Issue 41

KEEPI N G YO U I N FO RM E D P L US INSIDE @saccotimeskeSACCO TIMESwww.saccotimes.co.ke Kenya Sacco Sector Cements Lead Across Africa as Assets Hit KSh 1.5T Members, Investors’ Solid Gain Lifts Police Sacco to Second Best in Kenya Hits and Misses: The Dilemma of Loan Guarantors In Saccos ISSUE - 2022041 AUG - SEPT 2022 | KSh. 150.00

2 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed...

AUGUST - SEPTEMBER 2022 | SACCO TIMES 3Keeping you informed... In Push to Step up Sector Standards, Saccos Urged to Join Award Scheme 5 Tembo Sacco Savours 50 Years of Transforming Lives 6 Tembo Sacco Scoops Four Awards on Ushirika Day 10 Kenya’s SACCO Sector Cements Lead Across Africa as Assets 11 Hit Sh1.5 Trillion Members, Investors’ Solid Gain Lifts Police SACCO 13 to Second Best in Kenya Savings Challenges 16 Iconic Plaza, Fresh Blueprint Signal New Era at Imarika Sacco 17 Community-Based Waumini Sacco Bags Five Awards 21 Hits and Misses: The Dilemma of Being Loan Guarantors in Sacco 23 Mentor Sacco Wins Top Awards on Sound Risk Management Practices 25 IG Sacco Shines Brightest in Three Fronts: Management, 27 Returns and Education Ndege Chai: A Trailblazer among DT Agriculture - based Saccos 29 DIMKES’ Three Awards Cements Sacco’s Lead in the Sector 32 Universal Traders Outshines Peers on Best Use of Technology, 34 Credit Management Taifa Sacco Sets the Trend in Nyeri County 37 Teledyne Solutions Changing Work Environments To Efficient, 40 Effective Modern Spaces In Sign of Financial Health, Mombasa Port Sacco Bags Coveted 42 Best Capitalization Prize Karura Community Sacco Enjoys Multiple Wins of Awards, 45 New Products and Partnerships New Era in Sacco’s Regulation as Data Protection Law Sets In 48 Perfomance Report 49 Pictorials 54 CONTENTS Keeping you informed.... CHIEF EXECUTIVE OFFICER Joan Mutindi EDITOR IN CHIEF ReinhardSTAFFJamesEDITORIALMosagweWambuaAnnMachariaWRITERS Anthony Mwachiro, Clarence Imbayi, Kipkoech Chirchir, Dickson Adhiambo, Doreen Atenya, Alexander Kimuri, Lilian Mutiso, Irene Atieno, Austin Nyambuoro, Brighton Makori, Enock kipturgut, Ann Macharia, Jack Okoth, SALES & ADVERTISING Dorcus Koech: 0715754145 Rose Murage: 0701581491 Sarah Kwamboka: 0707116893 Enock Kipturgut 0722699204 DESIGN AND LAYOUT: Matthews Memusi Satimes East Africa Ltd SUBSCRIPTION Major Capital Agencies Limited DISTRIBUTION AND CIRCULATION JETsam Distribution Limited PUBLISHED BY: Satimes East Africa Ltd View Park Towers, Utalii Lane 17th Floor, Wing C Suite 402 P.O. Box 41364 - 00100, Nairobi Cell +254724172670 / 0720380226 Email:Website:satimeseastafrica@gmail.comwww.saccotimes.co.ke KEEPING YOU NFORMED P L US INSIDE @saccotimeskeSACCO TIMESwww.saccotimes.co.ke Kenya Sacco Sector Cements Lead Across Africa as Assets Hit KSh 1.5T Members, Investors’ Solid Gain Lifts Police Sacco to Second Best in Kenya Hits and Misses: The Dilemma of Loan Guarantors In Saccos ISSUE 2020041 AUG SEPT | KSh. 150.00

We take this chance to congratulate the United Nations Deposit Taking SACCO Society for emerging as the best cooperative nationally.

In this edition, we profile for you various SACCOS that emerged winners under a number of categories, winning trophies during the 100th United Nations Day of Cooperatives celebrations that were marked globally in early July.

The Kenya National Police Deposit Taking SACCO did equally well, coming out as the first runners up in the country, a pointer to good times ahead for the industry as the economy recovers from the devastating hit triggered by the pandemic. Cooperative Bank Sacco came third in the overall Manyranking.other SACCOs within the devolved government unit level also shined brightly on several parameters under consideration by the Cooperative Alliance of Kenya.

Overall, the awards won by various SACCOs present a rare chance for each of the businesses to double their efforts and reap the optimum rewards with respect to their strengths. Whether a society has been in business for years or months, the standout areas offer a chance to reap the maximum benefits for their excellence in product and service offering going forward. Enjoy the reading.

Covid-19 pandemic, which is now in its second year ravaging the world, an erratic climate that is negatively affecting the cost and availability of essential food supplies, plus mounting data security questions leave enterprises facing challenges, new and old.

However, in an effort to honour Savings and Credit Cooperative Societies that have excelled in various categories in Kenya, the Cooperative Alliance of Kenya has undertaken a splendid job, providing avenues for various Sacco’s to get awards at both national and county levels.

James Wambua

4 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed... EDITORIAL

For SACCOs across Kenya, taking part in the Cooperative Alliance of Kenya assessment and thereafter awards is the perfect way to demonstrate to thousands of your members, your employees, and other key stakeholders that your efforts are valued by the organization, whilst also providing the public evidence of your successes as a business.

Dear Readers, In these times of economic upheaval in Kenya and across the world, the financial services business environment has not been spared.

Operating all around the world in different sectors of the economy, cooperatives have proven themselves more resilient to crises. They foster economic participation, fight against climate change, provide jobs, contribute to food security, hold capital within grassroots, build ethical value chains, and by improving people’s welfare and security, contribute to global peace.

The micro lenders’ participation in the national vetting and ranking for their product and services offering indicates that an increasing number of societies in Kenya are catching the discerning eye of third parties and that their expertise, level of customer service, and range of products offered are creating a buzz within the industry, and market both nationally and at the county level.

Themanagement.Saccoswent on to qualify whether they are tier 1, 2, 3 or 4 according to their asset base, their parent sector based on the predominant original membership base such as employer, agriculture or community based and also whether the entities are registered with SASRA, licensed deposit taking or non-withdrawable deposit taking in their nature of Theoperations.categories

Saccos were examined and awarded included Best Managed Sacco, Best in Savings Management, Best in Credit Management, Best in Risk Management, Most Efficient, Best in Capitalization, Best in Technology Optimization and Most Improved among others.

In Push to Step up Sector Standards, Saccos Urged to Join Award Scheme

Failure to have audited accounts automatically disqualifies Sacco from adjudication, and the information shared must be backed with supporting documents.

leaders that a noble criterion was used in the ‘Ushirika Adjudication Exercise’, when selecting the winners in the different Sacco categories under

“Winning an award is a competitive process where the best win and the others learn” – this was the rallying call by the Cabinet Secretary Agriculture, Livestock, Fisheries, and Cooperatives Hon. Peter Munya while urging more societies in the country to step forward and participate in the Sacco’s Award MrScheme.Munya said the scheme is enriching the Cooperative Movement since it ranks the performance of Saccos and helps them to identify gaps in their governance, management, communication, and operations with a view to plug them.

Thefocus.criterion was evidence-based and required Saccos to fill in a detailed electronic form with information about the cooperative’s profile, file audited accounts for the last three years, and provide a brochure of their range of product offerings, he noted. This year, Saccos filled a detailed 15-page document on different aspects of their business including membership, financial management, credit management, products and services, governance, management information system and ICT, and human resources

This important exercise is to enable the Cooperative Societies to achieve continuous improvement through benchmarking and networking,” Cooperative Alliance of Kenya Chairman, Mr. Macloud Malonza, said “Every competition is useful not only to the winner but also to those who do not win CABINET SECRETARY HON. PETER MUNYA

AWARD SCHEME

AUGUST - SEPTEMBER 2022 | SACCO TIMES 5Keeping you informed... By Safidah Njeri

Commissioner for Cooperatives David Obonyo said the celebrations and awards went down in the backdrop of the Covid-19 pandemic-induced economic challenges, and there was room for the societies to improve going “Letforward.usbe innovative. Let us try to see the best ways we can serve our members. Let us try to understand the aspirations of our members, and consequently achieve our goals and fulfil the reasons why we started these cooperatives,” said Mr. Obonyo.

The 2022 adjudication was undertaken by Coop Consultancy and Bancassuarance Intermediary Limited (CCBI), an independent consultant, and the process included a visit to Saccos to confirm and verify the information submitted on the filled in form.

“Every competition is useful not only to the winner but also to those who do not win because they will know where they have gaps, put more effort and do better in future. I congratulate those who came up with this award scheme,” said Mr TheMunya.CS was speaking during the Ushirika Day 2022 evening gala in Nairobi where different Saccos received trophies in various categories for their outstanding performance nationally. Other similar awards, at the county level, were handed to Saccos during the celebration events held in some of the 47 counties in Kenya recognizing their strong show and Heperformance.assuredSacco

Mr Obonyo recognised the growth of the Sacco over the years saying “it stands tall among its peers” in his speech read by Nairobi County Director of Cooperatives, Ms. Dolphin Aremo. Mr Obonyo urged Saccos to remain focused on their core business of mobilising savings and providing credit to members at affordable interest rates to uplift the lives of Kenyans and mainstream them into the national financial market through innovative products, and in adherence to the statutory requirements on prudential ratios as outlined by the SACCO Societies Regulatory Authority (SASRA). “I am aware that Saccos have mobilized savings among the lowincome shareholders, who have limited access to mainstream banking. It is your duty to diversify the avenues for savings mobilization and the development of new financial products. This is the only way to improve the intermediation between savings and investments, expand your operations, where possible, for increased incomes including outreaching all potential members across the country,” he said. He reported that the cooperative movement now has a commanding asset base of KSh1.3 trillion, KSh885 billion in savings and deposits and a loan portfolio exceeding KSh860 billion. The industry contributes about 35 percent of the national savings in Kenya. Kenya’s cooperative movement is recognised as number one in Africa, and seven in the world.

Tembo Sacco Chairman Mr. Maina Kiguru Delivers His Speech.

By Safidah Njeri In Nairobi and across the country where it draws membership Tembo SACCO is toasting 50 years of service with leaders from the cooperative sector lauding the institution for blazing the trail in excellence and commitment to the financial success of savers. To mark the milestone, grand celebrations were held at Tusker Grounds, located within East Africa Breweries Limited (EABL) factory in CommissionerRuaraka. of Cooperatives Mr. David Obonyo said, “The Golden Jubilee anniversary celebrations is a great milestone and significant moment to pose and look back at the growth trajectory since the Sacco started from its humble beginning in 1972 to the great institution it is today.”

Well done! Tembo Sacco Savours 50 Years of Transforming Lives

SASRA CEO Peter Njuguna gives his speech.

Tembo Sacco CEO Lydiah Mungai said it was remarkable to witness the society turn 50, terming the period as “an incredible journey”. Mrs Mungai joined the SACCO when it was 35 years old, and has been at the helm for

6 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed...

TRANSFORMATION

Keeping you informed... the last 15 years. “Tembo Sacco has grown from a very humble beginning to become a force to reckon with in the industry. The Sacco has a place among the peers. It cannot be ignored or wished away. This growth happened because of men and women who worked hard and handed over the baton to the next generation,” said CEO Mungai. She paid glowing tribute to the late Kenneth Matiba, a prominent politician from Muranga County, who once served as Chairman of Tembo Sacco. Other former Chairmen of the Sacco present in the Golden Jubilee celebrations were Ms. Leah Ngatia, Mr. Basil Odhiambo, Mr. Allan Riungu and Mr. Emmanuel Kariuki. Chairman of Tembo Investment Cooperative Mr. John Kamugi also graced the occasion. Tembo Sacco’s policy that “a person serves a maximum of six years in the board” has allowed members the opportunity to enjoy fresh, and unique ideas from different sets of leaders. The CEO encouraged the staff and board to work diligently because their actions today would become part of Sacco’s history during the centenary (100 years) celebrations. “We step into the next 50 years with enthusiasm and energy, determined to continue bettering the lives of our members, economically. Today, we bask in the glory of past success, fully aware that past success can become a hindrance to our forward movement. So, we will quickly take stock of the past, celebrate, leave behind the unnecessary baggage, and move forward to the great unfolding future,” said the CEO. The industry regulator, SASRA, was represented by CEO, Mr. Peter Njuguna, who acknowledged the diligence of the cooperative since they were licensed in 2012.

Former Chair Basil Odhiambo Receives an Award.

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“This Sacco has worked 50 years, scaling growth after growth, and we celebrate you for the good work you have done. Sustain what you have been doing, because it has worked, and SASRA has not received a complaint on your work, Tembo Sacco,” he said.

The Chairman also highlighted some of the achievements by the Sacco that included: the birth of Tembo Investment Cooperative, investment in Tembo House along Moi Avenue, Tembo Venture Housing Cooperative, initiation of FOSA services in 2002, investment in Cooperative Bank CEO Tembo Sacco Lydiah Mungai. Members and Staff during the 50 years celebrations.

Mr. Njuguna pointed out that many Saccos that began 50 years ago had folded and celebrating 50 years was “no small achievement”.

Samuel Mwangi one of the oldest Member Receives an Award.

TRANSFORMATION

Tembo Sacco Chairman, Mr. Maina Kiguru, expressed his joy on this 50-year milestone to those who had gathered for the celebration, saluting former Chairmen especially in drafting the first Strategic Plan that guided the entity’s operations.

“The Sacco drafted the first strategic plan in 2008, and since then we have always been guided by a Strategic Plan. Since the first draft, our assets have grown more than 20 times and we have improved on our risk management and governance.” “It has been an exciting journey and onward we march into the next 50 years,” said Mr. Kiguru.

Gifts were given to individuals whose service has stood out: Mr. Samuel Mwangi (joined Sacco in 1974), Mr. Basil Odhiambo (former Chairman), Ms. Lydiah Mungai (the CEO), Ms. Joyce Wandeto (worked at the Sacco for 25 years), Ms. Susan Ngaruiya (longest-serving employee), Mr. Allan Riungu (former Chairman who led the Sacco in buying the Tembo Trio Complex), and its two youngest savers: Ms. Grace Koki and Mr. Marvin Njau. Mr. Alloys Otieno, one of the oldest members of the Sacco and who served as Vice Chairman, Treasurer and Chief Accountant at Kenya Breweries Limited was recognised and saluted for his 30 years of service before exiting in 1994. Madam Christine Kamau, who is also a member of the Sacco, said the Sacco had grown because of the contribution of everyone over the years. Others present during the historic celebrations were: Director Cooperative Bank Mr. Vincent Marangu, who congratulated Tembo Sacco for the 50 years milestone in their years of service to the people and contribution to the growing economy of the country. “We, as Cooperative Bank are very proud of Tembo Sacco. It is a Sacco we are affiliated with for those 50 years, and I can tell you, the prudent management that is in this Sacco is at another level. Imagine 15 staff taking care of KSh5 Billion in assets, in addition to loans and deposits. I congratulate the CEO and the team that works under her,” said Director Marangu. He also took the audience down memory lane when the first Tembo Sacco Strategic Plan was drafted Alloys Otieno, one of the oldest Member Awards the Current Youngest Saver in Tembo Sacco.

Former Chairperson Allan Riungu. Former Chairperson Leah Ngatia. Former Chairperson Emmanuel Kariuki. Former Chairperson Basil Odhiambo.

The Sacco’s performance has stood out over the years and has been honoured during the annual Ushirika Day celebrations with different awards for delivering quality services to members.

8 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed... shares, licensing by SASRA in 2012, and investment in the Tembo Trio investment company limited.

TRANSFORMATION

“We have more than 5,200 members, an asset base of KSh4.2 billion and are also working towards moving from a tier-two to tier-one Sacco and attain KSh5 billion in asset base by the end of this year. We have advanced loans to members of KSh2.9 billion, our annual revenue was more than KSh540 million last year,” he said.

2. Best in Savings anagement DT Saccos 4 Best in OptimizationTechnologyDTSaccos

I have been a member since then, and I am grateful to the leaders of the Sacco because most of them, the Directors, do this as a second job. Most of them are our senior managers at EABL, and they sacrifice to offer leadership to Tembo Sacco,” said Mr. Mureithi. He emphasized that it was leadership that raised Tembo to where it was ‘a great story of success and growth’ that has birthed other sister institutions. “It is good to be associated with Tembo, and her success. I thank the leadership and also the members because the KSh4.2 Billion is the wealth of the members. I wish Tembo Sacco another great 50 years, and we will be leaving a solid company for our children,” he added. Consol Glass (K) started operations in 1987 in the country. They deal in glass products. Director KUSCCO and National Chairman Qwetu Sacco/Taita Taveta Teachers Mr. Alfred Mulolwa, Senior Regional Manager Nairobi KUSCCO Mr. Arnold Munene, and CIC officials also graced the ocassion. Former Chairman Mr. Basil Odhiambo, who spoke on behalf of former leaders said, “Well done Tembo for getting to the fifth floor. I am proud to have been part of this journey. I pray God gives me 25 years so I am in this room again when we celebrate 75 years of Tembo Sacco.” He emphasized that it was leadership that raised Tembo to where it was ‘a great story of success and growth, but also resilience and hardwork

AUGUST - SEPTEMBER 2022 | SACCO TIMES 9Keeping you informed... in 2008. Mr. Marangu said he was shocked that 14 years had already passed but recognised the great minds who contributed to its formulation since the document helped the Sacco scale greater heights in the financial sector. “The investment the Sacco did by buying Cooperative Bank shares was profitable, and the members get handsome dividends as shareholders of the bank. We are proud of the 50 years, let us celebrate. We as Cooperative Bank will walk the journey with you,” said Director Marangu. He also proposed to SASRA to start recognising female CEOs like Lydiah who were doing exemplary well in their role of running a Sacco, noting that most Saccos managed by female CEOs hardly have issues as compared to those run by men. Also present in celebrations were: Cooperative Alliance Kenya - Members Ms. Anne Nyambura and Ms. Lydia Omwoyo, CEO Nation Sacco Mr. Jacob Kimathi, and Chairman Nation Sacco Mr. Peter Munaita, CEO Shirika Sacco Mr. John Kirika, and CEO Consol Glass (K) Mr. Joe Mureithi who celebrated Tembo Sacco’s 50 years milestone by sharing his journey as a member of the Sacco. “I joined Tembo Sacco in 2001, one month after joining EABL as a staff. And, today, I live 800metres from the EABL Head Office where I bought a piece of land through Tembo Sacco.

1 Best Managed Sacco DT 3 Most Efficient DT Saccos

County Director of Cooperatives, Dolphin Aremo. CEO Consol Glass (K) Mr. Joe Mureithi

TRANSFORMATION

The Sacco also credits its success story to the adoption of a Strategic Plan, with the first draft compiled in 2008, as well as coming under the watchful eye of the industry regulator, the Sacco Societies Regulatory Authority (SASRA) since 2012.

The third and fourth award Tembo Sacco won was ‘Best in Savings Management Deposit-Taking Sacco’ and ‘Best Technology Optimization Deposit-Taking Saccos’ and was listed at number three under EmployerBased Saccos, Tier One. The adoption of technology among Saccos accelerated during COVID-19, as financial institutions moved to change their service delivery models, operations, and customer care systems in line with health protocols spelled out to check the spread of the deadly virus.

10 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed...

Cabinet Secretary Agriculture, Livestock, Fisheries and Cooperatives Hon. Peter Munya hands trophies to Board Member Job Muthoka, Tembo Sacco CEO Madam Lydiah Mungai and other Sacco staff during the 100th Ushirika Day 2022 Celebrations at the KICC.

Tembo has a membership of more than 5,200 savers from within and outside the employee portfolio of East Africa’s largest brewery company. The Sacco encourages members to deposit their savings and also get serviced with loans to grow their businesses, firms and improve their lives.

Overal the SACCO was number four in the country. It has constistently paid interest of 11.5 percent on deposits and 20 percent dividends on share capital.

TRANSFORMATION

Tembo Sacco Scoops Four Awards on Ushirika Day

Tembo Sacco has been recognised as the Most Efficient Deposit Taking Sacco in the category of Employer-Based Sacco, tier one, during this year’s Ushirika Day celebrations. The society, which is also celebrating 50 years since its establishment, draws the bulk of its membership from workers of East Africa Breweries Limited (EABL) and Consol Glass (K) Ltd. Under CEO Lydiah Mungai and Board Chairman Maina Kiguru, the Sacco has steadily grown over the years, positively impacting members’ lives and catching the eye of industry regulators and peers hence scooping this coveted award. Tembo also came third in the list of best-managed Deposit Taking Saccos, employer-based, tier one.

Years of sustained growth by over 26,000 cooperative societies in the country continue to pay off as the latest sector statistics show a combined KSh1.5 trillion in asset value. The growth has firmly established Kenya’s position in the global cooperative movement as the leader in Africa, and number seven globally, underscoring the country as a hot cake for trade and investment.

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The growing stamina of the Sacco sector was detailed in President Uhuru Kenyatta’s speech on July 2, 2022, during the national celebrations marking 100th United Nations International Day of Cooperatives at the KICC in Nairobi. Similar celebrations were held at the counties. “Kenya would be lesser today without the cooperative movement. Going forward, we should strive to strengthen the movement, to empower small-scale farmers, traders, micro-enterprises, and manufacturers. The cooperative movement is the way forward for sustainably empowering micro and small business enterprises in our country,” said the President. He was the Chief Guest during the celebrations where he also visited the different exhibition stands set up by Saccos. In the fete, Mr Kenyatta presented trophies to three societies that emerged as the best managed countrywide: United Nations DT Sacco (position one), Kenya National Police DT SACCO (position two), and Cooperative Bank Sacco (position three). At the national level, a total of 76 Saccos received awards with hundreds of others at the county level getting similar recognition.

Despite the current challenging economic times, SACCOs have

GROWTH

Kenya’s SACCO Sector Cements Lead Across Africa as Assets Hit Sh1.5 Trillion

The President underscored the vibrancy of the cooperative movement in Kenya and the tremendous growth of the industry in membership, asset base, deposits, and investments.

Looking back to the 10 years he has been at the helm of the country’s leadership, he said, “Kenya has one of the most vibrant cooperative financial institutions cutting across the banking, insurance, Saccos, investment and housing activities that serves the citizens.”

“Collectively, these cooperative financial institutions hold about KSh1.5 trillion in assets, and my administration gives specific policy focus to Saccos given their role in mobilizing savings and providing credit to their six million members.”

A Photo Moment With President Uhuru Kenyatta During the Ushirika Day 2022 National Event in Nairobi. By Safidah Njeri

Member Hon. Daniel Maanzo, ofNairobiCityNjuguna,(SASRA)RegulatoryObonyo,CommissionerCooperativeDavidSaccoSocietiesAuthorityCEOPeterGovernorofNairobiCountyAnneKananu,andCityCountyDirectorCooperativesDolphinAremo among other industry leaders. Through the establishment of SASRA, fraudsters and conmen who established pyramid schemes have been hindered from operating in the country GROWTH

“As we celebrate this 100th Ushirika Day, I applaud the success of the cooperative movement in Kenya and across the globe. I appreciate the impact that cooperatives have had in transforming lives,” said the President. The Head of State challenged societies to invest in Government infrastructure projects such as roads, a move that would make the country less reliant on foreign loans. Cooperative Alliance of Kenya (CAK) Chairman Macloud Malonza said globally, the movement has a membership of 1.2 billion savers, which is roughly 12 percent of world population, and a turnover of KSh271 billion (USD2.3 trillion). He added that Kenya had 26,000 registered cooperatives and 14 million members currently. The leading cooperatives in Kenya were agriculture-based with those in the coffee sector at the top with an asset base of KSh11.6 billion. Overall, the agricultureassociated SACCOs have benefited from different kinds of incentives from the government to better their business since 2013. Further, the government revamped the Kenya National Trading Cooperation (KNTC) through structural and leadership changes to position the sector and seal loopholes in the rice value chain. With a revolving fund of KSh660 million, the government stepped in to ensure farmers receive prompt payment upon delivery of rice to cooperatives. Initially, the government had a target of revitalizing the domestic production of rice from 112,800 metric tonnes in 2017 to 406,486 metric tonnes in 2022 to meet the national food and nutrition security needs. In the intervening period, KNTC issued contracts worth KSh2.5 billion to eight rice farmer cooperatives for the supply of 17,620MT of rice. During the fiscal year 2021/2022, KNTC received 12,975MT of rice valued at KSh1.8 million from contracted cooperatives. KNTC then supplied the rice for consumption to State institutions in the spirit of ‘Buy Kenya Build Kenya’. In western Kenya, Luanda Cotton Cooperative Ginnery in Busia was completed and it now awaits official commissioning to deploy modern ginning technology to add value to cotton and woo farmers to the crop production.

12 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed...

grown: membership from three million in 2014 to 5.5 million in 2021, the loan portfolio increased to KSh522 billion last year from KSh228 billion in 2014, as deposits surged to KSh474 billion in 2021 from KSh206 billion in 2014.

A task force has been overseeing the revitalization and reforms geared towards working on the old and obsolete cotton cooperative ginneries and building new ones.

“The Luanda Cotton Cooperative Ginnery in Busia can process about 30,000MT per annum, and other by-products such as cotton cake and soap. We also have other ginneries earmarked for modernization, noting the growing significance of the cotton industry in Kenya,” said the President. Cabinet Secretary Agriculture, Livestock, Fisheries, and Cooperatives Hon. Peter Munya said that the Sacco sector was vibrant and experiencing tremendous growth. Others who attended the national celebrations were National Assembly Committee of Trade, Industry and Cooperatives

The Chairman, staff, and members were elated with the national recognition and trooped to the SACCO exhibition stand for memorable photo opportunities with the silverware.

National Chairman, Mr. David Mategwa and General Manager-Operations and Strategy, Simon Tanui, receiving an award from H.E. President Uhuru Kenyatta during the 100th International Day of Co-operatives held on 2nd July 2022 at KICC Grounds We applaud the success of the MovementCooperativeinKenya and around the globe. Kenya would be lesser today, without the Cooperative Movement. Ushirika umetoa Kenya mbali,”

Mr. Mategwa credits the society’s star performance in the year under review to the spirit of teamwork exemplified by mutual collaboration among the Board, management, staff, members, and other stakeholders in the business. “I have inspired great change in the Sacco with the help of my entire team – board, management, and staff - and it is through this combined effort and everyone playing their role diligently that the SACCO has grown. The SACCO has recorded growth in asset base, membership, technology, improved governance and involvement in corporate social investment programs and much more,” Mr. Mategwa told Sacco Times Magazine in a past interview. With an asset portfolio of over KSh.44 billion and still growing, the SACCO is making strides in the financial sector

AUGUST - SEPTEMBER 2022 | SACCO TIMES 13Keeping you informed...

The SACCO, which primarily draws the bulk of its savers from the National Police Service was position two nationally in the listing of bestperforming SACCOs, an exercise adjudicated by the Cooperative Alliance of Kenya. Kenya National Police DT SACCO National Chairman, Mr. David Mategwa, received the trophy for the second position Best Managed SACCO Countrywide from President Uhuru Kenyatta during this year’s International Day of Cooperatives forum in Nairobi.

The President was the Chief Guest during the event held at the KICC grounds where Kenya joined the world in a toast to 100 years of Ushirika Day in a ceremony themed ‘Cooperatives Build a Better World’. For Kenya’s Cooperative Movement, Mr. Kenyatta said “We applaud the success of the Cooperative Movement in Kenya and around the globe. Kenya would be lesser today, without the Cooperative Movement. Ushirika umetoa Kenya mbali,” said the President, lauding the industry of all stakeholders in the sector in making the lives of Kenyans better.

What’s more, the Kenya National Police DT SACCO also won four other awards: 2nd position, Best in Credit Management Countrywide; first position, Best in Credit Management Countrywide (employer-based tier one); second position, Best Managed SACCO – Deposit Taking Tier 1; and third position, 3rd Position Best in Risk Management Countrywide (employerbased SACCO).

Agood run marked by strong results on savings as well as better financial and economic lives of her members has seen Kenya National Police Deposit Taking (DT) SACCO named the second best in the country, a coveted recognition in the vibrant cooperative industry.

H.E. PRESIDENT UHURU KENYATTA SUCCESS

Members, Investors’ Solid Gain Lifts Police SACCO to Second Best in Kenya

National Chairman Mr. David Mategwa alongside Members of Staff and SACCO Members display a Trophy awarded during the 100th Ushirika Day Celebrations at KICC.

The latest financial disclosures show that the society has empowered over 65,000 members through different services, and loan products, pushing its credit portfolio to more than KSh37

14 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed... SUCCESS

Earlier, Mr. Mategwa said the SACCO had a long and rewarding history dating back 1972 and the 50th anniversary would be a moment of reflection on their economic achievements in the last five decades and seek to project the institution’s path into the future. And from a seed membership of 690 nine years after Kenya’s independence, the Sacco has grown, booking KSh23.5 billion in deposits in the fiscal period ended December 2021.

Asbillion.part of prudent financial practices, the cooperative closely monitors the performance of their loan products to inform their strategic marketing decisions, innovation, and product improvement plans with a view to meet clientele needs and remain an edge over the competition. For instance, the entity’s Premier Loan product was the most sought out by members in 2021 with a total of KSh13.6 billion disbursed to thousands of borrowers. According to Sacco’s analysis, the second most in-demand credit offering was Mega Loan, which saw members take up KSh6.2 billion.

Cabinet Secretary Agriculture, Livestock, Fisheries and Cooperatives Hon. Peter Munya Hands Five trophies to Kenya National Police DT SACCO National Chairman Mr. David Mategwa, National Treasurer Amos Tingos, Directors Mr. Benjamin Talam, Mr. Andrew Koech, Secretary Supervisory Committee Mr. Eric Tumwet and CEO Mr. Solomon Atsiaya during the 100th Ushirika Day 2022 Night Gala Celebrations at the KICC. across Kenya, attracting millions of shillings in deposits and savings from a pool of more than 65,000 members. The SACCO aggressively recruits members to ensure continuity of the institution while growing their target impact community that includes individuals, families, groups, and savers from the business community. To further shore up savings, the SACCO has devised fresh strategies such as rewarding top savers with among others a trip to Thiland, for benchmarking sessions with the bestmanaged cooperatives in the world. In addition, the SACCO undertakes financial literacy training for members to sharpen their skills and knowledge on how to better manage their personal finances, and debt as well as how to make wise decisions on investment. The African Confederation of Cooperative Savings and Credit Associations (ACCOSCA) notes that financial literacy lacks in most developing economies affecting the growth of financial institutions and the empowerment of citizens. Already, plans are at an advanced stage in readiness for the society’s Golden Jubilee celebration, an occasion of reflection on the great milestones the institutions had made over the past 50 years even as the management tips stakeholders on the journey ahead.

Under steady management, the society has posted a rise in assets portfolio to KSh44 billion in 2021, up from KSh39.1 billion (2020), and nearly KSh25 billion in 2017. Last year, the Sacco’s total income was KSh7 billion an increase from the KSh6 billion recorded in 2020.

As part of stepping up their management, Kenya National DT Police SACCO received recertification under the ISO 9001: 2015 for the third time from the Kenya Bureau of Standards Quality Management Systems, an endorsement that would remain valid until 2024 when the institution would undergo a fresh internal and external audit. The ISO is a recognized global mark for quality management.

AUGUST - SEPTEMBER 2022 | SACCO TIMES 15Keeping you informed...

Additionally, the SACCO financed a block of classrooms and a fullyequipped computer laboratory at Utumishi Girls High School in Gilgil, Nakuru County. Across the country, a total of 117 students in secondary schools, and six universities are pursuing their careers courtesy of sponsorship from the Sacco and this is beside the business stepping forward to underwrite the education costs of bright but underprivileged students belonging to deceased members of the cooperative.

CSR As a responsible corporate citizen, the cooperative has initiated the setting up of community projects, including a state-of-the-art dispensary that was transferred for use to the General Service Unit Recce Company at Ruiru, and the Police SACCO Stadium at the Kenya Police DCI Academy in South C area Nairobi.

Going forward, the Kenya National Police DT SACCO remains one of the growing financial services institutions that are positively impacting lives in East Africa

SUCCESS

members and guests in the SACCO profile are Dr. Fred Matiang’i, the Cabinet Secretary of Interior and Coordination of National Government, and the Inspector General of Police, Mr. Hillary Mutyambai. In a past event, Dr Matiang’i urged the SACCO leadership to engage more proactively with the National Treasury, and consider channeling part of their investments in governmentbacked housing programs, a move that is billed to grow SACCO’s balance sheet significantly. Mr Mutyambai also acknowledged the significant and steady growth of Sacco, which has been evidenced by increasing dividend payments over the years.

Kenya National Police DT SACCO Staff and Members, join a procession during 100th Ushirika

“Already, we have issued plots and title deeds to members in different parts of the country that include Eldoret, Nakuru, Kiserian and Kamulu,” Mr. Mategwa told Sacco Times Magazine.

Kenya National DT Police SACCO is one of the shareholders in the Kenya Mortgage Refinance Company, an entity that offers Kenyans affordable housing and boasts of members who have invested in home loans.

Day Celebrations 100th Ushirika Day Celebrations 2022 National Awards 3 221 2 BestCountrywidemanaged Best in Risk Management Deposit Taking SACCOs Employer Based SACCO - Tier 1 Best in ManagementCreditCountrywide Best in Credit Management Deposit Taking SACCOsEmployer Based SACCO - Tier 1 Best Managed SACCO Deposit Taking SACCOs Employer Based SACCO - Tier 1

Other notable wins by the SACCO include ranking overall Winner of Excellence in Financial Reporting, FiRe, Awards 2021, SACCO Category, and also the Best in Compliance with the International Financial Reporting Standards (IFRS), underscoring the entity’s sound financial reporting

Insystems.afirst in the country, the Sacco also hosted a delegation from Malawi, United Civil Servants SACCO, which was in the country to benchmark and learn first-hand the best practices in managing cooperatives. And just recently, the fastest man in Africa over 100 meters distance, Mr. Ferdinand Omanyala, who is a police officer, joined the SACCO Othermembership.high-profile

Savings challenge: Unique money-saving ways that Kenyans use SAVINGS

“Unknown to my merry-go-round members, when it is my turn to receive the weekly contributions, I sometimes deposit the money with my SACCO to cover my monthly savings and also repay my loans,” she added. She, however, expressed that sometimes, a trader cannot remit the money daily but is allowed to catch up with the other traders before the weekends. With the prevailing hard economic times, Kenyans are now buying individuallytoinsteadamongrice,sugar,itemsshopsbulkconsumableshouseholdinfromwholesaleandsharingsuchasunga,cereals,andsoaps,themselvesoftroopingasupermarkettobuy commodities. “I cannot remember the last time I bought my foodstuffs from a supermarket. I always prefer the cheaper bulk purchases from a wholesale shop,” said Jane Wanjiku, a mother of two. When a person adopts a working saving culture, they are able to enjoy some form of financial freedom in their day-to-day life. Saving is one of the main lessons taught to members of SACCO to assist them to live a more fulfilling life free of debt and unnecessary financial baggage.

Owiti, who sells fish is a member of a merry-go-round of 15 traders, who save KSh100 every day. At the end of the week (five days), the accumulated amount is given to one trader to boost their business. “The KSh7,500 goes a long way in boosting our businesses, which are small but have high daily returns,” said Ms Owiti. Ms Owiti also revealed that she is a member of a SACCO and appreciates the growth of the cooperative movement that is now embracing ‘small savers’ like herself.

16 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed...

The savers love to put the coin in their home savings box because it is the highest coin in Kenya in terms of denomination, occupying less space and ‘feeling like not so much money’ at the end of a busy working day. Joyce Wanjiru, a businesswoman at Kangemi market, told Sacco Times that she always saves all the coins she carries home at the end of the day and does not leave the house with them the following morning. “I always take special notice when a customer gives me a KSh40 coin, and I make sure I do not give it back as change. I get home and save it, together with other coins that are part of my sales for that day,” said Ms. Wanjiru.

Kibe Mwangi, a matatu operator, also revealed that he always places the KSh40 coin in a different pocket from the others when a passenger pays fare using the unique-looking currency. “I have a mkebe in the house where I deposit the KSh40 as savings. I also try and save at least KSh250 in total every day, and at the end of the week deposit the money with my SACCO,” said Mr Kibe. He added that the savings come in handy when he needs loan from the SACCO, or is behind his loan repayments. Mr Kibe said that he tries to advise his fellow workers in matatu sector to lower their spending on entertainment or extravagant living and instead save their hard-earned Marthamoney.

By Safidah Njeri Did you know that most Kenyans, especially those in business always save the unique KSh40 coin famously referred to ‘Lucy’ because it bears the portrait of the third President of the Republic of Kenya, Mwai Kibaki?

AUGUST - SEPTEMBER 2022 | SACCO TIMES 17Keeping you informed...

Further, he added, Imarika Sacco embraced technology in operations at a time when rivals were using manual systems. They also managed to open numerous branches across the coastal market currently having completed the 8th one in Kengeleni, Mombasa.

“In 2013, we rebranded from Kilifi Teachers to Imarika Sacco and started Imarika Foundation in 2015 which is majorly funded by Imarika Sacco and focuses on five pillars: health, education, disaster and emergency relief, environmental conservation, and agribusiness. We believe all these initiatives have gone a long way in reducing the number of the unbanked and also make considerable positive impact on the community,” the chairman added.

The dream investment, which took over a decade to actualize, was solely financed by the Sacco savers. The members were inspired by the phenomenal growth in membership, a sign of purpose and willpower to grow. During the launch of the plaza, which coincided with the unveiling of the society’s 2022-2026 strategic plan, the chairman Mr. Renson Ndoro, appreciated the individuals that took part in the grand undertaking. “I want to particularly thank our members through the delegates who are their representatives for approving and financing the construction of the new Imarika Plaza that saw the groundbreaking ceremony take place in July 2017,” he said. “Special appreciation goes to my Board and the management of Imarika Sacco for having played an amazing role in making sure the entire project was a success.”

By George Otieno As part of growing its presence across Kenya’s Coast, Imarika Sacco has launched one of its landmark achievements – Imarika Plaza – an architectural masterpiece at the heart of Kilifi town.

The New Imarika Plaza in Kilifi Town. Strategically placed in the vibrant Central atheDistrictBusiness(CBD),investmentismilestoneinthe history of Imarika and thesector.cooperative

GROWTH

The ultramodern building has 10 floors, including two basement floors providing ample parking, a conference hall, a gym, and a mezzanine.

Strategically placed in the vibrant Central Business District (CBD), the investment is a milestone in the history of Imarika and the cooperative sector.

It signals renewed energy and motivation for the society to continue offering excellent services to its esteemed members and also reaffirms Imarika’s good financial health.

Iconic Plaza, Fresh Blueprint Signal New Era at Imarika Sacco

The Chief Executive Officer, Mr. George Yongo said, “The Sacco, being

The 2022-2026 strategic plan and the building are yet another indelible mark in society’s growth. The five-year growth plan sums up all aspirations, objectives, and implementation strategies in the pipeline and it will serve as a roadmap to achieving the society’s Whilegoals. reflecting on the cooperative’s 47-year history, Mr. Ndoro singled out the opening of the common bond in 1998 as one of the most defining moments.

Additionally, members are now able to get almost all services in the ultramodern banking hall thereby saving on time and other resources.

Mr. Ali Noor, the Permanent Secretary, State Department of Cooperatives, who was the chief guest during the launch said the new building together with the five-year strategic plan will guide Imarika Sacco’s path to greater heights. “I commend you for your robust growth and resilience over the years projecting a positive trajectory that should be emulated by others and congratulations for putting up this plaza and developing the strategic plan for the 2022-2026 period,” said Mr. Noor. He added that the review of the strategic plan will direct the society’s operations to enable it to remain on track and monitor its progress towards achieving its objectives. The blueprint is designed to ensure that the members gain in various socio-economic spheres and also focuses on growing membership and offering better services through the use of Mr.technology.Noorfurther revealed that the Imarika Chairman Mr. Renson Ndoro, PS State Department of Cooperatives Ali Noor Ismail (holding scissors), Imarika CEO Mr. George Yongo, Mr. Marube (CEO CAK) cut the tape during Imarika Plaza launch.

a service-oriented organization means that member service has always been our priority and an idea that resonates well with our brand promise. With a registered membership of over 140,000, the need for a conducive environment for the delivery of our services could not be overstated, hence Imarika Plaza.”

18 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed...

The society draws its membership from all sectors of the economy including the TSC, other civil servants, county governments, individual business owners, and formal and informal groups. Touching on the numerous challenges the society experienced during construction, Mr. Yongo stated, “The journey simply tells a story of resilience and persistence. It also reminds us of one of the special attributes of cooperatives; united for a common purpose. We take pride in the support and unity of our membership that enabled us put up the Plaza considering that this was achieved against a background of the onset of Covid-19.”

The CEO also urged all members of the public to take advantage of the improved service environment and continue patronizing the society’s products and services. He also called upon potential firms seeking to open offices to consider the Plaza; this will turn into a new revenue stream for the cooperative.

The economic environment keeps changing and the policy review must be in tandem with the changing times. We are cognizant of the fluid space the cooperatives are operating Together We Grow PS State Department of Cooperatives Ali Noor Ismail during the launch. Imarika Chairman Renson Ndoro makes his speech during the launch. CEO Imarika Sacco Mr. George Yongo gives his speech during the launch. Members of Imarika Sacco and other invited guests during the launch. in and we will therefore enhance regulation and supervision to ensure stability,” said the PS. According to the PS, cooperatives promote members’ social and economic welfare and are the easiest and most effective avenues to unlock more economic opportunities at the grassroots level. From less than 100 members in the early 1970s, the Sacco has grown to over 140,000 registered members with an asset base of KSh10.6 billion, and eight branches spread in Kilifi, Malindi, Mariakani, Mtwapa, Ukunda, Bamba, Garsen, and Mombasa Imarika Board of Directors (in Black Suits) and the invited Guests during the launch of their Plaza.

widespread use of modern technology as well as innovation is pushing service delivery to unprecedented levels in the history of the cooperative movement. He added that Imarika Sacco is among savings and credits cooperatives that want to improve the experience, fortunes, and lives of the members.

“The state department is committed to the formulation of all relevant policies that will grow the cooperative movement.

Keeping you informed...

GROWTH

AUGUST - SEPTEMBER 2022 | SACCO TIMES 19

20 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed... There’s no extra charge for paying with the card, it is a debit card. Your card can be used for: ATM Card GET YOUR CARD INSTANTLY & Enjoy round the clock access to yur SACCO WWW.IMARIKA.ORGCustomercare@imarika.orgAccount.info@imarika.orgimarikasacco 0726 00 7037 @imarikasacco SACCO CONTACT US TODAY Hospital Bills Travel & Hotels Other Services Cash FuelShoppingWithdrawal

SUCCESS

Community-Based Waumini Sacco Bags Five Awards

Currently, Waumini Sacco boasts of a membership of over 37,000 members spread across the country, evidence of the immense confidence the community has in the financial institution.

Keeping you informed... The church-affiliated Sacco has demonstrated an edge over its peers in governance, efficiency, savings, credit, and risk management, scooping five national awards. Waumini Savings and Credit Cooperative Society was awarded during the 100th Ushirika Day 2022 gala event organized in honour of the Cooperative Movement in Kenya at the KICC, Nairobi.

AUGUST - SEPTEMBER 2022 | SACCO TIMES 21

The Catholic Church-led Sacco was crowned the Best Managed Deposit Taking (DT) Sacco, the Most Efficient DT Sacco, position two in Savings, second Best DT Sacco in Credit Management, and position three in Risk Management among the Community Based DT Saccos in Kenya.

stated Hon. Munya. Excellence in governance drove the 42-year-old Sacco to top position as the Best Managed DT Sacco, instilling confidence in the members that the management and board are on the right track in managing their deposits, and savings. The heartbeat of any Sacco is the members, and Waumini Sacco draws her membership from individuals, corporate institutions, Catholic Church faithful, organized Catholic Church groups, and past employees of Catholic institutions “Mzalendo.”

The Cabinet Secretary Agriculture, Livestock, Fisheries and Cooperatives, Hon. Peter Munya presented the awards to the Sacco Directors and managers during the event. Hon. Munya addressing the shareholders present during the gala event, underscored the improved performance of Saccos in the country and urged as many societies as possible to join the award scheme to gauge how they rank and improve on their shortcomings. “Cooperatives are doing a great job growing wealth for the members and the country. I congratulate those who came up with this award scheme that rewards those who do well and helps identify gaps among those who do not do well, because they will improve. Every competition is useful not only to the winner but also to those who do not win because they will know where they can put more effort and improve,”

Waumini Sacco Chairman, Dr. Headmound Okari, Treasurer George Muriithi, Hon. Sec Bibiana Shisanya, Board Member, Peter Nginya and Management Staff during the 100th Ushirika day Celebrations at the KICC.

@imarikasaccoAccount.card,

service

BOSA self-guaranteed loans, FOSA mobile loan, FOSA salary advance, FOSA loan, and also runs a Junior Account, Pamoja Group Account, and Prime Account among other BOSA and FOSA Services.

DevelopmentLoan AdvanceSalaryFOSALoan EmergencyLoan School MjengoLoanFeesLoan MazaoLoan

A future to believe in... Visit us at Applewood Adams on Ngong

Waumini Sacco attributes its success and of to the Sacco’s leadership, staff,

years

22 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed...

The Sacco has expanded its FOSA services to include four FOSA banking halls located at Westlands, Nakuru, Kisii, and Applewood Adams, and three liaison offices in Ongata Rongai, Mombasa and Meru. The Sacco also offers BOSA loan restructuring, BOSA emergency loan, Waumini Sacco Staff display Winning Award Trophies. www.wauminisacco.com Road,

Nairobi, 2nd Floor, or any of our branches Tel: 0709052000, 0728606059, 0734666226

visionary

dedicated

Savers have over the years enjoyed the financial services and loan products offered by Waumini Sacco, empowering institutions, individuals, and groups both socially and economically to improve their lives, and invest. To improve on its efficiency, which earned the Sacco position one as the Most Efficient, Waumini Sacco introduced the Front Office Service Activity (FOSA) in 2009, which Waumini Sacco Chairman, Dr. Headmound Okari Isoe. responded to the growing banking needs of the members.

and committed membership SUCCESS

The ability to repay for business entities seeking loans is mainly measured in terms of consistency in the enterprise’ cash flows and the profits generated in a trading period. Rarely do many lenders dig deep to understand the character of the borrower, which forms the engine of the individual behaviour in times of affluence or when the business is in turbulence. Character is critical in learning of one’s past and projecting the likely future trajectory of the lender vs borrower relationship. In an ideal credit market, debt can be good or bad. Some of the major causes of bad debt include diversion of funds or debt purpose due to asymmetry of information between the borrower and the lender, under-financing or overfinancing, wrong loan/debt structuring, and as the economy has shown lately, the risk of a pandemic. Traditionally and for decades, savings and credit cooperative societies are known as the trailblazers of guarantorship or co-guarantee system among members. Savers provide loan guarantees using fellow members’ deposits. This mechanism has a social aspect that calls for deep trust among the guarantors, giving rise to strong bond amongst ‘team of guarantors’’ who understand and know each other, their economic

AUGUST - SEPTEMBER 2022 | SACCO TIMES 23Keeping you informed... LOAN GUARANTORS

Hits and Misses: The Dilemma of Being Loan Guarantors in Saccos

By Safidah Njeri Is my money safe? Am I adequately secured as a Sacco member? These are some of the biggest questions that always linger in the minds of any moneylender when completing or initiating a loan deal whether formal or informal. Further, the adequacy of the collateral pledged is a critical consideration by moneylenders when assessing and determining the risk profile of a said borrower. For many institutions, however, the ability to service the loan is the priority in one’s loan appraisal as opposed to the collateral pledged.

LOAN GUARANTORS activities, or professions regardless of social status. This is akin to a strong Know Your Customer (KYC) policy espoused by top tier financial institutions when on-boarding customers and offers added advantage to the financial institution when lending. We can perhaps refer to it asKnow Your Guarantor – in the cooperative movement. Unfortunately, among Sacco members, the guarantor’s policy is turning out to be the industry’s pain point. To some industry observers, all seems to be working well, and argue, a Sacco without guarantors’ mechanism ceases to be a society because the tradition and the spirit of cooperatives are based on guarantorship. However, human beings are socialized differently, a factor that cannot be ruled out where rogue borrowers get money without the intention of repaying. This poses a huge risk to the lender, and the default consequence is to load the responsibility of recovering defaulted loans on the guarantors, who are left with little option other than forfeiting their deposits. This industry problem is evolving into the biggest reason why opting for guarantors is becoming less popular among Sacco members. The savings multiplier theory may again continue to expose societies to higher risks since the guarantee on the table isn’t determined properly. For instance, the probability of members borrowing more than what they have saved is significant, many times almost always. Quite often, the guarantor is also a borrower in the same institution, placing an enormous financial burden on their ability to repay the debt. To go around this challenge, societies are rebranding their business models and also turning innovative in new loan products that considerably lower the risk of high loan provisioning, which if left unchecked, can wipe out hardearned Sacco profits. Other financial institutions use loan products that have hybrid packaging in security, including a portion of a borrower’s household items, and business stock, besides guarantors’ shares. Such a hybrid system helps reduce the guarantor’s burden in case of loan default. With robust growth in Kenya’s Sacco sector, the need to move with speed in slaying the dragon that is guarantors’ conundrum begs urgent attention. Some of the deposit-taking Saccos have established the SME model of lending where members are required to provide tangible collateral such as logbooks, share certificates, title deeds, or lease certificates to secure loans.

A critical item of consideration for all Saccos should be a total concentration and investment in member education to minimize the loss of guarantors’ funds through defaulted loans. On the other hand, just like tangible collateral pledged, the guarantors must be well informed in writing that the savings pledged to form an equivalent portion to the borrower loan, and the liability decrease as the loan is repaid. This will also reduce conflict between members which can be detrimental to the longevity and sustainability of Saccos’ growth

However, the question remains: How many can afford or own such Acollaterals?third-party guarantee, in this case, comes into play where a nonSacco member can guarantee a borrower with his or her collateral to secure loans easily. The collateral-based lending attracts a high cost of borrowing compared to the traditional Sacco model of savings multiplier but rather a safer way for Saccos to lend and protect their member funds.

24 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed...

A member, potential or current, can access different services on the Sacco’s website and eliminate the need to visit a banking hall.

Mentor Sacco remains a leading financial institution, and one to watch as the cooperative movement in Kenya continues to expand in asset base and membership.

Aset of wise management practices on their risk portfolio has seen Mentor Sacco Society Limited earn top honours in this vital aspect for the success of a business during this year’s Ushirika Day celebrations.

Theinstitutions.Saccohas more than 35,000 members and operates under the mission ‘to mobilize savings and credit to our members by offering quality products and services at a competitive rate to enhance their economic and social growth’.

Mentor Sacco Wins Top Awards on Sound Risk Management Practices

Under the Chief Executive Officer Joyce Ndegwa and Chairman of the Board Anthony Kamau, the cooperative provides different loan products at competitive rates to socially and economically empower members and assist them to reach their life goals. Following the adoption of technology across many companies and organisations, Mentor Sacco has also

AUGUST - SEPTEMBER 2022 | SACCO TIMES 25Keeping you informed... SUCCESS

Mentor Sacco Chief Executive Officer (CEO) Joyce Ndegwa Mentor Sacco Chairman Antony Kamau embraced new, efficient and effective ways of doing banking operations.

The exemplary performance by the Sacco also shows their resilience during the Covid-19 pandemic period, which exposed institutions to different kinds of risk.

The employer-based Sacco came position one as the Best in Risk Management Countrywide and also position one as the Best in Risk Management Deposit Taking Sacco category, meaning the management has minimised the losses and maximized the returns to members. Cooperative Societies attract different types of risks to their operations that include operational risks, credit risks, and technological risks/threats among others that when ill-managed can be detrimental to the going concern of the business. Members of Mentor Sacco are consequently the beneficiaries of this recognition because sound risk management elevates their financial institution in terms of business growth, maintaining high liquidity that minimizes external borrowing, and managing technological risks and external threats such as cyber-attacks. Mentor Sacco was established in 1977 and later opened their common bond and now attracts members from the civil service, local authorities, private companies, disciplined forces, NGOs, national and county governments, groups/chamas, entrepreneurs, and other

Owing to the teamwork spirit and visionary leadership at the Sacco, the institution’s asset base surpassed KSh10.31 Billion in 2021, which was a 17 percent increase from the KSh8.91 Billion reported in the year 2020. FACT BOX Members of Mentor Sacco enjoy the Quickfix mobile loans whose amount was increased to KSh60,000 with a six months repayment period.

The statement on the Board of Directors’ responsibilities also detailed that the Sacco’s cash flow forecast was adequate for operations in the year, creating room for a dividend pay-out for members, and the projection for the dividend payment of KSh860.22 Million. Another key highlight of Mentor Sacco was their ability to have zero external borrowing for two years, and still adequately serve members and achieve the goals and mission of the Sacco. The Sacco is also fully compliant with the regulations of the Sacco Societies Regulatory Authority (SASRA) evidence of prudent financial management and sound operational practices.

It has a growing membership of more than 20,000 that include TSC employees, civil servants, groups, businesses, and salaried persons. The Sacco is headquartered at Mentor Complex in Muranga town and has branches in Kenol town, Kiria-ini town, Ithanga, Kangari, Ngara in Nairobi, and Thika town

Members of Mentor Sacco are also enjoying the Quickfix mobile loans whose amount was increased to KSh60,000 with a six months repayment period, one of the strategies by the Sacco to beat the impact of the Covid-19 pandemic on members’ economic lives.

These continued wins by the Sacco had the Mentor Sacco Chief Executive Officer Joyce Ndegwa project the Sacco’s total income to hit KSh1.51 Billion against the KSh1.77 Billion provisional budget of 2023. She added that the projection would leave the Sacco with an opening balance of KSh948.1 Million in January 2023, marking a promising start of the year for the institution.

26 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed... SUCCESS

Commissioner of Cooperatives Development, Mr. David Obonyo Hands the Winning Trophy to Mentor Sacco

It was a moment of broad smiles, and nodding with satisfaction for members of Invest and Grow (IG) Sacco when the society lifted three awards during this year’s Ushirika Day celebrations. The Sacco staff, members and management worked hard throughout the COVID-19 pandemic period and reported growth in savings, deposits and loans despite the economic times. Their resilience did not go to waste as the society emerged an edge over her peers, winning three awards during the Kakamega County Ushirika Day 2022 celebrations.

The Sacco is tech-savvy and uses the Pesa Pepe platform to facilitate the disbursement of loans to members. It has also embraced the use of ATMs, and captures member details using the biometric capturing tools that enhance security. Over the years, IG Sacco invested heavily in Kakamega town by among other initiatives purchasing IG Plaza, property worth over KSh140 million from Mwalimu Centre Investment Cooperative Society Limited. IG Sacco has more than 25,000 members’ where the majority are teachers. It, however, seeks members from other segments of the society including SMEs, county government employees as well as individuals. The Sacco plans to continue this strong performance through a new strategic plan starting next year that captures the latest business, market and digital trends. The current FiveYear Strategic Plan ends this year. The Sacco is honoured as one of the leading financial providers in Western Kenya that has been recognised for excellent performance in different categories of business

AUGUST - SEPTEMBER 2022 | SACCO TIMES 27Keeping you informed...

Some of the core areas of operations in which the Sacco stood out were: Best Managed Overall Cooperative, Best Highest Cooperative in Returns on Deposits and First Runners-Up in Education and Training Category. The awards underscored the society’s excellence in governance, an element that drove it to emerge the Best Managed Overall Cooperative. Equally, the accolade is an expression of trust in the lender by the members that saw it scoop the Best Highest Cooperative in Returns on Deposits award. The recognition on education resulted from the Sacco’s deliberate effort of holding investment and savings and education training programmes that target 32 divisions across Vihiga, Kakamega and other nearby counties. In addition to in-person engagements, the Sacco undertakes virtual lessons on how to grow savings and investment to reach those working and living in the diaspora. The Sacco received the awards during the 100th celebrations held at the historic Bukhungu Stadium in Kakamega, and attended by tens of Saccos from across the county. The awards added to the winning streak of the cooperative, which reported a 12 percent growth in its asset base to KSh11.7 billion in the period ended December 2021. In the same period, the Sacco’s income increased by 18 percent to KSh1.7 billion from KSh1.4 billion in the year 2020 and its loan portfolio increased by 9 percent as members borrowed KSh6.4 billion. The Sacco boasted of increased revenue streams on account of a diverse shelf of products that attracted thousands of members. For instance, the Akiba subscribers rose to 17,475 in 2021 compared to 16,547 in the previous year besides running 15,357 FOSA earners in 2021 compared to 15,143 two years ago.

Chief Guest Racheal Jaluha Okumu of the Public Service & Administration, Kakamega County, Presents a Trophy and Certificate to the Chairman Invest and Grow Sacco Kennedy Keya.

The cooperative’s 433 Holiday Savers grew their reserves to KSh2.5 million even as 414 Nyota Ndogo account holders mobilised KSh2.2 million worth in savings. In addition, the Sacco reported growth in their fixed deposit reserves and income from the real estate investments.

PERFORMANCE IG Sacco Shines Brightest in Three Fronts: Management, Returns and Education

A Display of the Trophies Invest and Grow Sacco Won on Ushirika Day 2022 in Kakamega County.

28 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed...@IGSACCOSOCIETY www.igsaccoltd.co.ke @IGSACCO

The Sacco follows the best practices in the financial sector to make sure that the members’ deposits are properly managed. In line with the cooperative principle’s concern for the community, the cooperative reaches out to the community and gives back through

Withmanagement.anasset base of more than KSh3 billion, the Sacco was also ranked position three as the Best Managed Deposit-Taking Sacco under the Agricultural Based category in the country. This entails good governance practices which have been embraced by the Sacco board and the management in its operations. The Sacco was feted during Ushirika Day 2022 in an event marking 100 years since the conception of the global fete and attracted investors from the cooperative movement including officials from Saccos and the government. Ndege Chai Sacco was registered in 1978 by 23 employees of James Finlays (K) Ltd with a share capital of KSh12,000. The SACCO is operating under an open membership bond of association, covering members of the public and the corporate business community, so long as they meet the requirements as set out in the By-Laws of the SACCO.The SACCO is licensed and regulated by SASRA (Sacco Societies Regulatory Authority). Our SACCO is among the first deposit taking SACCOs to have been licensed by SASRA in 2011, and every year since then our license has been renewed. This gives us confidence as a good corporate citizen. Importantly, we are transforming the lives of our members and the community at large. Since then, it has grown exponentially primarily drawing members from the parent company, and also other sectors of the economy such as flower farms, tea factories, schools, churches, hotels, supermarkets, hospitals, NGOs, and the business community. Through this growing loyalty of Sacco members, the institution has grown to have touch points in Kericho, Silibwet, Kiptagich, Olenguruone, Monieri, Kipkoibet, Londiani, Lemotit, Sotik Highlands, Kipkoibet, Chebang’ang, Naivasha, Tindiret, Litein and Siongiroi.

Ndege Chai: A Trailblazer among DT Agriculture - based Saccos

The Sacco was crowned the Best in Risk Management Deposit Taking Sacco in the Agricultural Based Category to the excitement of members since the award signifies their hardearned revenue and investments are in safe custody. Further, Ndege Chai was ranked third countrywide under the same criteria of Best in

Ndege Chai Sacco was registered in 1978 by 23 employees of James Finlays (K) Ltd with a share capital of KSh12,000. Currently the Sacco has over 63,000 active members spread in diverse sectors of the economy.

PACE-SETTER Ndege Chai Sacco Chairman Mr. Daniel Sang. Ndege Chai Sacco CEO, Mr. Gilbert Bett.

thethemadetheincludinganddepositsmembers’transactingriskmitigatingkeennessforManagementRisktheirinwhensavings,decisionsaboutrisksinbusiness’

AUGUST - SEPTEMBER 2022 | SACCO TIMES 29Keeping you informed...

Ndege Chai Savings and Credit Society (SACCO) has stood out among the agriculturalbased societies in Kenya as a fastgrowing deposit-taking unit that has caught the country’s attention after winning different awards.

Ndege Chai has partnered with Dairy Co-operative Societies (Ruskebei Dairy, Siongiroi Dairy among others) to financially empower the Dairy value chain. As the country enters the final PACE-SETTER

A Display of the Trophies Ndege Chai Sacco Won during the 2022 National Ushirika Day Celebrations.

w The various savings products help you save and invest wisely.

30 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed...

w As a members you will be able to use your account to make deposits and to channel salaries from your employer and other payments from businesses, farming, etc.

w We are licensed and regulated as a Deposit-Taking Sacco by SASRA.

w Joining us enables you to enjoy various loan products thereby growing financially in leaps and bounds.

w We are among the best performing DT-SACCOs in Kenya.

w We have embraced the latest efficient technology in most of our transactions so as to meet and exceed our members/customers needs. years of the Vision 2030 economic blueprint, Saccos will play a critical role in transforming the country’s economy and empowering millions of Kenyans who are active members of cooperative societies The Board of Directors and Supervisory Committee Members.

w As a member of Ndege Chai Sacco, you will get financial literacy training and information during Members’ Education sessions.

Secondary School scholarships, environmental conservation and donations to underpriviledged Children’s Homes in need and also engages college and university students by offering opportunities for industrial attachments and internships. President Uhuru Kenyatta, who was the Chief Guest during the Ushirika Day 2022 celebrations spoke extensively and passionately about the agriculturebased cooperatives in the country. He particularly noted the positive and continued growth of dairy cooperatives, the deliberate effort to uplift the rice cooperatives, and also the revival of the cotton cooperatives.

w The same account will facilitate you to get a loan from BOSA Deposits.

Best in Risk CountrywideManagement Best Managed Sacco Deposit AgriculturalTakingBased Best in Risk Saccos-DepositManagementTakingAgriculturalBased NATIONAL AWARDS 2022 Joining NDEGE CHAI SACCO is the best choice you have made so far. By joining us, you immediately get access to these and many other benefits.

The society closed the trading period ended December 2021 with an asset base of KSh2.1 billion, a 20.5 percent increase from 2020 when it reported KSh1.75 billion. Amidst the economic fallout triggered by Covid-19 pandemic, the Sacco was able to navigate through the tough business times and boosted its performance by engaging its members in education and financial literacy forums, reviewing its products and services, developing new products to align itself with changing needs of the members and market.

32 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed...

Diocese of Mount Kenya South (DIMKES) Deposit Taking Sacco Limited bagged three prestigious awards during the recently held International Day of Cooperatives 2022 celebrations. The three awards were both at the county and national level, and comes at a time when the society is rolling out a five-year transformation journey that started in 2020 under the new ambitious plan driven mostly by the adoption of technology and enhancement SME banking in its catchment area. Dimkes emerged in position two nationally as the Most Improved Deposit Taking Sacco under Community Based Saccos category. In addition, it was rated third, Best in Savings Deposit Taking Sacco nationally and position one, Most Improved Sacco across Kiambu County.

Commissioner of Cooperatives Development, Mr. David Obonyo (extreme left) hands the winning Trophies to Dimkes Supervisory Committee Chairlady Ms. Jane Njeri Ngaita (3rd right), and CEO Benson M. Maina (2nd right) during the Ushirika Night Gala.

DIMKES’ Three Awards Cements

The Sacco was also able to engage in Covid-19 vaccination drives in Kiambaa, Banana, and Gachie areas in partnership with the County Government of Kiambu, the ACK Diocese of Mt Kenya South and AMICTUS Ltd, as a key business partner. “We dedicate the victory and the awards to all our members, who have remained loyal and trusted us as their faithful financial partner even during tough times. Even when their disposable income reduced, they sacrificed to save with us, and a majority remained consistent in loan repayments too. We always promise to serve our members with dignity, which in return guarantees us growth and a profitable future,” said the CEO, Mr. Benson Maina. The Sacco, which was formed by women in the Anglican Church, Diocese of Mt Kenya South in 1999, opened its common bond 11 years after its formation. It was also licensed by SASRA in 2010. Over the years, the cooperative has extended its financial services in Kiambu, Nairobi, and Kajiado counties, serving over 30,000 members in 13 FOSA branches.

Sacco’s Lead in the Sector EXCELLENCE

Keeping you informed... EXCELLENCE Cabinet Secretary Agriculture, Livestock, Fisheries and Cooperatives Hon. Peter Munya (2nd left) Hands the Winning Trophy to Dimkes Supervisory Committee Chairlady Ms. Jane Njeri Ngaita (Left), and CEO Benson M. Maina (Extreme Right) During the Ushirika Night Gala.

“I am excited that we have shown resilience amidst the Covid-19 pandemic and the hard economic times. These effects did not deter us, and we did not give up on our course of holistically transforming the lives of our members and remaining committed to be a faithful financial partner with a lasting impact in the community,” said Mrs. Gikonyo. She acknowledged the success of the Sacco to the spirited effort of the staff, board of directors and members. “I thank the Almighty God who has enabled us to achieve this great milestone. We also owe our victory to our members who have been loyal to the society, the directors and staff for exemplifying team work in their work and in the discharge of their duties.

Dimkes DT Sacco can now advance upto 4 times of the BOSA loans.

Chairperson DIMKES DT Sacco Caroline W. Gikonyo was optimistic the three awards won by the Sacco on Ushirika Day 2022 had rejuvenated the team. The awards, she believed, were a sure sign that one day the Sacco would achieve its goal of becoming a World Class Deposit Taking Sacco anchored on Christian values. “I have no doubt that these awards have rejuvenated the team to work hard so we can ultimately achieve our goal of becoming a World Class Deposit Taking Sacco anchored on Christian values,” said Mrs Gikonyo.

She noted the unique period the Sacco was working through, noting that the world was engulfed by the Covid-19 pandemic that led to tough economic times and currently overstretched by the ongoing Russia-Ukraine war.

DIMKES Sacco has 13 branches spread across three sub-counties; Kiambu, Kajiado and Nairobi I am optimistic we will achieve these objectives and realise membership growth, improve operation excellence and mostly increasereturns.shareholder

The Chairperson added that the Sacco continues to work on the Five-Year Strategic Plan, 2021-2025, structured on five pillars: Membership objectives, Financial objectives, Digital objectives, Service Delivery objectives, and People objectives. “I am optimistic we will achieve these objectives and realise membership growth, improve operation excellence and mostly increase shareholder returns,” she said.

CHAIRLADY CAROLINE GIKONYO

AUGUST - SEPTEMBER 2022 | SACCO TIMES 33

Dimkes DT Sacco Chairlady Caroline Gikonyo In its unique mode of operations, the Sacco has managed to meet the one third gender rule in its board composition where two thirds of the directors are women steering the Sacco into new realms of growth. Out of good governance and management, the Sacco is in good standing with the industry watchdog, SASRA. Adoption of technology tops the list of the Sacco’s priorities in improving efficiency and deepening financial inclusion. Notably, the Sacco has received approval from the regulator to pilot the Agency Banking platform whose tagline is Tupo Ulipo. The platform seeks to grow the deposits and liquidity through deliberate outreach to the unbanked and its members in the grassroots. In a bid to build its capacity in SME lending, the Sacco has partnered with WOCCU and KUSCCO on Technology in Financial Inclusion for SMEs (TIFI) through the adoption of credit scoring tools in their loan administration and management.

The Sacco has different tailor-made products for their members that include the recently developed Landlord loan for the landlords, secured by the deed of rental assignment, Rent advance, which is a short term facilty for three months, Mkulima loan, Chama loan with a maximum of 20 million, Education loan, Development loan, Asset Finance loan, Medical loan among others.

Universal Traders Outshines Peers on Best Use of Technology, Credit Management

34 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed... SACCOS’ SCORE-CARD

Universal Traders Sacco (UTS) is quickly taking the lead position on the national stage if her three awards won during Ushirika Day 2022 fete held in Nairobi, are anything to go by. The Community Based Sacco was position one, Best in Credit Management among Deposit Taking (DT) Saccos, ranked second in two categories; Best in Capitalization DT Saccos and Best in Technology Optimization among DT Saccos. In a sea of over 300 societies in Machakos County, UTS also emerged as the second Best Managed Sacco in the region to the excitement of staff and members, who have invested billions in the institution. The Sacco received the award during this year’s celebrations of the International Day of Cooperatives recognizing their role in governance and best management practices in running societies. Currently, the institution is supporting over 60,000 members to grow economically, socially, and culturally through financing via loans and training on budgeting and best investment practices that optimize one’s returns. In the period ended December 2021, the Sacco reported 7.7 percent growth in total assets, closing the fiscal year at KSh1.4 billion up from KSh1.3 billion in 2020. In the trading period, the share capital increased by 18.3 percent to KSh210 million from KSh177.8 million. Member deposits also went up to KSh786 million from KSh743 million, and the turnover jumped by 5.8 percent to KSh231 million from KSh220 million in the previous year. Following the strong performance, members enjoyed dividends at the rate of five percent on their share capital.

Business Development Manager (Peter Kiamba) Finance Manager (George Muendo) Receive Trophy.

Machakos County Deputy Governor Eng. Francis Maliti, who attended the Ushirika Day celebrations, spoke admirably about the vibrant cooperative movement in the region, noting that it continues to transform

UTS Sacco Staff received an Award During Ushirika Day Celebrations in Machakos County UTS Sacco Staff Join a Procession to Celebrate Ushirika Day at Kenyatta Stadium Machakos County.

Position 1 Best in Credit Management Deposit Taking Sacco- Community Based 2022

AUGUST - SEPTEMBER 2022 | SACCO TIMES 35Keeping you informed... SACCOS’ SCORE-CARD

UTS Staff in attendance at Machakos County, as Corporatives marked 100yrs of existence at Kenyatta Studium.

The aim of the day is to increase awareness of cooperatives and promote the movement’s ideas of international solidarity, economic efficiency, equality and world peace. This year’s theme Cooperatives Build a Better World is in line with the Sustainable Development Goals (SDGs) that focus on poverty eradication, and economic growth

Position 2 Best in Capitalization Deposit Taking Sacco Community Based 2022 Position 3 Best in Technology Optimization Deposit Taking Sacco Community Based 2022 132 millions of lives. He said the county was proud of the growth the sector was making in the region with a turnover of KSh2 billion, 306 registered societies, serving a membership of 270,000, and a share capital and asset base of more than KSh13.5 billion. “The County Government holds the cooperative movement as a key partner that runs on an appropriate model to implement and achieve its development agenda whose major objectives are to eradicate poverty, create wealth and employment opportunities, consequently improving on the living standards of the people,” said Mr Maliti. He added that the devolved government continues to facilitate the provision of extension and capacity support in training on value addition, promotion of savings mobilization, and credit offerings to savers. “We look to the future with confidence and anticipate that the cooperative sector will grow from strength to strength and attain even greater levels of success. Let us keep this spirit of the Cooperative Movement alive,” he UTSsaid. is led by Chairman Mr. Fredrick Ngumbi and CEO Mr Dominic Mutunga. International Co-operative Day is celebrated by cooperatives worldwide since 1923, and was officially proclaimed by the United Nations General Assembly in 1995.

. UTS Sacco is celebrating Ushirika Day inspired by the corporate values of self-help, self-responsibility, democracy, equality, solidarity and ethical values of honesty, openness, social responsibility, and caring for others in building a better world

36 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed... 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 EMBU BRANCH: P.O. BOX 2681-60100, JASHO BUILDING, TEL: 0721 423 687 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 UNIVERSAL TRADERS SACCO LTD The leading Sacco in Kenya providing quality financial services to all ts members ACCOUNTCURRENTCORPORATEM-SACCO Dail *346# (Registration is Free) SACCO LINK DEBIT CARD *346# PAYBILL NO: 503500

Mr. Richard Mathenge, Deputy CEO with Clement Munene Finance Manager Display a Trophy Awarded During 100th Ushirika Day Celebrations. A Section of Taifa Sacco Members Present During 100th Ushirika Day Celebrations in Nyeri.

AUGUST - SEPTEMBER 2022 | SACCO TIMES 37Keeping you informed...

Taifa Sacco Sets the Trend in Nyeri County PROGRESS

More than two years after the COVID-19 pandemic hit global headlines, Taifa Sacco has shown resilience in the sector and won a prestigious award in Nyeri County. Headquartered in Nyeri, the Sacco was awarded for coming position two in the category of cooperatives with the Highest Interest Rate on deposits in the region. The award answers to the tremendous benefits members with savings in the Sacco enjoyed on interests on deposit, also referred to as rebates. In the trading period that ended in December 2021, the members received a dividend rate of KSh7 per ordinary share and a 7 percent interest on unwithdrawable deposits. The financial records also show a 10 percent growth in Sacco’s asset base to KSh4 billion last year from KSh3.6 billion in 2020. Further, the fromKSh509inpercentregisteredcooperativean11growthnetrevenuetomillionKSh455 million in 2020.

The member deposits rose by 13 percent to KSh3.1 billion up from KSh2.7 billion in 2020.

The national event went down at the KICC in Nairobi with President Uhuru Kenyatta as the Chief Guest and was followed by a night gala where winning Saccos received their trophies from Cabinet Secretary Agriculture, Livestock, Fisheries, and Cooperative, Mr. Peter Munya, and other industry leaders.

In a past event, the Sacco Chairman, Mr. James Gathiru said the business achieved 90 percent of the projected growth targets in all critical areas in 2021 including the opening of new accounts, savings, shares, deposits, and turnover. The Sacco received the ‘Highest Interest Rate on Deposit Award’ during the county event held in Nyeri on July 2, 2022. The celebrations were part of hundreds of other such fetes held across the country and the world to celebrate the 100th International Day of Cooperatives.

Keeping you informed...38 AUGUST - SEPTEMBER 2022 | SACCO TIMES PROGRESS

Part of Taifa Sacco fleet Participating in Sensitization Drive During ICA Day - Ushirika Day

Taifa Sacco has a huge Welfare Fund with more than KSh30 million disbursed to the bereaved families of savers, ensuring that even in death, their kins are well taken care of.

Taifa Sacco has housed short-term credit facility offerings for business, milk, tea picking, coffee picking, LPO/ LSO, and salary.

The long-term credit facilities are Asset Finance, Business Loan, LPO/LSO Loan, Development Loan, Production Loan, Chama Loan, Capital Loan, Premium Loan, Micro-Credit Loan, Mama Malaika Loan, Vijana Tujiinue Loan, and Business Overdraft. The Sacco plans to grow her loan portfolio to more than KSh5 billion by 2024 Some of the Taifa Sacco Staff Members Present During 100th Ushirika Day Celebrations.

Taifa Sacco has networkelaborateanof 18 branches spread across the country in andNakuru,Laikipia,Nyandarua,Nyeri,Nairobi counties. The Sacco intends andtheCountiesandKirinyagabranchesphysicalestablishtoinMurang’ainshorttermother areas in the next strategic plan. In addition to increasing her branches, the Sacco has invested in Information Communication Technology (ICT) which includes ATMs, Mobile Banking, and Agency Banking services that have a reach locally and abroad for efficient service delivery. Members can also conveniently use Lipa-Na-M-Pesa, Till Number, Paybill Number, use Bulk Payment, and honour internet,aspaymentsutilitysuchelectricity,and water bills. At a Taifa Sacco Agent, a inquiryandfundspayment,schoolwithdrawals,deposits,cashstatement,fulltheirenjoyscustomergettingminiandaccountcashfeestransfer,balance services. To shore up revenue, the society has diversified income streams to include the Taifa Bima Insurance Agency which facilitates the provision of loans to members using tangible securities, vetted before the disbursement of loans. The insurance agency also ensures the security of the Sacco assets and loans, reducing risk and cushioning against default.

AUGUST - SEPTEMBER 2022 | SACCO TIMES 39 AWARDS 13| SACCO TIMES Short-Term Credit • Business short term credit • Milk short term credit • Tea Picking short term credit • Coffee Picking short term credit • LPO/LSO short term credit Long Term Facilities:Credit • Asset Finance • Business Loan • LPO/LSO Loan • Development Loan • Production Loan • Micro credit Loan • Vijana tujiinue Loan • Business Overdraft TAIFA SACCO CREDIT TAIFASERVICESSACCO Your Sacco for all seasons! • LPO/LSO Loan Tel:Email:0731550650/0724635463info@taifasacco.coop Cash Deposits Cash MiniBalanceWithdrawalsEnquiryStatement Full FundsSchoolStatementFeesPaymenttransfer FOR ENQUIRY CALL CUSTOMER CARE ON: 0731 550 650 Short-Term Credit • Business short term credit • Salary short term credit • Milk short term credit • Tea Picking short term credit • Coffee Picking short term credit • LPO/LSO short term credit • Asset Finance • Business Loan • LPO/LSO Loan • Development Loan • Production Loan • Micro credit Loan • Capital Loan • Chama Loan • Premium Loan • Mama Malaika Loan • Vijana tujiinue Loan • Business Overdraft

• The amount of time an employee spends locating records, scanning them, sorting and exporting images or text, and returning the document to its correct location.

1. You save time and money.

Digitizing records will save your organization money over the long term. Digitization increases efficiency, it protects your records no matter what natural disaster, theft, or loss happens, and it makes record retrieval painless while modernizing your organization to current market Thestandards.riskof losing your records is expensive. In some cases, it could shut down your organization completely or make you lose customers. Whatever type of records you have, we’ll work with you on the optimal solution

• Compare that to how much an employee is making an hour, and you’ll understand the true cost of maintaining physical records. Many organizations employ a full-time clerk to manage their physical records.

• The cost of losing sensitive and confidential information. According to the 2018 Cost of a Data Breach Study by Ponemon, the average cost of each stolen or lost record that contains confidential or sensitive information is $148 – an increase of 4.8% year-over-year. Even if you only have a few physical documents with important information on them, losing them can cost you thousands of dollars. Is keeping them only in physical form worth the risk? A generic price for microfiche scanning is $1/sheet. Factor in the financial cost of employee time and the effort to recover from a disaster that affects physical records and the cost savings are clear. Increase efficiency Dealing with physical documents slows down your team. Maybe the time it takes to process a records request for your organization averages around 30 minutes, since your employee has to physically move from records storage to the scanner, provide the records to a customer, and then back to records storage. And that’s only if it’s easy to find the record in the first place. If it’s been misfiled or lost, you can see how the time it takes to look for a record increases quickly. Plus, doing everything by hand makes the process prone to human error. Your delivery is only as fast and accurate as your employee is.

Ward off the risk of natural disasters & document theft Disaster can strike at any time. Fires, floods, hurricanes, tornadoes, earthquakes, burst pipes, structural collapse, or theft could leave your organization in a world of pain. Without a backup of your most important documents, your organization is vulnerable to permanent record damage and loss.

• Modernize your organization Using technology and processes to bring your records into the digital age is a benefit to your employees and your clients. Benefits of modernizing legacy systems like physical record storage include:

3. You can improve customer satisfaction with faster service.

4. Modernizing records with digitization complements other technology efforts at your organization. Dealing with lost or misfiled records is frustrating for employees and customers. Outdated systems can decrease sentiment for your organization inside and outside of your Plus,organization.physical equipment like scanners could become out-of-date quickly. You’ll experience higher costs replacing the equipment you use, as opposed to digitally converting your records with a provider with professional equipment and tested processes in place.

Learn More About Digitization

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• How much each record is worth. If a record is lost, destroyed, damaged or stolen, what financial impact does that have on your organization? You might have to scramble to replace the record, or spend time finding it. Worse, the record may be irreplaceable, which could cost your organization even more.

Save space Physical space for your business is a valuable commodity. Office space can cost anywhere from a couple of dollars per square foot to rent to more than $6 per square foot, according to MarketWatch. When you’re maintaining physical records, you’ll need room for the records, plus a scanner and space for your employees to scan.

You’ll also have to Smake sure that space is temperature-controlled and has security measures in place. Those costs could add up Thequickly.wrong use of space could lead to disorganization and slowed retrieval processes, which then affects your accuracy and efficiency. Digitizing microfiche and other documents means you can cut down on office space costs and use your space for projects that bring more value to your organization.

The Advantages of Digitization

If your machinery fails you – you have a paper jam or your scanner decides it’s not in the mood to work – you’re stuck and have to find a way to adapt, causing more wasted effort. By choosing digital solutions for your microfilm, you could cut down the record retrieval process to around 5 minutes. Everything is stored in an easyto-find place. Accessing each file is instantaneous. You free up your employees to do more important things than managing tedious physical archives.

In 2018, there was more than $91 billion in economic losses due to natural disasters, the National Centers for Environmental Information reports. Add to that the threat of burglars or insider theft that could strike your organization, no matter how many security measures you put in place. The risks of physical document damage or theft can be extremely costly. Even a slight temperature change at your organization can damage records over time. Document scanning means that even if something happens to your physical records, you’ll have a backup in place so you restart normal business processes right away.

Your organization faces constant threats to physical documents including theft, disaster, human error, lost records, and more. Here are some reasons to consider digitizing microfilm, microfiche, and other physical documents for your organization. Save money Managing physical documents is costly. You’ll spend time and resources on recurring record management versus the one-time cost of digitization that could reduce overhead and effort in the future. Consider:

GOING DIGITAL 40 AUGUST - SEPTEMBER 2022 | SACCO TIMES

2. Your staff becomes more productive and improves business processes.

AUGUST - SEPTEMBER 2022 | SACCO TIMES 41Keeping you informed... DOCUMENT MANAGEMENT SERVICES (DMS) Solutions DOCUMENT TELEDYNESERVICESMANAGEMENT(DMS)SOLUTIONS Finance Hse, 2nd Flr, Suite 1 Next To KCB Bank Ruiru P.O. BOX 924-00232, Ruiru | info@teledyneltd.co.ke +254 776 618 013 | +254 776 618 051| www.teledyneltd.co.ke

PS State Department of Cooperatives Ali Noor Ismail Hands Winning Trophies to Mombasa Port Chairman, Mr. Alfred Konde and CEO Mr. Dedan Ondiek, During Ushirika Day Celebrations.

In Sign of Financial Health, Mombasa Port Sacco Bags Coveted Best Capitalization Prize

The ability of a financial institution

AWARDS

If Kenya were to put to test the financial viability of Saccos during tough economic times, then Mombasa Port Sacco Limited would easily come out as the best-capitalized society. Two years after Kenya broke the chains of her colonial master, Mombasa Port Sacco Limited started its business, and over the decades it has been deepening its roots, a factor that has seen it build a strong foundation backed by years of experience earned navigating changes in the country’s economic cycles. The Sacco’s growth is reflected in Kenya’s embrace of the Cooperative Movement as a means to prosperity and wealth creation.

42 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed...

This growth is evident in the strong financial muscles Mombasa Port Sacco has developed over the years of operation to stand out as the Best in Capitalization in this year’s assessment of the industry players in various categories.

Mombasa Port was ranked position one, Best in Capitalization Countrywide, and position one, Best in Capitalization Deposit Taking Sacco, Employer Based Sacco – Tier 1, during this year’s Ushirika Day celebrations. To rank the Coast-based society in this category, the Cooperative Alliance of Kenya considered the total shareholders’ funds (core capital) that comprises of share capital and reserves as a percentage of total assets. In addition, the Sacco’s rate of retention of surplus reflected in the institutional capital was considered. “These parameters will encourage the societies not only to grow their share capital but also to retain more of their earnings to build on their institutional capital for growth,” the awards report noted in part. These two awards place the Sacco on a unique financial health pedestal as an institution that can withstand tough economic times such as the current ruffling by the Covid-19 pandemic that throttled businesses.

Best

PS State Department of Cooperatives Ali Noor Ismail, Hands Best in Capitalization Deposit Taking Saccos Trophy to Mombasa Port Chairman, Mr. Alfred Konde During Ushirika Day Celebrations at KICC. in Capitalization CountrywideNo.1No.1 in Capitalization Deposit Taking Saccos 2022 USHIRIKA DAY NATIONAL AWARDS

Best

AUGUST - SEPTEMBER 2022 | SACCO TIMES 43Keeping you informed... AWARDS to remain stable and profitable during both good and turbulent economic periods helps build confidence with the investors, the members, relevant regulators, and other industry stakeholders. The award on capitalization is an indicator the business is well capitalized, armed with an enviable pool of reserves that can cushion the society during lean times. At the moment, the institution targets to grow her share capital to KSh1 billion mark by the close of the trading period December 2023. Established in 1966 by employees of the then East African Harbours and Railways Corporation, the cooperative later opened its common bond to include the business community, workers from other organizations, self-employed individuals, corporates, and chamas. Over the years, the members’ register has grown to more than 7,500 under different categories: individuals, joint membership, group membership, and company and even corporate Somemembership.oftheofferings wooing members into the entity are short-term loans that include FOSA Emergency loan, the FOSA Prestige loan, FOSA Ordinary loan, and salary advance. The long-term credit products are the Jiendeleze loan, Mega loan, Normal loan, Asset Finance loan, FOSA Jumbo loan, FOSA Premium loan, and Biashara loan. The Sacco, which has made significant investments in techbased services and product offerings is led by the Board Chairman Mr. Alfred Konde, and Chief Executive Officer, Mr. Dedan Ondieki. In the use suchSaccotoonmemberstechnology,ofrideUSSDcodeaccessmobileservicesasuploading different service request forms on the website for faster and more efficient service delivery to members. To keep their operations in check and in sync with set laws and regulations, the Deposit Taking Sacco is regulated and licensed by the Sacco Societies Regulatory Authority. This regulatory body was introduced in 2010 to license, standardize, regulate and control the operations of DT Saccos. The authority, which is led by CEO, Mr. Peter Njuguna, ensures that all DT Saccos have the right permits and observe the set financial management standards

44 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed... 29FEBRUARY - MARCH 2022 | SACCO TIMES We have a wide range of products and services to meet your needs.

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The Society, whose slogan is Growing Together You & I, received the awards during a night gala for cooperatives held at the KICC attended by Cabinet Secretary Agriculture, Livestock, Fisheries and Cooperatives Hon. Peter Munya. “I congratulate those who have done well. A noble criterion is used to evaluate all Saccos and arrive at those who have excelled. Those who do not win, is not that they have not done well, but it is because there will always be someone

Karura Community Sacco Enjoys Multiple Wins of Awards, New Products and Partnerships

Savers of Karura Savings and Credit Cooperative Society have a reason to smile after their entity emerged as the best among community Saccos in Kenya, winning two top awards for promoting the values of diligence and faithfulness in one’s deeds. Karura Community was feted during the United Nations International Day of Cooperatives 2022 celebrations, cementing the Sacco’s commitment to serving members and continued enhancement of their services. The community society was ranked Kenya’s Most Improved Sacco and also led under the Most Improved Non-Deposit Taking Sacco category. Marks of improvement were noted in the Saccos operations and deliverables by the Cooperative Alliance of Kenya that develops the list of winners in the Sacco award scheme.

SUCCESS Karura

NATIONAL AWARDS

The CEO, Mr. Gitonga Kigo receiving an award from the Cabinet Secretary Agriculture, Livestock, Fisheries and Cooperatives Hon. Peter Munya during the 100th Ushirika Day 2022 Celebrations at the KICC. ahead. The award scheme will assist in a big way those who do not win to improve,” said CS Munya. Karura Community acknowledged the staff and members’ efforts in winning the national awards, saying, “congratulations to our diligent team and committed members.” Improved Sacco Countrywide Improved NonDeposit Taking Saccos Communiity Sacco Showcasing Trophies and Sacco Products.

46 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed...

LUCRATIVE

Recently, the Community Based Sacco also got into a lucrative partnership with Optiven Limited. The two entities entered into a Memorandum of Understanding (MOU) giving the members of Karura Sacco an opportunity to invest in land as plots and other properties, including gated communities. The partnership will empower the social economic lives of Sacco members noting that Optiven Limited has numerous projects spread across the country. The new partnership with the land selling company adds to the Sacco’s growing wins this season.

Mr. George Wachiuri, CEO Optiven.Karura Community Sacco CEO, Mr. Gitonga Kigo. Since inception, the Sacco has grown in leaps and bounds and boasts of a membership of more than 2,000. The members enjoy quick and low-interest loans, annual dividends, high-interest saving products, professional digital services, and well-packaged and attractive insurance products. Some of the products the members access includes general loans, development loans, school fees loans, Suluhisho pap, and also the Junior Account for children under the age of 18 years, and the Mavuno/Christmas Saving – Mavuno Account that helps members save for the Christmas festive period PARTNERSHIP SUCCESS

Mrs. Rachael, Head of Sales Optiven Mr. Epainito Chahale, Chairman Karura Community Sacco.

KARURA COMMUNITY SACCO Growing together You & I

Among the Sacco objectives include reduction of poverty, promoting an economic base for members, and promoting human dignity.

AUGUST - SEPTEMBER 2022 | SACCO TIMES 47Keeping you informed... Sacco has a robust mobile banking platform that allows members to access all their banking services including offering of cheap credit. Karura Community Sacco seeks to organise and promote the welfare and economic interests of members including those investing in assets like motorcycles, and tuk-tuks among others. In the spirit of cooperative principle on member education, training and information, the Sacco also empowers members through trainings to equip them with business and entrepreneurial skills and knowledge, and also support them in the journey of becoming homeowners and also investing in land.

The only requirements for a group to access this product include: a group of all least 25 members, Kenya Revenue Authority (KRA) Pin, copy of member IDs, group members’ passport photos and registration fees of KSh700. In a bid to improve efficiency in operations and offer alternative business channels to members, the

The Sacco also recently launched the Jiinue MDOGO MDOGO programme – where table banking groups enjoy instant loans once they join the Sacco with a repayment period of up to six months. With this new Sacco product, groups can access capital and experience economic benefits through organised and calculated means as a group.

Members of The Hope Group Pose for a Photo.

The financial development of members is made possible through opportunities to mobilize savings and access credit facilities, which is the main mission of the Sacco. The vision of the Sacco is ‘to be the leading Sacco providing the best Savings, Credit, and Investment Solutions in Kenya’.

SUCCESS TABLE BANKING

We are a digital Sacco. A member can check their loan, get their statement and much more through our USSD code *341*55#, get the Kwara APP, visit our Sacco webstite: www. karurasacco.or.ke or contact us on 0741888000

48 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed... DATA LAWS

“The Data Commissioner shall consider the nature of the industry, volumes of data processed, whether sensitive personal data is being processed and any other criteria to determine the thresholds for mandatory registration of data controllers and processors,” Section 18 of the law states.

Section 25 states that personal data must be processed following the right to privacy of the data subject lawfully, fairly, and in a transparent Further,manner.

“The Data Protection Act, 2019 requires all data controllers and data processors to register with the Office of the Data Protection Commissioner,” said Data Commissioner Immaculate Kassait. This move is geared towards protecting a huge repository of data belonging to Kenyans and will demand entities to be well resourced to handle the resource by among other ways employing a data officer who will assist with data cleanup and other crucial information management processes.

New Era in Sacco’s Regulation as Data Protection Law Sets In By Safidah Njeri

TheCommissioner.lawwould influence Sacco’s operations since the financial institutions handle sensitive personal data from millions of members in various societies across Kenya.

All SACCOS in Kenya must now register with the Office of the Data Protection Commissioner (ODPC) following the gazettement of the Data Protection Regulations, 2021. The gazettement of the guidelines had delayed the rollout of Data Protection Act, 2019 since the regulations provide guidance on how the law comes into force. The regulations were published in the Kenya Gazette on 14th January 2022 and came into effect on 14th July 2022. This necessitated all data controllers and data processors to register with the Data Protection

The office has drafted guidelines for this law that consider the contents of The Data Protection Act, 2019, The Data Protection (Registration of Data Controller and Data Processors) Regulations, 2021, The Data Protection and Privacy Policy, 2018; and global best practise.

The new law has raised the threshold for the handling of data in Kenya providing that data that belong to Kenyans shall be protected from misuse.

Section 26, says that a data subject has a right ‘to be informed of the use to which their data is to be put

“Registration is an important element of compliance with the data protection legislation as organizations cannot act as data controllers or processors in Kenya unless they have registered with the ODPC,” explained Ms. Kassait. Saccos are part of the entities targeted by the ODPC since they hold data from their members/ customers, including personal information, sensitive financial records, and next of kin details. Other entities that are also expected to register with ODPC include individuals, not-forprofit organisations, and religious institutions that handle personal data. These entities are required to submit their registration application electronically using the ODPC online application portal. An organisation can register as both a data controller and a data processor, and they will be required to pay a fee for an application for both roles.

In addition, the applicant for the registration shall describe the personal data to be processed, description of the purpose for which the personal data is to be processed, the category of data subjects, contact details, general description of the risks, safeguards, security measures, and mechanisms to ensure protection and any measures to indemnify the data subject from unlawful use of data by the data processor or data controller. The law also explains the critical role of the data protection officer where one one may work for a single entity or a group of organisations.

AUGUST - SEPTEMBER 2022 | SACCO TIMES 49Keeping you informed... USHIRIKA DAY 2022 AWARDS LIST SACCO NAME CATEGORY POSITION AWARDS 1 UNITED NATIONS DT SACCO 1 - Best Managed Sacco Countrywide 1c - Employer Based Sacco – Tier 1 3 - Best in Savings Management Countrywide 1c - Employer Based Sacco – Tier 1 1111 Best Managed Sacco Countrywide Best Managed Sacco – Deposit Taking – Employer Based Sacco – Tier 4 Best in Savings Management Countrywide Best in Savings Deposit Taking Sacco 2 KENYA NATIONAL POLICE DT SACCO 1 - Best Managed Sacco Countrywide 1c - Employer Based Sacco – Tier 1 4 - Best in Credit Management Countrywide 4c - Employer Based – Tier 1 6c - Employer Based Sacco 31122 Best Managed Sacco Countrywide Best Managed Sacco Deposit Taking Sacco Best in Credit Management Countrywide Best in Credit Management Countrywide Best in Risk Management Countrywide 3 COOPERATIVE BANK SACCO 1 - Best Managed Sacco Countrywide 1 - Best Managed Sacco Non Deposit Taking 4 - Best in Credit Management Countrywide 4 - Best in Credit Management Countrywide NDT 5 - Most Efficient Sacco Countrywide 5 - Most Efficient Sacco Countrywide NDT 221113 Best Managed Sacco Countrywide Best Managed Sacco Non-Deposit Taking Best in Credit Management Countrywide Best in Credit Management Countrywide – Non Deposit Taking Most Efficient Sacco Countrywide Most Efficient Sacco Countrywide – Non Deposit Taking 4 SHELLOYES REGULATED NON-WDT SACCO 1 - Best Managed Sacco NDT 3 - Best in Savings Management Country 3wide-Best in Savings – NDT Sacco 6 - Best in Risk Management – NDT Sacco 3232 Best Managed Sacco NDT Best in Savings Management Countrywide Best in Savings NDT Sacco Best in Risk Management NDT Sacco 5 BAT REGULATED NONWDT SACCO 1-Best Managed Sacco NDT 3 - Best in Savings Management Country 3wide-Best in Savings – NDT Sacco 123 Best Managed Sacco – NDT Sacco Best in Savings Management Countrywide Best In Savings NDT Saccos 6 KENYA HIGHLANDS SACCO 1a - Agricultural Based 4a - Agricultural Based 5 - Most Efficient DT Saccos 231 Best Managed Sacco DT Best in Credit Management DT Saccos Most Efficient Deposit Taking Saccos 7 GDC SACCO 1a - Agricultural Based 3a - Agricultural Based 4a - Agricultural Based 8a - Agricultural Based 2112 Best Managed Sacco DT Best in Savings Management Countrywide – DT BestSaccosin Credit Management DT Saccos Most Improved DT Saccos 8 NDEGE CHAI SACCO 1a - Agricultural Based 6 - Best in Risk Management Countrywide 6a - Agricultural Based 133 Best Managed Sacco Deposit Taking Best in Risk Management Countrywide Best in Risk Management DT Saccos 9 WAUMINI SACCO 1b - Community Based Sacco 3b - Community Based Sacco 4b - Community Based Sacco 5b - Community Based Sacco 6b - Community Based Sacco 31221 Best Managed Sacco Deposit Taking Best in Savings Deposit Taking Saccos Best in Credit Management Deposit Taking Saccos Most Efficient Deposit Taking Saccos Best in Risk Management Deposit Taking Saccos 10 CENTENARY SACCO 1b - Community Based Sacco 2b - Community Based Sacco 5b - Community Based Sacco 6b - Community Based Sacco 8b - Community Based Sacco 31332 Best Managed Sacco Deposit Taking Best in Capitalization DT Saccos Most Efficient Deposit Taking Saccos Best in Risk Management Deposit Taking Saccos Most Improved Deposit Taking Saccos 11 TIMES U SACCO 1b - Community Based Sacco 4b - Community Based Sacco 6b - Community Based Sacco 7b - Community Based Sacco 8b - Community Based Sacco 13233 Best Managed Sacco Deposit Taking Best in Credit Management DT Saccos Best in Risk Management DT Saccos Best in Technology Optimization DT Saccos Most Improved DT Saccos PERFOMANCE REPORT

50 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed... 12 TEMBO SACCO 1c – Employer Based Sacco – Tier 1 3c - Employer Based Sacco – Tier 1 5c - Employer Based Sacco – Tier 1 7c - Employer Based Sacco – Tier 1 3133 Best Managed Sacco DT Best in Savings Management DT Saccos Most Efficient DT Saccos Best in Technology Optimization DT Saccos 13 KENPIPE SACCO 1c - Employer Based Sacco – Tier 2 2c - Employer Based Sacco – Tier 2 3c - Employer Based Sacco – Tier 2 4c - Employer Based Sacco – Tier 2 5c - Employer Based Sacco – Tier 2 13111 Best Managed Sacco Deposit Taking Best in Capitalization Deposit Taking Best in Savings Deposit Taking Saccos Best in Credit Management Deposit Taking Saccos Most Efficient Deposit Taking Saccos 14 MWITO SACCO 1c- Employer Based Sacco – Tier 2 4c- Employer Based Sacco – Tier 2 5c- Employer Based Sacco – Tier 2 6c - Employer Based Sacco – Tier 2 7c - Employer Based Sacco – Tier 2 8c - Employer Based Sacco – Tier 2 233212 Best Managed Sacco Deposit Taking Best in Credit Management Deposit Taking Saccos Most Efficient Deposit Taking Saccos Best in Risk Management Deposit Taking Saccos Best in Technology Optimization Deposit Taking MostSaccosImproved Deposit Taking Saccos 15 NATION DT SACCO 1c - Employer Based Sacco – Tier 2 3c - Employer Based Sacco – Tier 2 5c - Employer Based Sacco – Tier 2 8c - Employer Based Sacco – Tier 2 1323 Best Managed Sacco Deposit Taking Best in Savings Deposit Taking Saccos Most Efficient Deposit Taking Saccos Most Improved Deposit Taking Saccos 16 FARIDI SACCO 1c – Employer Based Sacco – Tier 3 2c – Employer Based Sacco – Tier 3 3c – Employer Based Sacco – Tier 3 4- Best in Credit Management Countrywide 4c– Employer Based Sacco – Tier 3 5c– Employer Based Sacco – Tier 3 8c– Employer Based Sacco – Tier 3 3113211 Best Managed Sacco Deposit Taking Best in Capitalization Deposit Taking Saccos Best in Savings Deposit Taking Saccos Best in Credit Management Countrywide Best in Credit Management Deposit Taking Saccos Most Efficient Deposit Taking Saccos Most Improved Deposit Taking Saccos 17 SIMBA CHAI SACCO 1c – Employer Based Sacco – Tier 3 2c – Employer Based Sacco – Tier 3 4c – Employer Based Sacco – Tier 3 5c– Employer Based Sacco – Tier 3 6c– Employer Based Sacco – Tier 3 8c– Employer Based Sacco – Tier 3 132332 Best Managed Sacco Deposit Taking Best in Capitalization Deposit Taking Saccos Best in Credit Management Deposit Taking Saccos Most Efficient Deposit Taking Saccos Best in Risk Management Deposit Taking Saccos Most Improved Deposit Taking Saccos 18 CHUNA SACCO 1c – Employer Based Sacco – Tier 3 3c – Employer Based Sacco – Tier 3 5c – Employer Based Sacco – Tier 3 7c – Employer Based Sacco – Tier 3 2313 Best Managed Sacco Deposit Taking Best in Savings Deposit Taking Saccos Most Efficient Deposit Taking Saccos Best in Technology Optimization Deposit Taking Saccos 19 AIRPORT SACCO 1c – Employer Based Sacco – Tier 4 3c – Employer Based Sacco – Tier 4 4c – Employer Based Sacco – Tier 4 5c – Employer Based Sacco – Tier 4 8c – Employer Based Sacco – Tier 4 321221 Best Managed Sacco Deposit Taking Best in Savings Deposit Taking Saccos Best in Credit Management Deposit Taking Saccos Most Efficient Deposit Taking Saccos Most Improved Deposit Taking Saccos Best Managed Investments and Housing Cooperatives 20 TABASAMU SACCO 1c - Employer Based Sacco – Tier 4 2c - Employer Based Sacco – Tier 5 3c - Employer Based Sacco – Tier 4 4c - Employer Based Sacco – Tier 4 5c - Employer Based Sacco – Tier 4 8c - Employer Based Sacco – Tier 4 323312 Best Managed Sacco Deposit Taking Best in Capitalization Deposit Taking Saccos Best in Savings Deposit Taking Saccos Best in Credit Management Deposit Taking Saccos Most Efficient Deposit Taking Saccos Most Improved Deposit Taking Saccos PERFOMANCE REPORT

AUGUST - SEPTEMBER 2022 | SACCO TIMES 51Keeping you informed... 21 NAFAKA SACCO 1c - Employer Based Sacco – Tier 4 2c - Employer Based Sacco – Tier 4 3c - Employer Based Sacco – Tier 4 4c - Employer Based Sacco – Tier 4 6c - Employer Based Sacco – Tier 4 7c - Employer Based Sacco – Tier 4 131123 Best Managed Sacco Deposit Taking Best in Capitalization Deposit Taking Saccos Best in Savings Deposit Taking Saccos Best in Credit Management Deposit Taking Saccos Best in Risk Management Deposit Taking Saccos Best in Technology Optimization Deposit Taking Saccos 22 MOMBASA PORT SACCO 2 – Best in Capitalization Countrywide 2c – Employer Based Sacco – Tier 1 11 Best in Capitalization Countrywide Best in Capitalization Deposit Taking Saccos 23 BINGWA SACCO 2 – Best in Capitalization Countrywide 2a – Agricultural based Saccos 5a – Agricultural based Saccos 6a - Agricultural based Saccos 7a – Agricultural based Saccos 12112 Best in Capitalization Countrywide Best in Capitalization Deposit Taking Sacco Most Efficient Deposit Taking Saccos Best in Risk Management Deposit Taking Saccos Best in Technology Optimization Deposit Taking Saccos 24 COUNTY SACCO 2 – Best in Capitalization Countrywide 3 Best in Capitalization Countrywide 25 RELI REGULATED WDT SACCO 2 – Best in Capitalization Non - Deposit Taking Saccos 4 – Best in Credit Management Non-Deposit Taking Saccos 21 Best in Capitalization Non-Deposit Taking Saccos Best in Credit Management Non-Deposit Taking Saccos 26 KEWISCO SACCO 2 – Best in Capitalization Non-Deposit Taking Saccos 2 Best in Capitalization Non-Deposit Taking Saccos 27 KAG SACCO 2 – Best in Capitalization Non-Deposit Taking Saccos 3 Best in Capitalization Non-Deposit Taking Saccos 28 YETU SACCO 2a – Agricultural Based Saccos 6a – Agricultural Based Saccos 7a – Agricultural Based Saccos 232 Best in Capitalization Deposit Taking Saccos Best in Risk Management Deposit Taking Saccos Best in Technology Optimization Deposit Taking Saccos 29 NAWIRI SACCO 2a – Agricultural Based Saccos 3 Best in Capitalization Deposit Taking Saccos 30 KINGDOM SACCO 2b – Community based Saccos 3b – Community Based Saccos 5b – Community based Saccos 7b – Community Based Saccos 1211 Best in Capitalization Deposit Taking Saccos Best in Savings Deposit Taking Saccos Most Efficient Deposit Taking Saccos Best in Technology Optimization Deposit Taking Saccos 31 UNIVERSAL TRADERS SACCO 2b – Community based Saccos 4b – Community Based Saccos 7b – Community based Saccos 212 Best in Capitalization Deposit Taking Saccos Best in Credit Management Deposit Taking Saccos Best in Technology Optimization Deposit Taking Saccos 32 NACICO SACCO 2c – Employer Based Saccos – Tier 1 2 Best in Capitalization Deposit Taking Saccos 33 KWETU SACCO 2c – Employer Based Saccos – Tier 1 3 Best in Capitalization Deposit Taking Saccos 34 KENVERSITY SACCO 2c – Employer Based Saccos – Tier 2 3c – Employer Based Saccos – Tier 2 7c – Employer Based Saccos – Tier 2 232 Best in Capitalization Deposit Taking Saccos Best in Savings Management Deposit Taking Saccos Best in Technology Optimization Deposit Taking Saccos 35 ASILI SACCCO 2c – Employer Based Saccos – Tier 2 6c – Employer Based Saccos – Tier 2 7c – Employer Based Saccos – Tier 2 113 Best in Capitalization Deposit Taking Saccos Best in Risk Management Deposit Taking Saccos Best in Technology Optimization Deposit Taking Saccos PERFOMANCE REPORT

52 AUGUST - SEPTEMBER 2022 | SACCO TIMES Keeping you informed... PERFOMANCE REPORT 36 MAFANIKIO SACCO 2c – Employer Based Saccos – Tier 3 4c – Employer Based Saccos – Tier 3 6c – Employer Based Saccos – Tier 3 7c – Employer based Saccos -Tier 3 3222 Best in Capitalization Deposit Taking Saccos Best in Credit Management Deposit Taking Saccos Best in Risk Management Deposit Taking Saccos Best in Technology Optimization Deposit Taking Saccos 37 TABASURI DT SACCO 2c – Employer Based Saccos – Tier 4 5c – Employer Based Saccos – Tier 4 6c – Employer Based Saccos – Tier 4 7c – Employer based Saccos -Tier 4 8c – Employer Based Saccos – Tier 4 13233 Best in Capitalization Deposit Taking Saccos Most Efficient Deposit Taking Saccos Best in Risk Management Deposit Taking Saccos Best in Technology Optimization Deposit Taking MostSaccosImproved Deposit Taking Saccos 38 UKAGUZI SACCO 3 – Best in Savings Management Non-Depos it Taking Saccos 5 – Most Efficient Sacco Countrywide 5 – Most Efficient Non-Deposit Taking Saccos 333 Best in Savings Management Non-Deposit Taking Saccos Most Efficient Sacco Countrywide Most Efficient Non-Deposit Taking Saccos 39 CHAI SACCO 3a – Agricultural Based Saccos 2 Best in Savings Deposit Management Taking Saccos 40 AMICA SACCO 3a – Agricultural Based Saccos 8a – Agricultural Based Saccos 13 Best in Savings Deposit Management Taking Saccos Most Improved Deposit Taking Saccos 41 DIMKES SACCO 3b – Community Based Saccos 8b – Community Based Saccos 23 Best in Savings Deposit Management Taking Saccos Most Improved Deposit Taking Saccos 42 USHURU SACCO 3c – Employer Based Saccos – Tier 1 5c – Employer Based Saccos – Tier 1 32 Best in Savings Management Deposit Taking Saccos Most Efficient Deposit Taking Saccos 43 NAFANIKIO SACCO 3C - Employer Based Saccos – Tier 3 3 Best in Savings Management Deposit Taking Saccos 44 KARI SACCO 3 - Best in Credit Management Non-Deposit Taking Saccos 3 Best in Credit Management Non-Deposit Taking Saccos 45 KIMBILIO SACCO 4a – Agricultural Based Saccos 5a – Agricultural Based Saccos 32 Best in Credit Management Deposit Taking Saccos Most Efficient Deposit Taking Saccos 46 SOLUTION SACCO 4c – Employer Based Saccos – Tier 1 8c – Employer Based Saccos – Tier 2 22 Best in Credit Management Deposit Taking Saccos Most Improved Deposit Taking Saccos 47 COSMOPOLITAN SACCO 4c – Employer Based Saccos – Tier 1 3 Best in Credit Management Deposit Taking Saccos 48 NG’ARISHA SACCO 4c – Employer Based Saccos – Tier 2 8c – Employer Based Saccos – Tier 2 32 Best in Credit Management Deposit Taking Saccos Most Improved Deposit Taking Saccos 49 EQUITY SACCO 5 – Most Efficient Sacco Countrywide 5 – Most Efficient Sacco Countrywide 11 Most Efficient Sacco Countrywide Most Efficient Non-Deposit Taking Saccos 50 HAZINA SACCO 5c – Employer Based Saccos – Tier 1 2 Most Efficient Deposit Taking Saccos 51 MENTOR SACOO 6 – Best in Risk Management Countrywide 6c – Employer Based Saccos – Tier 1 11 Best in Risk Management Countrywide Best in Risk Management Deposit Taking Saccos 52 BANDARI SACCO 6 – Best in Risk Management Countrywide 6c – Employer Based Saccos – Tier 1 32 Best in Risk Management Countrywide Best in Risk Management Deposit Taking Saccos 53 MAHASIBU SACCO 6 – Best in Risk Management Non-Deposit Taking Saccos 7 – Best in Technology Optimization Non-De posit Saccos 31 Best in Risk Management Non-Deposit Taking Saccos Best in Technology Optimization Non-Deposit Taking Saccos 54 KENTOURS SACCO 6 – Best in Risk Management Non-Deposit Taking Saccos 2 Best in Risk Management Non-Deposit Taking Saccos

AUGUST - SEPTEMBER 2022 | SACCO TIMES 53Keeping you informed... 55 SAFARICOM SACCO 6c – Employer Based Saccos – Tier 1 7 – Best in Technology Optimization Coun 7ctrywide–Employer Based Saccos – Tier 1 13 Best in Risk Management Deposit Taking Saccos Best in Technology Optimization Countrywide Best in Technology Optimization Deposit Taking Saccos 56 MAISHA BORA 6c – Employer Based Saccos – Tier 1 3 Best in Risk Management Deposit Taking Saccos 57 MWALIMU NATIONAL SACCO 6c – Employer Based Saccos – Tier 1 3 Best in Risk Management Deposit Taking Saccos 58 ARDHI SACCO 6c – Employer Based Saccos – Tier 2 2 Best in Risk Management Deposit Taking Saccos 59 ELIMU SACCO 6c – Employer Based Saccos – Tier 2 1 Best in Risk Management Deposit Taking Saccos 60 MAGADI SACCO 6c – Employer Based Saccos – Tier 4 7c – Employer Based Saccos – Tier 4 21 Best in Risk Management Deposit Taking Saccos Best in Technology Optimization Deposit Taking Saccos 61 JAMII SACCO 7 – Best in Technology Countrywide 7c – Employer Based Saccos – Tier 1 22 Best in Technology Optimization Countrywide Best in Technology Optimization Deposit Taking Saccos 62 TAI SACCO 7 – Best in Technology Optimization Coun 7atrywide–Agricultural Based Saccos 13 Best in Technology Optimization Countrywide Best in Technology Optimization Deposit Taking Saccos 63 BANKI KUU SACCO 7 – Best in Technology Optimization Non-De posit Taking Sacco 1 Best in Technology Optimization Non-Deposit Taking Saccos 64 UKOMBOZI REGULATED WDT SACCO 7 – Best in Technology Optimization Non-De posit Taking Sacco 2 Best in Technology Optimization Non-Deposit Taking Saccos 65 TELEPOST SACCO 7c – Employer Based Saccos – Tier 4 8c – Employer Based Saccos – Tier 4 21 Best in Technology Optimization Deposit Taking Sacco Most Improved Deposit Taking Saccos 66 KARURA COMMUNITY SACCO 8 – Most Improved Sacco Countrywide 8 – Most Improved Non-Deposit Taking Saccos 11 Most Improved Sacco Countrywide Most Improved Non-Deposit Taking Saccos 67 KENYAN SACCOAMERICANNORTHDIASPORA 8 – Most Improved Sacco Countrywide 8 – Most Improved Non-Deposit Taking Saccos 22 Most Improved Sacco Countrywide Most Improved Sacco Non-Deposit Taking Saccos 68 LAW SOCIETY OF KENYA NON-WDTREGULATEDSACCO 8 – Most Improved Sacco Countrywide 8 – Most Improved Non-Deposit Taking Saccos 33 Most Improved Sacco Countrywide Most Improved Non-Deposit Taking Saccos 69 K – UNITY SACCO 8a – Agricultural Based Saccos 3 Most Improved Deposit Taking Sacco 70 IMARISHA SACCO 8c – Employer Based Saccos – Tier 1 1 Most Improved Deposit Taking Saccos 71 TOWER SACCO 8c – Employer Based Saccos – Tier 1 3 Most Improved Deposit Taking Sacco 72 UMOJA HOUSINGWENDANI 9 – Investments and Housing Cooperatives 1 Best Managed Investment and Housing Cooperative 73 PAMBAZUKA HOUSING 9 – Investments and Housing Cooperatives 2 Best Managed Investment and Housing Cooperative 74 MERU CENTRAL DAIRY COOPERATIVE SOCIETY 10 - Marketing Societies 1 Best Managed Marketing Societies 75 LTDCOOPERATIVEDAIRYGITHUNGURIFARMERSUNION 10 - Marketing Societies 2 Best Managed Marketing Societies 76 MWEA RICE COOPERATIVEMULTIPURPOSEGROWERSOCIETY 10 - Marketing Societies 3 Best Managed Marketing Societies PERFOMANCE REPORT

PICTORIALS

What makes us more than you can imagine? Voted Position 1 as the Best Sacco in Risk Management Countrywide Strong Foundation Tire 1 Sacco with a National Presence Our ability to discover our potential Our flexible premier products and services tailored to suit you Realization that your deposits require more returns Ease of access to your accounts anytime, anywhere More than affordable loan facilities Mentor Sacco, more than just a financial institution.... 0111026000 Mentor Sacco Society MentorSaccoLtd info@mentorsacco.co.ke www.mentorsacco.co.ke

Keeping you informed... Celebrating 50 years of member empowerment BENEFITS OF MEMBERSHIP • Low interest rates on loans • High annual dividends and interest on deposits • Instant M-Tawi FOSA loans • Loan clearance on behalf of members • Affordable property with Investment Co-operative OUR MEMBERSHIP IS OPEN TO THE PUBLIC Countrywide Best Managed CountrywideSACCO Thank you believingforinus! 1 Best in Credit Management Deposit Taking SACCOs - Employer Based SACCO - Tier 1 Best in Risk Management Deposit Taking SACCOs Employer Based SACCO - Tier 1 SACCO - Tier 1 Best Managed SACCO Deposit Taking SACCOs Employer Based SACCO - Tier 1 Best in Credit CountrywideManagement Kenya National Police DT SACCO KENYA NATIONAL POLICE DT SACCO: 3 2 22