CO-OP NEWSPAPER

Mercy Njeru, KUSCCO

Evans Sichangi, Trans-National Times Sacco chairman

Charles Kaba, Qwetu Sacco CEO Daniel Marete, Solution Sacco CEO

Isedorius Agola, chairman KAFOSA

Major milestones for Co-op sector in 2022

By Azael Masese

As the curve of the Covid-19 pandemic tipped down in 2021, the cooperative sector roared back to reclaim its glorious spot as a financial solutions favourite among Kenyans.

The resurgence of the resilient sector was typified by the 100th Ushirika Day celebrations that took place mid this year after a two-year hiatus, marking a complete come back to set a new stage replete with purpose and hope.

The sector’s growth has once again been pegged on critical market segments; notably asset base, deposit portfolio, loan book and income.

Albeit with single digit percentage point growths, the positive deviation is the clearest indication of the sector’s spirit that never says die.

To sustain the gains reported, major regulatory and policy shifts have been made in 2022.

Standalone ministry

The creation of a standalone Cooperative and MSME ministry was hailed as a masterstroke, with many stakeholders tipping it as the best bet for a more competitive sector among peers globally.

Inasmuch as Cabinet Secretary (CS) Simon Chelugui noting that cooperatives and MSME have a symbiotic relationship, to many, the creation of the ministry will enhance decision making processes.

With Patrick Kilemi Kiburi taking over from Ali Noor Ismail as Principal Secretary (PS), expectations could never be higher considering the huge steps already taken by his predecessor.

Hustler Fund

Saccos have been identified as key players through which Kenyans will access the Ksh50 billion Hustler Fund; a major plank of President William Ruto’s campaign.

The fund seeks to enable Kenyans access cheaper capital to engage in income generating activities.

Since its launch on November 30, 2022, billions of shillings have already been disbursed to Kenyans.

Sacco Depositors Guarantee Fund

The regulations of this fund were approved this year. For many years,

The cooperative sector has steadily roared back to reclaim its glorious spot as a financial solutions provider. The sector recorded single digit percentage point growths, a clear indication of the sector’s spirit that never says die.

members have reeled in huge losses in the unfortunate event that a Sacco collapses.

However, the situation is set to change as members will be cushioned against any financial calamity visiting their Saccos as they will be guaranteed protection with deposits of up to Ksh100,000.

This will restore public confidence and reassure members of the safety of their investments.

Sacco Central

The creation of the Kenya Sacco Central Liquidity and Shared Services Cooperative Society Ltd (Sacco Central) marked a major milestone in the country’s Sacco sub-sector.

The platform will enable Saccos to shore up resources under one platform besides sharing a common ICT platform.

Pooling resources will address liquidity challenges as those with excess cash can lend to their peers in what is called inter-lending in the banking in-

dustry.

In the technology sphere, Saccos with limited resources can be allowed to use the ICT platform at subsidized rates compared to investing in the same, which is more often expensive.

The platform will allow Saccos' entry into the National Payment Sys-

tem. The same was approved by the Cabinet in May and is awaiting Parliament’s approval.

National Cooperative Policy

The review of the National Cooperative Policy that resulted in Sessional Paper No 4 of 2020 is a boost that will put the cooperatives on a growth trajectory. It is anchored on the theme ‘promoting cooperative societies for industrialization’.

The policy will identify contemporary challenges facing cooperatives and how to address them.

Top on this is to enable cooperatives participate in value addition and manufacturing in the country, partly through rationalizing the role of the national and county governments to ensure harmony in how they address issues affecting the industry.

Spire Bank buyout

Equity Bank acquired troubled Spire Bank owned by Mwalimu National. The acquisition brings to an

end a long torturous journey for the bank that has seen Mwalimu National spend huge resources trying to resuscitate it.

This is also a lesson to Saccos that buying a commercial bank, whose functions are similar to theirs, does not augur well with members’ investment.

For background check, Mwalimu National had topped the charts as the wealthiest Sacco with an asset base of about Ksh60.60 billion by the close of December 2021.

Coffee Bill 2020

The Bill aims at ensuring that coffee factories and societies only take loans with the approval of farmers. Any loans taken in contravention will be statutorily moved into personal loans of the officials of the offending factory or Society.

It seeks the regulation, development and promotion of the coffee sector, besides reintroducing the coffee levies abolished in 2014 and attaching a coffee research levy at no more than 1 per cent of the gross coffee proceeds.

At the height of coffee farming in Kenya, production was at 140,000 metric tonnes, but has since shrunk to about 40,000 metric tonnes. The Bill thus seeks to boost coffee production and ensure it occupies a special place in revitalizing Kenya’s agricultural sector.

Sacco faces in government

Following the 2022 General Elections, notable Sacco top managements and Boards of Directors have been appointed to the new government.

Notable are Stima Sacco Board Chair Rebecca Miano, who was appointed CS for the East African Community, Arid and Semi-Arid Lands and Regional Development.

Miano, who served at KenGen, is one of the few Sacco players to be appointed as top government officials.

Former Eco-Pillar chief executive Fred Lourien was elected West Pokot County Assembly Speaker. Mr Lourien had been at the helm for several years and has been replaced by Linus Likoria.

The Cooperative sector has a membership of more than 14 million and some feel that more should be appointed into the government at the national and county levels.

New KCC upgrade boost to farmers’ livelihoods, cooperative sector

By Azael Masese

Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Cabinet Secretary Simon Chelugui has underscored the role of New Kenya Cooperative Creameries(New KCC) in supporting Kenya’s cooperative movement.

Speaking during a recent visit and tour of the processor’s Dandora plant, Chelugui disclosed that since 2016, the government had pumped Ksh2 billion into New KCC plants countrywide to enable the cooperative mop up excess milk during the rainy season and convert the same into powder to be released during the dry season.

“The investment is very important in ensuring stability of food security and prices,” he said, adding that the modernization programme seeks to upgrade all farmers’ cooperative cooling plants to

minimize post-harvest losses.

Once achieved, this will greatly improve dairy farmers’ earning and their contribution towards cooperative societies and Saccos.

A number of cooperative societies, notably in Mount Kenya and Rift Valley, rely on dairy farming for their contribution to the societies and Saccos.

“The government is working on ensuring dairy farmers get animal feeds which has been a challenge. What dairy farmers are processing is a third of what is being utilized by the milk caucus. We can mop up the amount by modernizing our plants,” he said.

He noted that with more than 120 dairy products on offer, New KCC can command a controlling market share and play a key role across the dairy sector.

He noted with concern that Kenya

has been sourcing for feeds and sunflower from Uganda and Zambia and that it is time we started contractual farming.

New KCC Board Chair Anthony Mutungi noted that coolers will enable dairy farmers to give out their surplus milk to a processor and reduce the amount sold informally.

Former President Uhuru Kenyatta and his then Deputy William Ruto launching the ultra modern UHT production unit in Eldoret in June 2017. File Photo

New KCC

Managing Director Mr. Nixon Sigey said they are targeting to replenish the milk powder during the short rains to stabilize the milk prices.

He regretted that the biggest challenge experienced by dairy farmers is the high cost of animal feeds.

“With the support and intervention by the government, we are putting in

place programmes that will go a long way in addressing the cost of animal feeds so that we are able to be competitive,” he said.

The leaders urged the government to activate the strategic food reserve that has been dormant for two years to mop up excessive milk from the market Revitalisation of the New KCC has been identified as a critical pillar in enhancing the vibrant cooperative sector.

According to the Sacco Supervision Annual Report, 2021, the asset base of dairy sector deposit taking Saccos stood at a paltry KSh8.40 billion by close of 2021.

Any improvement in the sector will greatly improve dairy farmers’ earnings and their contribution to Saccos. This will eventually translate to improved asset base, deposits, loan portfolio and incomes.

Rebecca Miano, former Stima Sacco chairperson.

Simon Chelugui, CS Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Development, during his swearing in at State House, Nairobi on October 27, 2022.

Ukulima Sacco targets senior members with unique products, services

senior members control substantial amounts of deposits and shares hence the need to guard and preserve their shareholding. Key products and services it seeks to rollout targeting senior members include Fosa savings accounts, long term and short term loans, medical cover, deposit contribution accounts, fixed deposit accounts, estate planning scheme among others.

FOSA Savings Accounts

By Azael Masese

Ukulima Sacco has introduced new products and services to enable senior members meet their unique financial needs.

The senior members, notably those aged 50 years and above, are considered a key pillar of the Sacco and retaining them will sustain and improve on its healthy balance sheet.

By coming up with tailor-made products and services, the Sacco is keen on retaining this critical membership as it seeks to bolster improved capital base and improved profitability, guided by the 2022-2026 Strategic Plan.

Board Chair Dr. Philip Cherono stated that the Sacco has since looked into the demographic composition of its members and used this information to develop responsive financial products and services, unique to the specific needs of the members.

Dr Cherono said that the move is informed by the fact that members approaching retirement and those who have retired have unique needs that may not fully be met by the conventional Sacco products and services.

This, he added, is due to their low borrowing appetite and sometimes may be devoid of a regular source of income to commit to regular savings contributions.

Speaking during the Sacco’s Senior Members’ Engagement Forum, Dr Cherono said that retaining retirees as lifetime members has been Sacco’s biggest challenge.

“The forum is part of members’ education and we deliberately and strategically identified you as a critical category of our membership as we strive to walk with you into your retirement phase,” he said.

He stated that majority of the

To continue patronizing banking services, any member and in particular, the pensioners, are allowed to open or maintain accounts at FOSA.

“Upon retirement, we have established a mechanism in which members can channel their pension through our Front Office Service Activities (FOSAs),” he said.

Members can henceforth channel their pension fund through FOSA and earn an income.

Under FOSA, members can open savings accounts such as FOSA Savings Account, Biz Current Account and Pamoja Current Account.

The FOSA Savings account is suitable for channeling of salaries and pensions through the FOSA bank.

The biz current account works like a Fosa savings account but is suited for members with alternative income generation activities including rental incomes, farming incomes, trading incomes.

This account and the various incomes will support members when seeking credit facilities.

Pamoja current account will enable access to banking services by a registered group or chama as opposed to an individual.

Such groups include self-help groups, welfare associations, welfare societies, investment groups, churches, schools, clubs, primary cooperatives and trading companies.

Deposit contribution accounts

Deposit contribution accounts are also open to pensioners as they will enable them to contribute their savings.

One such account is the ordinary deposit contribution account where pensioners can contribute Ksh500 per month, instead of the minimum Ksh2,800 per month for every member.

Haba na Haba is a voluntary savings account that will enable pensioners to promote a culture of wealth accumulation through capitalisation of annual returns.

Fixed Deposit Account

Members have investment opportunities of fixing lump-sum amounts through the society to earn a return.

One such account is the Hifadhi fixed deposits account and flex fixed deposits account.

Hifadhi Fixed Deposits Account is a savings product targeting pensioners to provide them a financial safeguard for retirement between the date of retirement and receipt of pension. Instead of a member withdrawing from the society fully or accessing

half of their deposits through partial withdrawal, the targeted withdrawal funds are instead transferred to Fosa and accessed by members in phases gradually.

Flex Fixed Deposits Account

This type of fixed deposit account offers very attractive flexibilities to investors. It targets retirees who would wish to earn monthly income on their lump sum savings balances.

Loan products

To encourage retirees engage in income generating activities, the Sacco has a number of long term and short term loan products suitable for retirees.

Long term loans targeting pensioners include development loan, Fosa Daima Loan and Wezesha loan.

It also offers short term loans including emergency and Ukulima advantage loans.

Most importantly, there are selfguaranteed loans, where a member can borrow up to 90 per cent of their deposits without a guarantor. However, a member should not have guaranteed any member for a loan.

There is also the alternative loan security where a member can use other securities such as a title deed or log book to take loan.

Relationship banking

The society allows membership from individuals or corporates who are interested in accessing banking services only as opposed to being active with monthly back office contributions. Such a member is only required to maintain a savings account for FOSA banking services without the requirement of being a regular contributor. This is suitable for pensioners and need to open a transactional account to facilitate access to the associated banking

Dr. P.K. Cherono, National Chairman

CPA Richard Nyaanga, CEO

The move is informed by the fact that members approaching retirement and those who have retired have unique needs that may not fully be met by the conventional Sacco products and services.

-

Board Chair Dr P.K. Cherono

2022-2026 strategic plan targets membership, deposit portfolio and asset base

services.

Flex fixed deposit account offers very attractive flexibilities to investors, especially retirees who would wish to earn monthly income on their lump sum savings balances.

The Sacco has developed close relationships with the Government’s Pensions Department so as to enable better services to the members.

As a result, pensioners are able to access a number of services out of this relationship.

One such advantage is that pensioners are able to participate in retirement planning training for members who are nearing retirement. Issues highlighted here include retirement planning, financial planning, available Sacco products and services.

It also helps in follow ups with the pensions department to fast track as appropriate the pensions processing for members who have retired and expect to be channeled through Ukulima Fosa bank.

It will also help in following up on the monthly pensions earnings for members to avoid or minimize undue delays.

In most cases, the Sacco pays monthly pension earnings to members in case of delay in remittance of funds from the pensions department. This is done upon liaison with the pension department to avail the pension payment schedule of the month and commit to remit monies soon afterwards.

Medical cover

The introduction of Ukulima Seniors Afya Plan is one such product that will augment the members’ medical expenses.

Board Chair Dr P.K. Cherono noted that with old age comes a myriad of health issues.

This informed the decision to develop unique medical products to cater for medical expenses for recurrent illnesses associated with old age.

“We have witnessed a trend where the majority of retirees usually withdraw their deposits from the Sacco to cater for such expenses, thus we have developed a product that has a medical cover component to augment medical expense,” he said.

The affordable and comprehensible medical cover protects insured persons against valid medical expenses.

Eligible expenses are paid subject to annual benefits limits provided for. In conjunction with CIC Insurance Company, pensioners can buy annual medical covers of their choice to cater for inpatient medical expenses.

It offers a wide range inpatient benefits such as pre-existing and chronic conditions cover, psychiatry/ psychotherapy cover, emergency air evacuations and road ambulance services.

Others include dental surgery, post hospitalization and rehabilitation

expenses, inpatient ophthalmologic, prescribed external aids cover, home nursing and comprehensive geriatric assessment.

The product also offers a last expense cover in the event that the insured person passes on as a result of covered conditions while the cover is in force.

Eligibility for principal member and

spouse is from 60 years to 80 years. Cover allows only one spouse as a dependent of the principal member as child dependents are not eligible under this cover.

Mentoring young generation

Dr Cherono tasked the senior members to become ambassadors and role models for the younger generation

to woo them to join as members.

The young generation, he noted, has been shying away from Sacco membership due to lack of guidance and mentorship by seniors, a role they are expected to play.

Senior members are expected to start by encouraging the children and grandchildren to join.

“There is a need to share with

younger members why they need to enhance their savings contribution and retain their membership in the Sacco for their whole lifetime,” he said.

Ukulima Sacco has also developed a dividend management plan for pensioners and involves making income from dividends earned.

This can cater for the required monthly savings contributions while the balance is distributed into a monthly income scheme.

The fixed amount that remains in the account shall continue to earn interest on a daily basis while a member earns on a monthly basis.

Estate Planning Scheme

The Sacco also seeks to encourage members who have built their deposits and shares over time to pass them on to the younger and future generations.

This would be a means of inculcating the younger generation into a savings culture and instead of withdrawing shares and deposits, these too can be distributed to the younger generation to kick start their membership journey in the society.

This, according to Sacco, is part of the inheriting the senior members’ investment, the same way it is done with land and other properties.

“The proposal would see the beneficiaries enjoy borrowing on behalf of the senior members and should they pass on, the beneficiaries will automatically inherit the retiree’s deposits but with a caveat of not withdrawing the deposits or shares of the deceased but enjoying the monthly incomes.

“Ukulima Sacco will look into the possibility of establishing an estate planning scheme where senior members would be encouraged to nominate any of their preferred beneficiaries or next of kin to join the Sacco as a member whilst they are still alive,” he said.

Strategic Plan 2022-2026

The main driver of this projected growth is the Strategic plan 2022-2026.

Sacco CEO CPA Richard Nyaanga said this is the sixth strategic Plan the Society has developed since it was founded in 1972.

Some of the key highlights of the plan is to grow its membership, deposit portfolio and asset base by 18 per cent annually.

For example, Sacco wants to increase its membership to 102,000 by the end of the plan compared to the current more than 58,000 members. Its deposit portfolio will grow to Ksh22 billion by the end of the strategic plan, compared to Ksh9.7 billion reported by the end of 2021.

It also seeks to grow its loan book by 18 per cent annually to hit the Ksh25 billion mark by the end of the strategic plan. This will be an improvement compared to the Ksh11 billion recorded in 2021.

Senior members of Ukulima Sacco keenly follow proceedings during the engagement forum held in Nairobi recently. The Sacco has developed unique products to serve senior members who are approaching retirement

Senior Sacco members during the engagement forum held in Nairobi recently. The Sacco has developed unique products to target senior members who are approaching retirement

Cont. from prev. page...

SENIOR MEMBERS Special Products & Services

OUR SPECIAL PRODUCTS

RELATIONSHIP BANKING

FOSA SAVINGS ACCOUNTS

Fosa Savings Accounts

Biz Current Account

Pamoja Current Account

DEPOSIT CONTRIBUTION ACCOUNTS

Ordinary Deposit Contribution Account

Haba na Haba Deposits Account

FIXED DEPOSITS ACCOUNTS

Fixed Deposits Accounts

Flex Fixed Deposits Accounts

Hifadhi Fixed Deposits Account

LOAN PRODUCTS FOR PENSIONERS

LONG TERM LOANS

Development Loan

Fosa Daima Loan

Wezesha Loan

SHORT TERM LOANS

Emergency Loan Mahitaji Mobile Loan

Ukulima Advantage Loan

Dividend Advance

OTHER LOAN SERVICES

Self-Guaranteed Loans

Alternative Loan Securities are acceptable

Top up Loans

Housing Loans

MEMBERS WELFARE SERVICES

Membership Obligations for Pensioners

Partial Withdrawal Program

Benevolent Fund Program

Ukulima Seniors Afya Plan

CUSTODIAL SERVICES

LINKAGES WITH GOVT PENSION DEPT.

UKULIMA KASH

DEPOSIT TO FOSA A/C USING SACCO PAYBILL

JAN 17, 2023

By Hezron Roy

A total of 350 Micro, Small and Medium Enterprises (MSMEs) have been linked to the larger East African Community (EAC) market during this year’s 22nd East African Community MSMEs trade exhibition, formerly known as the EAC JuaKali and Nguvu Kazi, which was held December this year in Uganda.

The trade fair, held between December 8 and 18, 2022 at the Kololo Independence Grounds in Kampala, Uganda, under the theme ‘Buy East African to Build East Africa for Resilience and Sustainable Development,’ drew over 1,500 MSMEs from trade, manufacturing, agribusiness and services sectors.

Exhibitors came from the seven EAC partner states to open up new market frontiers for products and bridge knowledge and technology gaps, while at the same time boost regional integration.

Speaking during the launch of the National Organizing Committee for the trade fair on November 25, 2022, the Cabinet Secretary (CS) for Cooperatives and Micro, Small and Medium Enterprises (MSMEs) Development Simon Chelugui noted that the theme resonated well with Kenya’s mantra of ‘Buy Kenya, Build Kenya’.

He added that over the past 5 years, volumes of Kenyan exports to the EAC region has amounted to $1.4 billion (approximately Ksh172.03 billion), and that the National Export Development and Promotion Strategy envisions to increase this by ensuring that 60 per cent of Kenya’s manufactured products will be

By George Otieno

All Cooperatives will in future become federations and subscribe to an apex body, Group Managing Director of the Kenya Union of Savings and Credit Cooperatives (KUSCCO) George Ototo has hinted.

A restructured Cooperative sector will ensure sustainability and viability as it will solely depend on the subscription of the cooperative members.

Ototo revealed this while addressing over 350 delegates during the fifth annual KUSCCO conference in Mombasa converged to dissect Sacco matters, especially issues of sustainability, innovation and inclusion.

“The economic participation of our business model is critical hence the need to establish sustainable Cooperatives,” he said.

He added that it is the responsibility of the cooperators to understand and identify with the Cooperative model, invariably charging that the breach and misunderstanding of the model had led to many cooperatives going astray into unplanned diversification.

The economic development of cooperatives, Ototo added, remained critical despite Saccos being social institutions because as cooperatives, they still had obligations to the government.

The formation and growth of the Cooperative sector, Ototo said, are attributed to the efforts and contributions of early leaders such as the late President Mwai Kibaki and Tom

Micro and Small Enterprises Authority Director General and Chief Executive Officer (CEO) Henry Rithaa, noted that Kenya's continuous involvement in the event is motivated by its ability to provide avenues for MSMEs in various nations to create connections and collaborations that will create market linkages in the region.

According to the Authority, as the global and regional economies emerge from the shocks of the Covid-19 pandemic, the business recovery trajectory must be maintained by way of harnessing local sourcing and deepening the value chain frameworks, among other strategies.

Regional trade fair exposes Kenyan traders to huge EAC market

exported to the regional and global markets.

“This will grow the country’s export target by 25 per cent. It comes at a time that Kenya’s exports are projected to rise by 15 per cent this year compared to the $6.08B recorded in 2021 due to increased sales to new African countries upon the operationalization of the African Continental Free Trade Area (AfCFTA),” said Chelugui.

He added: “The trade fair will further serve to consolidate Kenya’s contribution to the volume of exports in the region, in line with the National Export Development and

Promotion Strategy. The government is also exploring new development plans to improve MSMEs' awareness of digital markets and trade to sustain e-commerce.”

Since its inception, the annual EAC exhibition has brought together MSMEs from the then East Africa's six partner nations (now seven) to expand their reach into new markets, share new technologies, and strengthen regional integration.

About 5,000 Kenyans have benefited from this trade fair, with a majority having established solid presence in the regional market through consistent supplies.

The EAC's expanded market size of 300 million people (as a result of the recent entry of the Democratic Republic of Congo (DRC) into the community) adds significant impetus to the push to increase intra-EAC trade, given that the EAC region now stretches from the Indian Ocean to the Atlantic Ocean.

With a combined GDP of approximately US$250 billion (Ksh30.72 trillion), it has made it competitive and easy to access the larger African Continental Free Trade Area (AfCFTA), hence giving the MSMEs an opportunity to access a bigger export market.

Kenya has taken several steps at the national, regional and global levels to address bottlenecks to trade in the EAC and other trading blocs.

These include integration of MSMEs into value chains, strengthening production linkages to enhance value addition, and expansion of local manufacturing for the export market.

The initiatives are aligned to the National Trade and Policy Framework as contained in Kenya’s Vision 2030, which focuses on export growth through value addition in export-oriented manufacturing and services.

Change beckons as KUSCCO boss hints at co-ops forming federations

well-trained and informed team on compliance, as well as a structured Board and staff training guided by identified needs,” he advised.

The SASRA boss further added that delegates and members need to be trained to ensure legitimate expectations are met, and the institution’s culture and ethical boundaries are understood.

He said cooperatives also need to develop a risk management culture across all cadres, from the Board down to the junior staff as risk management functions are collective.

Part of this is identifying, scoring and reporting high priority risks to enable them capture, aggregate and centralize them based on standards, controls and measures.

Mboya, who aspired to anchor development on cooperatives.

Thus, he encouraged the sector not to see mobile lenders as competitors but instead concentrate on what they were doing differently and adapt.

One such way is investing in production, value addition and marketing.

“In other worlds, the producer cooperatives are stronger than the financial cooperatives since financial cooperatives only provide finances to facilitate production,” he observed.

The managing director added that Saccos should encourage their members to get into production through lending or having value addition loans, advising delegates to create businesses that outlive them.

The Cooperative policy and the Cooperative Bill 2021, Ototo stated, will be implemented by the county governments once passed because it is a devolved function.

SASRA Chief Executive Officer (CEO) Peter Njuguna said that Saccos and cooperatives were a legal creation, thus had to be constantly

aware of new laws to continuously adjust and remain compliant.

He said it was the reason cooperatives established compliance controls and processes, accountability levels and focal points of managerial yardsticks that are accessible to all players.

Njuguna urged Sacco players to engage professionals to help across functional units on aspects such as finance, risk management, legal matters, ICT, operations, among others, to make business better.

“You also need to invest in a

Accurate and timely communication, he emphasized, was another way that cooperatives could use to remain compliant as this enhanced transparency and accountability to members and other stakeholders.

As cooperative institutions, he urged the leaders to embrace consistent communication with members using credible and authoritative platforms to stem misinformation and disinformation. Such effective communication across ranks helps maintain the cooperative ideals.

Hon. Simon Chelugui (centre), Cabinet Secretary Cooperatives and MSMEs Development, speaking during the commissioning of the National Organizing Committee for the EAC Exhibition

Peter Njuguna, SASRA CEO

Ototo, KUSCCO Managing Director

Cooperative

will ensure sustainability and viability as it will solely depend on the

of

members.

Cooperatives are a legal creation hence the establishment of compliance controls and processes, accountability levels and focal points of managerial yardsticks.

Saccos challenged to diversify from check-offs to MSME markets Invest in research, innovation to remain relevant, Kilemi urges coops

By George Otieno

Commissioner for Cooperatives David Obonyo has called for a paradigm shift on how Saccos conduct their businesses, warning that relying on the check off systems is no longer tenable.

Most Saccos, Obonyo stated, were employee-based that depend on bank check offs at the end of the month to recover loans, turning their backs on millions in informal employment.

“The population of Kenyans in formal employment is less than five per cent and depending on it translates to serving only a small percentage of the Kenyan population,” he said.

Obonyo said the youth make up more than thirty five per cent of Kenyan earners, hence the need to bring them on board.

He was addressing delegates during the leaders’ forum organised by the Kenya Union of Savings and Credit Cooperatives (KUSCCO) in Mombasa recently.

Majority of Saccos have opened the common bond, allowing the business community to join and enjoy the benefits that come along with membership.

He said that the rebranding and opening of the common bond to accommodate a bigger community was not enough and they need to target where the population is.

“What are we doing to improve the lives and the income of the members that join our Saccos?” He posed.

He reiterated the need for Saccos to come up with prod-

ucts that are SME-oriented and facilitate the growth of business.

He encouraged Saccos that have not yet fully embraced the use of technology to establish mechanisms that will help them transit into modern ways of running businesses or face extinction.

He, however, dissuaded the Cooperative leaders from using technology to embezzle or misuse members’ funds.

Since the ‘Hustler Fund’ is heavily dependent on technology, Obonyo asked Saccos to adequately prepare their systems.

were in the business of changing the lives of the people and not necessarily making money.

“We need to ensure members live in decent homes, are able to meet the cost of education of their children and address their daily needs,” he said.

On the other hand, he pointed out that Sacco leaders should not open branches haphazardly, nor give indiscriminate loans that do not perform, ending up hurting the Saccos. Though it is appropriate to continuously keep looking for new available opportunities, Obonyo reminded Saccos to first carry out due diligence before allowing new members in.

As a devolved function, Obonyo challenged the leaders to take the sector to the next level.

“At the county level, the county government has deployed officers to support the Cooperative functions,” he said.

He challenged them to look beyond region and compete with Europe and the Western economies.

By our reporter

Principal Secretary in the State Department for Cooperatives Patrick Kilemi has challenged cooperatives to come up with new ways of doing business if they are to remain relevant.

In a competitive and challenging market, the PS underscored the need to embrace research and innovation as critical ingredients to sustainably improve performance and profitability.

“You need to invest in strategies that focus on products, services, processes, business models and marketing,” he said.

Besides, he identified technology, marketing and social interaction as other areas cooperatives need to invest in to enable them to serve members effectively and efficiently.

He said this at a conference organized by the Kenya Union of Savings and Credit Cooperatives (KUSCCO) in Mombasa recently.

every single day and by last week more than ten million Kenyans had enrolled on the platform with more than KSh7.5 billion disbursed.

In addition, over 10 million have registered on the platform to enable them to borrow funds.

Speaking at the same event, Taita Taveta Deputy Governor Christine Kilalo underscored the significance of the Hustler Fund in boosting national savings and promoting economic growth through job creation.

Kilalo, who was the chief guest representing the governor Andrew Mwadime, said the fund promotes market interaction by providing access to finances.

She urged the cooperators to take advantage of the fund to promote the growth of micro enterprises.

“We must strive to positively impact the lives of our members who aspire to have homes of their own, making it our responsibility to come up with mortgage products that will enable members to achieve these dreams,” he added.

Cooperatives, he said,

He identified the creation of the standalone Ministry of Cooperative and SME as a critical investment aimed at creating an enabling environment, giving policy direction, legal framework and investment that will enable cooperatives realize their aspirations.

Obonyo said skilled students from TVETs and colleges can be brought together to form a worker cooperative and make it easy for them to acquire jobs in government and other institutions, yet save to build their own Saccoos.

The discussions during the conference, the PS noted, would inform government policies and address the strategies to create an enabling ecosystem for sustainable cooperatives and enhance Kenyans’ social and economic transformation.

“The output of the conference will not only provide information for expansion of the body of knowledge but also highlight challenges and opportunities in the Sacco sector,” he said.

The PS promised that the government was committed to developing the sector and members have the mandate to come together and build the sector.

He said that collaboration of the Union, the government, Saccos and other stakeholders will culminate in a stronger partnership necessary for the development of the

industry.

He applauded KUSCCO organizers for running the annual conference five years in a row, bringing together over three hundred and fifty members drawn from different Saccos to deliberate on issues such as the challenges, opportunities and emerging trends in the industry.

At the same time, he disclosed that the second phase of the Hustler Fund will begin in the middle of January 2023 to enable young people engage in income generating activities.

The figures keep on changing

The Deputy Governor encouraged the industry players to educate themselves on cyber security to prevent loss of funds through hacking and other forms of cybercrime.

Acknowledging the immense role Saccos play in the country, Kilalo said the transformation of the Kenyan economy has been through financial inclusion through savings and affordable credits.

Kilalo noted that the KUSCCO summit provided a pool of knowledge and skills with the ability to continue to spur the growth of the Cooperative sector.

She promised to lobby other elected leaders to support the sector by passing all the pending legislations related to the Sacco sector.

Kenya’s cooperative sector has more than 27,000 registered cooperatives and more than 14 million members.

Its asset base is estimated at Ksh1.5 trillion, savings at Ksh1 trillion and loans in excess of Ksh980 billion.

Coop sector deserves govt support, Kilifi DG says

By George Otieno

Kilifi County Deputy Governor Flora Mbetsa Chibule has stressed the need to support cooperatives as key enablers of Kenya’s improved social and economic growth.

Cooperatives, she said, cut across all the sectors of the economy, namely agriculture, mining, housing, transport, and manufacturing.

In addition, they are known worldwide as instruments of poverty eradication and wealth creation through mobilization of financial resources for development, hence the need to be given the necessary support.

She was speaking on behalf of her governor Gedion Mung’aro during this year’s KUSCCO annual leaders’ summit held in Mombasa.

“We must commend the government for the good work it has done to ensure that there is a good operating environment for our cooperatives to thrive,” she remarked.

Chibule identified Central Liquidity Facility, Sacco Central, Deposit Guarantee Fund, and Sacco Societies Fraud Investigation Unit as some of the policing

vocacy wing that has been very instrumental in lobbying for good pieces of legislation.

Chibule encouraged industry players to re-double their efforts in order to achieve financial inclusion in the country.

This, she said, can only be achieved by investing in digital transformation as the financial sector was very dynamic and as such, Saccos had to embrace ICT in their operations to remain competitive.

“You need to map all your services and products on digital platforms and come up with innovative products such as internet banking and mobile banking. A robust management system will

not only guarantee safety but also ease recording of transactions and regulatory reporting,” she said.

Chibule underscored the need to entrench good governance practices to boost the growth and survival of institutions.

She identified the cooperative movement as a key partner in the county’s development agenda, promising the government’s full support aimed at promoting and enhancing growth.

These include building institutional capacity for value chain cooperatives to be able to do value addition and processing.

Others are allocation of capacity building funds for training members

and officials of cooperatives, provision of working capital to start up cooperatives through the Kilifi County Micro Finance Fund, and matching grants through agricultural sector programmes, building capacity of the cooperatives directorate through staff training and recruitment, and coming up with relevant legislations to meet specific sector needs

She remained optimistic of a bright future for Saccos, considering the establishment of a fully-fledged ministry. This, she said, called for concerted efforts by the government and development partners to popularize and also support the Sacco business model for the benefit of all.

and regulatory framework aimed at improving member confidence in Saccos.

The incorporation of Kenya Mortgage Refinancing Company to bridge the gaps in mortgage financing is another milestone reported in the Sacco sub-sector.

She applauded KUSCCO for its dedication towards the growth of the Sacco sector through their various programmes and activities such as the ad-

David Obonyo, Commissioner for Cooperatives.

Christine Kilalo, Taita Taveta Deputy Governor.

Patrick Kilemi, PS Cooperative & MSMEs.

Cooperative officials during the KUSCCO Sacco leaders conference in Mombasa recently. Photo /George Otieno

Flora Mbetsa Chibule, Kilifi DG.

Co-op Bank donates Ksh150M to the President’s Drought Response kitty

By staff reporter

Co-operative Bank of Kenya has pledged Ksh 150 million towards President William Ruto’s anti-hunger fundraising appeal.

The contribution, the single largest donation to the kitty so far, will support families affected by the drought that has ravaged various parts of the country.

Speaking during the 37th graduation ceremony of International Leadership University (ILU) on Saturday Nov 19, 2022, Group CEO and Managing Director Dr Gideon Muriuki stated that CSR is one of the three critical pillars that have enabled the bank to become a key financial player in Kenya’s socio-economic development.

The bank serves more than 9 million customers and 15 million cooperative movement members.

Dr Muriuki underlined the importance of having a strong workforce as another critical pillar of success.

“As a leader, I have learnt that investing in people and teams pays the best interest. You are ultimately as strong as the team around you,” he advised.

He noted that through the collective efforts of the employees at Co-op Bank, the bank has revolutionized the banking sector through many initiatives as trailblazers.

“In 2003 we pioneered mobile banking in

Kenya when we made it possible for our customers to access and complete bank transactions, such as making enquiries on bank balances and paying of electricity bills, directly from mobile phones,” he noted.

Dr Muriuki also identified building a transformative culture as another critical investment for the bank.

He stated that Co-op Bank fully embraces and nurtures a transformational culture that guides the way it relates with all its stakeholders.

“We believe that building a transformative culture that is sustainable and inclusive is not in conflict

with our business goals and pursuit of profit, but rather complementary. We are proud to have built a culture that is competitive and highperforming as well as purpose-driven and faith-led,” he said.

Transformative culture encompasses key components such as values, leadership and management, brand, reputation and risk, sustainability and social justice among others. The above mentioned lead to courage, connection, collaboration, common purpose, communication, compassion and curiosity.

On its identity, he said the bonds of loyalty

between stakeholders were tested during the Covid-19 pandemic, when many institutions, especially banks and other listed companies, took a defensive stance and decided not to pay dividends to shareholders.

“However, as Co-op Bank, we are aware that we were indeed ‘created for moments like this’. We defied the trend and paid dividends, knowing very well that our act formed a critical lifeline especially to our Co-operative shareholders,” he said.

In 2020 and 2021, Co-op Bank paid out a total of Ksh11.7 billion in dividends, the bulk of it going to co-operatives as majority shareholders. During the ceremony, Dr Muriuki recognised Police Constable Ann Wanjiku Waigwa for setting the right tone in building honest leadership in the country.

Constable Ann recovered a bag containing Ksh2.4 million and other valuables which a British tourist had misplaced at Wilson Airport. She preserved the items and tracked the owner to ensure he gets back his items.

Dr Gideon Muriuki, flanked by the Chair of the ILU Board of Trustees Hon. Justice Daniel Musinga, awarded Wanjiku a Special Merit Award and a full academic scholarship by ILU.

Hon Justice Musinga is also the President of the Court of Appeal in Kenya.

Police Constable Ann Wanjiku Waigwa (right) receives a Special Merit Award and full academic scholarship from the International Leadership University (ILU), handed over to her by the Group Managing Director & CEO of the Co-operative Bank Dr Gideon Muriuki who was Chief Guest at the university’s graduation ceremony recently. He’s flanked by the Chair of the ILU Board of Trustees

Hon. Justice Daniel Musinga who is also the President of Kenya’s Court of Appeal. Policewoman

Anne Waigwa was honoured for her remarkable integrity when she recovered a bag containing Ksh 2.4 million in cash and other valuables that a British tourist had misplaced at Wilson Airport, where she proceeded to make every effort to trace the owner and finally handed over the goods.

The contribution, the single largest donation to the kitty so far, will support families affected by the drought that has ravaged various parts of the country.

mandate

The year 2022 will be behind us in a few days. In its place is 2023, with new aspirations that traditionally usher in a new year.

The old will be gone, but the cherished memories will endure to pass the baton of optimism and hope to yet another cycle of human struggle. Our resilience and promise of a better tomorrow is holding out, and we pray once again to put our acts together and become better people and better organizations.

It is true for individuals and partnerships as much as it is for Saccos and cooperative societies; they all celebrate their achievements but do not stay in that mood forever. Sooner, merry will be laid aside to resume the same journey of uncertainty, expectations, dreams and ambitions.

Consequently, 2023 presents the Cooperative Boards and managements the opportunity to improve performance, profitability, and sustainability.

This is easier said than done, yet it is hard when there is little drive to motivate towards higher goals and targets that are invariably set at the onset of every year. There are hits and misses as far as these two pillars are concerned.

Fortunately for the cooperative movement, forbearance and stability have proved to be their standard banner even in the most difficult of times. The Covid-19 test is a good example.

The short unwinding period will suffice to plan better and avoid the common mistakes that cumulatively make it hard to reach our objectives as organizations.

As stakeholders, including government, keep their expectations high, the promise and pressure to deliver compete with our abilities and limitations.

There is no better planning than now, though it is time to measure expectations against realities of our own situations.

Sacco Societies Regulatory Authority (SASRA) CEO Peter Njuguna has always insisted on a constant focus on the impact that Sacco activities have on members.

This is away from the dividends paid every single financial year and closer to the opportunity for saving and borrowing.

The measure of success of a Cooperative may have to be revised as to be aligned to the original purpose for which they were formed.

This way, the growth of the Cooperative sector in Kenya can be seen from the welfare lenses rather than profitability.

When this is done, there might be no need to spend massive resources in the new year on irrelevant product training at the expense of education.

Sacco Review wishes you a merry Christmas and happy new year.

SACCO REVIEW

Website: www.saccoreview.co.ke

Chief Executive Officer: Peter Silsil

Editor: Rosemil Oduor

Revise Editor: Kipkemboi Toroitich

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Hustler Fund can be incorporated into Sacco business model

The much awaited Hustler Fund aimed at helping small business owners access startup capital is finally out. The fund is also meant to establish a saving culture as well as encourage investments and social security, among other benefits to Kenyans.

The terms and conditions have been greatly simplified to meet the financial needs of every Kenyan. Individuals can access from Ksh500 to Ksh50,000.

The government has expressed interest to work with cooperatives to channel the funds to Kenyans. Should cooperatives accept the offer? Are they ready to channel the fund? If not, what do they need to do?

First and foremost, cooperatives should get in the frontline of supporting this agenda.

They should rise to the occasion and give a positive response to the offer from the government in the best possible way and prove they are the best vehicle to drive the government’s agenda.

The Hustler Fund accessibility involves a very short process and the period between funds application and cash disbursement is greatly minimized. The fund security is very affordable to all as it requires only a guarantor, which is the most common mode of loan securities in our cooperatives.

Through the Hustler Fund, both cooperatives and their members will benefit. Cooperatives will have the best opportunity to increase their businesses and expand their market share while mobilizing fund credits.

To channel the funds, cooperatives should formulate friendly measures and strategies to make the agenda realizable by the target group potential and existing members.

Cooperatives should redesign their policies to accommodate this fund initiative to co-exist normally with other cooperative products and services.

They need to get to work by making the fund more popular and attractive to Kenyans who may consider joining cooperatives with the intention of accessing the funds.

The new marketing language needs to be incorporated with Hustler Fund sensitization messages. The target groups of cooperatives should shift from their common bond members to youth groups, women groups and any other marginalized organized groups targeted to be the greatest beneficiaries of the Hustler Fund.

Cooperatives should be on the ground guiding and educating these target groups on entrepreneurial skills and

financial literacy to ensure the purpose of this initiative is achieved. They should engage all possible avenues including incentives, simplified offers and online recruitment platforms to ensure they disburse majority of the hustler credits.

The hustler fund has been set with attractive features that include reduced turnaround time, simplified procedures to apply, very affordable securities and no discrimination regardless of who applies.

Cooperatives should therefore consider some features that accommodate the fund specifications.

Since it is aimed at solving the problems of frustrated Kenyans who have been queuing for hours and days with loan application forms and several evidence documents in banking halls seeking business startup capital, cooperatives need to embrace new technologies in automation of services.

They need to reduce these traditional processes and come up with quicker methods of disbursing the fund. This calls for effective and fast response to enquiries and operating systems put in place to increase efficiency on all operations.

Cooperatives that wish to channel the Hustler Fund agenda should ensure they are financially sound to ensure their business is continuous. Their commitment in disbursing the funds should match the same efforts in provision of other products and services.

All in all, Cooperatives should stick to their main objectives. The Hustler Fund mobilization is an added advantage to boost their businesses. This should not divert their attention of serving their members or developing more products as per the needs of the existing customers.

Let’s take Saccos back to their original

Ngrrrrrr! hee! hiii! Why did I even get the Hustler Loan in the first place! It’s all gone due to betting!

President William Samoei

Ruto had a catchy, meticulous and well-executed campaign on the Hustler Fund that drove masses to vote for him during the August general elections.

Through the Fund, the president sought to help the many people involved in informal economy to start or build their businesses.

There have been a lot of arguments on the practicability of the Hustler Fund and in all honesty, their points are valid.

I have been struggling to figure out the difference between the Hustler Fund and other similar funds like the Youth Enterprise Development Fund, Women Enterprise Fund and Uwezo Fund.

The Hustler Fund is a noble idea but its chances of failure are lurking around it. First, if you ask those who have been practically involved in any lending business like banks or Saccos, they’ll tell you that their biggest headache is Non-Performing Loans (NPLs).

The high rate of NPLs is an indicator of a poorly performing economy.

Secondly, it might seem fair enough to give someone between Ksh5,000 to Ksh50,000 to start a business like small barber or salon shops, but in actual sense, it isn’t. Most of these small businesses are duplicates.

The latest reports by reputable in-

Innovation, not Hustler Fund, is the antidote to poverty

stitutions reveal that the rate of attrition of micro to mini businesses in Kenya within the first 3 years is very high (above 50%). By the 5th year, a huge portion (estimated to be above 70%) of these businesses are gone.

The main challenge experienced by these businesses is lack of adequate effective demand. This challenge in the economy can be attested to by poverty levels as well as high rate of unemployment and underemployment.

You won't solve the problem of poverty by simply supplying money in credit. The success stories you see in the media are just one in many other failures unreported. The owners of the few success stories manage to cultivate a market niche or build a cartel to succeed.

The excitement about the Hustler Fund should be measured because it isn’t any different from the other funds we have. Hustler Fund is a good idea but won't do much as probably many expect. The promise of some utopia, which many want to believe in, won’t work. Politicians, magicians, sales people and scammers all work perfectly on

Harrison Mwirigi Ikunda

The Writer is a Political, Economic and Social Analyst and Commentator. He is also the Chief Executive Officer of one of the leading Auto Industry Associations in Kenya. hm.ikunda@gmail.com

Harrison Mwirigi Ikunda @hikunda

Harrison Ikunda

the same principles and strategies.

The solution to fighting poverty is innovation.

Our country’s population is growing rapidly and that’s a blessing as a huge population provides huge labour force, which when utilized well can easily make a country a super power.

History has indeed proven that densely populated countries are always innovative and end up powerful, both economically and military-wise.

What we are missing in the fight against poverty isn’t a supply of money but complete economic reforms, radical thinking and transformation.

Our biggest problem is that our economy is too shaky as a result of corruption and a shaky industrialization journey. Our country has a few industries set up to manufacture products yet we’re shameless importers of even goods we can easily produce and export.

Without successful local industries, the unemployment problem in the country will remain a thorn in our flesh. To add to our misery, we are not also exploiting our potential fully.

The hits and misses of Sacco rebranding

The liberalization of the Cooperative Sector vide Sessional Paper No 6 of 1997 titled Cooperatives in a Liberalized Economic Environment gave Saccos a chance to rebrand to grow and enhance their competitiveness in the liberalized market.

They rebranded by developing strategic plans that prioritize short and long term measures of achieving intended goals. As a result of this, most Saccos’ missions read ‘to be the best Sacco in the country’

What did the Saccos do to rebrand?

i) Changed names. New names were adopted to endear the Saccos to broader catchment areas beyond the traditional common bonds captured in their bylaws. The Saccos hoped such changes could boost their brands in the hitherto controlled environment.

ii) Saccos amended the common bonds and areas of operations in their bylaws. As a result of this, membership grew exponentially that the ‘new members’ outstripped the ‘traditional members’.

iii) In a bid to attract more members, the Saccos developed very attractive short term loan products to keep commercial banks at bay. The high uptake of short term loans progressively eroded the demand for development loans culminating in members becoming net borrowers rather than net savers. This was an affront to the primary objective of forming Saccos: inculcating a savings culture and providing affordable loans to the members.

iv) Saccos developed new logos, chose colours of staff attire, modernized their office premises and also hired qualified staff to manage the anticipated increased workload.

Revitalize coffee production

I have been keenly following Cooperative and MSME Cabinet Secretary Simon Chelugui’s media reports since his appointment.

He is keen to revive the coffee sector in this country. Truth be said, there is no history of Kenya’s cooperative sector without coffee.

Gone are the days when coffee production was the main economic driver in Mt Kenya, Rift Valley and some parts of Nyanza.

Reviving coffee production seems to be an uphill task

but the new CS has stated he is up to the task.

He has severally said that at the height of coffee production, Kenya used to produce 140,000 metric tonnes before it went down to about 40,000 metric tonnes.

How to get there is never an easy task and calls for concerted efforts. However, the Government should not forget the role of other crops such as tea, cotton, and dairy.

- Joseph Kimani, Kiambu

Fred Sitati

What are the hits of rebranding?

a. By and large, all Saccos that rebranded have witnessed exponential growth in business

b. The expansion of branch-

Kudos Ali Noor Ismail

Former State Department for Cooperatives Principal Secretary Ali Noor Ismail served with dedication and commitment and there is every reason to hope that the new PS follows suit.

During his tenure, the sector reported remarkable growth and this has to be surpassed if we are to remain on top of the charts in Africa and the world. We all need to emulate his ethics while he served the country.

-Mary Mwangi, Nairobi

For many years now, comparisons between commercial banks and Saccos have been made. This is meant to sway Kenyans to decide where to invest their money.

While there is every convincing reason on why Saccos look like a better bait, a lot needs to be done.

Recently news of misappropriation of

The tourism industry, a good net for foreign cash inflows or hard currencies income, has undergone too much ups and downs and is barely generating any income. The agriculture sector is still on its knees. Worse still, subdividing land into smaller parcels is a challenge for viable agriculture in the long term, yet we still do it for individual and family security reasons, cultural issues and lack of viable alternatives.

In conclusion, the Hustler Fund is a good and temporary painkiller to soothe the hungry and angry population. We need to create industries that can absorb massive labour. Since we have too much idle labour or under-employed people, let us find ways to use them in a structured and formal way which is properly regulated. If we don’t do that, in another cycle of 5 or 10 years, we will be treated to other painkillers.

We also need to deal with the borrowers’ mentality. So many Kenyans borrow without intending to pay back, arguing that it’s government money after all. People want freebies as our politicians have cultured us to expect them. There are many entrepreneurial and hardworking Kenyans but our cumulative culture is simply rotten. Kenyans do not fear the law any more. You can add millions of layers of laws, fines and jail terms, yet Kenyans simply don't seem to care.

es has improved service delivery and created employment opportunities for many Kenyans

c. Due to the stiff competition amongst the Saccos, to a large extent efficiency has been achieved.

d. The corporate images of these Saccos have been boosted through engagement of qualified Secretariat staff led by Chief Executive Officers (CEOs)

What are the misses of rebranding?

a. Since membership is some Saccos is now 'open', the Saccos risk losing their identity. Some new Sacco names are not easily related to the original names the public were acquainted to

b. As competition among Saccos widened, rates of dividends and interest on deposits became the major determinants of luring new members to join or defect to Saccos perceived to

be better in service delivery. Such rates also determine the re-electability of the retiring board members. Your guess is as good as line as to whether or not the trend is in line with the cooperative identity.

c. Due to the stiff competition among Saccos, some employed unorthodox means like monetary inducements to get new members.

d. In terms of governance, the huge membership dictated the adoption of delegates system. The delegates attend Sacco meetings, a move that has disenfranchised majority of members.

e. Due to the diversity in membership, it became challenging in terms of logistics to organize successful members' education meetings. As a result of this, some Saccos organize delegates’ education programmes purportedly on behalf of ordinary members who are treated as mere customers.

f. Financial implications of rebranding in some Saccos was shrouded in opaqueness and some of the anticipated achievements were, to say the least, hot air!

one of the top Saccos was reported. It does not work well when news of mismanagement of one Saccos gets to the public limelight while there is increased marketing to recruit more members to join Saccos. A simple mistake by Saccos will dent their efforts to recruit more members.

-Peterson Marwa, Migori

As 2022 comes to a close, I am optimistic that 2023 presents another golden opportunity to make the cooperative sector great. This can only work if we improve on a number of areas that make the sector great. Top on this is the savings culture. We all need to embrace a saving culture by putting aside some savings for the rainy season.

No country or individual has been able to build formidable investments without saving for the future. It is from these savings that one can get enough capital to invest in income generating activities and that should be our driving force going forward.

We can make our economy great like other countries have done, such as China by improving on our savings. Let 2023 be the year to improve on our savings.

-Daniel Mutua, Mombasa

The writer is a Co-operative Movement Consultant.

Saccos need to up their game

May 2023 be the year with blessings

About Yetu Sacco

Yetu SACCO is a deposit-taking Sacco licensed under the Societies Act. Its Registration No. is CS. 6366. Over the years Yetu SACCO has established itself as a leading institution playing a central and supportive role in the social and economic development of our country through the provision of the competitively priced financial products. The name Yetu SACCO Society Ltd was adopted in 2010 when the administrative areas of presence moved beyond South Imenti in Meru County. The name “Yetu” is a Swahili word that means ‘ours’; born from members commitment to building their own society.

YOUR SUCCESS, OUR PRIDE

Mission

To grow and empower our membership by adopting innovative market driven services

Vision

To be an inclusive financial institution offering high quality services

Slogan

Your success our pride

Core Values

Professionalism

Equity

Accountability Integrity

Customer Service Teamwork

Concern for community Innovation

TheChairman,BoardofDirectors,delegates,staff andmembersofYetuSaccoheartilycongratulate EGHSimonKipronoCheluguionhisappointment as CS Cooperatives & Micro Small & Medium Enterprises(MSMEs) Development.

Mark Gitonga, Sacco Chairman

Housing cooperative members warned against reckless land sales

By Agnes Orang'o

Komarock Housing Cooperative Society members have been urged to avoid unnecessary land sales and instead invest on the lands to secure their future.

Speaking to members during one of the Society’s meetings, chairman Bernard Maembe expressed concern over the increased land sales.

“Most of you inherited your land from your fathers hence you should focus on investing on the land to enable

you create a future for yourself and your children,” he said.

He warned that some members had recklessly sold their land and ended up poor while others are battling land cases in courts of law.

Bernard Mungata, the Society’s lawyer, gladly told members that the dispute with KCB was coming to an end and that they can now develop the 700-acre piece of land.

He hailed former senator Johnson Muthama for helping in the fight to get back their land.

Cooperatives expect radical reforms from new ministry, Vision Sacco Manager says

By Lydia Ngoolo

Vision Sacco Manager Dominic Musyoka has noted that Cooperative members have high expectations that the sector will improve under the leadership of the new CS.

Speaking to Sacco Review from his Wote office, Musyoka expressed satisfaction with the move to have a standalone Cooperatives ministry and Cabinet Secretary.

He noted that Saccos can now smile since they have a ministry which is fighting for and fully minding their interests.

He went on to note that he’s now sure Saccos will easily get government loans.

"We have been recognized after a long time. We hope that things will stabilize now," he concluded.

By Robert Nyagah

Neno Savings and Credits Co-operative Society has embarked on a serious marketing drive to increase membership.

Sacco Chair Peter Manga said the Sacco has blazed its guns on doubling its membership through a ruthless recruitment campaign.

Addressing members during the budget approval meeting, Manga said the Sacco’s marketing team is working on ensuring each member recruits two new members and the 500 members with dormant accounts revive them. This will bring the membership to 2600.

“The marketing team will be adequately funded to traverse all parts of Mt Kenya region,” he said. Manga urged the members to be good ambassadors of the Sacco by telling others about the Sacco’s loan products and proactive management systems.

“The Sacco has attractive loan packages and I would like to encourage members to take loans and elevate their businesses and their standards of living,” he noted. He further urged them to be ready to open up to the management on areas they need to work on.

Sacco treasurer Martin Fundi noted that members approved the budget of Ksh47 million for the year 2023 FY up from Ksh45 million set aside for this year’s budget.

According to the budget,

County promises to improve livelihoods through CEDF

Uasin Gishu Cooperatives and Enterprise Development CECM Martha Cheruto

Neno Sacco embarks on aggressive membership recruitment drive

lion in 2023 compared to Ksh5 million this year. Present economic crisis and the need to ensure that the Saccos staff are well remunerated will see staff salaries rise to Ksh 3.5 million in 2023 from the present Ksh 3 million.

Members approved an increased budget provision for bad debts to Ksh5 million for the year 2023 up from the present Ksh4 million while an extra Ksh400,000 was factored in for taxes for 2023.

Next year Ksh3 million will be spent on committee allowances and other expenses as compared to this year's Ksh2.3 million.

The budget for members’ education, committee and staff will consume Ksh5.3 million.

Management allowances will cost Ksh500,000, professional services Ksh500,000, internet services Ksh250,000 and Corporate Social Responsibility (CSR) Ksh400,000. Funds for Annual and Special General Meetings will cost Ksh1.5 million. ICT maintenance will consume Ksh600,000 while marketing, National Social Security Funds (NSSF) contributions, insurance and consultancy fee payments will each cost Ksh2 million.

By Wasike Elvis

Uasin Gishu County Government has expressed commitment to improve the livelihoods of residents through the County Enterprise Development Fund (CEDF).

Martha Cheruto, County Executive Committee Member (CECM) for Cooperatives and Enterprise Development, said the government aims to ensure that residents are empowered financially through the Fund. She called upon residents to apply for the funds to help them improve and boost their businesses.

“The funds are available and will only be given to those in groups and cooperatives,” she said.

Cheruto said that the administration will continue to provide guidelines and policies that will make CEDF self-sustainable to enable it enhance livelihoods up to the grassroot level for enhanced service delivery.

“The CEDF, which was established in 2014, has so far disbursed

loans amounting to Ksh648,939,999 to 234 Cooperative societies including; 62 marketing cooperatives, 57 investment/value addition cooperatives, 42 Saccos, 17 youth cooperatives, 19 women cooperatives, 11 traders Saccos and 26 other cooperatives on asset financing,” she added.

Cheruto noted that decentralization of services is geared towards enhancing cooperatives revolving fund to enable them access affordable funding, build a robust cooperative movement, optimize CEDF Act 2019 to streamline Fund management, and encourage Cooperative enterprises to borrow funds from the kitty.

Isaac Lagat, Acting Chief Officer for Cooperatives and Enterprise Development, said the departmental strategic plan will help them realize sustainability to enhance repayments, monitoring and evaluation notwithstanding the revival of dormant ones.

Philip Mamet, chairperson CEDF, said the loan repayments are at Ksh221,458,583 and that the Fund has asset-financed a number of cooperative societies including; Tuiyotich FCS(pickup), Tuiyoluk (Lorry), New Progressive (tractor), Olendu (sawmill and tractor) and Kibagenge bodaboda Sacco (motorbikes), among others.

Imarisha Sacco launches tailored products for new members

By Benedict Ng’etich

Imarisha Sacco has launched new tailor-made products to help new members achieve their financial dreams.

Sacco chairman Mathew Ruto noted that the products include the take off loan which caters for newly employed people and does not require one to have deposits. The repayment period is 84 months and the applicant should have minimum share capital.

interest from members’ loans was set at Ksh47 million for 2023 up from Ksh45 million

in the current year.

The cost of management risks will rise to Ksh 6 mil-

Neno Sacco is ranked one of the best managed Saccos in Mt Kenya region. It provides passenger transport and courier services across various parts of Mt Kenya region as well as Nairobi-Mombasa network.

“We have the needs of our newly employed teachers at heart hence we innovated these products to enable them access financial stability,”Ruto said.

The Sacco reviewed the amount of Karibu loan from Ksh 70,000 to Ksh 100,000. The loan doesn’t require shares but a posting letter and casualty from the school.

The superior product has a repayment period of 96 months and can be accessed by all members. One is eli-

gible for 4 times their deposits.

“We developed these products since we’re keen on ensuring that all our members from all walks of life benefit from the variety of products and services. We therefore encourage all our member to patronize the newly developed products.’’ Ruto concluded.

Bernard Maembe, chairman Komarock Housing Cooperative Society.

Photo/ Agnes Orang’o

The head of Neno Sacco Courier Services Erphy Muriithi explains a point during an interview with the Sacco Review at his office in Embu town.

Photo/ Robert Nyagah

Mathew Ruto, Imarisha Sacco chairman

WAKENYA PAMOJA WAKENYA PAMOJA SACCO SOCIETY LIMITED

You, Our Concern ...

The Chairman, Board of Directors, Delegates, Staff and members of Wakenya Pamoja Sacco extend heartfelt congratulations to EGH Simon Kiprono Chelugui on his appointment as CS Cooperatives & Micro Small & Medium Enterprises(MSMEs) Development To

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1. Ordinary Sacco Account Co-orporative Societies, Farmers, Civil Servants, Business People Features

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• Fast Loan processing

• Nowithdrawal limit

• Minimum opening and operating balance

• Access to ATM and Msacco

4. Wakenya Akiba Account Savers Features

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2. CorporateAccount Schools, Churches, Hospitals, Firms Features

• Affordable credit facilities

• Minimum opening and operating balance

• Competitive interest rates

3. Wakenya Fosa Account Institution Employees, Pensioners Features

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• Fast Salary processing

• Minimum opening and operating balance

• Access to ATM and Msacco

Wakenya Pamoja is proud to be associated with The Hustler Fund and is ready to lend to Micro Small and Medium Enterprises.

The Sacco established a standalone Micro Finance department in 2004 under the support of Centre for International & Development Research (CIDR). The department, which started small, has since grown because it lends to organised and registered groups with a common financial activity. It has touched so many lives of people who were unable to access credit as individuals due to lack of collateral to stand in for their loans.

The Sacco has very wide experience in managing group lending.

By Erick Nyayiera

Afya Sacco Society Limited has steadily cemented a position for itself as one of the top performing giant Saccos in the country.

The Sasra Report 2021 ranked the Sacco the fifth wealthiest Sacco with assets base worth Ksh 20.87 billion, deposits worth Ksh 15.61 billion, loans worth Ksh 13.40 billion and income worth Ksh 2.43 billion.

The Sacco, with a membership base of 38,000 health personnel across the 103 branches countrywide, has registered such tremendous success in the roll out of effective financial services and investments support to its members owing to a number of policies put in place, amongst them members’ empowerment.

The Sacco’s national chairperson Mrs Beatrice Mogire said she is set on a mission to revitalize the cooperative union in the best interest of members’ individual economic improvement.

Speaking to members during the Sacco’s countrywide education campaigns, Mogire said her mission is to clean the Sacco and ensure members’ economic satisfaction is steadily bearing fruits.

She insisted on proper management systems and the need to stick to the society’s core values which include integrity, professionalism, innovativeness, customer focus and team work.

Mogire expressed optimism that the Sacco is on an improvement trajectory and that all strategies have been exhausted to ensure that members are accorded quality financial services and investments opportunities.

“The new board ‘team fresh’ has been researching on the best practices to employ to improve our Sacco. We took over and changed the way things are done. Since you have trusted us with your resources, we have the obligation and responsibility to ensure your money is properly managed for your economic growth and empowerment. I’m here to assure members that your money is safe,” Mogire noted.

She revealed that the board recognizes that the combined efforts of the leaders, staff and each member of the Sacco has led to the strides the society has made in terms of growth and development.

“The Board has rebranded the Sacco products to suit members’ needs and will ensure continuous innovations and improvements. We will also work tirelessly towards aligning products and services to the changing customer expectations and market trends,” she observed.

She added that the Sacco’s move to rebrand products was also facilitated by the need to ensure members’ economic well- being, the safety of their savings and the promotion of equity and fairness in delivery of services.

Mrs. Mogire added: “Members requested that we review the share savings pegged on loaned amount policy and the management is delighted to share that the pegging has been waived. The minimum monthly share contributions will thus be Ksh 5,000 only irrespective of credit advanced. We however

Afya Sacco holds members’ Education Day trainings, rebrands products

The Sacco’s move to rebrand products was also facilitated by the need to ensure members’ economic well- being, the safety of their savings and the promotion of equity and fairness in delivery of services - National Chairperson

pending remittances across our County governments against our loan demand of Ksh 600 million. While it has been difficult trying to get the money, I must state that engagement with various leaders are positive and bearing fruits,” she revealed.

During the nationwide education forums, members expressed their confidence in the new management and thanked them for holding the trainings.

They revealed that the trainings had enabled them to be aware of the numerous gains of being in a Sacco as they have greatly suffered in the hands of other exploitative loaning agencies.

Beryl Achieng, a pharmaceutical technologist in Siaya County, revealed that the last education campaigns and membership drive by the Sacco National Board was conducted in 2008.

encourage members to save more for their own future benefits.”

The chairperson pointed out that her management will remain vigilant to market dynamics while endeavoring to constantly carry out necessary reviews purposely to target and address the changing aspirations and diverse needs of the members.

She urged Sacco members to patronize the Sacco products since the Sacco is their distinct identity.

“It’s regrettable that our health professionals continue to suffer and have been made vulnerable owing to the exploitation by other lending organizations yet they have an established society able to effectively address their financial needs,” appealed the Chairperson.

The Management Board, in its proactive approach based on members’ views and sourcing of best management practices, is currently in the process of developing a five year strategic plan that will guide the reputable society’s activities and programs moving forward.

“We have a team that was sent across the country to collect views from members on how we can improve our services. The team was tasked with sourcing for management practices that will take us further in

the next five years. The strategic plan, which is in its final stages, will be launched during our Annual Delegate Conference. It will clearly spell our vision for the future including identifying our society’s goals and

objectives,” Mrs. Mogire pointed out. She expressed concern over the delayed remittances from various County governments noting that it was occasioning serious hitches.

“We have over Ksh 500 million

“We have every reason to believe in the new Board which is dubbed ‘team fresh’ that has purposed to visit us at our working stations and listen to our plight.” She noted.

Members from Siaya County Referral Hospital branch follow proceedings during the Education Day training

Afya Sacco Chairperson Beatrice Mogire and the Board addressing members during one of the training sessions

Beatrice Mogire, National Chairperson

MISSION

To mobilize and provide all inclusive financial services to our members at competitive terms

PRIMARY OBJECTIVE

AFYA SACCO SOCIETY LTD

Emopwering Members To Invest

P.O.Box 11607 - 00400, NAIROBI: AFYA CENTER TEL: 2223970 / 61 Email: infoa@afyasacco.com | Website: www.afyasacco.com

VISION

To be a premier financial institution

MOTTO

Together we achieve

Integrity

Professionalism

Innovativeness

Customer Focus Teamwork

The society’s main objective is to promote thrift among the members by affording them an opportunity to accumulate savings and create a source of funds from which loans are disbursed to them for productive and provident purposes.

REVIEW OF LOAN PRODUCT & INTEREST

EMERGENCY LOAN AFYA PERSONAL LOAN

AFYA SUPER LOAN

CAPITAL LOAN

AFYA SENIOR CITIZEN LOAN

investment has invested heavily in real estate and land projects to empower members to invest and improve their ecomomic status

AFYA MWALIKO LOAN

This is for new members who are between 2-6 months in check off contributions to the sacco. This product is meant to welcome new members to the sacco.

FEATURES:

• Members can get loan in 2 months after joining

• Maximum loan will be Ksh.300,000/- and retain 10% loan value

• Maximum repayment period is 12 months

• Salary to be passed through Fosa

AFYA KUBAMBA LOAN

Land projects are very porpilar and the happiest moments is when members are shown their plots and receiving their title deeds as well

SHARIA-

Afya Sacco members retirees can now comfortably continue enjoying the services of the Sacco by requesting their pensions to be channeled through our FOSA and they are still eligible to access financial services and loans

To qualify, one must direct and maintain His/Her pension and retirement cheques into and Afya Sacco FOSA Salary Account

Benefits

This allows a member a convenient and safe established mode to receive his retirement benefit.

FOSA account will provide member with the other benefits like:

By Roy Hezron

A total of Ksh428.4 million will be injected into the country’s coffee cooperatives towards strengthening governance and capacity in the next four years as part of the National Coffee Revitalization Project (NCRP).

The entire project, however, will approximately cost the government a total of Ksh21.3 billion for the four year period earmarked for the revival of the country’s coffee sector. It is is being implemented in over 30 coffee growing counties.

The project will be taken up from the two levels of government, with the overall responsibility resting on the National Treasury, which assigns implementing agency responsibilities to county and national level agencies.

A huge chunk of the money will be used to revive the country’s coffee cooperatives under the Coffee Cooperatives Revitalisation Programme (CCRP), which has the largest number of coffee farmers.

Majority of coffee producers are smallholders who own less than 5 acres and sell their produce through Cooperative societies - yet they account for 60 per cent of the national coffee production.

Those owning above 5 acres, known as estates or small, medium and large scale farmers may sell their coffee directly through their marketing agents; they account for 40 per cent of the national coffee production.

Kenya has an estimated 700,000 smallholder growers who market their produce through 525 Cooperative societies, with each Cooperative owning and managing one or more wet-processing factories known us primary processing.

There are over 4,000 wet processing plants, including 3,300 smallholder estate farmers and 1,000 coffee Cooperatives pulping sta-

NYANZA

Govt begins execution of multi-million plan to revive coffee sub-sector

Further, the project will support enhancement of technical and leadership capacity among Cooperative leaders to mitigate identified weaknesses in previous studies.

In strengthening governance and capacity in coffee cooperatives, the project started by undertaking capacity needs assessment and later developed standardized training manuals.

It is supposed to be followed by a training of tanners’ course on governance targeting all government Cooperative officers, and also ensuring continuity in service delivery by newly elected leaders since the leadership code provides for one-third rotation in the management committee.

tions where coffee is pulped, grade, washed and dried.

The revitalization project, launched in April 2020 by the then Cabinet Secretary (CS) for Agriculture, Livestock, Fisheries and Cooperatives Peter Munya, is meant to revive the coffee industry to alleviate poverty in the coffee growing areas and provide a reliable source of livelihood among coffee growers.

A look into the project document which Sacco Review has seen reveals that in the Ksh428.4 million, Ksh26.4 million will be spread over four years to strengthen governance, with the government spending Ksh7.2 million for the first three years till 2023 and Ksh4.8 million in the fourth year; 2024.

On the other hand, Ksh402 million will be used for capacity building, with each year being allocated Ksh114 million for a three year period.

In order to strengthen governance, the project will develop and/ or review and further issue guidelines on mandatory Cooperative governance structures in all registered cooperatives, develop and issue guidelines on key management tools including budget, audited accounts, and procurements.

Others include formulation of terms and conditions of service and business and strategic plans, and developing new guidelines, as well as reviewing existing ones on accountability, plus enforcement of the code

of ethics and conduct for Cooperative officials.

The project also will support the State Department for Cooperatives (SDC) to develop and issue guidelines on induction courses for newly elected Cooperative leaders, and holding a training of trainers’ course on the induction of new leaders.

At independence in 1963, the production of coffee was 43,778 metric tonnes (MT), which subsequently peaked at 128,926 MT in the year 1987/88.

However, following the collapse of the International Coffee Agreement in 1989, production of coffee steadily declined to hit a rock-bottom 40,000 MT in 2015-2017 Coffee Year.

Middlemen and brokers have been cited as a stumbling block to negotiating better prices and international markets for the produce due to the lack of transparency and accountability in the trade.

Fisheries research centre to receive Ksh2.5B grant

By Fredrick Odiero

Mining and blue economy

Cabinet Secretary Salim Mvurya has disclosed that Kabonyo Kanyagwal Fisheries and Aquaculture Research Centre will receive a grant worth Ksh2.5 billion.

Speaking in Kisumu during the blue economy conference, the CS revealed that the money will be disbursed in two phases and that the first phase has been approved by the Cabinet at Ksh1 billion.

“The ground breaking of the fish centre will be done in February 2023 by President William Ruto,” he said, adding that the research centre will produce 7 million fingerlings annually and boost food and nutrition security.

He revealed that to further cushion farmers from post-harvest losses, the government has embarked on constructing fish landing sites across the lake region to promote value addition.

“We’ve already constructed a Ksh124 million fish site in Lwanda Kotieno and a similar project is currently underway in Mulukoba in

Busia. Others will be set up in Ogal, Wich Lum and Asat beaches,” he said.

The CS expressed concern that 90 per cent of global trade occurs in Indian Ocean and not Lake Victoria, which had great economic potential but is underutilized for wealth and employment generation.

“It is important for countries

around the Indian realm and Lake Victoria basin to pull their synergies together to share resources and skills of managing the ocean and the lake in a sustainable manner,” he added.

Mvurya revealed that the government is finalizing a draft policy paper on the blue economy strategic paper that will ensure effective

Mining and Blue Economy

Cabinet Secretary Salim Mvurya (centre) arrives at Kabonyo Kanyagwal Fisheries and Aquaculture Research Centre.

management of the ocean and lake resources in an equitable and sustainable manner.

"The policy paper seeks to address, among other things, environmental sustainability as well as social and economic sustainability programmes," he said, adding that once the strategy is adopted, issues of

water pollution will be a thing of the past.

He noted that the government will ensure stringent measures and stern action is taken against factories polluting water.

Kisumu County Deputy Governor Dr Mathews Owili disclosed that the fisher folk has lost upto Ksh1 billion as a result of death of fish.

He revealed that the county government has set aside Ksh3 million to cushion farmers from the losses.

Through the money, the farmers will purchase fingerlings and feeds to restock the cages.

His response follows an outcry by fishermen in Lake Victoria basin that they were losing massive investments due to high deaths of fish in the lake.

The conference addressed, among other things, the viable ways of sharing lakes’ resources in a sustainable manner, managing the lake resources equitably, tapping opportunities in the lake and ocean, and utilizing the lake as an economic resource.

Photo/ Fredrick Odiero

COFFEE GROWING COUNTIES IN KENYA

Dedan Kimathi University of Technology Mechanical Engineers demonstrate to boda boda riders how the coffee pulper operates. Saccos have been challenged to tap into the SME sector. Photo/ Asa Maina

Ihave been busy with my business associate Ole Gunia, with whom, I am sure by now, you know we have a honey processing startup in Mavumbi town.

Already, Asali Asili Enterprises has been showing prospects of lifting us from the economic doldrums that stuck since the Covid 19 pandemic struck.

For your information, we have acquired rental premises where the semblance of a cottage industry will be operating from.

I remember telling you about Gololi, our errand boy who was attacked by vagabond bees.

By Pascal Mwandambo

He has since recovered from the ordeal, but has vowed not to work with us again unless we pay him his full dues in advance.

That is yet to be agreed upon.

So I was in our business premises in the outskirts of town, supervising an artist working on the business signboard, when my cousin Tim called me

OPINION

In the book Managers as Mentors, Chip R. Bell uses the acronym SAGE to summarise mentorship.

‘S’ stands for surrendering. This entails the leveling of learning and the kindling kinship as the mentor establishes rapport with mentee.

‘A’ connotes acceptance. This is the creation of a safe haven for risk-taking. The process of moving from novice to mastery is clear like crystal: the protégé must embrace the risk of making and mending mistakes. Taking such a risk, particularly in the presence of another person, requires some ounce of courage.

‘G’ means gifting. In most cases, mentors offer the gift of advice and more to their mentees. The mentor’s greatest gift addresses the power of passion, spirit and enthusiasm in the mentorship relationship.

‘E’ stands for extending. This focuses on nurturing a self-directed learner to ensure the transfer of learning.

It also focuses on managing the sweet sorrow that follows life after mentoring. For almost every mentoring relationship eventually comes to an end.

saying he needed some business ideas from me.

Apparently, he had acquired a business loan from a mobile lender to the tune of 5,000 shillings.

Some people intimate that mobile money lenders can be as mean as Shylocks, and unless one is business savvy, chances of messing up are quite high.

You see, Tim’s excitement was not as much about the kind of business he would start, but the mere fact that he had finally bought a smartphone and then managed to get a loan using an app on the device.

Fortunes change, and this was his moment. All along he had been using a mulika mwizi held together by rubber bands.

I told him we could meet at Makuti Bar.

I’ve always held the belief that it’s wise never to stand in the way of someone pursuing their dreams, however far-fetched they may sound.

Within half an hour Tim was in town, waving his smart phone in the air.

After exchanging pleasantries and village weather updates, and how his goat Susan produced twins, we got to the gist of our meeting.

Wearing the face of a motivational speaker, I told him that even prominent businesses began with little capital.

He suggested that we should have a few bottles of beer to “unlock the brain” so that business ideas could come flying in torrents.

The beer tasted quite nice as soothing music played through huge speakers mounted on the ceiling.

Yondo Sister came over and after wiping our table, enquired if we would need lunch so that the kitchen staff could be alerted.

W RLD

My cousin’s business idea that was blown up by Makuti bar

Tim nodded vigorously, saying it was obvious alcohol cannot be taken without some good nyama choma. We ordered for roasted goat locally known as ‘tumbukiza’. We also ordered for ugali to go with the goat.

When Yondo Sister came over to serve our fourth round, Tim also

asked her to take a soda.

She declined, suggesting she would take “Guiness kubwa mbili” after work.

Tim agreed to this request, not knowing how much damage this was dealing his mobile wallet.

By the time we were through with “patting our backs” after discussing

Why we should have mentors

But what exactly is mentorship?

In Hebrew, 'Rabbi' is a great teacher. In Sanskrit, a 'guru' is one with great knowledge and wisdom. 'Gu' means darkness and 'ru' means light. Therefore, a 'guru' takes someone from darkness to light.

In Tibet, a 'lama' is one with spirituality and authority to teach. In Tibetan Buddhism, the 'Delai Lama' is the highest-ranking teacher.

In Italy, a 'maestro' is a master teacher of music. It is the short form of 'maestro de capella' meaning the master of the chapel. In France, a 'tutor' is a private teacher.

In England, a 'guide' is someone who knows and shows the way. In Greece, a 'mentor' is a wise and trusted advisor who is a protective and supportive counselor.

A mentor leads by showing a true example. A mentor does not tell you what to do, but shows you how to do it. In life, you are either a mentor or tormentor, just like you can either be a warning or an example. You have the latitude to choose who you want to be.

In the book titled Unstoppable: Achieving Excellence and Beyond, Rosemary Kibui and Timothy Kipchumba contend that a mentor is a trusted person who is more experienced in life and can inspire one to achieve their dreams in life.

Having a mentor in life is good because he/she determines your mentality. What you fail to learn through mentorship, you will learn through experimentation.

Apostle Paul of Tarsus mentored Timothy. Once you are mentored, you should also mentor others. In 2 Timothy 2:2 (KJV), Paul pens these wise words with confident conviction, "And the things that thou hast heard of me among many witnesses, the same commit thou to faithful men, who shall be able to teach others also."

Socrates mentored Aristotle. Aristotle mentored Plato who in turn mentored Alexander the Great.

In business, Steve Jobs mentored Mark Zuckerberg. No wonder, Laurent D. Daloz succinctly said, "Mentors are guides; they lead us along a journey of our lives, we trust them because they have been there before us."

Characteristics of mentors

Mentors are people who fear God. They possess positive qualities and attributes that you admire. They are outstanding leaders in their fields of

zero business ideas, Tim’s mobile loan was virtually depleted.

When he finally checked his balance, only a hundred bob was left, which was his fare back to the village.

I reminded him he now could get a second loan, which I wasn’t sure he could.

specialization. Mentors are always available when you need their counsel. You can easily meet, greet them and drink from their deep wells of wit and wisdom. They are people who always keep learning. They love and cherish knowledge. Mentors are people who can listen aptly and offer help. They are people who highly inspire and motivate you.

Confucius, the great Chinese philosopher, put it aptly: "When you see a man of worth, think of how you may emulate him."

You don't attain mastery in a particular field just in a jiffy. You must accept to be an apprentice, journeyman, then a master. Apprentice means a learner. It is derived from the French word 'appendre', which means to learn.

In the distant past, an apprentice was a name given to someone who would select a trade, then find a master in his village to teach him the skills needed in his chosen vocation. After learning all he could from the local master, the apprentice would then travel to broaden the scale and scope of knowledge. Why? Because life is a journey, not a destination. If you want to know the road, ask those who are coming back.

Mufate ‘G’ Sacco eyes increased membership to boost growth

huge potential in the region will improve its membership.

“With devolution, we can target county and institutional staff, pensioners, and even teachers,” he said.

Mwisiahi

By Cally Imbayi

Mufate G Sacco will turn its focus on increased membership in a move aimed at boosting its balance sheet.

Additional members will enable it get more deposits and loans as key ingredients to push its growth to higher levels.

Board Chairman Dunstan Mwisiahi said that to grow and generate more revenue, members have to be steadfast and continue recruiting more members.

Speaking during the Sacco’s Special Delegates Meeting, the Chair expressed optimism the

Additional members will enable it get more deposits and loans as key ingredients to push its growth to higher levels. With devolution, we can target county and institutional staff, pensioners, and even teachers

urged the delegates to encourage tea farmers to continue delivering their produce to Mudete factory to enable the Sacco earn an income and remain financially stable.

He further appealed to those delivering their tea to multinational companies to instead channel their proceeds through the Sacco.

The Society has Bosa and Fosa sections that process members’ salaries and payments from tea deliveries.

Mwisiahi said the Sacco is financially sound to give loans to members to meet their financial goals and obligations.

With different products such as investment,

development, emergency and school fees loans, Mwisiahi said they are willing to process loans in a timely manner.

“Our balance sheet is healthy and we will not take more than three days to give you loans if you sign the forms as required and get guarantors,” he said.

He encouraged members to take different products on offer such as investment loans to develop and improve

their living standards.

“The minimum investment loan one can take is Ksh500,000 repayable in five years at 1.1 per cent interest rate,” he said.

However,

he discouraged them from diverting loans to engage in unplanned projects.

“If you take a loan for development, when you get to Khayega market do not buy other things,” he advised.

Members who take development loan repay for 36 months at 1.3 per cent interest rate.

Recounting the Society’s journey from its years of inception, he expressed optimism that the Sacco is now stable and members can trust it with their deposits.

“We are licensed by the Sacco Societies Regulatory

Cont. next page...

Kakamega County Director of Cooperatives Mr. Ben Kangale receives a gift from Sacco chairman Mr. Dunstan Mwisiahi during the SDM

Some of the board members

Mr. Anthony Bitinyu, Sacco CEO, addressing delegates

Chairman Mr. Dunstan Mwisiahi during the Special Delegates Meeting (SDM)

Sacco’s asset base rose to Ksh 380 million by December 2021 from Ksh 310 million in December 2020. Its deposit portfolio also jumped from Ksh220 million in 2020 to close at Ksh230 million as at December 31, 2021.

Sacco targets income growth to Ksh70.3 M in 2023

Authority (SASRA) and abide by its regulations to ensure safety of members’ investments,” he explained.

He encouraged members to be entrepreneurial and take loans to engage in income generating activities.

“The main challenge is that we either think we cannot do business or we are too old to go into business and we need to change that,” he posed.

On savings, he encouraged members to save with the Sacco, identifying Fixed Deposit Account as one platform that can enable members mobilise their savings.

According to the Sacco Supervision Annual Report, 2021, Mufate G Sacco reported an asset base of Ksh380 million by the end of December 2021.

This was an improvement from

the Ksh310 million they reported the previous year.

Its deposit portfolio also jumped from Ksh220 million in 2020 to close at Ksh230 million as at December 31, 2021.

Its loan book increased to Ksh210 million in 2021 compared to Ksh200 million reported a year earlier.

The chairman projected to grow their income to Ksh70.3 million in 2023, saying they will allocate part of it to training members, management and staff.

Education, training and information are the fifth principle of the cooperative movement, with Saccos investing huge resources on it.

Key areas of focus of the training are governance, administration and personnel.

Sacco’s Chief Executive Officer

MUDETE TEA SACCO

We are a Savings and Credit Co-operative Society that provides financial services to farmers, business, community and institutions

VISION:

To be a leading financial service provider nationally

Core Values: Team work, Competitiveness, Integrity, Accountability, Service Excellence, Efficiency, Social Responsbility. PRODUCTS

Savings Account

An Account used for ordinary savings whereby deposits and withdrawals are made, it’s used to process salaries, tea payments, cheques and other payments.

Fixed Deposit Account

This is an Account that targets anybody willing to save and does not attract any bank charges.

Features :

- No ledger fees.

- No transaction fee.

- Minimum deposit of Ksh 10,000 for a period of 3, 6, 9 and 12 months.

Children Account

This is an Account for minors opened by parents/guardians on behalf of their children. It attracts no bank charges.

Micro - Finance Account

This is an Account that encourages savings by micro finance clients.

Features :

- Ledger fee Ksh 300 per annum.

- Membership five and above.

- Registration of Ksh 100 per group.

- Group contribution per month.

- Minimum balance of Ksh 1,000.

- Minimum interest earnings of Ksh 5,000.

- Attractive interest rates calculated at end of year.

Cooperate Account

This Account targets schools, churches, hospitals, coffee Societies and businesses Community

christmas Account

This is an Account that encourages savings for members for christmas

MISSION:

To empower our customers economically through mobilization of resources & provision of quality, diversified and competitive financial solutions.

LOAN

Development Loan

These are loans given to farm projects like buying land, building houses, buying dairy animals, poultry and extension of tea.

Micro - Finance Loan

These are small loans given to organized groups to invest in income generating activities e.g. dairy farming, horticulture, small businesses etc.

School Fees Loan

This is a loan given to members to pay school fees of all kinds.S

Emergency Loan

This is a loan given to members to meet emergencies like hospital bills, house fires, court cases etc.

FOSA

FOSA Loan

These loans are granted to members whose salaries are remitted through their FOSA savings account.

Crop advance

This loan is an advance to members for farm use.

Salary advance

This is a product for salaried customers. Its meant to meet emergencies.

Special advance

Sugarcane Loan

Coffee Loan

Wamama Loan

Business Number: 506492

For more information contact us

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Some of the delegates during the special meeting

Cont. from previous page...

Madam Sharon, Mufate G Sacco Marketing Manager

Cont. next page...

Sacco to review by-laws to align with dynamic business environment

Cont. from previous page...

(CEO) Anthony Bitinyu noted that their by-laws review was long overdue; the last time it happened was 11 years ago.

“We intend to review our bylaws and business policies in order to align with the changing business environment and correspond with the changing needs of the Society,” he said.

He disclosed that they have engaged a consultancy firm to help them in the review of the document.

Besides, it has come up with an election manual that will govern our election process.

Kakamega County Director of Cooperatives Ben Kangale lauded the Society for remaining stable, identifying the inclusion of women in the Board as a major achievement.

Mr. Kangale, who was the chief guest, encouraged the

OPINIONS

Sacco to make good use of its common bond in order to utilize the presence of various institutions and government departments to recruit more members.

Kakamega East Sub-county Cooperatives Officer Harriet Opamo urged the delegates to portray a positive image of the society.

During the event held at Bishop Stam Pastoral Centre in Kakamega on November 5, 2022, Mwisiahi disclosed that they will present the budget for approval during the Saccos’ Annual General Meeting to be held later this year.

Mufate G, one of the largest Saccos in the Western region, has grown in leaps and bounds towards financial self-reliance and sustainability over a long period of time.

Coop sector must take part in climate change mitigation

According to the United Nations, climate change refers to long-term shifts in temperatures and weather patterns. These shifts may be natural, such as through variations in the solar cycle.

But since the 1800s, human activities have been the main driver of climate change, primarily due to burning fossil fuels like coal, oil and gas.

Humans are increasingly affecting climate and raising temperature levels by burning fossil fuels (coal, oil and gas), cutting down forests, farming livestock, overusing resources, and rising consumerism.

All this adds hugely to greenhouse gases and increases the greenhouse effect and global warming.

Kenya’s cooperatives of all levels must demonstrate through their actions the intent and capacity to combat climate change in a people-country friendly manner.

These entities must take action to mitigate, adapt, and respond to climate change. They must actively be involved in climate action and engage in a dialogue with other stakeholders and government on how to strengthen and make collective impact visible.

Concern for community is one of the Cooperative principles which guides their work around the world. In the context of climate change and food price rises, cooperatives do play a role in rural areas in Kenya. They now must reduce carbon emissions, but also promote sustainable development in general.

Farmers’ organisations and agricultural, fisher and forest user cooperatives are

effective partners in managing community level responses to natural disasters and climate change.

For example, alternative production practices, non-farm rural livelihood options and enterprise diversification can increase the resilience of rural communities when confronted with climatic hazards.

Savings and Credit Cooperative Societies (Saccos) can also assist in linking rural communities with higher scale public and private institutions.

They can, for instance, ensure timely early warning about disasters.

However, there is no “one size fits all” solution, particularly at the local level. Decentralised ways of working that consider local bio-physical, socio-economic and socio-cultural factors are needed, along with coherent national policies to manage risks and adaptation. The proximity of co-

operatives and producer organisations to rural people and their capacities to achieve economies of scale by grouping multiple, small producers mean that they have a key role to play in ensuring rapid, effective and sustained responses to climate change.

By adhering to environmental standards and promoting local production and marketing as opposed to long distance transport, consumer and producer cooperatives can help to limit greenhouse gas emissions.

The large size of their membership places cooperatives in a unique position to raise member awareness about the importance of reducing their carbon footprints and to lobby governments to significantly reduce their greenhouse gas emissions.

Strong and well-managed cooperatives have the capacity to strengthen the adaptive capacity of smallholder farmers as well as enable them to take mitigating actions by promoting adoption of climate smart agriculture practices targeting sustainable intensification.

Co-operatives are resilient; finding ways to survive when other businesses would simply close. As a result, they are more stable businesses in communities. This type of resiliency will be critical in the face of a changing climate and increasing volatility due to extreme weather and other environmental changes.

Effective climate change mitigation can only be achieved by complementary and collective action to avoid individual initiatives that may offset efforts in other areas.

It is clear, however, that co-operatives are one of the most exciting and powerful vehicles through which societies can confront the defining issue of our age, the climate change.

Profits

or losses, coops should embrace integrity when declaring finances

As the year comes to a close, cooperatives are about to close their books of accounts in readiness for handing over to appointed auditors. The reports will, at the beginning of next year, be released to members who will then know whether or not the cooperatives made profits.

Most cooperatives are now in a precarious situation but the right thing must be done. They should declare their financial books as they are: profits and losses.

It’s worthless to declare profits then borrow elsewhere to pay interests and dividends as the impact will be more severe.

2022 has been tough owing to the harsh financial conditions which negatively impacted members’ ability to meet their financial responsibilities. There was political instability due to the electioneering and the Russia-Ukraine war that led to high inflation.

These factors and much more affected members’ finances, hence there is the possibility that most Saccos will register losses.

It’s my prayers that members, especially those from agricultural cooperatives whose revenues must be less due to the harsh climatic conditions, will be ready to accept reality.

To avoid such cases, cooperatives need to plan for the future and if possible, have projected short term and long term development plans. A cooperative that is

The author is a Masters student pursuing Cooperative management at the Cooperative University of Kenya ngugipa@gmail.com

able to plan will in future withstand any tide that works against them.

Any cooperative that is on the verge of crumbling should embrace professional management standards and advice and rewrite their story.

It’s my prayer that 2023 shall emerge a success story for all cooperatives, especially now that we have a standalone ministry.

2023 should open a new era for cooperatives and excellence should be our foundation.

Wishing all a merry Christmas and happy new year!

David Kipkorir The

Ngugi Ruo

Some of the supervisory committee members

By Hezron Roy

The Central Bank of Kenya (CBK) has rolled out the Credit Repair Framework plan as a move to ensure about 4.2 million Kenyans who were blacklisted by Credit Reference Bureau (CRB) over loan default are removed from the lists.

The plan involves commercial and microfinance banks as well as mortgage finance companies and institutions.

The move comes after President Dr William Ruto in September 2022 met officials from the National Treasury, Central Bank, Safaricom, Kenya Commercial Bank (KCB) and NCBA and promised that over 4 million loan defaulters will be removed from CRB and other blacklists from November this year. Anyone listed on CRB is barred from formal borrowing.

The Framework, which was rolled out on November 14, 2022 and will expire on May 31, 2023, is meant to improve the credit standing of mobile phone digital borrowers whose loans are non-performing and as a result have been reported to CRB.

CBK urged the concerned lenders (institutions) to contact their eligible borrowers to provide them with further details of the Framework.

“The Framework seeks to improve the credit standing of mobile phone digital borrowers whose loans are nonperforming and have been reported as such to Credit Reference Bureaus (CRB). The limited Framework will expire on May 31, 2023. The concerned institutions will contact their eligible borrowers to provide them with further details of the Framework,” said CBK in the statement.

CBK noted that through the

CENTRAL

How CBK plans to review CRB blacklisting model

by CBK. Digital loan borrowers from unregulated Digital Credit Providers were expunged from CRB in April 2020.

“It is anticipated that the Framework will enable over 4.2 million mobile phone digital borrowers, adversely listed with CRB, to repair their credit standing. The total value is approximately Ksh30 billion, equivalent to 0.8 per cent of the gross banking sector loan portfolio of Ksh3.6 trillion at end of October 2022,” added CBK.

CBK maintained that the borrowers covered in the Framework are mainly in the personal and micro-enterprises sectors and were adversely affected by the Covid-19 pandemic. CBK expects to enable them access credit and other financial services as they rebuild their lives and livelihoods.

framework, the institutions will provide a discount of at least 50 per cent of the non-performing mobile phone digital loans outstanding for the period ending October 2022; and update the borrower’s credit standing from nonperforming to performing.

To cater for the balance of the loan, the institution will then enter into a repayment plan with the borrowers for a period up to May 31, 2023.

After May 31, 2023, the credit

Property company announces diversification into agriculture

Dhahabu Land Limited customers queue to register for their title deeds at Ruiru Sports Club in Kiambu County when the company issued 2,500 title deeds to its investors.

standing of the borrowers will depend on their repayment performance with respect to the six-month period.

The plan will cover loans with a repayment period of 30 days or less and were offered by these institutions through mobile phones. It also covers the mobile phone loan borrowers from commercial banks regulated under the Banking Act and microfinance banks regulated under the Microfinance Act

ICOSEED urges farmers to accept GMO for better yields

By Mutuvi Janet

Integrated Community Organization for Sustainable Empowerment and Education for Development (ICOSEED), a NonGovernmental Organization (NGO), has urged farmers in Kirinyaga County to embrace biotechnology to boost food production and fetch more profits.

“Their lives and livelihoods were severely affected by the pandemic through inter-alia loss of employment and closure of their micro-enterprises. The adverse effects of the pandemic continue to linger for the covered borrowers,” said CBK.

During the meeting in September, President Ruto said the lenders agreed to develop a new credit score system as opposed to blacklisting customers, further explaining that the government will underwrite the risks that will come with the new move.

“We must think beyond financial inclusion to a more accessible and affordable credit model. I am very happy that between 4 to 5 million Kenyans will, from the beginning of November, be out of CRB blacklist. This is very important because these Kenyans have been excluded from any formal borrowing and have been left at the mercies of shylocks who exploit them,” stated the President.

On November 30, 2022, the government launched the Hustler Fund meant for inclusive growth and innovation in Micro, Small, and Medium Enterprises (MSMEs).

The fund, according to the government, is expected to offer the much needed relief and a new lease of life to over 8 million Kenyans who had been blacklisted by various credit rating agencies.

The fund offers affordable credit by charging an interest of 0.002 per cent per day, which is 500 times cheaper than the cheapest product rates of between 1 per cent to 10 per cent daily.

The fund also offers a return of 50 per cent on individual savings by way of government counterpart funding, implying that for every Ksh2 an individual saves, the government contributes Ksh 1.

Private partnership invites applications for innovation funding

By Kamau Njoroge

Consulting firm KCL has announced its partnership with Canadian firm Grand Challenges Canada (GCC) to help enterprises develop their innovative ideas in the climate and health spaces.

The call for proposals seeks bold solutions that address the human health impacts of climate change in low and middle income countries.

By Sacco Review reporter

Dhahabu Land Limited, whose core business is selling of commercial and residential properties, has said it plans to diversify into agribusiness in a bid to address food security in the country.

The company, operating from Ruiru, Kiambu County, said there is need for a collaborative approach between the private sector and the government to mitigate climate change, and at the same time pursue avenues that can accelerate the country’s bid to be food secure.

“We want to work with the government to make sure there is food security and as we launch this project soon, please support us,’’ chairman Joseph Chege told the company investors at Ruiru Sports Club during the handover of 2,500 title deeds to its customers.

Chege noted that the diversification

will also see the company boost earnings for its customers who, after buying land, can venture into farming either as individuals or contracted farmers.

Dhahabu Land Limited has real estate investments in Malindi, Matuu and Nanyuki.

High cost of land, especially in the Nairobi metropolitan area, has pushed buyers outside Nairobi where land selling companies are offering alternatives at lower prices.

July this year, HassConsult, which conducts quarterly property index pricing, noted that land prices in Nairobi’s surrounding towns such as Juja, Kiserian ,Syokimau,Tigoni and Ruiru recorded the highest jump among the suburbs last year buoyed by the appetite for residential and commercial properties. An acre of land in Juja for instance goes for Ksh18.5 million.

Patrick Gitari, chairperson of ICOSEED, said farmers will be taken through how GM technology is used, the roles of the National Bio-safety Authority in Genetically Modified Organisms (GMO) regulation, and the facts surrounding GMO food.

Gitari stated that the farmers will be educated more on the role of technology in the production of food, commonly referred to as genetically modified crops.

“Through genetically modified crops, we will end the famine being witnessed annually,” he added.

He said research has been done by Kenyan scientists and the crops have no side effects on the environment and human health.

He singled out BT cotton and BT maize, which normally do well in Central Kenya but the majority of farmers do not utilize it to increase yields due to associated myths.

“BT cotton is resistant to pests and fewer chemicals are required compared to normal cotton. If all farmers embrace it, all ginneries will be revived to boost farmers’ incomes and create employment.” He said.

Speaking during an interview, KCL’s Chief Executive Officer (CEO) Prabhakar Vanam expressed his delight as he rallied business owners to apply for the opportunity.

“GCC through the ‘Stars in Global Health programme’ is seeking innovative ideas that now stand to benefit from a seed grant of up to $150,000 CAD to develop and test the proposed innovation,” Vanam explained.

Through this call for proposals, GCC seeks to create an opportunity to landscape the state of innovative ideas seeking to address adaptation needs as climate change continues to impact health and wellbeing.

The call is open across Africa where 16 innovative ideas will win the funding opportunity.

“Locally-led organizations that are meaningfully connected with the communities they are looking to work with and for, are specifically encouraged to apply for this opportunity,” Vanam said.

The application has been automated online with KCL publishing application guidelines on its website.

Interested candidates were asked to register before the December 15, 2022 deadline.

Climate change continues to affect human health, with experts alluding that the increase in respiratory and cardiovascular diseases and premature deaths caused by non-communicable diseases could be arising from climate change effects.

It estimates that between 2030 and 2050, climate change will have caused approximately 250,000 additional deaths per year through malnutrition, malaria, diarrhoea and heat stress.

Dr Patrick Njoroge, CBK Governor.

Through the framework, lending institutions will provide a discount of at least 50 percent of the non-performing mobile phone digital loans outstanding for the period ending October 2022; and update the borrower’s credit standing from non-performing to performing.

Prabhakar Vanam, KCL CEO.

Saccos’ sustainability lies in ability to satisfy members’ needs

By George Otieno

Mombasa County Cooperative Director Nelson Nyoro has pointed out that the justification of Saccos’ existence is their ability to satisfy members’ needs. Speaking during Kenya Teachers Sacco Associations (KETSA) conference in Mombasa aimed at discussing the sustainability of Saccos and the Sacco sub-sector, Nyoro stressed that the sustainability of the association rested on its ability to stay, work on a common goal and remain true to its goal of serving members.

He noted that investment in people is a unique, competitive and a clear source of capital.

“Saccos need to recruit people with the best talent and invest in training of members to capacity-build them so as to help the Saccos grow to the next level,” he said.

Nyoro noted with satisfaction that the recent 100 years Ushirika Day celebrations are an indication that the Cooperative business model was sustainable and had the ability to grow and survive.

He urged the industry players to learn the philosophies embraced by the Sacco founders that enabled them to exist for so long.

“We need to ask ourselves about the sacrifices Sacco founders made. How did they make their financing, borrowing, dividend and recruitment decisions?” he posed.

Nyoro encouraged Societies to keep thinking of ways the present generation can consume without depleting them for future generations and come up with

relevant solutions for Sacco problems.

“Do not abandon your ideologies,” he advised, arguing that the Cooperative business model had sustained itself because it was a Sacco banking model (ideological and premised on Cooperative philosophy).

The Cooperative director urged the delegates to embrace good governance as a code of honour.

“Delegates should be disciplined and focused on investment as a source of sustainability and growth,” he advised.

He warned that there are times expansion could be termed as indiscipline, especially where a Sacco goes into a branch opening spree without capacity, clear feasibility and proper management framework.

Kenya Highlands Sacco to commence development of Kericho property

Nyoro advised Saccos to look into technology and strong systems if their businesses are to remain sustainable.

“The current business environment only favours institutions that develop and improve their technological infrastructure to compete favourably. How much of your transactions and services are supported by technology? Can your customers access your services at the comfort of their homes without physically looking for you?” he asked.

On succession management, he urged Sacco leaders to invest and begin shaping future leaders early.

He also emphasized on the need for Saccos to find solutions to problems before they culminate to serious crises.

He urged KETSA to think of means of effectively resolving their problems since if one Sacco is affected, all the others in the association will suffer.

“As an association that closely works together, we should be able to identify one of us who is experiencing difficulties and come to their rescue before things get out of control,” he advised.

He warned Saccos against feeling threatened by factors that necessarily were not meant to drive them out of business. He gave an example of a Sacco feeling threatened by the entrance of a new Sacco in their business environment.

“Another Sacco opening its doors in your neighbourhood doesn’t necessarily make them a competitor or business disruptor,” he observed.

The conference brought together over a hundred and fifty delegates from all member Saccos.

SASRA: Sacco value propositions more important than dividends

He noted that technological systems are the most important business infrastructure for Saccos.

“This was proven during the Covid-19 pandemic when institutions that had invested in strong and effective technological systems continued to provide services to their members despite the countrywide lockdowns,” he said.

By George Otieno

The ability of Saccos to enable members mobilize savings and take loans outweighs dividend payout, SASRA CEO Peter Njuguna has said.

Speaking during the Kenya Teachers Sacco Association (KETSA) conference in Mombasa, Njuguna noted that it’s the responsibility of industry leaders to effectively communicate the same to members.

Njuguna applauded the teacher-based Saccos for shaping the conversation about sustainability of Saccos and urged them to position themselves well to make their institutions financially sustainable for the benefit of future generations.

He revealed that teacher Saccos make 30 per cent of the total assets in the Sacco sub-sector, hence they should always think of the millions of people who have entrusted them with their resources.

In readiness for the second phase of the Hustler Fund expected to reach players in the Cooperative movement, the SASRA boss urged Saccos to prepare technologically to actively take part in the disbursement of the fund.

“Saccos have the network and the capacity to manage the Hustler Fund. You should then ensure your systems can monitor and account for the same,” he

advised.

He went on to add that the future of Saccos and their sustainability motivates the industry to continuously keep discussing about the regulatory tools such as shared technological services, central liquidity platform, deposit guarantee fund and stabilization fund.

“These regulatory tools were needed for the good of the industry because of their ability to help Saccos out of financial distress,” he said, adding that the attitude of the industry players is also important.

He urged Sacco players to share intelligence with the regulator about any misbehaviour in the industry so that SASRA acts faster to make the business environment a viable place.

The SASRA boss said the regulator provides the parameters within which Saccos can manage their members.

By Benedict Ng’etich

The Kenya Highlands Sacco is planning to commence the construction of the Kericho town building early next year that will be a landmark project to boost income generation once it is completed.

Sacco chairman Richard Mutai told a Special Delegates Meeting (SDM) that plans were at an advanced stage with paper work being finalized at the county headquarters before the official groundbreaking.

“We have applied to the relevant county and national authorities, and the regulator Sacco Societies Regulatory Authority (SASRA), requesting their ratification to undertake the project. We are also working on the technical aspect as we expect the project to start early next year,” he said.

The Kenya Highlands Sacco Society deducts Ksh600 from

in membership with an impressive 10,178 new entrants. They disbursed loans and advances amounting to Ksh2,347,686,603 as at the end of August 2022.

He said the Society had opened two satellite marketing offices at Kiptagich in Nakuru and Kaptumo in Nandi counties respectively, which had shown tremendous growth in membership and business reception. The board is considering recommending them as fully fledged branches.

“We did a feasibility study and found the two to be viable. We shall be tabling supplementary budgets for this year to enable us complete this process before the close of the year,” he said.

He said the Society had witnessed increased business with the introduction of more products targeting dairy and other business sectors.

He cautioned members who were cross-cutting multiple fi-

each member towards the construction of the iconic building that is expected to host general investors besides the Sacco activities.

“As at August 31, 2021, we had accumulated Ksh240,139,144 as shares towards the Kericho project. Out of this, ksh105,000,000 was used to purchase the plot and the current building, which leaves Ksh135,139,144 at our disposal for the dream investment,” he revealed.

The chairman told delegates they had finalized the 2023-2028 strategic plan, which envisages a growth on assets and revenue base by 10 billion shillings and Ksh1.8 billion respectively in the next five years.

“This is a very ambitious target and requires a concerted effort from all of us. For us to grow to 10 billion, we must grow our loan book by 2 billion shillings annually. This also calls for an upgrade of the IT system and the enhancement of education and marketing in the coming years,” he asserted.

Despite the tough economic times, the Sacco has grown steadily in the last eight months, witnessing a 10 per cent growth

nancial institutions dealing in same products, saying the activities may look beneficial in the beginning but in the long run it will negatively affect their individual financial soundness.

“We urge you to encourage members to remain loyal and patriotic to the society,” he added.

The Chief Executive Officer (CEO) Alice Kosgey said the economy had started recovering from the effects of the Covid-19 pandemic and expressed great optimism the Society business will be back on track as the Sacco of choice. She urged members to be loyal to the Sacco at all times.

The Kericho County Cooperative Officer Leonard Otii told delegates to be aggressive in their marketing activities to attract more members. He praised the management for following prudent and sound financial management practice that had seen them pay good dividends to their members.

Kenya Highlands Sacco is a huge agricultural Society that is spreading its wings across the country with the capacity to loan to other Saccos besides the mainstream services to members as a savings and credit organization.

Sasra CEO Peter Njuguna.

New face of Kenya Highlands Sacco. It is set for rebranding.

Nelson Nyoro, Mombasa County Cooperatives Director, delivering his speech during the forum.

Photo/ George Otieno

Delegates and officials stretching midway through a busy session.

Photo /George Otieno

How greed of middlemen helped build dairy cooperative

By Peter Otuoro

When dairy farmers in Elburgon Ward of Molo Sub-county came together with an idea of collecting milk daily as a group, little did they know that it would one day give birth to a colossal Society with a formal functional structure.

It all started in 2009 as a selfhelp group with less than 100 dairy farmers around Elburgon township. They had only one reason for coming together: to collect milk and sell to a single buyer and square the exploitative middlemen.

All they wanted was a fair price for their milk, which would also ensure that they are actually paid for the milk they delivered. They were tired of the brokers, who sometimes even refused to pay them the little they promised.

Considering the cost of feeds, they were alarmed that they would soon be impoverished as their production dropped slowly as the middlemen milked them dry.

That is how the Elburgon Progressive Dairy Farmers Cooperative Society was formed, whose chairperson Johnstone Sang narrates how they gradually made steps within a few years to become Nakuru County’s third most well-managed Sacco. They have a trophy that proudly proclaims this.

He said the group grew as more dairy farmers around Molo Sub-county joined, pushing away the divisive and uncompromising brokers.

The now steady supply of milk to one pool nurtured the idea of forming a dairy Cooperative society, which was first mooted in 2015.

Over 120 dairy farmers managed to form the dairy cooperative to serve farmers from Molo, Njoro, Rongai,

By George Otieno

The second phase of the Hustler Fund, which will commence in February 2023, will target the cooperative movement as it leverages on Saccos to reach a bigger population.

Patrick Kilemi, Principal Secretary (PS) in the State Department of Cooperatives, revealed this at a conference organized by the Kenya Union of Savings and Credit Cooperatives (KUSCCO) in Mombasa.

The PS said that so far, more than ten million Kenyans have enrolled in the platform applying for the funds, where more than six billion shillings has already been lent out.

The implementation of the fund, Kilemi said, will provide solutions to the current challenges facing young people.

He applauded KUSCCO organizers for running the annual conference five years in a row, bringing together over three hundred and fifty members drawn from different Saccos to deliberate on fundamental issues such as the challenges, opportunities and the emerging trends in the industry.

The discussions during the conference, the PS noted, would inform government policies and address the strategies to create an enabling ecosystem for sustainable cooperatives for socio-economic transformation of many Kenyans.

and parts of Kuresoi North sub-counties.

Sang said the majority of them are small scale farmers who have a common goal of ensuring they grow together economically, leaving no member behind.

During the initial stages, he said, they were able to collect 700 litres of milk per day, with some supplying up to thrice each day.

“We all worked hard until 2017 when we were able to buy land and set up a cooler at Karinga in Elburgon Ward where our offices are situ-

Hustler

He also revealed that in 2020, they secured another partnership with an NGO known as NARIGP through the county and national governments that assisted in mobilizing and sensitizing farmers on the need to come together.

He added that in 2021, NARIGP enabled them to purchase a tractor, silage chopper, grinder/mixer, disk plough, 18-disk harrow, high-sided trailer, laboratory equipment, as well as lease land to plant fodder. They were also able to build a feed centre for animal feed formulations.

Now they are able to offer essential services to farmers to improve milk production, including provision of animal health and agrovet services, transportation and purchase of farm inputs. They also hire out ma-

chinery like baler, tractor and silage chopper, as well as facilitating extension services through their extension officers. Those in dire need are given cash advances.

The chairperson said that currently, the Cooperative collects an average of 13,000 litres of milk from 1,400 farmers around their catchment areas.

“We have managed to open new satellite offices at Muchorwe Ward in Kuresoi North and Chandera in Turi Ward of Molo Sub-county,” said Sang. Their mission for 2023 is to hit 20,000 litres per day and 2,000 farmers; and it is possible as they have a dedicated manager Daniel Kiptum and an astute team of extension officers.

ated,” said Sang.

He said that in the same year, their toil paid off when Micro Enterprise Support Program Trust (MESPT) agreed to partner with them to purchase a 5,000 litre cooler, solar panels and other cooling accessories.

Later in 2019, MESPT would give them a loan on a low interest rate to purchase a 10,000 litre milk tanker.

“The tanker boosted our Cooperative activities because it enabled us to store our milk safely before selling,”said Sang.

Fund’s second phase to target the coop sector, says PS

“The output of the conference will not only provide information for expansion of the body of knowledge, but also highlight challenges and opportunities in the Sacco sector,” he pointed out.

He emphasized that the government was committed to developing the sector and that cooperators had the mandate to come together and build the industry.

The PS further encouraged the cooperators to invest in research and innovation so as to come up with new ways of doing business and remain relevant.

“You need to invest in strategies that focus on products, services, processes, business models, technology, marketing and social interaction if you are to serve your members effectively and efficiently,” he advised.

On the other hand, Taita Taveta Deputy Governor (DG) Christine Kilalo and chief guest of the day, representing the governor Andrew Mwadime, underscored the significance of the recently launched Hustler Fund, saying it will massively

boost national savings and promote economic growth through job creation.

She urged the congregation to take advantage of the funds as its lending scheme focuses on promot-

ing growth of micro enterprises.

“Cooperatives should invest in technology in readiness for the funds since the money will be disbursed through mobile phones,” she said.

Addressing the risks that come with the use of technology, the DG encouraged industry players to educate themselves on cybersecurity to prevent losses through hacking and other forms of cybercrime.

She added that the youth were more skilled in ICT and therefore should set up sustainable businesses in order to provide employment and create wealth.

Acknowledging the immense contribution and key role Saccos play in the country, Kilalo said the transformation of the Kenyan economy depended on increased financial inclusion through savings and affordable credit to MSMEs.

Using the example of Taita Taveta County, the DG said that by the end of 2021, Sacco membership had risen up to 91,996 from 61,430 in December 2018.

Member deposits further shot

up from Ksh1.25 billion in 2018 to Ksh2.09 billion at the end of 2021.

The total assets, she said, stood at Ksh1.89 billion in the base year, but later rose to Ksh2.58 billion during the end of the year 2021.

In 2018, the turnover was Ksh448.3 million, rising to Ksh564.1 million three years later.

The loans granted in the same period under review was a total of Ksh856.5 million and Ksh1.78 billion, as the share capital moved up from Ksh187 million in the year 2018 to Ksh237.4 million come end of 2021.

The number of Saccos also increased from 78 in 2018 to 107 by the end of 2021.

She expressed optimism in the Cooperative movement, saying that because of the continuous and consistent support from the national and county governments, she expected even further growth.

She noted that the KUSCCO summit provided a pool of knowledge and skills that had the ability to spur the growth of the Cooperative sector in Kenya.

The DG committed to use her office to direct the attention of Parliament to the Cooperative sector in a way that will help pass all the pending legislations related to the Cooperative sector.

The milk tanker owned by the cooperative society.

A member of Elburgon Progressive Dairy Farmers Cooperative Society at her dairy farm.

Cooperative extension officers in the agrovet.

Cooperative Chair Johnstone Sang (Right) with manager Daniel Kiptum at the cooler.

Johnstone Sang, Cooperative Chair (Right), with manager Daniel Kiptum in their office.

Johnstone Sang, Cooperative Chair (Left) with manager Daniel Kiptum.

Patrick Kilemi, PS Cooperatives & MSMEs.

Retired teacher: How Ksh5 million Sacco loan transformed my life

Farmers Saccos get 100 bicycles to transport farm produce

By Norah Musega museganorah@gmail.com

Farmers from West Kanyamkago and Kakrao wards of Migori County have received donations of 100 bicycles from Ripple Effect and World Bicycle Relief.

Titus Sagala, Director Ripple Effect, said the farmers will use the bicycles to transport their produce to the market.

He revealed that his organization started by promoting nutritious food and creating kitchen gardens in homes before seeing the need to increase extension services to more farmers.

Peter Wechuli, from World Bicycle Relief, said the donation will help farmers easily access markets for their farm produce.

The bicycle project was worth Ksh3M and the two said they will scale it up to Ksh10M in the future.

Jacktone Odundo, chairman of Suna East Pamoja Farmers Co-

By Tsozungu Kombe

Mrs. Agnes Kadzo Unda, a member of Imarika Sacco, can attest to the benefits of being a member of a Sacco.

Unda joined the Sacco in 1982 after completing her P1 Teacher Training Course at Kagumo Teachers Training College.

Speaking to Sacco Review in her residence in Ganda village in Malindi Sub County recently, Unda revealed that she took a Ksh 5 million loan from the Sacco for development purposes.

“I purchased an acre piece of land in Ganda village where I built my residential house. I plant cash crops like banana and coconut and money is flowing in smoothly,” she said as she smiles, further adding that she also purchased another plot in Kisumu Ndogo and built rental houses, which generate a steady monthly income.

She adds that she used part of the

money to educate her five children to tertiary level.

“Some of my children pursued certificate courses and advanced courses in Business Administration and Business Management from Univer sity of Nairobi and Cambridge University. One of my sons is currently pursuing a Masters Degree in Financial Management,” she noted with pride.

She also used the loan to educate her siblings’ children to different levels of education.

“They are now self-reliant people,” she adds.

Unda, who has since retired from the teaching profession, says life after retirement is good and she is enjoying every bit of it.

She urged Kilifi residents who have not joined Imarika Sacco to do so in large numbers and invest

heavily so as to get bigger loans to implement their personal development projects.

She noted that many people have implemented their development projects through loans from Saccos.

operative Society, which has 411 members, said the bicycles will be offered to group members who have been acting as extension officers.

“Our group has members who have been offering extension services; these bicycles will make their work easier,” Odundo said.

Jane Auma, a member of Ogongo Women Group, said the group was started by members who were HIV-positive and wanted to boost their nutrition and immunity through kitchen garden and fruit farming.

“We realized we could make money and got huge yields through farming,” she said. She said after seeing the need to tackle malnutrition and boost local economy, they started kitchen gardens and chicken rearing.

“We started with banana farming as the best means to boost food security but we now grow other crops as well,” Auma said.

CBK reinstates bank-to-mobile money transfer charges

By Obegi Malack obegimalack@gmail.com

The Central Bank of Kenya (CBK) has announced reinstatement of charges on bank accounts and mobile money transactions starting January 1, 2023.

The charges were waived on March 16, 2020 at the height of the Covid-19 pandemic as part of the emergency measures to encourage the use of mobile money.

In a notice dated December 6, 2022, CBK noted that the charges had been slashed by almost half.

“The revised maximum charges for transfers from bank accounts to mobile money wallets will be reduced by on average up to 61 percent, and mobile

money wallet to bank account by on average up to 47 percent,” part of the CBK statement read.

The regulator stated that tariffs for paybills used to collect and disburse funds by businesses, companies and institutions will be reduced on average up to 50 percent while charges levied by banks for banks to mobile money transactions will be reduced by on average 45 percent.

The reintroduction of the revised charges is aimed at building on the gains made, facilitating transition towards sustainable growth of mobile money ecosystem and ensuring affordability of payment services for Kenyans.

Banks used to charge between Ksh30 and Ksh197 before the waivers

were introduced. The waivers led to a significant increase of the payment ecosystem between March 2020 and October 2022 as the number of Kenyans actively using mobile money increased by over 6.2 million.

CBK noted that in the same period, the monthly volume and value of peerto-peer transactions surged from 162 million transactions worth Ksh234 billion to 440 million transactions worth Ksh399 billion, representing 171 percent and 71 percent increases respectively.

Banks and other payment service providers are now required to announce the revised transaction charges before January 1, 2023.

Agnes Kadzo Unda at her palatial home in Ganda Village, Malindi Sub-county.

Kadzo shows Sacco Review her coconut and banana garden at her residence in Ganda village, Malindi Sub-county.

Dr Patrick Njoroge, Governor of the Central Bank, with some stakeholders from the banking sector. Photo/ Malack Obegi

Peter Wachulo, World Bicycle Relief officer during the launch of the programme. Photo/ Norah Musega

RIFT VALLEY

By Peter Otuoro

Traders in Elburgon Trading Centre have asked their Member of County Assembly (MCA) Njuguna Mwaura to construct a modern market to enable them sell their produce throughout the season.

Speaking to Sacco Review at the centre, the traders said they do not have a discernible market where they can sell their merchandise.

Mercy Wamboi, a makeshift trader, said that currently they are selling their wares along a pathway across the railway station, putting their lives in danger as trains criss-cross frequently.

She said they do not have a shade for their goods against the wiles of nature especially during the rainy season, making most of them close their businesses when it starts to rain.

Wamboi said if the MCA constructed a modern market that adheres to health and safety regulations, they

Elburgon traders demand for modern market

will be able to sell all season round and keep safe from health hazards associated with dirty environments.

“We urged our MCA to come and assist us by constructing a modern market to help us continue with our

Opportune time for Saccos to re-examine new business prospects

By David Kipkorir

As 2022 draws to an end, Saccos have time to go through their business models and clean them up in readiness for 2023.

During this period, Saccos should reflect on their goals, gather as much business data as possible from year-end financial reports, and review employees, member feedbacks and other important data sources.

They should also update their business plans, remove old paperwork, correct mistakes and make a list of any new licenses or renewals they might be required to apply for.

Sacco employees are critical to the success of the organization. Take some time at the end of the year to provide employee evaluations so that every team member knows where they stand and what they expect in the coming year.

Sacco managers must make sure they have the right contracts and policies in place, like employment agreements and company employee handbooks.

Keeping good records puts everyone on the same page and it can also help them avoid the cost and hassle of employment disputes.

They must also assess whether or not the business is where they wanted it to be, its prospects for the future and whether the current business practices are adequate.

The end of the year is the perfect time to prepare for changes in the industry. Doing so can help start the new year strong.

Sacco leaders unsurprisingly focus their efforts on chasing the biggest pacts with the largest possible deals and highest returns. Whilst that

makes good business sense for most of the year, a change in mindset towards the end of the calendar year can reap greater rewards.

It goes without saying that quality content is a crucial part of the Sacco strategy all year round. But as the rush towards the end of the year grips the business community, its importance becomes even more acute.

As existing members and new prospects narrow their focus on achieving their endof-year goals, they'll be looking to experts they can trust.

The main reason of content marketing is to talk to your existing and potential members from a position of trust. After all, more than two-thirds of members, according to surveys, mistrust advertising.

It never hurts to reflect on what's gone well this year and learn from those experiences. But regardless of how well or badly the last eleven months have been, you need to look ahead.

This exercise should focus exclusively on what needs to happen to close the year on a high and begin next year with plenty of momentum, not as a forum for recriminations.

One of the best ways to end on a high is to re-examine your Sacco business pipeline and look at opportunities that already exist. It can help to sit down with your team and prioritise anything that is past the half-way point in organisation cycle and reassign resources, if necessary, to make them a priority.

Remember not to obsess over just your "high-probability' prospects and clients. Keep hope alive that 2023 will be brimming with opportunities!

businesses and prevent waterborne diseases related to poor hygiene,” said Wamboi.

They reminded Mwaura of his campaign pledge to give them a decent working environment, considering that the population was bulging every day.

The traders said as Kenyans who pay taxes, they deserve to have a proper market because they all depended on their businesses to feed their families.

Elburgon traders display their wares on the railway due to lack of a designated market in Elburgon town.

By Roy Hezron

A total of Ksh3.321 billion has been disbursed to 2,190 Micro, Small and Medium-sized Enterprises (MSMEs) under the state-backed Credit Guarantee Scheme (CGS) during the 2021/2022 Financial Year (FY).

The status is revealed in the Annual Performance Report for MSMEs’ credit guarantee scheme of June 30, 2022 and tabled in the National Assembly on November 9, 2022 by the Leader of Majority Party Hon. Kimani Ichungwa.

This is an increase as compared to the previous FY when the National Treasury stated that by December 2021, a total of 1,291 small businesses had taken loans amounting to Ksh2.1 billion.

The disbursement represented a credit guarantee value of Ksh830.3 million advanced to eligible MSMEs during the FY, with no credit guarantees being liquidated under the CGS since no claim had been lodged out of the total Ksh974.1 million of guarantees extended to the qualifying MSMEs since inception.

However, a total of Ksh744.5 million had not been paid by a number of MSMEs as at June 30, 2022; with a guarantee value of Ksh101.7 million being released as a result of full repayment of guaranteed facilities, while Ksh127.8 million is repaid from active guaranteed facilities.

The credit guarantee scheme encourages banks to disburse credit to borrowers they would otherwise turn away, confident that they will be compensated in case of defaults.

The fund was established in December 2020 to enhance access to quality and affordable credit for the growth and operations of MSMEs, which would otherwise find it difficult to access loans from commercial banks.

A select group of commercial banks issue the loans and can be compensated for up to a quarter of losses from default using the cash provided by Treasury, which now stands at Ksh3 billion.

This implies that the seven selected commercial banks which are taking part in the scheme - namely ABSA, Credit Bank, Diamond Trust Bank, KCB, NCBA, Stanbic Bank and the Cooperative Bank of Kenya - can pro-

Govt increases credit funding to MSMEs to Ksh3 billion

vide loans worth at least Ksh12 billion or four times the amount provided by the government in the scheme.

The loan limit is set at Ksh5 million per borrower, with a repayment period of up to 36 months.

The government always works closely with the banks to deepen the impact of the scheme through continuous performance monitoring and capacity building where necessary.

In the FY 2020/21, the government allocated Ksh3 billion towards the CGS, allowing the participating commercial banks to lend at least Ksh12 billion to qualifying MSMEs.

As at December 31, 2021, a total of 1,291 credit facilities amounting to Ksh2.11 billion were advanced to MSMEs; with beneficiary MSMEs being distributed across 45 counties, 11 different economic sectors and employing 8, 975 Kenyans.

In the same year, 52 per cent of the CGS beneficiaries were small enterprises, with medium enterprises accounting for 25 per cent and marginalized groups, including women, youth and persons living with disabilities, accounting for 23 per cent.

According to the report, as at June 30, 2022, CGS had 2,215 active facilities with a total outstanding principal amount of Ksh2.9 billion.

During the reporting period, 20.1 per cent of the total number of loans was disbursed to businesses owned by women, youths and persons with disabilities (PwDs). Women beneficiaries were 283, youth 150 while PwDs were 8.

“All the three sizes of enterprises (micro, small and medium) have benefited from CGS facilities as reported by the banks through CBK (The Central Bank of Kenya). Of the 2,190 facilities

issued the CGS in FY 2021/22, small enterprises received 1,361, medium enterprises received 268 while micro enterprises received 561,” read the report in part.

During a recent Cooperative Alliance of Kenya (CAK) consultative meeting held in Naivasha from November 15 to 18, 2022, Cabinet Secretary (CS) in the Ministry of Cooperatives and MSME Development Simon Chelugui opined that the new government had prioritized the role of the sector by essentially creating the ministry.

“Indeed the two sectors are like two sides of a coin and enjoy a symbiotic relationship. This is because of the fact that while cooperatives have over the years supported small businesses, they are themselves small business,” said Chelugui.

In a move to boost the small business sector, President William Ruto

launched the Hustler Fund on November 30, 2022 in an effort to provide State-backed concessional loans to small businesses that have struggled to access financing from mainstream banks.

There are four categories of loans under the facility, which include Personal Finance, Micro, Small and Medium Enterprises (MSMEs), and Start-up loans.

The fund targets Kenyans borrowing between Ksh500 and Ksh50,000 as individuals, which is currently active; while MSMEs seeking capital between Ksh100,000 and Ksh5 million will benefit from the fund beginning February 2023.

Chelugui noted that cooperatives, through Saccos, are expected to be major players through which Kenyans will access the Hustler Fund.

MKU founder asks youth to use Hustler Fund wisely

By James Wakahiu

Mount Kenya University (MKU) founder and chairman Prof Simon Gicharu has urged graduates and youths in the country to take advantage of the Hustler Fund to establish income generating ventures that can earn them a living.

Gicharu said that the programme, if well utilized, will free many youths from the shackles of unemployment.

The chairman was addressing graduands during the university’s 22nd graduation ceremony held at MKU Pavilion grounds in Landless Estate, Thika.

Over 4,500 graduates were conferred PhDs, Masters and Bachelor’s Degrees, as well as Diplomas and certificates in diverse areas of study.

“This is a noble government initiative that if put into proper use will help our graduates and the youth of this country get seed capital to establish their own enterprises. I’m urging our graduates to take advantage of the initiative and other government funds to create their own jobs instead of going back to their homes to wait for white collar jobs,” Gicharu said.

The chairman noted that all MKU students have been trained on entrepreneurship and have been equipped

with requisite skills and knowledge, thereby giving them a competitive edge in the business world.

“We are urging those we are releasing into the job market to be entrepreneurial and ensure that they are abreast with the technological advancements so that they can succeed in their ventures and become job creators instead of job seekers,” he said.

At the same time, Gicharu divulged that MKU has partnered with Koblenz University of Germany to train Kenyan nurses with an aim of linking them with the job market in Germany.

He added that medical students at MKU will be trained on German lan-

guage to enable them work and train further in Germany through the programme.

“This is an innovative new strategy of raising healthcare access at a global level, and a vital internalization endeavour at MKU. The programme offers opportunities to young Kenyans pursuing healthcare courses that will lead to paid apprenticeships and ultimately get job opportunities in Germany,” he said.

He said the university will work closely with the government to ensure success of the initiative.

Cooperatives CS Simon Chelugui (middle) poses for a photo with co-op leading lights at Sawela Lodge in Naivasha.

The credit guarantee scheme encourages banks to disburse credit to borrowers they would otherwise turn away, confident that they will be compensated in case of defaults.

Prof Simon Gicharu, MKU founder and chairman.

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