Age Of Digital Saccos: Safaricom Sacco Soars High In 2020

By June Njoroge.

Safaricom Sacco continues to register outstanding stellar performance on many fronts, making it the most viable Sacco of choice to join in 2020.

Despite the turbulent wave that hit the country’s economy, almost crippling it to a slump, the Sacco was able to weather it all and register achievements like being awarded the Best Mobile Solutions Provider in the 3rd Digital Technology Excellence Awards.

Besides ranking in the Tier 1 league, the Sacco, is pioneering and illuminating the path for other Saccos, into the new age of digital disruption as the future of the Co-operative Sector.

Speaking during the 19th Annual General Meeting held at Desmond Tutu Conference Centre on 29th February 2020, the Safaricom Sacco Chairman, Mr. Paul Msava, Chief Executive Officer, Mr. Joseph Njoroge and other board members, shared with members both the achievements and challenges encountered during the year under review.

In attendance was the Chief Guest, David

Obonyo, the Assistant Commissioner for Co-operative Development and Mrs. Dolphine Aremo, the Nairobi County Director of Co-operatives.

Financial Performance The Chairman noted that the 2019 overall performance was good in terms of deposits, revenue and loan book. The Sacco gross loan portfolio grew from Ksh5.2 B in 2018 to 5.8 B during the year under review, with the disbursement of a total of 14,649 loans worth Ksh.4.5B.

This was an improvement from Ksh. 4.1B in 2018 and 3.9B of 2017.During the previous financial year, the Sacco’s total assets rose to Ksh 6.7B from 5.9B of 2018, registering a 15.5% growth; with members’ deposits increasing to Ksh.5.5B from Ksh 4.7B in the same period under review.

Members had approved the maximum borrowing power of Ksh 600 Million which they wished to maintain in this new financial year.

The Society has continued to register exponential growth in financial performance, catapulting it onto the pedestal of the league of giant Saccos in the industry, sound in man

agement and well capitalized to weather any turmoil in the micro and macro environ- ments.’ reiterated the Sacco treasurer whilst delivering his annual report to members.

‘I want to commend Safa- ricom Sacco for accommodat- ing the youth, as most of the members present and even the board members are in that age-group. Gone are the days that Saccos were known to be- long to an older generation.’ David Obonyo said in his key- note speech.

Age of Digital Saccos. The dawn of the digital age has seen the rise of disruption strategies, being adopted by Saccos across the board as the future of the lucrative sector.

Innovation being one of the core values of the Sacco, among Customer Focus, Re- liability and Integrity, new systems have been integrated and implemented to meet the ever-changing customer de- mands and ultimately trans- forming the Customer experi- ence.

Of achievements there was a lot to go on, starting with Project CIRI, which is the very definition of technology excellence, that has enabled members to transact 24/7 at their convenience from the mobile and SafCIRI App plat- forms.

‘Leveraging on ICT for service delivery is at the heart of the Sacco, to en- sure customer satisfaction.’ said the Chairman in his annual report.

Additional modules such as Bank integrations, Sacco Link, PesaLink, API Integration, Human Resource Management Information System, Document Management system and Business Intelligence have also been employed by the Sacco in their operations.

Safaricom Sacco Embraces the Big Four Agenda Under the Affordable Housing Pil- lar. The Sacco qualified among the 11 giant Saccos selected by the Kenya Mortgage Re- finance Company to buy shares, in an ini- tiative of the National Treasury and World Bank to support the affordable housing agenda by providing secure, long- term funding to the mortgage lenders conse- quently increasing the availability and affordability of mortgage loans to Kenyans.

‘The entry of KMRC where the Sacco is a shareholder, the product is set to ap- peal to many and enable the Sacco to provide affordable housing products in the buy and build model,’ said the CEO, Mr. Joseph Njoroge. This in line with the government’s Big 4 Agen- da.

Electronic Registration and Voting. Through their online plat- form, the Sacco has made it possible for members to register electronically and carry out voting, which was launched during the 19th Annual General Meeting and

proved successful. ‘Electronic voting has a plethora of benefits, its efficient, consumes less time, cost effective and ensures transparency in the voting system.

The era of chaos encountered during AGM’S that would take hours on end, is now a thing of the past. ‘said the Chairman Mr. Msava.

Fraud Mitigation & Integrity. In this digital age, cybercrime has become rampant and the Sacco has borne the brunt of this vice, having suffered a cyber-attack in 2018 and a similar incident in the year under review.

Consequently, the Sacco, with utmost urgency adopted pre-cautionary anti-fraud strategies to curb this wound. Enterprise-Wide Risk Management (ERM) Framework has been adopted by the Sacco to improve risk management practices consequently safeguarding the Sacco. This aims to facilitate anchoring of the risk management function of the Sacco.

Benevolent Plan Dubbed ‘Last Expense Plan’ The Sacco has partnered with Kuscco Mutual Assurance, to offer a cover catering for bereaved members dubbed the ‘Last Expense Plan’. The cover provides for the payment of the sum assured to take care of funeral expenses; with a maximum number of 5 claims

Safaricom Sacco Online Member Registration during the 19 th AGM.

Members commence the electronic voting exercise during the 19 th Safaricom Sacco AGM.

Members are guided on how to go about the electronic voting on their mobile phones at the 19 th Safaricom Sacco AGM.

A member choosing his candidate of choice at the convenience of his mobile phone at the 19 th Safaricom Sacco AGM.

in any cover period.

CSR Corporate Social Responsibility is at the heart of Safaricom Sacco, and every year they reach out to engage in noble courses that empower the lives of others.

In the year under review, the Sacco visited Kenyatta National Hospital, where they settled the bills for some needy patients. In addition, they donated essential equipment to aid in the operations of the hospital hence changing the lives of others.

Way Forward 2020 portends so much promise for Safaricom Sacco as it strives to scale the heights of success. The Sacco seeks to attain the ISO certification, in line with the 2019-2023 strategic plan.

The Sacco also intends to patronize their mortgage product and their partnership with KMRC.The Sacco also will be focusing on products targeting overall sustainable growth.

Even in the wake of the Covid -19 pandemic, Safaricom Sacco’s products and services are very much available and accessible to their members through their online platform.2020 has dawned bright for Safaricom Sacco, and is undoubtedly one to watch.

BOSA SAVING PRODUCTS • DepositContribution BOSA LOANS LONG TERM LOANS • DevelopmentLoan • Premium Loan • SuperPremium Loan • CarLoan • Miradi Loan • Ustawi/MortgageLoan SHORT TERM LOANS • Education Loan • SmartHomeLoan • Pamoja Loan FRONT OFFICE SERVICES ACTIVITY (FOSA) • Savings/SalaryAccount • Junior’sAccount • JazaJazaAccount • HolidayAccount • CorporateAccount FOSA LOANS • Fosa SilverAdvance • EmergencyLoan • BusinessLoan • InsurancePremium VIRTUAL SACCO SERVICES • RununuAdvance • KonaAdvance

“Empowering You” SACCO PRODUCTS BOSA SAVING PRODUCTS

 Deposit Contribution

BOSA LOANS LONG TERM LOANS

 Development Loan  Premium Loan  Super Premium Loan  Car Loan  Miradi Loan  Ustawi/Mortgage Loan

SHORT TERM LOANS

SACCO PRODUCTS

Covid-19: Co-operatives thrust into a Conundrum in the search for Liquidity Contingency Plans

FROM PAGE 5

of the year, will undoubtedly experience an indefinite delay due to the pandemic.

In a move to salvage the situation, the regulator issued a set of guidelines for Saccos to adhere to, such as the requirement to file daily liquidity reports, filing of monthly loan performance reports as opposed to pre-Covid-19,where it was done quarterly and the reduction in lending.

On the other hand, the Kenya Union of Savings and Credit Co-operative Societies (KUSCCO) is championing for the release of KShs.3 billion, in withheld statutory deductions from employers, to enable Saccos deal with the COVID-19 pandemic.

‘The rapid rise in loan demands calls for parastatals, ministries and private institutions to remit the statutory deductions to Co-operatives to enable them to mitigate the effects of the Coronavirus.’ George Ototo, the Managing Director said.

The propositions made by the regulators across the board, are for Saccos to offer moratoriums to their existing borrowers and disburse emergency loans of one monthly instalment, to existing borrowers who were not in arrears as at precorona.

Engaging with employers to promptly remit members contribution and clearance of any pending bills, is also among the measures that will aid in liquidity management.

The formulation of contingency funding plans by Saccos, is of utmost urgency to handle the liquidity crisis. According to the Kenya Sacco Act, article 13; the Sacco board of directors is responsible for formulating liquidity policy, to manage day to day operations.

Covid 19 has caused triggers challenging liquidity management such as deteriorating asset quality and capital levels, operational losses, unanticipated loan demands, share and deposit withdrawals, significant reduction in principal and interest cash inflow.

The recommendations for Sacco liquidity management in Kenya are divided into a quadrant, its time to recapture, re-plan, re-budget and respond in the wake of the Coronavirus disaster.

Saccos should also take precautionary measures in terms of ensuring their online services are running efficiently, to minimize visits by members to the brick and mortar offices.

never proved more relevant in the Co-operative sector; Saccos that have moved their services online are leveraging on the platform as their safety net, as members can access services at their convenience through mobile and internet banking.

The 5th edition of the annual Sacco Leaders Convention could not have been more timely held in late February, with the focus being embracing and investing in innovative technology driven strategies and solutions. This was reiterated by the World Council of Credit Unions (WOCCU) in their 2020 global regulatory update.

The inculcation of feasible solutions to weather these turbulent times is most pressing, to ensure the sector does not crumble amid the Covid-19.

In the daunting quest to find a cure, humanity can only adhere to the stipulated precautionary measures to curb the spread of the disease and hope that the cure is found sooner so that normalcy returns.

SACCO TIMES DOMINOES Has quarantine taken a toll on you? Sacco Times Magazine has got your back. Your mind doesn’t have to be on lockdown. Try solve our word search puzzle on Sacco lingo:

SACCO TIMES DOMINOES Has quarantinetaken a toll on you? SaccoTimes Magazine has got your back. Your mind doesn’t have to be on lockdown. Try solve our word search puzzle on Sacco lingo:

D I V I D E N D S U R P L U S W E A G M C A P I T A L Y Z H Q X F U C Y B E R C R I M E A F O S A S S E T B A S E D T R S A S R A E X P E N S E S R E B D R A C L I A B I L I T E S U M E N C O T Y N I N N U V A D E B T O A H C Q V J T R E V G L A O X N O U E G B E N N I E E T R W M I S C K W R O U N T C E S E D T R Z L F E V E G X T S Z I M E M B E R S E F S H I O T E D I S O L A T R U C V O Y N I Z C M S Q U W K N A S N T T E S T E A U D I T D K

Investments Liquidity Rebates Loan Liabilities Turnover Revenue Guarantors Dividends Income Surplus Budget Cybercrimes Asset Base Shares Income Interest Capital Audit Sacco

Investments Liquidity Rebates Loan Liabilities Turnover Revenue Guarantors Dividends Income Surplus Budget Cybercrimes AssetBase Shares Income Interest Capital Audit Sacco Expense Debt Default Savings Sasra Fraud AGM Credit

Expense Debt Default Ready to be Riddled?

Savings

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Try solve the riddle and we shall reveal the answer in our next edition, in the Sacco Times Magazine Dominoes section, so look out for that.