would ensure that the Sacco would be in a healthy competition within the sector, which would enable the enrolment of more youth while phasing out the 20th century analogue models. She emphasized that technology was the way to go with the youth, who are deeply engaged in technology.

“Let the Sacco use an alternative avenue to be able to recruit members through technology, rather than outdated methods,” she pointed out, citing that social media is vibrant and popular with the youthful generation.

The Sacco approved their 2021 budget estimated at Kshs 77.9 million. The budget is the grand total income with a total liquidity investment income of an estimated Kshs 280,000, compared to this year’s Kshs 230.000.

“The Society’s total interest in loans in the estimated budget, is at the tune of Kshs 40.8 million compared to this year’s budget of Kshs 32.7 million,” Mr Jembe pointed out. He further disclosed that the Society’s Front Office Service Activity (FOSA) and other total income of the 2021 budget, is at Kshs 11.8 million compared to the current one which was Kshs 9.8 million.

Despite the challenges the Sacco has been facing, it has managed to loan members Kshs 124,135,500 compared to Kshs 87,110,192 in the same period last year, indicating a positive growth of 42 per cent.

The Sacco plans to convert the site office in Mtwapa into a fullyfledged branch in 2021.The Chairman, Mr Charo, said the move was a result of more people joining the Sacco; adding that it would boost marketing as it is strategically placed in the area.

working on a plan to open a site office in Mariakani, along the Nairobi and Mombasa Highway due to the activities in the area,” he pointed out. He further noted that member recruitment has been adversely affected by the deadly disease. However, the Sacco managed to recruit 2,436 members towards the end of the year, which is a 14% growth despite the Covid-19 pandemic.

“The total membership of the Society now stands 19,783 as compared to 17,347, at the close of the previous year,” he said. The Sacco further lauded the County retirees, who have opted to retain their membership. Mr Charo said that the Society would come up with a maximum amount of loan grant to the retirees, who are out of the County payroll. He further noted that the growth of members’ deposits this year stands at Kshs 186,686,183 as compared to Kshs147,365,669, in the previous year; registering a growth of Kshs 39,321,514 at 26% this year.

Ms. Mkare assured the Sacco that the County is ready to partner with them in loans on seeds funds, to economically empower them. She noted that time was ripe for the Society members, to start benefiting from the economic empowerment program in the County.

“The Society is above the Kshs 3 million, to qualify as required by the regulatory board,” she pointed out. She added that the fund could be channelled through the Society, whereby members can benefit through engaging in agricultural activities. The Sub County Co-operative officer, Felisther Ziro, asked the Society to take advantage of the scheme, to empower the small and medium size enterprises(SMEs) under their jurisdiction.

She further urged the Sacco to focus on the future, adding that the enrolment of members was good, which had gone up with deposits and turnover. In addition, she applauded the Sacco for observing the gender rule when recruiting their staff. She said the County government was in line with the national government, on the Big 4 agenda, as they have started registering housing co-operatives as requested.

“Let us make use of all necessary marketing tools to enrol members into the Sacco,” she urged.

Ms. Mkare lauded the Sacco board members, management and staff for steering Lengo Sacco in the right direction; being able to recruit members despite the Covid-19 pandemic protocols and guidelines.

“There is a lot to be achieved by the Sacco despite the protocols, to contain the spread of deadly disease,” she noted, whilst urging them to ensure they put measures in place, to contain the spread of the coronavirus with a focus on next year’s plans.

Lengo Sacco, CEO, Mr. William Yaa (left) with the Chairman Mr. Jonathan Kahindi Charo (right) exchange words, during the 2020 SDM, at the Malindi Red Cross Hall, in Malindi in Kilifi County.

Lengo Sacco, Secretary General, Rose Dama Kasiwa (left) reads her statement to the delegates during the 2020 SDM.

Lengo Sacco, Kilifi branch manager, Mr. Eric Safari Baya (left) with the CEO, Mr William Yaa (right) during the 2020 SDM, at the Malindi Red Cross Hall in Malindi, in Kilifi County.

LENGO SACCO

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

SOCIETY LTD

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

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

PROFILE Lengo Sacco Ltd was started in 1976 and was drawing its membership from the Permanent Employees of the Municipal Council of Malindi, who have now been taken over by the County Government of Kilifi. Since that time Lengo Sacco Ltd has undergone tremendous growth and has opened its common bond to non-employees of Kilifi County Government, we are therefore extending our sincere welcome to the public at large with the vision of growing together.

OUR PRODUCTS AND SERVICES I. FRONT OFFICE Jawabu Account An account that answers all your financial questions any time you need cash. Access your money 24/7 with no limit.

Requirements • ID photo copy of the applicant. • Passport size photo (take at the branch)

Lengo Savings Account An account tailored to embrace those with passion to save. Lengo savings account welcomes your decision to build savings in an easy effective way.

Features • Initial deposit – Ksh 500 • Minimum operating balance Ksh 2,000 • Account maintenance – free • Withdrawal restricted to only once a month.

Tunza Junior Account Do you want your child to be financially smart? You as the parent hold the key to this dream. Tunza Junior exposes your child to the saving culture making him/ her part of the banking process.

Accounts Benefits • A complimentary Education tour for active Tunza

Junior annually. • Access to your money once in three months.

Features • Initial deposit – Ksh. 300 • Minimum operating balance – Ksh. 1,000 • Monthly account maintenance fee – Nil • Withdrawal charges – Ksh. 100

Requirements • Birth certificate of the child • ID photo copy of the parent / guardian • Passport size photo (taken at the branch)

Bakisha Account Designed puporsely for small traders i.e. boda, mama mboga….

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

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

Features • Initial deposit – free • Minimum operating balance – Ksh. 1,000 • Withdrawal charges – Ksh 100

Requirements • Member’s ID photo copies • One of the members must be an existing member of the Sacco • Passport size photos (taken at the branch)

Sherehe (Christmas / Idd / Birthday), Account An account designed to meet the demand of our Christian and Muslim members. Sherehe account allows you to save specifically for these festives.

Features • Withdrawals shall strictly be at the beginning of the festive month. • No account maintenance fee • Withdrawal charges – Ksh 100

Mama Jiandae Account This product is designed to allow expectant mothers save and meet their future delivery expenses and the needs of the new born baby.

Features/ benefits • No ledger fees • No minimum operating balance. • Allows daily, weekly or monthly deposits. • Withdrawals only at the maturity date • Withdrawal charges – Ksh 100

Corporate Account A business account that allows registered organizations / institutions to cary out their banking in a convenient manner.

Features • Initial deposit – Ks. 2,000 • Minimum operating balance – Ksh 2,000 • Ledger fee – Ksk. 100 • Withdrawal charges – Ksh. 100

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

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

Special Advance Repayment period: up to five months Interest rate 10% on reducing balance These are loans extended to registered members after a period of six months. Extended loan amount should be three times the member’s shares.

Requirements • Three guarantors and a witness. • ID photocopy of the applicant. • Repayment period up to 48 months. • Interest rate 1.75% on a reducing balance.

Development loan top up A facility extended to those already servicing a development loan.

Requirements • One should have serviced at least ¾ of his/her current loan. • A 10% penalty will be charged on the remaining balance. • 2% interest rate

Smart Loan • Should have a payslip • Should be a member • Amount depends on the basic salary • Interest rate of 1% per month.

Somesha Loan This is a special facility designed to all needy students in primary, secondary and college level.

Requirements • The fees structure for the whole year (signed and rubber stamped) • The student’s admission letter (stamped) • ID photocopy of the applicant

Features • Interest rate is at 1.75% on a reducing balance. • Repayment period: up to 48 months for college and 12 months for primary and secondary level.

Okoa loan • Access upto Ksh. 50,000 within 24 hours. • A special facility for the salaried members.

Features • Does not consider the 2/3 rule. • Repayment period is upto12 months, • Interest rate is at 2% on reducing balance.

Requirements • Recent pay slip • ID photocopy • Three guarantors

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

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

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

the co-operative identity we know today is the result of participatory, open and democratic processes.

On its anniversary, its reflected upon in the light of the enormous global transformations over the last few decades. ‘Looking back for a stronger, brighter future,’ was the first topic which delved into the significant role the co-operative identity plays in today’s world, the importance of adapting to changing needs, and how critical it is to ensure inclusion and diversity remains a priority.

Key Highlights from the first online event: • Co-operatives should not only talk about the Co-operative identity and values, the movement must also present examples of how those values can be translated into action; by first integrating other collectives, to become a known model, to avoid missing out on many people.

• Education is key in fostering the identity ad co-operatives should utilize technology as a tool to reach many members and educate them about the cooperative model.

• Co-operatives should remain cognizant of the role of women in the sector, bridging disparities brought about by gender inequality especially in the governance role.

• Co-operatives should stay true to the Co-operative values and principles required involving different cultures, encouraging independent thinking and maintaining independence and autonomy.

• Co-operators should encourage young people to participate by following education and tangible actions. They should strive to increase mentorship efforts and make mandatory autonomy and spaces for real dialogue for the youth.

• Co-operators should be flexible and fluid when interpreting the co-operative identity- to reflect the events of recent years and attract new members from outside the movement.

• The issues of climate action, digitization and members’ capital should be taken into account by

Co-operatives across the board.

• The Co-operative identity is necessary to promote our projects and position ourselves in a world full of challenges, uncertainties and problems that

Co-operatives are also based on the ethical values of self-help, selfresponsibility, democracy, equality, equity and solidarity.

must be solved urgently. The pandemic has highlighted and accentuated these conditions, both expressions of solidarity and conflicts and inequalities.

• By co-operating we can overcome the enormous health, economic and social crisis. One billion members from three million cooperatives around the world are betting on the co-operative model at this moment.

Key Insights from the second online event During the second event, panelists explored the impact of the Statement on regulation and legislation, with a focus on the ILO Recommendation 193 on the Promotion of Cooperatives in 2002.

The identity statement is a fundamental source of legislation and regulation because it’s a set of operational standards which could also help legislators differentiate between various types of co-operatives. “The ILO Recommendation helped to change the perception of co-operatives and is still a very modern document.

It contributed to the revival of cooperative ideas throughout the UN system” said Hagen Henry, former ILO Co-op Chief and Adjunct Professor of comparative law at the University of Helsinki. Panelists also emphasized to the need to put cooperatives on education curricula in schools and universities around the world.

Today the world is seeing the cooperative identity in action, its scope and its potential. Co-operative values and principles are expressed in each territory, with the complexities of each scenario, where we have to intervene.

Co-operative Identity can help solve some of the global issues we are facing such as the 2020 pandemic. The values within the statement on the cooperative identity, particularly those of self-help and self-responsibility, not only in taking care of ourselves but also the solutions such as the social distance guidelines.

The Co-operative identity must be a mirror where we can look at ourselves, and an invitation to act with more solidarity every day, in a more responsible and sustainable way. “As we lead up to the 2021 World Co-operative Congress in Seoul, we can continue to have this dialogue and it needs to reach beyond the formal structure of the ICA,” added Martin Lowery.