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1OCTOBER - NOVEMBER, 2015| Sacco Times

SACCO TIMESISSUE - 2015005

YOUR INFORMATION PLATFORM

THE

www.saccotimes.com

Should Saccos investin Treasury Bills?

SASRA turns heat on

non compliant Saccos

Stima Sacco, Chase Bankto give contractors loans

OCTOBER - NOVEMBER, 2015 | KSh 200


2/48

2 OCTOBER - NOVEMBER, 2015 | Sacco Times

UNWITHDRAWABLE DEPOSIT/SHARES

v These are members shares with a per valueKsh. 100/=

v Members should have a minimum of 50

sharesv This is an accumulated savings that is a

source of funds with which loans can bemade available to members.

v it cannot be withdrawn instantly.v The sky is the limit to this Deposit of the

society.v A member shall cease to be a member of

this society on the date on which notificationin writing is received by the society about thecancellation of his/her membership society.

CREDIT SERVICES

This is clearly stipulated in our credit policy.

1. Normal Loans

This loan facility is available to members withinthe month after application as long as themembers cane plot is months old and above.

2. School Fees Loans

Same as normal loans but for school fees only.

3. Fosa Loans

Is a frequent office loan scheme and is a short

term loan facility repayable within two months.Applicants must have processed cane paymentsalary or 15% through Nitunze Sacco Society.

4. Emergency Loan

Facility is processed within three working days.Age of cane should be five months and above.The amount applied should not exceed 20,000/=.Purpose of emergency should be among thefollowing: funeral expenses, hospital bill, courtfines, burnt houses etc.

PHYSICAL OFFICES

Nitunze Plaza, Mumias Head Office

Malaha Branch, Makunga Branch

MOBILE BRANCHES

1. Nasianda

2. Sabatia

3. Harambee

4. Mungatsi

5. Ogalo

6. Koyonzo

7. Navakholo

8. Etenje

9. Nambale

Nitunze Savings and CreditCo-operative Society Limited

P.O. Box 295, MumiasTel: 020 - 259 3364

Email: [email protected]@gmail.com

MICROFINANCE LOANS

a) Group Lending

v For those with small businesses

v Payable withing 6 months

v Little interest ratesv No grace period

b) Vegetable Farming

v Grace period 3 months

v Loan payable within 9 months

v Little interest rates

c) Equipment Loan

v Issued to those in businesses

v No grace period

v Loan payable within 12-24 monthsv Little interest rates


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CONTENTS

EDITOR-IN-CHIEF

Reinhard Mosagwe

CONSULTING EDITOR

Joseph Karanja

Email: [email protected]: 0771 048 926

STAFF WRITERS

Grace Ndirangu, Ken Otieno,

Fredrick Weyimi, Kephas Ayiecha,

Samuel Towet, Anthony Mwachiro,

Corny Mutisya, Joseph Ngure,

Nick Kavai

DESIGN AND LAYOUT:

Judith Okongo

Email: [email protected]

Tel: 0721-496 922

PHOTOGRAPHY:Kaniaru Ndirangu

SUBSCRIPTION

Major Capital Agencies Limited

DISTRIBUTION AND CIRCULATION

JETsam Distribution Limited

PUBLISHED BY:

Basecom Ventures Ltd

Kampus Towers, 1st foor,

University Way

P.O. Box 42317 - 00100, Nairobi

Tel: 0720 380 226 / 0724 172 670 /

0733 272321

Email: [email protected],

[email protected]

Website: www.saccotimes.com

1OCTOBER-N OVEMBER,2015| Sacco Times

SACCO TIMESISSUE- 2015005

YOURINFORMATIONPLATFORM

THE

www.saccotimes.com

Should Saccos investin Treasury Bills?

SASRA turns heat onnon compliant Saccos

Stima Sacco, Chase Bankto give contractors loans

OCTOBER-NOVEMBER,2 01 5 | KSh 20 0

SASRA blacklists 5 Saccos over regulations 5

Stegro Sacco members reap big from new products 6

Kirinyaga Matatu Sacco ups game to beat competition 10

Nyeri: Wananchi Sacco boosts youth, farmers 12

Why Sacco AGMs are crucial 13

Asili Sacco lives up to its vision 14

Stima Investment wins big in 2015 Ushirika Day

Celebrations 15

Chai Sacco to train youth groups 16

Stima Sacco lures Kenyans in Diaspora in growth plan 17

Ufanisi Sacco promotes thrift among members 18

Kenversity holds Special General Meeting 19

Waumini Sacco conquers new heights 20

Nitunze Sacco picks new board to boost service delivery 22

Kibera Sacco gives members hope 24

Murata Sacco unveils cheque book 26

State borrows heavily as interest rises 30

Equity Bank CEO scoops top award 32Family Bank foats shares to boost capital base 34

State to review CBK laws 36

Stima Sacco partners with Chase Bank to aid contractors 38

Afya Sacco opens new line of business 40

Sukari Sacco set to re-brand 41

Understanding Treasury Bills 42

KCB earns accolades for business acumen 44


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EDITORS DESK

Saccos must adhere to SASRA rules

Since 1931s Governments first formal in-

volvement in Co-operatives when the first

Co-operative Ordinance was enacted to

regulate the operations of co-operatives, the Co-

operatives Movement in Kenya has grown tre-

mendously to emerge the best in Africa.

Te vibrant and dynamic Co-operative Move-

ment is a key player in the economy, controlling

about 43 per cent of Kenyas gross domestic prod-

uct (GDP). Te sector employs more than 300,000

people, besides providing opportunities for self-

employment to many more.

oday, the Savings and Credit Societies (Sacco) is

the fastest growing sub-sector in the movement,

having mobilised savings of more than Sh450 bil-

lion. Te sector commands 67 and 62 per cent of

the total assets and deposits/savings, respectively.

Te greatest contribution attributed to Co-op-

eratives in Kenyas social and economic devel-

opment has been in the financial sector, where

Saccos and national financial co-operative organ-

isations, Co-operative Bank and Co-operative In-

surance Company (CIC), hold substantial savings

portfolio accounting for more than 31 per cent of

Kenyas gross national savings.

Given the important role the sector plays in the

countrys development, there is need to safeguard

and protect it to ensure more and more Kenyans

benefit from the products and services on offer.

It is therefore disheartening when some players in

the sector fail to adhere to rules and regulations

stipulated by the regulator, the Sacco Societies

Regulatory Authority (SASRA).

By failing to adhere to the rules, the managers of

the said Saccos expose their members to finan-

cial losses.

Te Sacco managers are aware that the principal

mandate of the Authority under the Act as read

with the aforesaid Regulations, 2010 has been

to license Sacco Societies to undertake deposit-

taking Sacco business in Kenya (popularly known

as Front Office Service Activity or FOSA), and to

supervise and regulate such Sacco Societies inKenya among other things.

Recently, SASRA blacklisted five Saccos for disre-

garding the rules of operations. Tose blacklisted

are Good Life Sacco Society and related Fedha

Micro-Finance Investment Ltd, Prevailing Sacco

Society Ltd, New Milimani Sacco Society Ltd, Mil-

lionaire Sacco Kenya and Urithi Premier and re-

lated Urithi Housing Co-operative Society Ltd.

We wish to call upon the management of the five

Saccos to ensure they comply with SASRA rules

and regulations for the sake of their members.

Te managers should understand that the enti-

ties they lead are economic enterprises founded

by and belonging entirely to the members for the

sole purpose of rendering to them the best pos-

sible service at the lowest possible cost.

Stima Sacco National Chairman, Dr Ben Chumo and

Chase Bank Chief Executive Officer, Paul Njaga dis-

play the partnership agreement to give contractors

loans.


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NEWS

By Hildah Mutugi

Five savings and credit socie-ties have been blacklisted bythe Sacco Societies Regula-

tory Authority (SASRA) for failing tomeet the required regulations.

Good Life Sacco Society, FedhaMicro-Finance Investment Ltd, Pre-vailing Sacco Society Ltd, New Mili-mani Sacco Society Ltd, MillionaireSacco Kenya and Urithi Premier and

Urithi Housing Co-operative Societywere blacklisted for taking depositsfrom their members without havingSASRAs nod to do so. Some of themwere buying land and sub-dividingit into plots for members.

According to SASRA acting ChiefExecutive, John Mwaka, the five Sac-cos were collecting money from thepublic with false promises of favour-able returns on savings and or de-posit accounts.

Mwaka urged the public not to dealwith unregistered entities notingthat those doing so stand to losetheir money.

He said the five Saccos were not reg-istered and cannot collect moneyfrom the public or run front offices.

Te CEO said Sacco societies are le-gally restricted and limited to onlycarrying out non-withdrawable de-

posits to lend to members.

Such societies are prohibited fromproviding Fosa services such as de-posit accounts of any description,AM services and mobile moneybusiness among other, the CEO saidin an advertisement carried by a lo-cal daily recently.

But speaking to a local daily UrithiSacco manager, Isaac Gathara, de-nied that their Sacco was not follow-ing the regulations.

He said: We are registered and weshall make a formal response on thematter soon. Urithi Sacco has beenlooking for members to buy landand houses. It was established twoyears ago.

Te manager of Good Life, Peter

Wanjohi, said the company hasbeen in existence for the last threeyears and that it had communi-cated with SASRA in the past andexplained that Good Life and Fedhaonly shared the chairman who laterresigned from Good Life.

SASRA is mandated to licence Saccosocieties to carry out deposit-takingbusiness; regulate and superviseSacco societies; hold, manage andapply the General Fund of the Au-

thority and levy contributions.

SASRA blacklists 5 Saccosover regulations

John Nthuku, SASRA Board Chairman.

By Hildah Mutugi

he Public Service Vehicles(PSVs) Saccos will be auditedby the National ransport and

Safety Authority (NSA) to ensureroad safety.

NSAs move comes as detailsemerged that Nairobi county leads inaccident cases where 291 people havelost their lives this year alone.Nakuru county comes second with 93people dead as the authority identifiescarelessness as the leading contribu-tor.

NSA deputy director for corporatecommunications Dominic Kabiru saidKakamega, Mombasa and Machakosare among the top five where a totalof 151 fatalities were recorded over thesame period.

He said NSA will engage in talks withall Saccos in order to maintain safetyof passengers and pedestrians acrossall highways in the country. We willnot hesitate to cancel licences for Sac-cos which flout traffic rules in spite

of our continued campaign on roadsafety, he said.

Recently, a university student wascrushed to death after being sand-wiched between two vehicles in Nai-robis Central Business District.

Cecilia Njeri, 23, was crossing the roadbehind a matatu at the uskys bebabeba stage when the said matatu re-versed abruptly.

She was rushed to Guru Nanak hospi-tal by good Samaritans and was found

to have broken her ribs, chest bonesand had a ruptured kidney.

According to her brother, she hadtravelled home to inform her parentsabout her upcoming graduation andalso to let them know that she had got-ten a job at the Boma hotel. She wasscheduled to report to work on Mon-day 12, 2015.

Body to audit

Matatu Saccos

Te five Saccos were

collecting money fom the

public with alse promises

o avourable returns on

savings and or deposit

accounts.


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ADVERTORIAL

By Kipkoech Chirchir

Stegro Sacco Limited which wasinitially known as Sot ea Grow-ers Sacco Limited was registered

on August 5, 1992 to offer banking andother financial services to its pioneermembers. At the time the banking andfinancial services were not easily acces-sible to many farmers in the area.

Its pioneer farmers were mostly thosedelivering tea to Kapkoros ea Fac-tory. Initially, the Sacco operated from

a rental office in Silibwet town beforemoving to their own Plaza in Septem-ber 2005.

At the moment the Sacco has fivebranches in Kapkoros, Olenguru-one, egat, Kamogoso and Merigi. Allbranches operations are interlinked.Stegro Saccos mission is to mobiliseand prudently manage members re-sources in order to offer affordablefinancial services, create wealth andimprove their standard of living whileits vision is to be a leading Sacco in the

provision of Excellent, Efficient and Af-

fordable financial and other diversi-fied services in Kenya.

Te core values are Self help, Soli-darity, Self Responsibility, Honesty,Democracy, Openness & Social Re-sponsibility, Equality and Caring forothers. Initially the Sacco was knownas Sot ea Growers Sacco Limited butrecently the name was changed to Ste-gro Sacco with the registration of Ste-gro ea Factory.

Te Sacco has a variety of productswhich include Back Office Products(BOSA). Under BOSA products suchas school fees loan, Biashara loan,emergency loan, Jiinue group loan,Kilimo bora and development loanare offered.

Te Sacco also offers short term ad-vance on crop, salary and pension re-coverable in one month.

Te long-term advances includeOkoa advance which is payable in six

months with an interest rate of reduc-

Stegro Sacco members reapbig from new products

ing balance at a maximum of Sh20,000.Others services provided by the Saccoinclude Bankers cheque, FranchaiseBanking, Mobile service/point of sale,AM, M-sacco, Mpesa and conferencehall.

Te FOSA products on offer includeBoda Boda Saving account, MamaMboga Saving, Vijanaa Acount, JimuduSavings Account, Jolly Kids Savings Ac-count, Biashara Saving account, FixedDeposit Account and Institutions Ac-

countLoan Products

Stegro Sacco encourages the youth,farmers and other institutions to applyfor loans to help them boost their busi-ness. Its Biashara loans are flexible asthey have the following features; Busi-ness working capital loan to supportbusiness stock, expansion; Loan termup to 12-24 months; Flexible repay-ment frequencies e.g. monthly/weekly/daily; 6 months account operations andaffordable interest rate flat per annum.

The Stegro Sacco headquarters.

6 OCTOBER - NOVEMBER 2015 | Sacco Times


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ADVERTORIAL

ATM Services

Te Sacco provides AM cards to cus-tomers to access AM services usingCo-operative Bank branches across thecountry.

Te AM services are connected to theSacco link network of Co-operativeBank and this means members can ac-cess their cash at any Co-op Bank AMcountrywide and any VISA brandedAM or merchant outlets like super-markets.

Te Sacco link card allows the mem-bers to withdraw cash, check balance,change PINs and get a mini statement.Customers can also pay utility bills likeelectricity bills at the AMs. Te AMsoffer 24 hours service.

Salary Advance

Te Sacco gives salary advances to cus-tomers who bank regularly with them.Salary advances can be either for schoolfees, starting up business like mamamboga saving, youth who operate bodaboda and other institutions.

Salary advance is processed and paid ina day and attract an interest rate of 8 percent. Te 50 per cent rule is also takeninto consideration in offsetting salaryadvance. Tis is a new product wheremembers have an option of offsetting

Stegro Sacco members waiting to be served in a banking hall.

Some of the Stegro Sacco projects / investments.

7OCTOBER - NOVEMBER 2015 | Sacco Times

>>NEXT PAGE


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the existing salary advance at the rateenjoyed by members.

Investments

Among other investments the Saccohas are Stegro Oil, Stegro ea NurseryBed, Stegro College and Stegro EPZ fac-tory.

Te Saccos good management whichensures transparency and dedicationhas seen it attract partners like the Co-operative Bank, ABC Bank, K-Rep Bankand KCB, among others.

Its share per capital has also grown from

Sh26053336.30 to Sh36246198 while theshareholders have increased from 4,704to 6,170.

which include business loan, micro-credit and motorbike loans.

Te Sacco is about to complete its ownfactory where 95 per cent of the workhas been done. Once the factory is com-pleted 85 per cent of the products willbe exported and the rest sold locally.

Te factory is owned by farmers throughthe Sacco where 52 per cent of its sharesare owned by Stegro Sacco membersand the rest is being sold to the public

where the targets are individuals andinstitutions. Te factory is fully licensedby relevant bodies including EPZ andea Board of Kenya.

Te main reason why the factory wasstarted is to end the monopoly of Kenyaea Development Agency KDA, to im-prove the tea prices since KDA is pay-ing less to farmers and to do away withmiddle men who have been exploitingfarmers as well as create jobs for the lo-cals.

Te factory is expected to operate to-wards the end of this year. Currentlythey have floated tenders for the supplyof fire woods to the factory and trans-portation of green leaves from buyingcanters to the factory.

Over 10,000 members have registeredto supply raw materials to the new fac-tory as soon as its ready to process it.Te management has already estab-lished a market for their final products.

Stegro Sacco members reap big from new products


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STEGRO SACCO LTD

HEAD OFFICE Silibwet

P.O Box 251-20400, BometTel: 020-104352/2045515/020-2026608

BRANCHES

Olenguruone Branch -Tel: 02021772586 |Kapkoros Branch -Tel: 0518003801

Merigi Branch -Tel: 0518011720 | Tegat Branch -Tel:0202172583

Kamogoso Branch - Tel: 0518003802

FOSA PRODUCTS AND

SERVICES

F Boda Boda Savings AccountF

Mama Mboga SavingsF Vijanaa AccountsF Jimudu Savings AccountF Jolly Kids Savings AccountF Biashara Savings AccountF Fixed deposit AccountF Institutions Account

BACK OFFICE PRODUCTS

F School Fee LoanF Biashara LoanF Emergency LoanF Jiinue Group LoanF Kilimo Bora LoanF Development Loan

LONG TERM ADVANCE

OKOA ADVANCE

F 6 months

F Interest rate on reducingbalance

F Minimum 20,000

F Bankers Cheque

F Franchaise banking

F Mobile services / Point ofsale

F ATM

F M-Sacco

F M-pesa

F Conference Hall

OTHER PRODUCTS

SHORT TERM ADVANCE

F Recoverable in onesmonth time

F Crop Advance

F Salary Advance

F Pension Advance

VISION:

To be a leading Sacco inthe provision of

Excellent, Efficient andaffordable financial

and other diversifiedservices in Kenya.

MOTTO:Together We

Succeed

MISSION:

To Mobilize and prudentlyManage Members

Resources in Order to Offer

AffordableFinancial Services, CreateWealth and improve their

Standard of living.

STEGRO


10/48


FOCUS ON TOP PERFORMING SACCOS IN MOUNT KENYA

By Hilday Mutugi

Matatu Saccos across the

country are coming up with

creative and unique ways of

beating competition.

Te Matatu Saccos were formed in or-

der to bring sanity to public transport.

Te Government requires matatu and

bus operators to organise themselves

into Saccos or companies for ease ofmanagement and enforcement of dis-

cipline.

It is mandatory for all those seeking a

ransport Licensing Board (LB) cer-

tification to be members of a Matatu

Saccos in Kenya or belong to a com-

pany.

Matatu operators, who constitute 80

per cent of the public transport sys-

tem, are estimated to have an annual

turnover of Sh73 billion. o its credit,the Matatu sector buys over Sh4 bil-

lion insurance premiums every year

and remits over Sh1 billion taxes an-

nually.

Te sector continues to play an im-

portant role in the growth of public

transport and some have now be-

come respected brands in the sector.

One of the Matatu Saccos that have

come up with unique way of beating

competition is KUKENA Sacco based

in Kirinyaga County.

Te Sacco which is the biggest in the

region has started upgrading its fleet

to ensure the members have the latest

vehicles in order to ensure passenger

comfort and also reduce the cost of

repairs.

According to KUKENA Sacco Chair-

man, Jackson Mbuthia, they are em-

powering their members financially

to buy new vehicles.

Speaking during the Saccos Annual

General Meeting held at Roswan Ho-

tel in Keruguoya town, Mbuthia said:

Te passengers enjoy travelling in at-

tractive vans and buses and therefore

we are empowering our members to

buy the modern vans and buses.

He added that the upgrade of the fleet

means that they will spend less mon-

ey on maintenance.

Te Sacco has also introduced a con-

cept for school transport where it of-

fers separate transport for boys and

girls.

Although the Sacco has had such

arrangements with schools like St

Agnes Boarding School, Kutus Mu-

nicipality and St Marys SecondarySchool Muthithi, the issue has been

given weight by the recent incident

where a bus carrying boys and girls

to Nairobi was intercepted as Sagana

where it was found that the students

were engaging in shocking behaviour.

KUKENA Sacco is among those cited

as having had a major contribution to

the success of orderly transport sys-

tem that is run by professionals.

oday, KUKENA Sacco is arguablyone of the most recognised and re-

spected brands not only in Kirinyaga

but also in Nyeri, Embu and parts of

Nairobi. When it was thought that

chaotic public transport could not

build a strong brand, KUKENA Sacco

has proved such as just myths.

Tis recognition is driven by the con-

sistency of good customer service

Kirinyaga Matatu Sacco ups

game to beat competition

Kukena Sacco headquarters in

Kirinyaga County.


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FOCUS ON TOP PERFORMING SACCOS IN MOUNT KENYA

sociated business including parcel

services, a petrol station, a tyre dis-

tribution shot and transport shuttle

services using jointly owned vans and

buses.

According to Mbuthia the success

of the Sacco is due to working with

highly skilled and competent staff,

visionary leadership by the board of

directors, cooperation between the

members, the directors mutuality

and support from the community.

We put customer first. We listen to

criticism and implement positive

change. We undertake continuous

staff training of employees, drivers,and the board of directors on es-

sentials of good customer service.

We also have exchange programmes

held with similar service Saccos, says

Mbuthia.

One major advantage that has helped

win KUKENA more customers and

admiration is the consistent disci-

pline of their drivers. Tey are cour-

teous and are genuinely concerned

about the welfare of the passengers.

Tey also respect road rules and donot drive their vehicles at dangerous

speed.

Te Sacco has an active disciplinary

committee that disciplines errant

drivers and other employees. It also

maintains a 24-hour customer ser-

vice desk, where those with issues to

raise can call any time of the day and

night.

Te Sacco also runs a computerised

fleet management and car track-ing system to ensure that the vehicle

owner does not lose money to rogue

drivers.

Te member also benefits from the

control of vehicle revenues as all of

the Sacco stages are manned by expe-

rienced staff.

that the Sacco has maintained since

its inception.

For Kirinyaga County, where the Sac-

co was born, the honour of being the

home of people who saw opportu-

nity in structured and professionally

run transport management system is

priceless.

oday, the 250-strong membership

Sacco has diversified to transport as-


12/48


By Hildah Mutugi

W

ananchi Sacco in NyeriCounty has entered into apartnership with companies

such as Lifan Company to enable farm-ers acquire machinery to help them addvalue to their farm produce as well asgenerate additional income.

Te idea of forming Wananchi Saccowas mooted in 1991 by the then NyeriDistrict ea Committee and ea Officerof 1991 1993 periods.

After the consultations with tea grow-ers from the three tea growing areas,namely; Mathira, etu and Othaya Divi-sions, the society was formed with the

aim of helping tea growers to improvetheir saving and enable them to borrowfor different purposes such as develop-ment, school fees and funding microenterprises.

On 14th May 1992, the Society wasregistered by the Commissioner of Co-operatives in the Ministry of Co-opera-tives under the name Nyeri District eaGrowers SACCO Society Limited underCertificate No. 6531.

By then, an interim management com-

mittee of ten members manned Wa-nanchi Sacco with only 827 members,two employees and a share capital ofSh1.2 million.

wenty-four years later it has grown tohave over 45,000 members, 90 employ-ees, share capital of over Sh65 million,deposits of over Sh460 million and aturnover of over Sh149 million and aloan portfolio of over Sh400 million.

Speaking to farmers recently, the SaccoMarketing Officer, Peter Mwariri, saidthe partnership with firms like Lifan has

seen several youths venture into bodaboda business which has greatly helpedthem improve their living standards.

Lifan has also been providing farmerswith machinery while Wananchi Saccooffers loans for the acquisition of theproperty and facilitate training of mem-bers.

Mwariri said the Sacco was commit-

ted to improving horticulture farmingin Arid and Semi Arid areas within andoutside Nyeri County by helping farm-ers procure water pumps.

Wananchi Sacco vision is o be theleading and preferred Sacco of choicein mobilisation of funds through wellresearched products and services in theRepublic of Kenya while the missionit to provide well researched financialproducts and services to economically

active Kenyans through well interlinkedbranches for them to achieve their so-cial economic needs.

Te Sacco is governed by the Co-op-erative Act and the Rules and the es-tablished By-Laws. Te Managementstructure is well established and en-sures democracy, transparency, ac-countability and good return on Invest-ments to members.

Te members have the supreme au-thority. Te members elect delegates

who discuss and give the Sacco man-date of operations in the Annual Del-egates Meeting (ADM) which is held atthe end of every year or can be held asSpecial ADM for special agenda

Tere is a Full Management Board thatcomprises nine members which is sub-divided into various sub-Committeesas shown below: Finance and Adminis-tration Committee; Credit Committee;Education/marketing Committee and

Audit committee.

Te division of the Full Board into SubCommittees is for ease of administra-tion and management of the Sacco andthe subcommittees have specific duties.Tere is a Supervisory Board that com-prises three members.

GROWTH STRATEGY

When Wananchi Sacco started in 1992the members were only tea growers in

Nyeri but due to changes in environ-ment and growth challenges togetherwith the members needs, WananchiSacco expanded to other sectors likedairy, women activities, youth andother off farm business entrepreneurialservices.

Competition, technological changesand availability of information havemade the Sacco to undertake strategicsteps to ensure that it remains relevantto the community it is serving.

Wananchi Sacco draws its membershipand members from the Small-scalesfarmers and micro-entrepreneurs whocontribute savings in form of Sharesand Deposits as well as the Front-OfficeServices.

Trough the Savings, the members areable to access credit facilities and otheravailable services conveniently andcheaply.

Nyeri: Wananchi Sacco boosts youth, farmers

Wananchi Sacco members at a past AGM.

NEWS


13/48


By Nixon Kavai

Since January this year thousands

of delegates have been attend-ing their Saccos Annual Gen-

eral Meetings (AGMs) or Annual Del-egates Meetings (ADCs) where theyare briefed on their Society financialperformance on the year ended.

Te AGMs or ADMs are also the fo-rums where the delegates decide theway forward for their Saccos, includ-ing booting out officials who fail to ac-complish their tasks.

For the above reasons it is impera-

tive for Sacco members to attend theAGMs or ensure their voice is heardduring the ADMs.

During the AGMs or ADMs the follow-ing tasks are carried out.

Review resolutions

Te first agenda of any Sacco AGM isoften to run through the minutes ofthe previous meeting to remind mem-bers where the organisation is comingfrom and what it intends to do.

It benefits those who attended anddid not in equal measure becausethen one can take the managers or theboard to task on some steps. Membersshould take keen interest in the min-utes to confirm whether the resolu-tions reached during the past meetingwere captured accurately.

To ascertain financial position and per-

formance

Before the date of the meeting, the di-rectors prepare and circulate a copy

of audited accounts for approval andadoption.

Te financial statement gives themembership a clear picture of per-formance and whether it is prudentto continue being a member, keepingthe regular contributions constant, re-ducing the figure or raising it based onthe returns.

Terefore, before the AGM, go throughthe financial statements by compar-ing with the previous years to gatherthe trend of performance. If there is adecline, demand to know the under-lying factors and propose ways andmeans of improving performance.

Lastly, you monitor revenue growth.Since dividends are paid on net prof-

its, a member can propose how re-lated expenses should be treated toimprove future returns.

To get the outlook

At the AGM, one gets the chance togather how the directors are planningfor future growth. Based on perfor-mance, the directors will propose ei-ther a dividend pay-out or retainingearnings.

You should attend to raise issues onthe earned profits for the past year.

Importantly, members should readthe recommendations of the auditorsopinion on the financial statements asthe true representation.

o network with future loan guaran-torsOne of the key requirements in access-ing a sacco loan is to have memberswith significant deposits or sharesguarantee the proposed amount.

Tis requirement is a challenge tomany sacco members who want toborrow but have no one to guarantee.Tis may delay ones projects.

Te AGM, one gets a chance to meetother members who are potentialguarantors and promise you wouldreturn the favour. A wide network of

sacco friends increases chances ofgetting easy

Appraising directors

Te directors as the managers of theorganisation must be appraised andmembers decide how to compensatethem and decide their fate on theboard. Like employees, the directorsneed to be remunerated as an incen-tive or reward for managing the saccoon your behalf. Tis depends on theperformance score card.

To read your wish-listMembers get the rare opportunity toraise issues outside the agenda of theday. Te Any Other Business (AOB)session is where the real matterstouching on your return on depositswould be discussed. It is the time topropose ways of enhancing Scco per-formance. Tis, probably, is why youshould attend the forthcoming AGM.

Why Sacco AGMs are crucial

Cosmopolitan Sacco AGM.

NEWS


14/48


FOCUS ON SOME SACCOS IN NAIROBI

Asili Sacco lives up to its visionBy Nick Kavai

Asili Sacco continues to live

up to its vision of being the

preferred Sacco in provision

of quality service and share-holders

benefit.

Te Sacco, whose mission is o con-

tinuously mobilise members savings

for provision of sustainable competi-

tive financial services by using ap-

propriate technology while adhering

to cooperative principles for the ben-

efits of the share holders, has become

the place of choice for those seeking

good returns on their investments.

Asili Sacco Society Limited was start-

ed in 1972 with members drawn from

Ministry of Environment and Natural

Resources, Forest Department now

Kenya Forest Service (KFS), Kenya

Forestry Research Institute (KEFRI),

National Environment Management

Authority, Kenya Wildlife Service

(KWS), Kenyatta National Hospital

and other ministries. Currently, the

Sacco has opened the common bond

and now boasts of a membership ofover 10,000 with the ratio of women

to men being 1:3.

Te success of the Sacco depends

greatly on quality service and it is in

this endeavor that during a recent ed-

ucation drive at Kenya Forest Service

(KFS) headquaters, the management

under the leadership of the Chair-

man, Evans Kegode Aluda promised

members to expect improved servic-

es and dedication.

Members were encouraged to have

confidence in the new management

and improve their savings in order

to maximise on the products in Asili

Sacco.

Innovativeness has been the back-

bone of improved profit which has

ensured tailor made products to suit

Asili members needs through provi-

sions of loans to members. Te Sacco

continues to strive for greater heights

by recruiting new members while re-

taining the current members steered

by the customer service charter.

In the recent past the Sacco has been

involved in giving back to the society

through corporate social responsibil-ity with beneficiaries including Lit-

tle Sisters of the poor (Kasarani) and

Tika Karate childrens home (Tika).

During the event held at KFS HQs the

management issued Asili branded

t-shirts and pens to members an ac-

tivity that has been carried out in all

the counties to all Asili members and

partners.

It is believed that through hard work

and co-operation Asili will propel to

greater heights as the Sacco of ourfuture as enshrined in its motto ASILI

OUR SACCO OUR FUURE.

Te objectives for which the society

was established include: o encour-

age thrift among its members by ac-

cording them an opportunity to accu-

mulate savings; o create and develop

a source of funds for lending to quali-

fied members at comparatively low

and reasonable rates of interest; o

provide an opportunity for its individ-

ual members to improve their respec-

tive economic and social conditions-,

and to perform the functions and ex-

ercise the powers designated for sav-

ings and credit co-operative societies

under the applicable law.

Asili Sacco Customer Service Char-

ter sets out the standards of service

members expect.

We want to provide you with the

best possible service in a caring and

efficient way. Te charter sets out re-

sponse policy for contact with us by

telephone, email or in person. It also

gives guidance on how Asili Sacco

staff are expected to behave and how

we receive and deal with complaints

and praise, says the Chairman.

Te Charter states: We are commit-

ted to offering you excellent service

with honesty, transparency, respon-

siveness and fairness; We commit

ourselves to: Our services are free,

and we up hold the ethics in a cor-

ruption free environment and we will

provide you with clear information

about our services and products.

Asili Sacco CEO, Mathias Oliech after receiving awards during a past Ushirika

Day celebrations.


15/48



Stima Investment wins big in

2015 Ushirika Day CelebrationsBy Nick KavaiS

tima Investment bagged nu-

merous trophies during the

2015 Ushirika Day celebrations

held on July 4, this year at Uhuru Park.

Te Sacco scooped four trophies in

various categories. It emerged first

position in highest return on invest-

ment; first position in best housing

and investment projects; first posi-

tion in the most consistent housing(best housing and investment pro-

jects) and first position in the high-

est savings housing and investment

co-operative.

Stima Investment is an investment

company registered under the co-op-

erative act whose main mandate is to

carry out investment activities using

members funds.

It has successfully completed putting

up Stima Investment Plaza, StimaInvestment Plaza II, Stima Village at

Syokimau and sale of lands in differ-

ent regions of the country plus trad-

ing in equity and money markets.

According to the Chief Executive Of-

ficer, Nelson Irungu, the firms core

values include quality which sees it

always endeavour to demonstrate

the highest possible quality in daily

work and interaction with mem-

bers, clients, suppliers and all other

stakeholders and integrity where itupholds honesty, transparency in

all its management and investment

dealings.

Others are innovation where it adapts

creative ways to increase the wealth

of members through new products

and services and social responsibil-

ity where it carries out operations in

a socially responsible manner and

team work as it believes in the syn-

ergy principle and to always harness

individual strengths to increase out-

put.

Te firm has entered into a partner-

ship with various partners in a bid to

serve the members more efficiently.

Te partnership ensures members

and non-members of Stima Invest-

ment who wish to buy houses and

plots sold by the co-operative have

easy access to cash.

Late last year the firm entered into a

partnership with Rafiki which has set

aside Sh300 million for the members

to benefit from credit facilities. Stima

Investment has a membership of over

30,000 members.

Our partnership with Stima Invest-

ment Co-operative Society provides

an opportunity for its members and

non-members to access credit facili-

ties that will promote home acquisi-

tion as well as construction, read a

statement from Rafiki Microfinance

Bank.

Stima Sacco has been aggressively

seeking new members by diversifying

its products offering. It has increased

its membership and asset base to

move up the ranking ladder to posi-

tion three from fifth.

In July last year Stima Investment Co-operative Society handed over its first

residential housing project in Syoki-

mau, Machakos County. Christened

Stima Village, the residential housing

project came ahead of the societys

commercial projects, which include

Stima Plaza and Stima Mall.

Te project, located 3.5km off the

Mombasa-Nairobi highway, com-

prises a total of 76 maisonettes - 35

three-bedroom units and 41 four-

bedroom ones. Speaking during theceremony, Stima Investment Co-

operative Society Chairman, Sigi-

lai Kirui, said their next residential

project will be on Kangundo Road in

Machakos County.

In July last year Stima Investments

broke the ground for construction of

housing units, to sit on a five-acre plot

Sigilai Kirui, Chairman Nelson Irungu, CEO

CONTINUED ON PAGE 16


16/48


NEWS FOCUS ON SOME SACCOS IN NAIROBI

Chai Sacco to train youth groupsBy Joseph Ngure

In response to a challenge by Unit-

ed States President Barack Obama

during his recent visit to Kenya

for firms to empower the youth with

the necessary skills, Chai Sacco has

embarked on a youth empowerment

campaign in Nairobi County target-

ing 200 youth groups who require fi-

nancial and management training.

Te campaign which is being held in

various parts of Nairobi is coordinat-

ed by Chai Sacco and various finan-

cial experts.

It aims at empowering Nairobi-based

youth groups and businesses with

financial and management skills,

among other types of training.

Te Sacco in a statement released by

the Chairman, Boniface Ayub, said

the future growth of the Kenyan econ-

omy would require a well-educated

and financially informed population.

As such, we need to empower suchyouth groups and social clusters so

that they can contribute to the socio-

economic development of Kenya and

help attain maximum potential as

echoed by President Barack Obama

at the Global Entrepreneurship Sum-

mit 2015, he said.

Ayub also said the Sacco is ready to in-

vest heavily in well-structured youth

groups with serious investment po-

tential and is setting aside money to

be extended to these groups in form

of grants. Chai Sacco was registered

in 1973 to offer financial services to

KDA employees both at the factories

and Head Office.

In 1999, Front Office Service Activity(FOSA) was started and has evolved

to a fully-fledged Deposit aking

Society with branches in Nairobi

and Litein and a marketing office in

Mombasa. Te Society intends to

open seven more branches and 25

marketing offices countrywide. Te

common bond was opened in 2005

to include all members from well-es-

tablished business organisations and

tea farmers. Te society has widened

its membership to include business

people, investors, and savers beyond

the KDA employees.

Chai Sacco has been recognised in-

ternationally by the World Council of

Credit Unions (WOCCU) in Microfi-

nance Expansion Programme (MFI)

among other sixteen Saccos in the

country as a model for others.

Te Society has also been selected byMicro-Save Africa in product Devel-

opment Programme from micro en-

terprises to assist the organisation in

product development process.

Its core values which constitute bed-

rock beliefs and values that drive

the Sacco are ransparency and Ac-

countability, Equality, eam work,

Professionalism and Integrity

Its vision is to be A Sacco provid-

ing excellent financial services to itsstakeholders while the mission it o

continuously provide quality finan-

cial products and services through

emerging technology, efficient cus-

tomer care and motivated workforce

to economically empower our stake-

holders.

Boniface Ayub, Chai Sacco Chairman

and 76 luxury maisonettes of which

40 are three-bedroom and 36 four-

bedroom. Provisional prices for the

houses were pegged at Sh9.2 million

and Sh9.85 million for the two- and

three-bedroom units respectively.

Land prices in Syokimau have shot up

after the dualling of Mombasa Road

and the ongoing construction of a

Stima Investment wins big in 2015 Ushirika Day CelebrationsFROM PAGE 15

commuter rail network, with a termi-nus being built at the neighbourhood.

Stima Investments was registered in

2005 with one of the objectives being

to invest in real estate both for rental

and sale to members and the public.

Te co-op has engaged in various

projects in the past such as devel-

oping the Stima Investments Plaza

whose expansion was completed inJune 2011. Te fully occupied com-

mercial building is its main income

earner.

Besides real estate development, the

co-operative society engages in buy-

ing bulk land across the country, sub-

dividing and selling it off to its mem-

bership of over 4,000.


17/48



Stima Sacco lures Kenyans

in Diaspora in growth planBy Joseph NgureS

tima Savings and Credit Co-op-

erative Society Limited (Stima

Sacco) which was established in

1974 with the sole objective of uplifting

the members social-economic well-

being has embarked on a campaign to

bring on board Kenyans in the Dias-

pora.

Stima Sacco is a leading Kenyan, fast

growing and licensed DS (Deposit

aking Sacco) with an asset base of

Sh17.6 billion and a membership of

over 45,000. Its vision is to be a market

leader in the provision of world class

financial services to the members.

Te Sacco in its 2015-2020 Strategic

Plan aims to grow through innovative

products, unparalleled customer ser-

vice, aggressive resource mobilisation

and expanded distribution channels.

In the past six years, the return on

members savings has been 11 per cent

to 12 per cent interest deposits and

shares, respectively. Members can also

obtain credit at better rates than those

offered by commercial banks.

Te Stima Sacco Chief Executive Of-

ficer, Paul Wambua, members of the

Board and Management representa-

tives have been meeting members

and partners to educate them on the

Saccos products and services, and toreceive their feedback. Tis is helping

them to improve the quality of services

offered to the members.

On 11th July, this year, the Sacco repre-

sentatives met Kenyans living or work-

ing in Dallas, United States at Holiday

Inn while on 18th July, 2015 they met

others residing in Huston at Houston

Marriot West Chase Hotel. On 19th

July, this year, they met other Kenyans

living in Minnesota, United States at

Jambo Africa Restaurant. Te objective

of the meetings was to recruit Kenyan

nationals to join Stima Sacco.

Stima Sacco in its bid to meet the cus-

tomers demands and in response tothe changes in the market, on July 1,

2015, made policy adjustments on

loan products.

Te changes include; Increased the

loan tenor of Mpawa Advance from 30

days to 60 days; Increased the maxi-

mum loan amount of Mpawa-Advance

from Sh10,000 to Sh20,000 payable in

two monthly installments; Changed

interest computation method for all

short term loans (repayment period of

up to 12 months) from reducing bal-ance to straight line basis and changed

interest of salary advance from 3% to

5%.

Te other features of the products re-

mained the same.

Te Sacco has registered with Credit

Reference Bureau (CRB) meaning

non-performing loans (loans unpaid

for 90 days) will be listed as provided

under Section 18 of Te Credit Refer-

ence Bureau Regulations 2013.

Te members can also withdraw a

maximum of Sh40,000 using their Sac-

co link AM Card from Stima Sacco.

Stima Sacco has also entered into a

collaborative pact with Family Bank. In

the pact the Sacco members can now

undertake depository services in all

Family Bank branches countrywide. A

member only needs to quote his or her

number and account name to enjoy

Family Bank services.

In the deal with the bank the money

deposited reflect in the Sacco and one

can deposit in any of the following ac-

counts: Alpha Deposit, Share capital

account, Prime account, Junior star

account, Msingi bora account, wiga

account and Mustard account.

In April 2003 the Sacco responded to

members banking needs by introduc-

ing the Front Office Service Activity

(FOSA) to offer banking services to its

members. o date the Sacco has five

branches in Nairobi, Mombasa, Ki-

sumu, Nakuru and Olkaria.

Te objective of establishing Stima

Sacco was to enhance members indi-

vidual socio-economic status by way

of mobilisation of savings and afford-ing them credit at fair and reasonable

rates.

Te Saccos mission is Empowering

members for life while the core values

are teamwork, responsiveness, integ-

rity, innovation and professionalism.

Te motto is towards a prosperous fu-

ture together.

Stima Sacco CEO, Paul Wambua


18/48


FOCUS ON TOP PERFORMING SACCOS IN NAIROBI

Ufanisi Sacco promotes thrift among membersBy Joseph Ngure

Ufanisi Sacco Society Ltd which

was registered on 6th July 1973

as a Savings & Credit Society

for employees of Agricultural Finance

Corporation has continued to live up

to its core business of promoting thrift

among members by mobilising savings

and in the process creating a source of

funds for onward lending to members

at a fair and reasonable rate of interest.

Te Society which has since opened its

membership to the public is manned

by competent staff ready to serve the

members in a fast and efficient man-ner.

And in a bid to educate the members

on the wide array of products and ser-

vices on offer, Ufanisi Sacco on August

15, this year held Members Education

Day at Kenya Institute of Curriculum

Development (KICD), Muranga Road,

Nairobi. During the function the mem-

bers were informed of the products

and services on offer and encouraged

to continue investing in their Society.

Te Sacco assists members by advanc-

ing the following types of loans:- De-

velopment loans; Emergency loans;

School fees loans and short-term ad-

vances known as Members Personal

Advances (MPA) for one month, three

months, six months and one year.

Ufanisi Sacco mission is to empower

members financially by promoting

thrift and offering them affordable and

sustainable financial services using

modern technology.

Te Society which was registered with

SASRA on 22nd July 2013 encourages

thrift among members by affording

them an opportunity to accumulate

their savings.

It also creates a source of funds where

members can borrow at a fair and rea-

sonable interest rate and also provides

members with credit for provident and

productive purposes.

Te objectives for which the Society

was established are: o promote thrift

among its members by affording them

an opportunity for accumulating their

savings and deposits to create a source

of funds from which loans can be made

available to them for purposes of prov-

idence or production or both at a fair

and reasonable rate of interest.

o provide an opportunity for each

of its members and their immediate

community to improve their respective

economic and social conditions.

o offer the members complementary

savings and credit services and other

financial products.

o ensure safety and soundness of the

members funds through risk manage-

ment programme or any other appro-priate insurance scheme.

o ensure progress of members

through continuous education, train-

ing and dissemination of information.

o cooperate with other Cooperatives

in order to promote members interest

and in furtherance of this object, the

Society is an affiliate in National Coop-

erative Organisations.

o perform within the relevant law

(Te Act, the Rules and the Regula-

tions) and these By aws, all those acts,

deeds and things necessary to further

enhance, promote and encourage any

or all of the foregoing purposes and

objects provided that such acts, and

things are approved by the Annual

General Meeting.

Te Saccos vision it to be a leading in-stitution, in the provision of financial

and advisory services to its customers

in a dynamic environment while the

core values are integrity, customer Fo-

cus, team work, strategic Leadership,

networking and innovation.

Te Sacco which upholds universal

cooperative values as entrenched in

the Sacco by-laws draws it member-

ship from employees or ex-employees

of Agricultural Financial Corporation,

members of staff of Ufanisi Sacco So-ciety, employees of parastatal bodies

and other agencies approved by the

board as per the membership policy

and employees in the private sector, as

approved by the board.

For one to join the Sacco he or she is

expected to have the following qualifi-

Unfanisi Sacco members during the AGM.



19/48



cations: Is not less than 18 years of age,

if a natural person; Is not a member

of another salaried based Sacco with

competing interest as Ufanisi; Is not

directly or indirectly a money lender

or carrying such activities that may

be detrimental to the objectives of the

Sacco; Is of good character and is amember of the immediate family of the

primary member.

PRINCIPLES

Voluntary and open membership

Te Society is always guided by the

principle of voluntary and open mem-

bership in its member recruitment

drive without political, ethnic, reli-

gious, gender or social discrimination.

Democratic member control

Te Society is fully controlled by mem-

bers who have equal voting rights on

the basis of one member one vote.

Economic participation by member

Members contribute equitably to thecapital of the Society and share in the

results of its operations.

Autonomy and independence

Te Society operates on mutually ac-

ceptable terms with its stakeholders

who ensure its autonomy and inde-

pendence.

Education, training and information

Te Society fosters reciprocal, ongo-

ing education programmes for mem-

bers, leaders, staff and the community

so that they can teach and learn from

each other or from the appropriate re-

source persons in understanding and

carrying out their respective roles.

Cooperation among cooperatives

In order to better serve the interests of

the members and the community, the

Society actively co-operates with other

co-operatives locally, regionally, na-

tionally and internationally.

Concern for community in general

Te Society shows concern to the com-

munity in which it exists and operates.

FROM PAGE 18

Kenversity holds Special General MeetingBy Correspondent

Kenversity Co-operative Savings

and Credit Society Limited held a

Special General Meeting on Sep-

tember, this year at Kenyatta University

Science Zone Hall.

According to the Secretary, Dr Ambrose

Jagongo, the agenda of the meeting was

confirmation of the previous minutes of

the Special General Meeting held on 27th

September, 2014; receiving Chairmans

remarks; receiving Supervisory Com-

mittee Chairmans remarks; considering

and approving the proposed budget for

year 2016; considering and approving

proposed borrowing power and consid-

ering and approving Bosa Loans Insur-

ance and Risk Management Fund.

Kenversity Co-operative Savings and

Credit Society Limited was registered as

a Savings and Credit Co-operative Soci-

ety in 1976. Originally membership was

drawn from Kenyatta University but now

it has opened up its common bond to the

East Africa.

Te Saccos Mission is to mobilise sav-ings, provide friendly and affordable

credit facilities and other financial ser-

vices for customers while the vision is

to be the most dynamic and profitable

Sacco in East Africa.

Te Saccos Slogan is uungane uji-

jenge while the philosophy is being

pro-active to equitable wealth creation

and management in response to the so-

ciety and members/customers needs.

Te aspirations are: Construction of an

office block on the existing society plotin Kahawa Sukari; Increase the societys

capital base; Provide a higher rate of re-

turn on members deposits/savings, Pro-

vision of more products to the members;

Achieving full computerisation status

and initiate more revenue avenues for

the members.

Kenversity Board of Directors comprise

Dr George Makokha (Chairman), Job

Maina Tuo (Vice Chairman), Dr Am-

brose Jagongo (Secretary), James Mutei-

thia (reasurer) and members Dustan

Indimuli, Mrs. Winnie Mwangi, CharlesNderitu, Patrick Kilonzo and Mary Ngugi.

A section of Kenversity banking hall


20/48



Waumini Sacco conquers new heights

Waumini Sacco conquers

new heights

Fr George Maingi

Agnes Mbuya

Brunal Khumba

By Nick Kavai

Waumini Sacco based in Westlands, Nai-

robi has continued to live up to its vi-

sion of becoming the fastest growing

Sacco by providing, effective value added prod-

ucts to its customers.

Te Sacco whose mission is to Empower custom-

ers through provision of innovative products and

efficient services through swift resource mobi-

lization, has become the investment choice for

most Catholic faithful and parishioners.

During the Annual Delegates Meeting held on

March 21, 2015, the delegates passed a number ofresolutions for implementation.

In the resolutions the Sacco opened its doors to

all Catholic faithful and parishioners as from May

this year. Tis is enabling it to increase its client

base and returns.

Te delegates also resolved to increase the share

capital to a minimum of Sh10,000. During the

35th ADM in 2014 the delegates resolved that the

share capital be increased from a minimum of

Sh5,000 to a minimum of Sh15,000 distributed to

two years thus a minimum of Sh10,000 in 2015.

Te Sacco also plans to open two branches this

year in Kisii and Nakuru. One branch was set

to be opened last month while the other will be

launched in October. Te members around these

two counties are encouraged to take advantage of

the services that have come or will come closer to

them. Waumini Saccos desire is to take services

closer to members.

Te delegates also resolved to raise the entrance

fee from Sh200 to Sh500 after considering the

market trend and other factors. Tis increase inentrance fee will benefit members as it ensures

increased income, hence increased returns to

members.

Since the Sacco has started implementing the

opening of branches and after research done

among Saccos, the management decided that all

loans paid by Waumini Sacco will be channelled

through FOSA.

Tis will enable members to get

their loans faster and it will also as-

sist the Sacco to pay members their

loans within 24 hours for loans below

Sh300,000 as stated in the customer

care charter.

Te Mbanking, AM, over the coun-

ter withdrawals or withdrawals from

any Cooperative Bank POS in the

country. However any payment to

another institution will still be ac-

ceptable from FOSA and the normal

rates shall apply.

Te Sacco has also revised its tariffsfor loan processing and as from June

2015 the Sacco started charging 0.

5% on the amount of loan approved

or Sh200 whichever is higher with a

maximum charge of Sh5,000.

During the Annual Delegates Meet-

ing held on March 21, 2015, a new

Board was elected

and later elections done within the

Board to determine office bearers.

Tis was done as follows: Boardof Directors 1)Fr. Geoffrey Abdalla

Mawa, Chairman, Maurice Otsieno,

Vice Chairman, Agnes Mbuya, reas-

urer, Monica Njoroge, Secretary, Syl-

via Gumo, member, itus Munene,

member, Fr. George Maingi, member,

Francis Kimani, member and Brunal

Khumba, member. Te Supervisory

Committee has Lois Munala, Chair-

person, Susan Wasike, Secretary and

Michael Machaka, member.

During the year the Interest and divi-dends were approved at a rate of 9%

and 9.5% respectively.

STRATEGIC PLAN

Te Sacco also launched its 2015 -

2018 strategic plan during the 35th

ADM held. In the plan the manage-

ment committed to achieving the tar-

gets to ensure Waumini Sacco grows

in leaps and bounds.


21/48



HOUSING

Te delegates were told that the

Sacco had finalised title deed pro-

cessing for phase one to five (Katani

I, II and III, Kitengela and Kantafu);

these were ready for collection from

the Sacco.

Core Values

Waumini Sacco has its core values

and principles which should be as-

cribed to by all the stakeholders of

the Society ranging from suppliers,

customers, staff and the Board of Di-

rectors.

Tese tenets include the following;Servant Leadership, eam work,

Honesty and Integrity, Professional-

ism, ransparency and accountabil-

ity and Innovation and creativity. Te

continuous value addition includes

Customer Centric, Commitment,

Reliability, Confidentiality, Prompt

Service Delivery, Flexibility, Diversity

and Empowerment.

Te Sacco operating principles in-

clude corporate social responsibility

where the Society gives top priority toenvironmental protection in all its ar-

eas of operations and contributes to

national vision based on the country

of operation.

Te ADM is the supreme decision

making organ of the Sacco and is

held once every year not later than

four (4) months after the end of fi-

nancial year.

Representation at the ADM is by the

way of delegates normally drawn

from representatives of both CatholicChurch managed institutions and ex

employees referred to as out of com-

mon bond.

Te Society determines the number

of delegates representing each insti-

tution, however the members elects

from among themselves the del-

egates to fill the available vacancies.

Francis Kimani

Maurice Otsieno

Monica Njoroge

Sylvia Gumo

Titus Munene

By Nick Kavai

Kenyas start-ups will benefit from a partnership be-tween a local bank and a firm with presence in manycountries across the globe.

Te CfC Stanbic Bank has partnered with SeedstarsWorld, the global seed-stage startup competitionfor emerging markets, to identify the best startup inKenya.

Up to 12 of the best start-ups in Kenya will competeto represent the country at the Seedstars World com-petition at the final event in Geneva and win up to$500,000 in equity investment.

Te local entrepreneurs will receive additional sup-port from CfC Stanbic Bank Kenya. CfC Stanbic

Bank in Kenya will act as the main partner for theevent and will explore potential options for collabo-rations and partnerships with the participating en-trepreneurs to empower them to succeed.

It brings together passionate people and also re-flects our entrepreneurial spirit as we help themtake those important first steps in their entrepre-neurial journey, Ben Wandawanda, Head of Busi-ness Banking, CfC Stanbic Bank Kenya, told journal-ist in Nairobi.

Seedstars World expanded its competition to morethan 50 countries in 2015, up from the 36 countries

for last years edition. Its past participants haveraised $20 million together, providing employmentto +360 employees all around the world.

Kenya has consistently proven itself to be an ex-ceptional startup ecosystem and an enabler of bril-liant talent. ogether with CfC Stanbic Bank Kenya,we are very excited to discover and bring support toall entrepreneurs participating in the competition,said Gregory Pepper, Regional Manager for Africa atSeedstars World.

Kenyas start-ups to

benefit from partnership


22/48


By Fredrick Weyimi

Nitunze Sacco formerly known

as MOSACCO has picked a

new board of management

as one way of improving service de-

livery to members.

Te move comes a few months after

the Sacco promoted Patrick Wechuli

to the post of the Chief Executive Of-

ficer after working for the society for

a number of years as a branch man-ager.

Nitunze Sacco which is located along

Mumias/Musanda road in Mumias

town, Kakamega County has also

elected Peter Magero as Board Chair-

man after serving since 2005 as Board

Secretary.

Magero replaced Joseph Ayoi whose

term of office expired last month to-

gether with that of his deputy, Henry

Manya.

Others elected as board members in-

clude Joseph Wasike (vice chairman),

Prodas Okuli (Secretary), Francis

Amboka (reasurer) and the CEO,

Patrick Wechuli.

Te other directors are Ephrem Chi-

tayi, John Lunyiro, Daniel Makwata,Alexander Lukhayo and Henry Man-

ya.

Speaking to Sacco imes in Mumias

town recently, the new chairman

urged the board members and del-

egates to work as a team for them to

compete with other Saccos offering

similar services across the country.

Nitunze Sacco picks new board

to boost service delivery

NEWS

Nitunze Sacco headquarters in Mumias, Kakamega County.Nitunze Sacco Board Chairman, Peter

Magero.

Secretary, Produs Okuli.

A senior official in her office

The CEO in his office


23/48


Magero also asked politicians from

sugarcane growing zones, particu-

larly Mumias zone, to give maximum

support to co-operative societies as

one way of boosting the living stand-

ards of the local communities.

Wechuli takes over from Anerico

Chitayi who has moved to Masinde

Muliro University after working for

Nitunze for 24 years.

Wechuli becomes the third Chief Ex-

ecutive Officer at Nitunze after the

founder manager, Michael Washika

and Chitayi.

Nitunze Sacco, was established in1979 and has three branches, name-

ly; Makunga, Malaha and Nasianda.

Te main office is located in Mumias

town, a few metres from Mumias ACK

Diocese headquarters.

Te society saving deposits stand at

Sh19.297.062.60 .

According to the CEO, the Societys

vision is o be the leading Sacco in

provision of quality financial services

in Kenya while the mission is o mo-bilise and manage resources so as to

offer quality, affordable and sustain-

able products and services that will

uplift members living standards.

Te Saccos strategic plan covers the

period between 2015 -2021. Among

the plans at hand is launch of zero

grazing business to give members ad-

ditional income.

Currently the Society runs Front Of-

fice Service Activities (FOSA).

Te members of the Sacco are drawn

from cane farmers, women groups,

youth groups and teachers. It covers

four counties, namely; Bungoma, Bu-

sia, Siaya and the host, Kakamega.

NEWS

ICT Manager Moses Kongoti, Finance Manager, Patrick Sannu and Mildred

Maelo, Branch Manager.

Nitunze Sacco members being served in the banking hall.

Finance Committee, from left, John Wasike (Chairman), Alexander Lukhayo

(Secretary) and Daniel Makwata (member).


24/48


NEWS

Kibera Sacco gives members hopeBy Stephen Murimi

For over two years, Kennedy Od-ede has been overseeing Kibera

slums residents in Nairobi lendmoney to each other, a process that hasenabled scores of them to engage in in-come generating activities.

Odede, the Chief Executive of Shin-ing Hope for Communities (SHOFCO)founded the Shofco Urban Network toallow slums dwellers to access creditwithout collateral, jobs or even bankaccounts.

Prior to starting the Sacco, Odede in2004 founded the Shining Hope for

Communities (SHOFCO) with passion,20 cents and a soccer ball. Growing upin Kibera, one of the largest slums inAfrica, he experienced extreme poverty,violence, lack of opportunity, and deepgender inequality.

However, Odede also witnessed thepalpable hope that persists in slumsand recognised that people soughtsomething different for themselves,their families and their communities.Visionaries like Martin Luther King Jr.and Nelson Mandela showed Odedethat great, systemic change can comefrom within.

Women like Odedes mother inspiredhim to build the solutions to urban pov-erty through addressing one if its coreobstaclesthe prohibitive level of gen-der inequality.

In 2007, Kennedy met Jessica Posner,a bright and driven American studentstudying abroad. ogether they devisedthe model that SHOFCO utilises today.SHOFCOs innovation is to link girlseducation to deeply-needed communi-

ty-wide services.

Tis increases the value of girls andwomen, invites both genders to par-ticipate in the solution, and allows girlsschools to be portals for large-scale so-cial change.

Odede and Jessicas partnership is aunique, pioneering collaboration in thefield of international development. Bol-stered by grassroots knowledge, they

have dedicated their lives to bringinghope to urban communities.

Te duo added another feather totheir achievements recently when theyjoined Kibera residents in celebratingthe launch of Shofco Urban Network,a Sacco to enable the residents access

cheap loans.

Shofco Urban Network will allow slumsdwellers to access credit without collat-eral, jobs or even bank accounts.

All one needs is to become a member atno cost and save in order to accumulateshares with fellow members acting ascollateral.

Te Sacco which was founded by Od-ede is supported by the American andBritish governments.

It was launched in style in the presenceof US Ambassador to Kenya Robert Go-dec and British High CommissionerChristian urner. Members have raisedSh12.3 million as working capital forthe new Sacco. Te money was raisedthrough interest from consolidatingtheir savings for the last two years andlending them to members to start theirown businesses.

From a single group of single mothers inthe slum in 2013 who were lending eachother money through the table bankingconcept, the network has grown to over3,000 members divided into 300 groups.Te project is run by Shining Hope forCommunities (Shofco).

Up to 86 per cent of the members arewomen, a fact that Shofcos chief ex-ecutive, Odede attributes to the demo-graphics in the slums.

A lot of men are jobless but it is womenwho feel the pain of raising a family be-cause if their children are hungry theyare the ones who bear the burden, hesaid.

Godec assured the crowd of his coun-trys technical and financial supportand asked them to stop depending on

politicians as they had failed to rescuethem from poverty.

President Barack Obama believes inyou. Te United States will be there allthe way and we are beside you, he saidto a wild applause. He added: It is acommunity that builds the nation.

America became prosperous becausepeople came together to build schoolsand factories. You are the only ones that

Outgoing British High Commissioner to Kenya Christian Turner with the Chief

Executive of Shinning Hope for Communities (SHOFCO), Kennedy Odete during the

launch of Shofco Urban Network in Kibera.


25/48


NEWS

can better the slums.

urner echoed Godecs sentimentswhile pledging his governments sup-port.

Communities can be transformed ifsmall groups of people come togetherand support each others endeavoursinstead of waiting for politicians, hesaid.

Te government has invested heavily inKibera through the National Youth Ser-vice projects

Te United States has pledged to im-prove healthcare and education inKenyas urban slums. US Ambassadorto Kenya Robert Godec said his gov-ernment is working with communitiesand partners in slums to develop a jointplan of action for provision of healthservices.

Speaking at the launch of Shofco UrbanNetwork (SUN) in Kiberas Kamuku-nji grounds, Godec said US PresidentBarack Obama is fond of Kenya andwants to see communities in slumstransformed. President Obama caresabout Kibera and he would have lovedto visit the area during his recent visit toKenya, he said.

Godec said he has formed synergy withOdede, founder of SUN, to tap into localpeoples goodwill to improve basic ser-vices and healthcare.

It is communities that build a nationand I believe through Shofco, we willimprove education and healthcare.ogether you can build the Kenya thatyou want, he said. urner said resi-dents of Kibera should work together toimprove their livelihoods.

oday I am not a balozi (ambassador),

I am Shofco, said urner, adding thatthe initiative will empower youth andwomen in Kibera, majority of who arejobless. Odede urged the youth to shundivisive politics, saying it was responsi-ble for poverty and violence in the area.

We do not want politics here. Whenyou are fighting and killing each other,politicians are watching on televisionat a hotel, surprised at what you are do-ing, he said.

By Ken Otieno

Busia Governor Sospeter Ojaamong

has urged youth in the region to join

Saccos to benefit from their prod-

ucts.

Te governor said the conversion of

seven boda boda associations in Bu-

sia county into Savings and Credit

Co-operative Societies was meant

to benefit the youth who can nowaccess loans easily.

Te transformation of the seven as-

sociations into Saccos was spear-

headed by Ojaamong and eso

South Member of Parliament Mary

Emaase.

Emasse helped boda boda opera-

tors in Chakol and Amukura to reg-

ister the Chamu Sacco, which has

Sh7 million capital base.

Speaking on behalf of the gover-

nor, the Chief of Protocol in the

governors office Pekol Mrade said

Ojaamong donated Sh100,000 to

register a Sacco in each Sub-County.

Mrade was speaking at the launch

of the Busia ownship Boda BodaSacco in Busia town.

He urged the operators to apply for

Sacco loans to improve their busi-

nesses.

Mrade called on the operators to

pay the Sh10 levied by the county

government as operation tax.

Busia Governor asks

youths to join Saccos

Busia Governor Sospeter Ojaamong


26/48


By Joseph Karanja

Murata Sacco Limited in part-nership with Family Bankhas rolled out a cheque book

which will ensure the ease of payments,record of financial transactions, con-venience and security of payments bymembers and customers.

Te Murata Sacco cheque clearing part-nership with Family Bank was launchedat Hotel Nokras in Muranga town onSeptember 25, 2015 in a ceremony at-tended by delegates, guests and staff ofthe two institutions.

Speaking at the Special General Meet-

ing, Murata Sacco Chief Executive Of-ficer, James Kimani Mbui termed thelaunch as a big milestone and long-term strategy for the Sacco to realise itsambitious plans.

Mbui said the launch was in line withMurata Saccos goal to benchmark withthe best financial providers worldwide,noting that the cheque book was con-venient to customers.

He saluted the team led by the Market-ing and Public Relations Manager Sa-

lome Mukuria (Project Leader), JacksonMuhuri (IC), Joseph Kahumbi (ChiefCashier) and Anthony Wachira (IC of-ficer) for working tirelessly to ensure thesuccess of the project.

Mbui also saluted the Family Bank teamled by Stephen Mararo, Ireri, CharlesWamuti, Jesse Karimi and Debon Mu-raya for working hand in hand with histeam to successfully execute the project.Te CEO said the Sacco was in the pro-cess of launching AMs in conjunctionwith Kenswitch for members to with-draw and deposit money in major com-

mercial banks.

Mbui told the hundreds of delegatesdrawn from Gatanga, Kigumo, Kange-ma, Muranga area, Kiharu, Kiria-ini,Kandara, Tika Region, Kahuro andMaragwa that the membership has nowhit 121, 450 with a capital base of Sh2.1billion, Sh1.5 billion deposits and Sh1.6billion loan book.

He said the Sacco has 16 branches andthe Nairobi branch will be opened inNovember this year.

Te CEO said plans are at an advancedstage to install AM facilities in a bid tochange the traditional way of bankinghall service delivery and instead adoptE- technology in transactions.

Further the Sacco will in the futureengage in virtual banking services, asalternate transaction channel without

limitation of working time lines. Tiswill be delivered through agency bank-ing to take our services closer to theconsumers, he said.

He added that to achieve the targetgrowth objectives, the Sacco manage-ment has created a process to enablethe staff embrace new culture, attitudesand respectful handling of customers atthe workplace.

o up-scale the quality of human re-source, the employment entry qualifi-cation has been raised to degree level so

as to attract well trained workers. Staffmembers are expected to demonstrateour core values, new culture and re-spectful conduct as they deliver servic-es anywhere. We regard clients highlyand our new motto is my customer, myguest being the most important personin our premises, he added.

He noted that the response from themarket on their new financial products

and agribusiness programmes has en-hanced their confidence that they areright on the business strategy.

In his address the Sacco Chairman,Hiram Mwangi Mwaniki, said with thecheque book the members can nowmake payments at the comfort of theirdesks.

Te Chairman noted that the Sacco has

creatively drawn strategic programmeswhich seek to deepen financial inclu-sion and accessibility to ordinary farm-ers, small, micro traders in the informalsectors.

He noted that the Sacco was out toget hardworking citizens with goodbusiness ideas and projects who havelargely been kept out of the mainstreambanking and financial crediting.

Murata Sacco unveils cheque book

James Kimani Mbui

Chief Executive Officer

Sacco Chairman, Hiram Mwangi

Mwaniki

James Kamau Gachau

General Manager

NEWS


27/48


Wide array of products at Murata Sacco

By Correspondent

Since its formation, Murata Sacco has

been playing a major role in uplifting

the living standards of its members as

well as the residents of Muranga County and

beyond.

Te Sacco has come up with innovative prod-

ucts that have endeared it to Many Kenyans.

For now its effects are being felt in counties

including Nairobi, Nyeri, Kiambu and Kir-

inyaga to mention just a few.

Dairy industry

Already, the Sacco has entered into a stra-tegic partnership with Muranga County

government to strengthen the growth of the

milk industry. Tis has seen the installation

of 35 coolers by the county government to

enhance milk collection and marketing. Te

milk farmers in turn receive their payments

through Murata Sacco.

Te initiative has received support from

Muranga Governor, Mwangi wa lria who re-

cently lauded the Sacco for sharing his vision

to build the countys dairy industry as key

driver of local economy.

Te governor saluted the Sacco for support-

ing his pet project by paying farmers for their

deliveries in time.

Tis Sacco stands out remarkably in reach-

ing out to farmers due to its well established

grassroots branch network, he pointed out.

Real Estate

And in a bid to tap into one of the most lucra-

tive sectors, Murata Sacco recently formed a

subsidiary company to deal with real estateproperty development for the shareholders.

Te firm, Visionary Ventures Limited was

registered and is shopping for land and re-

cruiting shareholders. Te firms objectives

are; o facilitate shareholders/Sacco mem-

bers to acquire land/plots at affordable rates

which can in turn be used as collateral for

loans; o facilitate shareholders to invest in

properties and to facilitate members

put low cost houses using modern

technologies.

Te firm aims to help; Members of

Murata Sacco Limited; Delegates of

Murata Sacco; Board of Murata Sacco

Limited; Employees of Murata Sacco

Limited; Registered Investment and

Self Help Groups; Societies; Com-

panies and any other person.

Rice Farming

Murata Sacco is backing Kirinyaga

rice farmers with necessary facilitiesfor commercial farming. Te Saccos

intervention aims to change the tradi-

tional manual method of cultivation

to use of farm machines for enhanced

yields.

According to members of Mutithi

Rice Farmers Cooperative Society,

the machines have reduced human

labour in land preparation, time and

brought organised farming in the rice

growing lowlands of Mutithi region in

Kirinyaga.

Irrigation

Murata Sacco is supporting farmers

to establish irrigation driven agricul-

tural projects. Under the intervention

of Murata Sacco, a farmer, Julius Irun-

gu Gatuku has been able to transform

his farming from rainfall dependent

to irrigation propelled, under this

measure.

He says: I no longer look up at the

skies for rainfall to water the crops,but I use water from the flowing river

nearby to run my farming projects.

And to tap into the agribusiness, Mu-

rata Sacco has developed Kilimo Bora

programme to mobilise investors to

participate in this emerging agricul-

ture sub-sector.


Dorcas Wanjiku Njuguna

Head Of Internal Audit

Jackson Mani Muhuri

Ict Manager

John Kariuki Mwangi Asst. Market-

ing And Public Relations Manager

Joseph Kahumbi Macharia

Chief Cashier

NEWS


28/48


NEWS

Te programme provides mass train-

ing for farmers with a view to build

capacities to enable them grow high

value crops. Te Sacco links the pro-

ducers to high end buyers through

organised groups.

Fruit Farming

Murata Sacco has introduced fruit

farming in Kiambu County.

Te Passion fruit farming has picked

up well as an alternative stream of in-

come to the traditional tea and coffee

cash crops.

Farmers in Gatundu North region of

Kiarnbu County have embarked on

aggressive cultivation of this horticul-

tural crop. Passion fruit growing was

introduced to Gatundu farmers in a

programme dubbed KILIMO BORA

managed by Murata Sacco.

After adopting the idea, farmers with-

in Mataara region of Gatundu who

depended on tea and coffee are pro-

ducing huge volumes of juicy passionfruits.

Water Tanks

Water is a critical natural resource

which is required to flow in house-

holds to make living better.

But often this liquid is not found in

structured supply in most places in

the country.

Realising the deficit

to supply water, Mu-rata Sacco has come

up with a product

which target to sup-

port consumers to

acquire water har-

vesting equipment.

Te move involves fi-

nancing water tanks

to individuals or or-

ganised social groups.

Tis is geared to ensure users have access to

clean, hygienic and reliable water supply at

their households.

Further the reliable water resources created

opportunities to embark on poultry rearing

and dairy farming.

Green Energy

Te increasing wanton destruction of forestry

resources in search of energy for basic cook-

ing and heating is posing serious threat

to the survival of valuable environmental

wealth.

Concerned by this grave challenge, the Saccohas devi

Documents

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