SACCO

SACCO

From a political ‘Gun for Hire’ to a matatu sacco director

REVIEW

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Website: www.saccoreview.co.ke

THE LEADING NEWSPAPER FOR THE CO-OPERATIVE MOVEMENT IN KENYA

JULY, 2021

KSHS 50

ISSUE 67

Milestones in co-operatives for the last one year »» Page

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Govt’s good news for Co-op sector

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STORY PAGE 4 HIGHLIGHTS

Initiated reforms include the National Co-operative Policy formulated through a participatory process with co-operative movement and other stakeholders, and has been approved by the Cabinet and forwarded to the National Assembly as a Sessional paper.

To safeguard members’ deposits, Non-Deposit Taking Business Regulations 2020 has brought under SASRA regulation the Non-Deposit Taking Saccos with over Sh100 million deposits, Diaspora Co-operatives and Saccos operating on virtual platforms.

Legal framework created for establishment of Central Liquidity Fund (CLF) to strengthen the financial base of Saccos.

Saccos encouraged to leverage on ICT without losing sight to the inherent threats of fraud, cybercrimes.

Why varsities delay in remitting Sacco dues »» Back Page

Sheria Sacco Chairman Justice Patrick Kiage hands a gift to the Deputy Chief Justice Philomena Mwilu, who was the Chief Guest during a previous ADM. In our last edition, we carried the photo above along with our headline titled ‘EACC alarmed by graft in Saccos. This gave the impression that Sheria Sacco and the two senior judicial officers are corrupt. We wish to clarify that the headline was in no way related to the photo. We wish therefore to apologise for any confusion this may have caused. - Editor

Saccos eye investment opportunities in counties »» Page 3

300 Non-DT Saccos to get licences soon

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Sacco assets hit Sh677 billion in 2020

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2 | SACCO REVIEW

JULY, 2021

Coffee reforms

Co-operative policy

Sacco sub-sector

Governance

Dairy sector

The state department of co-operatives (SDC) had piloted digitization of the 25 factories

The department has also been working on the National co-operative policy which was validated by the stakeholders and is currently before parliament

SDC has come up with a policy – Central Liquidity and Shared Services Facility

Advising different Saccos where there is a problem on the right policies to put in place

Modernization of the New KCC which deals mainly with dairy cooperatives.

Milestones in co-operatives for the last one year

By Malachi Motano

The co-operative sector in Kenya celebrates several milestones recorded in the last one year despite many factors that challenged the economic environment including drought, locust invasion, followed by Covid -19 pandemic. Co-operative Commissioner Geoffrey Njang’ombe gave the exclusive highlights to ‘Sacco Review’ as the country joins the rest of the world in marking the International Day of Co-operatives locally referred to as Ushirika Day. Coffee reforms The State Department of Cooperatives (SDC) had by this time last year, piloted digitization of the 25 factories in the major coffee growing zones.

We provided some Saccos with weighing scales and computer applications that captured member’s information that can now be shared by the SDC and Counties as well as other sectoral stakeholder. We (SDC) have now gone ahead to bring on board 200 factories and will be giving them digital weighing scales, and the computer applications and, of course, we shall supply them with equipment.

SDC is also modernising the previous 25 factories by giving them modern metallic coffee drying tables that are more durable than the wooden ones which are normally damaged by termites. It is also giving solar security system and also CCTV to the 25 of them which have enjoyed the digital system.

We are currently doing registration of farmers where all farmers’ bio data is captured for the 25 factories. We are also carrying out au-

dits. The other time we did 52 performance audits of 52 co-operative societies and 16 unions but this year we have done about 300 performance audits of co-operatives.

The department has done feasibility study, for PAVI-PAVI Cooperative in Kwale and if we get the funds, we intend to establish a ginnery which will cost about Kshs 300m. Currently we don’t have those funds but we have completed the feasibility study and the documentation.

Once we are through with the draft, we shall also engage them

Co-operative policy The department has also been Geoffrey Njang’ombe , working on the National co-opera- Cooperative Commissioner tive policy which was validated by the stakeholders and is currently to review co-operative registrabefore Parliament. It had been ap- tion both the co-operative act and proved by the Cabinet and awaits the Sacco act. This work should be discussion at the National Assem- completed anytime it is just because bly. of funds but we anticipated comWe have a team, a taskforce that pleting it by the end of this month. was appointed by the Cabinet SecreSDC has held stakeholders tary (PS) Peter Munya to implement meeting –engagement, we had the national cooperative policy. The one in Amboseli and another one team is in place and is working and in Maasai Mara to expose all the with that we expect to come up with co-operatives on what is contained the bill. One of the outputs is a bill in the national co-operative policy.

Sacco sub-sector SDC has come up with a policy –Central Liquidity and Shared Services Facility which will enable Saccos to eventually have a common ICT platform where they can share and it will be more economical.

Saccos are coming together, already about 52 are on board, this will eventually allow them to also participate in the central payment system. Once Saccos are able to pool their resources together, they will be able to borrow or inter-lend to each other just like Central Bank This we have already done, we have the policy and the guidelines in place and even for the bylaws. The facility will be a Sacco. It will be a secondary Sacco formed by primary Saccos. We are starting with the DTS- deposit taking Saccos.

The government had formulated regulations for non-deposit taking Saccos and now we are implementing them. The regulations are now in force after we came up with

the guidelines of implementation in January and the Saccos have up to June 30 this year to comply.

These are Saccos with 100 million deposits, and the Saccos that recruit their members exclusively on their virtual platform.

Governance We have been advising different Saccos where there is a problem on the right policies to put in place especially when Saccos have problems with management, misappropriation of fund Dairy sector The department has continued with the modernization of the New KCC which deals mainly with dairy cooperatives. Today, milk prices have picked from Kshs 30 -33 to now Ksh 40.

The sector continues to struggle to see co-operators live within the spirit of co-operatives where they pull their resources together and grow without leaving anyone behind

Fund to protect Sacco depositors mooted, says PS

By Staff Reporter The government is in the process of implementing the Savings and Credit Co-operative Societies (Saccos) deposit guarantee fund to insulate depositors from unforeseen eventualities.

“We are finalising the National Cooperative Policy that will allow the creation of the Sacco Deposit Guarantee Fund (SDGF), a scheme which will provide protection to Sacco deposits. It is meant to enable a member have a soft landing or a fall back in case a Sacco collapses,” said Principal Secretary (PS) for Ali Noor Ismail, Principal Secretary (PS) Co-operatives Ali Noor Ismail.

According to the PS, the for Co-operatives. planned guarantee fund is expected to mirror that of the Kenya Deposit Sh100, 000 a member. Every regisInsurance Corporation (KDIC) that tered Sacco is expected to contriballows bank depositors to retrieve ute to the fund.

The PS was speaking at the their cash in case of a bank failure.

SDGF is expected to provide launch of Stima Sacco’s Shariahprotection to Sacco deposits up to compliant loans and savings prod-

ucts where he emphasised that the fund would insulate Sacco depositors from unforeseen eventualities in case of Sacco collapse.

According to the PS, Saccos play a key role in financial inclusion and at the moment, the over 15 million member movement is giving commercial banks a run for their money, hence needs an urgent safety net.

“Plans are underway and we hope to launch the insurance scheme very soon. This financial safety net will be in the National Co-operative Policy which has since been submitted to the Ministry,” he said.

The country has been toying with the idea of setting up a guarantee scheme for Saccos from 2008, with Kenya’s Sacco Societies Act, assented to in 2008, providing for setting up a deposit insurance fund for credit unions.

The Sacco Societies Regulatory Authority (Sasra) identified a

consultant by the name Carlos Alba Prado in 2013 to help in setting up the fund. However, this was never made public.

The idea was revisited in 2017, with the regulator floating a tender seeking for a consultant to help in setting up the guarantee scheme.

The Regulator in February released guidelines on the selection and nomination of trustees to the Deposit Guarantee Fund Board of Trustees.

The trustee must be an active member of a Sacco Society for at least two years before the nomination date is eligible for nomination.

He or she must also have a degree in relevant fields from a recognised University in Kenya and satisfy the requirements of Chapter six of the Constitution.

The nominated person should have knowledge and experience in matters relating to co-operative management, banking, finance, in-

surance, law, accountancy, or economics for at least ten years. The nominated person should have financial integrity.

During the selection and nomination process, the Sacco has to consider gender balance, and equitable representation.

At the beginning of the year, the regulator revealed that Saccos’ asset base jumped to Sh622 billion in 2020 compared to Sh530 billion in 2019 despite the Covid-19 pandemic, amount to rivalling total assets of the third top bank in the country.

At least some of the leading Saccos like Stima Sacco and Mwalimu National have more than 100,000 depositors, way above some of the third-tier commercial banks.

In 2020, KDIC raised the amount bank depositors are entitled to in case of a bank failure from Sh100, 000 to Sh500, 000, covering almost 90 per cent of bank depositors in the country.

JULY, 2021

SACCO REVIEW | 3

Untapped investment opportunities boon for counties' Saccos With many county government staff yet to come up with their own Saccos, many Saccos—especially those operating across the devolved units—are now tapping into this new pool of workers for members.

By Sammy Chivanga Savings and Credit Co-operative Societies (Saccos) are increasingly winning county government staff into the co-operative movement but are dragging their feet on investing in multiple sectors at grassroots level in order to deepen their relevance in the economy.

The lack of properly structured internal policies for targeting investments is standing in the way of the pace of their integration with counties, leaving large financial players such as banks to steal the show.

Yet, county governments are increasingly seeking financial partners on key projects such as housing and

Luncham Mugambi, Trans Nation Sacco CEO. File/Photo water as Saccos prioritise winning new members.

With many county government staff yet to come up with their own Saccos, many Saccos—especially those operating across the devolved units—are now tapping into this new pool of workers for members.

This is a diversification from the past where teachers and farmers have been the core members for many Saccos, leading to the formation of Saccos such as Kenya Highlands Sacco, Mudete Factory Tea Growers Sacco, Kitui Teachers Sacco and Trans Nation Sacco.

Saccos are now turning to this new pool of salary earners for new members, providing the first win into understanding the needs of county governments.

One such Sacco that is betting on counties for growth is the County Sacco Society, which was formerly trading as Rukuriri Tea Growers Sacco.

Rukuriri Tea Growers Sacco started in February 1991 to serve tea farmers whose proceeds were being marketed by Rukuriri Tea factory and other factories such as Mungania and Kathangariri tea Factory.

However, the ushering in of the devolved government saw the Mount Kenya-based Sacco rebrand

to County Sacco Society in 2011.

“The Society rebranded to County Sacco which literally means an ambitious Sacco with a strategic focus in all counties in Kenya,” said the Sacco leadership.

For some Saccos, the coming up of counties has meant mapping their customers in terms of counties and, therefore, encouraging them to reach as many places as possible.

For instance, Trans Nation Sacco last year opened what it called the first satellite Sacco branch in Moyale, coming a few months after launching in Marsabit.

"The Marsabit branch was doing very well and this motivated us to put up a satellite branch in

Moses Chebor, retired CEO. File/Photo Moyale. County commissioner launched us in Moyale and joined Sacco alongside part of his staff.

This shows the interest in counties,” said Mr Luncham Mugambi, CEO Trans Nation Sacco.

He said Moyale and Marsabit will now be controlled by the Isiolo hub which acts as the main centre for tapping into farflung areas in counties where people want to join the co-operatives movement.

Lengo Savings and Co-operative Society has also partnered with Kilifi County government to sign up the county’s staff as its members.

The Saccos board has been wooing the Kilifi County staff with affordable products that they can manage during retirement.

The board was proposing to register a housing Sacco that will facilitate the building of some offices which the Sacco would rent out.

Despite the race to sign up county staff and make them members of co-operative movement, Saccos have not come out strongly to invest in relevant projects for societies in the devolved units.

Saccos are now being urged to join hands with counties in acquiring land and setting up houses for use by count staff as well as the emerging town centres by the workforce serv-

ing counties.

However, Moses Chebor, who served Boresha Sacco (formerly Baringo Teachers co-operative society) for 35 years and retired as CEO, says members of the co-operative movement are dragging their feet in tapping into county opportunities.

“Suspicion and low expertise is making it difficult for Saccos to tap into the many obvious opportunities emerging across the counties. They are falling over each other in recruiting members,” said Mr Chebor.

For instance, Unison Sacco, with the help of the County Government of Laikipia, late last year rolled out affordable housing projects in Nanyuki.

Unison Sacco is a Laikipia based deposit taking Sacco established in 1977 as Laikipia Teachers Sacco but changed the name in 2014 and has been strong on recruiting county staff into its membership.

The Sacco has partitioned its 542-acre land in Nanyuki into plots of 50 by 100 and 100 by 100 to customers for construction of a wellplanned residential estate, named Taji Gardens.

The estate will be built on land that has utilities such as water, power and a sewerage system, speeding up the project.

Previously Sacco had subdivided the land without involving the county government in making approvals. The lack of a clear sewer line and water system brought their efforts to a halt, and stopped the implementation.

This brought to the fore the growing need for Saccos to partner with county governments in realizing success in project implementation.

The World Bank in 2017 put Kenya’s deficit for houses at two million and asked the government to explore the role of Saccos in bridging the gap in the housing finance market.

But counties have not come out strongly in developing houses and selling or renting to county governments despite the glaring shortage of housing.

Despite Saccos joining Kenya Mortgage Refinancing Company (KMRC) in order to get funding for housing, they are not directly putting up houses to either sell or rent.

Bingwa, Harambee, Imarika, Kenya Police, Imarisha, Mwalimu National, Stima, Tower, Ukulima, Safaricom and Unaitas Saccos are all part of KMRC primary mortgage lender.

However, these Saccos are preoccupied with getting cheap KMRC loans and use it for on-lending to members to build houses.

Kenya Teachers Sacco Association gets new directors

By Kamundia Muriithi Kenya Teachers Sacco Association (KETSA) has a new board of directors elected into office during its Annual General Meeting (AGM) held in Embu County recently.

The newly elected directors led by the new Chairman, Mr Robert Njue Kathanju promised to steer KETSA to greater heights so that the organisation would continue advocating the growth of teachers’ saccos and the improvement of the welfare of teachers in the country.

Kathanju is the current Chairman of Winas Sacco, and he takes over from Mr John Muigai Njuguna. Njuguna who is the current

Mr Njuguna suggested that the government should expand its taxation base by netting businesses that avoid and evade paying taxes.

He pointed out that a salary increment for teachers strengthens the economy in that the tutors invest in various parts of the country, promoting the flow of money and growth of those regions.

Mr Kathanju, on his part, called for the disbursement of teachers' salaries early so that the Saccos are able to make their deductions in time for their operations to continue unaffected.

He cited the case of county government workers who due to delays of their salaries are unable to repay

The immediate former Ketsa chairman John Muigai Njuguna (left) and the chairman Robert Njue Kathanju (right) and other officials during the AGM at Mountain Breeze Hotel in Embu County. Photo/Kamundia Muriithi

The newly elected directors led by the new Chairman, Mr Robert Njue Kathanju has promised to steer KETSA to greater heights so that it would continue advocating the growth of teachers’ saccos and the improvement of the welfare of teachers in the country. chairman of Cosmopolitan Sacco relinquished the position after he was elected a director of KUSCCO. He has been the KETSA chairman for the last three years, during which time Kathanju was the secretary.

The other new officials are: Vice chairman Kennedy Keya (IG Sacco), Secretary Peter Ngugi (Tawa Sacco), and Treasurer David Rono (Noble Sacco).

During the AGM, KETSA officials and members raised concern that the review of the Value Added Tax (VAT) from 14 to 16 per cent as contained in the 2021/2022 financial year budget would adversely affect their performance.

They warned that the financial status of many teachers as well as the rest of Kenyans would be affected financially as the revised VAT will push the cost of goods and services, and many Kenyans would be unable to repay their loans They noted that the rising taxation is worsened by the high cost of fuel, Covid-19 disruptions, and the two-year salary increments freeze for public workers as announced recently by the Salaries and Remuneration Commission.

Mr Njuguna, the outgoing chairman, argued that since the government has stopped salary increments, it should not raise taxes, and should ensure the cost of petroleum products remain affordable to Kenyans.

“In the current economic situation, teachers and other ordinary Kenyans will continue to suffer and many will default on their loans repayments,” he said.

their loans and pay for their shares.

“The last time we got remittances from county government employees was in January. We are now unable even to advance loans to them. If they are paid early, this can have a multiplier effect in the economy,” he stated.

KETSA was registered in 2012 to provide a collaborative forum for sharing and learning from one another, as well as addressing operating challenges of the primary member Saccos.

The association also provides common investment opportunities geared towards improving their general welfare.

According to Mr Njuguna, during his time at the helm, KETSA played a significant role in uplifting the situation of its members.

To cushion members from financial turmoil due to the Covid-19 pandemic, Njuguna revealed that the association advocated restricting of loans through longer repayment periods to offer some sort of relief.

The Saccos, smarting from the pandemic effects, also adjusted their dividends payouts.

KETSA whose income is mainly from the training of teachers suffered a blow due to Covid-19 when the government banned such trainings. The profit in 2019 was Sh33 million, but fell to Sh18 million in 2020.

“This year we hope the situation will improve through resumption of training and the recruitment of more teachers. We project our profit to rise to above Sh30 million,” said Mr Njuguna.

JULY, 2021

4 | SACCO REVIEW

State to improve co-operative sector

By Malachi Motano The government has continued to formulate appropriate policy, legal and institutional frameworks to provide an enabling environment in order for co-operatives to remain competitive and responsive to emerging business trends According to the Cabinet Secretary (CS) for Agriculture, Livestock, Fisheries and Co-operatives Peter Munya, the ministry recently initiated a number of reforms in the sector which include the National Co-operative Policy which was formulated through a participatory process with co-operative movement and other stakeholders and has been approved by the Cabinet and forwarded to the National Assembly as a Sessional paper.

Peter Munya, Agriculture Cabinet Secretary.

The CS also appointed a Taskforce to operationalize the National Co-operative Policy and reports that the team is in the process of formulating a draft Co-operative bill to review the current Co-operative Societies Act Cap 490 and Sacco Societies Act (2008).

This is aimed at aligning them to the Constitution of Kenya 2010 and the prevailing business environment. The taskforce is also expected to come up with a framework to implement the National Co-operative Policy.

In order to safeguard members’ deposits, the ministry has also formulated Non-Deposit Taking Business Regulations 2020 which will bring them under Sacco Societies Regulatory Authority (SASRA) regulation’s Non-Deposit Taking Saccos with over Sh100 million deposits, Diaspora Co-operatives and Saccos operating on virtual platforms.

The CS is happy that already over 52 Saccos are on board and believes that when the regulations will eventually take effect from 30th June, 2021 all the Saccos will be in.

He urged all affected Saccos to familiarize themselves with the regulations and comply accordingly.

To enhance good governance and ethics the CS says they are

working very closely with other Government agencies such as Ethics and Anti-Corruption Commission (EACC) to weed out any unethical practices and conduct in Co-operative Societies.

In 2019, a Memorandum of Understanding was signed between the Ethics and Anti-Corruption Corruption Commission and the sector to combat and prevent corruption, economic crime and unethical practices, promoting ethics and integrity through the enforcement of the Declaration of Income, Assets and Liabilities and Code of Conduct for State and Public Officers; and eventually create a mutually beneficial relationship that will assist in the prevention of corruption, economic crime and unethical conduct.

“Last but not least, we have

To enhance good governance and ethics the CS says they are working very closely with other Government agencies such as Ethics and Anti-Corruption Commission (EACC) to weed out any unethical practices and conduct in Cooperative Societies. created a legal framework for the establishment of a Central Liquidity Fund (CLF) and a Shared-Services Technology Platform that will ease short term liquidity challenges within Sacco’s by bringing them into the National Payment System and thus facilitates inter-Sacco borrowing,” He said.

In 2019 President Uhuru Kenyatta issued a policy directive towards the establishment of a Central Liquidity Fund (CLF) for Saccos, with the ultimate objective of integrating deposit taking (DT) Saccos into the National Payment System, leaving commercial banks staring at close to Sh2.33 billion ($21.37 million) loss in interest income on loans granted to the cooperative sector.

This will go hand in hand with the operationalization of the Deposit Guarantee Fund (DGF), an insurance scheme to cushions member in the unfortunate event that a Sacco collapses. In case a Sacco collapses, members can have a soft landing or a fall back where they can be refunded. Currently they are refunded up to Sh100, 000. But that will be reviewed in future He said Saccos operate in a highly competitive financial landscape dominated by commercial banks, Micro finance institutions and other financial players and to

enable Saccos remain competitive and sustain their market share in the sector, there is need for Saccos to develop relevant financial products and services that are responsive to the members’ needs.

The CS also encouraged Saccos to leverage on Information and communication Technology (ICT) in order to enhance efficiency in service delivery to your members without losing sight to the inherent threats of fraud and cybercrimes.

“In addition, I encourage all cooperative leaders and management across the country to register with the Kenya Society for Professional Co-operators (KSPC) to improve governance, professionalism and ethical practices in their operations,” CS. Munya said his ministry will continue to take the necessary measures as provided by the law including among other things strengthening the current legal provisions in Co-operative Societies Act and Sacco Societies Act in the upcoming bill to recover all the outstanding Sacco dues.

These he said will strengthen the financial base of Saccos to mitigate against the non- remittance of statutory deductions by employer based Saccos which are mainly government entities.

“I am aware that non-remittance of Sacco dues by employers still remains a major threat to the sustainable growth and development of Saccos in the country. This challenge has led to loss of business opportunities, huge loan backlogs and low members’ patronage.

We are taking relevant measures to address the problem,” Munya said.

He said the government recognizes the critical role of the cooperative sector in realization of equitable socio-economic development of the society.

The sector has immensely contributed towards resource mobilization for investment, provision of affordable housing and aggregation of farm produce for improved household incomes in key agricultural sub-sectors such as coffee, dairy and cotton to mention but a few.

“I note with appreciation that the co-operative movement in Kenya is the most vibrant and fastest growing in Africa with cumulative savings of over Sh800 billion and asset base of approximately one trillion and loan portfolio of more than Sh700 billion,” Munya explained.

Co-operatives thus contribute to about 30 per cent of the National savings and 45 per cent of our Gross Domestic Product. The Co-operative Sector also plays an important role in creating and maintaining employment for a good number of the Kenyans.

The CS's remarks were delivered at the Hazina Sacco 50th anniversary on his behalf by Cooperative Principle Secretary (PS) Ali Noor.

Sacco assets rose to Sh677 bn in 2020 According to the Sacco Societies Regulatory Authority (Sasra) Chairman John Munuve, the sector’s assets in the review period stood at Sh677 billion compared to Sh556 billion in corresponding period of 2019.

By Our Repoter The Savings and credit co-operative societies (Sacco) sub-sector defied the economic challenges recorded in the troubled 2020 financial year to record a growth of 14 per cent in assets during quarter three compared to the same period previously.

According to the Sacco Societies Regulatory Authority (Sasra) Chairman John Munuve, the sector’s assets in the review period stood at Sh677 billion compared to Sh556 billion in corresponding period of 2019.

The gross loans stood at Sh474 billion at the end of September 2020, compared to Sh419 billion during a similar period in 2019, a growth of 13.2 per cent.

Speaking to the CEOs national forum under the auspices of KUSCCO held in Isiolo town recently, the chairman said he is grateful that despite the many challenges that were realised in the previous financial year ranging from drought, invasion of locusts with Covid -19 pandemic at the climax most of the sector still managed to grow.

“Despite the shocks experienced in individual and business incomes as a result of job losses and disruptions of value chains brought about by the advent of the Covid-19 pandemic among other challenges, we are glad to report that the Sacco sub-sector performed relatively well, with an upturn in all the key performance indicators, based on data collected,” stated Mr Munuve.

Still on the growth track, total deposits held by the deposit taking (DT) Saccos stood at Sh431 billion in the quarter which is a 13 per cent improvement on the Sh380 billion recorded at the same time the previous year.

The chairman noted that even the unaudited results indicate that the non-performing loans portfolio for deposit taking saccos closed the year at Sh30.44 billion, out of a total loan book of Sh469.02 billion, representing 6.49 per cent of the total collection, which is against Sh25.79 billion, out of gross loans of Sh419.55 billion as at December, 2019.

The sub sector is one of the sectors that have been worst hit by disruptions of Covid-19 pandemic, modelled along collecting deposits from members and lending to individual members.

Most Saccos, especially those drawing members from such sectors as Hotel and Travel, Entertainment, Horticulture, and Transport, are staring at low deposits from members as layoffs, pay cuts and closures affect incomes of individual members.

“We have been experiencing low deposits from members as well as a fall in demand for loans

from members. We have been experiencing problems after suspending our sales representatives from moving from place to place collecting cash from members,” said Dorothy Makena, Marketing Manager, Southern Star Sacco Limited.

Munuve said SASRA is working towards the establishment of Deposit Guarantee Fund (DGF).

The relevant legal amendments have been drafted and are currently being processed by the state department of co-operatives for onward submission to the National Treasury, and ultimately incorporation into the 2021 Budget Policy Statement and the accompanying

John Munuve, Sasra Chairman.

Munuve said SASRA is working towards the establishment of Deposit Guarantee Fund (DGF).

Finance Bill.

“Already, guidelines have been disseminated to Saccos to help them in nominating trustees for appointment by the CS to the fund’s board of trustees. This board, which will comprise four trustees from the licensed Saccos, will be responsible for the management of the Fund. Once the nominations are made, the board of trustees will be appointed by the CS, operationalising the DGF,” he said.

“We are also in the process of implementation of deposit guarantee fund, that in case the Sacco collapses, members can have a soft landing; members can have a fall back where they can be refunded.

Currently they are refunded up to Sh100, 000. But can be reviewed in future,” revealed Commissioner of Co-operatives Geoffrey Njang’ombe.

He says the planned guarantee fund is expected to mirror that of the Kenya Deposit Insurance Corporation (KDIC) that allows bank depositors to retrieve their cash in case of a bank failure.

JULY, 2021

SACCO REVIEW | 5

99TH INTERNATIONAL CO-OPERATIVE DAY

MENTOR SACCO

FEBRUARY, 2021

EDUCATION NEWS

EDUCATION NEWS

X

MENTOR SACCCO MENTOR SACCCO THEME: REBUILD BETTER TOGETHER

The Board of Directors, Management and Staff of Mentor Sacco are pleased to be associated with the 99th Ushirika Day celebrations on July 3, 2021 whose theme is; Rebuild Better Together, as we mark milestones in theX Cooperatives movement.

EDUCATION NEWS

BEST WISHESBEST TO 2021 WISHES TO 2021 Joyce Ndegwa, KCPE/KCSE CANDIDATES Anthony Kamau, KCPE/KCSE CANDIDATES X

Chairman.

Happy Ushirika Day

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Hapa ni Kwet Hapa ni Kwetu Own Phone/ other Phone Hapa ni Kwet He transfer ad O ffice, M Allows a member to pay any paybill and Dial *276*1# Select (1) for Guarantors Head Of fi ce, Mu ran g aEnter To wAmount n – Uh u r u Hi g h w ay Street.

TO CHEC PAY OTHER BALANCE TO CHEC BALANCE FOR FUNDS MPESANUMBER TRANSFER

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M *276 MENTOR *276# MENTOR

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PO B ox 78 9-1 02 00, Tel: 02 0-358 01 6 7; 0739-7452 2 0; 07 0 4 - 0 6682 7 i n fo @men to r s acco.co. ke Webs ite: w w w.m e n to r s a cco.co. ke

- With satellite offices in Kangema, Ithanga, Kandara, Kangari , and Kiriaini-Muranga County. to another bank account Enter PIN Enter PIN -Board Chairman, Mr. TO CHECK TOSelect PAY (2) FOR PO Box 78 9-1 02 00,BALANCE for GOODS Guarantees& SERVICES l: 0 20 -3 Dial *276*1# Hapa niTe Kwetu Enter PIN Antony Kamau.

Head Office, Muranga Town –and Uhuru Highway Street.

Tel: 020-3580167 02 0-358 01 6 7; 0739-7452 2 0; 0704-06 6 8e2ntor 7 s ac Select (8) Pay Allows one to pay for goodsTel: services info@ m Allows oneBills to check account -CEO Mrs Joyce Ndegwa.

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Dial *276*1# Select (4) pay for goods & Services Enter Till Number

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*276*1# EnterDial account number (2) - My Balances EnterSelect amount O ffice, Select Muranga Tow n –Hapa Uh ur u High w a ni Kwetu Enter PIN (1) - for Savings Balances

6 | SACCO REVIEW

JULY, 2021

99TH INTERNATIONAL CO-OPERATIVE DAY

THEME: REBUILD BETTER TOGETHER

The Board of Directors, Management and Staff of Stima Sacco are pleased to be associated with the 99th Ushirika Day celebrations on July 3, 2021 whose theme is; Rebuild Better Together, as we mark milestones in the Co-operatives movement.

Happy Ushirika Day

Stima DT Sacco unveils Shariah compliant products

Rebecca Miano, Chairperson.

By Malachi Motano

Stima deposit taking (DT) savings and credit cooperative society (Sacco) has introduced a full range of Shariah-compliant investments, accounts and financing products available under the Yasar banner.

The products include Yasar Mudarabah investment account, an investment that will be patronised by members, assisting them in accessing affordable finance.

The product will also give members a hassle free, flexible repayment competitive rates and provide them with an opportunity to save and bor-

row wisely in a just, fair and transparent manner On the financing facilities, Stima Sacco introduced Yasar Murabaha personal finance where the Sacco shall offer convenient access to personal financing, enable the member to access the facility to purchase tangible items. The Murabaha concept of Islamic financing applies.

Still on financing facility, the Sacco introduced Yasar Diminishing Musharakah Finance targeting members who want to purchase new or used motor vehicles, homes or commercial premises and for asset financing. It is shariah compliant based on Shirkat Ul Milk.

The Sacco also introduced Yasar Twarruq financing which targets members who want to access personal finance that might not be necessarily asset backed. It is shariah compliant and based on Twarruq.

Last but not least in the range of Shariah–compliant products at the Sacco

is Salaam financing targeting members who want to get personal finance that might also be not necessarily asset backed.

It is similar to Twarruq and uses the same commodity platform. The only difference is that with Salaam, the disbursement occurs immediately after approval of the facility.

The Sacco Chairperson Rebecca Miano said the

Launch of Shariah compliant product line held at Sankara Hotel.

Dr. Gamaliel Hassan, Stima Sacco CEO.

move is yet another milestone of the society, representing a big step forward in the quest to improve the wellbeing of the Sacco members, a journey that began in 2015.

The Sacco Chief Executive Officer (CEO), Dr. Gamaliel Hassan explains that Islamic finance is founded on Shariah principles expressing an utmost intent of meeting the financial needs of participants, with integrity and in a manner that is just, fair, trustworthy and honest while ensuring more equitable distribution.

“With addition of this unique business stream, things can only get better for the society. I am proud that the Sacco has made this giant step of including Islamic financé in our array of products and services,” he says.

Cabinet Secretary (CS) Peter Munya in his message on the

Bernard Ngugi, Vice-Chairman.

It is a good move by the Sacco which already has over 140,000 members and among the giant Saccos in the country and which has decided to reach more members by introducing a new brand of products and services which Muslims will immediately patronise.

- PS.

Co-operative PS Ali Noor officiates the launch of Shariah compliant products by Stima DT Sacco.

JULY, 2021

SACCO REVIEW | 7

Co-operative PS Ali Noor Ismail poses for a photo with Stima DT Sacco board members during the launch of the Shariah compliant products.

launch said, developing Shariah compliant products is a clear route to expanding financial inclusion.

“Kenyans who previously could not have otherwise considered joining Stima Sacco on account of faith and even non-Muslims who prefer Shariah compliant financial products can now be accommodated,” stated Munya.

According to the CS, it will lead to the country becoming a hub for Islamic finance in Sub-Saharan Africa, a dream worth pursuing.

Co-operative Principal Secretary (PS) Ali Noor Ismail commended the move by Stima DT Sacco saying the country is making great strides in entrenching Islamic finance as alternative to conventional finance.

JULY, 2021 “It is a good move by the Sacco which already has over 140,000 members and among the giant Saccos in the country and which has decided to reach more members by introducing a new brand of

products and services which Muslims will immediately patronise,” noted the PS. He said by introducing Shariah compliant products and services, the Sacco has not only expanded its product range, but also provided wider choices to its members.

To the Commissioner for Cooperatives Geoffrey Njang’ombe, Stima DT Sacco is making a good progress. He acknowledges that the co-operative movement continues to do Kenya proud and Stima Sacco society Limited, a deposit taking Sacco is among the cooperative institutions that are driving the success.

“This is a move in the right direction and also a way to expand the country’s financial space. The launch of Shariah-compliant products is a sign of continued progress by the Sacco,” he added.

SACCO REVIEW | X

Co-operative PS, Ali Noor Ismail and the Commissioner of Co-operatives, Geoffrey Njang’ombe during the launch of Stima Sacco Shariah compliant products.

Stima Sacco is now Shariah Compliant !

47 years down the line, we still hold on to our ethical values.

Enjoy our new Shariah Compliant savings and financial products that are based on moral principles

For further enquiries please visit the nearest Stima Sacco branch or contact our customer care agents on +254 703024 000 | +254 703 024 024 or costomercare@stima-sacco.com

8 | SACCO REVIEW

99TH INTERNATIONAL CO-OPERATIVE DAY

JULY, 2021

THEME: REBUILD BETTER TOGETHER

The Board of Directors, Management and Staff of Kenya National Police D-T Sacco are pleased to be associated with the 99th Ushirika Day celebrations on July 3, 2021 whose theme is; Rebuild Better Together, as we mark milestones in the Co-operatives movement.

Happy Ushirika Day

FiRe Award and GCR rating adds to Kenya National Police DT SACCO’s Milestones

T

he Kenya National Police DT SACCO (KNPDT) has yet again done it, emerging the best overall winner in the 2020 FiRe awards.

The Award is the most prestigious and coveted Award in East Africa for Financial Reporting which aims at promoting integrated reporting through enhancing accountability, transparency and integrity.

The FiRe Award, a joint initiative of the Institute of Certified Public Accountants of Kenya (ICPAK), the Capital Market Authority (CMA) Kenya, and the Nairobi Securities Exchange (NSE) was founded and held for the first time in 2002. The primary objective of the Award is to strengthen financial markets and attract investment.

“We owe this Award to our members! Thank you for choosing us-Join the winning team today,” read the Sacco’s message of appreciation after the triumph.

The Sacco just like other private sector institutions that participated in the Awards, submitted its Accounts for review on Accountability, Transparency and Integrity.

The Award is a result of a rigorous evaluation process using globally accepted principles and best practice standards. These guiding principles include International Financial Reporting Standards (IFRSs), best practices in governance and corporate citizenship as well as other requirements that are specific to a particular reporting entity.

And year 2020 was indeed a rewarding year for the Kenya National Police DT Sacco, which was also recognized globally for its exceptional international credit rating.

The Sacco exhibited a positive outlook both as a long and short term national issuer according to the recent Global Credit Rating

ditionally, revenues rose by 3 per cent to stand at Sh6 billion up from Sh5.8 billion previously.

To cap it all, year 2020 also marked the beginning of the Sacco’s 2020-2024 Corporate Strategic Plan that is anchored on three thematic areas namely: Corporate Governance, Membership and Service Excellence and Institutional Capacity Development.

Back to its latest achievement, this year’s FiRE Awards were hosted at the Nairobi Serena Hotel and presided over by retired Chief Jus-

David Mategwa,OGW , ICUDE, DSA Kenya National Police DT Sacco Society Limited Chairman.

(GCR) ranking.

Global credit rating (GCR) has upgraded the Kenyan long and short-term issuer ratings assigned to Kenya National Police DT Sacco (KNPDTS) Society Limited to BBB+(KE)/A2(KE), from BBB(KE)/A3(KE) respectively, with a Positive outlook.

According to GCR report, the ratings on the Sacco reflect its favourable asset quality relative to financial sector peers, good capital and leverage and sound funding and liquidity, counterbalanced by its limited competitive position in the context of the broader banking/ financial institutions sector.

With a GCR Leverage ratio of 31.73% for FY20, (FY19: 29.51%), the Sacco’s strong capital position is a key ratings strength. GCR expects the strong capital position to persist into the long term, supported by a sustainable dividend pay-out ratio and strong earnings.

The society’s dividend policy dictates that the Sacco retains ei-

Moses Manyuanda, the GM Finance receiving the FiRe Award trophy won by Kenya National Police DT Sacco.

ther KES 1billion or 20.0% of the net earnings to increase the capital position. The current core capital to total assets ratio at 32.0% is 22% above the regulatory requirement of 10.0%, the institutional assets to capital ratio at 23.9% is 15.9% higher than the 8.0% regulatory requirement and the core capital to deposits ratio at 49.3% is 41.3% above the 8.0% requirement.

The Sacco’s risk position is a positive ratings factor. The reported gross NPLs (FY20: 0.8%) tracked below the industry average of 6.15%. 99.0% of the Sacco members are mostly salaried civil servants and police officers and the member base is viewed as possessing asset quality supportive characteristics such as, stable governmentbased salaries and deduction at source.

In addition to this, use of guarantors and collateral has ensured that the Sacco has consistently reported low NPLs between 0.3% and 1.7% over the past 5 years. The lending book is diversified and the top 20 NPLs form 0.19% of the total loan book.

The Year 2020 also saw the Sacco maintain a lead in the highest growth in the country for a second year running, registering the second-highest growth rate among the large-tier Deposit-Taking Saccos book.

The society’s assets grew by 12 per cent to Sh39 billion up from Sh34.8 billion in 2019. Deposits also grew by 9 per cent from Sh19.5 billion to stand at Sh21.3 billion at the end of the year 2020.

Still on the growth trajectory, the Sacco loans and advances grew by 12 per cent to Sh32.6 billion, up from Sh29.1billion in 2019. Ad-

David Kangogo, Vice Chairman.

Jeremiah Lekoken, Honorary Secretary.

Amos Tingos, Treasurer.

tice David Maraga and The 2020 FiRE Awards Theme was “Financial reporting during uncertain times” and was jointly promoted by PSASB, CMA, ICPAK, and NSE. The FiRe Award is presented annually, during a colourful, gala evening hosted by the joint promoters.

The FiRe Awards has always recognized and feted the best reporting entities in East Africa for the past fourteen (15) years.

Business entities make disclosure of their activities to enable a wide range of stakeholders use such information in making economic decisions.

And the Kenya National Police DT Sacco which emerged best in the Sacco category this year is among the leading country-wide Deposit Taking (DT) Saccos with and with an asset base of Sh39 billion.

The Sacco continues to come up with better product and services to meet every member’s needs under its Front Office Savings Activities (FOSA) and Back Office Saving Activities (BOSA).

The Sacco also has its mobile banking service namely M-Tawi, where members can dial *653# or Download the APP from the Google play Store and carry out various services such as instant transactions and loan applications, make various service requests and so much more at the comfort of wherever they are.

Members can use the pay bill number 4027903 to easily deposit funds to their accounts.

The Sacco introduced a mortgage facility which enables members to own their dream homes.

They can access up to Sh8 million with an interest rate of 9 per cent per annum and 20 years repayment period The Sacco’s dedication to growth through provision of innovative products and services has over the years earned success and development in the society.

Soldiering on, The sacco will be celebrating its 50th anniversary next year, a significant year that accurately coincides with its ambitious target of Sh50 billion asset growth by the end of 2022.

Solomon A. Atsiaya, Chief Executive Officer.

JULY, 2021

SACCO REVIEW | 9

e

• Premier (84 Months, 4 times of monthly deposits) • Mega (72 Months, 4 times of monthly deposits) • Super (60 Months, 4 times monthly deposits) • Normal (48 Months, 4 times monthly deposits) • Refinancing (48 Months, 4 times monthly deposits) • Asset financing (24 Months, 4 times monthly deposits) • School fees (12 Months, 4 times monthly deposits) • Emergency (12 Months, 4 times monthly deposits) • Muslim (48 Months, 2 times monthly deposits) • Muslim emergency (12 Months, 2 times monthly deposits) • Wezesha/Biashara loan (4 times business account deposits)

• Savings Account

• Q-cash (1 month)

• Junior Account

• M-sasa (3 months)

• Holiday Account

• Fosa Flex (6 months)

• Business account

• Fosa Golden (9 months)

• Fixed Deposit Account

• Fosa Ultra (12 months)

• Group/Corporate Account

• Dividend Advance

We increased our loan multiplier from 3 times to 4 times your deposits!

Own your

DREAM HOME now! with our Mortgage Facility!

• Loan amount Max 4million 8 million • Interest Rate-9% P.A • Repayment period-20 years

@policesacco www.policesacco.com 0709825000 police_sacco

...Empowering members for quality life

info@policesacco.com

2020 Figures At A Glance

Total assets Ksh 39 bn.

Total deposits Ksh 21.3 bn.

Total loans and advances Ksh 32.6 bn.

Revenue Ksh 6 bn.

Dividends on share capital 17% amounting to Ksh 489.1 m.

Co-operatives CAS Ann Nyaga addressing Kenya National Police DT Sacco delegates during the 2021 Annual Delegates Meeting (ADM) held at Serena Hotel.

Interest on deposits 10.5% amounting to Ksh 2.1 bn.

Police investment co-operative membership 6,291.

Police investment co-operative total assets Ksh 388.1 m.

Polive investment co-operative member deposits Ksh 91.3 m.

Police investment co-operative share capital Ksh 86 m.

Police investment co-operative gross revenue Ksh 208 m.

Kenya National Police DT Sacco Delegates follow the 2021 ADM.

JULY, 2021

10 | SACCO REVIEW

EDITORIAL

Co-operative movement needs greater attention The co-operative movement in Kenya has become the flag-bearer of survival during times of crises.

The co-operative sector has been growing across the country even during the economic recession and financial meltdown and the advent of Coronavirus pandemic.

It is the backbone of many economies and supports a wide range of small and medium-sized enterprises.

The co-operative way of doing business has been held up internationally as the ideal alternative to incorporation. The members own the co-operative.

Early this year, Sacco Societies Regulatory Authority (SASRA) revealed that Saccos’ asset base jumped to Sh622 billion in 2020 compared to Sh530 billion in 2019 despite the Covid-19 pandemic, an amount rivaling total assets of the third top bank in the country.

The social and economic benefits of cooperatives can have far reaching impact, but they need support from the government to reach their full potential.

This year, 3 July marks the 99th International Day of Co-operatives, a day which reminds the world that co-operatives are much more than the local shop, or a bank.

This year’s theme is “Rebuild better together” and co-operatives are set to showcase how they are meeting the Covid-19 pandemic crisis with solidarity and resilience and offering communities a peoplecentred and environmentally just recovery.

The aim of the International Day of Co-operatives is to increase awareness of co-operatives and promote the movement’s ideas of international solidarity, economic efficiency, equality, and world peace.

Co-operatives are a dynamic people centred business model operating in more than 100 countries.

The primary role of co-operatives is to meet their members’ needs. Too often, they have been viewed as instruments for the delivery of the goals set by external agencies, such as governments and NGOs, and criticised for not reaching the poorest.

We must let co-operatives be co-operatives, which are ‘for profit’ enterprises.

Therefore it is vital that there is respect for a co-operatives institutional integrity with their distinctive model of governance and enterprise, and their enshrined values and principles.

SACCO REVIEW

Website: www.saccoreview.co.ke

Chief Executive Officer: Peter Silsil Business Development Manager: Stephen Makabila Managing Editor: David Kipkorir Revise Editor: John Nyaosi Marketing Executives: Omari Onyango, Joseph Mbanda & Brenda Korir Layout & Design: Gabriel Sankale & Sydney Kimiywi Distribution Team: Daniel Maganya, Gerald Labatt & Peter Suge

Registered at GPO as a newspaper

I am

OPINION

Co-operatives as vehicles for economic recovery As we celebrate Ushirika Day 2021 it is important to reflect where we are, where we have come from and where we want to be as a society and within the context of co-operative movement.

We need to appreciate the guiding principles that led to the innovation of the cooperative movement i.e. self-help, mutual support and equity.

It’s important in the modern world to appreciate these values as were recognized by Rockdale miners that acted as their motivation to form the first co-operative society.

The power of togetherness and the fruits of the same should be incorporated as we embark on the rebuilding of the macro and micro economics after the Covid-19 pandemic.

It’s important to appreciate that the pandemic has brought most of the

Paul Ngugi Ruo

We need to appreciate the guiding principles that led to the innovation of the co-operative movement i.e. self-help, mutual support and equity.

sectors of the economy to their knees and some to deathbeds.

Therefore, it is the appropriate time we recognize the importance of togetherness no matter the sector we are in; hospitality, beauty, manufactur-

ing or whichever.

Those affected need to analyze how their operations have been affected by the pandemic and arise from their comfort zones, uphold new ways of doing their business and to the others who lost their employment to look for the best way to arise dust up and move forward.

The pandemic should rekindle the importance of the following virtues in the society: • The importance of team work • The importance of faith and harmony • T h e importance of embracing a saving culture and ensuring one is in a position to access affordable and flexible credit facilities in times of need.

• No sector of the economy is immune from effects of

a pandemic.

The pandemic is now almost coming to a culmination of its peak and before it is eradicated forever it is high time each and every individual learns the importance of combining together. It’s through teamwork that we shall rebuild better together.

As we celebrate Ushirika Day 2021 the ‘I can attitude’ should be erased from our mindset and replaced with ‘we can attitude’. If we are to rebuild healthier together, let’s cuddle co-operation as the vehicle to economic recovery and the rebuilding of any sector of the economy.

Wishing all a happy Ushirika Day 2021.

Mr Ruo is a police officer based at NPCE A campus, and holds a degree in Co-operative business from the Co-operative University of Kenya.

OPINION

JULY, 2021

SACCO REVIEW | 11

Reforming country’s politics, economy key in addressing needs of the masses Talking truth to power is not easy. In third world and also in dictatorial regimes it is a huge risk to undertake. But reality is some human beings are born or are characterized by nature to take certain risks.

That is why even in the toughest moments of colonial era some heroes emerged and stood against the powerful stranglehold by colonial powers. Some of these include Kenya’s first president Jomo Kenyatta, Tanzania first leader Mwalimu Julius Nyerere and I can go on and on.

During the KANU reign when challenging the powers that be was scary several politicians some of who are in politics today stood up as did journalists, lecturers, religious leaders, members of the civil society etc.

Today the environment in Kenya is a bit different from the 1980s and 1990s when I was growing up.

But even today we have unique challenges that need some radical solutions and they must be brought to the table for discussions. Key among them is reforming politics and the economy.

If I look at the identity card registration

numbers of many of my generation, I do realize how few we were in the country when Jomo Kenyatta and Daniel Arap Moi ruled the country.

The country had plenty of untapped or unexploited natural resources like forests, rivers and even land per family needed for farming.

We were a poor country even with all these but pressures for instance, for employment were not as high as today.

Today with a population hovering around 50 million people and growing fast, we certainly have more pressures. Some natural resources like forests and land available for farming per family are far much smaller.

The populations in cities and towns like Nairobi are growing faster as people search for viable economic activities.

I do interact with all manner of people or cadres of labour as it is part of my daily interactions as a researcher. I therefore interact with those we are calling themselves hustlers and also non-hustlers, including boda boda operators, matatu crews, construction workers, mechanics, hard cart pushers, the eggs and smokies (sausage) vendors on the

important ecosystem of what makes a nation.

Away from even the impacts of Covid-19, the single important worry to many is the economy and what it holds to the future. President Uhuru likely has what he would want to have a legacy for Kenya.

It is likely also there Harrison Mwirigi Ikunda are certain milestones that he has set for himself before his term in office streets, mitumba dealers, is over. Perhaps he has fruit vendors, restaurant faced a lot of setbacks for workers and so on. many reasons that surI deal or interact also round Kenya’s political with small scale business and economic realities. owners who sell electron- Moreover, some ideas ics, garage owners, food like affordable housing is kiosks, wine and spirits, one of the greatest thing timber dealers, construc- to have been thought tion material dealers etc about which I’m trying besides what we can call still to figure out what lower middle class and went wrong with previmiddle middle class pro- ous regimes on this one. fessionals such as teachInfrastructure exers, nurses, junior civil pansion as in roads and servants, office workers railway are brilliant such as accountants, law- ideas even if part of imyers, journalists, bank- plementation was not ing clerks, those working perfect. Cracking down in security sectors. on corruption is still anI also get opportuni- other thing much as we ties to deal with some have not done well or of the rich, big business enough in this area. owners, politicians and This country like any relatively a good number other is a tough ecosysof what we can classify as tem to manage. Worse upper middle class. Each still a poor a country with of these have important a lot of scarcity mentalviews of dimensions of ity is a tough thing to politics, economy and so- run. The President’s cial life. They all form the ideas on unity are great

but as I have mentioned the many interactions with all cadres of people, many are worried about what the future holds for them.

Whatever reforms and magic that needs to be done should place priority on the economy. We need an economic miracle. China which was a basket case not long ago managed to transform the lives of millions of people through quite transformative economic ideas obviously also anchored on the strong pillar of politics. Kenya too needs that.

Political and economic transformation is needed rather urgently.

BBI is a good idea but it should address economic transformation. The poverty and daily survival makes many just fall for anything. BBI is quite futuristic and looks set to address perennial setbacks, but we also have the now problems the President needs to keenly address.

BBI is a good idea but be wary the now problems is the biggest hurdle as we look at this solution.

The Writer is a Political, Economic and Social Analyst and Commentator.

Establish co-operatives in social services sector Co-operatives, by their very definition, are formed to serve the socioeconomic and cultural needs of their members.

However, the majority of co-operatives in Africa are agro-based and financial in nature while aspects of social services are given a wide berth.

In view of the challenges facing humanity globally courtesy of Covid-19 pandemic, it is now absolutely necessary for new types of co-operatives to be formed to specifically focus on the social wellbeing of their members.

What immediately comes to mind is the need to promote health and worker co-operatives to pay special attention to healthcare of the co-operators as well as protection of the planet by forming co-operatives comprising mainly the youths.

Alongside this, service

cooperatives to promote the uptake of technology are something that can no longer be taken for granted.

It is in public domain that the existing public and private healthcare facilities have been overstretched to the extent that some Corona patients have no access to medical care, hence facing the danger of easily succumbing to the disease that is causing untold sufferings to many households across the world.

It is for this reason that cooperatives need to pay urgent attention to matters health (and progressively education) since the co-operative movement has the wherewithal to complement governments in improving the lives of the people.

Such change of focus will change the mindset of co-operatives some of

Fred Sitati which only perceive co-operatives as instruments of generating surpluses for their members!

In fact, the financial cooperatives are in the habit of competing amongst themselves in declaration of dividends and payment of interest to their members which is also used as a tool for perpetuating their stay in office since current laws don’t cap the terms of office of office bearers.

While elections are held democratically and regularly in line with the co-operative principles, we note that some boards/ committees have some deficiencies in competencies to run their co-operatives in the most professional manner.

This needs to be remedied by introducing Independent Directors in the co-operative movement to offer the much-needed professional input to make co-operatives competitive and attractive and, above all, inspire confidence of members and third parties.

While this may be resisted and even fought viciously by the leaders, they need to be reminded that what is in the best interest of the ordinary members overrides any other vested interests from any quarter Indeed such a move

would be proactive rather than reactive since it has been difficult to rein in persons who mismanaged co-operatives despite there being stringent laws and oversight organs mandated to keep tabs on their societies’ day-to-day operations.

Given the ever-growing healthcare needs of the people, co-operatives need to see this as an opportunity for them to run away with by forming health co-operatives to promote health education besides Medicare.

Additionally, there is an urgent need to mobilise the youths in particular to form Worker co-operatives to address environmental Conservation efforts necessary to mitigate Climate change that threatens the planet.

Sitati is a consultant in the Sacco Movement.

12 | SACCO REVIEW

JULY, 2021

Review Coffee Cherry regulations to benefit farmers

By Correspondent

The much-anticipated turnaround of coffee cooperatives following the introduction of cherry advances to the farmers by the recently created New KPCU, a state corporation, continues to elicit mixed reactions from those expected to benefit from the proposed interventions.

A cursory assessment shows that the uptake of this facility remains way below expectations despite frantic efforts being made by industry players since last year.

I have perused the said Regulations together with the Crops (Coffee) (General Regulations, 2019 and here below are my observations thereon as they apply to coffee cooperatives.

Before I do so, it is absolutely important to understand and appreciate the nature of cooperatives and how they carry out their businesses within the legal, regulatory and policy frameworks.

All cooperatives in this country are subject to the Cooperative Societies Act (Cap 490) of the Laws of Kenya as far as their Constitution, Registration and Regulation is concerned.

Specifically, sections 27 and 28 of this Act provide that Annual General Meetings and Management Committees of cooperatives constitute the "supreme" and "governing" authorities of these cooperatives respectively.

As far as hierarchical order of our legal infrastructure is concerned, the Cooperative Societies Act (Cap 490) remains the main source of cooperative law and is only subservient to the Constitution.

Other subsidiary legislation/ Regulations/Rules made

thereunder cannot subjugate the provisions of the parent Act. That I think is something to bear in mind as we discuss any regulations that may be made to affect cooperatives.

Secondly, our cooperative legislation is tailored to be in tandem with the universally accepted cooperative principles that are well listed in Section 4 of the said Act and, as a matter of legal requirement; all proposed societies seeking registration must anchor them in their bylaws.

This has been the practice ever since the Act was repealed in 1997(Amended 2004).

general meetings.

That explains why they always need to cite the relevant minute numbers to back up their important decisions when committing their societies while entering into contracts with third parties.

That demonstrates their observance of the Legal Standard of Care required of them as "ordinary men of business" who must be prudent and diligent in all their dealings lest they face dire consequences specified in the law(s.).

Fourthly, it should be emphasized that cooperatives are 100 per cent private sector enterprises and the role

Kibugu Farmers Co-operative Society chairman Robinson Ngano (right) inspects coffee in a member’s farm in Kibugu area of Embu County. Calls have been made to review Coffee Cherry regulations.

Briefly, the seven (7) principles highlight among others Democratic Member Control" as well as "Autonomy and Independence."

Thirdly, Cooperatives are legal entities and as such once in a while they enter into contracts with third parties on behalf of their cooperatives/ members.

For this to happen legally, they derive such authority from the supreme organs or

of government is largely to provide appropriate policies as well as enact suitable laws that spur their growth.

Put another way, cooperatives are NOT appendages of government.

With the foregoing in mind, in my own interpretation of the law, I note a few fundamental flaws in the Cherry Advances Regulations, 2019 as follows;

a. Eligible borrowers (Regulation 10).

As far as I know, cooperatives are jointly formed by members and in the event of entering into any contractual agreements with third parties; it is the Societies through their committees that sign the required contract documents.

By overstepping this order, the lender is actually usurping the role of the committees. b. Regulation 11 provides that: “A person "desirous” of accessing the fund shall apply in writing for the coffee advance. ......"

The point here is that borrowing from this Fund is not mandatory! c. FormA1 to be filled by individual farmers should be "Authorised" by the CEO/Manager and the Chairman.

As far as I know, most cooperative societies have Executive Officials (Chair/Vice/ Treasurer/ Secretary) who have signing mandates anchored in their bylaws.

In any case, cooperatives must observe their own registered bylaws to the letter lest they are punished for any breach thereof! d. Use of Societies Common Seal.

In keeping with Societies bylaws, the affixing of the Common Seal to signify the Societies' commitment must be "minuted" but not as proposed in Form A1. e. The official mode of communicating any important information such as the participation of members in any project through the society should ideally be done in duly convened general meetings.

That way, the committee would have no excuse but execute general meeting resolu-

tions.

That is the democratic member control that underpins the cooperative business model the world over!

My understanding of the law is that the structures and organs created by an Act of Parliament cannot be subjugated by Regulations which are merely sources of subsidiary legislation.

To that end, the Cherry Advance Regulations need to be harmonised with the parent Act (CSA) or else we will be perpetrating an illegality that would be very costly to the struggling coffee cooperatives.

Way Forward i. Review the Coffee Cherry Regulations to recognise the organs established by the Cooperative Laws; ii. If there are any misgivings about the integrity of those running the coffee cooperatives, tackle them head on without creating more anxiety and uncertainty among the members.

Remember, some of the leaders are respectable opinion leaders in their areas hence they require protection for them.to continue whipping their members to expand coffee growing in their areas.

All said and done, there is need for creation of more awareness on the Fund so that the members "buy in" willingly without appearing to be bulldozed.

Bottom line, address the mismanagement of coffee cooperatives, where it exists ,without interfering with the structures and organs created by law bearing in mind the fact that all Regulations or Rules cannot override Acts of Parliament.

FEEDBACK COLUMN Headline on corruption in Sacco Movement was unfair to industry I don’t agree with your EACC screaming headline. It is sensational and had the potential to scare away potential customers from the movement. This did not go well with most of us who are really trying so as to sustain the sector at the rooftop of Africa. While it might be true that many corruption cases have been record by Ethics and Anti-Corruption Commission (EACC), the newspaper should have given an opportunity to at least a CEO of any Sacco to react to the same headline in the spirit of right of reply. While the reports were based on the fact provided by the EACC, Sacco Review, a newspaper which we highly respect in the industry should have considered getting reactions from the industry player in order to give a fair perception to the whole situation.

-Concerned Sacco CEO -Embu I agree with Writer Sitati I wish to commend writer Fred Sitati, a regular columnist in Sacco Review for highlighting serious issues within the co-operative sector. In particular, I was quite impressed by his argument in the June Edition that co-operative sector does not need a standalone Ministry. His arguments were valid and well presented. Most of us had joined the band wagon that with an independent Ministry of Co-operatives would have more visibility in government.

However, we failed to see that with devolution of co-operative functions, it is not necessary to pursue the thought.

-Anastasia Wambui –Kiambu

We wish to register with a well-paying Sacco We are a women group of more than 100 based in Kawangware in Nairobi. We are planning to join a Sacco as a group and open an account with them. We have mobilised savings for quite a while and we feel that it is time we grow our organisation. Our plan is to invest in some projects and we will need some loans against our savings. Kindly refer us to one of the most stable Saccos in Nairobi and the environs so that we register with them. We would also appreciate if you can indicate how they pay interest on deposits as well as dividends.

- Dorothy Muhonja, Kawangware

Update us on progress of the new Co-op professional body I saw a story in one of your recent editions on the establishment of a professional body called Kenya Society for Professional Co-operators (KSPC) for the Sacco movement that will be involved in setting the standards in hiring, promotion, retirement, pension and general remuneration of staff and managers serving the industry. Would you please shed more light on the progress on the activities of the new body?

I wish to know, for instance, whether or not a draft policy along this line has been released or not. If available, kindly share with us Mwakiringo Jeffa –Kilifi

What is the rationale of withholding members' dividends?

I am avid reader of Sacco Review based in Meru. I wish to appeal to you to assist us to push for transparency and accountability in some of our Saccos. This year I did not receive any dividend but was paid a small amount of money in terms of my interests on deposits. We were later informed by the management of the Sacco that what was supposed to be paid as dividends was retained to recapitalise the Sacco. We are very unhappy with such decisions which are undertaken single-handedly by the Sacco managers. Why we were not consulted? How much was retained and how does it benefit the members.

- Nkanatha Mugambi, Meru

JULY, 2021

99TH INTERNATIONAL CO-OPERATIVE DAY

SACCO REVIEW | 13

THEME: REBUILD BETTER TOGETHER

Mombasa Port Sacco family (Board of Directors, Management and Staff) are pleased to be associated with the 99th Ushirika Day celebrations on July 3rd as we count milestones in the Sacco sector and the general Cooperative Movement.

Happy Ushirika Day

MPS at a glance

BOARD MEMBERS

. Total income – Kshs 11m . Total asset – Kshs 6.6 billion . Deposits and savings Kshs 3.5billion . Total turnover – Kshs 747.75 million . Membership - 7,056

SACCO REVIEW | X

JULY, 2021

Benefits of membership

As a member, you are able to manage your financial wealth through the following ways: • Earn dividends on your deposit contribution and currently we are the best Sacco in the country on dividends awards • Acquire X | sacco review loans at low interest rates ranging from one month advance up to 84 months’ loans • Financial advice on loans to take and how to develop yourself • Education day to our members to inform them on finance and society growth • Exhibition of our products during Ask show and CooperaMuslim Normal Loan tive day where our members are given shirts and caps to be an act - 2 times member deposits of being proud to be a member - 48 months repayment period - Nointend interest charged • Excellent customer care service and we to move to executive customer care services for the prestige members Muslim Emergency Loan • Best fixed deposit with the rates up to 10.5% on your de- 2 times member deposits posit - 12 months repayment period • Members are also entitled to the following account prod- No interest charged ucts from Mombasa port Sacco: - Loan processed within 24 hours

About Us

Alfred Jaka, Chairman

JULY, 2021

FIXED DEPOSIT ACCOUNT

Loan Products

- Withdrawal is upon maturity Benefits - Earn competitive interest rates of up to 12% p.a - The higher the amount and longer you invest the more you eill earn.

- The account holder has the option to roll over the deposit to another period Requirements

Mrs Emily Chamba

- Dully filled application form - Member - Copy of ID/Passport

- - -

HEAD OFFICE - NAIROBI: Kenya Police Sacco Plaza Ngara Road, Off

Long term loans Short term loans Education loans

Imarisha Sacco sincerely appreciates and values the beneficial healthy relationship that exists between us. Be assured of our continued unwavering support in every endeavour

VISION A sacco with customer-centric experience

MISSSION Providing efficient financial service delivery to customers through continious innovation

Ben Juma Parrot Account Kilimo loans and Mrs Rael Munyoki advances Chepkechir - Member Member

- Loan Maximum amount - 8 million

Services

STIMA SACCO

Imarisha Sacco Society Limited is pleased and priviledged to congratulate STIMA

Philip Ouma Obonyo Gekone SACCO and joining in celebrating thisMwole, great milestone of launching Shariah Features Gervas Mrs Susan Ayoyi, 0mwalo compliant products. This achievement will go a long way in ensuring that all religious - Available to all members- Vice Member Treasurer Hon. Secretary Chairman communities are financially empowered.

- The fixed term deposits is for 3,6 and 12 months

Own Your Dream Home Now Registered in 1966 our Mortgage Facility Membership - Kenya Cargo Handling Services Ltd, KPA, With - Interest Rate - 9% P.A FOSA commensed operations in 2010 - Repayment period - 20 years

- - -

Congratulations

Supervisory Committee Members

Open Parrot Account for children

Brighten their future

Kenya National Police DT Sacco

Muranga road P.O.BOX 51042 - 00200, Nairobi

www.policesacco.com

CONTACT US

Dedan Ondieki, imarisha Sacco Society P.O.BOX682-20200, Kerischo,Kenya C ||E O0709825570 || MERU 0709825590 Website. www.imarishasacco.co.ke | Email: imarisha@imarishasacco.co.ke | Call +254 0709 578 000 | FB: imarisha Sacco Society Limited BRANCHES : MOMBASA 0709825505 || ELDORET 0709825530 || KISII 0709825551 NYERI || Mrs Esha Khamisi, Mr George Ondigo - Bernard Dawa, Head office,Kericho. Branches || Bureti - Bomet - Muloto - Ndanai - Awasi - Keringet - ELdoret - Nandi Hills - Nrok NAKURU 0709825600 || KAKAMEGA 0709825560 Supervisory Chairperson JANUARY, 2020 Member Secretary

- -

X | SACCO REVIEW

M -Sacco ATM

#50yearsofMembersEmpowerment

MOMBASA PORT SACCO U

s

h

i

MOTTO:

VISION

Ushirika kwa manufaa ya wote[cooperation for the benefit of all

To be a global financial institution providing competitive financial solution

r

i

k

MOMBASA PORT SACCO SOCIETY LTD

a

THE AFRICAN CONFEDERATION OF CO-OPERATIVE SAVINGS AND CREDIT ASSOCIATIONS (ACCOSCA) MISION STATEMENT CORE VALUES To strengthen social economic well-being of our customers through prudent management and innovative products and services

Excellent customer care Creativity and innovation ♦ Integrity and transparency ♦ Corporate social responsibility ♦ Team work

♦ ACCOSCA ♦

Invites You

TO THE 21ST SACCA CONGRESS

LoaN PRoDUcTs SACCO PRODUCTS AND SERVICES

BACK OFICE SERVICE ACTIVITY (BOSA) SAVINGS PRODUCTS JIENDELEZE LOAN

BACK OFFICE SERVICE

MASAA LOAN

♦

BIG Project?

Savings accounts

This is an emergency loan top up.

FINANCIAL ADVICE MEGA LOAN ♦ Business accounts for Repayable in 12 months.

M-BANKING SERVICES Guarantors/collateral required.

Processed and disbursed on request. business people MONEY TRANSFERS Issued upto four (4) times a member's deposits/ ♦ Group accounts for M-PESA SERVICES contributions upon qualification ASSET FINANCE LOAN groups Repayable in 72 months.

CHEQUE CLEARANCE ♦ Special savings account Invoice of your dream asset from the supplier of Processed and disbursed on demand. like holiday account for future travel choice.

NORMAL LOAN Fully filled loan application form. and leisure Friendly interest rates.

Guarantors/collateral required. ♦ Fixed Deposit Accounts ACCOUNTS OPENNING Repayable in 36 monhs.

Issued upto three (3) times a member's deposits/ with interest between 7.5% to REQUIREMENTS The asset financed acts as collateral. contributions upon qualification 12.5% Faster loan processing.

Repayable in 60 months. ♦ Children accounts for The Society fiances 75% of the required amount.

Processed and disbursed on demand. ♦ I.D copy members with children Guarantors or additional collateral may be required. ♦ Pasport ADDITIONAL LOAN Copy of National ID & PIN. It is a top up loan for hose with Normal Loan ♦ K.R.A PIN Certificate ombasa port sacco ♦ Referees BIASHARA LOAN Guarantors/collateral required. ♦ Guarantors.

Issued upto three (3) times a member's deposits/ The product is tailored for our business members. contributions upon qualification The businesses should be registered and having Repayable in 60 months. operated for at least two years.

Processed and disbursed on demand.

12 months bank statement needed for those banking elsewhere (proceeds to be channeled to the society EMERGENCY LOAN after loan disbursement) Issued upto three (3) times a member's deposits/ Fully filled loan application form with guarantors/ contributions upon qualification collateral is required.

Repayable in 12 months.

Friendly interest rates.

Processed and disbursed on request.

Repayable in 36 months.

Come to us. We have the right product for you.

JIENDELEZE LOAN

To register book your slot,contact us through info@accosca.org limited slots available required. due to COVID-19 Restrictions Guarantors/collateral

Issued upto four times a member's Empowering and promoting Cooprtatives in Africa upon qualification Mombasa Port Sacco Limited P.O.Box 95372,Mwakilingo St, deposits +254 725 238367(Mobile) Repayable in 84months.

Moi Avenue Mombasa Mombasa,Kenya 041-220124/2222786(Landline) P.O.BOX 43278-00100 Kilimanjaro Road,Nairobi, +254 0202714648 Processed and disbursed on demand. mombasaportsacco@rocketmail.com/ info@msaportsacco.co.ke / marketing@msaportsacco.co.ke info@accosca.org, www.accosca.org

sERVIcEs

Among our products are: 1.FOSA- SAVING PRODUCTS - Ordinary savings account - Children account - Group savings account - Biashara savings account - Fixes deposit account - Company savings acoount - Joint savings account

5 -11TH SEPTEMBER 2021 | MBABANE ESWATINI

SCHOOL FEES

Issued upto three (3) times a member's deposits/ SERVICES ACCOUNTS contributions upon qualification Do THEME: you have plans for any Repayable in 12 months.

OFFERED Integration and Sustainable Network Processed and disbursed on request.

Guarantors/collateral required.

Issued upto four (4) times a member's deposits/ contributions upon qualification S Repayable in 84 months.

Processed and disbursed on demand.

Mega Loan Normal Loan Additional Loan Emergency Loan Masaa Loan School Fees Loans Business Loans Fosa Jumbo Loan Fosa Normal Loan Fosa Emergency Loan Salary Advance Fosa Prestige Fosa Ordinary Biashara Loan

Fosa Senior Citizen Farid Swaleh Account - Member

2. BOSA- LOANING PRODUCTS - Jiendeleze loan - Normal loan - Additional loan - Emergency loan - School fees loan - Masaa loan - Asset finance loan - Biashara loan

WHY JOIN MOMBASA PORT SACCO - Quick loan processing - No loan processing charges - No hidden charges - Loan repayment period is up to 84months for back office loans - Emergency and instant loans processed on demand - Affordable interest rates for our loan products and advances - A sacco that is growing at an impressive rate with great returns - Access your funds through M-sacco or any Visa branded ATM 24/7

WHO CAN JOIN MOMBASA PORT SACCO? - Salaried person - Business people and entrepreneurs - Former member who had withdrawn - Pensioners - Registered community, investment,women or youth groups -Business enterprises - Any other person with reliMOMBASA PORT SACCO able source of income Sacco of your choice

041-222 0124 +254 725 238 367

+254 780 238 367 +254 743 836 783

infi@msaportsacco.co.ke www.msaportsacco.co.ke

99TH INTERNATIONAL CO-OPERATIVE DAY

14 | SACCO REVIEW

THEME:

JULY, 2021

REBUILD BETTER TOGETHER

The Board of Directors, Management and Staff of Gusii Mwalimu Sacco are pleased to be associated with the 99th Ushirika Day celebrations on July 3, 2021 whose theme is; Rebuild Better Together, as we mark milestones in the Co-operatives movement.

Happy Ushirika Day PERFOMANCE The Sacco realised growth in total assets by 10.7 per cent from Sh 9.4 Billion in 2019 to stand at Sh 10.4 Billion in the year ending December 2020.

Members deposits reported a growth of 12.8 per cent to stand at Sh 7.6 Billion from Sh 6.7 Billion in 2019.

Loans to members grew by 12.1 per cent from Sh 7.8 Billion in 2019 to Sh 8.8 Billion in 2020.

The Sacco’s total revenue grew by 9.9 Per cent from Sh 1.5 Billion in 2019 to Sh 1.6 Billion in 2020.

Membership grew by 3.5 per cent from 35,016 in 2019 to 36,244 members in 2020.

David Ogega, Chairman Gusii Mwalimu Sacco.

As a result of this growth, the board proposed members’ rebates for interest on deposits at a payout of rate of 12 per cent, retained as was in the previous financial year 2019, and also dividend payout at the rate of 13 per cent in 2020, up from 12 per cent paid in 2019.

Gusii Mwalimu Sacco CEO, Charles Omwansa.

GUSII MWALIMU SACCO SOCIETY LTD PRODUCTS Gusii Mwalimu Sacco offers a wide range of financial products and services to its members in order to satisfy their varied financial needs.

BOSA PRODUCTS

Board of Directors

1. Development Loans 2. Refinancing Loan 3. School fees Loans 4. Emergency Loan FOSA PRODUCTS The newest property owned »» by Gusii Mwalimu Sacco Society Ltd.

1. Salary advances -1 month Salary Advance.

2. Salary advances – 4 months Salary Advance.

3. FOSA Loans (12 months, 24 months & 30 months).

4. Asset Finance.

5. Institutional Advances – 4 months Advance for corporate institutions.

BOSA SERVICES 1. WELFARE SERVICES i. Burial Benevolent Fund-BBF ii. Self iii. Spouse. iv. Own children. v. Risk fund.

FOSA SERVICES 1. Salary, pensions and produce payment.

2. Members’ personal Loan clearance.

3. Fixed deposit accounts Sale of Banker’s cheques 4. 24 hour- In-house ATMs, 5. Corporate accounts for Institutions.

6. Mobile Banking.

SACCO REVIEW | 15

JULY, 2021

Embrace all sectors of the economy, Saccos told

By Malachi Motano Savings and Credit Co-operative Societies (Saccos) must now tap into all sectors of the economy following the government’s budget for the 2021/22 fiscal year.

According to the Director of Co-operatives Banking Division at the Co-op Bank Vincent Marangu, the country has opened up now and is witnessing many business activities opening up too.

“Looking at what the government has done in the budget such as increasing allocation in agriculture sector and also housing, co-operatives can tap and benefit from this,” he said.

He singled out the coffee, tea and even dairy sectors as great beneficiaries that since the stabilization of the dollar shall help the co-operatives to tap into them.

He was speaking during a three day national supervisory and audit committee workshop for Co-operative Alliance of Kenya (CAK) in Tsavo held under the theme: “Role of the supervisory committee members in the co-operative in bringing transformation and good governance and prudential financial management, in co-operative societies.”

“This meeting comes at a time when the economy is in recovery, the global economy is as well opening up and there is optimism that trade and facilitation of global commodities can access markets,” he said The Director also indicated that

From left, Co-op Bank Director of Co-operatives Banking Division Vincent Marangu, Susan Kinyeki, EACC deputy director Reports and Data management and CAK CEO Daniel Marube during the CAK Supervisory and Audit Committee workshop in Tsavo. the general outlook is very promising for housing co-operatives since more funds were assigned to affordable housing docket in the burget The director indicated that the current budget also emphasized on deficit gap that needs to be financed.

“We are going to see a lot of demand by government on internal borrowing and although it will not be good for private institutions, it shows that Saccos with excess liquidity can benefit from other type of investment instruments even as

the government’s appetite for funding increases,” he said.

He said they are optimistic that co-operatives will remain resilient just like during global financial crisis in 2008/09 where they demonstrated resilience.

“With the Covid-19 pandemic, the co-operative sector has withstood challenge and we expect that co-operatives will be careful when lending and will be able to recover.

The general outlook is very promising and CAK is doing a good job on

what needs to be done,” the director said.

Also in attendance was deputy director Reports and Data management at the Ethics and Anti-Corruption Commission (EACC) Susan Kinyeki who said that they have partnered with CAK to address the numerous malpractices in the movement.

“We have gotten reports on malpractices; some are under investigations while others we have referred them to multi-agencies,”

SASRA: First batch of 300 Non-DT Saccos to get licences soon In the new regulations that were published by the government, SASRA is also supposed to implement NDTs that mobilise membership and subscribe to their share capital through digital and electronic payment platforms and also people who reside outside the country.

By Correspondent The Sacco Society Regulatory Authority (Sasra) will be issuing the first batch of licences to the Non-Deposit Taking (NDT) Saccos as the June deadline expires.

The government had published new regulations (Regulations 2020) in January 2021 that required the Non-Deposit Taking Saccos to seek authorisation to operate from the regulator.

“We (the Regulator) will soon be issuing the first batch of licences having received over 100 applications,” said Sasra Acting Chief Executive Officer Peter Njuguna.

Njuguna, however, clarified that whereas many Saccos have sent their applications to the authority, their data indicate that over 150 Saccos that have filed theirs, have not met the threshold on specified deposit taking Saccos.

“We are, however, happy with the compliance for licensing which the first entry point is. I want to encourage the remaining Saccos to keep on applying since as the au-

thority we do not expect them to be 100 per cent compliant as there are many areas that Saccos need to work on,” he said.

According to the Sasra boss, Covid-19 has posed challenges and has seen businesses encountering bottlenecks such as loss of income and the authority is out to strike a balance so that they facilitate Saccos even as they comply by engaging them, guiding them to know their weaknesses vis-a-vis their performance standards.

“There is a standard to be met and as you compare Saccos and even as they grow the business, the growth has to be in a sound way,” he said.

He was speaking at the Cooperative Supervisory and Audit workshop in Tsavo where he acknowledged that the workshop was timely for NDT Saccos since already there is a remarkable shift in terms of governance.

“The regulations for NDT have given the supervisory committee expanded mandate to do the job that is normally done by Audit.

This is critical in that it is provid-

Peter Njuguna, SASRA Ag CEO. ing oversight to what the board and management are doing, therefore, having a platform to get clarity on what is expected and doing things not over and over again but differently,” the CEO said.

He reminded the audit committee that they have a greater responsibility to provide assurance to members that the policies and

strategies they have as well as the resolutions passed at the AGM are in order and being implemented.

“Supervisory committee members are unique and they derive directly their money from members and report directly to them, therefore, in terms of strengthening governance and for NDTs Saccos that are small, they do play a pivotal role,” he noted.

He said that although the regulations don’t have a vacuum and has to be complied with since there are consequences; he assured Saccos that it’s not a bullet kind of consequence and added that the most important thing is for them to first apply for the licence.

Njuguna said there could be incidences where capital is not there and some Saccos have plans.

As long as they are serving their members, the objective of the government is not to close them but to bring them to a new operating standard which is demanding.

He encouraged Saccos to continue submitting their applications and also enable the conversation with the authority to start since

she said.

She said that for the last 5 years now EACC has received over 300 reports with over 50 currently under investigation.

“We are advising the co-operatives to identify risk areas in their Saccos and mitigate them,’’ he added.

The Executive Director and CEO of CAK Daniel Marube explained that the audit and supervisory meeting was to ensure proper financial management in the co-operative societies.

He acknowledged that members of the audit committee play a significant oversight role on behalf of members which include monitoring and evaluation on how the board of directors and management staff run the affairs of co-operatives.

“We need to strengthen and equip the supervisory members on how they can execute their mandate in strengthening the good governance so that we do not have ethical and audit issues in our Saccos,” Marube said.

He said much attention should be given to ICT, cyber security or even how to detect fraud in order to minimize the risk.

“The supervisory members working and providing services to co-operative societies should be equipped with appropriate and relevant tools to become good auditors and good financial managers in order to safeguard the resources of our members,” Marube said.

SASRA’s mandate is to advise, walk with the institutions to enable them understand and give them time before deterrent measures come into place,” he said.

The Ag CEO made it clear that the law provides for provisional authorisation of 12 months in the journey of compliance under the new regulatory framework. He clarified that the June 30 deadline does not mean the end of the process. “We have up to September,” he added.

“We will have to be engaging and communicating with the Saccos. We have seen the Saccos response is good so far as they are still coming to register,” Njuguna said.

In the new regulations that were published by the government, SASRA is also supposed to regulate NDTs that mobilise membership and subscribe to their share capital through digital and electronic payment platforms and also people who reside outside the country.

The Co-operative movement in Kenya is rated number one in Africa with over 23,000 registered co-operative societies commanding a membership of about 14 million, employing more than 500,000 Kenyans directly and another 1.5 million indirectly.

They contribute about 32 percent of the National Savings, have mobilized members’ savings and deposits of over Sh800 billion, with an asset base exceeding Sh1 trillion and loan portfolio of more than Sh700 billion as of 31st December, 2019.

16 | sacco review

JULY, 2021

SACCO DIARY

Changes at the giant CIC Group Board

The Ins & Outs in the Industry

SASRA advertises Chief Executive Officer’s position

By David Kipkorir The Sacco Societies Regulatory Authority (SASRA) recently announced the vacancy for the position of Chief Executive Officer (CEO), formerly held

by John Mwaka.

According to the advertisement on the dailies, qualified candidates had until June 30, to apply.

“The authority is seeking to recruit a high calibre motivated, visionary, dynamic and results oriented candidate to fill the position of Chief Executive Officer to provide stewardship required to deliver the authority’s

Mr Peter Njunguna, SASRA Head of Sacco Supervision, currently Ag. CEO. mandate,” the advertisement read in part.

The qualified candidates should have 10 years' experience in financial management, co-operative practice and management, finance or economics, as well as proven leader-

ship experience.

The applicants are also required to get clearance from the Ethics and Anti-Corruption Commission (EACC), the Directorate of Criminal Investigations (DCI), the Kenya Revenue Authority (KRA), the Higher Education Loans Board (HELB) and the Credit Reference Bureau of Kenya (CRB).

Former manager in charge of the entire Sacco sub-sector's supervision at the authority Peter Njuguna recently assumed the seat of the CEO on an acting capacity.

Long serving Japheth Magomere exits as CIC Group chairman with Dr. Nelson Kuria coming in as the new Board Chairman. Apart from CIC Group, Mr Magomere has also been the chairman of ICA Africa and the chair of Ushirika National Organising Council.

Under the same changes Mr James Njue Njiru has been appointed as the new Board Vice Chairman. The changes have also seen Ms. Jyoti Patel also proceed to retirement alongside Mr Magomere.

Dr. Nelson Kuria, incoming CIC Group Chairperson

Japheth Magomere outgoing CIC Group Chairman

KETSA gets new chairman Robert Njue Kathanju (pictured), the Chairman for Winas Savings and Credit Co-operative Society (Sacco) becomes the new chairman of Kenya Teachers Sacco Association (KETSA).

He is succeeding John Muigai Njuguna whose term ended.

Njuguna was elected as a director at Kenya Union of Savings & Credit Co-operatives Ltd (KUSCCO).

He is the Chairman at Cosmopolitan Sacco, formerly Nakuru Teachers Sacco.

Solution Sacco Vice chairman joins KUSCCO board Tartisio Ituuru (pictured) who is the current Vice-chairman of Solution Sacco Ltd has been elected as a KUSCCO director. He was sworn in during the KUSCCO 33rd Annual Delegates Meeting.

NYANZA

Siaya County owes Ufanisi Sacco over Sh4.4m

By Erick Nyayiera Operations at the Siaya Ufanisi Savings and Credit Co-operative Society Limited have been adversely affected as the county government is yet to release the over Sh4.4 million owed to the Sacco.

The Sacco had been branded from the Bondo County Council Employees Sacco to cater for the staff being absorbed by the County government of Siaya from the defunct local authorities.

Siaya County government has failed to release the monies to the Sacco accrued from the month of March 2021.

Chief Financial Officer James Ogwel regretted that their numerous attempts to ensure the release of the monies continues to bear no mean-

Siaya Ufanisi Sacco chief financial officer James Ogwel. Photo/Erick Nyayiera

ingful fruits as the county leadership insist that they do not have the funds and that the little resources at their disposals have been channelled to other development matters and salaries.

“We have not received the money from the county government which we should give as loans to our members, they (County leaders) keep on telling us that they haven’t received money from the national government yet these are supposed to be deductions from members’ salaries which are up to date,” said Ogwel.

He stated that the Sacco has a loan backlog of over Sh3 million and that members have become depressed since it’s taking a longer time to secure loan services for needs such as school fees and other

economic ventures.

“The main purpose of the Sacco is the mobilization of savings for members and get loans in order to improve their welfare and those of their families and to invest on behalf of our members but without the resources we cannot do much,” Ogwel noted.

Ogwel however acknowledged the Siaya County Assembly which he said were up to date in remitting members deductions. The Members of County Assembly in Siaya are all subscribed to the Sacco.

The other Siaya Ufanisi Sacco membership is largely drawn from the employees of the Siaya County government.

However in 2014, they amended the Sacco by-laws to open a common bond and have over 250

members currently. The Sacco also has membership from other counties like Kisumu.

The Chief Financial Officer outlined that as a Sacco they are striving to build a stable financial base which will be able to increase the volume of output of the society and diversify products as well as improving and maintaining a healthy liquidity ratio and also most importantly be able to increase the level of surplus to the society.

“We have also been able as a Sacco to educate our members on the sacco industry related issues to make them able to make sound borrowing and investment decisions but majorly encouraging savings which has the potential to empower them socio-economically,” stated Ogwel.

SACCO REVIEW | 17

JULY, 2021

SACCO MEMBER

Speaking to Sacco Review in his office, the acting Eco-Pillar Sacco Chief Executive Officer Mr Fred Siywat congratulated Rotino for the great initiative he is doing.

Former teacher reaps Eco-Pillar fruits of success

By Martin Ruto As you snake along the rough roads of Kosulol Village in Chepareria Division, West Pokot County, your view will be filled with lush green leaves from mango tress, napier grass covering rolling hills where farms hide amongst the trees.

West Pokot County is a largely rural area, with many people working in agriculture. It can be a tough life, but for members of Eco-Pillar Sacco Society Limited, it has become a little easier.

Eco-Pillar Sacco has been a long standing member of Kenya’s co-operative movement and has set off along a successful path, thanks in part to the supportive services of its members.

Peter Rotino, a member of the Sacco is proud to see how Eco-Pillar has transformed him by helping him plant, literally in some senses, little seeds of success.

Rotino was born at Kashelpogh Village; Chepareria Division in West Pokot County in 1959, his early education was at Chepareria Primary School, there after he proceeded to the prestigious Chewoyet Boys National School before joining Mosoriot Teachers Training College in Nandi County.

Poultry Farm.

As a member of 4K Club in high school and subsequently being the patron of the 4k club at Mosoriot Teachers Training College, Mr. Rotino gained a lot of experience in matters concerning farming.

After qualifying as a P1 Teacher, Mr Rotino was posted to Korellach Primary School.

He immediately became a member of Eco-Pillar Savings and Credit Society Limited.

Mr Rotino borrowed his first loan of Sh200, 000 which enabled him to relocate from his ancestral home of Kashelpogh to Kosulol village in Chepareria Division.

After six years of service as a teacher Mr Rotino borrowed his second loan of Sh500, 000 from Eco-pillar Sacco which he used to buy two acres on which he planted maize, beans, tomatoes and sweet potatoes.

The experienced teacher and farmer borrowed his third loan of Sh800, 000 with which he bought a 3-acre chunk of land.

He then introduced other plants including mangoes which take about three years to mature for harvest. The type of mangoes he plants include crafted and uncrafted mangoes which take 5 years to be ready. Mr Rotino also plants tissue culture bananas which includes VH1, VH2 AND F1 variety.

In addition Mr. Rotino has three acres of coffee and 5 grade cows which gives him about 30 litres of milk per day which he supplies to his customers in Chepareria town.

Other plants in Mr. Rotino’s farm include Sunflower, Lemon, Grass, Jack Fruit and Boma Rods Grass.

Mr Rotino was also among the first farmers who were given bracharia grass

Eco-Pillar Sacco has been a long standing member of Kenya’s co-operative movement and has set off along a successful path, thanks in part to the supportive services of its members.

species imported from Brazil.

Other farmers from within and outside the county, for example, Trans-Nzoia and Uasin Gishu visit him to get some seedlings for planting.

Mr Rotino irrigates his plants using water from a borehole which he dug. Water is pumped to a 10,000 litre tank which is used for home usage and farm irrigation especially during the dry season.

The teacher who retired in 2019 also concentrates in poultry farming.

Most of Mr Rotino’s products get ready market at Chepareria Urban Centre, Ortum Market

Peter Rotino,

a member of the Sacco is proud to see how Eco-Pillar has transformed him by helping him to plant, literally in some senses, little seeds of success.

Irrigation sprinkler system.

and Kapenguria Municipal Market.

Mr Rotino estimates on average his yearly profit to be about Sh600, 000. As a successful farmer, Mr Rotino has hosted several farmers in his farm who come to consult on various issues concerning farming.

High yields have enabled him to expand his home by constructing additional structures and paying school fees for all of his children.

He attributes much of this to the financial help he was afforded through his Sacco, EcoPillar.

The loans he accessed from Eco-Pillar helped Rotino to grow his agribusiness, increase his income and reinvest in EcoPillar through savings.

His success has been fairly great and he hopes his children will continue to benefit from his work.

Mr Rotino says he’s become a strong supporter of Saccos and the co-operative movement because he’s seen firsthand how cooperatives can add value to small communities through enhanced financial management and access.

For Mr Rotino his dream of success started as small seeds in the soil, but has blossomed into income-generating crops and dairy farming.

His story is like that of

many other co-operative members who have all been able to expand their farms, homes and raise living standards thanks to the improved financial accessibility.

The experienced senior retired head teacher once taught at Korellach primary school in Chepareria, Sigor Mixed Primary School in Pokot Central as School’s Deputy, Tulungwo Primary School also in Pokot Central, Konyao Arid Zone Primary School in Pokot North, Kosulol Primary, Chepkorniswo Primary and Marsitet Primary Schools in Chepareria Division in Pokot South.

Mr Rotino has served as a BOG member of Kosulol Secondary School and St. Theresa’s Tartar Girls National School. In giving back to the community, Mr Rotino is currently serving as the treasurer at St. Mathew’s ACK Kosulol Church in Chepareria in Pokot South Sub-County.

Speaking to Sacco Review in his office, the acting Eco-pillar Sacco Chief Executive Officer, Mr Fred Siywat congratulated Rotino for his great initiative.

Siywat urged other teachers to emulate Rotino by taking loans from Eco-Pillar Sacco.

“Actually Rotino is a retired teacher but not tired in teaching”, Siywat added.

Mango fruit trees in the farm

Napier grass

Mr Peter Rotino in his farm.

18 | SACCO REVIEW

JULY, 2021

99TH INTERNATIONAL CO-OPERATIVE DAY

THEME: REBUILD BETTER TOGETHER

The Board of Directors, Management and Staff of Qwetu Sacco are pleased to be associated with the 99th Ushirika Day celebrations on July 3, 2021 whose theme is; Rebuild Better Together, as we mark milestones in the Co-operatives movement.

HAPPY USHIRIKA DAY.

QWETU SACCO AT A GLANCE • Founded in 1968 and launched in 1976.

• Has four branches.

• It was formerly known as Taita Taveta Teachers Sacco, before rebranding to Qwetu.

• Chairman is Mr Alfred Mlolwa.

• Headquartered in Wundanyi.

• Has 43,000 members.

• CEO is Mr Charles Kaba.

Charles Kaba , Qwetu Sacco CEO.

Mr Alfred Mlolwa, Qwetu Sacco Chairman.

(Left) Qwetu Sacco delegates following proceedings during the ADM. (Right) Qwetu Sacco Chairman Mr Alfred Mlolwa (right) signing the agreement for construction of a multimillion building in Voi town with the contractor. Photo/Michael Oduor

QWETU QWETU SACCO LTD

QWETU SACCO LTD (FORMERLY TAITA TAVETA TEACHERS SACCO LTD)

Email: headoffice@qwetu.org/tsacco77@yahoo.com

Website: http://www.qwetu.org

■ Human resource planning, development and training ■ Practice the values and uphold good corporate Governance ■ Prepare employee motivational package and introduce staff tour – this will lead to high productivity ■ Provide incentives to both the workers and the client’s e.g. highest saver so that customers may complete and save more hence give cheap loans.

■ Review of loaning procedures and policies ■ Set dynamic activities that will foster the realization of the vision 2030.

1 VISION “To be a competitive and reliable provider of market driven financial solutions to its customers” MISSION “To positively impact on the lives of customers through building a dynamic financial institution that provides inclusive market driven financial solutions In order to achieve and realize its Vision and Mission,Qwetu Sacco will: ■ Develop a variety of customer oriented products ■ Educate and advise members to use loan for the applied purposes.

■ Expand its clientele and increase the loan portfolio by growing the branch network

PRODUCTS AND SERVICES ● Toto wa Qwetu accounts ● Group organization accounts Qwetu super deposit

(FOSA) PRODDUCTS Products and Services offered in this department includes:● Savings accounts for SACCO members and non members ● Fixed Deposit Rates (FDR) ● Salary processing and payments ● Processing of members dues from BOSA i.e Loans, Refunds,Risk Retirement Fund (RRF) and Dividends. ● Pensions processing and payments ● Salary advances ● Overdraft on pending Loans, Refunds and Advances on un-cleared cheques. ● Processing of express Loan ● Fosa staff Loans ● Salary in advance WUNDANYI HEAD OFFICE P.O.BOX 1186-80304 WUNDANYI TEL: 0720-077658

VOI BRANCH P.O. BOX 802-80300, VOI TEL: 0728-483398

(BOSA) loans ● Normal Loan ● Emergency Loan ● School fees Loan ● Special Emergency Loan ● (Risk And Retirement Fund) RRF ● (Loan Protection Scheme) LPS FOSA loans ● Fosa plus ● Fosa personal ● Express loan ● Salary advance ● In advance TAVETA BRANCH P.O. BOX 254 TAVETA TEL: 0728-483321

.MICRO CREDIT PRODUCTS ● Qwetu Biaashara loan ● Kilimo Biashara loan ● Asset financing\ ● LPO financing ● Women fund OTHER SERVICES ● ATM Services ● Mobile Banking ● Spot chash ● Sms alerts

QWETU SACCO LTD

(FORMERLY TAITA TAVETA TEACHERS SACCO Faida Leo Na Kesho

NJUKINI SATELITE OFFICE MWATATE BRANCH Email: headoffice@qwetu.org/tsacco77@yahoo.com Website: http://www TELL: 0700-895413 P.O BOX 1186 MTITO ANDAEI TEL 0725649122 SATELITE OFFICE ■ Human resource planning, dev TEL: 0700-895410

1 VISION “To be a competitive and reliable provider of market driven financial solutions to its customers” MISSION “To positively impact on the lives of customers through building a dynamic financial institution that provides inclusive market driven financial solutions In order to achieve and realize its Vision and Mission,Qwetu Sacco will: ■ Develop a variety of customer oriented products (FOSA) PRODDUCTS ● Normal ■ Educate and advise members to use loan for the applied purposes.Loan Products and Services offered in thisthedepartment ● Emergency ■ Expand its clientele and increase loan portfolio by growing the branchLoan network

PRODUCTS ANDNa SERVICES Faida Leo Kesho

■ Practice the values and uphold ■ Prepare employee motivationa to high productivity ■ Provide incentives to both the customers may complete and ■ Review of loaning procedures ■ Set dynamic activities that will

includes:● School fees Loan ● Savings accounts for SACCO members and ● Special Emergency Loan PRODUCTS AND SERVICES non members ● (Risk And Retirement Fund) RRF ● Toto wa LPS Qwetu accounts ● Fixed Deposit Rates (FOSA) (FDR) PRODDUCTS ● Loan protection Scheme) ● Group organization accounts ● Salary processing and payments Products and Services offered in this department Qwetu super deposit ● Processing of members dues from BOSA FOSA loans includes:i.e Loans, ● Fosa plus ● Fosa personal ● Express loan ● Savings accounts for SACCO members and loans Refunds,Risk Retirementnon Fund (RRF) ● Salary advance ● (BOSA) In advance members ● Normal Loan ● Fixed Deposit Rates (FDR) and Dividends. ● Emergency Loan Salary processing and payments ● Pensions processing●and payments MICRO CREDIT PRODUCTS School fees Loan ● Processing of members dues from BOSA ● Qwetu Biaashara●loan ● Salary advances ● Special Emergency Loan i.e Loans, ● Overdraft on pending Loans, Refunds and ● Kilimo Biashara loan Refunds,Risk Retirement Fund (RRF) and● Asset financing\ ● (Risk And Retirement Fund) RRF ● (Loan ProDividends.

Advances on un-cleared cheques. ● LPO financing tection Scheme) LPS Pensions processing and payments ●Processing of express● Loan ● Women fund FOSA loans ● Salary advances ● Fosa staff Loans ● Fosa plus ● Salary in advance ● Overdraft on pending Loans, Refunds andOTHER SERVICES● Fosa personal Advances on un-cleared cheques. ● ● Toto wa Qwetu accounts ● ATM Services ● Mobile Banking ● Express loan Processing of express ● Group organization accounts Qwetu superLoan deposit ● Spot chash ● Sms● alerts Salary advance ● Fosa staff Loans BOSA) loans ● In advance ● Salary in advance

WUNDANYI HEAD OFFICE P.O.BOX 1186-80304 WUNDANYI TEL: 0720-077658

Board of Directors of Qwetu Sacco.

VOI BRANCH P.O. BOX 802-80300, VOI TEL: 0728-483398

TAVETA BRANCH P.O. BOX 254 TAVETA TEL: 0728-483321

MWATATE BRANCH P.O BOX 1186 TEL 0725649122

NJUKINI SATELITE OFFICE TELL: 0700-895413 MTITO ANDAEI SATELITE OFFICE TEL: 0700-895410

Email: headoffice@qwetu.org/tsacco77@yahoo.com Website: http://www.qwetu.org

Faida Leo Na Kes

JULY, 2021

SACCO REVIEW | 19

THEME: REBUILD BETTER TOGETHER

The Board of Directors, Management and Staff of IG Sacco are pleased to be associated with the 99th Ushirika Day celebrations on July 3, 2021 whose theme is; Rebuild Better Together, as we mark milestones in the Cooperatives movement.

IG (Invest & Grow) registers impressive performance despite challenges posed by Covid-19 pandemic

By Tindi Kuchio Since the outbreak of Covid-19 pandemic in the country in March last year, the management of IG (Invest & Grow) Savings and Credit Co-operative Society Limited, embarked on an ambitious plan to diversify the channels through which members can access its products and services.

The Sacco reviewed its mode of operation especially the provision of FOSA services in order to help reduce exposure of its members to the dreaded disease.

Speaking to Sacco Review recently, the Sacco Chairman Kennedy Lidanya Keya confirmed that the society had introduced IG Sacco Pesa Pepe mobile banking platform to enable its members access services remotely.

“We have also introduced mobile loan products such as IG E-Loan, IG E- Salary/pension advances and IG E-dividend advance to enable our members access funds with ease. Tax relief has been considered to enable members access short term loans and reviewed Credit Reference Bureau status for members to help them access credit,” said Keya.

Keya explained that the society had rolled out IG E-Loan to the general Sacco membership to enable them access mobile loan of up to Ksh. 50, 000 without any guarantors subject to terms and conditions set.

He said some of the services offered on the IG Sacco Pesa Pepe mobile banking platform include; checking accounts and loan balances, mini-statements, accounts to Mpesa money transfer and payments of utility bills.

Keya confirmed that over 26, 147 Sacco members are actively using the mobile banking platform.

He noted that issuance of statements has been limited to emails with members only visiting the head office in Kakamega town for certification and bank letters.

The Chairman revealed that the Sacco had ensured that most ATM cards applied by members are promptly processed and issued to be used as a backup by members in the event of inaccessibility to the

Society’s M-Banking services.

He also confirmed that the society’s ATM cards had been branded in the Sacco’s name complete with its corporate colours, for members who had voluntarily applied for them from 1st January 2020.

Since opening its common bond in December 2015, IG Sacco has registered a steady growth over the years.

The Sacco assets grew by 10 per cent from Ksh. 9. 5 billion in 2019 to Ksh. 10.4 billion in 2020 due to an

Kennedy Lidanya Keya, IG Sacco Chairman. increase of members’ deposits and contributions.

The share capital improved by 20 per cent from Ksh. 713 million in 2019 to Ksh. 855 million in 2020.

This was attributed to the annual increment of share capital by Ksh. 4, 000 per member as per the society’s strategic plan.

Non- withdrawable deposits increased by 7 per cent from Ksh. 4.7 billion in 2019 to Ksh. 5.1 billion in 2020 due to consistent contribution of deposits by members.

Loans disbursed to members increased by 23. 3 per cent from Ksh. 4. 7 billion in 2019 to Ksh. 5.

8 billion in 2020. This was realized after the review of Sacco products features such as extension of repay-

Happy USHIRIKA DAY

IG Sacco at a glance Members’ deposits…...Ksh. 5, 987, 418, 090 Core Capital………..Ksh. 2, 685, 433, 993 Share Capital………..Ksh. 855, 295, 491 Institutional Capital……Ksh. 1, 733, 885, 195 Statutory Reserves……..Ksh. 707, 922, 660 Investments…………….Ksh. 516, 866, 177 Total Assets……………..Ksh. 10, 478, 130, 435 Loans and advances to members…. Ksh. 6, 732, 078, 416 Interest Income…………….Ksh. 1, 295, 889, 299 Net Surplus Before Tax…….Ksh. 396, 358, 118 Turnover/Income…………….Ksh. 1, 406, 534, 155.

Membership…………………24, 111 Sacco Staff …………...............66

ment periods, introduction of mobile loan products and multiplier ratios.

The extension of the repayment period for Fanikisha loan to 84 months has led to a sharp rise in loan uptake since the end of 2020.

The Sacco recruited a total of 834 members in 2020. The number of Sacco members who subscribed to Akiba Scheme rose from 16, 143 Mbale. in 2019 to 16, 547 in 2020. The soThe society has been issuing ciety has since intensified recruit- share certificates to all its members ment of FOSA salary earners with who were appearing in its shares regthe view to increase patronage of ister as at 31st December 2018. The FOSA products such as Akiba sav- share certificate is a legal document ings, FDR, Holiday savings and showing how much shares one owns Nyota Ndogo savings to generate in the Sacco (share capital, institumore income. tional share capital and investment/ Due to the importance that the plaza shares).

Sacco attaches to education and Through internal resource motraining, a total of 12, 019 mem- bilization and prompt loan recovery bers spread across thirty two venues which is done by a very competent within Kakamega, Vihiga and other staff, IG Sacco has not taken any neighbouring counties were trained in 2020.

The training covered various topics such as agribusiness to empower members in order to enable them invest and grow in different sectors of the economy.

The Sacco managed to open two new branches in Serem and Luanda to bring services closer to its members in the two areas.

Other branches MOBILE LOANS include; Head IG E - Loan enables all Office-Kakamega, Lumakanda, our members to access loans Malava, Muon their mobile phone of upto mias, Butere and

external borrowing for the past five years now.

IG Sacco is a Tier 1 Sacco and the sixth leading in the country as per the Sacco Societies Regulatory Authority (SASRA) classification with an asset base of over Ksh. 10.6 billion.

The Sacco held its 44th Annual Delegates Meeting at Golf Hotel in Kakamega in Kakamega on February 26, 2021.

Ksh 50,000 at the touch of a dial.

SALARY/PENSION ADVANCE IG E - Advance enables FOSA earners to access their salary or pension advance at the comfort of their homes.

Dial *879# & follow the procedure IG Sacco Plaza along Khalisia Road 3 in Kakamega.

Terms & Conditions Apply.

20 | SACCO REVIEW

99TH INTERNATIONAL CO-OPERATIVE DAY

JULY, 2021

THEME: REBUILD BETTER TOGETHER

The Board of Directors, Management and Staff of Ukulima Sacco are pleased to be associated with the 99th Ushirika Day celebrations on July 3, 2021 whose theme is; Rebuild Better Together, as we mark milestones in the Co-operatives movement.

Happy Ushirika Day

Why Choose Us Differentiated products and services that meet members’ financial needs.

Good Service Delivery.

Strong Asset Base.

Competitive interest rates on loans.

Branch Network • •

Nairobi Mombasa

• • •

Kisumu • Eldoret • Embu

Nakuru Kisii Richard Nyaanga, Ukulima Sacco CEO.

Ukulima Sacco National Chairman, Dr. Philip Cherono.

EXECUTIVE MEMBERS

Head Office: Ukulima

h<h>/D ^ K >K E^ Ed Z ^d Z d ^ Co-operative House, Haile BACK OFFICE LOANS Selassie

Avenue, P. O. Box 44071-00100Interest Nairobi, Tel(%) Rate Loan Product Term (Months) 0202785000 Per Month Kisumu Branch: United 1 School Fees 12 1 Mall, Ground1Floor, Wing 2 Emergency 12 A, P. O. Box 1378-40100 3 Additional Loan 30 1.2 Kisumu.

Tel 057-2020169 4 Normal 48 1 Mombasa Branch: Bahman 5 Lariba Loan 48 0 Andrew Okwach, Jeremiah Ongaro, Issac Cherop-National, Were Wamukoya, Chairman Trust Building, Mikindani 6 Chipukizi 48 1 National Vice Chairman.

Hon. National Secretary.

Treasurer.

Supervisory Committee.

Street, P. O. Box 860517 Jitegemee 60 1.2 80100 Mombasa, Tel 0208 Super Loan 72 1.2 2616972, 041-2312444 Eldoret Branch: Sirikwa FRONT OFFICE LOANS INTEREST RATES Oloo Street, Hotel Building, TheThe Society recorded impressive performance in all aspects as highlighted below: Society recorded impressive performance in all aspects as highlighted below: Interest Rate (%) P. O. Box 6703-30100 ElLoan Product Term (Months) Effective In doret, Tel 053-2032346 Per Month rate per yea 2020 (Kshs.)

2019 (Kshs.)

20% change Embu Branch: Kenyatta 1 Fosa Daima 60 1.2 8.2 Membership 41,589 38,600 7.70 Avenue, Eastern Emporium 2 Fosa Flex 48 1.2 8.0 Building, Member deposits 9,123,137,337 8,418,335,624 8.40 P. Embu7.9 3 Fosa Fahari 36 O. Box 992-60100 1.2 Share capital 751,167,237 690,481,133 8.70 Tel 068-2231325 Nakuru Branch: KFA BuildNet loans to members 10,186,488,680 9,374,334,984 8.70 ing, graound floor Geofrey Total Assets 12,741,487,337 11,920,513,672 6.90 Kamau way Kisii Branch Core capital 1,788,938,289 1,708,063,279 4.70 Mocha Building Institutional Capital 973,155,153 953,077,761 2.10 Embu Branch Kenyatta Avenue, Easter Revenue/Turnover 1,556,938,289 1,465,917,773 6.20 Emporium Building P.O Interests from loans & 1,427,146,218 1,368,529,210 4.30 BOX 992-60100, Tel; 068Advances 2231325

JULY, 2021

SACCO REVIEW | 21

Ukulima Sacco announce plans to grow share capital to 1b

U

By Staff Reporter

kulima Sacco has announced plans to involve its highest depositors in an ambitious plan to raise its share capital to at least KES1 billion in the next two years In the same plans outlined by the Sacco’s national chairman Dr. Philip Cherono during an investors forum held last week also announced that the plan shall see the society’s deposits increase to KES11 billion from the current Kes9.1 billion.

“Our highest depositors shall be a key integral stakeholders that shall see the Sacco realize its set strategic objectives as outlined in the strategic plan,” said Dr. Cherono during a two-day virtual event that brought together the Sacco’s 300 top investors.

During the forum, Dr. Cherono announced that the Sacco has introduced 3 distinct clubs that shall offer various value addition to its top savers as part of recognizing their support towards the Sacco’s growth.

“We shall have the highest savers join the

Ukulima Sacco Chairman (left) Dr. Phillip Cherono hands one of the Sacco’s top investor a gift pack during the Sacco’s top investors forum. Looking on is the Sacco’s CEO Richard Nyaanga (right).

privilege club which shall be the apex category followed by premium members and finally bronze members.

Members in the lower categories shall be migrated as their deposits and share capital contributions grow gradually,” said Dr. Cherono.

Other projections outlined during the event include growing the loan book from the current Kes10billion to Kes11 billion. This will also see

Delegates follow proceedings during Ukulima Sacco 2021 ADM at Serena Hotel Nairobi.

an increase in the Sacco’s market share from 4.2 to 5 percent.

Ukulima Sacco CEO Richard Nyaanga said already the society is implementing an ICT infrastructural upgrade that shall include integration of business intelligence, increase in network bandwidth and installing a contact centre that will result in increase in customer satisfaction.

“Customer satisfaction will be our key driver to enable us achieve these targets,” said Nyaanga.

He said the Sacco’s partnership with the Kenya Mortgage Refinancing Company shall see Kenyans benefit from affordable housing loans to propel the government’s big four agenda that of housing.

“Our Makao bora and Makao Halisi loans shall be issued to new members joining the Sacco and shall not be under the current guarantors’

policy but shall be collateral based,” he said.

Nyaanga said the housing loans shall be issued at a rate of 7 percent and 9 percent for low and high income earners respectively.

And as Kenyans join the rest of the world to mark the International Day of Co-operatives, locally christened Ushirika Day, Ukulima Sacco stands tall as a unique and giant sacco nationally.

And indeed, the Sacco chairman, Dr. Philip Cherono confirms Ukulima is unique in its own rights, setting standards in the country’s co-operative movement.

Established in 1972, the sacco has gone through a transformation that has seen it turn into one of the national giants, offering diverse products and services to its membership.

“Ukulima Sacco is unique in its own right.

We are a giant Sacco

offering diverse services and Products to the Ministries of Agriculture, Water and Livestock among others fields,” Dr. Cherono told the Media weeks to the Ushirika Occasion.

The Sacco has one of its strategic objective being to increase the minimum share capital to Sh50,000 per member by the end of the 2021 fiscal year.

The Sacco is also proud to be among Saccos selected by the government to offer affordable financing towards owning a home.

Ukulima Savings and Credit Co-operative Society (Sacco) is proud to be among the Saccos selected by the government to offer affordable financing towards owning a home. The Sacco has, therefore, designed Makao Home Plan which comprises two products; Makao Halisi and Makao Bora.

Makao Halisi is meant for those earning a gross income of Kshs 150,000 and below at 7% per annum on reducing balance while Makao Bora targets those earning a gross income of Kshs 150,000 and above at 9% per annum on reducing balance.

The income can be either a salary or business income. The product is meant for those who want to buy or construct residential houses.

Members who wish to get Makao Home Plan products should dial *882*9#. All our products are relevant and responsive to the needs of our members, as per the dictates of the prevailng economic situations in the country.

JULY, 2021

22 | SACCO REVIEW

COAST TAITA TAVETA

Action Aid launches project to empower women Women unanimously agreed that they need empowerment programmes for areas such as agribusiness, how to join and benefit from the various co-operative societies and enlightenment on how they can benefit from the valuable natural resources available in the county such as gemstones.

According to Atieno, Action Aid has been in Taita Taveta for over seven years which has made them decide to bring the project so that women in the region can benefit.

The project is expected to be channelled through the various leaders in the county government who will make it a success by Taita Taveta women leaders following proceedings dur- addressing the issues affecting women in the region and how ing Action Aid meeting recently. Photo/Michael Oduor they should curb them for their economic development.

Odiwa, project manager women

By Michael Oduor economic empowerment projAction Aid Kenya has con- ect and Action Aid Taita Taveta ducted an inception meeting on County Programme co-ordinator The WOMEN ECONOMIC Women Economic Empowerment Pauline Atieno, group leaders for EMPOWERMENT project (WEE) Project in Voi, Taita Taveta different women groups across is aimed at enlightening the County had the opportunity County. women on how to The project is aimed at en- to share the challenges they face unite for economic lightening women on how to unite and what they aspire to be done development. in order to positively develop their for economic development.

In a meeting overseen by Jack economic status.



WEE

KILIFI

73, 000 members join co-ops in Taita Taveta

By Michael Oduor A total of 73,828 members joined different co-operative societies in Taita Taveta County.

Savings and credit co-operative societies (Saccos) led in the total number of registered members.

Taita Taveta County Cooperatives Commissioner Mr. Erastus Gonzi revealed that there are 98 Saccos out of 190 co-operative societies regis- Mr Erastus Gonzi, Taita tered in the county.

Taveta County CooperaGonzi said Saccos have tives Director. a registered membership of 54,600 representing 73.96 per ings (AGMs) were halted, makcent while other 92 co-opera- ing most of them to defer their tives share the 19,22 per cent AGMs so as to avoid the spread representing 26.04 per cent of of the virus. the total membership.

However, Gonzi reiterated According to Gonzi, most that as a department, they have of the societies have not been created a conducive environaudited due to lack of auditing ment for co-operatives’ growth department making it difficult to and development through guidget the compliance state of the ance and support services to different saccos and societies in its clients, adding that capacthe region. ity building to both committee He also added that due to the members and members for betCovid-19 pandemic saccos and ter service delivery is their role.

Societies Annual General Meet-

Trade lobby gives traders Sh10m loans in Tana River

Join groups to get Uwezo Fund, women, youth advised

By Tsozungu Kombe

Juma Mtana, Malindi Sub-County Youth Development Officer.

Women and youth in Malindi Sub-county in Kilifi have been urged to join groups so that they can benefit from Uwezo Fund Speaking to Sacco Review in Malindi town recently, the area Chief Youth Development Officer Juma Mtana said Women and Youth will easily secure the money through forming groups.

He told them the Uwezo Fund cannot be granted to individuals and that is why they should join groups.

He further advised registered groups to apply for Uwezo Fund fund to empower them economi-

cally.

“Uwezo Fund is as a revolving fund that can boost ongoing projects and then you repay later” Mr Mtana added.

He cautioned the women and youth against loitering in the streets of urban centres instead of engaging in income-generating activities.

Mtana said women and youth had in the past received money amounting to Sh20 million to boost their business activities from the Uwezo Fund He advised groups which will get Uwezo money to repay promptly so as to enable others to benefit from the same fund.

Mr Hassan Barisa, Kenya National Chamber of Commerce and Industry, Tana River Country Branch Chairman.

By Our Reporter Kenya National Chamber of Commerce and Industry (KNCCI) has disbursed loans

Kwale women asked to form Saccos

By Staff Reporter Women in Kwale County have been urged to co-operate fully and form Saccos to uplift their living standards.

Speaking to Sacco Review in Kwale town recently, the acting Kwale county Cooperative Commissioner Mohammed Mkanga emphasized the importance of women forming Saccos in the

county.

He disclosed that the move would enable them to save to get big loans to implement their development projects more efficiently and effectively.

“You should form Saccos and sustain them to enable you get money to boost your undertakings”, he told women in the region.

He also asked residents in the

county who have not joined Saccos to do so in large numbers and invest heavily.

He said they will benefit from loans since their daily wages are not enough to implement their personal projects.

He however asked Sacco members in the region to remain united and patronize their Saccos to enable them offer quality and professional service.

amounting Sh10 million to 250 traders to boost their undertakings in Tana River County.

KNCCI Tana River branch Chairman Hassan Barisa said the lobby in collaboration with MASPIR Foundation has given out Sh10 million to the local county business community in an interest free revolving Fund.

He urged county residents to borrow loans wisely from the Chamber and use it for the intended purposes.

Barisa advised the traders in the region to repay their loans promptly so that other traders could also benefit from the same loan product.

He asked county residents who have not joined the Chamber to do so in large numbers in order to benefit from loans.

He said the Co-operative Movement plays a vital role in the country that and has uplifted living standards of people.

Acting Kwale County Cooperatives Director, Mohammed Mkanga. Photo/ Andrew Kasuku

You should form Saccos and sustain them to enable you get money to boost your undertakings.

X | SACCO REVIEW JULY, 2021

JULY, 2021 SACCO REVIEW | 23

99TH INTERNATIONAL CO-OPERATIVE DAY 99TH INTERNATIONAL CO-OPERATIVE DAY

ASILI, ASILI,OUR OURSACCO SACCO OUR OUR FUTURE!!

FUTURE! MESSAGE FROM THE NATIONAL CHAIRMAN MESSAGE FROM THE NATIONAL CHAIRMAN

It gives me great pleasure to joinme yougreat in It gives celebrating pleasure the to 99th join Interyou in national Co-Operative Day celebrating the 99th Inter(Ushirika national Day).

Co-operative Day (Ushirika This dayDay). allows all coThis day allowsonallthe cooperators to reflect operators to reflect on the achievements of cooperaachievements of cooperative sector. the Sacco sector tive sector.aThe Sacco sector contributes larger percentcontributes a larger age to the GDP of ourpercentcounage the GDPlow of our country bytooffering interest try on by loans offering lowimprovinterest rates while rates loans while improving the on member’s welfare. ing member’sfunds welfare.

Bythe mobilizing and By mobilizing funds and offering affordable loans offering affordable loans through advanced technolthrough technology. it alsoadvanced provides growth ogy,opportunity it also provides and for growth us to and opportunity for us strengthen our cords andto strengthen our cords and partner in the cooperative partner inboth the worldwide cooperative movement movement both worldwide and nationwide. and nationwide.

Business Overview Business Overview to Asili has endeavored Asili has endeavoured leverage on its strength and to leverage on its strength conducive environment to and conducive environment

Welcome to Asili Sacco Society limited Welcome to Asili Sacco Society Limited

continue championing the socio economic welfare of to continue championing our people by delivering the socio economic welfare sustainable performance of our people by delivering and contributing to the nasustainable performance and contributing the nation’s economic todeveloption’s economic development. ment.

Despite the myriad chalDespite the myriad lenges resulting fromchalthe lenges resulting frominflathe pandemic (Covid 19), pandemic 19), inflation, socio (Covid economic factors tion, socio economic and attrition, the factors society and recorded attrition,anthe society has increase in has recorded various areas.an increase in various The areas. traditional Sacco The faces traditional Sacco model a business model faces a business threat arising from disrupthreat arising disruption caused byfrom competition tion caused by competition from innovative market from innovative players.

When the market econoplayers.

When poorly, the economy performs the my performs the tendency and poorly, propensity tendency and propensity to save also drops.

It also to save also drops. It also affects membership reaffects membership recruitment which is a major cruitment which is a major source of funds. source of funds.

Asili Sacco National Chairman Evans Kegode during 2021 ADM Asili Sacco National Chairman Evans Kegode during 2021 ADM. DECEMBER, 2020

Strategic StrategicPlan Plan(2019-2021) (2019-2021) The board of directors and management have Thetirelessly Board oftoDirectors andthe Management have worked ensure that 3-year strategic worked tirelessly to ensure that the 3-year strateplan for 2019-2021 that incorporates aspects of gic plan for 2019-2021 that share incorporates aspects growth, expansion and market has been ofachieved. growth, expansion and market share has The Sacco projects to leverage onbeen its achieved.

The Saccofor projects to leverage on key its long long term strategies sustainability with foterm strategies for sustainability with key focus on cus on its shareholders. its shareholders.

Members are nevertheless advised to voluntarily Members are nevertheless advised to voluntarily plough back their dividends or interest on long term plough back their dividends or interest on long term deposits. The Board of directors will continue investdeposits. The Board of directors will continue investing in capacity building by participating in various ing in capacity building by participating in various forums and workshops that address some emerging forums and workshops that address some emerging issues adversely affecting the cooperative sector. issues adversely affecting the cooperative sector.

SACCO REVIEW | 13

ASILI SACCO S O C I E TY LT D

Vision

Mission

To be the preferred Sacco in provision of quality services and shareholder’s benefits.

USSD

*346# 6 3 8 0 1 8

FOSA PRODUCTS

Technology TechnologySavvy Savvy The Thefocus focusinin2020 2020was wastotomaximize maximizethe theuse useofofinintegrated IT platforms implemented in 2019. tegrated IT platforms implemented in 2019.We Welook look forward forwardtotobebea afully fullyautomated automatedorganization organizationoffering offering efficient service delivery to our efficient service delivery to ourcustomer. customer.The Thekey key milestones milestonesachieved achievedinin2020 2020includes includesfull fulloperationoperationalization alizationofofthe theback backoffice officefinancial financialsystem systemand andfront front office officecore corebusiness. business.

Technology Technologyhas hasenabled enabledus usintroduce introduceproducts/ products/ services like Asili Chap Chap (mobile services like Asili Chap Chap (mobileloan) loan)and andsalsalary processing for members who are using Fosa ary processing for members who are using Fosafacilfacility ityasastheir theirpay paypoint. point.We Wehave haveembraced embracedtechnology technology inincutting cuttingdown downoperational operationalcosts, costs,enhancing enhancingloan loan disbursements, disbursements,Mobility Mobilitypayments paymentsby byclients clients as as aa well wellasasshortening shorteningthe theturnaround turnaroundtime timeofofloan loanapapplication plicationand anddisbursement. disbursement.

ICT ICThas hasbeen beeninstrumental instrumentalininenhancing enhancingoperaoperational tionalefficiencies, efficiencies,conveniences, conveniences,overall overall customer customer satisfaction satisfactionand andpartnership partnershipwith withother other organizaorganizations. tions.Therefore, Therefore,I Iurge urgeall alldelegates delegatestotofully fullyutilize utilize the theICT ICTinfrastructure infrastructureatathand handi.e. i.e.website, website, email email among amongothers. others.

FOSA SERVICES Salary processing Bankers cheques ATM services M-Sacco - *346 Paybill - 638018

FOSA PRODUCTS FOSA pride Salary advance Biashara loans Chama loan FOSA school fees Hustler loans

Emergency loan School fees loan Refinancing loan Jipange loan.

Develop capacity of the Sacco through training, education and research.

Mainstream issues related to savings and financial freedom to our members.

Promote adoption of ICT in the Sacco.

ASILI SACCO ACCOUNTS Ordinary Saving Account Mwananchi v Ordinary SavingFOSA Accounts

Holiday Saving Account

Account No openingv balanceAsili Super Saving Registration certificate of the Minimum operating balance Ksh 500 Saving group Minutes resolving to open v Education Account of the account v Baraka Saving Account Photocopies of the ID of signav FOSA Mwananchi Account tories Holiday Saving Account v Fixed Deposit Account Minimum opening balance Ksh v Malkia’s Saving Account 5000/= The minimum share capital of Minimum savings of Ksh 500 per month 20,000/= 12-month maturity SOCIETY REQUIREMENTS No monthly charges Interest will be determined from time to time Withdrawal is done once per yearfilled membership form 1.Submit a duly

2.Attach a passport size photo Fixed Deposit 3.Attach a copy of your ID Asili Super Saving Account

4.Attach a copy of your KRA Pindeposit Ksh 20,000/= Minimum

Minimum opening balance Ksh 10,000 Withdrawal is done once per year Interest will be determined from time to time

Minimum period 3months

Interest rate negotiated dependJisort na CHAP CHAP! ing on the account balance dialing *346# Education Savings Account

BOSA SERVICES SHORT TERM

Objectives

To continuously mobilize member’s savings for provision of sustainable competitive financial services by using appropriate technology while adhering to cooperatives principles for benefits of shareholders.

LONG TERM Okoa loan Ordinary normal loan Special normal loan Super normal loan Maendeleo loan Instant normal loan Jipange asset financing loan

Withdrawal is done quarterly Interest will be determined from timeJipange to time na Asili Free bankers’ cheque Premature cheque clearance Ksh 500Sacco JIPANGE

Baraka Savings Account

ASSET LOAN For more information, contact us immediately!!

Id or passport for parents/guardian Birth certificate of the child Minimum balance Ksh 1,000 p.m.

Interest will be determined from time to time

SCHOOL FEES LOAN

1.Download salaryfor processing Malkia’s Saving Account -This accountthe designed the ladies form from ASILI SACCO WEBSITE

CONTACTS P.O. Box 49064-00100 Nairobi TEL: 0722472823/0733472823 E-mail: info@asilisacco.coop WEB: http://www.asilisacco.coop

Fill in the Malkia saving account application form and ID submit topassport Asili Sacco Attached both2.Fill the national and recent photo through the email asilisacco@yahoo.com Only charge on withdrawal Earn 10% interest per annum 3.Asili Sacco willwill inform your tofor be A voucher of Ksh 5,000/= be issued at theemployer end of the year ansending account with Ksh 200,000. your salary to us

HUMOUR W RLD

24 | SACCO REVIEW

JULY, 2021

Nectar’s lemon business is doing very well, thanks to Covid-19

E

ver since Nectar began the process of acquiring a loan from a local women micro finance organisation, I have been hanging around her to ensure that not only the process is concluded successively but also that she does not make mistakes that could cost both of us dearly especially at this time when the Corona pandemic has dealt a death blow to many businesses.

You see outside the classroom I can also moonlight as a business consultant with limited levels of success.

In fact I can tell you for free that the reason most businesses collapsed under their own weight due to the corona crisis is because their proprietors were just ordinary business people gambling with business and not serious entrepreneurs.

You see the latter makes serious reckoning

before embarking on any business, conducts market research and knows which side their bread is buttered. If push comes to shove, they still break even.

Think of a business of supplying water. You take a loan, purchase a water bowser and immediately you start the business, rain falls and there is water everywhere, or better still, a local project to supply water to locals is launched at the same time. Talk of miscalculation, and there is a loan to be repaid.

So when Nectar told me about plans to start a hair salon, I dissuaded her from that kind of business telling her that already competition was high in that hair sector.

I reminded her of the blunder that my cousin Timotheo did when he ventured into dairy farming with the wrong breed of cows. Cows that eat five sacks of grass and twenty

By Pascal Mwandambo litres of water only to give back half a litre of milk.

And should the lamb outrun you and get to the mother’s udder before you have cleaned the milking jug, rest assured you are taking tea without milk.

Though she did not like my kind of reasoning she took my advice with a pinch of salt.

You see much as she might claim that the loan is hers, should push come to shove both of us will

bear the burden, not to mention the fact that I’m still reeling under the weight of another unpaid Sacco loan.

“So what do you suggest I do with the loan?” she asked with a heavy air of anxiety.

I told her to start a business that has a bearing with Covid-19 pandemic.

“Are you suggesting that I start selling masks and sanitizers?” she asked, slightly taken aback.

“Not necessarily, but that can be a subsidiary part of the business”, I opined.

I wore the face of a business consultant from Harvard University and advised her to start a business with a quarter of the loan and hold the rest as a security. That’s called taking a calculated risk.

“There is no serious green grocer around our estate .You can take that business and stock,

among other things, lemons and garlic. These items have been selling well since the corona pandemic set in as they are believed to be immune boosters. As they say when nature gives you lemon make lemonade” Nectar seemed to buy my idea. And though all has not been plain sailing, her business has begun picking up gradually.

I am sure Nectar Green Grocer will become the darling of many a neighbor.

Meanwhile I have advised her to be polite to customers especially those who pay promptly and have the potential of coming back.

The essence of business is making profit, improving relations and making new contacts.

From the look on Nectar’s face, my advice has been of value though she can’t admit that openly.

They hardly do. It’s upon you to read the signals.

NAIROBI

Sacco builds staff capacity to boost service delivery

By Our Reporter Finnlemm Sacco is keen to build the capacity of its staff and board members to ensure informed and prudent decision making.

The board also underwent training to enhance board members understanding of their roles and responsibility.

The in-house training is being done every year to ensure induction of all new board members.

“The board has participated in leadership forums where they network and benchmark with leaders in other Saccos as well as the regulators,” Sacco’s Board Chairperson Rachel Ngondo.

Ngondo further noted that they have strengthened their board committees to oversee policy development, review and implementation.

She added that this year’s performance has demonstrated the strength of their brand as a going concern with promising future growth.

“I wish to extend our appreciation to all our members, our partners, service providers and the State Department of Cooperatives without whom, Mrs Rachel Ngondo, Chairperson of Finnlemm Sacco. we cannot be where we are today.” said Ngondo.

She said membership “The Audit and Risk Committee was incorporated analysis also shows the averto ensure board oversight in age age of their members is risk mitigation,” explained 44, indicating that they have an older membership compared to Ngondo.”

She acknowledges all the mean age of 20 years in the members for their continued country.

“We have been taking support which she noted had enabled the management to initiatives to encourage more strengthen and grow the Sacco women and youth to join our despite the difficult economic Sacco and you will see more conditions experienced last activities targeted at these groups.” added Ngondo. year.

Chai Sacco empowering members

By Staff Reporter Chai Sacco is known for empowering members financially through diverse loans products, savings accounts and other services tailored for various categories of members (farmers, Business community, Chamas, youth groups and check offs).

The Sacco has been in existence for 48 years since 1973 and has continued to embrace the use of technology for efficient service delivery.

Benefits of joining Chai Sacco include higher dividends returns, Faster loans processing, Customized financial products, Effective Customer Services, Financial stable and sound Sacco., Wider branch network hence

Festus M. Mwatee, CEO.

convenience and Easy accessibility of cash through Sacco Link ATM, M-Chai *645#, M-ChaiApp, Online Portal, Agency Banking.

Headquatered in Nairobi, the Sacco’s branch network include Nairobi Branch-KTDA Plaza Ground floor Tom

Mboya Street, Mombasa Branch-MKU Plaza ground floor Nkrumah Road, Litein BranchNext to Bureti book Centr, Kisii BranchMocha Place 1st floor. and Nkubu BranchNext to Equity Bank.

SACCO REVIEW | 25

JULY, 2021

SACCO LEADER

Developing products is one thing and coming up with the rate is a another, so together with IRA, we have come up with rates and have shared for approval by IRA. This motivates our interaction and business acquisition with our customer. - Richard Nyakenogo.

Captains of Industry: A chat with CIC Group GM, Co-operatives Division Regional underwriter CIC Insurance Group, the market leader in providing insurance services to the co-operatives holds firm as the dominant player in the sector with significant control of the business.

What keeps the company on track?

The company’s Co-operatives Division General Manager Richard Nyakenogo shares with Malachi Motano of Sacco Review.

According to the General Manager, Co-operative sector is the company’s mainstay client hence the need to come up with relevant products and services to their needs and even at individual level.

“Co-operatives are our most valued shareholders, business partners and so we always look for ways and opportunities to strengthen our relationship for mutual benefit while contributing to the growth of the co-operative movement,” said Mr Nyakenogo.

The CIC Insurance Group, therefore targets savings and credit co-operative societies (Saccos) to increase their penetration, widen its market share and empower more people economically through its customer-centric services.

As a result CIC group has developed very competitive products that are indeed suitable for its customers.

“We do understand our customers’ needs through our interactions which have helped us meet their needs. There are Fosa co-operatives, marketing co-operatives, transport, housing and investment co-operatives and the agricultural based cooperatives. As a company we have looked at their desired needs ac-

CIC Group General Manager, Co-operatives Division, Richard Nyakenogo.

cording to their structured ways of doing business, and have developed very attractive products, that they desire to push their businesses including the membership that they have,” he said.

He says co-operatives sector has mobilised a combined savings of over $2.5 billion and employs over 300,000 people besides providing loans. "CIC notes that all these people require a secure and comfortable retirement. Through its Jipange Pension Plan, CIC Insurance Group will safeguard their future," he noted.

He says one thing the company has done very well is spreading its branch networks. Currently it has about 25 branches spread out strategically to meet all co-operative and Sacco’s leaders as well as members from various spheres.

“The company has branches from Kilifi, Mombasa all the way

to Busia, Kakamega and Bungoma on the far end, making sure that all members in those areas are served well. So that is the strategy for CIC business to enable any co-operator looking for insurance service to easily walk to those places and be served,” Group GM said.

He admits that Co-operatives play active role in development by investing in every sector of the economy to boost wealth creation, food security and employment generation and hence contribute to poverty alleviation.

"Insurance is appropriately designed to meet the needs of cooperatives and can contribute to the development of the sector," he stated, urging co-operative leaders to sensitise their members on insurance issues.

Nyakenogo encourages the CEOs or leaders of various co-operative societies to work on networking and take part in activities that will make them more visible in the society as this will open up lobbying opportunities for them.

The Saccos are organised into service and producer entities and cut across various sectors, more prominently in agriculture, marketing, banking, credit, diary, fishing and transport.

"CIC considers a co-operative model of insurance, which is more successful in giving services to lowincome population," he said, adding: "Our unique concern for ordinary Kenyans has given us exceptional appeal to many people."

The Sacco has developed very competitive rates for their clients in

Michael Ngétuk's rise to the top at Imarika Sacco

By Our writer

M

ichael Ngétuk is proud to associate with Imarisha Savings and Credit Co-operative Society (Sacco) as the longest serving director of the Sacco with a record of 32 continuous years from a founding treasurer to Vice-Chairman. He shares his long journey at the Sacco with Sacco Review.

“It was in 1977, after KNUT AGM when an interim committee of officials was given a mandate by teachers to initiate formation of the teachers Sacco, with guidance of the Co-operative Ministry to promote socio-economic status of teachers who were earning peanuts and could not afford to leave anything in a Bank account or even borrow a bank loan. The commercial banks saw teachers as non-starters,” he recalls.

Ngetuk was among the three founding directors who made aggressive campaigns to register the Sacco.

He was the Treasurer. The other

two officials were Mr Anthony Kimeto-Chairman and Joseph Laboso (late) as Hon secretary. They together with other six committee members, plus supervisory committee got the Sacco registered on May 8, 1978 officials once selected.

“Once our Sacco was given an okay, we visited schools, education officers’ meetings, Knut meetings to educate and recruit potential members, with only Sh5 and start share contribution from Sh20,” he says.

Together with his team they opened a register for members who filled deduction advice forms to be forwarded by the treasurer to Teachers Service Commission (TSC) to deduct contributions at the end of each month and remit the cheque to the Sacco for banking.

"The payroll deductions were then sent to our first ‘mabati’ office behind KNUT office, then at Tengecha Road in Kericho town. At times torrential rain disrupted us and registration of members who could not be served," he noted.

"However, we persevered with the challenges," he said, adding "Ini-

Michael Ngétuk tial loans were given to members after saving for six months, three times the shares."

“We used to take loan application forms to members in their schools, which they filled and we returned for approval by credit committee. The chairman, secretary and treasurer carried cash to loanees at their schools and some couldn’t believe. Thereafter many loan applications followed earnestly in the ensuing months and money was available”, he added.

conjunction with Insurance Regulatory Authority (IRA).

“Remember, developing products is one thing and coming up with the rate is a another, so together with IRA, we have come up with rates and have shared for approval by IRA. This motivates our interaction and business acquisition with our customer,” he said.

The Sacco has also desired the need of ensuring that the response towards claim settlement is done in a timely manner.

“Generally all the other products that we have in the company once they are sold, the clients and the clients are in a position of suffering a risk; we come very quickly to mitigate the risk. This is what has kept us going together with the movement because they know we keep our word as we promised when we were getting premiums from those organisations. So this excellent claim settlement is a key item for us,” he says.

300,000

Number of people the co-operatives sector employs.

$2.5 B

The combined savings co-operatives sector has mobilised.

In the year 1979, the members admired shares and loan progression, thereby increasing shares in thousands, in order to apply for loans to purchase personal farms in new settlements like Olenguruoni, Nakuru, Transmara, Uasin Gishu as well as educating their children up to university level. By then cheques were used, to avoid risks in disbursements of loans.

“As a treasurer, I stuck to loaning policy of three times the shares for one to get a loan. We organised for education meetings in Kericho, Bomet and Kapkatet in the large original Kericho District," he said.

"Membership grew tremendously by leaps and bounds as loans were cascaded to the members in good time. Towards the end of 1979, the Chairman Kimetto joined politics and became honourable Member of Parliament for Chepalungu constituency," he recalls.

“Our Sacco became even more vibrant and started posting substantial shares. I continued to be re-elected as Hon. Treasurer for several years probably because I used to keep my word and being timely in loan processing,” he notes.

He adds that sometimes he even went past mid-night processing loans which he then ferried on a mo-

To maintain or build customers' confidence, the company has also structured visits to clients on set targets, which has helped in learning their expectations and even challenges. The Company is fully embracing use of digital platforms for personal engagements with a view of unveiling products and services.

“As you know we may have clients who don’t even need to come to the offices, they can access our services through the platforms that we have. We have online services which can be accessed online from wherever they are, and they can pay their premiums as well, to CIC through the other online platforms that we have.

"During the ongoing Covid-19 pandemic, the group identified essential staff in the various departments at the subsidiaries that we have to work in the office but enabled the rest of the staff to work from home, in a manner that ensured that work was not interrupted. "This enabled the company to run normally," he said. The group also offers personalised services to clients through enhanced relationship management. “It is very cardinal because if we don’t understand every customer’s unique value propositions, it will be very difficult for us to serve them fairly since various clients have various ways they are being handled,” noted the Group GM,Co-operatives Division..

The company has also structured trainings for the co-operative leaders across the country which works very well in making them updated of the new products and services it offers. torcycle to members in their schools in a black bag which is today kept in the society’s archives.

He says members appreciated their products and services. They also started giving the members dividends from the 80s, a trend which has continued to date. The continued growth also earned him bigger positions at the Sacco “I became the vice chairman and the Chairman of Imarisha the society which had transformed from Kipsigis Teachers Sacco Ltd to the current Imarisha Sacco. I also became vice chairman and National Delegate of Rift Valley Province in Kenya Union Savings Credit Cooperative Ltd,” he says.

"In 1997, I left for Vancouver, Canada as a delegate WOCCU (World Council of Credit Unions) in company of other delegates from Kenya and bought the new technology that can today be seen at the Sacco offices and FOSA branches which has enabled our Imarisha Sacco to provide many products to our members and customers currently." he noted.

At the time of his exit, the Sacco had share capital of over Sh5 billion with branches in Bomet, Keringet, Kapkatet and Mulot with head office in Kericho.

26 | SACCO REVIEW

JULY, 2021

FOCUS ON JAMII SACCO ADM 99TH INTERNATIONAL CO-OPERATIVE DAY

The Board of Directors, Management and Staff of Jamii Sacco are pleased to be associated with the 99th Ushirika Day celebrations on July 3, 2021 whose theme is; Rebuild Better Together, as we mark milestones in the Cooperatives movement.

THEME: REBUILD BETTER TOGETHER

Jamii Sacco records growth despite Covid-19 impact Happy

By Malachi Motano As most businesses struggle under the Covid-19 pandemic, Jamii Sacco realised gross revenue of Sh597.69 million in 2020 financial year compared to Sh580.68 in 2019.

The Sacco also recorded a growth of 8.52 per cent in deposits and savings from Sh3.17 billion in 2019 to Sh3.44 billion, disbursing loans amounting to Sh1.94 billion.

Loan advances as at the end of 2020 financial year stood at Sh3.85 billion up from Sh3.58 billion, posting a 7.54 per cent growth, thanks to the interests on loans and advances grew to Sh556.90 million.

“I am very happy that despite increased loan net offs,

Eliud Chepkwony, Jamii Sacco CEO.

withdrawals on retirement, salary cuts, and job losses after many businesses closed due to the effects of Covid-19, most of our members were resilient and participated in building their savings and deposits hence this growth,” said Jamii Sacco National Chairperson Anne Ambwere.

She went on, “I am happy to note that the Sacco assets have grown to now over Sh4.67 billion up from Sh304.19 million in the year 2002 when I took over,” she said.

The outgoing Chairperson added that the Sacco has recorded growth in all other operational areas including, membership, loan book and returns to mem-

USHIRIKA DAY

Centrino Technologies Ltd and the post implementation challenges were taken up and addressed by the system provider.

“I wish to report that the system is working well, and the Sacco has managed to bring the records to date, including reconciliation; any member’s records with issues continue to be addressed as we go along. I want to Jamii Sacco National Chairperson, Anne Ambwere during ADM.

bers have continued to be recorded.

“I am also very happy that all this growth happened during my tenure with a lot of support from the board, supervisory committee, Chief executive officer, the management team and cooperation of the members, delegates and stakeholders," she added.

"As chairperson therefore I encourage all our members to build their savings and deposits to benefit from wealth creation, loan services and interests rebates”, she said.

She encouraged members to approach the Sacco for loans to meet their short- and long –term development goals.

As a result of the impressive growth, the Sacco paid to members with share capital over Sh10, 000 dividends at the rate of 12.50 per cent with any account below the threshold capitalised while interests on rebates paid out at the rate of 10 per cent.

While 2020 provided a tough economic environment for businesses, the chairperson is proud that her Sacco through the team efforts of the board of directors, supervisory committee (BOD/ SC) and the staff, the Sacco achieved several milestones and activities.

The Sacco implemented a new Information Communication Technology (ICT)-systemVanguard financials from M/S

Mr Wilberforce Chebet, National Vice Chairman.

Mr Ambrose Ogango, National Treasurer.

Jamii Sacco Delegates at a past ADM.

Cont next page...

Mr Harrison Katoni, National Secretary.

JULY, 2021

...from previous page encourage members to continue sharing their concerns with management for prompt action,” noted the chairperson.

She said the service provider is still working with the Sacco management team and users in addressing any technical issues which include training, assuring members the system has supported the Sacco to address perennial issues of nonrecovery, under-recovery including accounting for all revenues.

According to the Chairperson, the Vanguard Financials System will continue to serve members and the Sacco well into the future. Her board lays a lot of emphasis on using technology to deliver services to members.

The Sacco up scaled Jamii MCash Advance to provide more short term loans and advances. Members can now access the advances and commit to repaying the same as per the terms and conditions applicable.

On Education and training, the BoD, SC and management conducted the exercise under phase 1 in February 2020, covering Rift Valley, Western and Nyanza regions and were attended by a total of 1,074 members before suspending the program due to the outbreak of the pandemic.

“We continue to implement the education and training to build members capacity and receive feedback on areas that require improvements and clarifications in the first quarter of 2021. We have extended the same training to members in Mt. Kenya, Lower Eastern, Northern and North Eastern and Coast regions in February and March”, said Ms Ambwere.

For effective communication and idea sharing, the Sacco created a

SACCO REVIEW | 27

FOCUS ON JAMII SACCO ADM WhatsApp wall that brings together delegates and Sacco management to share issues relating to Sacco members, leaders and general operations.

“I am happy to note that we continue to improve in the interactions at every level. The board has designated officers who include the chairperson and the Chief Executive Officer to respond to all issues raised on the forum and advice delegates on any official issue that requires clarification or action,” stated Ms. Ambwere.

She noted that under the able leadership of the CEO Mr. Eliud Chepkwony who is now serving on contract after attaining retirement age of 60, the staff have continued to implement policies formulated by the board that provide better services to members.

“We retained Mr. Chepkwony on a two year contract to enable the Sacco to further benefit from his institutional memory and wide experience.

This has enabled him to implement critical programmes like development of a new strategic management plan (SMP) 2021-2025. The new SMP focuses on growth in membership, quality products and services, operational efficiency and institutional capacity building,” she added.

He has also been able to see the implementation of human resource manual and acquisition installation and operationalization of a new MISSystem as well as implementation of succession plan of CEO’s position and other senior critical positions in the Sacco and mentoring or coaching of senior managers to take up higher responsibilities.

In line with the Sacco policy, the Chairperson finally retires from the board having successfully served the Sacco for a long time as a director, delegate and a chairperson.

JAMII M-CASH THE NEW MSTAAFU THE THENEW NEWMSTAAFU MSTAAFU THABITI LOAN THABITI THABITILOAN LOAN

9# 7 *8 or 6# 0 *8 al

Di

Access your FOSA Account; Anywhere, Anytime Access FOSA Account; Anywhere, Anytime on youryour mobile phone 24/7 on: on your mobile phone 24/7 on:  Dial DialUSSD USSD *356# forfornon-smart phone holders. *897# or *806# non- smart phone holders  USSD *356# for non-smart phone holders.  Dial Download the Jamii M-Cash App on your This is a facility for retirees and it has the following features:  Download the Jamii M-Cash App on your This is a facility for retirees and it has the following features: Smartphone • Available to retiree members This is a facility for retirees and itonly has the following features: •The Available to must retiree members only holder.

Smartphone member be a FOSAonly Account •• Available to retiree members • The member must be a FOSA Account holder.

OUR JAMII M-CASH PLATFORM ALLOWS TO: The member must MUST their monthly pensionYOU through •• The member bechannel a FOSA Account holder.

• The member MUST channel their monthly pension through OUR JAMII M-CASH PLATFORM ALLOWS YOU TO:  Account balance Inquiry FOSA. • The member MUST channel their monthly pension through FOSA.  Account Mini statement  Inquiry • balance A copy ofInquiry the retirement letter and an official form electing the FOSA. •Jamii A copy of the retirement letter andpay-point an officialshould form electing the  Mini Mobile Money / Cash withdrawal SACCO FOSA as theletter pension be  statement Inquiry • A copy of the retirement and anpay-point official form electing the Jamii SACCO FOSA as the pension should be attached.  Mobile PIN Change  Money / Cash withdrawal Jamii SACCO FOSA as the pension pay-point should be attached.

• Maximum repayment period is 36 months.  Funds Transfer  PIN Change attached.

•Interest Maximum repayment periodoris 12% 36 months.

• rate is 1% per month per annum on a reducing  Funds Loan Application  Transfer • Maximum repayment period is 36 months.

•balance.

Interest rate is 1% per month or 12% per annum on a reducing  Loan LoanApplication Payoff  • Interest rate is 1% per month or 12% per annum on a reducing balance.

• Ability is computed based on 1/3 rule on member’s net  Utility Payments balance.  Loan Payoff •pension.

Ability is computed based on 1/3 rule on member’s net  Utility Lifestyle Services – Traffic • Ability is computed basedStatus on 1/3 rule on member’s net  Payments pension.

• Loans must be fully guaranteed by Deposits or Golden savings pension.

•account.

Loans must–beTraffic fully guaranteed

by Deposits or Golden savings  Lifestyle Services Status • Loans must be fully guaranteed by Deposits or Golden savings account. account.

Jamii Sacco Court t Mukenia Road t South ‘B’ Next to Mater Hospital tP.O.Box 57929-00200, Kenya t Telt+254 (020) 655 2477/48 +254 715 545Hospital / +254 704 914 143 TEL: 020 Road 7903200 Jamii Sacco Court Mukenia t South /‘B’ Next to961 Mater tP.O.Box 57929-00200, Kenya t tEmail: Tel +254info@jamiisacco.com (020) 655 2477/48 / +254 715 961 545 / +254 704 914 143 Jamii Sacco Court t Mukenia Road t South ‘B’ Next to Mater Hospital tEmail: info@jamiisacco.com 020 7903200 tP.O.Box 57929-00200, Kenya t Tel TEL: +254 (020) 655 2477/48 / +254 715 961 545 / +254 704 914 143 www.jamiisacco.com tEmail: info@jamiisacco.com www.jamiisacco.com

www.jamiisacco.com

BOARD OF DIRECTORS

`

Mr. Elijah Letangule, Director.

Harrison Tinga, Director.

Mr. Japson Gitonga, Director.

Mr. Jonathan Mengich, Director.

Henry Mayabi, Chairman, Supervisory.

Ms. Phanice Etemere, Director.

Mr. James Keretai, Director.

Vicky Maiyo, Secretary, Supervisory.

JULY, 2021

99TH INTERNATIONAL CO-OPERATIVE DAY

28 | SACCO REVIEW

THEME: REBUILD BETTER TOGETHER

The Board of Directors, Management and Staff of Shoppers Sacco are pleased to be associated with the 99th Ushirika Day celebrations on July 3, 2021 whose theme is; Rebuild Better Together, as we mark milestones in the Co-operatives movement.

Happy Ushirika Day OUR VISION To be the SACCO of Choice in Financial Service Delivery.

OUR MISSION To uplift the living standards of members through mobilization of savings and provision of marketdriven financial solutions.

CORE VALUES The following specific core values guide the society at all times:

Wilfred Aima, Chairman.

- Integrity - Courtesy - Transparency and accountability - Corporate social responsibility - Professionalism - Democratic governance - Equity

Lucy Watari , Chief Executive Officer.

BOARD MEMBERS

PRODUCTS James Mwangi, Vice Chairman.

Ronald Mose, Treasurer.

Francis Kimilu, Hon. Secretary.

FOSA Salary processing.

Overdraft facilities.

Standing order.

Biashara loan.

M-suluhu loan.

Express loan.

Sacco link ATM cards.

FOSA Loan.

David Thuku, Board Member

Stella Kungu, Board Member.

Simon Mathenge, Board Member.

SUPERVISORY COMMITTEE MEMBERS

MEMBER DEPOSITS Unwithdrawable deposits.

Share capital.

Ordinary savings account.

Group account.

Junior account.

Holiday account Fixed deposit account.

Pamella Adagala, Chairlady.

Kepha Sota , Member.

Benson Maina, Secretary.

BOSA Normal loan.

Emergency loan.

School fees loan.

Booster loan.

Product loan.

Benevolent fund.

Asset Finance.

Driving school loan.

EMERGENCY LOAN Maximum repayment period of 12 months.

Qualifying shares of up to 3 times.

At least 4 guarantors.

Interest rate 1% pm on reducing balance Waiting period less than 24 working hours.

Member must have contributed for at least 3 months.

SACCO REVIEW | 29

JULY, 2021

EASTERN MERU

Sh5m released to miraa sacco

By John Majau The County Government of Meru has allocated Sh5 million to Nyambene Miraa Sacco to be loaned out to more than 3800 members across Igembe and Tigania regions.

Deputy Governor Ntuchiu said the move is meant to cushion Miraa farmers from adverse effects of closure of their market in Somalia and the Covid-19 pandemic third wave.

The County government issued the cheque through the Meru Microfinance to Sacco of- Meru County Deputy Governor and Finance CECM Titus ficials who were led by Miraa Ntuchiu (3rd left) presents a dummy cheque for Sh5 Stakeholders Chairman Moses million to the officials of Nyambene Miraa Sacco at the county headquarters. Photo/John Majau

Embu County partners with ABSA Bank to boost women businesses

By Kamundia Muriithi Businesses run by women in Embu County will receive a boost through an initiative by the Absa Bank, the County Government of Embu, the Kenya National Chamber of Commerce and Industry Intercounty Mentorship forums.

The initiative will target women in business and sensitize them to tap the opportunities offered by the government and private financial institutions to boost their businesses.

ABSA Business Banking Director, Elizabeth Wasunna said ABSA Bank is facilitating women to access credit facilities.

She added that the bank is also providing necessary information and education on how to do business.

Wasunna said they are demystifying bank terminologies that scare away women from approaching banks for credit facilities.

“We are also advising women on how to restart closed businesses as well as how to save better in future,”

ABSA Business Banking Director, Elizabethe Wasunna speaks at a forum for Women in Business held in an Embu town hotel recently. Photo/Kamundia Muriithi

she said during a forum at Izaak Walton Hotel.

Embu County Government Ex-

ecutive Member in charge of Trade Dr. Joan Mwende said many women businesses in the county were adversely affected by the corona pandemic.

“In Embu we have laid down strategies that will help revive and sustain businesses, through waiving business licenses among other interventions. The waiver of licenses seeks to revive many businesses and also cushion others against collapsing,” she said.

Dr Mwende, however, noted that many women are shying away from taking loans to expand their businesses for fear of the mode of repayment.

She called on other investors in Embu to take the initiative of helping the women in the county to boost their businesses, adding that women businesses promote the entire society.

Our Lady Of Lourdes Mwea Hospital Director Sister Josephine Ndege who is one of the beneficiaries of the program said women play a key role in job creation and economic growth hence need to be supported.

Ntoachoro.

Ntuchiu said they will dispatch officers from Meru Microfinance to Muriri, Mikinduri, Maua and Laare markets to educate members on financial literacy and discipline.

He said the team will also do capacity building for them to access other financial facilities being offered by the County government including SME loans.

Ntuchiu said the SME loans will be given through the recently launched Meru County Post-COVID-19 Recovery Strategy for SMEs. He reiterated that the County government is working closely with President Uhuru Kenyatta and the National Government

through the Ministry of Trade, Industrialization and Enterprise Development to comprehensively address challenges in the Miraa market by seeking new markets in countries such as Djibouti and Mozambique among others.

He said they are also organizing the Meru County Miraa Conference where authorities such as KEBS, NACADA and others will be actively engaged by Miraa Stakeholders.

That will help lift any restrictions and regulations which could be hindering research and development of Miraa products for export such as Miraa gum, Miraa wine and Miraa sweets among others.

The Meru Miraa Conference has been postponed due to the ongoing upsurge of the third wave of Covid-19.

Makueni Hawkers Sacco membership grows

By Correspondent Membership for the Makueni County Hawkers Sacco has increased to over 2,000 from 1,500 when the society was registered in 2015.

The Sacco which was registered in February, 2015 and awarded two lorries as seed capital by the Makueni County Government to ease transportation of their merchandise and to enhance wealth creation has since recorded tremendous growth.

With a monthly savings of at least Sh120, 000 a month, and a membership of 2,051 currently, the Sacco has acquired a new lorry, and aims at acquiring three more such that each sub-county chapter has its own.

The new lorry was unveiled recently by Governor Kivutha Kibwana, who pledged his government’s support in the acquisition of the planned trucks.

The Sacco, which has also ventured into loaning its members, had a loan portfolio of Sh4.6 million as of December 30th 2018 audit report.

The Sacco, according to its leadership, also intends to venture into real estate development and water hawking through purchase of a water bowser as ways of business diversification.

In 2015, the Makueni County Government spearheaded the formation of the Makueni Hawkers Sacco bringing together all hawkers based in the county.

Makueni Hawkers Sacco lorry

KITUI

Bestrock Sacco to begin offering front office services

By Bonface Mulu Bestrock Savings and Credit Co-operative Society will begin offering Front Office Service Activities (FOSA) from this month.

This was revealed by Sacco Board Chairman, Francis Muli Kithae during the society’s 10th Annual General Meeting (AGM) held at the Kitui Multipurpose Development Training Institute.

“We believe after meeting these back office requirements, it would be much easier to get front office service activities (FOSA) licence.

We expect to have this done by June this year”, said the chairman.

The society was registered as Kitui Biashara Savings and Credit Co-operative Society Limited in

1999 covering the then larger Kitui District, but later rebranded and changed its name to the Bestrock Savings and Credit Co-operative Society Limited on February 20, 2013.

It got an expanded area of operation covering the lower eastern Kenya region that comprises the Kitui, Machakos and Makueni counties.

The society caters for savings and credit needs of the business people, salaried employees, hawkers, Jua kali artisans and small and medium entrepreneurs.

During the function, the society’s management committee and supervisory committee elections were conducted where board members Monna Joel, Hillary Makola,

The elections were officially presided over by an official from the Kitui County Trade, Investments and Co-operatives Development Ministry Alice Zakayo.

The AGM was graced by the Kenya Union of Savings and Credit Co-operatives Society Limited Training Manager Elijah Mulwa as the chief guest.

He said that he was inspired by the spirited members’ effort toward the growth of their Sacco.

The Sacco grew its loan portfolio from Sh137, 765,708 to in Bestrock Sacco Board of Directors and Management during 2019 to Sh149, 728,168 in 2020.

The Sacco also grew its total the recent AGM in Kitui. Photo/Bonface Mulu deposits to Sh141,982,259 from Sh123,393,076 while share capiJustin M. Kivunzi and James Ngene elected unopposed to continue in tal grew from Sh18, 072,571 to were retiring but were, however, re- the society’s leadership.

Sh18,715,775.

30 | SACCO REVIEW

99TH INTERNATIONAL CO-OPERATIVE DAY

JULY, 2021

JULY, 2021

SACCO REVIEW | 31

SPECIAL FEATURE

How I rose from rags to riches - Matatu Sacco director

By Fredrick Odiero He served in various capacities as one of the dreaded youths and party operative for many years. Some of the roles he undertook included gathering intelligence information as an advance team before feeding proponents with the same information before they could finally strike at enemy positions.

But Tom Obengo who is today a director in one of the leading transport companies in Western Kenya regrets working as a party youth and loyalist for many years.

Obengo started working as a youth and party diehard in 1997 and worked tirelessly for some politicians.

The agile youth who is today a director at Molo Lines Transport Services with over 30 employees says that he and other colleagues went on very dangerous missions in many parts of the country as they pursued and protected the interests of politicians.

He vividly remembers an incident in 1997 when one politician declared his interest in that year's general election and aggressive youths who were loyal to a rival party stormed a rally at the Jomo Kenyatta Sports Grounds in a spirited bid to disrupt it. He says that their members quickly moved in and in the process vanquished the enemy.

Obengo who is today a staunch church member says that two youths who were allied to rival aspirant died in the process while scores sustained serious injuries.

He said as events un-

folded the politician was closely monitoring the events from a balcony of a hotel. Obengo says he also remembers when they went on a mission at Chwele in Bungoma district at the time.

He narrates that campaigns to change the constitution had reached fever pitch and one of the party's high command was keen on carrying the day.

He said that many youths in Bungoma were hurt during the bloody skirmishes.

Obengo explained that he went as an advance team on several occasions after which his colleagues later struck at the enemy. The former youth leader says he used to command a group of over 20 youths on several missions before retreating back to base.

The matatu sacco director went on to say that he set on the same mission during campaigns in 2002. He says that he was one of the people who were tasked with protecting one politician throughout the campaign period.

Obengo was earlier assigned to a former Member of Parliament for about two years.

Obengo who is today a very bitter man over certain party bigwigs says that they were never considered for employment by some politi-

Tom Obengo (left) with some of his directors. Photo/Fredrick Odiero

cians.

"Some told us that things have changed and advised us to understand the situation until things settle,” said Obengo during the interview.

He is, however, grateful to former Kisumu Mayor Sam Okello who he said recruited a number of party youths into Town Hall.

He revealed that almost 20 youths are engaged at the Kisumu County Government.

Obengo added that the same predicament befell

Tom Obengo, a Director Mololine with one of the employees.

Photo/Fredrick Odiero

He intends to open other branches across the country.

He hails from Karachuonyo in Homa Bay County and was borne in Mombasa in 1969 and went to local schools before pursuing a course in refrigeration repair and installation.

He has worked in several companies such as Equator Bottlers in Kisumu and the area Kenya Breweries plant.

But how did he finally land in He served in various capacities as one of the dreaded youths and party operative for many years

Tom Obengo The agile youth who is today a director at Molo Lines Transport Services with over 30 employees many youths who have resorted to other forms of earning a living.

"One of my former retired comrades is now mentally deranged while one is employed at a local butchery,” he laments.

Obengo is, however, proud that he has managed to employ six of them at Molo Line Transport Services where he remits statutory deductions for them as well as medical scheme for them.

Obengo says he controls some 320 fleets of vehicles in many parts of Western Kenya with the headquarters in Kisumu.

The political gun for hire turned businessman takes care of a number of orphans as a way of giving back to the community.

the transport sector?

Obengo narrates that a former nominated councillor at the defunct Kisumu Municipal Council Grace Wafula approached him and informed him that Molo Line Company had a vacancy for one person as a clerk.

“I did not hesitate and immediately took over the offer. At first most people thought he had gone insane since he was leaving a lucrative job at Kenya Breweries in favour of being a 'Tout' at the Kisumu bus terminus.

He ignored his critics and continued working at Mololine and was soon elevated

to a supervisor and inspector at the company due to his diligence at work.

The director did not forget his party saying he would provide transport whenever need arose. He says that he managed to use his reputation as a party youth to make inroads at the Kisumu bus terminus which, he notes, is full of hardcore individuals.

He says that the most crucial moment was during the 2007/ 2008 post-election violence where he used his background as a party youth and closeness to a politician to ensure that all their vehicles travelled safely to and from many parts of the country.

Obengo noted that when the time for a split came he opted to remain back in Mololine and negotiated to be a director in the company.

"I told my colleague that both of us cannot leave to go and start a new company," noted Obengo. He says that he inherited a debt of close to 4 million shillings which he later settled. Obengo says that he has managed to recruit many reputable people into his Sacco, some of whom are lawyers, members of the Kenya Defense Forces and prominent businessmen.

Obengo says that he sponsors at least three widows every year by building for them houses with corrugated roofs.

The political gun for hire turned businessman takes care of a number of orphans as a way of giving back to the community.

"The community has all along been branded and this has made us lose a lot in terms of employment in the civil service and access to credit,” he said.

JULY, 2021

32 | SACCO REVIEW

RIFT VALLEY

Sh85m Baringo Coffee factory commissioned

Baringo Governor Stanley Kiptis, Korean Coffee investor Cha Bo-Yong and Laikipia Governor Nderitu Muriithi taste brewed coffee during the launch of the mill in Katimok, Baringo North .Photo/Talarus Chesang

By Talarus Chesang The Sh85 million Baringo Cha Coffee factory has been commissioned in a 2.5 acre Tugen hills farm in Baringo North.

There was some tussle with the location of the milling plant; some stakeholders proposed Baringo North while others wanted it taken to Eldama-Ravine subcounty.

Baringo Governor Stanley Kiptis said they had been holding some series of bilateral talks with the Korean government towards establishment of the coffee mill since 2013.

Kiptis however said his administration handed Sh15million towards installation of the milling plant. Korean investor Reverend Eng. Cha Bo-Yong gave Sh70 mil-

lion, totaling Sh85m.

“The Korean investor chose Baringo coffee because of its organic and natural sweet taste, as a result of temperatures and favorable soil” he said.

The county boss said the factory will help ease the farmers cost of transportation of their produce to Kiambu, Uasin-Gishu and Kericho counties.

Head of Coffee Directorate Kenya Isabella Nkonge handed the operation license immediately to the mill saying it has been assessed and fully certified.

“It is one among the best quality coffee mills we have in Kenya” she said.

She advised the county coffee steering committee to set up a comprehensive strategic plan to enhance and sustain coffee produc-

tion and milling.

“Our core target is to ensure quality and see to it that farmers work and get money in their pockets”, Nkonge said.

In his speech Governor Kiptis further noted the mill speed grinds up to 1.2 metric tons of coffee per hour.

“Currently Baringo farmers produce only an average of 100 tonnes of coffee beans annually which can be grinded by the mill in record two weeks then it gets finished”, he said.

He appealed to the coffee farmers from across the country to consider bringing their coffee beans saying they will offer the best market prices.

Kiptis further promised to donate some 200,000 coffee seedlings and fertilizer to farmers so as to increase productivity.

The Korean investor on the other hand pledged to purchase some 100 pulping machines.

Governor Kiptis appealed to President Uhuru Kenyatta to assist Baringo farmers waive Sh110 million accrued loans at the Agricultural Finance Corporation (AFC).

“This has been a dominant challenge to our coffee farmers since some of us were born to date”, he said.

Laikipia Governor Nderitu however lauded the investor and the county government of Baringo for establishing the coffee mill saying his farmers will no longer travel all the way to Kirinyaga.

The investor Cha Bo-Yong said he was moved by the humility and the loving people of Baringo.

Form saccos, coffee farmers advised

By Our Reporter Coffee farmers in Baringo have been asked to form cooperative saccos for economic empowerment.

Wildlife Principal Secretary (PS) Prof. Fred Segor said it is through strong societies that the farmers may be able to save and borrow loans to improve and manage their coffee farms.

He was speaking during the launch of mega Sh85 million coffee factory at Katimok Forest in Ossen-Kabartonjo Ward, Baringo North Sub-county recently.

In attendance during the opening ceremony of the coffee factory were Laikipia Governor Nderitu Muriithi and the Head of Coffee Directorate Kenya Isabella Nkonge.

“The cooperative societies shall also ensure the coffee farmers their financial security” Segor said, calling on the county government to support them in all aspects.

The factory was installed courtesy of the county govern-

UASIN GISHU

Noble Sacco donates Sh300,000 for auditing of small saccos

By Wasike Elvis Noble Sacco recently donated Sh300, 000 that will be used to help small Saccos finance auditing of their books.

This was during a courtesy call

by Noble Sacco top management to the Uasin Gishu Governor Jackson Mandago recently.

Speaking after the meeting, Uasin Gishu Governor Jackson Mandago described Noble Sacco as one of the biggest partners in the cooperatives movement in the county.

“The Sacco has come not just for a courtesy call but to donate Sh300, 000 that will be used to support small cooperatives that are not able to raise audit fees. The Sacco’s finances are a key element that the county is keen on,” he said.

Noble Sacco is now the best Sacco in the region with a membership of over 15,000 members.

“In the county, we’re serious about governance as in the past, poor management, lack of skills,

Uasin Gishu Governor Jackson Mandago with The Noble Sacco Board members. Photo/Elvis Wasike

KERICHO

Imarisha KEBO Investment generates Sh42m rental income

By Benedict Ng’etich

Head of Coffee Directorate Kenya Isabella Nkonge handing over the operation licence to Korean Coffee investor Cha Bo-Yong and Baringo Governor Stanley Kiptis. Photo/Our Reporter ment of Baringo and the Korean Best Friends.

Prof. Segor further urged the farmers to grow more coffee trees to ensure sufficient raw materials to run the factory.

He appealed to the county

and failure to audit the finances had affected the sector,” he said.

“Because Noble Sacco believes in the cooperative movement, including cooperation, they have decided to have the small Sacco’s have proper books of account,” Mandago added.

The Governor further revealed that Noble Sacco has on several occasions supported the county during the Ushirika Days as well as Eldoret City Marathon whose theme is ‘Climate Action’.

The Noble Sacco chairman David Rono applauded governor Mandago’s administration for giving them a conducive working environment which has made the sacco to grow and be the best in the region.

“We want to thank our governor for his leadership which has seen us grow to a membership of over 15,000 members and as I am talking we are the best and giant Sacco in the region,” he said.

He said the donations were part of their CSR.

The Imarisha KEBO Investment Cooperative Society Limited received a total income of Sh42 million as rent in 2020.

This was a decrease from Sh 61,428,167 which was raised as at the end of the financial year 2019.

The investment arm of Imarisha Sacco had an accrued rent of Sh12. 8 million which was a decrease from Sh28.8 million realised in 2019.

In a breakdown, Imarisha KEBO Plaza generated Sh21, 244,166.90 as rent paid and Sh11,

government to consider hiring some more agricultural extension officers to train farmers on the basic modern farming techniques and diseases control.

The towering Kebo Plaza in Kericho town.

513,436.76 as accrued rent in 2020. In 2019 the Plaza received Sh22, 683,505.98 as received rent while it had Sh26, 049,406.90 as accrued rent.

Kericho Building rent paid amounted to Sh6, 765,963.70 in 2020 while in 2019 it managed to get Sh7, 169,209.55.

Rent paid for the Bomet Building amounted to Sh1, 199,394.31 in 2020 which was a decrease from Sh2, 776,851.02 in 2019.

Rent accrued was Sh1.3 million. In 2019 rent paid was Sh2.77 million, while rent accrued was Sh2.66 million.

During the Sacco’s Annual Delegates Meeting (ADM), the Chairman Mr. Mathew Ruto told delegates that the business of the society had been negatively affected by Covid-19 Pandemic.

In his address, he disclosed that they will pay dividends to KEBO shareholders at the rate of 3.06 per cent which amounted to Sh14.2 million. Last Financial Year (2019) KEBO members received Sh23 million as dividends.

SACCO REVIEW | 33

JULY, 2021

RIFT VALLEY

NYANZA

KAJIADO

Lenku urged to waive business tax should be suspended.

“The curfew has adversely affected me because I used to make a lot Business people in Kajiado of money from late buyers County have urged the county arriving from work in town government to cushion them who purchase fruits to eat at from Covid-19 pandemic effects. home,' he said.

The traders now want GovAnother trader Joseph ernor Joseph Ole Lenku to waive Okello, a fish seller said he taxes and levies for three months. gets his supplies of fresh They said the recent strinfish from Kisumu and so his gent lock-down measures by business almost collapsed President Uhuru Kenyatta caught during the lockdown. them by surprise when they had Hospitality Association not recovered from losses inof Kenya coordinator Clifcurred during the first lockdown. ford Wanjala from Kajiado The president had ordered an North Sub County said the 8pm to 4am curfew and banned county should come up movement into and out of Machwith a stimulus package to akos, Nairobi, Kiambu, Kajiado Kajiado County Governor Joseph ole Lenku (left) issues an occupancy agreement letter to Maasai beads women support people in hospitaland Nakuru counties. ity sector who are now jobKiserian market chairman group on May 25th 2021. Photo/Abdi Hussein less.

Muthama Ganga said traders’ The association held profits dropped by more than cushioned their business people not getting services from the protests in Nairobi CBD dehalf and they are now struggling from the pandemic,” said Muth- county government and they had ama. also been affected by Covid-19 manding president Uhuru to ease to put food on the table. the lockdown measures.

Nkaimurunya market chair- pandemic measures.

“Sh30 daily charges at the The president had ordered all A fruit vendor at the Nkaimmarket should be suspended for man James Gachie had earlier restaurants to serve food to cussome time because other coun- directed traders not to pay market urunya market Wayne Gitau also tomers on a take-away basis and ties such as Machakos have fees, arguing that traders were argued that the Sh30 daily tax ordered closure of bars.

By Obegi Malack and Collins Ochieng’

Govt keen to empower youth economically, says Commissioner

By Mosawe Naomi The Kisumu County Deputy Commissioner Kibet Kibeon has reiterated that the government is ready to empower youths with skills that will enable them realize their full potential and in turn drive the attainment of development objectives set out in Kenya’s Vision 2030.

Kibeon said Kenya has greatly focused on youth empowerment to strengthen its economic base adding, “The government’s main objective is to empower the youth in order to nurture a value driven generation of patriotic youth with a heart for volunteerism and transformative leadership.”

Speaking in Kisumu Town, Kibeon encouraged the young generation to seek self-employment owing to slim job opportunities.

“The creation of job opportunities will play a big role for youths, especially for being a place where they can earn a decent and sustainable livehoods”, he said.

He added that the policy is keen on the creation of sustainable decent jobs and income generating activities for all youth especially those at the grassroots through the County Government structures.

Trans Elite Sacco once beset by challenges bounces back

By Isaac Biwott

The Trans Elite County Teacher’s Savings and Credit Co-operative Society in Nandi County is back to its former glory after settling an off-shore loan owed to Oikocredit International.

The International microfinance company of the Netherlands had been approached by the then Nandi teachers Sacco seeking a loan of Sh65 million in a bid to boost its credit base to members.

Oikocredit International approved the “soft loan” proposal as the society management then under the chairmanship of the Henry Birgen (deceased) handed them with Sacco building title deed as collateral.

According to the society proposal, the Oikocredit International loan attracted a one per cent interest per annum and planned to loan their members at a rate of 14 per cent which would have earned the society 13 per cent per annum.

The lender approved Sh65 million from the proposed Sh96.5 million with the society raising Sh5 million as their contribution to the loan kitty.

Mr Ezekiel Sawe, Trans Elite Sacco CEO. Where we have come from is hard to explain and we must thank the management team, society members and the employees for the sacrifices they have made to ensure we are back and on the road to reclaiming the lost glory

The money was quickly wired to the society’s account in mid-2004.

However, after the acquisition of the loan the Sacco reportedly almost went under in 2005 after it was beset with challenges.

The society had failed to meet its regular loan demands by teachers .

Subsequent audit from

Sacco Societies Regulatory Authority (SASRA) exposed management challenges which raised concern among the then 4,000 members of the society resulting in withdrawals of shares and diversion of pay points.

This denied the society the highly needed contribution while the front office services department remained a ghost part of the Sacco.

Having exhausted all avenues in a bid to have the government help them by either taking over the Oikocredit International loan or find another method of settlement it remains for members to repay.

Under the guidance of a team chaired by lay Cannon Alfred Ng’etuny and the General Manager Ezekiel Sawe, the Sacco finally decided to repay the loan and save the society’s building from being auctioned.

When the loan was acquired, the agreement was to be repaid within a period of 5 years and which would be been cleared by 2010.

Between 2005 and 2016, the Sacco ended paying about Sh100 million being interest and penalty.

“We completed and

cleared the loan in 2020 and have collected our title and the Sacco is now financially sound,” Ng’etuny said.

The Sacco which has since been renamed as TransElite County Sacco is back to its former position and is headed to becoming one of the leading teachers Sacco in the region.

The membership has equally grown from 1500 at the time the current committee took over to 6000, an indication of confidence.

“Where we have come from is hard to explain and we must thank the management team, society members and the employees for the

Trans Elite Sacco building.

sacrifices they have made to ensure we are back and on the road to reclaiming the lost glory,” Sammy Sawe said.

“As teachers’ representatives, we urge all teachers who left and joined commercial banks to come back and support our society,” Serem said.

Trouble with the teachers Sacco started when they started various investments and acquisition of properties across the region.

They had bought thousands of acres at former EATEC farms in Uasin-Gishu which they hoped would be sold to the members..

99TH INTERNATIONAL CO-OPERATIVE DAY

34 | SACCO REVIEW

JULY, 2021

THEME: REBUILD BETTER TOGETHER

The Board of Directors, Management and Staff of Kwetu Sacco are pleased to be associated with the 99th Ushirika Day celebrations on July 3, 2021 whose theme is; Rebuild Better Together, as we mark milestones in the Co-operatives movement.

Happy Ushirika Day

WHY CHOOSE US

We are a top-ranking financial service provider satisfying the diverse customers with a mission to provide financial services through savings, affordable loans, and excellent services to the satisfaction of our diverse customers.

Julius Nzyoka, Chairman.

OUR VISION A top-ranking financial service provider satisfying the diverse customers.

OUR MISSION To provide financial services through savings, affordable loans, and excellent services to the satisfaction of our diverse customers

OUR CORE VALUES (PITCH) Professionalism, Integrity,Teamwork, Commitment and Humility

Dr. Stanley M. Kyelenzi, CEO.

OUR OBJECTIVES To expand the portfolio, and consequently increase the surplus of the SACCO

NYANZA

Hope for Siaya cotton farmers as ginnery set for revival

By Malachi Motano

Uyoma Farmers’ Cooperative Society (UFCS) has secured Sh10 million grant from the County government of Siaya to facilitate repairing of Madiany Cotton Ginnery in Rarieda sub-county.

The ginnery stopped operations about seven years ago with more than 3500 farmers left with nowhere to sell their produce.

Since then many farmers have abandoned cotton farming, leaving the few who stuck to the crop forced to ferry their produce all the way to Makueni County for processing.

According to Mathews Otieno, the Uyoma farmers’ Cooperative Society chairman the machines at the ginnery are expected to start roaring in few weeks’ time.

He said the introduction of BT cotton saw a number of cotton farmers who had acquit the exercise re-

Rarieda MP Otieno Amolo during a tour of Madiany Cotton Ginnery.

turn to growing the crop which led to the need to revive the cotton ginnery.

“We have managed to register about 2500 farmers who have been given BT cotton seeds with the

promise that there will be a ready market for their produce. They had been assured that they will not have to take their produce all the way to Makueni,” Otieno said.

He noted that part of the money

the group secured from the County will be used to acquire one ginning machine complete with conveyer belt, pre-cleaner, trolley, oil filter, and power back-ups. He said since the money was wired directly to the contractor and the replacement of the old wiring system has already begun.

The farmers were each given 2kg of BT cotton seeds ahead of their planting season.

Wilson Haya from Chamakwaro is among who held onto cotton farming despite of the collapse of Madiany Ginnery and the many challenges that came with it.

“Before the collapse of the ginnery I had about five acres under coton. It was my main source of income that even with the collapse of the ginnery; I did not stop cotton farming. I only reduced the land under cotton to 2 acres, and used the rest of the land to grow other crops.

With the revival of the ginnery, I will again expand my cotton farming,” he said.

UFCS Chairman said farmers would harvest up to 800 kg of seed cotton from an acre that would produce about 300kg of cotton lint.

Simon Adele, an extension officer Mahyo, BT cotton producer said

farmers will be able to get up to 1300 kilos from an acre. The new variety of cotton is said to be resistant to Bollworm and is high yielding.

“Today, a kilo of the seed goes for between Sh48 and Sh54. This means farmers will be able to get money from cotton farming,” he said.

Zedekiah Adul, the secretary of Uyoma farmers’ co-operative society said many farmers are already seeking extension services, as they plan to go back to cotton farming.

“We hope production will be high so that we create employment for the many youths who are migrating to the urban centres,” he said.

Rarieda MP Otiende Amolo (second right) during a meeting to encourage cotton growing in the constituency.

JULY, 2021

99TH INTERNATIONAL CO-OPERATIVE DAY

SACCO REVIEW | 35

THEME: REBUILD BETTER TOGETHER

The Board of Directors, Management and Staff of Imarika Sacco are pleased to be associated with the 99th Ushirika Day celebrations on July 3, 2021 whose theme is; Rebuild Better Together, as we mark milestones in the Co-operatives movement.

Imarika Sacco transforms lives in the Coast Region

Happy USHIRIKA DAY

From a hundred to over 100,000 members in 46 years, Imarika Sacco prides in being the largest Sacco along the coastal region.

By Malachi Motano From a hundred to over 100,000 members in 46 years, Imarika Sacco prides as the largest Sacco along the coastal region. Sacco review Newspaper shares the transformational journey of a thousand mile the Sacco has walked since its inception Testimonies Rachel Chengo is a proud member of Imarika Sacco. She is a teacher who through her savings in the Sacco in partnership with her husband, has managed to invest in health care in Malindi town, a facility which started in 2016 known as Ebenezer health care services, and Nursing home.

“Niko kwa idara ya elimu niliyoingia miaka ya tisini na kujiunga na Imarrika Sacco na nikapatana na mume wangu , tukawa na maono ya hii hospitali……I am in the teaching division which I started way back in the 90s, joined Imarika Sacco where I met my husband, and had a vision

Rachael Chengo, Founder Ebenezer Health Services. for a hospital,” she begins her story.

She confesses that from a humble beginning and through loans from Imarika Sacco they have been expanding the facility steadily.

“We took a loan of six million shillings from Imarika Sacco to put up a theatre and build a story building of four floors, and a 20 bed capacity. We offer both inpatient and outpatient services,” she says.

Rachel who is in charge of administrations at the facility says on a busy day, the nursing homes can serve as many as 100 patients, a suc-

Imarika Sacco CEO, Mr George Yongo.

cess she attributes to Imarika Sacco.

“Bila Imarika Sacco, ningekuwa tu mwalimu lakini kwasababu ya Imarika, saa hii nimekuwa na business kubwa. Hapa Malindi, tunatajwa…… “We are it not for Imarika Sacco, I could still be teaching but because of the Sacco, today I have a big business that is recognised here in Malindi,” she says.

Rachel is among the over 100,000 members of Imarika Sacco whose livelihood have improved because of the Sacco whose headquarter is at Imarika plaza, one of the key investments of the Sacco. It is the tallest building in Kiliifi town.

Francis Kalu the Core founder of Talea teachers college is a teacher by profession who joined Imarika Sacco in 1978.

“After my retirement in 2007, we started a teachers college called Talea Teachers College on rented premises however, two years later, we bought land and begun construction. That is the time we applied for a loan from Imarika Sacco which gave us our first loan of half a million (Kshs. 500, 000) which enabled us to put up two classrooms. To date, we have got from the Sacco a total of Ksh 2.5 million to bring the college to this present position The college offers early childhood and diploma courses. It started with 57 students but now has a capacity of 200 students every year.

Over 2000 students have graduated from the college, since its inception.

“We are trying to improve the college as it is required by the ministry of education because of the

Mr Renson Ndoro, Imarika Sacco Board Chairman. changes in the curriculum. We say thanks to Imarika Sacco for standing with us.

Elsewhere in Kilifi, the owners of this Milele funeral home built it out of savings and loans from Imarika Sacco. The owners started by offering transport services, and management of funerals way back in 2014, before venturing into funeral home services.

“When it started operations, our projection was about Kshs. 25 to Ksh 35 million just to ensure that the facility here is complete. Imarika Sacco came in hand to help us actualise that. The Sacco offered us a loan

‘

We started as Malindi teachers but due to expansion of our services, we had to move to the larger Kilifi district and the name changed to Kilifi teachers Sacco. In 1990, we had about 700 members when we rebranded in 2013 to Imarika Sacco.

- Imarika Sacco Chairman Renson Ndoro recalls.

Director Co-operatives Banking at Co-operative Bank, Vincent Marangu. facility which runs up to almost 80 percent of the entire costing of this home,” says Steven Sifa, one of the founders of the home.

Currently known as Milele Funeral, burial and benevolent services, is among the biggest standalone funeral home at the coast.

“As accompany we have benefited a lot from this facility, kama inavyosemwa ‘umoja ni Nguvu-unity is strength,’ as Milele funeral services tumefaidika zaidi (we have gained so much) in na Ushirika.

Profile Imarika DT Sacco Society Ltd (formerly Kilifi Teachers Sacco Society Ltd) was officially registered in 1974 having being founded by 11 primary school teachers. It was primarily a teacher based Sacco drawing its membership mainly from Primary school teachers.

According to the Sacco Chief Executive Officer George Yongo, the objective then just as it is even today was to uplift the socio-economic lives of its members by providing affordable savings and credit products and services.

“We started as Malindi teachers but due to expansion of our services, we had to move to the larger Kilifi district and the name changed to Kilifi teachers Sacco. In 1990, we had about 700 members when we rebranded to 2013 to Imarika Sacco,” Imarika Sacco Chairman Renson Ndoro recalls.

Originally as teachers Sacco only had members from the teaching profession, employees of the teach-

ers service commission until when it opened the common bond.

“We opened the common bond in 1998, when we also started computerizing the operations. This meant that it was now allowing nonteacher members to join the Sacco.

The Sacco also opened its Front Office Service Activity (FOSA) the same year. The Sacco went ahead to rebrand in 2013 and adopted the name Imarika Sacco whose aim was to tap into the wider potential market in its operating areas,” says the CEO. He says opening the common bond has enabled thousands other members to join the Sacco ranging from private firms such as security firms, hotels, EPZ, private schools and colleges, individual business people and even groups.

“We expanded starting with employees from other government ministries. In the year 2003 we again expanded membership to include even the self-employed, businessmen, individually and even group membership,” Former CEO Daniel Masha added.

“At the time of re-branding, the Sacco had approximately 35,000 members with an asset base of Sh3.5 billion. By the end of December 2020, the Sacco had over 100,000 members with an asset base of Sh9.3 billion,” says Yongo.

The Sacco today has seven branches, widely spread in Kilifi, Tana River and Kwale counties.

The branches include Malindi, Mariakani, Garsen, Ukunda, Mtwapa and Bamba with plans to open more branches in Lamu and Mombasa.

“Kwa hakika hii Sacco imeimarisha watu hapa kilifi Kaunti.

Tumeona matunda ya Ushirika na bado tunaomba kuingiza members Zaidi katika Imarika Sacco ndiposa tuendelee pamoja…… “Indeed this Sacco has improved people’s livelihood here in Kilifi County. We’ve witnessed the fruits of unity even though we still need to recruit mote to enable us grow together,” Rachel Chengo.

The Sacco Chairman says Kilifi is a poverty stricken area and the coming of Imarika Sacco has really improved the economic value of these people around.

“It has been able to inculcate the saving culture among its mem

..Cont next page

JULY, 2021

36 | SACCO REVIEW AUGUST, 2020

...from previous page bers. As at March 31, 2021, our total assets stood at Sh9.7 billion, our total deposits from members stood at Sh6.5 billion while our total loan book stood at Sh7. 5 billion The Sacco has enabled our members to build their wealth by providing them with an avenue for saving through our diversified savings product range.

“Our members through our loans have also been able to build their own houses, set up and improved their businesses, educated themselves, their children and dependants, and addressed their medical needs. We also have the Imarika foundation which is our CSR vehicle that has touched thousands of people through the provision of eye clinics, anti-jigger campaigns, free education to the underprivileged children and even providing assistance to many during disasters,” says Yongo.

Banking partner Cooperative bank of Kenya remains Imarika Sacco top most financial partner. Masha says all Imarika Sacco bank accounts even at the branches are at Cooperative bank.

The Sacco normally receive our major check offs from the TSC members and also the payrolls for salaries.

All other employers where Imarika Sacco members are, normally send those payrolls and check offs through cooperative banks.

In the year 2007, Imarika Sacco partnered with cooperative bank of Kenya, to offer a Sacco link Visa branded ATM cards to members. The Sacco has now acquired an instant ATM Card issuance machine through the partnership which enables the Sacco to produce ATM cards instantly upon member’s application.

“We also bank with Kenya Commercial bank (KCB). Therefore, any-

one who has a vision to grow his or her wealth, Imarika DT Sacco is the place to be for we provide a holistic array of products and services to grow you both socially and financially,” Yongo says.

“Nimekuja huku kwa mambo mengine,lakini pahali pengine nikaitishwa ATM card yenye sikuwa nayo.

Nikajaza application na Kadi ikatoka hapo hapo. Kuenda kwa akaunti yangu, nikapata pesa na sasa ninarah a, hii kadi naamini itanisaidia sana. Kutoka leo sitawahi piga foleni nikienda kutoa pesa………. “I came here for other things but at some point, I was asked for the ATM card which i did not have. I then filled the application form for the card and I got it instantly. Visiting my account, I got the money. This card I believe will help me so much in fact I won’t ever line when I go to withdraw money,” Elvina Kahindi, a member confesses.

Besides offering convenience to members, the ATM transaction fee is an additional revenue stream to the Sacco. The Sacco Chairman says with the coop bank card, one can withdraw money while in the country or beyond.

Vincent Marangu, the director in charge of the cooperative division at the Cooperatives bank confirms how they enjoy mutual and cordial partnership with Imarika Sacco.

“Through Our Co-op consultant and insurance agency (Bancassurance) that does training and advisory services, we have been able to train the staff, board and members at Imarika Sacco,” says Marangu.

Through the trainings, he says the bank has enhanced governance at the Sacco, supported the Sacco to make their processes and operations more efficient. Co-op bank has been able to train Imarika Sacco tellers on bank operations to handle cash transactions and many other aspects of banking.

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NYANZA

Jumuisha Sacco intermediary partners to receive Sh30m funding

By Erick Nyayiera

Jumuisha Sacco in Siaya County is the official intermediary of the Uwezo Fund in Bondo Constituency.

Bondo Constituency Member Of Parliament Dr. Gideon Ochanda and his Uwezo Fund committee signed an agreement that will see the Sacco take over the administration of the Uwezo revolving Fund.

The constituency Uwezo Fund committee had been complaining of the challenge of loan defaulters as many groups that benefitted failed to service their loans making it difficult to recover the monies and assist other needy economic ventures.

Jumuisha Sacco’s Finance Manager Bosco Aremo revealed that since they signed the agreement to be the intermediary of the Uwezo Fund with the Bondo Constituency, the Fund has begun to witness improvements in terms of loan recovery and members’ capacity to handle viable economic ventures.

“Before we intervened to act as the intermediary, the Uwezo Fund had given out Sh15 million to groups but had over Sh9 million still unrecovered reflecting 28 per cent recovery index. This was because members of the groups lacked proper empowerment and capacity to manage their businesses and give desired economic results,” he said.

join the Jumuisha Sacco where they buy shares with the Sacco.

The Jumuisha Sacco will in turn multiply their loan threefold and give it to the members at very cheap rates which prompts profitability in the Jumuisha Sacco eventual end.”

Finance manager “Since April Bosco Aremo. Photo/ 2021, when the inErick Nyayiera termediary deal was inked, the Sh1.1 milHe said the Jumuilion that was given sha purposed to incul- the groups via the cate the Sacco culture Sacco has already been in all the groups where recovered and payed they will be trained on to the Fund account prudent financial man- and in July 2021, the agement and all other Uwezo Fund will be aspects necessary for giving the business ensuring positive busi- groups another tranche ness outcomes. of Sh10 million to 60 Uwezo Fund groups which means will give the money that as a Saccco we to the viable busi- will be able to give ness groups then they

them Sh30 million and ensure they grow their businesses,” said Bosco Aremo, the Finance Manager, Jumuisha Sacco.

Jumuisha Sacco formerly Bondo Teachers Sacco opened a common bond in 2019 to allow business people reap from the benefits of the Sacco movement and currently has grown from a membership of a 1000 to over 2000.

Bosco however regretted that the mass retirement of teachers has hurt the teachers’ Sacco movement.

He also decried the late remittance of deduction of teachers’ contribution to the Sacco.

The Finance manager also noted that they are well prepared to give school fees loans to the members ahead of Form one admissions and are currently receiving applications.

Kisumu County to train co-operators on governance

By Fredrick Odiero

The department of Cooperative Development in Kisumu Central Kisumu County will soon organize training for stakeholders in the sector in order to enhance efficiency and compliance.

Kisumu Central sub county cooperative officer Philip Akama (pictured) further said that some of the beneficiaries of the training will be the over 300 Saccos in the area.

He said other potential beneficiaries will be the National Transport and Safety Agency and matatu owners.

Akama said that they will also incorporate Saccos in the dairy and sugar industry in order to tap the potential there.

Speaking in Kisumu Akama said that many Saccos in the area are at the moment doing badly due to incapacity on the

part of members and the management.

He said many of the organizations have gone under since they are not keen on their books being audited.

"These are some of the issues which will be tackled during the training' he said.

Akama said some Saccos such as Kisumu Teachers Sacco are doing well due to good management.

He also gave the example of Mwonya Tuk Tuk Sacco which he noted has managed to fight on despite challenges.

JULY, 2021

SACCO REVIEW | 37

WESTERN

Cash-strapped Wevarsity Sacco replaces entire board

By Douglas Dindi Cash-strapped Kakamega based Wevarsity Sacco has replaced the entire board of directors in a recent elections held despite Covid-19 protocols.

About four hundred members gathered at the Masinde Muliro University of Science and Technology Annex Grounds to vote out the executive committee comprising Jason Nganyi (Chairman), Agatha Mbakaya (Vice chair), Rita Shitemi (Secretary) and Nixon Apwoka (treasurer) over alleged mismanagement of the Sacco.

The election was a climax of a decade-old turmoil at the Sacco in Western Kenya, which began with a petition by a section of members back in February demanding for a special general meeting to audit the status of the Sacco, ini-

tiate amendments to the Sacco by-laws, discuss the board of management and consider their removal over alleged impropriety and to discuss the vacant position of the Chief Executive Officer.

The petition was signed by 142 members earlier this year.

They expressed concern that Wevarsity Sacco was courting deregistration by the Outgoing Board Chairman Dr Jason Nganyi, Secreregulator Sacco Society Regu- tary, Rita Shitemi and acting CEO Emily Esokomi. latory Uuthority (Sasra) for failure to comply with Sacco Sacco Plaza in Lurambi sub- stone is turned. laws over borrowing.

According to a response The catalyst for the dis- urbs and the unending concord was the Sh10 million de- troversy surrounding a plot in the report by the Nganyi clared by the management as of land mean for subdivision committee, which admitted dividend for audited accounts to members for development most of the queries, financial five years ago. mismanagement is normal 2020.

The new treasurer of the and historical at the Sacco datAt the core of financial queries by members is Sacco Andrew Nandasaba ing back to 2014 when five Sh46.2 million that remains told Sacco Review that the employees were sanctioned unaccounted for and spanning new committee has yet to lay over Sh5 million losses.

A total of Sh24.3 million seven years between 2014 and its hand on the rot in the Sacco 2021, the stalled Wevarsity but promised to ensure every in loans are recorded as loans

6,000 Vihiga farmers receive Sh43m boost which target to give grants to 800 groups.

Pamela Mahila, the County Chief officer at the Department of Agriculture encouraged farmers to diversify their investments for better returns.

She added that her officers will continue giving technical advices to farmer groups on how to engage in productive ventures.

Many farmers also reVihiga farmers receiving a cheque of Sh43m ceived tree seedlings comprising of banana, gravelia

By Our Correspondent ment while seeking for and avocado. your votes. The money you NARIGP project has Over 6,000 farmers in are receiving is a grant, not also supported eleven coVihiga County have been a loan. I urge the groups operative societies to a fiawarded Sh43 million un- to make good use of it for nancial tune of Sh11 million der the National Agriculture proper value addition,” said which was used to recruit and Rural Inclusive Growth the Governor. new members and capacThe Governor was Project (NARIGP) to supity building of management speaking when he issued port their farming activities. committees.

According to the Coun- the cheques to 540 farmers The cooperative societty Governor Dr. Wilber Ot- belonging to 18 groups in ies in Sabatia and Vihiga tichilo, the residents should an event held in Emabungo Dairy received Sh16 million form community groups in ward. for the purchase of various Already 540 groups order to receive more monassets to support their milk ey from the NARIGP grant. have received Sh193 mil- handling and marketing ac“I promised develop- lion out of the Sh500 million tivities. from the NARIGP project

not accounted for during 2015 operation year according to the report, This figure rose to Sh40.7 million by the close of 2018. There is a further Sh500, 000 in irregular transactions during the 2019/2020 period.

The report explains that the current dividend payment of Sh10 million was reduced because Sh13 million is said to be the cumulative financial expenses that are in the books over the past five years.

The Sacco according to the report incurred a cumulative expense amounting Sh52.4 million between 2015 and 2019, resulting in a Sh13.7 million cumulative expense dispensed in the 2020 accounts.

The former committee claims in its response that government tax relief, contributed to the financial crisis in the society as well as sal-

ary increment, irregular and uncontrolled borrowing and a tedious process of landing external commercial loans stretched the cash crisis in the Sacco.

Nganyi who insists innocence says the outgoing committee in liaison with the Ministry of Cooperative had commissioned an inquiry to establish the scope and magnitude of the mess and the perpetrators for action.

“Some decisions taken by my committee were due to pressure from members. The monthly cash needs between July 2020 and January 2021 was over Sh30 million against our income of Sh15 million.

We were living beyond our means literally; we once went for a bank overdraft of Sh7 million which resulted in a sanction letter from Sasra in October for borrowing without their approval”, he said.

Busia farmers to benefit from combine rice harvesters

By Gilbert Ochieng

Some 1934 rice farmers in Bunyula, Busia County will directly benefit from three rice combine harvesters through a partnership.

Magombe Multi-Purpose Cooperative Society chairman Christopher Gunyi said gone were the days when rice farming was operated manually.

He pointed out that rice farmers from Bunyala Irrigation Scheme have been losing ten bags of rice per acre valued at Sh50, 000 each harvesting season as a result of the manual harvesting System that they have been using for five decades.

“The manual harvesting system of rice by farmers from Bunyala Irrigation Scheme have been using for the past fifty years has seen them incurring huge crop losses due to the spillage of rice totaling to the tune of ten bags of rice amounting to Sh50,000 per acre,” he said.

Gunyi said the loss of rice

A Combine harvester for members of Magombe Multi Purpose Co-operative Society in Budalangi.

Photo/Gilbert Ochieng. incurred as a result of manual harvesting system has forced the cooperative society to liaise with various stakeholders who have provided the rice farmers with two combine harvesters privately owned by rice farmers from Mwea Irrigation Scheme.

“We also have an Indian investor based in Nairobi who has provided the cooperative society with another combine harvester bringing the total to

three”, he confided to the Sacco Review.

Godfrey Wanjala, one of the rice farmers from Bunyala Rice Irrigation scheme and a member of Magombe MultiPurpose cooperative society said the arrival of combine harvesters is a blessing to the rice farmers who had for long been relying on the manual system of harvesting.

CENTRAL

Nyeri Sacco targets Laikipia farmers in its growth agenda

By Our Reporter

Nyeri based NewFortis Sacco has trained its eyes on farmers and pastoralists in Laikipia County in a bid to deliver banking services to them and enhancing food security in the semi-arid region.

NewFortis Chairman John Githinji said the Sacco was partnering with agricultural officers and other key players in the agricultural sector to support farmers and pastoralists in accessing credit facilities to

boost their returns.

“NewFortis Sacco is ready to work with farmers and pastoralists to assist them rise again especially after the devastation on the economy brought about by Covid-19 pandemic,” Githinji said.

The chairman revealed that the fast-growing society was focused on cashless transactions to reduce the risk of Covid-19 and had launched mobile money banking besides setting up Automated Teller Machines (ATMs) in all its branches.

John Githinji, Newfortis Sacco chairman

He noted that the main economic preoccupation in Laikipia was farming and livestock breeding and that the Sacco had specific products that meet the needs of the targeted customers.

Githinji said the Sacco whose bulk of members are teachers hailing from Nyeri has recruited over 3,500 members so far in Laikipia with other branches being in Nyeri, Karatina, Othaya Nairobi and the new kid on the block-Nanyuki town.

Laikipia Governor Ndiritu Muriithi has welcomed the initiative of the Sacco to venture into Laikipa and assured them of the County Government’s support.

He said that their plan to empower local farmers and pastoralists was commendable and asked the Sacco to work closely with the County Department of Trade and Co-operatives to achieve its objectives.

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JULY, 2021

Kenya’s co-operative movement among the best globally The OCDC released a Global Outcomes Report and a stand-alone research product that forms part of a three-report suite. The study makes a strong case for the role of co-operatives in development.

By Malachi Motano A new report by US Overseas Co-operative Development Council (OCDC) indicates that the Kenyan Co-operative Movement has had a higher impact in empowering its members economically than anywhere else in the world.

The study which was carried out between 2017 and 2020 in Kenya, Peru, Philippines and Poland 2020 involved over 8,000 people, who included co-op members, measured against a comparison group of non-members, found out that co-operatives positively benefited their households economically: 82 per cent in Kenya, 71 per cent in Poland, 94 per cent in the Philippines, and 74 per cent in Peru.

The OCDC study also found that co-operatives help members achieve greater prosperity directly – through access to credit and higher earnings – and indirectly by facilitating financial education, mentorship, and training.

It further revealed that cooperatives are highly regarded for their contributions to communi-

ties’ economic development by both members and non-members, who praised co-ops for helping to support a robust business environment, creating jobs, attracting investment, and supporting infrastructure development.

Seventy per cent of co-operative members in Kenya and 80 per cent in the Philippines according to the study thought their co-operatives offered support to members during emergencies. Co-operative members were more likely to rely on their own savings for support than their family, relatives, and friends.

The research also suggested that co-operatives play a role in empowering women, with women members’ consistently higher economic ranking than women’s average economic ranking in each country of the study across all four states.

In addition, the majority of women taking part in the survey saw agency and independence resulting from their membership – 82 per cent in Kenya, 51 per cent in the Philippines, and 46 per cent in Peru.

Prof. Esther Gicheru, Chairperson, Shirika Sacco.

The study looked at ways to identify and measure the difference co-operatives make. It also looked at leaders of co-operatives and communities and other important stakeholders.

Those who took part in OCDC’s research attributed their economic well-being to their cooperative membership, and eco-

nomic motivations serve as the primary factor influencing co-operative membership.

The OCDC released a Global Outcomes Report and a standalone research product that forms part of a three-report suite. The study makes a strong case for the role of co-operatives in development.

“We have a very vibrant cooperative sector here because it is surrounded by all these institutions, which support and reinforce each other. I think that is part of the reason why we have been successful in a sustainable way,” said Prof. Esther Gicheru Chairperson Shirika Sacco According to Professor Gicheru, the country’s cooperatives don’t rely on the government alone to regulate the sector. They participate in a network of organizations within which they address shared priorities, both through self-regulation and by lobbying the government.

Some organisations are regional, while others are specific to the various types of cooperative enterprises. Together, they are all part of

an apex organization, the Cooperative Alliance of Kenya.

“In the future there will be a lot of innovation in new types of cooperative ventures, especially because there have been deliberate efforts to involve young people. I expect that the new technology favoured by young people will lead to new ways of practicing cooperativism,” Gicheru is hopeful.

She says Kenya is a place where experience in democratic enterprise is unusually widespread, that it’s common to meet people who have spent years pooling resources with others and making decisions collaboratively.

“Still, Kenyans don’t believe that democracy, or business knowhow, will come about naturally. In 1952, the government established a college to train managers of cooperatives. Students learn both how to make a business successful, and how to honour the democratic principles of the cooperative movement. In some ways we teach business just like any other business school, except a kind of business that doesn’t exploit its consumers,” she said.

Kenyan Saccos lack investment diversification

By Sammy Chivanga Savings and Credit Cooperative Societies (Saccos) are dragging their feet on diversifying their investment into new areas such as health and education as the high demand for loans among members put pressure on their wallets.

While the desire to branch into areas such as health exists, not many members are ready to trust management to try out new areas.

In addition, new Saccos that are coming up are also quick to copy what has been tested and proven by the existing cooperatives as opposed to charting new territories.

The lack of diversification in Kenya’s cooperative movement—one of the most vibrant cooperatives sector in Africa—is stark contrast with what is happening in jurisdictions such as India and Britain.

The cooperative movement also played a significant role towards the industrial revolution especially in the developed countries such as the USA, South America’s Brazil and Argentina which are among the global leaders of the cooperative movement.

However, Many Kenyan Saccos are stuck on the primary objective of enabling members to save regularly so as to create a pool of funds from which they can obtain credit facilities on softer terms than is otherwise available in the open market.

Kenya Police DT Sacco, which is among the top cooperatives in the country, does not see a possibility of branching into investments that are

away from what it has relied on over the years for growth.

“We have no intention of diversifying investments. Instead, we are targeting more products. We stick to the saving principle of the cooperative movement because the core mandate of a Sacco is to invest in its members,” said David Mategwa, the national Chairman at Kenya Police Sacco.

Yet, the government is seeking increased investments in housing, medical care, clean and renewable energy, infrastructure and manufacturing.

Cooperative societies are dragging their feet on engaging in investment activities in other areas of the economy such as business and buying tangible assets other than land for personal housing needs.

These new investments, says Mr. Moses Chebor who served Boresha Sacco for 35 years and retired in February in the CEO role, require unique sets of skills that may not exist in the Saccos.

“Saccos are concentrating on what they know and have experience on. For example, a Sacco affiliated to the Ministry of Water may find it easier to do water projects as opposed to say one whose majority of members are farmers,” said Mr Chebor.

“With the current structure of Saccos it is challenging to go into newer areas. It is about limited expertise and low risk appetite,” he noted.

This has seen Saccos shy away from opportunities such as investing in the stock market, mining, and management of property portfolio

since these areas require new and unique skills.

The high demand for loans among Sacco members is also standing in the way of diversification since many Saccos are channelling over 90 percent of their money on loans.

Mr. Chebor says the only way would be to think in the direction of investment cooperatives, “Let the main Sacco run the way it is supposed to and concentrate on lending. Unless members agree to mobilize other resources specifically for investing, diversification may be

Moses Chebor, former Boresha Sacco CEO. a big challenge,” explained Mr. Chebor.

But Kenyans’ desire to invest through cooperatives was hijacked by self- seekers who promised quick returns in the name of investment Saccos turned Ponzi schemes.

This experience forced the ministry to stop the promotion and registration of investment co- operatives in totality.

However, the draft national policy on co-operative development which was opened to public comment in March acknowledged that Kenya would soon allow for special cooperatives to mobilise money for investment.

“The government shall be reviewing this policy direction to reflect the dynamic business environment and accommodate investors in Diaspora whose savings desires can-

We have no intention of diversifying investments. Instead, we are targeting more products. We stick to the saving principle of the cooperative movement because the core mandate of a Sacco is to invest in its members. not be accommodated in the Sacco model,” reads the policy that has been in the works since 2017.

Cooperative societies that will be engaged in the process of mobilising savings purely for purposes of engaging in investments will be known

as savings and investment cooperatives (SICOs).

Such cooperatives, the draft policy says, will not be allowed to advance credit to their members.

Counties are also thinking towards this direction in order to allow cooperatives to invest in diverse sectors.

Migori County for instance recently announced that it was in the process of formulating the County Cooperative Policy Paper that aims at supporting cooperative members adequately.

The new policy would address issues such as development of current cooperatives, registration of new cooperatives, and promotion of vibrant cooperative structure.

Migori County Chief Officer for Public Service Management, Edward Kabaka, said the policy will help small cottage cooperatives to grow and play key roles in diverse sectors.

“The policy will help cooperatives expand agricultural and mining sectors in the County by allowing cooperative members to easily access agricultural extension services like field officers and grants,” he said.

Vihiga County in 2018 also came up with a cooperative policy that among other things routes for the setting up of investments cooperative.

Investment cooperatives were sighted as crucial in determining the future lines of business expansion and financial viability.

“The county government will make concerted efforts to encourage the formation of investment cooperatives in the county,” reads the policy.

SACCO REVIEW | 39

JULY, 2021

The government is planning to inject over Sh20 billion to revive the country’s coffee sector for the next four years.The biggest beneficiaries of revitalisation plan will be farmers in the Coffee Cooperatives.

Strengthening Governance and Capacity in Coffee Co-operatives total allocation for four years is about 429 Million.

This includes:

Governance strengthening - about 26Million Capacity enhancement - about402Million Coffee growing areas

Digitize/automate coffee Cooperatives, over 600million for 4 years.

Equipping and refubrishing cooperative grown secondary coffee mills, over 1billion for 4 years.

Support to coffee Cooperatives financing About 3billion for 4 years.

State unveils Sh20 bn plan to revive coffee sector

By Roy Hezron The government is planning to inject over Sh20 billion to revive the country’s coffee sector for the next four years.

The biggest beneficiaries of revitalisation plan will be farmers in the Coffee Co-operatives.

Peter Munya, CS for Agriculture, Livestock, Fisheries and Cooperatives.

The revitalisation project which was launched in April 2020 by the Cabinet Secretary for Agriculture, Livestock, Fisheries and Cooperatives Peter Munya is meant to revive the coffee industry in the country in order to alleviate poverty in the coffee growing areas and provide a reliable source of livelihoods among coffee growers.

The project will be implemented in the 31 coffee growing counties which include Baringo, Bomet, Bungoma, Busia, ElgeiyoMarakwet, Embu, Homa-Bay, Kakamega, Kericho, Kirinyaga, Kisii, Kisumu, Laikipia and Machakos.

Others are Makueni, Marsabit, Meru, Migori, Murang’a, Nakuru, Nandi, Nyamira, Nyeri, Siaya, Taita-Taveta, Tharaka-Nithi, TransNzoia, Uasin-Gishu, Vihiga and West-Pokot.

The revitalisation project which will cost the government around Sh21.3 billion is currently being implemented in collaboration with the World Bank (WB), under the ongoing WB projects, namely the National Agricultural

and Rural Inclusive Growth Project (NAGRIP) and the Kenya Climate Smart Agriculture Project (KCSAP).

The governments’ initiative come as the country had challenges and experiencing a steady decline of coffee production from 130,000 Metric tonnes of clean coffee to an average of 40,000 metric tonnes.

Smallholders Coffee Producers Majority of the producers are smallholders who own less than five (5) acres where they plant their coffee and sell their product through cooperative societies, and they account for 60 per cent of the national coffee production.

Those owning above five (5) acres of land who are referred to us estates or small, medium and large scale farmers sell their coffee product directly through their marketing agent, and they account for 40 per cent of the national coffee production.

Kenya has an estimated 700,000 small holder growers who market their product through 525 Cooperative Societies whereby each Cooperative owns and manages one or more wet-processing factories known us primary processing.

There are over 4, 000 wet processing plants which includes 3, 300 Smallholders estate farmers and 1,000 Coffee Cooperatives pulping station where coffee is pulped, grade, washed and dried.

Strengthening governance in Coffee Cooperatives For the next four years, the government plan to invest over 420 Million to strengthen governance and capacity in Coffee Cooperatives.

This is expected to be achieved through issuing guidelines on mandatory cooperative governance structures in all registered cooperatives, and issue guidelines on key management tools notably budget, and audited accounts.

Others will include procurement, terms and conditions of service, business and strategic plan; and developing and reviewing new and existing guidelines on accountability and enforcement of the code

of Ethics and Conduct for cooperative officials.

In addition, the project will further support enhancement of technical and leadership capacity among cooperative leaders to mitigate against identified weaknesses that have been witnessed in the coffee cooperatives in the recent past.

Over Sh26 million is expected to be injected in the Cooperative sector to specifically strengthen the cooperative’s governance, while over Sh400 million will specifically revive capacity enhancement in the coffee cooperative sector.

The State Department for Cooperatives (SDC) will develop and hold Training of Trainers course on the induction of new leaders.

On the other hand, over Sh600 million is expected to be pumped into the coffee sector to automate and digitize coffee cooperatives, in order to remove human interference in most coffee operations, enhance accountability and attract youth to participate in the coffee industry.

In achieving this, Coffee Management Information Software (CMIS) will be designed and developed for all primary processing cooperatives and the same for secondary processing cooperatives (dry mills).

Equipment’s such as computer hardwires, printers, digital weighing scales and accessories will be

procured and distributed to coffee factories, and staff identified to operate the equipment’s being trained on the operation and use of the software to ensure their effective use.

In addition, over Sh3 billion will be meant to equip and refurbish cooperative growers’ secondary coffee mills which will also be modernized and or upgraded to the required standards, which will include machines for roasting, packing and color sorting Also to be automated in the secondary coffee mills is record keeping by using Information Communication Technology (ICT), hence need to supply all grower coffee mills with computer hardware’s and software’s linked to the coffee industry database.

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

In financing and supporting coffee cooperatives, over Sh3 billion will be invested for the next four years which will include over Sh1 billion and over Sh2 billion on establishing of coffee revolving funds and Cherry Advance Funds respectively.

This is basically meant to support the smallholder farmers’ cash flow constraints and their ability to finance farm operations and their

Mrs Ndinda Musyoka a shareholder at Wendano-Matuu Coffee Farmers Company inspects ripe coffee berries at the 280 hectares farm in Matungulu constituency in Machakos County last year. Photo/Eugene Kioko

livelihoods.

However, the Ministry is considering expanding the Sh3 billion coffee cherry funds to offer additional services in the sector following a slow uptake by farmers.

In April this year, CS Munya said even though the fund was meant for loaning, it is sufficiently large and can be utilized for other activities within the sector.

The announcement followed after revelations that only Sh300 million from the cherry fund has been disbursed since it was introduced a year ago.

The cherry advance levy was announced by President Uhuru Kenyatta in 2019 and is aimed at helping farmers meet financial obligations after harvesting crop in order to minimize the time that it takes for growers to get their earnings from their co-operative societies.

The project will be implemented in the 31 coffee growing counties which include: Baringo, Bomet, Bungoma, Busia, Elgeiyo-Marakwet, Embu, Homa-Bay, Kakamega, Kericho, Kirinyaga, Kisii, Kisumu, Laikipia and Machakos.

Others are Makueni, Marsabit, Meru, Migori, Murang’a, Nakuru, Nandi, Nyamira, Nyeri, Siaya, Taita-Taveta, Tharaka-Nithi, TransNzoia, Uasin-Gishu, Vihiga and West-Pokot.

Sacco Review JULY, 2021

Kenya’s Co-op movement best globally »» Page 38

Union implores Saccos to protect members’ data Sacco managements should practice data protection by design, by ensuring necessary systems, documents, procedures and policies are in place - George Ototo.

By Malachi Motano The Kenya Union of Savings and Credit Co-operatives (Kuscco) group has urged savings and credit co-operative societies (Saccos) to safeguard their members’ data in line with the Data Protection Act, 2019.

“Saccos managements should practice data protection by design, by ensuring necessary systems, documents, procedures and policies are in place,” said Kuscco Group Managing Director George Ototo.

He was speaking during the organisation’s 33rd Annual Delegates George Ototo, KUSCCO MD. Meeting where he reported that when dealing with sensitive personal ing personal data for Saccos is high,” data, the law requires one to take ex- he said.

He further urged leaders to take tra measures to protect it.

“This has big implications for an in depth look at the Act and adhere Saccos since they control detailed in- to it, to avoid hefty fines and loss of formation about members including members money. He also implored biometric data, property details, mar- leaders to ensure that staff is sensiital status, and health status among tized on the same.

“The digital wave that has swept other parameters mentioned in the Act. Thus the threshold for protect- across the country’s co-operative

sector, addressing members’ needs more efficiently and conveniently is exposing the gaping vulnerability in the sector, as the cases of fraud and money laundering have become ever so rampant. In light of this, we advise Deposit Taking Saccos to adopt strong measures to protect member funds,” he said.

He adds, “While Sacco Societies Fraud Investigation Unit (SSFIU) is already operational, initiated to curb the cases of fraud and corruption in co-operatives, Sacco managers must fight harder to eliminate the vice.

According to the MD, to compete effectively, Saccos need to use data to understand their customers on a personal level so that they can develop digital products that meet their needs.

“If Saccos continue to maintain data in traditional data warehouses, they cannot be able to solve emerging problems, because the structured data model lacks flexibility to adapt new business challenges. Co-

Data analytics can also help identify hidden opportunities, accelerate member engagement, prioritize offers, influence digital adoption and identify at-risk members. operatives need to make informed decisions to help meet the emerging needs of their membership,” he noted.

Experts say data analytics can also help identify hidden opportunities, accelerate member engagement, prioritize offers, influence digital adoption and identify at-risk members.

In a previous global survey by Global Data & Analytics (KPMG), 40,000 certified fraud examiners revealed that proactive data monitoring and analysis is an invaluable addition to an organisation to limit potential

Failure by varsities to settle statutory deductions criminal offence-UASU

By Staff Reporter The employer based Saccos must now adopt alternative methods to generate income and remain afloat even during difficult economic times like the current Covid – 19 pandemic, rather than relying on the unreliable employers who might remit their employees deduction when they feel like, leaving the societies on the verge of collapse when they cannot support their operations.

“Non-remittance of the dues is crippling operations, making it almost impossible for the Saccos to transact optimally as their financial bases were running out due to low liquidity levels. The impasse’ disrupts the financial base of the credit unions and the delay contributes to high non-performing loans,” said Ukulima Sacco Chairman Philip Cherono The deductions are in the form of either loan recovery or non-withdrawable deposit accounts, popularly known as back office service activities.

He said some of the notable defaulters are institutions of higher learning which have since the onset of Covid- 19 pandemic failed to remit employee’s deductions, a trend SHREND PUBLISHERS

that has led to non-performance and servicing of running loan packages.

According to the Cooperatives Commissioner Geoffrey Njang’ombe, issues of non-remittance of statutory deductions at the universities is historical and was aggravated by stoppage of parallel programmes, where there was a lot of monies going to the universities.

“To ensure their Saccos continue to operate, we are advising them that all their members should patronize their front office activities (Fosa) products. These are all deposit taking (DT) Saccos with Fosa. Through patronization, all their dues, salaries will be channelled directly to the Fosas,” he said.

His sentiment was echoed by Kenversity Sacco Chief Executive Officer: (CEO) Alfred Korir.

“University owes us (the Sacco) about Sh300 million monthly deductions. We therefore asked our members to channel their salaries through the Sacco so that they receive their payments from us after we deduct our share. That is what has worked well for us for the last two years,” he said.

Kenya Union of Savings and Credit Co-operatives (Kuscco) Managing Directors George Ototo

Dr. Constantine Wesonga, UASU Secretary General. said remittance of statutory, loan and members’ deductions to Saccos and banks is a mandatory employer obligation.

However, University Academic Staff Union (UASU) Secretary General Dr. Constantine Wasonga said failure by the institutions’ managements to remit the deductions is a criminal offence which should be dealt with by the law.

The government had warned that employers’ who default remitting their employees deductions to their respective co-operative societies within the stipulated period risk

facing hefty fines.

“For committing such an offence, the employer shall be liable to pay the sum deducted together with compound interest at the rate of not less than five per cent per month,” says Nathan Mukhweso, former Kakamega County Co-operative Commissioner.

He said the law gives powers to the Commissioner of Co-operative Development to direct any bank to transfer to the respective Sacco funds that have been deducted from employees’ salaries and not remitted.

“The government reserves the right to order for transfer of any money if it is proven that the employer deducted from the employees’ salaries and failed to remit the same to their respective Saccos within the prescribed seven days after the date upon which the deductions were made,” said Mukhweso.

According Sacco Societies Regulatory Authority (Sasra) reports, the highest proportion of total non-remitted deductions is owed by public universities and colleges.

“The highest proportion of the total non-remitted deductions amounting to Sh2.86 billion, representing 74.03 per cent of the total

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financial and reputational losses from fraud.

“Analysing data uncovers hidden patterns and insights which enhances understanding of customers and the products they need. Some Saccos utilize data lakes, which are vast pools of raw unstructured data, which complements a data warehouse,” KPMG Survey says.

This allows the Sacco to use their data to identify and solve any business problem, because they are flexible and extendable. Data analytics enhances the ability to identify trends, forecast outcomes and prescribe solutions.

The most fundamental function of data analytics is to aggregate and distribute data so that Saccos can get a clearer perspective of the members they are serving, their needs and expectations; so that they can formulate a roadmap or blueprint on how to meet this needs to elicit customer satisfaction thereby, standing a big chance in retaining them.

Big data analysis and video analytics, allow co-operatives to investigate threats in a more intelligent manner and generate actionable intelligence from collected data points to achieve their strategic intelligence and business objectives.

Societies should, therefore, adopt a sophisticated approach to data analytics and governance, by adopting a data strategy that answers basic business questions by first defining their objective.

non-remitted deductions was owed by the public universities and tertiary colleges,” Sasra says in its latest report.

The total amount which was not remitted to the deposit-taking Saccos increased to Sh3.86 billion last year.

With five deposit-taking Sacco societies whose membership are directly drawn from the public universities and other tertiary institutions, the non-remittance is likely to impair the ability of the Saccos to meet their financial obligations to members, and affect their financial stability.

While three public universities released Sh587.2 million in statutory deductions to Savings and Credit Co-operatives (Saccos) which they had failed to remit by December last year owing to liquidity challenges, Kuscco maintains that the amount remitted by Egerton University, University of Nairobi and Kisii University is just part of the total Sh4.3 billion that was owed by universities, county governments, water and fresh produce companies as at the close of 2020.

“We appealed for remittance of outstanding check-offs owed to Saccos and so far we have seen positive results with Chuna Sacco payment of Sh275.9 million owed by the University of Nairobi. Egerton Sacco was also paid Sh5.3 million by Kisii University and Shs.306 million by Egerton University by December, 2020, excluding interest and penalties,” Ototo said.

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