Ksh 150 Get what’s trending in the cooperative world SACCO TREND MAGAZINE SACCO leverages member loyalty to post KSh 22b assets 032 May-June 2024 Call Center: 0709 253 000 Unaitassacco Unaitas www.unaitas.com [email protected]
SACCO Trend iii Dear SACCO Trend Magazine Readers, Welcome to the fourth edition of 2024 SACCO Trend Magazine, bringing to your attention the current trends in the cooperative movement and the entire financial sector. In this edition, our spotlight remains firmly fixed on the heartbeat of the cooperative movement – the SACCO Annual General Meeting (AGM. The AGM stands as a pivotal juncture, drawing together members, leaders, and stakeholders to reflect on the accomplishments of the past year and set the trajectory for the future. Within these gatherings lie the seeds of progress, where key discussions, decisions, and trends emerge, illuminating the resilience and dynamism inherent within the cooperative sector. The cooperative movement continues to assert its indispensable role in fostering financial inclusion and empowerment. Our exploration within these pages delves into the shifting contours of SACCOs, from the adoption of innovative digital solutions to the embrace of sustainable practices. These narratives underscore how SACCOs adeptly navigate the evolving terrain of the financial sector, seamlessly blending technological advancements with the enduring ethos of cooperation. As technology reshapes the delivery of financial services, SACCOs find themselves at the vanguard of this digital transformation. Yet, amidst this progress, they remain steadfastly committed to their cooperative principles, ensuring that no member is left behind. SACCO Trend Magazine coverage meticulously unravels these narratives of adaptation and innovation, painting a portrait of SACCOs as agile agents of change, ever attuned to the pulse of their communities. In these pages, you will find a tapestry of stories – stories of resilience, innovation, and empowerment. It is our fervent hope that they inspire and inform, serving as an inspiration for SACCOs and the entire cooperative movement in Kenya and across the world. Enjoy your reading!. Satrend Ventures LTD, Accra Road White Angle House. Editor’s Note SACCO Trend Publication by Designed by: Jonam Maleche Duncan Ongeri Chief Executive Officer Martha Wanjiru Business Development Manager Viola Chepkemoi Marketing Manager Stella Kingori Shiro Mwangi Eunice Kariuki Milton Ateya Marketing Team Editorial Team Wycliffe Musalia Chief Editor Clarence Imbayi Sabila Namaemba Marion Achieng Philip Bwayo Caroline Machira Andrew Walyaula
25. Siraji becomes first DT SACCO to partner with a university, gears towards member value creation and empowerment 30. Orient SACCO Registers Growth in Key Indicators, Offers High Returns to Members 34. Unison continues expand roots among Tier 1 SACCOs, records over KSh 7b in assets 40. TaifaDT SACCO Completion oficonic head office premises, en route to tier1 levels among other key miles society achieved in 2023 2. Unaitas SACCO Triumphs Amidst Economic Challenges, Posts Over Kshs. 22B Assets In 2023 16. Taqwa SACCO commits to corporate governance, posts 12.22% asset growth in 2023 14. Ardhi SACCO records KSh 2.4b in assets, thanks to member value creation and sustainable service 10. Mwalimu National DT SACCO bounces back despite tough microeconomic environment, hits over KSh 66b in assets Features Contents Regulars & Extras 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 20. Mhasibu NWDT SACCO Hits KSh 10b in assets, unveils FOSA services 6. QWETU DT SACCO Officially Opens Plaza after posting over KSh 3.6b in assets
Unaitas SACCO Triumphs Amidst Economic Challenges, Posts Over Kshs. 22B Assets In 2023 Resilience in action: 2 SACCO Trend I n the cooperative movement and the broader financial sector, Unaitas SACCO Society Limited has been a beacon of resilience.. The year ending December 31, 2023, saw Unaitas SACCO Society Limited demonstrate remarkable resilience in the face of challenging economic conditions, showcasing adaptability and effective management strategies. Faced with a myriad of economic uncertainties, Unaitas SACCO implemented a robust business strategy marked by prudent lending practices and a proactive approach to loan recovery. At the 31st Annual Delegates Meeting (ADM) held at the Sportsview Hotel in Kasarani, Nairobi on March 22, 2024, the SACCO Chairman Michael Muriithi emphasised that the strategic approach undertaken not only bolstered the SACCO’s financial standing but also cemented its commitment to member service during tough times. “Our unwavering dedication to engaging with members ensured that their needs and concerns were addressed effectively, fostering a sense of trust and collaboration within the community. Through regular communication channels such as member forums, feedback sessions, and surveys, Unaitas SACCO actively sought input from By Caroline Machira Unaitas SACCO chairman Michael Mureithi presenting the board of directors’ report during the 31st Annual Delegates Meeting (ADM) held on March 22, 2024 Unaitas SACCO chairman Michael Mureithi (left), Vincent Maragu, Director of the Cooperatives Banking Division and Unaitas CEO Martin Muhoho perusing Financial Statements after the ADM
Unaitas SACCO Triumphs Amidst Economic Challenges, Posts Over Kshs. 22B Assets In 2023 SACCO Trend 3 choosing Unaitas SACCO, particularly highlighting the stark contrast in lending interest rates between banks and the cooperative. Our unwavering dedication to engaging with members ensured that their needs and concerns were addressed effectively, fostering a sense of trust and collaboration within the community. Through regular communication channels such as member forums, feedback sessions, and surveys, Unaitas SACCO actively sought input from its members, allowing them to voice their opinions and contribute to decision-making processes, Chief guest, Vincent Maragu, Director of the Co-operatives Banking Division addressing Unaitas SACCO delegates during the 31st Annual Delegates Meeting (ADM). Nairobi County Director of Cooperative Dolphine Aremo addressing Unaitas SACCO delegates during the 31st Annual Delegates Meeting (ADM) held on March 22, 2024 its members, allowing them to voice their opinions and contribute to decision-making processes,” said Muriithi. The event was graced by Vincent Marangu, Director of the Cooperatives Banking Division, Cooperative Bank, as the chief guest, who delivered an inspiring message, urging delegates and members to prioritize saving with Unaitas SACCO for their personal financial growth and empowerment. He emphasized the tangible benefits of
“I encourage all members to continue saving with Unaitas SACCO, where you can enjoy competitive interest rates and better financial services compared to traditional banks,” remarked Marangu. Marangu elaborated on the advantages of SACCO membership, emphasizing the dual benefits of securing one’s financial future while contributing to the growth and development of the community. His words underscored the inherent collective empowerment within the cooperative model, highlighting the symbiotic relationship between members’ savings and community prosperity. “Unaitas SACCO is founded on mutual cooperation principles, offering loans under more favorable terms and lower interest rates,” Marangu encouraged the delegates.. Financial performance in 2023 Unaitas SACCO’s financial performance in 2023 marked significant growth in key metrics, signalling robust financial health and stability. Total assets grew by 12%, rising from Kshs. 20.4 billion in 2022 to Kshs. 22.7 billion in 2023. The share capital saw a considerable gain, grew from Kshs. 3.97 billion in 2022 to Kshs. 4.06 billion in 2023, reflecting a commendable 7% growth. Members’ deposits exhibited positive momentum, with an increase from Kshs. 3.9 billion in 2022 to Kshs. 4.06 billion in 2023, further underlining the SACCO’s attractiveness to members as a trusted financial institution. In terms of revenue, Unaitas realised a 7% growth, from Kshs. 3.26 billion to Kshs. 3.5 billion, a testament to the SACCO’s effective operations and revenue-generation strategies. In recognition of these financial achievements, the SACCO board recommended returns to its members, with a proposed payout of 10% on share capital and 5% interest on deposits. This recommendation reflects the SACCO’s commitment and consistency to delivering value to its members and rewarding their loyalty, while also ensuring prudent financial management and sustainability. 4 SACCO Trend Unaitas SACCO Triumphs Amidst Economic Challenges, Posts Over Kshs. 22B Assets In 2023 Chief guest, Vincent Maragu, Director of the Cooperatives Banking Division, Unaitas CEO Martin Muhoho (centre), chairman Michael Mureithi and other officials pose for a photo after the ADM. Unaitas SACCO delegate reacting to a point in the board of directors report during the 31st Annual Delegates Meeting (ADM) held on March 22, 2024
Performance at a glance Key Financial Matrix 2023 (Ksh) 2022 (Ksh) Total Assets 22.7 billion 20.4 billion Members Deposit 4.06 billion 3.9 billion Share Capital 4.06 billion 3.97 billion Total Revenue 3.5 billion 3.26 billion Unaitas SACCO Annual Report and Financial Statement for 2023 Unaitas SACCO’s New Branch Inauguration in Othaya In a move symbolizing its commitment to financial accessibility and inclusion, Unaitas SACCO recently opened a new branch in Othaya, marking a pivotal moment in its growth journey and an entry into Nyeri County. The grand opening, graced by the Nyeri County Governor, Hon. Mutahi Kahiga, signified the combined efforts of Unaitas SACCO and County government collaboration to drive financial inclusivity and bring competitive banking services to the people of Nyeri County all in an effort to promote economic development and empower residents through accessible financial services. The Othaya Branch opening aligns with Unaitas SACCO’s mission to extend its reach and provide essential financial services within the agricultural zone communities across Kenya. With a strong focus on affordable structured finance and member welfare, Unaitas SACCO offers a wide range of financial products and services tailored to meet the diverse needs of its members. “We are very excited to expand our presence to Othaya, Nyeri county” stated Martin Kinuthia, CEO of Unaitas SACCO. “This branch represents our dedication to serving the people of Nyeri County and contributing to their financial well-being. We look forward to building strong relationships with our members and the community at large.” Governor Mutahi Kahiga, expressed his commitment to support financial institutions through joint collaborations between the public and private sectors in driving local development. “The opening of Unaitas SACCO’s Othaya branch is a testament to our shared commitment to economic progress and prosperity,” remarked Governor Kahiga. “We welcome Unaitas to Nyeri County and believe our people will find value from its value proposition so as to create opportunities for growth and empowerment within our county.” The Othaya branch inauguration ceremony was attended by key stakeholders in the region, dignitaries, and community members, symbolizing a collective step towards a brighter future for Othaya and the greater Nyeri county. Unaitas SACCO Triumphs Amidst Economic Challenges, Posts Over Kshs. 22B Assets In 2023 SACCO Trend 5 Unaitas SACCO CEO Martin Muhoho addressing delegates during the 31st Annual Delegates Meeting (ADM) held on March 22, 2024.
Despite the backdrop of high inflation, new government taxation policies, and persistent uncertainties in the business landscape of 2023, Qwetu SACCO has maintained an upward trajectory in its financial performance. This was evident during the SACCO’s Annual Delegates Meeting (ADM), held on April 20, 2024, at Vacani Hotel in Voi. The primary objective of the meeting was to deliberate on SACCO business matters, particularly to receive the audited accounts for the year 2023 and approve the distribution of surplus in the form of interest and dividends to SACCO members. SACCO performance In the year under review, membership grew to 55,615, up from 53,891 in 2022, representing an increase of 1,724, or about 3% growth. Additionally, the asset base surged to KSh 3.6 billion in 2023, up from KSh 3.2 billion in 2022, marking an increase of Ksh 333.2 million equivalent to a 10% growth. Qwetu SACCO member deposits also saw a rise to KSh 2.4 billion in 2023, up from KSh 2.1 billion reported in the 6 SACCO Trend I congratulate Qwetu SACCO members, delegates, board and the management for the good results the SACCO has posted. Lets continue being good ambassadors to the SACCO and bring in new members to patronise the society products and services By Gloria Kendi QWETU DT SACCO Officially Opens Plaza after posting over KSh 3.6b in assets Qwetu DT SACCO CEO Charles Kaba making his remarks during the Annual Delegates Meeting (ADM) held on April 20, 2024 Qwetu SACCO board chairman Mr Alfred Mlolwa (l) sharing sentiments with Co-operatives and MSME Developmet CS Simon Chelugui during the Annual Delegates Meeting (ADM) held on April 20, 2024 previous year, an increase of KSh 220.2 million indicating a growth rate of 10%. The SACCO loan portfolio expanded to KSh 2.7 billion during the same period under review, up from KSh 2.4 billion reported in 2022, reflecting an increase of KSh 346.2 million or a growth rate of 14%. Share capital saw robust growth to KSh 158.9 million in 2023, up from KSh 127.5 million in 2022,
The chief guest, Cooperatives and MSME Development CS Simon Chelugui making his remarks during Qwetu DT SACCO Annual Delegates Meeting (ADM) held on April 20, 2024 The chairman Alfred Mlolwa handing over a gift to the chief guest Mr Simon Chelugui marking an increase of Ksh 31.4 million, which represents a growth rate of 24%. Key Financial Matrix 2023 (Ksh) 2022 (Ksh) % change Membership 55,615 53,891 3 Total Assets 3.6 billion 3.2 billion 10 Members Deposit 2.4 billion 2.1 billion 10 Loan portfolio 2.7 billion 2.4 billion 14 Source: Qwetu DT SACCO Annual Report and Financial Statement for 2023. QWETU DT SACCO Officially Opens Plaza after posting over KSh 3.6b in assets SACCO Trend 7 This outstanding performance saw the SACCO pay out interest rate of 9.8% on members’ long-term deposits and a dividend of 13% on members’ share capital. Qwetu SACCO board chairman Mr Alfred Mlolwa congratulated the delegates, attributing the continued success of the Deposit Taking SACCO (DT SACCO) to their support and patronage. “I wish to sincerely appreciate your support and patronage and consistent, unequalled loyalty, support and confidence you have shown us,” he stated. Quetu SACCO Plaza The SACCO unveiled Qwetu plaza in Voi during the Annual Delegates Meeting (ADM), alongside the Voil branch, as way of enhancing efficient and convenient services to its members. Qwetu SACCO, which was regulated by SASRA in 2012, boasts branches in Taita, Taveta, Mwatate, Voi, and Wundanyi. The chief executive officer (CEO) Mr Charles Kaba applauded the SACCO members, delegates board and the management staff for their efforts in realising these key milestones. Kaba appealed to all potential members who wish to join a SACCO to consider the Qwetu, emphasising on the need to
save for tomorrow - “Faida leo na kesho.” “I congratulate Qwetu SACCO members, delegates, board and the management for the good results the SACCO has posted. Lets continue being good ambassadors to the SACCO and bring in new members to patronise the society products and services. At Qwetu we guarantee best services and member empowerment,” said Kaba. Chelugui urged the residents of Taita Taveta County to join cooperative societies as a means of enhancing their livelihoods. The CS emphasized that the nation leads Africa with the highest number of cooperatives which play a significant role in support of livelihoods. “The government is implementing strategies to lay a better foundation for cooperative societies,” said Chelugui. Chelugui added that the ministry would enhance the digital system, enabling members of cooperative societies to access all services digitally. QWETU DT SACCO Officially Opens Plaza after posting over KSh 3.6b in assets Qwetu DT SACCO CEO Charles Kaba making his remarks during the Annual Delegates Meeting (ADM) held on April 20, 2024 Qwetu DT SACCO delegates and invited guests chat outside the Qwetu Plaza after a successful launch during the Annual Delegates Meeting (ADM) held on April 20, 2024 The chief guest CS Simon Chelugui planting a tree after Qwetu DT SACCO Annual Delegates Meeting (ADM) held on April 20, 2024 The momentous occasion also witnessed the presence of top government officials within Taita Taveta County, including the Governor, Andrew Mwadime. Taita Taveta County Governor Andrew Mwadime congratulated the management of Qwetu SACCO for its efforts to strengthen the business sector and improve the lives of residents who invest in the institution. He pledged that his administration would continue to collaborate with the private sector to boost the county’s development. “I urge all citizens to join SACCOs and use Qwetu SACCO to access lowinterest loans to strengthen themselves economically through their businesses,” Mwadime recommended. The governor further urged residents to embrace the culture of saving to become self-reliant in the future. 8 SACCO Trend
By Sabila Namaemba SACCO Fraud Unit in full operation to curtail fraudulent acts among co-operative societies F or years, Kenyans have had the fear of saving their fortunes in Savings and Credit Cooperative Societies (SACCOs), following reported instances of fraudulent acts and embezzlement of funds. Many SACCOs have been forced to shut down operations after failing to meet members’ obligations, following embezzlement of funds by the management –a fact that has been scaring away Kenyans with the ambition of saving in SACCOs. However, the fear of saving in a SACCO need not to be instilled forever, as the SACCO Fraud Investigation Unit (SFIU) comes into effect to police the sector. According to Agriculture Cabinet Secretary Peter Munya, the unit –which was formed under SACCO Societies Regulatory Authority (SASRA) –is now in full operation and has so far finalized an investigation, caused an arrest and prosecution of a case where Shs.1.3 million, which had been embezzled by a suspect, has been recovered. SFIU comes into effect following President Uhuru Kenyatta’s directives to the State Department of Cooperative to form an investigative fraud unit, to govern the movement. The directives were issued to Cabinet Secretary Peter Munya, who has affirmed the operation of the unit under SASRA and DCI watch. “I am happy to report that the Fraud Unit has been established and fully operational. The unit is staffed by specialized officers seconded from the Directorate of Criminal Investigations and is functionally supported by SASRA’s technical staff,” says CS. Munya. The CS says that the unit is currently conducting more investigations, a move that has enabled it to disrupt the operations of a pyramid scheme-like entity, which was defrauding the public of their savings by falsely posing as a SACCO. CS Munya warns that, “Fraudsters and fraudulent schemes normally styled as SACCOs are therefore put on notice that the government will soon catch up with them.” Non-Deposit Taking SACCOs He goes ahead to caution members of the public from dealing with unregulated and unsupervised entities, advising them to undertake due diligence on any entity purporting to be a Savings and Credit Co-operative Society, before trusting their funds with them. Non-deposit taking SACCOs currently holding members’ deposits amounting to Shs.100 million and above will now be regulated by SASRA under new regulations aimed at streamlining the sector. This follows the publication of the SACCO Societies (Non-Deposit Taking Business) Regulations, 2020, which took effect on January 1, 2021. According to SASRA chairman John Munuve, the nondeposit taking SACCOs are expected to comply to the new regulations by applying to the authority within six months of the Regulations 2020, to be given a lee way to operate. Mr. Munuve says bringing these SACCOs under the regulatory oversight of SASRA will extend the benefits of regulated savings and loan services to more Kenyans, while improving the stability and resilience of the subsector. By implementing these regulations, the sector which covers a significant percentage of the country’s economy can regain its glory and members trust in spearheading financial growth and stability. Kenyans can now be assured of their financial dreams and expectations for future growth and development. SACCO Trend 9
Mwalimu National DT SACCO bounces back despite tough micro-economic environment, hits over KSh 66b in assets 10 SACCO Trend S avings and Credit Cooperative Societies (SACCOs) are among the key players that revamped Kenya’s economy, despite micro-economic challenges coupled with tight fiscal consolidation measures in 2023. Societies like Mwalimu National DT SACCO weathered these economic trends to bounce back to positive trajectory during the year under review. The SACCO reported a 9% turnover jump to KSh 8.38 billion for the fiscal year ending December 31, 2023. This impressive growth, up from KSh 7.71 billion recorded in 2022, underscores the SACCO’s commitment to stakeholder and member value creation despite the prevailing challenges. Speaking during the SACCO Annual Delegates Meeting (ADM) held on Saturday, March 2, 2024, Mwalimu National SACCO board of directors Joel Gachari attributed the strong performance the societies improved governance and strong member support. Mwalimu National SACCO board is committed to grow its core business through decision influenced by market dynamics and strong strategic intent aimed at transforming the society SACCO performance and strategy “Mwalimu National SACCO board is committed to grow its core business through decision influenced by market dynamics and strong strategic intent aimed at transforming the society. This has enabled us to tailor-make products and services that meet our members needs and expectations,” said Mr Gachari. The SACCO National chairman noted that the society loan book grew by 3.4% from the previous year to stand at KSh 45 billion, from KSh 43.5 billion, reported during the previous year. Member deposit portfolio grew by 4.5% from KSh 47.29 billion in the previous year to KSh 49.3 billion during the same year under review. Mwalimu National SACCO, the leading society in the country in terms of assets, reported a growth in asset By Andrew Walyaula Mwalimu National SACCO chairman Joel Gachari presenting tje board of directors report during the Annual Delegates Meeting (ADM) held on March 2, 2024
SACCO Trend 11 Mwalimu National DT SACCO bounces back despite tough micro-economic environment, hits over KSh 66b in assets I can attest that we have remained true to our fundamental principle of placing our members at the heart of everything we do Malimu National SACCO delegates following the proceedings of the Annual Delegates Meeting (ADM) held on March 2, 2024 base to KSh 66.4 billion from KSh 64.05 billion in 2022, indicating its expanding influence and market presence. With a membership growth of 11.85% during the same year under review, the SACCO unveiled a new Strategic Plan to ensure sustainability in members service and value creation. Mr Gachari noted that the new strategy entails Mwalimu National SACCO aspirations for a sustainable future, which meets the society’s mandates in the cooperative movement. “I can attest that we have remained true to our fundamental principle of placing our members at the heart of everything we do,” said the chair.
12 SACCO Trend Mwalimu National DT SACCO bounces back despite tough micro-economic environment, hits over KSh 66b in assets The Strategic Plan focuses on: • Enhancing customer experience and enagement • Strengthening the SACCO core mandates • Focusing on people and culture • Embedding strong governance and leadership • Pursuing strategic partnership Mwalimu Nation DT SACCO Chief Executive Officer Kenneth Odhiambo said the strategy will ensure customer centricity across the product and service orientation countrywide. “Our desire is to work synergically to drive strategy and create sustainable shared value focused on the members who are the ultimate owners,” said Mr Odhiambo. The CEO emphasised on the strategy’s key mandate of nurturing members dreams to possibilities for a better future. Odhiambo revealed that the three-year strategy intends to achieve the following: 1. Grow the SACCO asset base to a tune of KSh 100 billion 2. Grow membership to 200,000 members 3. Increase turnover to KSh 17 billion “The SACCO will leverage on its internal capacity around Environmental, Social and Governance (ESG) initiatives with a framework as a pioneer SACCO in the emerging space,” he said. Message from Cooperative CS Simon Chelugui His sentiments were echoed by the chief guest, Cooperatives and MSME Development Cabinet Secretary (CS) Simon Chelugui, who applauded the SACCO board, management, delegates and members for roaring back to its stand in the movement. Chelugui attributed the best performance reported during the year under review to good corporate governance and management, which the society has been employing to meet its mandates. The CS acknowledged the SACCO’s foot in the cooperative movement and the entire financial sector, building the country’s economy. “Mwalimu National DT SACCO Society Ltd occupies a very special position in serving the financial sector in this country. I want to thank the board, management and members for the efforts levelled in realising this outstanding growth,” said Chelugui.
As SACCOs conduct annual general meetings to assess their growth in the past one year, Ardhi SACCO is among the societies that have reported growth in various areas despite the challenging economic conditions in the country in the just concluded year. Despite high inflation and the high cost of living that has strained consumer spending, in the year 2023, Ardhi SACCO had member deposits amounting to KSh 2.06 billion and its loan portfolio stood at Ksh 2.02 billion, while the asset base hit KSh 2.4 billion. The society went on to increase its share capital by 2.5% while member deposits grew by 3.2%. The board of directors at Ardhi SACCO recommended members to be paid 2023 dividends at the rate of 6.6% up from 2022’s 6.5% and 6.5% for rebates up from 2022’s 6.2%. According to Ardhi SACCO’s National Chairman Joseph Ochola, the 8.3% growth in dividends and rebates to members is attributed to a slight growth in turnover and a substantial reduction in operating expenses. Service delivery The growth in the society’s key performance indicators is attributed to the sustainable, efficient and convenient service delivery. Ardhi SACCO leverages alternative banking channels including mobile banking (Pesa Pepe) among other technology driven services that suits the needs of its 25,393 members drawn from various sectors of the economy. “We have invested more in technology, infrastructure, people and systems to make us continuously better,” said Ochola. Ardhi SACCO has existed for over five decades, being registered in 1971. It accepts members from various walks of life including government ministries, groups, individuals, institutions, the private sector, and Kenyans in the diaspora. It prides itself in accuracy, reliability, diversity, humility, and integrity to serve its member through various 14 SACCO Trend By Marion Achieng Ardhi SACCO records KSh 2.4b in assets, thanks to member value creation and sustainable service Ardhi SACCO National Chairman Joseph Ochola addressing delegates during the Annual Delegates Meeting (ADM) held on March 23, 2024
products and services. The SACCO was initially for members in the ministry of lands and settlement, but later opened up to other ministries, individuals, and groups. Products and Services Ardhi SACCO members have access to various savings and loan products to support diverse customer needs. Their savings products include biashara, holiday, junior, and retirement accounts, allowing members to save for different purposes. Members also have access to different loans at Ardhi SACCO such as emergency, development, school fees, and karibu member for new members. The karibu loan is a unique offer. A new member is able access a loan of up to Ksh 100,000 to be repaid in 18 months. However, this product is for salaried members only and must be fully guaranteed. How to Join Ardhi SACCO People from various sectors of the economy can join Ardhi SACCO. The first step is to fill an application form and the requirements are as follows. • A one-time membership fee of Ksh 1,000 • A monthly contribution of Ksh 2,500 • A sinking fund of Ksh 300 • Two passport photographs, copy of ID and pin number Ardhi SACCO is based at Survey of Kenya, Ruaraka, Nairobi and has branches in different areas to serve its members. Ardhi SACCO records KSh 2.4b in assets, thanks to member value creation and sustainable service Keeping up with Technological Advances Mobile banking has revolutionized financial transactions in Kenya and Ardhi SACCO has stayed up to date with this advancement, fostering convenience for members. The SACCO has a paybill number 305750 which members can us to make deposits. It also uses an SMS banking system that sends alerts to members’ phones, improving financial services. Ardhi SACCO members can also transact through its PESA PEPE app. There are also USSD codes *879# and *806# that customers can dial to complete transactions. With the invention of digital lenders who offer instant loans through customers’ mobile wallets, financial institutions have had to step up to match the competition. Ardhi SACCO has a product called M-Ardhi loan that allows members to get instant loans, ensuring members get the quick financial assistance they need. Looking into the Future Even with digital developments like PESA PEPE App, mobile banking, and instant loans, Ardhi SACCO intends to open FOSA branches in strategic counties to enhance service delivery for members. The SACCO has also contracted a cyber-security company that conducts daily monitoring of its systems to ensure smooth running of operations. With innovative mobile banking solutions and setting up new branches, among other interventions, Ardhi SACCO intends to enhance service delivery to members. SACCO Trend 15 Ardhi SACCO delegate reacting to a point in the chairman’s report during the Annual Delegates Meeting (ADM) held on March 23, 2024
As the first Shariah-compliant financial service provider since 1998, Taqwa SACCO continues to outshine in the co-operative movement. The SACCO is committed to corporate governance in ensuring member investment value creation. Speaking during the 23rd Annual General Meeting held May 4, 2024, Taqwa SACCO board of directors chair Dr Ahmed Yussuf, MBS noted that the society operations are anchored on governance structures which promote transparency, accountability, and ethical conduct at all levels. “We have established rigorous risk management frameworks and governance structures, designed to mitigate potential threats and ensure the prudent management of our resources,” said Yussuf. Through good leadership style employed by the SACCO and member loyalty, Yussuf noted, Taqwa has been posting tremendous growth and performance. For the year ending December 2023, the SACCO posting growth By SACCO Trend Reporter 16 SACCO Trend Taqwa SACCO commits to corporate governance, posts 12.22% asset growth in 2023 in asset base of up to KSh 1.63 billion, up from KSh 1.46 billion reported in 2022. “We are delighted to announce that we have not only met but also surpassed our goals for the year 2023. This remarkable achievement is a testament to the dedication and hard work of our team and the unwavering support of our valued members,” he said. SACCO performance The SACCO posted an increase in membership from 12,705 members in 2022 to 13,648 members in 2023, representing a 7.42% growth. This saw an increase of 11.91% in deposits from KSh 1.3 billion to KSh 1.4 billion. “I call upo you (members) to continue being good ambassadors of Taqwa SACCO, spreading awareness and advocating for the benefits of membership within their communities,” the chair urged. The SACCO disbursed loans to members amounting to KSh Taqwa SACCO chairman Dr Ahmed Yussuf addressing members during the 23rd Annual General Meeting held May 4, 2024
We are delighted to announce that we have not only met but also surpassed our goals for the year 2023. This remarkable achievement is a testament to the dedication and hard work of our team and the unwavering support of our valued members 1 billion during the same year under review, from KSh 934.5 million reported in the previous year, representing 7.6% growth. Revenue increased to KSh 67.4 million representing a substantial increase from KSh 41.8 million reported in the previous year. Performance at a glance Key Financial Matrix 2023 2022 % Change Membership 13,648 12,705 7.42% Total Assets KSh 1.6 billion KSh 1.5 billion 12.22% Members Deposit KSh 1.4 billion KSh 1.3 billion 11.91% Loan portfolio KSh 1 billion KSh 934.5 million 7.58% Source: Taqwa SACCO Annual Report and Financial Statement for 2023 Taqwa SACCO commits to corporate governance, posts 12.22% asset growth in 2023 SACCO Trend 17 Loan products and service delivery Taqwa SACCO partnered with GulfCap Real Estate, which enables the society to offer affordable housing options in Starehe Point, Nairobi, and Buxton Point, Mombasa. The move aligns with the governments’ affordable housing programme aiming to ensure each avery Kenyan owns a decent home. To ensure effective and convenient service delivery, the SACCO continued with it expansion drive, setting plans for the opening of Mombasa branch in the second quarter of 2024. The chair revealed that palns are underway to open branches in other regions. “We are preparing to launch agency banking, expanding our reach and accessibility, and we are working on improvements to our Mobile Banking application to provide you with an even better user experience. These initiatives underscore our dedication to leveraging technology to meet the evolving needs of our members and enhance your banking experience,” said Yussuf. Taqwa SACCO member speaks during introduction at the 23rd Annual General Meeting held May 4, 2024
Taqwa SACCO commits to corporate governance, posts 12.22% asset growth in 2023 18 SACCO Trend CSR The society also signed a strategic partnership with Zakat Kenya to meet the financial needs of different members through Zakat funds. Dring the 25th Anniversary Celebration in December 2023, the SACCO launched the Taqwa SACCO Foundation, furthering its mission of social responsibility and community empowerment. Taqwa SACCO is not left behind when it comes to giving back to the society or the community in which it operates from. In 2023, the chair noted that the SACCO visted children’s homes in Nairobi and Machakos, making a positive impact on the lives of the needy. “These initiatives underscore our commitment to giving back to the communities we serve and making a meaningful difference in the lives of others,” he explained. With over 25 years in service, Taqwa SACCO has and continues to help thousands of members in halal credit financing for investments, emergencies, and school fees, among others. The SACCO draws its members from across East Africa and in Diaspora. With over 25 years in service, Taqwa SACCO has and continues to help thousands of members in halal credit financing for investments, emergencies, and school fees, among others. The SACCO draws its members from across East Africa and in Diaspora Taqwa SACCO members frollowing the proceedings of the 23rd Annual General Meeting held May 4, 2024
Mhasibu SACCO remains resilient and vigilant, and continues to navigate the financial landscape with prudence, adapting to these dynamics to ensure the sustained wellbeing of our members S avings and Credit Cooperatives Societies (SACCOs) have remained resilient, weathering the tough economic environment coupled with changes in taxation, political uncertainty and a significant economic slowdown compounded by rising inflation and currency depreciation. In 2023, the economic landscape was marred with both global and domestic challenges. However, financial service providers, especially SACCOs stood the test and emerged victorious in the daily operations and mandates. Mhasibu Non-Withdrawable Deposit Taking (NWDT) SACCO is among the top societies in Kenya that weathered these myriads of challenges to register growth in asset base. The SACCO total assets grew from KSh 8.6 billion reported in 2022 to KSh 9.8 billion as of December 31, 2023. This translates to an asset base of nearly KSh 10 billion in the second quarter of the current financial year 2024. Speaking during the SACCO 35th Annual General Meeting (AGM) held in March 2024, Mhasibu board of directors chairlady CPA Jennifer Mburu attributed the outstanding performance to continued member support and empowerment. By Clarence Imbayi 20 SACCO Trend Mhasibu NWDT SACCO Hits KSh 10b in assets, unveils FOSA services “Mhasibu SACCO remains resilient and vigilant, and continues to navigate the financial landscape with prudence, adapting to these dynamics to ensure the sustained well-being of our members,” said the SACCO chairlady Mburu. Why Mhasibu unveils FOSA services The sturdy performance prompted Mhasibu SACCO members to approve a decision to implement the Front office Service Activity (FOSA) operations. Mburu revealed that the SACCO is in the process of setting up the FOSA services, which will enable it to meet members’ banking needs. “FOSA will also extend additional financial products and services to complement those offered by the back office,” she said. CPA Jennifer Mburu, Chairperson, Mhasibu NWDT SACCO posing for a photo
The benefit that FOSA services will accrue to Mhsaibu SACCO members include: • Processing of members’ salaries and dividend payments. • Provide short- and long-term credit at competitive interest rates. • Provide ATM services (through SACCO Link Card), thus easy access to funds. • Encashment of Cheques. • Bankers’ cheques. • Offering standing orders to account holders. Mhasibu NWDT SACCO Hits KSh 10b in assets, unveils FOSA services SACCO Trend 21 • Enabling SACCO payments to members through their FOSA accounts. SACCO performance Taqwa SACCO growth is steady, with membership totalling 25,428 members during the same year under review. The SACCO implemented the group and corporate membership, which has seen an influx of both professional, business and group members. Member deposits increased by KSh 862.8 million or 13% to stand at KSh 7.6 billion in 2023, up from KSh 6.8 billion reported in 2022. Mhasibu NWDT SACCO Mhasibu SACCO officials let by chairlday CPA Jennifer Mburu perusing through documents
22 SACCO Trend Mhasibu NWDT SACCO Hits KSh 10b in assets, unveils FOSA services Mhasibu NWDT SACCO The SACCO revenue crossed the KSh 1 billion mark to KSh 1.1 billion, representing a growth rate of 20%, which the chairlady attributed to members trust and support in patronising the SACCO products and services. Loan book grew by KSh 1.3 billion or 21% to stand at KSh 7.6 billion during the same year under review, up from KSh 6.3 billion reported in the previous year. Performance at a glance Key Financial Matrix 2023 2022 2021 Membership 25,428 22,983 21,707 Total Assets KSh 9.8 billion KSh 8.6 billion KSh 7.5 billion Members Deposit KSh 7.6 billion KSh 6.8 billion KSh 5.9 billion Loan portfolio KSh 7.6 billion KSh 6.3 billion KSh 5.4 billion Source: Mhasibu NWDT SACCO Annual Report and Financial Statement for 2023 collective efforts and dedication of our members, staff, and leadership,” the chair insisted. Many factors contributed to this outstanding performance which include: • The SACCO commitment to the realization of the strategic plan • Leverage of technology leading to enhanced operational efficiency & member experience • Member education and engagement • Member patronization of products and services. Mhasibu SACCO members education forum in Kisumu The chair noted that in 2023, the SACCO continued to place its members at the center of its decisions, making significant contributions to the wellbeing of the members and the society. Taqwa paid dividend of 15.5% (KSh 130.2 million) per share and interest on deposits of 8.6% (KSh 610.6 million) to members for the same year under review. Why Mhasibu registered growth in key performance indicators “The impressive performance is a testament to the
SACCO Trend 23 Mhasibu NWDT SACCO Hits KSh 10b Mhasibu NWDT SACCO in assets, unveils FOSA services • Sound governance and our adaptation to changing market economic conditions. Strategic plan 2021-25 Mburu highlighted the SACCO commitment to the implementation of the 2021-25 strategic plan, which she said has achieved much of its objectives. Some of which include asset base which The SACCO has hit KSh 10 billion and revenue crossing the KSh 1 billion mark. The plan focuses on: • Strengthening of financial sustainability of Mhasibu SACCO. • Innovation and adoption of technology for efficient service delivery. • Providing prompt and quality products & services to customers. • Attracting, developing, and retaining competent staff to support Mhasibu SACCO attain its vision. • Enhancing Mhasibu SACCO’s corporate image to build lasting relationships with customers and other stakeholders. • Promoting corporate governance best practice that supports Mhasibu as a SACCO for professionals Member service and technology According to the SACCO chief executive officer (CEO) CPA Eunice Kanyi, Mhasibu has and continues to leverage technology in meeting members financial needs and expectations. Through the mobile banking services, like M-HASIBU PRO, USSD and member portal, Kanyi explained that the society attains its mandates effectively and conveniently. “The improved alternative self service solutions, including the robust member’s portal, alternative feedback channels, enhanced capacity on customer service, and the newly launched M-HASIBU PRO and USSD have enhanced service delivery and convenience to our members. I urge members to interact with these platforms to Invest, Save, Borrow, and grow their wealth,” said the SACCO CEO CPA Eunice Kanyi. Kanyi noted that these services enable the SACCO to deliver loan products that are most affordable in the market at very attractive and flexible terms and conditions. 2024 focus In current fiscal year, Taqwa SACCO focus remains with the member support, empowerment and valued creations. According the CEO, this will only be achieved via technology, innovation, open communication, collaboration and connections. Optimizing operation acceleration, iroviding an exceptional experience for all members, investing and creating an inclusive and supportive investment environment also forms part of Mhasibu SACCO strategy. The improved alternative self service solutions, including the robust member’s portal, alternative feedback channels, enhanced capacity on customer service, and the newly launched M-HASIBU PRO and USSD have enhanced service delivery and convenience to our members. I urge members to interact with these platforms to Invest, Save, Borrow, and grow their wealth
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Siraji becomes first DT SACCO to partner with a university, gears towards member value creation and empowerment By Sabila Namaemba Siraji SACCO board chair Franklin Mwirigi addressing delegates during the Annual Delegates Meeting (ADM). Siraji SACCO CEO Felix Ochieng addressing delegates during the Annual Delegates Meeting (ADM). SACCO Trend 25 On Thursday, March 14, Siraji SACCO held its Annual Delegates Meeting (ADM), with the SACCO proudly achieving the aim of the Cooperatives formation in the country, for the last 28 years. The event was graced by the Vice Chancellor of Cooperative University of Kenya Prof. Kamau Ngamau, who signed the first of its kind-deal between the SACCO and the university. Speaking during the ADM, the SACCO Chairperson Mr Franklin Mwirigi said the society has been able to achieve a number of primary objectives including creating a source of funds to members, enabling members to improve their respective economic and social conditions as well as promoting an opportunity to accumulate their savings. The SACCO recorded a positive deviation in assets in the year 2023 up to KSh 663.3 million from KSh 584.6 million in 2022 and KSh 512.8 million reported in 2021. This represented a percentage increase of 11.87%. Siraji SACCO total revenue for the year ending December 31, 2023, increased to KSh 109.2 million, as compared to KSh 95.3 million in 2022 and KSh 78.6 million in 2021, showing a positive growth of 12.79%. SACCO Performance The year 2023 was full of economic turbulence and stagnation for many Kenyans, in addition, the new government taxes greatly affected SACCO savings. Despite these harsh economic times, Sajiri SACCO recorded an
26 SACCO Trend Siraji becomes first DT SACCO to partner with a university, gears towards member value creation and empowerment at KSh 405.5 million in the year 2023. Loan disbursed to members recorded an increase 6.88% from KSh 346 million in 2022 to KSh 371.6 million in 2023. The net operating surplus before tax grew from KSh 9.5 million in 2021 and KSh 10.6 million in 2022 to KSh 11.6 million in 2023, representing a positive variance of 8.37%. Siraji SACCO shared capital increased in the last financial year from KSh 51.9 million reported in 2021 and KSh 55.4 million in 2022 up to KSh 58. 6 million, showing an growth rate of 5.52% during the same period under review. Performance at a glance Key Financial Matrix 2023 (KSh) 2022 (KSh) Growth (%) Total Assets 663.3 million 584.6 million 11.87 Members Deposit 405.4 million 365.4 million 9.89 Share Capital 58.6 million 55.4 million 5.52 Revenue 109.2 million 95.3 million 12.79 Source: Siraji SACCO Annual Report and Financial Statements “I’m happy to inform you that the SACCO attained full compliance with all SACCO Society Regulatory Authority increase in members deposits as compared to the previous years. Members deposits increased by 9.89% from KSh 315.7 million in 2021 and KSh 365.4 million in 2022, to stand Chief gues, Vice Chancellor of Cooperative University of Kenya Prof. Kamau Ngamau addressing Siraji SACCO delegates during the Annual Delegates Meeting (ADM). Siraji SACCO board led by chair Franklin Mwirigi and chief guest pose for a photo with officials during the Annual Delegates Meeting (ADM).
SACCO Trend 27 Siraji becomes first DT SACCO to partner with a university, gears towards member value creation and empowerment (SASRA) regulations throughout the year,” Mr Mwirigi said. Mwirigi urged the SACCO delegates and members to continue being good ambassadors and help the society attained its mandate for sustainable member service and support. The chair said the SACCO has formulated several policies and are about to be adopted by the board to enhance efficiency of operations and boost governance. “In the year 2023 the board formulated several policies and are about to be adopted by the board of directors. Once these policies are ready, we shall ensure our services to members will improve and the SACCO’s control beefed up,” Mwirigi affirmed. Strategic plans and partnership To cushion members and mitigate the challenges in meeting their financial needs, the SACCO has analyzed the business environment and their strategic decision making. The strategy focuses on the introduction of advance normal loan for low income earners, 5 year period for loan repayment to enhance member value creation. Siraji SACCO goes down the history lane as the first Primary SACCO in the country to partner with a University Chief gues, Vice Chancellor of Cooperative University of Kenya Prof. Kamau Ngamau addressing Siraji SACCO delegates during the Annual Delegates Meeting (ADM). To cushion members and mitigate the challenges in meeting their financial needs, the SACCO has analyzed the business environment and their strategic decision making. The strategy focuses on the introduction of advance normal loan for low income earners, 5 year period for loan repayment to enhance member value creation
ICT With the digital era being the new norm in averting modern challenges, Siraji SACCO has embrace bio data registration for its members, as a way of offering them with data safety and security. “This will ensure that only rightful owners of accounts will transact with the system. The system will reduce risks and complains of cash withdrawn by people impersonating the account holder,” said Mwirigi. Admitting of a low turnout of members at the beginning of the registration, the Chairperson called delegates to encourage their members to register with the system and the advantage that it comes with to their members. The SACCO additionally opened two new branches in Isinya and Kibirichia respectively, bringing services close to their members. “We have managed to open more branch network by opening FOSA services in Isinya and Kibirichia branches. By doing so we have taken all our services closer to our members and ensure we meet the growing financial needs of our members and the target customers,” he added. in the country. The MOU signed between the SACCO and Cooperative University of Kenya during the ADM sees a partnership geared to increase and leverage Cooperative members financial and investment skills and experience for the SACCO staff. Commending the efforts by the SACCO in alignment with the government’s Bottom-Up Economic Transformation Agenda, the Vice Chancellor of Cooperative University of Kenya Prof. Kamau Ngamau said the institution is ready to offer its services to enhance patronage of the SACCO subsector by Kenyan youth. “This MOU is a sign of our commitment to walk with you through your prosperity journey, and an indicator to our endless support to bring Cooperatives to greater heights. This new agreement will create a platform for structural approach to our engagement, which will enable us to support you in training and capacity building, as well as provide a skilled human resource,” Prof Ngamau said. Ngamau explained that the has taken as an investment to market its services and make them accessible to all Cooperatives, in line with the government’s Bottom-Up Economic Transformation Agenda, touching on women and the youth. “The SACCO membership is largely dominated by members aged 55 and above, which represents 60% of a nation with a youthful population. Through this partnership, we want to ensure that youths are incorporated in the SACCO movement. Additionally, we will work with youths in technology to counter the new challenges that arises in the SACCO sub-sector,” he noted. Through the partnership both parties will benefit with; • Enhances training and capacity building for the SACCO • Joint research, innovation and development activities • Facilitate growth and development of the Cooperatives sector through Endowment Fund • Provision of technical expertise on Cooperatives policy, law and other areas agrees upon by the parties • To provide attachment and internship to the students • To offer conference facilities to the SACCO • Promote Corporate Social Responsibility between the parties 28 SACCO Trend Siraji becomes first DT SACCO to partner with a university, gears towards member value creation and empowerment This MOU is a sign of our commitment to walk with you through your prosperity journey, and an indicator to our endless support to bring Cooperatives to greater heights. This new agreement will create a platform for structural approach to our engagement, which will enable us to support you in training and capacity building, as well as provide a skilled human resource
This is a clear manifestation that the society has taken growth trajectory. I therefore call upon each one of us to join hands in achieving more growth by patronising the SACCO services S avings and Credit Co-operative Societies (SACCOs) have remained resilient despite the challenging economic environment experienced in the financial year 2023. Coupled with inflationary pressures and new government tax policies, the year posed tough times in the macroeconomic environment but SACCOs like Orient ensured their members financial needs and expectations are met. The society posted outstanding performance in key indicators including revenue, loans, member deposits and share capital, during the financial year ending December 31, 2023. Speaking during Orient SACCO 26th Annual General Meeting (AGM) held in April 2024, the board of directors chairman Joseph Kinuthia applauded the SACCO board and the management staff for their dedication and hard work in ensuring members needs and expectations are met. “This is a clear manifestation that the society has taken growth trajectory. I therefore call upon each one of us to join hands in achieving more growth by patronising the SACCO services,” said Kinuthia. SACCO performance Kinuthia confirmed the state of the SACCO’s tremendous growth as indicated in the annual report and financial statement. From the books of account, revenue grew from By SACCO Trend Reporter 30 SACCO Trend Orient SACCO Registers Growth in Key Indicators, Offers High Returns to Members Orient SACCO Board of Directors Chair Joseph Kinuthia addressing members during the 26th Annual General Meeting (AGM) held in April 2024 Orient SACCO CEO Allan Njora addressing members during the 26th Annual General Meeting (AGM) held in April 2024
I urge you (members) to continue being good ambassadors to the SACCO and patronise all the products and services for a better financial future KSh 38.9 million in 2022 to KSh 39.3 million in 2023, representing 1.2% growth. Orient SACCO disbursed loans to members, growing its gross loan book by 2.2% to KSh 195.8 million during the same year under review, from KSh 191.5 million in 2022. This resulted to a decrease in loan provisioning by 0.5%. Members’ deposits increased by KSh 1.4 million or 0.4% from KSh 351.1 million reported in 2022 to KSh 352.5 million posted in 2023. Orient SACCO Registers Growth in Key Indicators, Offers High Returns to Members SACCO Trend 31 Share capital increased to KSh 21.6 million in 2023 from KSh 21.2 million in the previous year, while the SACCO surplus grew to KSh 8.1 million during the same year under review. Performance at a glance Key Financial Matrix 2023 2022 Members Deposit KSh 352.5 million KSh 351.1 million Loan portfolio KSh 195.8 million KSh 191.5 million Share capital KSh 21.6 million KSh 21.2 million Revenue KSh 39.3 million KSh 38.9 million Return to members Since its inception, Orient SACCO has and continues to guarantee member value creation and empowerment. The SACCO offers competitive rates on fixed deposits for a specific time, which is accessible upon maturity and open for renewal for another term. Board of directors chair Kinuthia appealed to SACCO members to take advantage and invest in this high yielding facility. Under this facility, members fixed deposit account increased to KSh 14.1 million from KSh 13.6 million during the same year under review. These outstanding performance and growth saw Orient SACCO pay out dividends on members shares amounting to KSh 865,709. “I urge you (members) to continue being good ambassadors to the SACCO and patronise all the products and services for a better financial future,” he advised. Orient SACCO Board of Directors Treasurer Bedan Kinyanjui addressing members during the 26th Annual General Meeting (AGM) held in April 2024 Orient SACCO member reacting to a point in the annual reports during the 26th Annual General Meeting (AGM) held in April 2024
Strategic plan 2022-2026 Orient SACCO rides on a well grafted strategic plan, thanks to the leverage of corporate governance structures and good leadership. Kinuthia revealed that currently, the SACCO run on a five-year strategic plan 2022-2026, which was implemented in the financial year 2022. This has seen the SACCO achieve most of its mandates, including improved member service delivery through the Information and Communication Technology (ICT) focus. The plan focuses on: • Increasing deposit contribution • Improving core capital by increasing minimum share capital contribution. • Member education, which was a centre stage in the year 2024. The chair added that the SACCO intends to improve on the initiative going forward. • ICT Pillar – the SACCO leverages alternative banking services including mobile banking to enhance service delivery. • Member recruitment by referral – the SACCO encourages its members to refer their friends, colleagues and relatives to grow its membership. Orient SACCO draws its members from the teaching fraternity, employees of the teacher related organisation, businesses, group and individuals. “We appreciate your(members) support and patronage. The SACCO would not be where it were today without the consistent, unequalled loyalty and confidence you have shown to the society,” the chair applauded the members. 32 SACCO Trend Orient SACCO Registers Growth in Key Indicators, Offers High Returns to Members
Unison continues expand roots among Tier 1 SACCOs, records over KSh 7b in assets By Marion Achieng As SACCOs hold annual general meetings (AGMs) to begin another financial year, members wait patiently to see how their societies have performed and what they stand to gain. Unison SACCO posted impressive returns for members in the year 2023 with its board of directors announcing the payment of dividends on share capital at the rate of 17% and interest on member non-withdrawable deposits at 12.6%. SACCO’s steady growth Unison SACCO maintained interest rates on loans despite challenging economic times which saw its loans portfolio grow from KSh 5.7 billion to KSh 6.3 billion. The SACCO’s asset base also grew to KSh 7.73 billion for the period ending December 31, 2023 from KSh 6.78 billion in 2022. The SACCO share capital increased to KSh. 311.14 million from KSh 253.49 million in 2022 while non-withdrawable 34 SACCO Trend Unison SACCO chairman Mr. Christopher Gichimu addressing members during the Annual General Meeting (AGM). Unison SACCO baord of directors led by chairman Mr. Christopher Gichimu pose for a photo during the Annual General Meeting (AGM).
individual, groups, and junior accounts with the SACCO. The savings accounts options include fixed deposit, save as you earn, seasons savings, and silverseed accounts. As for available loans, the choices include development, dividend advance, emergency, FOSA, normal, salary advance, and express loans. Additionally, checkoff loans are available within 24 hours after filling the application form. Mobile Banking Like many other forward thinking, up to date financial institutions, Unison members can also transact through the Unison SACCO mobile application, which enhances customer experiences considering the technological advances in the finance industry. Members can withdraw money, make deposits, access loans, check account balances, make internal funds transfer, and pay for utilities like KPLC tokens and buy airtime. Members can also use the USSD code *882*80# instead of the app to make transactions such as withdrawing cash, making payments and deposits, accessing loans, paying for utilities, and transferring funds. The code comes in handy for members that may not have smartphones or those with internet access challenges. Unison SACCO was founded in 1977 and was initially called Laikipia Teachers SACCO before rebranding to its current name in 2014. The society has members drawn from various sectors including the Teachers Service Commission (TSC) teachers, civil servants, private schools employees, micro-credit groups, corporates, and businesses. Unison SACCO offers loans and savings products to support the financial progress of its members. Members can open individual, groups, and junior accounts with the SACCO. The savings accounts options include fixed deposit, save as you earn, seasons savings, and silverseed accounts deposits increased from KSh 3.56 billion to Ksh 4.32 billion, improving the entity’s positioning in the SACCO sector. Speaking during the Annual General Meeting (AGM) held in Kakamega, Unison board chairman Christopher Gichimu urged members to increase their savings and enhance their chances to meet their financial needs through the society. “We invite every member to save with us since they help the SACCO to stay liquid,” Gichimu stated, citing a growth in membership from 49,712 members to 56,818 members. Members service access Unison SACCO is a deposit taking SACCO that has various branches where members can visit and get the assistance they need. The branches are also interconnected allowing members to access services from whichever branch is near them, a feature that fosters convenience and efficiency in service delivery. Its head office is based in Nanyuki and has branches in various locations including Nyahururu, Wiyumiririe, Kinamba, Timau, Rumuruti, Isiolo, Maralal, and NaroMoru. The SACCO is up to date with current technology as customers and potential members can also reach it through social media, Twitter and Facebook. Unison SACCO offers loans and savings products to support the financial progress of its members. Members can open SACCO Trend 35 Unison continues expand roots among Tier 1 SACCOs, records over KSh 7b in assets Unison SACCO members following the proceedings of the Annual General Meeting (AGM)
B oresha Deposit Taking (DT) SACCO Society has opened its 18th branch in Kitale, Trans Nzoia County, in line with its 2021-2025 strategic plan to expand its presence in Western Kenya through a targeted growth strategy. The SACCO Chief Executive Officer of the SACCO Jacob Mengich said the Kitale branch, which has been operational for the past 12 months, has garnered a membership of 3,000 account holders. The majority of these members are farmers and smallscale traders. “This branch is for the SACCO and its members, as it will serve as our base for the western Kenya region up to Turkana County. We encourage residents to patronise the SACCO products and take advantage of our competitive credit facilities,” said Mr Mengich. SACCO growth The SACCO board of directors chairman, Albert Chebyogon, mentioned that the SACCO has grown its membership to 82,000 since its inception in 1976. Initially established as the Baringo Teachers SACCO, Boresha rebranded in 2012 to attract Boresha DT SACCO Continues to Expand, Opens 18th Branch in Kitale to meet growing need of its members By Philip Bwayo 36 SACCO Trend This branch is for the SACCO and its members, as it will serve as our base for the western Kenya region up to Turkana County. We encourage residents to patronise the SACCO products and take advantage of our competitive credit facilities The Trans Nzoia County Executive Committee Member for Agriculture, Livestock, Irrigation, and Cooperative Movement Phanice Khatundi cuts a cake to symbolize the launch of the Boresha DT SACCO Kitale Branch.
membership across the board. “We currently have a presence in seven counties with a total of 209 delegates. As we aim to enhance our growth, we plan to open more branches across western Kenya,” said Mr Chebyogon. The Trans Nzoia County Executive Committee Member for Agriculture, Livestock, Irrigation, and Cooperative Movement, Phanice Khatundi, who served as the chief guest, assured to provide the necessary regulatory support to the branch. “We are committed to working with cooperative societies to foster growth, as we recognize the developmental impact such movements can have on the economy across various sectors through the provision of affordable credit facilities,” said Ms Khatundi. Boresha DT SACCO, classified in the one-tier category and ranked 20th nationwide by the SACCO Societies Regulatory Authority (SASRA), achieved a 15% growth in assets, increasing from KSh 9.9 billion in 2023 to KSh 11.4 billion as of January 2024. “The savings deposit stood at KSh 7.8 billion, while the loan book portfolio amounted to KSh 11.1 billion as of January. This success is attributed to good governance and management, members’ patronage, and the adoption of technology,” said the CEO. Boresha SACCO conducts financial literacy training through seasoned facilitators in their areas of operations focusing on improving savings and investment skills, as well as corporate skills for the SACCO management that meets the growing and changing member needs. Member services The SACCO embraces alternative banking channels (ABCs) like the M-Boresha – a mobile banking service that enables its members to access salaries, dividends advances, checking account statements, withdrawals and deposits among other services. This ensures member safety and guarantees Boresha SACCO account access at any time at members’ convenience. Boresha SACCO also embraces technology to manage its functions and services. This includes the use of ATM SACCO Link Cards including visa-branded cards for members to transact at their convenience, Member Recruitment App, Members Portal and Xmobi – giving members real time access to their account and Document Management System DMS. SACCO Trend 37 We currently have a presence in seven counties with a total of 209 delegates. As we aim to enhance our growth, we plan to open more branches across western Kenya Boresha DT SACCO Continues to Expand, Opens 18th Branch in Kitale to meet growing need of its members Boresha SACCO awards Boresha SACCO emerged among top societies during the 101s Ushirika Day celebrations held on Saturday, July 1, 2023. The event which was presided over by President William Ruto nationally at KICC, Nairobi, recognizes cooperative society’s success and performance. The SACCO bagged top awards in member value creation, empowerment and training across the counties of Baringo, Nakuru, Nandi, Uasingishu, Elgeyo-Marakwet, Laikipia and TransNzoia. Boresha SACCO was feted as a top among Tier 1 Societies for empowering economically in over 47 years. In TransNzoia County, the society was recognized for SACCOs Education, Marketing Programs and initiatives that have enabled the SACCO to enrol more Members. Boresha DT SACCO’s Chief Executive Officer Jacob Mengich (left) converses with the Chairman Albert Chebyogon during the official launch of the 18th branch in Kitale in the event held at the ASK Showground.
On Monday, May 6, Cooperatives and Micro Small and Medium Enterprises MSMEs Cabinet Secretary Simon Chelugui dismissed the whole administration of Kenya Union of Savings and Credit Union( KUSCCO) after findings implicated them to mismanagement of the union. “In light of recent developments, the ministry acknowledges the findings of an inspection conducted by the Commissioner for Cooperatives Development in October 2023. This inspection revealed significant discrepancies in the management and operations of a KUSCCO. In response to the findings, immediate administrative measures were taken including the dismissal of implicated top managers and administrators to facilitate comprehensive audit of the Union’s operations and financial records,” Chelugui stated. Chelugui further disclosed that the government hired Grant Thornton a reputable audit firm, which conducted a thorough investigation on KUSCCO. CS Simon Chelugui disbands KUSCCO Board of directors following Corruption Allegations By Sabila Namaemba 38 SACCO Trend Cooperative CS Simon Chelugui dismissed the KUSCCO board, constituting an interim management.
Thornton Findings on KUSCCO operations According to CS Chelugui, the preliminary findings indicated a systematic deficiency in the management of resources, including creative and unreliable financial records. The finds showed; 1. High cash withdrawal out of character with expected operations Ksh 5,466,016,667 between 2013 and April 2024 2. Suspicious cash transfers to company Secretary KUSCCO housing staff Kshs 318, 160,172 3. Loans to senior KUSCCO staff and directors including subsidiaries to; • Group Managing Director - Ksh 50 million • Company Secretary KUSCCO Housing Society KSh 4.5 million • Head KUSCCO Housing Cooperative amounting Ksh 7 million 4. Double purchase of the same land (LR 232691/35) Ksh. 80, 546, 000 5. Suspicious cash transfers of funds to insurance agencies amounting to Kshs 434, 160, 379 6. Irregular account opened for KUSASA and KUSCCO CIF 7. The bank not indemnified on third party cheques 8. Cash transfers from KUSCCO accounts to their staff accounts including group manager Director Ksh 67,035,752,325 and two other members of staff each Ksh 118,046,999.90 and Ksh 15,986,289 respectively 9. KUSCCO operating unregulated FOSA - KUSASA neither a registered FOSA nor microfinance 10. Customers cheques received at KUSASA endorsed and deposited at KUSCCO account for clearing. “It has come to light that despite incurring loses, the union proceeded to declare bonuses, dividends and interest a practice we cannot condone,” Chelugui further stated. He said the deliberate decision was arrived after the board failed in it’s duty to steer the union effectively. “Consequently, in the interest of ensuring accountability and restoring confidence, the ministry has taken the decisive action on this matter,” CS Chelugui stated. Chelugui said the Ministry is committed to ensuring it upholds principles of good corporate governance and integrity within the ministry jurisdiction to ensure responsible and transparent management of SACCOs. SACCO Trend 39 It has come to light that despite incurring loses, the union proceeded to declare bonuses, dividends and interest a practice we cannot condone CS Simon Chelugui disbands KUSCCO Board of directors following Corruption Allegations
Since its inception, Taifa SACCO endeavours to empower its members mainly through education, equipping them with financial management skills towards savings and investment T aifa DT SACCO is set to move its headquarters to Nyeri in April 2024, following the completion of its iconic state of the art head office premises. Speaking during the 24th Annual Delegates Meeting (ADM) held on March 16, 2024, the SACCO board of directors chair James Giting’a made the announcement, saying that the building forms part of the greatest milestones by the society in the year 2023. “One of the greatest milestones achieved by the SACCO in the year 2023 is the completion of the iconic state of the art Taifa SACCO head office premises located at the heart of Nyeri town. The building is ready and we intend to move our Head Office to the new building by end of April 2024,” said Giting’a. Giting’a revealed that the completion of the stateof-the-art building, spanning seven storeys, was achieved using internally generated funds. Features of Taifa SACCO state of the art building The chair noted that the project was completed within the set timeline and upheld international standards of workmanship. By Andrew Walyaula 40 SACCO Trend Taifa SACCO Board of Directors chair James Giting’a addressing delegates during the 24th Annual Delegates Meeting (ADM) held on March 16, 2024 Taifa SACCO CEO Samuel Ngugi addressing delegates during the 24th Annual Delegates Meeting (ADM) held on March 16, 2024 Taifa DT SACCO Completion of iconic head office premises, en route to tier 1 levels among other key miles society achieved in 2023
“The new headquarters, located at the heart of Nyeri town, is the first building in Nyeri County to be constructed using modern technology and is fully compliant with green energy models,” Giting’a stated. He also highlighted the building’s ease of navigation and adequate ventilation as additional features. The relocation to the new office premises is expected to reduce the SACCO’s operational costs associated with leasing office space and enhance brand visibility for sustainable service and member empowerment. SACCO Performance According to the audited report and financial statements for the year ending December 31, 2023, Taifa DT SACCO is on the brink of joining the ranks of first-tier SACCOs in Kenya, after its assets hit KSh 4.8 billion up from KSh 4.6 billion in 2022. “This impressive growth trajectory brings us closer to the anticipated milestone of reaching five billion in total assets, a feat that will elevate our SACCO to first-tier status in Kenya,” Giting’a remarked. Additionally, the SACCO experienced a surge in membership, reaching 180,000 by the end of the year. This increase in membership contributed significantly to the growth of the SACCO’s capital base, with member deposits surpassing KSh 3.5 billion. Giting’a outlined plans to further grow member deposits to over KSh 5 billion by 2025, urging the staff and delegates to make concerted efforts in mobilising more members to patronise the SACCO deposits. “This will not only help us achieve our targets but also enable our members to enjoy greater benefits from their savings, increase borrowing capacity, and enhance earnings from interest on deposit. The net effect would be that our members would derive more financial empowerment from the SACCO in addition to improving our members savings culture,” Giting’a said. Further, the SACCO reported a commendable 10% growth in total revenue to KSh 642 million during the same year under review, compared to KSh 573 million in 2022. Completion of iconic head office premises, en route to tier 1 levels among other key miles society achieved in 2023 SACCO Trend 41 Performance at a glance Key Financial Matrix 2023 (KSh) 2022 (KSh) Total Assets 4.8 billion 4.6 billion Members Deposit 3.5 billion 3.4 billion Revenue 642 million 573 million Source: Taifa SACCO Annual Report and Financial Statements Taifa SACCO operations manager Mr Macharia addressing delegates during the 24th Annual Delegates Meeting (ADM) held on March 16, 2024 Chief guest, County Director of Cooperatives Nyeri Counter Peter Theuri addressing Taifa SACCO delegates during the 24th Annual Delegates Meeting (ADM) held on March 16, 2024 Taifa DT SACCO
Taifa DT SACCO This will not only help us achieve our targets but also enable our members to enjoy greater benefits from their savings, increase borrowing capacity, and enhance earnings from interest on deposit. The net effect would be that our members would derive more financial empowerment from the SACCO in addition to improving our members savings culture Taifa SACCO Board of Directors chair James Giting’a addressing delegates during the 24th Annual Delegates Meeting (ADM) held on March 16, 2024 42 SACCO Trend Completion of iconic head office premises, en route to tier 1 levels among other key miles society achieved in 2023 Member investment return and sustainable service Taifa SACCO projected a growth in revenue of up to KSh 800 million in 2024, in a bid to enhance returns on members investments. During the year under review, the SACCO announced payment of dividends on share capital and interest on member deposits amounting to KSh 181 million, at the rate of 8% per return category. The SACCO disbursed loans amounting to over KSh 2.7 billion, meeting its mandates on member empowerment as stipulated in the strategic plan 2021-2025. Giting’a noted that the plan focuses on raising the SACCO loan portfolio to KSh 4 billion by 2025, targeting and meeting the financial needs and expectations of its growing membership. To ensure sustainable, efficient and convenient member service the SACCO embraces technology through the use of Alternative Banking Channels (ABCs) like mobile banking to bring services closer to its members. Some of these ABCs include mobile banking – the M-Taifa, USSD channel *475#, the SACCO ATM link service and agency banking among others. It also boasts branches across the counties of Nyeri, Nyandarua, Laikipia, Nakuru and is plan to set up others in Kimabu and Murang’a. Since its inception, Taifa SACCO endeavours to empower its members mainly through education, equipping them with financial management skills towards savings and investment. Taifa SACCO delegate reacting to a point in the chairman’s report during the 24th Annual Delegates Meeting (ADM) held on March 16, 2024
SACCO Trend 43 I n Kenya, the dream of homeownership is one that many aspire to achieve. With the ever-increasing property prices and limited access to affordable credit, the path to owning a home can often seem challenging. However, Savings and Credit Cooperative Societies (SACCOs) have emerged as the optimal savings vehicle for individuals aiming to realize their dream of homeownership. In this article, we will explore why SACCOs are considered the best option for saving towards homeownership in Kenya. Convenient Savings and Flexible Contributions SACCOs offer convenient savings mechanisms that are tailored to help individuals accumulate funds for homeownership. Members can contribute towards their savings at regular intervals that suit their financial capabilities. SACCOs provide flexibility in contribution amounts, allowing members to increase their savings as their income grows. This convenience and flexibility make SACCOs an ideal choice for individuals with varying income levels who are saving towards a down payment or mortgage payments. SACCOs and Housing: The optimal savings vehicle for homeownership in Kenya By SACCO Trend Reporter However, Savings and Credit Cooperative Societies (SACCOs) have emerged as the optimal savings vehicle for individuals aiming to realize their dream of homeownership. In this article, we will explore why SACCOs are considered the best option for saving towards homeownership in Kenya Real estate
Competitive Interest Rates and Dividends SACCOs provide members with competitive interest rates on their savings, often outperforming traditional banking institutions. By saving with a SACCO, individuals can grow their funds faster, thanks to the attractive interest rates offered. Furthermore, SACCOs distribute dividends to their members, sharing a portion of their profits. These dividends can be reinvested into savings or used to accelerate homeownership plans, making SACCOs an excellent choice for those seeking financial growth and increased savings potential. Access to Affordable Home Financing SACCOs understand the challenges individuals face in accessing affordable credit for homeownership. payment on their own. Financial Education and Homeownership Guidance SACCOs play an integral role in educating their members about the home buying process and providing guidance on homeownership. They organize workshops, seminars, and training programs focused on financial literacy and real estate investment. By equipping members with the necessary knowledge and skills, SACCOs empower individuals to make informed decisions about purchasing property, understanding mortgage terms, and evaluating investment opportunities. This financial education component sets SACCOs apart and positions them as trusted partners in the homeownership journey. 44 SACCO Trend SACCOs and Housing: The optimal savings vehicle for homeownership in Kenya Many SACCOs have established partnerships with financial institutions, like the Kenya Mortgage Refinancing Company (KMRC), allowing members to access home loans or mortgage financing at favourable terms. SACCOs provide members with preferential interest rates, longer repayment periods, and reduced collateral requirements. These advantages significantly enhance the affordability and accessibility of home financing, making SACCOs the go-to option for aspiring homeowners with limited access to traditional mortgage options. Shared Equity Schemes Some SACCOs offer shared equity schemes, providing members with a unique opportunity to accelerate their homeownership journey. Under these schemes, members contribute a portion of their savings, and the SACCO matches those funds to create a larger pool of capital. This shared equity approach allows members to accumulate a substantial down payment, increasing their chances of securing a mortgage or purchasing a home outright. Shared equity schemes make SACCOs an attractive option for individuals who may struggle to save the entire down Supportive Community and Networking Joining a SACCO creates an instant support system and networking platform for individuals striving for homeownership. Members can connect with like-minded individuals, share experiences, and seek advice from those who have successfully achieved their homeownership goals. The sense of community within SACCOs encourages discipline, inspires perseverance, and fosters a supportive environment that motivates members to stay committed to their dreams. Generally, savings and Credit Cooperative Societies (SACCOs) have become the preferred savings vehicle for individuals seeking to make their dream of homeownership a reality in Kenya. With convenient savings options, competitive interest rates, access to affordable home financing, shared equity schemes, financial education, and a supportive community, SACCOs offer a comprehensive solution for aspiring homeowners. If you are looking to save for your own home, consider joining a SACCO and leverage their unique advantages to accelerate your homeownership journey. With SACCOs, homeownership is not just a dream—it can become a tangible reality.
SACCO Trend 45 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 Achieving the dream:
46 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