Age of Digital Saccos: Kenya Police Sacco Feted for Excellence

Age of Digital Saccos: Kenya Police Sacco Feted for Excellence in Enterprise ICT at the CIO Annual Awards, After the Recent Launch of a State of the Art Digital Platform; ’Pambazuka’

The Sacco has embraced in full throttle, the era of digital disruption, in line with Challenge 2025, on the digitalization of the global Co-operative movement.

By June Njoroge

The Kenya Police Sacco, one of the key eminent actors in the Cooperative movement, continues to set pace for other co-operators in the age of digital disruption.

The highly esteemed Sacco has been feted at the CIO Annual Awards Competition; scooping the Gold Winner Award for recognition of excellence, in Enterprise Information and Communication Technology adoption in the Sacco sector.

The award was especially attributed to the recently launched world class technology digital systems dubbed ‘Pambazuka’, anchored in state of the art innovating technologies to serve members.

The launch of this unmatched and remarkable venture took place at the grand Villa Rosa Kempinski hotel. The Chief guests were the Cabinet Secretary for the Ministry of Interior and Coordination of National Security, Dr Fred Matiang’i; State Department’s Co-operatives PS Mr. Ali Noor Ismail; Inspector General of the National Police Service Mr. Hilary Nzioki Mutyambai; NPS Deputy Inspector General Mr. Edward Mbugua; ACCOSCA CEO Mr. George Ombado and CAK CEO Mr. Daniel Marube, among other key contributors of the Co-operative sector.

The Sacco has embraced the era of digital disruption in full throttle. This is in line with Challenge 2025 on the digitalization of the global Co-operative movement; an initiative by the World Council of Credit Unions (WOCCU).

“The launch of Pambazuka is not only a modern and innovative way of managing our Sacco services, but is a very strong statement that we have we have stepped onto the 21st century mode of managing our organizations; by embracing technology which will enhance transparency and accountability in the manner in which we provide services.” Stated Dr. Fred Matiang’i.

Kenya Police Sacco wins the CIO Gold Winner Award, for Recognition of Excellence, in Enterprise Information Technology adoption in the Sacco Sector,at the CIO Annual Competiton Awards.

Cabinet Secretary for Interior and National Security, Dr. Fred Matiang’i Inspector General of Police, Hillary Mutyambai, Principal Secretary of Cooperatives, Ali Noor Ismail, Kenya Police Sacco National Chairman, David Mategwa and CEO Solomon Atsiaya and GM ICT Tony Mutero at the Launch of Pambazuka in October 2020.

He further commended the Sacco’s National Chairman, Mr. David Mategwa and the Board, for the good management that has seen the Sacco grow to greater heights of success.

In reiteration, his sentiments were echoed by the Co-operatives PS Mr. Ali Noor Ismail,” The last 7 months have shown us that technology is the way to go, we congratulate and support the Kenya Police Sacco.”

M-Tawi is the mobile banking platform birthed from this digital transformation journey that the Sacco embarked upon in 2017; with the primary goal of providing members with a more efficient, convenient and interactive digital platform that enhances member experience.

Despite the Covid-19 pandemic, the Sacco managed to maintain the project timeline of this ambitious digitalization journey. The platform provides the best value for members because of its interactive and user friendly interface. M-Tawi is accessible to members on Android, IOS and USSD via *653# available on Google Play store and App store for download.

‘With the new system, the Society is operating a new core banking solution ERP and alternative business channels key among them being M-Tawi. A mobile banking solution available on both the App and utilizing a USSD code.” M-Tawi has been in particular a timely addition to our menu by offering members a lot of flexibility as we continue to embrace cashless transactions, in the mitigation of the Covid-19 pandemic.” noted the National Chairman, Mr. David Mategwa.

This digital journey commenced with a meticulous assessment of the then prevailing state of the systems, people and technological processes of the Society; followed by another of the cyber security

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preparedness whilst developing a strategic roadmap, for the governance and management of information and technology in the Society.

‘Our members are at the epicenter of this digital transformation, having noticed the gap during an analysis survey which necessitated for a radical transformation of the Society’s ICT infrastructure. With the new system we have automated manual tasks such as standing orders, loan recoveries, interest computation and posting’ stated the Sacco CEO, Mr. Solomon Atsiaya.

“It is my expectation that the new system will further enhance customer experience and achieve high level operational excellence, thereby cementing the Sacco’s positon as the market leader in the industry” stated the IG, Mr. Hilary Nzioki Mutyambai. The Sacco sought the services of the best ICT providers in the industry to ensure the best results; engaging

Kenya Police Sacco GM Operations and Strategy Mr. Simon Tanui hands over donations of Sports kits and Equipments to Kenya Police Hockey Team.

Kenya Police Sacco GM ICT & Business Innovations Mr. Tony Mutero, handing over donations of TVs, DSTV decoders to the ASTU football team.

top consultants in the country to ensure that the best project management services were observed. KPMG provided project management services whereas PWC provided quality assurance.

‘We at Intrasoft International are proud to be part of this deployment, we are pleased that our core banking systems for Saccos is at the heart of this new dawn.’ stated Mr. Alexandros Manos, the CEO of Intrasoft International; which was engaged in the development of the system.

‘A project like this one integrating profits with mobile banking and other channels brings great benefits, allowing Sacco members faster and more efficient on-time salary processing, loan processing

Kenya Police Sacco GM ICT & Business Innovations Mr. Tony Mutero, handing over donations of Sports kits to the ASTU football Team.

and access to new transactions such as funds to fellow members. It also enables instant service request capability that ensures members can access Sacco services from different locations and seamless omni-channel integration, which allows for the introduction of new channels such as internet and agency banking.

These systems ensure that members can interact with their Sacco account 24/7 from any location through their mobile devices.” He added. He further lauded the National Chairman, Mr. David Mategwa, and the Board of directors for leading them with a steady hand through the project maintaining focus at all times.

Kenya Police Sacco Scoops the 2020 GCR Award! Kenya Police Sacco has recently also scooped the ‘Best National Long and Short Term Financial Lender’ 2020 Award, by the Global Credit Rating Company (GCR) for the second year in a row. The agency affirmed ratings of BBB(KE) and A3(KE) respectively, with the outlook accorded as Positive.

This is attributed to strong capital position, adequate funding and liquidity, a solid risk management position and strong solid management under the leadership of the National Chairman Mr. David Mategwa.

The report reflected that the Kenya Police Sacco has a strong capitalization, solid risk position, stable funding structure and adequate liquidity. “The outlook is positive. This reflects our expectation of the Sacco’s cost of risk, continuing to outperform the sector and some normalization of earnings over the next 12 months.

We expect the capital position to remain strong supported by a GCR leverage ratio above 20%; driven mainly by good earnings and a conservative dividend

policy relative to peers.

The risk position is expected to remain in line with direct peers but better than the sector average, with credit losses expected to peak at around 2% over the outlook horizon.

The liquidity position is expected to remain adequate for the structure of funding.” The report indicated. In addition, it further stated that the funding and liquidity position of the Sacco reflects a very stable funding structure, with ‘non-withdrawable’ deposits accounting for 90% of total customer deposits in the 2019 financial year.

The Sacco’s funding structure has proven to be robust, evidenced by withdrawal levels not increasing sharply even with the ongoing pandemic. The deposit book is also very diversified, with the top 20 depositors accounting for less than 1% of total deposits.

The Sacco’s risk position is a positive ratings factor, better than the wider financial institutions sector.

“The Sacco’s strong capital position is a key rating strength, with a GCR Leverage ratio of 22.7% for the 2019 financial year. The capital position is structured around strong member capital contributions and supported by historically good internal capital generation (with return on assets in the 5% to 7% range over the past four years) and a lower than peers’ dividend pay-out ratio. GCR expects the strong capital position to persist into the long term.” The report indicated.

Kenya Police Sacco, highly ranked in the latest SASRA Sacco Supervision Annual Report. The distinguished Sacco was feted as the third wealthiest deposit –taking Sacco in the country, with assets worth Kshs 35 billion. It registered the second highest growth rate among the large-tier deposit taking Saccos, from 19.28

Kenya Police Sacco education drive at GSU Training School Embakasi.

Kenya Police Sacco Education drive at the ASTU training School in Gilgil.

% of 2018 to 20.28% in 2019 according to the latest Sacco Supervision Annual Report released by SASRA.

On the Sacco’s initiative in partnership with the state-backed Kenya Mortgage Refinance Company (KMRC), to bridge the gaping housing deficit through the provision of affordable mortgage products in line with the government’s Big 4 Agenda; the Sacco has already commenced rolling them out which was also highlighted at the launch.

“Through the Sacco’s new affordable mortgage products, there are houses built and reserved for police officers at Park road so that we can enjoy better quality of life under the Big 4 Agenda.” Mr. Fred Matiang’i noted.

CSR The Kenya Police Sacco continues to engage in Corporate Social Responsibility and Investment, in line with the 7th Co-operative principle on concern for the community. The Sacco donated sports kits and equipment to the Kenya Police hockey team. The ASTU football team also received donations of sports kits, equipment, TVs and DSTV decoders from the Sacco.

Country Member Education Drive Ensues The Sacco is back on the road again, for the second phase of the countrywide member education drive, in line with the 5th Cooperative principle on Education, Training and Information. It has been a great year of remarkable achievements for the prestigious Kenya Police Sacco and the best is yet to come in 2021.

Season’s greetings from Sacco Times Magazine to our highly esteemed clients. As the year draws to a close, we reflect on the past year and count you among our blessings. Our sincere gratitude goes to all of you, for the steadfast business support demonstrated in our many editions. It has been a challenging time for the Co-operative movement and affiliated entities in the wake of the Covid-19 pandemic. However, resilience has been our anchor and the holiday season is the perfect time to soak up some cheer. We wish you a Merry Christmas and a prosperous 2021.Wishing you a season of joy and cheer.

We appreciate our loyal clients and look forward to perpetuate our business partnership in 2021: Kenya Police Sacco , Imarika Sacco, Safaricom Sacco, Stima Sacco, Kimisitu Sacco, Harambee Sacco, Cosmopolitan Saccco, Imarisha Sacco, Boresha Sacco,Wakenya Pamoja Sacco, Ollin National Sacco, Finnlemm Sacco, Universal Traders Sacco (UTS), Tower Sacco, Mentor Sacco, Mombasa Port, NewFortis Sacco, Capital Sacco, Unaitas Sacco, Lengo Sacco, Dimkes Sacco, Tabasamu Sacco, Mwito Sacco, Stegro Sacco, Magereza Sacco, Transnational Times, Kisumu Teachers Sacco, Bingwa Sacco, Metropolitan Sacco Biashara Sacco, Skyline Sacco, Orient Sacco, Solution Sacco, Tai Sacco, Winas Sacco, Patnas Sacco, IG Sacco, Wevarsity Sacco, GDC Sacco, Kimbilio Daima Sacco, Ndege Chai Sacco,Ukristo na Ufanisi, Kwetu Sacco, Yetu Sacco, Shirika Sacco, Qwetu Sacco, Ukulima Sacco, Daima Sacco, Mafanikio Sacco, Shoppers Sacco, Jitegemee Sacco, Tabasuri Sacco, Kitui Teachers Sacco, Gusii Mwalimu Sacco, Southern Star Sacco, Elimu Sacco, Vitikas Sacco, Kenya Achievas Sacco, Kenya Bankers Sacco, Siraji Sacco, Umoja Wendani Sacco, Maisha Bora Sacco, Mudete Sacco, Hazina Sacco, Unison Sacco, Afya Sacco, Fortune Sacco,Teleposta Sacco, Waumini Sacco, Kenpipe Sacco, Mhasibu Sacco, Chai Sacco, Enea Sacco, Eco Pillar Sacco, Balozi Sacco, Taqwa Sacco, Lainisha Sacco, Synergy Financial Advisory and Taifa Sacco.

Merry Christmas Merry Christmas

AND HAPPY NEW YEAR 2021