Tower SACCO prospects Get what’s trending in the cooperative world SACCO TREND MAGAZINE 026 September - October Edition 2023 Ksh 150 P.O. BOX 259-20303, OL'KALOU [email protected] www.towersacco.co.ke 051-8000822, 0723-836421; 0733-416492
SACCO Trend iii Dear Reader, Welcome once again to the fifth edition of SACCO Trend Magazine 2023. Kenya held the inaugural Africa Climate Summit 2023, which aimed at offering sustainable solutions to green environments and reduced carbon emissions. Climate change poses an existential threat – rising temperatures, extreme weather events, and shifting weather patterns are affecting our agricultural systems, access to clean water, and overall livelihoods. As guardians of community-based financial institutions, SACCOs have a unique opportunity to play a pivotal role in climate change solutions. First and foremost, SACCOs must prioritize sustainable investments. The Africa Climate Summit highlighted the pressing need to channel financial resources into projects that promote environmental sustainability. By investing in renewable energy, green infrastructure, and climate-resilient agriculture, SACCOs can contribute to mitigating climate change while ensuring the financial well-being of their members. Collaboration is key. Societies should actively engage with governmental bodies, NGOs, and international organizations to access climate finance and expertise. Education and awareness are fundamental. SACCO members must be informed about the climate crisis and its impact on their lives. This can be done through workshops, seminars, and awareness campaigns. In this edition, SACCO Trend Editorial brings you inspiring ways cooperatives in Kenya can adopt to enhance climate change solutions. We also look at the performance of various societies in the previous years and current happenings in the sector. As we reflect on the Africa Climate Summit 2023, let us remember that climate change solutions start at the grassroots level. Together, we can be champions of change and lead the way towards a greener, more resilient Africa. Enjoy your reading!. Satrend Ventures LTD, Accra Road White Angle House. Editor’s Note SACCO Trend Africa Climate Summit 2023 - Leading the way towards climate change solutions Publication by Designed by: Jonam Maleche Duncan Ongeri Head of Business Martha Wanjiru Marketing Manager Viola Chepkemoi Angelica Maina Stella Kingori Shiro Mwangi Eunice Kariuki Milton Ateya Marketing Team Editorial Team Wycliffe Musalia Chief editor Clarence Imbayi Sabila Namaemba Abiud Aoko Elizabeth Nangila Clinton Magoti Doreen Atenya Caroline Machira Andrew Walyaula
iv SACCO Trend 30. SACCOs to register with anti-money laundering agency after President Ruto signs Bill 36. Achieving the dream: Owning a house in Kenya on a monthly salary of KSh 25,000 2. Tower SACCO prospects: Mixed bag of strategies for member value creation and empowerment 8. Vision Afrika DT SACCO maximises member value creation through share drive project 5. Eco-Pillar SACCO encourages saving culture among pastoral communities in Kenya Features Contents Regulars & Extras 18. Kimisitu DT SACCO shines during Ushirika Day 2023, garners top honours Contacts: P.O BOX 39452-00623 Tel: 0725514951 [email protected] SACCO Trend @SACCO Trend www.SACCOtrend.co.ke All rights reserved. No part of this magazine may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the copyright owner. © 2022 11. Member value creation: IG SACCO launches its 5-year strategic plan 15. Weathering the storm: Empowering SACCOs, members for financial growth amidst Kenya’s current challenging economy 22. Hazina shines during Ushirika Day 2023 as trailblazer in Deposit Taking SACCO category
By Wycliffe Musalia 2 SACCO Trend Better known as a basket for all your financial needs, Tower SACCO has continued to strive to ensure the expectations of its over 200,000 members are well catered for. The society plans to increase members’ education drive across its member service regions. In an exclusive interview with SACCO Trend Magazine, Tower SACCO chief executive officer Patrick Njenga noted that the society is ready to efficiently and effectively service its members, through a well drafted strategic plan. “We normally say that Tower SACCO is a basket for all your financial needs.... just understand your need and visit us,” said Njenga, after a Special General Meeting (SGM) held on Saturday, September 30, 2023. The SACCO set out its prospects for the new, including the reading and confirmation of the year 2024 budget and activities. According to the CEO, Tower SACCO plans to spend over KSh 14.4 million on member sensitization and awareness. Members education Tower SACCO member education drive is aimed at sensitizing various members on the best savings and investments. Njenga confirmed that the society projects to carry out member education throughout next year. “We have various categories of our members... we have come up with a good program to enlighten them on the products and services that we offer. We have planned for education for salaried, private employees and business communities for sensitization,” The SACCO draws its membership from all corners of the economy, from employed individuals, the business community, farmers, individuals, groups and chamas. It reported a growth in members of up to 216,382 as of August 31, 2023, compared to 188,115 members reported during a similar period in 2022. Tower SACCO prospects Mixed bag of strategies for member value creation and empowerment Tower SACCO CEO Patrick Njenga addressing members during the Special General Meeting (SGM) Tower SACCO chair Peter Mainah addressing members during the Special General Meeting (SGM), beside SACCO CEO Patrick Njenga
SACCO Trend 3 Mixed bag of strategies for member value creation and empowerment Tower SACCO invites young people to take advantage of joining the society and patronizing its wide range of products for their financial growth and empowerment. “My plea to the youth and all people is that the only way to achieve financial freedom is through joining the SACCO and saving,” said Peter Mainah, the SACCO board of directors chair during the SGM. The chairman’s name is Ngugi Loan portfolio The society disbursed loans amounting to KSh 8.2 billion in the last eight months of the year 2023, a 25% growth compared to a similar period in the previous year. The SACCO intends to grow its loan portfolio in the financial year 2024 after it passed a loan budget of KSh 4.2 billion. “We have loan products ranging from long-term to short-term loans. For long-term loans like mortgages, we have partnered with the Kenya Mortgage Refinance Company (KMRC) – a government body – to ensure our members get financing for their housing projects. This is part of our initiative in support of the government’s agenda on affordable housing. Through Makao Bora loan product, we offer financing on a single digit interest rate that guarantees our members affordable payment terms,” the CEO explained. The SACCO also offers short-term loans like salary advances and mobile loans of up to KSh 20,000 per month, among others. The growth of the society’s loan portfolio saw it report growth in turnover of 16% to KSh 1.5 billion in halfyear revenue compared to KSh 1.3 billion reported in 2022. The Sac surplus increased to KSh 975.1 million as of June 30, 2023, compared to KSh 869 million reported during a similar period in 2022. Nyandarua County Co-operative director addressing Tower SACCO members during the meeting Tower SACCO launching Heroes card
ICT and service delivery Tower SACCO continues to leverage Information and Communication Technology (ICT) in its daily operations, for efficient and sustainable service delivery. Njenga noted that tapping into technological trends and the use of alternative banking channels like agency banking, ATM and mobile banking have ensured members get access to seamless services. This helps save time and cost as most members are able to transact within their own comfort. The SACCO set up a call centre, which runs from 8 am to 5pm on Monday to Friday and 8 am to 12 pm on Saturdays, to improve communication and customer service. On the branch network, the CEO noted that ICT has played a crucial role but the society continues to embrace physical branches and satellite offices in viable areas to tap into potential members. “In our strategic plan, we plan for 2 or 3 branches in a year. We carry out a feasibility study to see viability. In future we will have a satellite in Wamba- Samburu East, Kinamba - Lakipia West and also in Subukia,” he confirmed. Tower SACCO heroes Card In its new year prospects, the SACCO also launched a recognition initiative for its alter members, above 65 years of age. The programme is aimed at remembering elderly members for their sacrifice and support of the society and the entire co-operative movement. Members are issued with a card similar to Front Office Service Activity (FOSA) card in terms of service, bearing the name Heroes Card. The card comes with benefits allowing the members not to queue, quick identification and access to services. Tower SACCO is among the best performing tier 1 societies in the country, with a wide range of financial services and a vision for its diverse and growing members. If you are looking for a SACCO to grow financially, then Tower could be your choice. A Basket for All Your Financial Needs Tower SACCO members following the proceedings of the SGM Mixed bag of strategies for member value creation and empowerment 4 SACCO Trend
Eco-Pillar SACCO chair Mr. Richard Achaki As a SACCO, we want to be a leading, dynamic financial service provider not only in the region but also in the country and beyond. With a focused mission of providing efficient and diversified financial service provider, in order to improve our members social and economic prosperity through financial literacy By SACCO Trend Reporter I ncepted on 2nd, June 1977, formerly known as Kapenguria Teachers SACCO, Eco-Pillar SACCO is establishing its roots in the larger North Rift Region, to cultivate the culture of saving and financial literacy to the pastoralist communities in Northern Kenya. According to the CEO of the SACCO Mr Linus Lokira, EcoPillar’s main aim is to provide a strong financial service in the region and beyond to foster members’ social development through enhanced financial services. “As a SACCO, we want to be a leading, dynamic financial service provider not only in the region but also in the country and beyond. With a focused mission of providing efficient and diversified financial service provider, to improve our members social and economic prosperity through financial literacy,” Mr Lokira stated. SACCO Membership The SACCO has opened its membership to other sectors including farmers, entrepreneurs and other business persons. With a membership of over 9,000, the SACCO gears towards increasing its membership through recruitment and retaining the current members through offering services that meet the members’ expectations, and further improve the products and services offered. In incorporating divergent membership, Lokira says the SACCO has a structured package including loans, technological innovations that offer microfinancing savings and credit for members in businesses, which has greatly attracted membership for the SACCO. In reaching out to divergent membership, Eco-Pillar SACCO has further structured entrepreneurship innovations and support systems for members in business through microfinance savings and credit. We also offer loans like ufugaji, Mwamba, Kilimo and Biashara loans,” the CEO explained. Eco-Pillar SACCO encourages saving culture among pastoral communities in Kenya SACCO Trend 5
6 SACCO Trend Eco-Pillar SACCO encourages saving culture among pastoral communities in Kenya Further in boosting its membership in other regions the SACCO has an operating branch in Lowdar Town in Turkana County. It has a plan to expand its operations in the County’s major towns including Kacheliba, Chepareria, Sigor and Kabichbich, with a further extension to Trans Nzoia and Elgeyo Markwet counties. Lokira attributes the growth in membership to the commitment from both members and staff of the SACCO, professionalism and flexibility of services and products of the SACCO. “The SACCO draws its strength from a highly qualified staff, sensitivity to customers’ needs, adaptability and flexibility of the products, as well as a committed membership.”Mr. Lokira said. Leadership and governance Earlier in the year, Cooperatives and MSME Development Cabinet Secretary Simon Chelugui urged SACCOs to ensure great governance and leadership that are according to the Cooperatives and Societies Act, to avoid members losing their savings and assets as well the collapse of SACCOs. He further warned rogue SACCO leaders in the country that would face the law in case of any inconveniences. Following the SACCO’s and Cooperatives Acts and further establishing its roots in the pastoral region of North Rift, the West Pokot-based SACCO focus and transformational agenda is attributed to having visionary leaders. Gender equity sensitivity and diversification have been great pillars of society’s focus. “Eco-Pillar SACCO growth and transformational agenda focuses on SACCO’s core mandate of savings and credit. Prudent management of new products and services diversification, highly improved technology and compliance with all statutory requirements are factors behind our success. Our operations are also based on professionalism, integrity, innovations and gender equity and sensitivity to ensure our members get top-notch services,” Lokira said. Through great and focused leadership, Lokira says the SACCO was able to significantly progress despite the technological, economic and environmental challenges in the past few years, that brought about changes in operations of activities globally. Products and services With friendly interest rates on loans, Eco-Pillar SACCO’s products include; 1. FOSA (Front Office Saving Activity) - consisting of salary advance 1 and 2, instant, premium and smartphone loans. 2. BOSA (Back Office Saving Activity) - consisting of school fees, emergency, normal, special and Karibu loans. “Special development loans are granted 3 times members deposits, deduction strictly check-off, no maximum loan limit, repayable in 48 months and subject to the 1/3rd rule.” Mr. Lorika explained. The SACCO has embraced technology by use of short special codes(USSD) *879# to deposit, withdraw money, pay using Pay Bill Number 170533 and other transactions. This according to the SACCO’s CEO, has increased service delivery as members can access services and do transactions in the comfort of their homes, further boosting the society’s branch network services. The incorporation of technology by societies is among key innovations that are being spearheaded by the Ministry of Cooperatives to increase efficiency and avoid loss for members. Eco-Pillar SACCO CEO Mr Linus Lokira addressing delegates during a past event
SACCO Trend 7 Eco-Pillar SACCO encourages saving culture among pastoral communities in Kenya The launch of the second phase of Hustler Funds for groups and chamas by President William Ruto in June, with both the president and CS Chelugui likening the SACCO-subsector to the Bottom-up Economic model geared to uplift those in the lower level of the pyramid, Eco-Pillar SACCO has also put in place strategies to ensure the SACCO also benefits in giving loans to SMEs as directed by the president. “We already have existing structures that can be instrumental in implementing the presidents’ transformational agenda. Initially, we partnered with the women’s enterprise fund in the provision of low-interest rate loans to businesswomen and groups and the county and it was a success since it uplifted businesses and generally the economy of the county,” he said. Based on this year’s Ushirika Day celebrations themed Co-operatives for Sustainable Development, the SACCO provides its members with comprehensive financial education programs that empower members with financial literacy to make sound decisions on matters such as budgeting, saving and investing, as well as stand economic challenges. “Eco-pillar SACCO is focused on strengthening governance and transparency. This is essential as it ensures accountability, mitigates risks and creates an environment of confidence and stability. This in turn attracts more members and potential investors enhancing the financial growth and reputation of the SACCO,” he further explained. Challenges Despite the significant progress, several challenges as highlighted by Mr Lokira slowed down the operations of the SACCO including; • Reduced disposable due to high taxation • High Loan default rates due to economic hardship by individuals and businesses • Sluggish economic deters potential investment opportunities limiting the avenues through which SACCO can grow their funds. • Diminished investment returns can have adverse effects on the financial growth of the SACCO’s growth, forcing members to seek to share refunds which adversely affects the operations of the SACCO. However, the SACCO has remained a giant in the region since it meets the client’s expectations and good governance. According to Eco-Pillar SACCO marketing manager Madam Naomi Loribo, the society endeavours to offer sustainable financial solutions that guarantee member needs and expectations. “The SACCO offers exemplary customer service, member value creation and sustainable frameworks leveraged by the board and the management. What has led us here is looking at members’ welfare, engaging members, meeting members’ expectations and needs within the shortest time possible,” Loribo explained. The future The SACCO has a great future in the region, stamping its domination in the region. The CEO says Eco-Pillar is the SACCO to watch as it aims to spread its wings across the country and establish a strong base in the region to access new markets and recruit new members. “Eco-pillar aims to be the best SACCO in the republic shortly both in terms of return on investment to members and member value creation. We are networking with like-minded SACCOs to access new markets, investment avenues and knowledge-sharing platforms,” the CEO noted. Eco-Pillar SACCO delegates at 2023 ADM
Vision Afrika DT SACCO maximises member value creation through share drive project We endeavour to know and understand our target customers more precisely, we analyse their business and tailor our product or service to fit the market thus our members can meet their financial needs as well as return on the funds they have saved in the SACCO Vision Afrika DT SACCO CEO Hiram Kariuki responding to an issue raised by a delegate during the 19th Annual Delegates Meeting(ADM) held on March 11th 2023. S ACCOs have clear guidelines and strategies they follow to meet their goals and objectives as set out in the cooperative principles. Vision Afrika DT SACCO is a good example of such societies, operating on clear strategies aimed at creating value for members’ savings and empowering them financially. The SACCO intends to grow its asset base to over KSh 1 billion in the next two years, after reporting a 25% growth in the financial year ending December 31, 2022. In an exclusive interview with SACCO Trend Magazine, Vision Afrika DT SACCO Chief Executive Officer (CEO) Hiram Kariuki the goal can only be achieved through good customer service and sustainability – knowing and understanding the needs of every member in the SACCO. “We endeavour to know and understand our target customers more precisely, we analyse their business and tailor our product or service to fit the market thus our members can meet their financial needs as well as return on the funds they have saved in the SACCO,” said Kariuki. Members’ returns and empowerment Kariuki noted that the society opened a share drive to allow it’s over 31,000 members to own the SACCO. He said the society will use the investments to build a head office in Nakuru. “We intend to construct our headquarters in Nakuru and we have had a very interactive share drive where members 8 SACCO Trend By SACCO Trend Reporter
Vision Afrika DT SACCO officials pose for a photo with a banner showing the SACCO products and services have participated, through numerous engagements the members feel that they are part of the SACCO and have owned through buying the shares, we intend to pay dividends of up to 15% as a return on investment,” he said. Vision Afrika DT SACCO reported growth in members’ deposits to KSh 439.4 million as share capital grew to KSh 91.5 million in the same year under review. The loan portfolio showed an exemplary growth of 25% up from KSh 478.2 million to KSh 596.8 million. The SACCO gross income grew to KSh 112.2 million compared to KSh 86.9 million reported in 2021, paying out KSh 16.2 million in dividends at the rate of 10% for the share capital,15% for the Mjengo shares in a continuous drive and the returns as interest on deposit at 2%. Governance structures and service delivery The CEO attributed the tremendous growth to good corporate governance employed by the SACCO, since its inception in 2004. The SACCO thrives on the tenets of teamwork and professionalism, giving the business mileage over others in the cooperative movement. “Our SACCO Governance structure comprises the delegates, Committee members, Supervisory Committee, Managers and staff. We have been able to streamline the operations and coordination of activities in line with our strategy to ensure that synergy and teamwork are in place, this has enabled us to grow our business” the CEO explained. He said the Saco has put in place a robust system and expanded the alternative service channels to ensure convenience and customer service efficiency. The SACCO leverages the use of information and communication technology (ICT) and its trends to ensure efficient and convenient service to members. Challenges in the space like cybersecurity could occur, however, Vision Afrika DT SACCO is abreast of tips to keep SACCO Trend 9 Vision Afrika DT SACCO maximises member value creation through share drive project
10 SACCO Trend data and members’ investments safe as well as having strategies to prevent fraudulent activities. CSR To meet the cooperative principle of concern for the community, Vision Afrika DT SACCO endeavours Corporate Social Responsibility (CSR), taking care of the vulnerable in the society among others. “Vision Afrika DT SACCO has played an important role in wealth creation, food security and employment generation and, hence, contributed significantly to poverty alleviation. The SACCO mobilize communities’ fund and help particularly vulnerable groups of people. The SACCO has provided access to sustainable financial services; and, as we provide low-income families with a safe place to save their income at their area or village and reasonably priced loan,” he added. CEO Kariuki opined that Vision Afrika is the SACCO to watch in enabling the SMEs, chamas and institutions to realise their financial dreams. Vision Afrika DT SACCO maximises member value creation through share drive project
SACCO Trend 11 the achievement of the Bottom-up Economic Transformation Agenda (BETA), which aims at bringing economic equity, growth and social economic development among Kenyans. SACCO’s role in economic transformation He reiterated to the vital role of the SACCOs in supporting President William Ruto’s plan to revive the country’s economy. CS Chelugui said SACCOs contribution is a great deal in achieving sustainable economic growth. “I take this opportunity to congratulate the manager and leadership of IG SACCO for the good work they are doing. Cooperatives are indispensable actors in the achievement of socioeconomic development for Sustainable economic growth and social equity. This is reflected in the government’s recognition of Cooperatives as pivotal instruments in advancing the Bottom-up Economic Transformation Agenda (BETA). They are the wheels that drive the economy and key in the Plan as envisioned by President Ruto,” said Chelugui. With a membership of 33,724 members, the SACCO takes pride in its impressive asset base of KSh 13.2 billion. The huge membership is attributed to good leadership, members’ trust and collective hard work from members and the board. Member value creation: IG SACCO launches its 5-year strategic plan IG (Invest and Grow) SACCO launched its 5-year strategic plan on August, 30th in Kakamega county. The event was graced by Cooperatives and MSME Development Cabinet Secretary Simon Chelugui. The SACCO boasts 46 years of operations since 1977, with an open membership to members across all sectors, including SMEs, civil servants, corporates and individuals. Speaking during the launch, the SACCO Chief Executive Officer Mr. Peter Vuhya said the new plan is a vital step towards the society’s growth and impactful development and modernization to the current changing world in the SACCO sub-sector. “The event marks a pivotal step towards our vision for growth and impactful development. The plan further includes focus on modernization, digitization and member centric services which perfectly aligns with our commitment to serving our members better,” explained Vuhya. CS Chelugui commended the SACCO on its milestone achievement and goal plan, geared towards development and instigating the saving culture among the residents of Kakamega and larger Western region residents. The CS further reiterated the contribution of the SACCO’s in By SACCO Trend Reporter Coperatives CS Simon Chelugui (centre) receives gift from IG SACCO official, on-looking Commissioner for Cooperatives David Obonyo (left)
Member value creation: IG SACCO launches its 5-year strategic plan 12 SACCO Trend The SACCO aims at cementing its dominance further in Western region counties. Currently, has seven (7) branches spread in Kakamega and Vihiga counties, including Serem, Luanda and Mbale Branches in Vihiga County, Mumias, Butere, Malava and Lumakanda Branches in Kakamega County. Technology Fighting cybercrimes and loss of members’ assets and savings, the SACCO has embraced technology to enhance service delivery and efficiency to its members. As urged by the government to embrace technology and the success of Hustler Funds disbursed online, the CS encourages SACCOs, Societies and Cooperatives to incorporate technology to avoid backlog and enhance accountability. “With the evolving and changing times, technology is definitely the way to go. We are embracing technology to enhance the core banking system of the SACCO, digital loaning and E-guarantors and electronic data management system,” said Vuhya. The SACCO has special mobile banking access through the USSD Code *879#, where members can; check balances, savings inquiries, loans and shares in the comfort of their homes. Products and services IG SACCO offers a wide range of products with competitive and affordable loan interests, offering up to 72 months of repayment for both FOSA and BOSA. FOSA products include; Akiba loan, Empowerment, Progressive loan, FOSA plus loan and Vijanaa loan. The BOSA loans include; Normal loans, Automobile loans, Haraka loan, Jipange loan and Prime loan. IG SACCO stands as the fastest loan processing SACCO with a maximum of 4 hours of a loan, depending on the type. The CEO echoed the joint responsibility and commitment of the members and leadership to the success of the SACCO and aligning to support the government’s transformative goals. During the launch, the CS affirmed the government’s efforts and support to the SACCO sub-sector as it aligns with the government’s economic agenda and is a crucial center for the achievement of The Plan. “The government recognizes Cooperatives as crucial instruments in the Bottom-up Economic Agenda as a testament to our Cooperative movement impact on socioeconomic development,” CS Chelugui affirmed. IG SACCO director Mrs Ludwin mudaki awards CEC cooperative Vihiga County during Ushirika Day celebrations held on July 1, 2023. With the evolving and changing times, technology is definitely the way to go. We are embracing technology to enhance the core banking system of the SACCO, digital loaning and E-guarantors and electronic data management system
Weathering the storm: Empowering SACCOs, members for financial growth amidst Kenya’s current challenging economy Kenya’s economy has been declining to 5.3% reported in the first quarter of 2023 and is currently grappling with a raft of challenges. This poses negative impacts on sectors of finance, especially the Savings and Credit Cooperative Societies (SACCOs) sub-sector. It is essential to explore how the prevailing economic conditions affect cooperative societies and their members. Firstly, the reduced disposable income due to high taxation means a larger portion of individuals’ income goes towards paying taxes. This reduces the amount of money available for other expenses, including savings. As a result, individuals may struggle to set aside a significant portion of their income for saving purposes. With less money available for savings, members find it challenging to accumulate funds for future investments or emergencies, stalling their financial growth. Secondly, the economic hardships faced by individuals and businesses have led to an increase in loan default rates. SACCO members burdened by financial constraints struggle to repay their loans promptly, impacting the liquidity and sustainability of SACCOs. These loan defaults reduce the available resources for providing beneficial services to members, hindering the overall growth of the SACCO and its ability to support its members financially. Lastly, a sluggish economy often deters potential investment opportunities, limiting the avenues through which SACCOs can grow its funds. Diminished investment returns can have adverse effects on the financial growth of SACCO members. With fewer viable investment opportunities, members face challenges in diversifying their portfolios and maximizing their returns, thereby stunting their potential for financial growth. By Carol Machira Tea farmers are part of the larger SACCO membership in Kenya. SACCO Trend 15
16 SACCO Trend Weathering the storm: Empowering SACCOs, members for financial growth amidst Kenya’s current challenging economy SACCO are pillars of member financial empowerment SACCOs should prioritize the provision of comprehensive financial education programs to their members. By equipping members with financial literacy skills, societies can empower them to make informed decisions about budgeting, saving, and investment Strategies to empower SACCO members To mitigate the impact of the struggling economy and foster financial growth among SACCO members, the following strategies can be implemented: SACCOs should prioritize the provision of comprehensive financial education programs to their members. By equipping members with financial literacy skills, societies can empower them to make informed decisions about budgeting, saving, and investment. Financial education initiatives can include workshops, seminars, and online resources that cover topics such as budgeting, debt management, savings strategies, and investment options. By increasing financial literacy, SACCOs enable their members to navigate economic headwinds, make sound financial decisions, and improve their financial well-being. In addition, to alleviate the burden on members facing financial difficulties, SACCOs should offer flexible loan repayment options. This could include loan restructuring, rescheduling, or refinancing mechanisms. These flexible options foster a supportive environment for members, ensuring they stay engaged with the SACCO and maintain a positive financial trajectory. Another important strategy that all financial institutions should do is enhancing Risk Management Practices. By conducting thorough risk assessments, implementing robust internal controls, and establishing contingency plans, SACCOs can safeguard their financial stability and protect the interests of their members. This includes closely monitoring credit risk, market risk, liquidity risk, and operational risk. Proactive risk management measures mitigate potential losses, ensure prudent decision-making, and contribute to the overall financial growth and sustainability of cooperative societies. Along with the aforementioned, the SACCOs should focus on strengthening Governance and Transparency. Maintaining strong governance and transparency practices is essential for SACCOs. By adopting robust internal control mechanisms, promoting transparency in financial reporting, and conducting regular audits, SACCOs build trust with their members and stakeholders. Strong governance practices ensure accountability, mitigate the risk of mismanagement, and create an environment of confidence and stability. This, in turn, attracts more members and potential investors, enhancing the societies’ financial growth and reputation. Furthermore, SACCOs should actively explore International Networking. Societies can explore the following networking methods to access new markets, investment avenues, and knowledge-sharing platforms: 1. Cooperative Federations SACCOs can connect with national and international cooperative federations or associations. These platforms provide opportunities for collaboration, knowledge exchange, and access to resources that can enhance SACCOs’ operations and financial growth. Examples include the International Cooperative Alliance (ICA) and regional cooperative networks.
2. International Conferences and Workshops Participating in international conferences, seminars, and workshops focused on cooperative finance and development offers opportunities for networking with experts, sharing best practices, and gaining insights into global trends. These events facilitate valuable connections and foster cooperative development. 3. Bilateral Partnerships SACCOs can establish bilateral partnerships with cooperative organizations or financial institutions from other countries. Through these partnerships, the societies can access funding opportunities, technical assistance, and cooperative development programs. Collaborative initiatives can include joint investment ventures, knowledge-sharing programs, and capacity-building projects. 4. Online Collaboration Platforms Engaging with online collaboration platforms and forums specific to cooperative finance and development enables SACCOs to connect with professionals and experts from around the world. These platforms facilitate discussions, knowledge sharing, and collaborative initiatives, fostering a global cooperative network. Weathering the storm: Empowering SACCOs, members for financial growth amidst Kenya’s current challenging economy SACCO Trend 17
18 SACCO Trend Kimisitu SACCO, a prominent savings and credit cooperative organization, emerged as one of the top winners during the prestigious 101st Ushirika Day Celebration held at the Kenyatta International Convention Centre (KICC) on July 1, 2023. The SACCO claimed three coveted trophies, garnering recognition for its outstanding achievements in Deposit Management, Risk Management, and Technology Optimization. This accolade solidifies Kimisitu SACCO’s position as a leader in the cooperative sector, with its commitment to providing exemplary financial services to its members. Ushirika Day is an annual celebration in Kenya that pays homage to the cooperative movement and its significant contributions to the nation’s economy and society. It serves as a platform to honour successful cooperatives, promote their principles, and raise awareness about their positive impact on individuals and communities across various sectors. Industry experts and government officials lauded Kimisitu SACCO’s exceptional performance at the auspicious event. Secure member service and technology The SACCO secured the top spot as the Best in Deposit Management – Deposit Taking SACCO, a testament to its efficient handling of members’ deposits and fostering a culture of responsible financial management. Further, Kimisitu SACCO showcased its expertise in Risk Management, securing the third position in this category. The cooperative’s meticulous approach to identifying, assessing, and mitigating risks has enabled it to protect its members’ investments while ensuring the sustainability and growth of the cooperative. In addition to Risk Management, Kimisitu SACCO ranked third in the Best Technology Optimization category, highlighting its successful integration of technology to streamline operations, enhance member experience, and deliver innovative financial solutions. This recognition underscores the SACCO’s commitment to harnessing technology as a driver of efficiency and convenience for its members. The SACCO leverages alternative banking channels (ABCs) like mobile banking to By Andrew Walyaula Kimisitu SACCO board chair Chris Agunga(right), Risk Committee chair Jotham Opiyo (left), CEO Lwanga Mbeche (cente) other officials pose for a photo with trophies during Ushirika Day 2023 Dinner Gala at KICC Kimisitu DT SACCO shines during Ushirika Day 2023, garners top honours
SACCO Trend 19 Kimisitu DT SACCO shines during Ushirika Day 2023, garners top honours meet its mandates on member service and sustainability. Through Mobile Banking M-SACCO services, members can be able to deposit their funds to their Kimisitu SACCO accounts. Kimisitu SACCO ensures customer needs and expectations are catered for through the Customer Relationship Management System (CRM) and Call Centre services. These give the SACCO members satisfactory responses to their quest for convenient and efficient financial services. Members’ data and information are harmonised through Kimisitu SACCO Electronic Document Management System (EDMS) and new members can be onboarded through the online member registration portal. The use of technology has eased credit facilities offered by the society. Through M-Kimisitu, members can access up to a maximum of KSh 300,000 or 80% of their deposits whichever is lower. With a repayment period of up to 6 months. Among the year 2023 achievements is the Kimisitu Money App. All the SACCO members can access loans directly from their Hitech platform and guarantee others through the application Kimisitu SACCO Risk Committe chair Jotham Opiyo pose with trophy alongside other officials during Ushirika Day 2023 Dinner Gala at KICC The SACCO secured the top spot as the Best in Deposit Management – Deposit Taking SACCO, a testament to its efficient handling of members’ deposits and fostering a culture of responsible financial management. Further, Kimisitu SACCO showcased its expertise in Risk Management, securing the third position in this category
Kimisitu DT SACCO shines during Ushirika Day 2023, garners top honours 20 SACCO Trend SACCO growth and performance Established in March 1985 by a group of dedicated staff members from the International Centre for Research in Agroforestry (ICRAF), Kimisitu SACCO’s primary objective was to promote thrift and savings among its members while providing them with a reliable source of funds for productive and provident purposes. Throughout its 38-year journey, the SACCO has witnessed remarkable growth, currently boasting an impressive membership of over 11,800 members in Kenya and other 70 countries, and 400 member organizations. The society draws its membership from all sectors of the economy, including individuals, corporate employees, the business community, small and medium enterprises (SMEs) and chamas. Kimisitu SACCO gross income grew by KSh 173.9 million or 17.6% for the year ending December 31, 2022, clocking the KSh 1 billion mark. Throughout its 38-year journey, the SACCO has witnessed remarkable growth, currently boasting an impressive membership of over 11,800 members in Kenya and other 70 countries, and 400 member organizations. The society draws its membership from all sectors of the economy, including individuals, corporate employees, the business community, small and medium enterprises (SMEs) and chamas The SACCO loan book increased by KSh 784.5 million up from KSh 6.1 billion in 2021 to KSh 6.9 billion reported in 2022. This represents a 12.8% growth in the loan portfolio. The growth in loan books was reciprocated in the SACCO asset base, which reported 11.9% growth to KSh 9.54 billion compared to KSh 8.5 billion in the previous year. Government support to SACCOs President William Ruto who graced the event emphasised the crucial role that SACCOs like Kimisitu play in Kenya’s economic transformation. Ruto reaffirmed the government’s unwavering commitment to supporting the cooperative sector through institutional reforms, including the harmonization of legislation governing various crops. Kimisitu SACCO’s stellar performance during the Ushirika Day Celebration is a testament to its commitment to excellence, innovation, and member empowerment. As Ushirika Day continues to highlight cooperative excellence and promote the cooperative movement’s principles, Kimisitu SACCO stands as a shining example of a cooperative organization dedicated to empowering its members and fostering financial inclusion in Kenya. How to join Kimisitu SACCO Kimisitu SACCO is open to anyone with needs and expectations for efficient and effective financial service. Potential members should have; • Passport Photo & Signature (Mandatory) • National ID (Mandatory) • KRA Pin (Mandatory) • Marriage Cert/Affidavit (If applicable) • Passport Document (If applicable) • Payment of KSh. 1,022/= Registration Fee. Once you have the above requirements, you visit the Kimisitu SACCO website and complete an online registration form under the member portal tab, or your nearest branch with a minimum monthly contribution of KSh 2,000 and initial minimum share capital of KSh 5,000.
By Caroline Machira Hazina shines during Ushirika Day 2023 as trailblazer in Deposit Taking SACCO category 22 SACCO Trend I n a remarkable display of excellence, Hazina SACCO emerged as a true champion during the prestigious 101st Ushirika Day celebration, which was held on July 1, 2023, at Kenyatta International Convention Center(KICC), securing top positions across multiple categories and reaffirming its position as a leading institution in the financial services sector. Hazina SACCO’s proudest achievement was securing Position 1 as the Most Efficient Deposit Taking SACCO Tier 1. This prestigious award serves as a shining testament to the SACCO’s unwavering commitment to efficiency, transparency, and customer-centric values. Through smooth deposit processes and innovative practices, Hazina SACCO has set a high standard in the cooperative movement. Its dedication to transparency fosters trust among members, while customer-centricity ensures personalized solutions and exceptional service. As a trailblazer in the financial services sector, Hazina SACCO’s accomplishment inspires others to emulate its success and reinforces its role as a reliable and member-focused financial partner. Hazina SACCO demonstrated exceptional prowess in its managerial practices, earning the esteemed Position 3 as the Best Managed Deposit Taking SACCO Employer Based SACCO Tier 1. This prestigious award serves as a powerful proof of the institution’s visionary leadership and strategic acumen, which played a pivotal role in propelling the This prestigious award serves as a powerful proof of the institution’s visionary leadership and strategic acumen, which played a pivotal role in propelling the SACCO’s success President William Ruto firmly greets Hazina SACCO chair Evans Kibagendi as he visits the SACCO stand during the Ushirika Day celebrations on July 1, 2023 at KICC Nairobi.
SACCO’s success. With a dedicated leadership team at the helm, the SACCO demonstrated an unparalleled ability to navigate challenges, seize opportunities, and steer the cooperative towards sustainable growth. Corporate governance and good leadership The SACCO’s meticulous approach to management and forward-thinking initiatives instils confidence among its members and stakeholders, further solidifying its position as a leader in the financial services sector. By setting a high standard in managerial excellence, Hazina SACCO continues to inspire other SACCOs to adopt best practices and elevate their contributions to the cooperative movement, driving positive transformation within the industry and beyond. Furthermore, Hazina SACCO’s dedication to responsible lending and prudent credit management earned them yet another accolade – Position 3 as the Best in Credit Management Deposit Taking SACCO Employer Based SACCO Tier 1. This achievement highlights the SACCO’s commitment to safeguarding its members’ financial wellbeing by maintaining a robust credit management system and fostering a culture of responsible borrowing. Hazina SACCO Chairman, Evans Kibagendi, with pride and gratitude, acknowledged the efforts of every member and staff towards the success of the society. “Today, we stand tall as a united cooperative, basking in the glory of our collective achievements. Hazina SACCO’s success at this prestigious celebration is a testament to our unwavering dedication to serving our members and the community. Our commitment to efficiency has been the driving force behind our growth and success. This award is a reflection of the hard work and dedication of each and every one of you.” Said Mr Kibagendi. His remarks were echoed by Mr Dickson Okungu, the SACCO Chief Executive Officer who highlighted the significance of the three awards. SACCO Trend 23 Hazina SACCO band leading others as they match to the Ushirika Day celebrations on July 1, 2023 at KICC Nairobi. Hazina shines during Ushirika Day 2023 as trailblazer in Deposit Taking SACCO category Hazina SACCO Awards won during the Ushirika Day celebrations on July 1, 2023 at KICC Nairobi.
“Earning the Best Managed Deposit Taking SACCO and Best in Credit Management SACCO titles further cement our position as a well-managed and responsible financial institution. Our leadership team’s strategic vision and the disciplined approach of our credit management system have set us apart from the rest,” said Okungu. In his closing remarks, Mr. Kibagendi emphasized Hazina SACCO’s role in driving positive change within the cooperative movement, stating, “Our journey doesn’t end here. We will continue to set new benchmarks, remain innovative, and uphold our commitment to our members and the community. Together, we will lead the way in transforming lives and building a prosperous future for all.” Why join Hazina SACCO Hazina SACCO offers a variety of loan products, including Normal/Development Loan, Top-Up Loan, School Fees and College Fees Loans, Super Loan, Emergency Loan, Top-Up Emergency Loan, Daraja Loan, Jibu Loan, Tech Loan, Chama/Corporate Loan, Dividend Advance, Mobi Loan, and Flash Advance. These diverse options cater to different financial needs and circumstances, providing members with flexible and tailored borrowing solutions. Joining Hazina SACCO comes with several advantages. Members benefit from the diverse loan products tailored to their specific requirements, allowing them to access funds for various purposes. The SACCO’s competitive interest rates and convenient repayment terms ensure financial solutions that are both affordable and manageable. Additionally, the trust and transparency embedded in Hazina SACCO’s operations create a secure environment where members can confidently manage their finances. Hazina SACCO’s member-centric approach places the interests of its members at the forefront. This ensures that services are designed to meet their financial aspirations and needs. By becoming a member of Hazina SACCO, individuals join a community-driven cooperative that values their well-being and financial prosperity. With a strong emphasis on responsible lending and member support, Hazina SACCO offers a trustworthy platform for members to achieve their financial goals while being part of a collective effort to uplift the community. 24 SACCO Trend Hazina shines during Ushirika Day 2023 as trailblazer in Deposit Taking SACCO category Hazina SACCO award as Best Credit Management DT SACCO won during the Ushirika Day celebrations on July 1, 2023 at KICC Nairobi. Hazina SACCO award as Best Managed DT SACCO won during the Ushirika Day celebrations on July 1, 2023 at KICC Nairobi. Hazina SACCO award as Most Efficient society won during the Ushirika Day celebrations on July 1, 2023 at KICC Nairobi.
Good Hope SACCO Limited Minimum contribution 1000/= 4% of payable interest Loan access is 6x the savings You can reach us on P.O. Box 158-20500 [email protected] Narok - Kenya 0723 031 812
List of top SACCOs in Kenya by assets, member deposits – SASRA Report By SACCO Trend Reporter S ACCO Society Regulatory Authority (SASRA) released its annual supervisory report in August 2023, showing the performance of the over 360 SACCOs in the country. The report showed that the number of Kenyans who joined SACCOs increased from 5.99 million in 2021 to 6.42 million in 2022, representing an increase of 7.02%. On average, SACCOs paid a return on share capital of 10.47% in 2022 compared to a return of 9.87% in 2021. The sector loan book constituted 71.97% of SACCOs’ total assets during the same year under review, up from 70.95% reported in 2021. Deposit accounts with more than KSh 1 Million increased from 71,000 in 2021 to 92,000 in 2022. What to consider before joining a SACCO? In an exclusive interview with SACCO Trend Magazine, Benjamin Cheruiyot – the Engagement Lead at Abojani Investments – said that the main drivers of success in any financial institution, especially SACCOs is customer service and sustainability. “Before you can join any SACCO, take note of its financial stability, customer service, ease of issue of loans, meaningful interests and dividends,” said Cheruiyot. Cheruiyot explained that before joining a SACCO, one must ensure that it is SASRA-regulated, knows the kind of services it offers, and its stability. “Make sure the SACCO has a physical location for easy access, the right savings and checking accounts, 26 SACCO Trend competitive interest on deposits, and a flexible repayment period,” he added. What are the top SACCOs in Kenya? From the SASRA Report, here are the top SACCOs in the country in terms of assets, deposits, gross laons and total income. 1. Mwalimu National SACCO Mwalimu SACCO recorded total assets worth KSh 64.06 billion in 2022, up from KSh 60.6 billion in 2021. At the same time, customer deposits increased from KSh 44.29 billion to KSh 47.29 billion, whereas The sector loan book constituted 71.97% of SACCOs’ total assets during the same year under review, up from 70.95% reported in 2021. Deposit accounts with more than KSh 1 Million increased from 71,000 in 2021 to 92,000 in 2022
SACCO Trend 27 List of top SACCOs in Kenya by assets, member deposits – SASRA Report the value of gross loans rose from KSh 38.18 billion to KSh 43.84 billion. The SACCO’s total income increased slightly from KSh 7.58 billion to KSh 7.74 billion, during the same year under review. 2. Stima DT SACCO Stima DT SACCO emerged second in the SASRA report 2022, with total assets of KSh 53.78 billion compared to KSh 46.46 billion reported in 2021. Members deposits rose from KSh 34.21 billion to KSh
28 SACCO Trend 39.43 billion, while gross loans stood at 45.07 billion in 2022, up from KSh 39.38 billion in the previous year. The SACCO’s income rose from KSh 6.97 billion to KSh 7.4 billion, during the same year under review. 3. Kenya National Police DT SACCO Kenya National Police DT SACCO earnings rose from KSh 7.04 billion in 2021 to KSh 7.94 billion, during the same period under review. The society’s assets grew from KSh 44.09 billion to KSh 48.98 billion, while customer deposits rose from KSh 26.02 billion to KSh 28.89 billion 4. Harambee SACCO Since its inception in 1970, Harambee SACCO has grown into a multi-billion institution with more than 80,000 members. The society draws its membership from the national and county governments, parastatals, and police. Harambee SACCO’s assets increased marginally from KSh 34.62 billion in 2021 to KSh 37.01 billion in 2022. The SACCO member deposits rose from KSh 22.54 billion to KSh 23.70 billion, while gross loans disbursed also increased from KSh 24.8 billion to KSh 27.67 billion. Income stood at KSh 4.79 billion, up from KSh 4.01 billion. 5. Afya SACCO Afya SACCO membership has grown over the years from 1971 to over 40,000 members. The SACCO has total assets of KSh 20.94 billion reported in 2022, up from KSh 20.87 billion in 2021. Members’ deposits grew from KSh 15.61 billion to KSh 15.63 billion. The society registered an income of KSh 2.79 billion during the same year under review. 6. Unaitas SACCO Unaitas SACCO emerged at position six in the SASRA report 2022, with an asset base of KSh 20.4 billion, compared to KSh 18.65 billion reported in 2021. The SACCO member deposits grew from KSh 10.14 billion in 2021 to KSh 11.02 billion. The society reported an increase in gross loans of up to KSh 16.36 bilion, up from KSh 14.56 billion in 2021, while total income grew from KSh 2.66 billion to 3.27 billion, during the same year under review. Other SACCO’s including Imarisha (asset base of KSh 19.82 billion), Tower (asset base of KSh 19.57 illion) United Nations DT (asset base of KSh 16.7 billion) and Ukulima (asset base of KSh 14.66 billion), clinched position seven, eight, nine and ten, respectively. The report showed that the number of Kenyans who joined SACCOs increased from 5.99 million in 2021 to 6.42 million in 2022, representing an increase of 7.02%. On average, SACCOs paid a return on share capital of 10.47% in 2022 compared to a return of 9.87% in 2021 List of top SACCOs in Kenya by assets, member deposits – SASRA Report
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30 SACCO Trend P resident William Ruto assented to the AntiMoney Laundering and Combating of Terrorism Financing Laws(Amendment) Bill 20223 into law. The new law requires SACCOs, casinos, real estate agencies, forex bureaus and life insurance brokers to register. The bill is aimed at helping the country to address deficiencies limiting the fight against money laundering and terrorism. It allows for the surrendering of a fugitive criminal who consents to be extradited to a requesting State. According to a report by the SACCO Societies Regulatory Authority (SASRA), there are 176 Deposit Taking SACCO Societies in Kenya. It is further mandated to ensure that SACCOs to register with anti-money laundering agency after President Ruto signs Bill By Clarence Imbayi The bill is aimed at helping the country to address deficiencies limiting the fight against money laundering and terrorism. It allows for the surrendering of a fugitive criminal who consents to be extradited to a requesting State
SACCOs to register with anti-money laundering agency after President Ruto signs Bill there is confidence in the public towards the SACCO sector and promote Kenya’s economic growth through the mobilization of domestic savings. During the SACCO’s Annual Delegates Meeting in Mombasa earlier this year, CS Cooperatives and MSME Development Simon Chelugui urged SASRA to register SACCOs, to benefit in the disbursement of Hustler Funds to small businesses and groups, as well as Cooperatives in the country. One of the key requirements for SACCOs to be selected on the government’s plan of uplifting members at the bottom of the pyramid and encouraging is to have been registered by SASRA. According to a statement released by the Financing Report Center(FRC) singularly to chief executives of SACCOs and real estate, the SACCO Societies Regulatory Authority SASRA and property firms should monitor their reporting to ensure no profits are used to finance terrorism activities and money laundering schemes. “Casinos and internet betting firms also need to comply with FRC, alongside Kenya Revenue Authority (KRA) tax collection from gamblers. Real Estate must register on or before September 15, 2023. In which failure to register could lead to revocation of operating licenses for these institutions,” partly read the statement. The law further grants the Financial Reporting Centre operational independence by excluding it from the definition of a State Corporation. This comes after claims and alarms by the Eastern and Southern Africa AntiMoney Laundering Group (ESAAMLG) of huge illegal cash flowing into the country. ESAAMLG monitors how the region is implementing global measures against dirty cash. Financing Report Center together with KRA aims to collaborate to monitor any suspicious financial activities and the Kenya Revenue Authority KRA to further provide reports about currency coming in the country more than $10,00. This is to further combat and fight against money laundering and financial crimes. According to the ESAAMLG report, the claims could negatively affect the status and standards of the country’s major capital city Nairobi as the region’s financial center. In the new law, the Central Bank of Kenya (CBK), will supervise financial institutions and agents of reporting institutions. SACCO Trend 31 Casinos and internet betting firms also need to comply with FRC, alongside Kenya Revenue Authority (KRA) tax collection from gamblers. Real Estate must register on or before September 15, 2023. In which failure to register could lead to revocation of operating licenses for these institutions
32 SACCO Trend Kenyan SACCOs lose millions to fraud: Urgent measures needed to protect members’ savings – SASRA Report The SACCO subsector in Kenya has been hit by a significant financial challenge over the past two years, the SACCO Society Regulatory Authority (SASRA) has revealed. In in annual supervisory 2022 report released in August 2023, SASRA noted losses amounting to a staggering KSh 118.1 million. These losses have primarily been attributed to fraudulent activities, with a worrying trend indicating that many of these frauds are being perpetrated by internal staff. The regulator, which monitors over 350 SACCOs operating in the country, reported that the societies collectively held deposits amounting to KSh 620.45 billion at the close of the year 2022. From the KSh 118.1 million reported to have been lost By SACCO Trend Reporter
SACCO Trend 33 Kenyan SACCOs lose millions to fraud: Urgent measures needed to protect members’ savings – SASRA Report through fraudulent activities, KSh 114.4 million is also suspected to have disappeared within the same two-year period. Weak internal controls among SACCOs SASRA said the fraudsters responsible for these losses have been capitalizing on weak internal controls within the SACCO societies. The regulator also attributed the loss to an incident of cyberattack and breach-related fraud in 2022. According to SASRA, the individuals working within SACCOs ICT and credit departments have emerged as the primary collaborators in the perpetuation of fraudulent activities. The regulator urged SACCOs to conduct regular reviews of the adequacy of their internal controls within these critical departments to thwart such criminal actions. One illustrative case cited by Sasra occurred in June of the previous year when an illegal withdrawal of KSh 29.4 million from certain members’ savings accounts was executed using unregistered mobile phone numbers. In another incident reported in October 2022, an internal staff member linked members’ savings accounts to unauthorized mobile numbers and managed to withdraw KSh 1.6 million. Perhaps one of the most audacious instances took place in the same month, where an unidentified individual walked into a commercial bank, opened an account in the name of a SACCO, and accessed loans worth Sh1.16 million. Another alarming episode took place in December 2021 when four SACCOs fell victim to several fraudulent transactions amounting to KSh 22.2 million over a single weekend. These funds were withdrawn from the SACCOs’ float and pay bills, subsequently transferred to other M-Pesa accounts, and then swiftly withdrawn, leaving the SACCOs grappling with substantial losses. Incidences of fraud In April 2021, unnamed SACCO officers diverted KSh 642,000 meant for M-Pesa floats and commissions intended for mobile money business to their personal accounts. In one of the most significant thefts on record, members of the public reported in January 2021 that they had lost a staggering KSh 63 million to an unlicensed entity posing as a SACCO. This dubious entity had mobilized millions of shillings from unsuspecting investors with Casinos and internet betting firms also need to comply with FRC, alongside Kenya Revenue Authority (KRA) tax collection from gamblers. Real Estate must register on or before September 15, 2023. In which failure to register could lead to revocation of operating licenses for these institutions
34 SACCO Trend Kenyan SACCOs lose millions to fraud: Urgent measures needed to protect members’ savings – SASRA Report promises of lucrative returns, only to vanish abruptly. In yet another shocking fraud case, perpetrators in February 2022 utilized the accounts and credentials of deceased members to access loans worth KSh 24,784, further exposing an additional KSh 486,879 to theft. SASRA also disclosed that its investigative unit had received reports in the same month that certain officials of a SACCO had fraudulently utilized the organization’s funds to purchase land, resulting in a staggering loss of KSh 55 million for the members. In July 2021, officials of an unnamed SACCO were reported to investigators for embezzling KSh 55.2 million from the SACCO and channelling the ill-gotten funds to a subsidiary between 2015 and 2020. These shocking revelations underscore the pressing need for SACCOs to not only bolster their internal controls but also implement insurance schemes to protect the hard-earned savings of their members. The recent wave of fraud within SACCOs in Kenya has raised significant concerns about the security of members’ deposits. The fact that a considerable portion of these frauds is being perpetrated by internal staff highlights the urgency of implementing stronger internal controls and security measures. Additionally, the absence of an insurance scheme to protect depositors from such losses is a glaring gap that needs to be addressed promptly. SACCOs must take immediate steps to safeguard their members’ billions of shillings and restore confidence in these vital financial cooperatives.
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36 SACCO Trend Africa Climate Summit 2023: How SACCOs and financial institutions power green energy shift I n a historic moment, President William Ruto inaugurated the first-ever Africa Climate Summit 2023, marking the continent’s unwavering commitment to addressing the climate crisis. With a rallying call to action, the summit aimed to position Africa as a global leader in embracing green energy solutions and reaping the benefits of a sustainable future. The three-day event, running from 4th to 6th September 2023 at the Kenyatta International Convention Centre (KICC), Nairobi was organized to tackle Africa’s growing vulnerability to climate change and its economic repercussions on the continent. Despite contributing only 2 to 3 per cent of global carbon emissions, Africa has suffered the most severe consequences of global warming, as reported by the United Nations President Ruto emphasized that green growth isn’t just a climate imperative but a vast source of multi-billiondollar economic opportunities, both for Africa and the global community. This forward-thinking approach reflects Africa’s commitment to sustainability and By Caroline Machira President William Ruto speaking after the Africa Climate Summit 2023 at KICC, Nairobi
SACCO Trend 37 underscores the potential for a greener and more prosperous future. “Africa’s position on climate action would be to save lives and the planet from calamity. We aspire to chart a new growth agenda that will deliver shared prosperity and sustainable development,” said Ruto. As nations strive to reduce carbon footprints and transition to green energy sources, Savings and Credit Cooperatives, alongside other financial institutions, are well-positioned to be catalysts for change in the transition to green energy. By providing access to financing, supporting green start-ups, and advocating for favourable policies, they can empower individuals and businesses to embrace sustainable practices. Let us explore how they can achieve this. 1. Green energy loan products To incentivize members to embrace green energy, SACCOs can design specialized loan products with attractive terms and interest rates. These loans can be tailored to finance energy-efficient home improvements, electric vehicle purchases, or the installation of renewable energy systems. Flexible repayment options can ease the financial burden on borrowers, making the transition to green energy more accessible. President Ruto emphasized that green growth isn’t just a climate imperative but a vast source of multi-billion-dollar economic opportunities, both for Africa and the global community. This forward-thinking approach reflects Africa’s commitment to sustainability and underscores the potential for a greener and more prosperous future. Africa Climate Summit 2023: How SACCOs and financial institutions power green energy shift President William Ruto carrying a tree to be planted
38 SACCO Trend 2. Investment in renewable energy projects Financial institutions can allocate a portion of their funds to invest in renewable energy projects. For instance, SACCOs can allocate a portion of their CSR budget specifically for tree planting projects. To achieve this, they can partner with local environmental organizations or forestry departments to identify tree planting initiatives that need funding. These investments can also include funding solar farms and supporting research and development. Such initiatives bolster the green energy sector and create jobs, ultimately benefitting the economy. 3. Education and awareness campaigns SACCOs have a reach into local communities, making them ideal platforms for educational campaigns on green energy. Financial institutions can organize workshops, seminars, and informational sessions to educate their members about the benefits of green energy adoption. Informed members are more likely to embrace ecofriendly practices and invest in sustainable energy solutions. 4. Employee involvement These institutions should encourage their employees to participate in tree planting activities. Organize tree planting days where staff members can volunteer their time and labour to plant trees in the local community. This not only contributes to the CSR initiative but also fosters a sense of teamwork and community engagement among employees. 5. Supporting green start-ups Financial institutions can allocate funding to support green start-ups and entrepreneurs working on innovative clean energy solutions. By providing seed capital and mentorship, SACCOs can help nurture environmentally conscious businesses that contribute to the green energy revolution. This not only encourages innovation but also strengthens the local green economy. 7. Advocacy for green policies SACCOs and financial institutions can wield their collective influence to advocate for favourable green energy policies at both local and national levels. Lobbying for incentives such as tax breaks, rebates, and regulatory support can make green energy adoption more financially appealing to individuals and businesses. One way of attaining this is by developing comprehensive policy proposals outlining the specific incentives needed, such as tax credits, grants, or streamlined permitting processes then presenting these proposals to lawmakers, highlighting their potential economic and environmental impact. In addition, they can build relationships with legislators at local, regional, and national levels. Arrange meetings, seminars, or workshops to educate them about the importance of green energy and how incentives can drive adoption. 8. Monitoring and reporting environmental impact Financial institutions can take a proactive role in environmental accountability. They can encourage members and clients to track their carbon footprint and energy consumption. This data can be used to assess the impact of green energy initiatives and guide future investments in sustainable projects. This harmonious endeavour can give birth to twofold rewards: a healthier planet and thriving societies. SACCOs and financial institutions can strive to become indispensable allies in this transformative journey. Africa’s position on climate action would be to save lives and the planet from calamity. We aspire to chart a new growth agenda that will deliver shared prosperity and sustainable development
Owning a house is a dream cherished by many individuals. However, with the rising cost of living and limited incomes, it can seem like an unattainable goal, especially for those earning a modest monthly salary. But don’t despair! In this article, we will explore how you can turn your dream of homeownership into a reality in Kenya, even with a monthly salary of KSh 25,000. By adopting a strategic approach and making informed financial decisions, you can make significant progress towards owning a house. Set Clear Financial Goals The first step towards owning a house is setting clear financial goals. Determine how much you can realistically save each month. In our case, with a monthly salary of KSh 25,000, aim to save at least 30% of your income, which amounts to KSh 7,500. This will require discipline and a commitment to living frugally. Embrace Frugal Living Living frugally is the key to maximizing your savings. Evaluate your expenses and identify areas where you can cut back. Reduce unnecessary costs such as dining out, entertainment, and luxury purchases. Instead, opt for affordable alternatives like cooking your own meals, exploring free or low-cost hobbies, and utilizing the resources available in your community, such as libraries or parks. Research Affordable Housing Options To own a house on a limited income, it is essential to explore affordable housing options. Research housing projects and developments that cater specifically to lowincome earners. These projects often offer affordable housing schemes with flexible payment plans, allowing you to make small monthly payments towards owning your own house. By SACCO Trend Reporter SACCOs and Housing Owning a house in Kenya on a monthly salary of KSh 25,000 Real estate 40 SACCO Trend Achieving the dream:
SACCO Trend Special Financing Programs Look for special financing programs designed to assist low-income individuals in achieving homeownership. These programs provide low-interest loans with longer repayment periods, making it easier to manage the monthly instalments. Consult with real estate agents and project managers to find out about such programs and explore your eligibility. Visit Affordable Housing Developments Once you’ve identified affordable housing projects, visit them personally to get a feel for the community and understand the available options. Speak with project managers and express your financial situation. They may guide you towards specific houses or units that fit your budget and financial capabilities. Down Payment and Loan Options To make homeownership more accessible, consider making a down payment. Even if it’s a small amount, it can significantly reduce your loan burden. For example, if the total cost of the house is KSh 1,000,000, and you can make a down payment of KSh 200,000, you’ll be left with a loan of KSh 800,000. This reduces your monthly instalments, making it more manageable within your salary. Maintain Financial Discipline Once you’ve secured a housing loan, it’s crucial to maintain financial discipline. Ensure that you consistently make your monthly payments on time to avoid penalties or potential issues with your loan. Budget wisely and prioritize your financial obligations to ensure the smooth repayment of your loan. In conclusion, owning a house in Kenya with a monthly salary of KSh 25,000 is indeed a challenging endeavour, but it is not impossible. Through determination, smart financial planning, and taking advantage of available resources, you can make significant progress towards achieving your dream of homeownership. By setting clear goals, embracing frugal living, exploring affordable housing options, and utilizing special financing programs, you can unlock the path to owning a house. Remember, your journey towards homeownership is not just about the destination, but also about the valuable lessons learned and the sense of pride and security that comes with having a place to call your own. So, take that first step, stay focused, and turn your dream into a reality! Owning a house in Kenya on a monthly salary of KSh 25,000 SACCOs and Housing Real estate Achieving the dream: In conclusion, owning a house in Kenya with a monthly salary of KSh 25,000 is indeed a challenging endeavour, but it is not impossible. Through determination, smart financial planning, and taking advantage of available resources, you can make significant progress towards achieving your dream of homeownership Get whats trending 2 Email: [email protected] Sacco Trend Magazine Call us on: 0708952131 in the Cooperative World with
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Africa Climate Summit 2023 SACCOs should fund their members to acquire green energy solutions such as electric motorcycles, solar panels and systems, among others ~ Benson Muturi. SACCOs should fund CBOs for tree planting exercises, they should also educate their members on the advantage of using environmentally friendly electric vehicles ~ Charles Brooks. I think SACCOs should come up with a strategy for financing its members to own electric vehicles. Moreover, SACCOs have always provided a platform for sharing ideas that’s through their member educational training programs, SACCO members need to be trained on the same ~ Nyongesa Tonney. It’s high time for SACCOs to come together and make strategic plans on what they want to implement especially in empowering women and youth and the small farm sector. “ Collaboration is highly needed than ever. ~ Nabasa Odiira 46 SACCO Trend Kenya hosts the first-ever Africa Climate Summit and Africa Climate Week 2023. SACCO Trend Magazine reached out to readers for their views on how SACCOs and the entire financial sector can support the government’s push for green energy solutions like Electric Vehicles and the 15 Million Tree Planting Initiative. Here is what they had to say; Opinion