Of Untold Sacco Stories: Member Chronicles-Co-operatives

UNITY IS STRENGTH

INTRODUCTION 2. FIXED DEPOSIT ACCOUNT. balance. 3. CHAP CHAP LOAN This is an account where deposit is made for a fixed Available for Boda boda operators five (5) times

IMARISHA SACCO SOCIETY LIMITED was period/term to earn an interest. The Minimum 2. PREMIUM LOAN the savings. registered in 1978 and is rated one of the top balance is. Ksh. 20,000 • The premium loan is open to all members • 1’’ loan maximum repayment period - 1 Year.performing and well managed saccos in the vibrant co-operative movement. The Sacco compliments once effort to save by offering: • The interest rate is competitive and negotiable. • • A member can take maximum loan of 3 times deposits held Repayment period: 60 months • • Affordable low Interest rate. Minimum saving period - Six (6) months

It’s no longer a preserve for teachers only, as it • Interest: 1% p.m interest rate on reducing has since opened its doors to the general public, 3. PARROT ACCOUNT balance. 4. CHAMA LOAN salaried people, business people, farmers, This product allows our members to encourage • It also attracts 1.5% premium interest recovered This product is for self help groups, associations, institutions/corporates, chamas/registered groups, their children to save. up-front chamas

Non-Governmental Organizations (NGOs), National Government and County Government employees etc. • • • Open for children aged between 1-18 years. Minimum opening balance is Kshs. 1,000. Earns interest with a balance above Kshs. 5,000. 3. RE-FINANCE LOAN • This loan is open to all members wishing to • • Eligible members must have other micro loans N/B Terms and conditions apply

BRANCHES • • Withdrawals limited to 3 times annually. Accounts operation by parents or guardians. • refinance their existing loans. Repayment period is 48 months. 5. SOKO LOAN. • No ledger fee • Interest rate: 1% p.m interest reducing balance • Available for market vendors

The sacco currently has ten FOSA Branches; • Must have an active FOSA account.

Kericho (the head office), Bureti (Kericho County) ADVANCES AND FOSA LOANS 4. EDUCATION LOAN • Affordable low Interest rate

Bomet, Mulot, Ndanai (Bomet County), Keringet (Nakuru County) Awasi (Kisumu County), Nandi Hills (Nandi County), Eldoret (Uasin Gishu 1) SHORT-TERM ADVANCES This credit facility allows members to solve day • • This loan is meant for secondary, college or university fees. A member can take a loan of up to 3 times • • Repayment period 7 days Based on regular and consistent savings

County) & Narok Branch (Narok County) to day problems that involve small money such as deposits held. rent and school fees. It targets individuals whose • Repayment period: 20 months 6. MUWA LOAN.

OUR VISION salaries are channeled through FOSA accounts. • Interest rate: 1% p.m on reducing balance. • Available for sugar cane farmers and Eligibility: 90% of net salary Intermediaries

A sacco with customer-centric experience Repayment: 1 month 5. EMERGENCY LOAN. • Affordable low interest rate

OUR MISSION Interest rate: 10% • This loan is meant for unforeseen circumstances like burials, natural calamities and court orders. • Repayment period 12 months

Providing efficient financial services delivery to 2. LONG-TERM ADVANCES This advance runs for 6 months with possibility • A condition is that a member should have served all other loans. 7. KILIMO ADVANCE customers through continuous innovation. of extension to one year in future. This credit • Repayment period is capped at 12 months. Must have an active FOSA account facility enables our members to meet the financial • Interest Rate: 1% p.m. on reducing balance • Affordable low Interest rate

OUR GUIDING CORE VALUES AND obligations which require money which is more • Maximum repayment period 10 months

PRINCIPLES than one’s salary. It target individuals whose 6. INTRODUCTORY LOAN. • Farm payout for a minimum of 4 months salaries are channeled through FOSA Accounts. • This loan is available to new salaried members • • God first Team work Eligibility: 4 Times one’s net salary. Repayment: 6 Months. • A new member is eligible to a maximum loan of Kshs 200,000 where a third (1/3) is taken to 8. KILIMO LOAN. • Effectiveness and efficiency Interest Rate: 14%. member’s deposits • Must have an active FOSA Account • Transparency/accountability • Interest rate is 1% p.m on reducing balance. • Affordable low Interest rate • Creativity and innovation 3. INUA LOAN. • Repayment period: 48 months. • Repayment period 12 - 24 Months • Equality This loan product targets individuals whose • 5 % Net loan to FOSA account retained as • Equity salaries are channeled through a FOSA Account. 7. BOOSTING SHARES. kilimo deposits • • Integrity Respect Eligibility: 5 Times FOSA non-withdrawal deposits Repayment Period: 24 Months Members have the option to increase their deposits on top of normal check - off system through:• Pay Cash. • Must have channeled farm payout for at least 4 months

MEMBERSHIP REGISTRATION Interest Rate: 14% per annum. • • Capitalization of part of the loan applied. Standing Order. 9. KAHAWA LOAN PRODUCTS • Registration fee Ksh. 360 only 4. DARAJA LOAN. • Latest payslip & a photocopy of national ID This loan product targets individuals whose 8. RECOGNITION OF BEST SAVERS a. CHERRY PICKING ADVANCE • Minimum monthly share contribution of Ksh. salaries are channeled through a FOSA Account. Best savers are recognized annually. • Available to coffee farmers 1,000 FRONT OFFICE SERVICE ACTIVITIES (FOSA PRODUCTS) Eligibility: 3 Times FOSA non-withdrawal deposits Repayment Period: 36 Months Interest Rate: 14% P.A. MICRO-CREDIT PRODUCTS 1. PAMOJA LOAN. • • • 12 months repayment period One must be a member of FCS Farmers borrow through FCS 1. SAVINGS ACCOUNT OTHER FOSA SERVICES with membership of 5 -15 members. The group b. PARCHMENT ADVANCE

Members use this account for; is required to have a mandatory savings of Ksh. • Available to coffee farmers • Savings, where deposits & withdrawals are • M-lmarisha {Mobile banking) 500 weekly per member for a minimum of two • 12 months repayment period • made at any time. Interest on savings is paid annually at market rates. To channel other payments as those from tea, coffee, sugar cane, milk etc. hence qualify to • • Standing order- an internal instruction by members to have repayment of their loans effected through their FOSA accounts SMS alerts- to notify members whenever any months in order to qualify for the loan. Interest charged is 14% per annum straight-line. Requirements are as follows:• Registration certificate and By- laws of the • • One must be a member of FCS Applied when members await payment from marketers. apply for proceeds advance and loans. transaction is done group. • Salaries can be channeled through this account • in their accounts • ID photocopies and passport size photos of c. FARM INPUT LOAN thus one can apply for salary advances, lnua • Call center service- 24/7 officials. • Available to coffee farmers loan and Daraja loan. • Cheque book • Registration fee of Kshs. 300. • 12 months repayment period • Payment of BOSA & FOSA loans applied by members is done through this account • • • Sale of Banker’s Cheques. A.T.M banking. M-Pesa The loan is granted in levels i.e 1st level 20,000/• • One must be a member of FCS 4 times micro savings

Target Group: 2. INDIVIDUAL LOAN/ BINAFSI • Farmers borrow through FCS

Salaried people, Business people, Farmers, BACK OFFICE SERVICE ACTIVITIES This product is available for individual business institutions/ Corporates, Chamas/ Registered (BOSA PRODUCTS) people with registered premises I Companies. FEEDBACK groups, Non- Governmental Organizations • Savings for a minimum of six (6) months (NGO’s) National County and County 1) DEVELOPMENT/NORMAL LOANS • Four (4) times deposits which attracts We appreciate and encourage members and

Government employees. • This product is open to all members affordable Interest rates the general public to give feedback; complaints, • A member can take maximum loan of 3 times • 1st loan Repayment period is 12 - 48 Months. suggestions and compliments in writing through;

Requirements: deposits held Email: customercare@imarishasacco.co.ke. • National Identity Card. • Repayment period: 60 months N/B: Terms and conditions apply or written comments can also be put in our • Passport size photo taken free on opening of • Interest: 1% p.m interest rate on reducing suggestion boxes at any of our b ranches. the account. This Micro-Credit facility is available to groups

HEAD OFFICE Moi Highway, Kerico – Nakuru Road | P.O. Box 682-20200, Kericho | Cell: 0709 758 000

16 SACCO TIMES | OCTOBER - NOVEMBER 2020 Email: kerichohq@imarishasacco.co.ke / Info@imarishasacco.co.ke | Website: www.imarishasacco.co.ke

Of Untold Sacco Stories: Member ChroniclesCo-operatives Transforming Lives

By June Njoroge.

Savings and Credit Cooperative Societies (SACCOS), have been greatly impacting the lives of their members and communities; enormously contributing to the socio-economic growth of the country. Saccos make up about 45% of Kenya’s Gross Domestic Program (GDP).

There are many untold stories by members, who have reaped the fruits of being an integral part of the Sacco model, the only business model, which dictates that they are the owners and customers of the entity.

The myriad benefits earned by members, have led to the rapid proliferation and burgeoning of the Sacco movement, ranking the country as the first in Africa and the 7th, in the world, according to the World Council of Credit Unions(WOCCU).

Sacco Societies Regulatory Authority (SASRA), estimates that there were 13,200 registered Saccos, with 175 of them under its regulation, as of December 2019.

Many members have been the beneficiaries of the array of products, offered by Co-operatives; from savings and loaning products, insurance services, mortgage products, asset financing among many others.

Loaning products especially have aided many members, to start successful business ventures, which consequently has had a ripple effect, whereby, it has created employment opportunities for others, providing a source of livelihood for their families. The Ministry of Co-operative Development, estimates that, 80% of Kenya’s population, derives their income either directly or indirectly through Cooperative activities.

Many members have also benefited from education loans, especially to facilitate their children’s higher education in tertiary institutions, across the country. Several Co-operatives, also have an insurance firm like K-Unity Sacco, partners with Mapa Insurance Agency, to provide maximum insurance protection to all members and the general public, in case of loss of life or property.

This encompasses personal life, Micro Insurance, SME’s and Corporates. Most Saccos have a benevolent fund, that comes in handy in case members are bereaved. Emergency loans in case members experience such incidences are availed by most Co-operatives.

For many members in different Co-operatives, home ownership, has been made possible, through affordable home loans and mortgage products. Just recently, Harambee Sacco, has become the first Sacco, to roll out the long awaited mortgage product, in partnership with the state backed, Kenya Mortgage Refinance Company (KMRC), at an annual subsidized interest of 7%. KMRC has approved two mortgage products; the Harambee Jenga loan, where borrowers will be facilitated to build houses on their own parcels of land; and the Harambee Home loan, which will enable members to purchase readily built houses.

KMRC will be lending to banks and financial cooperatives at an annual interest rate of 5%, enabling them to write home loans at between 7% to 9%, lower than the average market rate of 11.9%, making it 42% cheaper.

Kenya Police Sacco and Ukulima Sacco, have also rolled out new mortgage products, in partnership with the Kenya Mortgage Refinance Company (KMRC); being among the chosen Co-operative shareholders. Other giant Saccos, chosen for this partnership, will soon be launching theirs; they include: Stima Sacco, Safaricom Sacco, Bingwa Sacco, Imarika Saccco, Mwalimu National Sacco, Tower Sacco and Unaitas Sacco.

The initiative between the Kenyan Government and the World Bank, to support the affordable housing agenda, by providing secure, long- term funding to the mortgage lenders; consequently, increasing the availability and affordability of mortgage loans to Kenyans, is truly a godsend.

This partnership, led to the establishment of the Kenya Mortgage Refinance Company (KMRC) and the National Housing Development Fund (NHDF); under the National Treasury, which will work with specific Savings and Credit Co-operative Societies (SACCOs) to deliver affordable housing units. Currently 11 Cooperatives have been selected after meticulous evaluation. This is in line with the Big Four Agenda under the affordable housing pillar.

Among the measures taken to accelerate the realization of Vision 2030, H.E. President Uhuru Kenyatta birthed the Big Four Agenda: Food Security, Affordable Housing, Manufacturing and Affordable healthcare for all. Decent affordable housing has been a quagmire, with a deficit of almost two million houses, countrywide.

The annual production is at only 50,000 units as opposed to the targeted 250,000 units. Under the agenda, Kenya aims to provide 500,000 affordable housing units by 2022.Saccos continue to transform the lives of their members and the sector is bound for exponential growth and expansion.