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Trans National Times Sacco Greatly Empowers its Members
TESTIMONIAL Trans National Times Sacco
Greatly Empowers its Members
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By Kephas Ayiecha
The renowned Trans National Times Sacco strives to improve the financial status of its members by offering them state-of-the-art products and services.
Some of the beneficiaries of the Sacco’s credit facilities told Sacco Times Magazine that they are grateful that they have received a helping hand, which has seen them realize their personal and business growth goals, that would have otherwise been impossible due to limited funds.
Mr. Joseph Sikasa, a retired teacher, joined the Sacco in 2018. He harboured a dream of joining the Matatu sector but had a financial challenge, that made it hard for him to acquire a vehicle to actualize that dream. In 2019, he acquired a loan of Kshs 1.2 million and later applied for another amounting to Kshs 1.3 million, which cumulatively totaled to Kshs 2.5 million. “I approached TNT Sacco and it offered me a loan.
This loan enabled me to acquire a 14-seater van that plies the Kitale-Nairobi route, under the Eldoret crossroads shuttle Sacco,” said Mr. Sikasa. He stated that he has set goals to increase his fleet and will continue banking on the Sacco, to achieve the dream once he completes repaying the current loan. Therefore, he urged his family and friends to join and invest through the Trans National Times Sacco.
Mr Evans Wasilwa, a Headteacher and Mr. Anthony Malemo, a teacher at Muungano Primary School in Kiminini Constituency, are other proud members of the Sacco. Mr. Evans Wasilwa said the savings
The head teacher of Muungano primary school Mr. Evans Wasilwa displays some of the trophies the school has bagged out of academic excellence. He said being a member of the Trans National Times Sacco has seen him pursue two degrees and built his house.
at the Sacco enabled him to pursue his bachelors degree at the University of Nairobi and a masters degree Laikipia University. “I have also been able to put up a permanent house at my home. We have been encouraging our teachers to join the Sacco, since it will help them to finance their growth goals,” He added.
Mr. Anthony’s dream to own a personal vehicle was made possible through asset financing by the Sacco. “I have been saving at the Sacco since joining in 2012. In 2017, I accessed an asset financing loan of Kshs 700, 000 which I topped up to acquire a Toyota Fielder personal vehicle which was a goal I was pursuing,” said Mr. Malemo. He said the vehicle has made traveling easy for him and his family and that he used some of the money to clear a fees balance for his niece.
Mr. Joseph Sisaka poses for a photo in the company of Trans National Times Sacco staff next to his Matatu van which he acquired after a financing loan from the financial institution in Kitale.
Mr. Anthony Malemo (left) a teacher at Muungano primary school stands next to a vehicle which he acquired courtesy of an asset financing loan from the Trans National Times Sacco in Kitale. On the right is Mr. Tom Nangendo the Sacco’s marketing manager.
Technology
Trans National Times Sacco has invested heavily in technology. During an interview with Sacco Times Magazine the Chief Executive Officer (CEO), Mr. George Malava, said that digitization is among the key pillars in the Sacco’s 2021-2025 strategic plan.
“We are in the process of establishing a call center that will operate 24/7. By partnering with Co-operative Bank, personal cheques and cheque truncation machines will soon be available, for a faster cheque clearing process,” said Mr. Malava. He added that they had acquired a new server with the Co-operative bank in line with the country’s digital agenda, that will enable members to access the Sacco’s services online even remotely through their cell phones.
Members can access loans and withdraw cash from their accounts by simply dialing *477# on their phones. To improve the efficiency of these transactions, Sacco members to increase their savings to enjoy big loans and reap bigger returns. “We call upon our members to contribute not just the minimum, because when they retire, what they have saved in the Sacco will help them greatly.” He also urged the young people and the ECDE teachers to patronize Trans National Sacco products, further noting that through their savings their future is promising.
“No Sacco in Trans Nzoia, West Pokot, and Turkana Counties, can equate to Trans National Times Sacco. We have strong liquidity, which ensures that our members get money any time,” he stated.
Products
The Sacco offers both Back Office Service Activity (BOSA) and Front Office Service Activity (FOSA) products and services under one roof. Some of the loan products available include: Emergency loans, Normal loans, Preferential loans, Smart-saver, School fees loans, Tuliza loans, Advance 3 and Advance 6.
Membership
Trans National Times Sacco was founded in 1977 with 200 members, which has grown to over 23,000 as at 30th December 2020. Its membership ranges from: Teachers Service Commission employees, Police Service Commission officers, County Government employees, people from private and business sectors among others. Membership is classified into four classes.
Class A is for Teachers with a share capital of Kshs 30, 000. Class B1 is for other Civil servants with a share capital of Ksh 30, 000. Class B is for smallscale earners with a share capital of Kshs 2,000 while class C is for small business traders with a share capital of Kshs 2, 000.
Trans National Times Sacco is installing the ‘Sacco Wallet’. “The process of installing a cell phone money service called ‘Sacco Wallet’ is underway; this will facilitate members to pay their loans and withdraw cash, via mobile phones, in addition to receiving alerts on the status of their account among others,” said the CEO. He added that the Sacco has a quick and significantly automated loans processing system, that ensures members seeking credit facilities are promptly assisted.
The Sacco Chairman, Mr. Evans Sichangi, urged
SASRA: Non-Deposit Taking Saccos
Commence Acquiring Operating Licenses
By Staff Writer
The first cluster of Nondeposit taking Saccos with non-withdrawable deposits of Kshs 100 million and above have received operating licenses whilst the others are in the process of acquiring them from the Sacco Societies Regulatory Authority (SASRA), after the set deadline elapsed on 31st June 2020.
Following the implementation of the Sacco Societies (Non-Deposit Taking Business) Regulations 2020, which took legal effect on 1st January 2021, all non-deposit taking Saccos were to seek for authorization to operate from the Regulatory Authority. According to SASRA data, close to 200 nondeposit taking Saccos, have so far applied for authorization from an estimated 250 Saccos.
The new regulations are to safeguard members deposits, ensuring sound management and prevent their collapse, while putting directors on check. SASRA was founded in 2010 as a regulatory body, and was mandated to only regulate deposittaking Saccos, leaving non-deposit taking Saccos unsupervised.
“This legal lacuna created room for mischief in the public arena by many Sacco-like-styled entities, collecting savings from the public and promising good return only to disappear into a thin air,” Cabinet Secretary Ministry of Agriculture Livestock, Fisheries and Cooperative, Peter Munya said during a forum by SASRA to launch the process of authorization of the NDT Saccos; where 25 were issued with the certificates.
He therefore, advised the regulator to be on the lookout to ensure no Sacco operates outside the stipulated regulation and urged members of the public to take note
From Left: PS Co-operatives Mr. Ali Noor Ismail, CS Co-operatives Hon.Peter Munya and SASRA Chairman Mr. John Munuve at the launch of the Non-Deposit Taking Business Regulations 2020 in January.
of the Sacco they invest in, to avoid becoming victims of fraud.
The 25 non-deposit taking Saccos that were issued with the certificates include Mhasibu Sacco, Jogee Sacco, Kenya Medical Association Sacco, Co-operative bank Sacco, Smart Saver Sacco, Kewisco Sacco, Banki Kuu Sacco, Lampasago Sacco, BAT Sacco, Ubora Sacco, Njiwa Sacco, CIC Sacco, Mount Kenya University Sacco, Balozi Sacco, Biblia Sacco, Esta Sacco, Amref Sacco, Utabibu Sacco, Network Sacco, Kenya Re Sacco, Waskom Sacco, Umoja Wendani Sacco, Blue Eagle Sacco and Family Sacco.
However, SASRA acting Chief Executive Officer Mr. Peter Njuguna revealed that an addition of 50 licenses have been processed waiting to be handed over to the respective Saccos, “We have up to the end of September to process the authorization certificates.
We will publish the list in the Kenya Gazette notice as a legal requirement to notify the members the fate of their saccos as far as the new regulatory framework is concerned,” He added.
Acting SASRA CEO, Mr. Peter Njuguna and CAK CEO Mr. Daniel Marube.
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EXCELLENCE Safaricom Sacco Celebrates its 20th Anniversary with the Launch of a New Digital System and a Home Mortgage Product
Cake cutting session to mark the 20th Anniversary of Safaricom Sacco in an event held at Zen Gardens, Nairobi.
By June Njoroge.
In pomp and colour, Safaricom Sacco celebrated its 20th anniversary marking two decades of delivering dynamic, affordable and innovative products and services to its members.
Renowned as one of the most digital Sacco in the country, the Sacco also officially launched a new ICT system and its affordable home mortgage product dubbed ‘Faraji’; which has hitherto already appealed to many subscribers.
The auspicious anniversary ceremony was held at the Zen Gardens, Nairobi and was graced by the Sacco’s partners, stakeholders and key Corporate and Co-operative representatives.
In attendance was the Chief Guest, ICT Principal Secretary, Mr. Jerome Ocheng who represented the CS Joe Mucheru, the outgoing Commissioner for Co-operatives Mr. Geoffrey Njang’ombe, the Nairobi County Director for Co-operative Mrs. Dolphine Aremo, Mr. Peter Njuguna acting CEO at the Sacco Societies Regulatory Authority
Safaricom Sacco Celebrates its 20th Anniversary in pomp and colour, From left, Safaricom Sacco Chairman Mr. Paul Msava, ICT Principal Secretary, Mr. Jerome Ocheng and Chief Corporate Affairs Officer at Safaricom PLC, Mr. Stephen Chege.
Safaricom Sacco Chairman Mr. Paul Msava giving his address during the 20th Anniversary at Zen Gardens, Nairobi.
(SASRA), Westlands Sub-County Co-operative Officer Mrs. Margaret Kamau, Chief Corporate Affairs Officer at Safaricom PLC, Mr. Stephen Chege who stood in for the Safaricom PLC CEO Mr. Peter Ndegwa and invited CEOs of other Saccos.
Mr. Jerome Ocheng commended the Sacco for the numerous milestones achieved in the twenty years span and its relentless efforts in digitizing operations to efficiently cater to its members.
His words were reiterated by Mr. Steve Chege who similarly lauded the Sacco’s digital journey which has rendered the Society cyber secure, in the wake of the rampant cyber attacks especially targeted at financial institutions.
“Safaricom Sacco has gone out of its way to ensure that members are comfortable. The government recognizes the role of the Sacco in resource mobilization” Mr. Geoffrey Njang’ombe stated, commending the Sacco for being member-centric. By the same token, Mrs. Dolphine Aremo, lauded the Sacco not only for the stellar performance but also for recruiting youthful leadership. “We are proud of Safaricom Sacco and its performance. Its one of the Saccos that is fully compliant with the stipulated regulations and we never get complaints about from members,’ noted Mrs. Margret Kamau.
“In terms of digitization of products, we are proud to say that we are a paperless Society, from onboarding members, loan applications, to conducting all manner of transactions be it deposits or withdrawals. We are always keen to deliver products that respond to members’ needs.” the Safaricom Sacco Chief Executive Officer (CEO) Mr. Joseph Njoroge stated. His words
Safaricom Sacco CEO, Mr Joseph Njoroge addressing guests at the Sacco’s 20th Anniversary Celebrations at Zen Garden, Nairobi.
The Chief Guest, ICT Principal Secretary, Mr. Jerome Ocheng giving his address at the 20th Safaricom Sacco Anniversary Ceremony at Zen Gardens, Nairobi.
The Chief Corporate Affairs Officer at Safaricom PLC, Mr. Stephen Chege giving his address at the Safaricom Sacco 20th Anniversary celebration at Zen Gardens, Nairobi.
The outgoing Commissioner for Co-operatives Mr. Geoffrey Njang’ombe giving his address at the Safaricom Sacco 20th Anniversary ceremony at Zen Gardens, Nairobi.
were echoed by his counterpart the Chairman, Mr. Paul Msava in his speech, “Our focus on becoming an increasingly agile, resilient and future-ready Sacco has helped us overcome changing business challenges in the globally disruptive environment. We are particularly pleased with how we were able to leverage on our digital prowess to offer solutions that helped in supporting our customers at this time.” he noted.
Acclaimed for its digital prowess, the Sacco continues to leverage on its online platforms as its anchor during these unprecedented times. Having swiftly adapted to the ‘new normal’, the Sacco employed state of the art technology, to conduct a one of a kind seamless virtual Annual General Meeting (AGM) in the first quarter of the year.
Financial Performance. The Sacco’s asset base stood stoically at Kshs 7.4 billion having registered a sharp significant growth by 12% from Kshs 6.7 billion of 2019, whilst membership made slight increase from 12,621 in 2019 to 13,146 in 2020. A remarkable 9% increase in member deposits was recorded from Kshs 5.5 billion of 2019 to Kshs 6 billion in 2020; whereas the loan book marginally grew with loans and advances to members increasing from Kshs 5.3 billion of 2019 to Kshs 5.5 billion in the year under review.
The Board of Directors proposed the distribution of dividends on share capital at 12% amounting to Kshs 58,147,885 and a rebate of 7.5% on weighted deposits summing up to Kshs 392,496,800.
A profit after tax of Kshs 237.4 million was earned whilst total revenue amounted to Kshs 778.9 million in 2020 from Kshs 699 million of 2019. Core capital grew to Kshs1,013,863,675 in 2020 from Kshs 772,213,032 of 2019, whilst institutional capital stood at Kshs 443,461,814 registering an increase from Kshs 314,822,122 of 2019.
Technology To cushion its members from the catastrophic effects of the pandemic, Safaricom Sacco has been banking on its technology mastery; digitizing all its core operations for members to access services safely and at their convenience.
The Bankers Realm designed by Craft Silicon Ltd, is the engine that runs Sacco operations where over 9,000 members are registered, the system hosts the four digital channels for members to utilize: iConnect, USSD-*345#, SafCIRI for Android users and SafCIRI for IOS.
The system possesses additional modules such as Business Intelligence, Document Management System, Human Resource Management Information System, API Integration for Sacco Link and Pesalink and Bank Integrations. All the Sacco’s loans which comprise of long-term, shortterm, vendor loans and loan refinance were availed on iConnect to allow for easy application from remote locations.
During the year under review, the Sacco introduced digital loans approval, extended loans restructure offers and moratoriums to members who were directly impacted by the pandemic. To this end, the Sacco also ran a campaign dubbed ‘Jitokezee’, which saw the successful restructuring of Kshs 300 million of the loan portfolio, by extending a moratorium to members who experienced salary pay cuts, lost their jobs or closed down businesses.
The Society further reviewed the interest rates on loans to make the Sacco’s products easily accessible to members and observed strict adherence to the credit policy.
