Safaricom Sacco Celebrates its 20th Anniversary

‘During the year under review, we were able to meet key milestones in our digitization journey by successfully enabling iOS users access SafCIRI App, therefore enjoying all the services. Project CIRI as the touchstone, we were able to direct all our loan applications online on iConnect with guarantor approvals on SafCIRI. Member registration has been digitized with one being able to join the Sacco without having to fill papers” Mr Njoroge noted.

He further added that Customer Service being one of the key focus areas of the Sacco, members have been able to access services through the Customer Relations Platform on iConnect as well as the tawk platform on the Sacco’s website.

In light of the pandemic, the Sacco also revamped and restructured most of its products to meet the dynamic needs of its members. Pamoja loan is one of new products that the Sacco introduced, lending at the lowest interest rate in the market of 0.8%, payable in six months. Similarly, Karibu loan was also introduced but for new members at 1%.

Corporate Governance Similarly, corporate governance is of paramount importance and the Sacco exercises discipline and best practices, demonstrated in the good leadership of the Society. The Board through the Nominations Committee ensures that the Sacco leadership attracts a good mix of skills and competences by advertising and interviewing potential candidates to Board positions.

In an effort to increase membership, the Sacco has been running the ‘Mlete Ndani’ campaign, encouraging members to onboard their spouses, children and colleagues; in tandem this move will avail more guarantors for members.

The Road Ahead. In 2021 and beyond, Safaricom Sacco looks to drive innovation through the implementation of technology driven products and services; developing new business processes and practices and redefining models for collaboration and teamwork. The Sacco looks to gain full compliance from SASRA and other regulatory requirements including Anti money laundering laws.

The Sacco also projects to grow revenues in excess of Kshs1 billion. Safaricom Sacco continues to encourage its members to patronize services on SafCIRI and iConnect for all their dynamic Sacco needs. Improved customer service will be another key area of focus, with the Sacco looking to exceed members’ expectations in all areas of service delivery in 2021.

A Section of guests present at the 20th Safaricom Sacco Anniversary. The Nairobi County Director for Co-operatives Mrs Dolphine Aremo adrressing guests at the Safaricom Sacco 20th Anniversary.

The Westlands Sub-County Co-operative Officer Mrs. Margaret Kamau, addressing guests at the Safaricom Sacco 20th Anniversary at Zen Gardens, Nairobi.

Safaricom Sacco Hon. Secretary spearheading the ceremony to mark the Sacco’s 20th Anniversary at Zen Gardens.

Safaricom Sacco Business Innovations and ICT Manager Mr. Kelvin Ebole taking guests through the technology prowess of the SafCIRI online platform.

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These regulations also apply to virtual and diaspora Saccos, the Non-deposit taking business in which the Sacco Society mobilizes membership through subscription to membership and share capital through digital or other electronic payment platforms and Nondeposit taking business in which the Sacco Society mobilizes memberships and subscription to its share capital, from persons who are ordinarily resident outside the country respectively. A Section of License Application Requirements

i. Duly completed application for authorization. ii. Duly completed the “fit and proper test” form as prescribed in the regulations for each of the Sacco

Society’s; members of the Board of Directors; members of the Supervisory Committee; Chief

Executive Officer; and Senior Management staff including but not limited to the heads of the information communication and technology; the internal audit; and the credit management; and the finance functions. iii. A certified copy of the Sacco Society’s registration certificate issued under the Co-operative Societies

Act Authorization Requirements. iv. A verified official notification of the Sacco Society’s registered head office, and any other place of business. v. A certified copy of the Sacco Society’s bylaws. vi. At least a three-year business plan and feasibility study of the Sacco Society to be authorised detailing the vision and mission, scope and nature of business operations, projected profitability to achieve the minimum prudential standards, control measures and monitoring procedures. vii. A certified extract of minutes of the general meeting resolution authorizing the Sacco Society to conduct specified non-deposit taking authorization. viii. The name of the proposed chief executive officer and the staffing level of the SACCO Society’s key staff. ix. Certified copies of financial statements for the preceding three years, where applicable. x. Evidence that the Sacco Society has adequate capital. xi. An application fee of Kenya shillings three thousand, appropriate institutional infrastructure, including adequate working space. xii. A Management Information System (MIS) capable of performing and accounting for all transactions and providing the minimum reports required by the Authority, which at the minimum should be able to provide an audit trail report, adequate security features, 10 integration of the operations, capacity for future expansion, real time and relational data base management. xiii. An appropriate risk management policies and internal control systems. xiv. A suitable organizational, governance and management structure.

Compliance Regulations for Non-DT Saccos by SASRA

The new regulations stipulate that SASRA has the mandate to undertake and oversight several key functions on the targeted Non-Deposit Taking Saccos such as, Shares and Deposits; Liquidity Management, Capital Adequacy requirements, Governance, Consumer Protection, Information Security, Credit Risk Management, Risk Classification, Asset Provisioning, Investment and Associated Entities, Regulation, Supervision, Preservation and Business Continuity.

The new regulations also target the rapidly snowballing digital or virtual Saccos, which are non-deposit taking Saccos that mobilize membership and subscription to share capital through digital or other electronic payment platforms; which shall also come under SASRA supervision on the 1st of July 2021.Diaspora Saccos or those that mobilize membership and subscription to their share capital from persons who reside outside the country, shall also come under supervision.

The Regulator estimates that there are 3,626 Non-Deposit taking Saccos in the country boasting a membership of 1.5 million, among them only 400 meet the standards set under the 2020 regulations. The total assets of non-deposit-taking Saccos are estimated at about 188.02 billion, with total deposits at Kshs 140.54 billion and loans at Kshs 136.89 respectively.

The regulations also require that the licensed Non-deposit taking Sacco, to at all times display a valid authorization certificate in a conspicuous place within its head office; and a certified copy of the authorization certificate in its other places of operation. Audited financial results for three years up to December 2020 is also a primary requirement and the provision of evidence that they have adequate or sufficient capital to undertake the business. The 2020 regulations also stipulate that it will be mandatory for NDT Saccos to have a core capital of not less than 5%of their total non-withdrawable deposits, of at least Kshs 5 million.

Failure to Obtain Authorization In case a non-deposit taking Sacco, which ought to apply and obtain authorization under the SASRA regulations fail to do so within the prescribed time, SASRA is mandated to: i. Issue an order prohibiting the Sacco society from taking any further non-withdrawable deposits with immediate effect. ii. Notify members of the public and employers to immediately stop making any further remittances of non-withdrawable deposits to the Sacco society. iii. Direct the bankers and any other payment service providers to cease and desist from receiving any funds on the accounts or on behalf of the Sacco society. iv. Publish and publicize that the Sacco society is not authorised to take any further non-withdrawable deposits. v. Take any other supervisory enforcement actions and impose any other appropriate sanctions to protect the interest of the members of the public, in accordance with provisions of the Act. vi. Make recommendations to the Commissioner for Cooperative

Development and relevant county government as may be appropriate.