Get what’s trending in the cooperative world SACCO TREND MAGAZINE 024 May - June Edition 2023 Ksh 150 Wananchi DT SACCO records KSh 1.42b in total assets, thanks to member value creation and support www.wananchisacco.co.ke [email protected] +254 722 299 265
iii Dear Reader, Welcome once again to the third edition of Sacco Trend Magazine 2023. It is that time of the year when Savings and Credit Co-operative Societies (SACCOs) share their performance and success in the previous fiscal year during the Annual General/Delegate Meeting. Sacco members get the opportunity to make informed decisions based on their savings, deposits and investment during this top organ of management meetings. Many societies will also be celebrating their anniversary throughout the year. At Sacco Trend Editorial, we would like to spice up the mood bringing you latest updates, trends and insights in the co-operative movement and the financial sector this season. SACCOs are considered top among leading financial drivers in the country – and have transformed many lives. Many SACCOs are creating value for members’ funds, offering affordable and competitive credit facilities. This is the season societies are paying dividends on share capital and interest on members’ deposits. We highlight different societies’ performance in the year ending December 31, 2022, and their rate of return on members’ investments. Read about YOUR SACCO: Wananchi DT SACCO, Good Hope SACCO, AAK SACCO, Ports SACCO and Siraji SACCO, among others. The edition also brings to latest trends including Stima SACCO expansion drive and Tower SACCO’s launch KSh 230 million plaza, among other informative news. Get in touch with us via our social media pages, email or phone. Enjoy your reading!. Satrend Ventures LTD, Accra Road White Angle House. Editor’s Note SACCO Trend Message from the SACCO Trend Editorial Team 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 27. Qwetu DT SACCO registers 14.57% growth in assets, attributes growth to member support, sustainability 27. Stima SACCO expands branch network, targets 30,000 new members in 2023 18. How Good Hope SACCO is creating value for members’ funds through technology, reports tremendous growth 2. Wananchi DT SACCO records KSh 1.42b in total assets, thanks to member value creation and support 10. Siraji SACCO continues to record steady growth, hits KSh 584.8m in assets – thanks to corporate governance 6. Ports SACCO: Mombasa Port SACCO rebrands as it aims to meet growing customer needs in Kenya Features Contents Regulars & Extras 21. AAK SACCO records 17% growth in assets as it launches free membership recruitment drive 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 14. Kimisitu DT SACCO leverages technology for member value creation, hits KSh 1b mark in revenue 24.Tower SACCO launches KSh 230 million plaza as asset base increase to KSh 20 billion
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By Marion Achieng Despite 2022 being a challenging year for businesses in Kenya, the electioneering period included, Wananchi Deposit Taking (DT) SACCO Society recorded impressive financial growth in the year ending December 31, 2022, with a net surplus increasing by about KSh 4.4 million and total assets by 35 million. Speaking during the SACCO’s 30th Annual Delegates Meeting (ADM) held on March 24, 2023, the SACCO board of directors’ chairman Geoffrey Wambugu Kagondu reiterated the continued growth in the society's business and mandates. “We are hopeful that our core SACCO business (savings and credit) across all branches will continuously improve even in the future. “This will be made possible through continuously monitoring, reviewing, and implementing the SACCO’s strategic plan, working with like-mind partners in the business, and embracing new developments and changes that positively impact the society’s business,” said Kagondu. Wananchi weathers external challenges Wananchi DT SACCO continued to thrive in 2022 despite challenging economic circumstances. The campaigning period took a toll on Kenya’s economic performance due to the uncertainty associated with the elections period in the country, not forgetting global inflation, unemployment, and drought. The chairman was hopeful that 2023 would be a good year for businesses saying, “We are very hopeful that the economy will progressively recover from the depressed state of affairs such that majority of the business will soon recover and perform well.” 2 SACCO Trend Wananchi DT SACCO records KSh 1.42b in total assets, thanks to member value creation and support Wananchi SACCO Chairman Geoffrey Kagondu
SACCO Trend 3 He added, “Even our members who have been reluctant to borrow due to the high cost of living, lack of income due to poor tea, milk and coffee production, and low business activities will start borrowing again.” SACCO growth Despite the challenges, Wananchi SACCO’s loan book increased by about KSh 66 million to KSh 626.8 million compared to KSh KSh 606.5 million reported in 2021. This translated to an increase in total assets and total income from loans and advances. Loan recovery also increased by over KSh 72 million compared to the previous year. Wananchi DT SACCO's asset base hit KSh 1.42 billion in the year under review, up from KSh 1.38 billion reported in the previous year. This will be made possible through continuously monitoring, reviewing, and implementing the SACCO’s strategic plan, working with likemind partners in the business, and embracing new developments and changes that positively impact the society’s business Wananchi SACCO chairman Geoffrey Kagondu receiving a certificate from Nyeri South Sub-County Co-operative Officer Joseph Wanjii after being re-elected chair, during the 30th Annual Delegates Meeting (ADM) held on March 24, 2023 Wananchi SACCO delegates, staff members following the proceedings of the 30th Annual Delegates Meeting (ADM) held on March 24, 2023 Wananchi DT SACCO records KSh 1.42b in total assets, thanks to member value creation and support
The SACCO revenue grew by KSh 4.4 million up from KSh 225.5 million reported in 2021 to KSh 247.5 million in 2022. Kagondu added, “To improve the overall SACCO performance, we will continue to control all the operational costs such as governance, personnel and marketing expenses, issuance of high-quality loans, and aggressive recovery of all outstanding loans.” Share capita grew from KSh 202.5 million reported in 2021 to stand at KSh 217.1 million in 2022. Nonwithdrawable members’ deposits increased to KSh 328.3 million during the same year under review, up from KSh 311.7 million reported in the previous year. This was attributed to the increase in the SACCO membership from 79,614 members reported in 2021 to 82,431 members in 2022. Member empowerment and sustainability The SACCO paid out dividends on share capital and interest on members’ deposits amounting to KSh 17.1 million and KSh 9.6 million, respectively. “It is important for all of us to continue supporting all the SACCO activities, and programs and embrace all the SACCO products and services so that the SACCO can grow to greater heights,” said Kagondu. The SACCO plans to market its products and services, invest excess funds in other financial institutions, venture into other businesses, and embrace the use of technology and alternative banking channels such as mobile banking and agency banking across all branches. This will ease service delivery to members, and improve efficiency, convenience and customer sustainability. To have additional streams of income, the SACCO is considering having a subsidiary company or an investment arm that will mostly concentrate on insurance, housing activity, land, purchase of shares in other financial institutions, and the stock securities market and government bonds. Since its inception, Wananchi DT SACCO has been investing heavily in member value creation and empowerment. Through continuous member education, the society ensures its members have access to information on the best savings and investment practices. “In 2022, we took our SACCO delegates for an education tour of an Avocado farm in Mweiga and agreed that all our members will be educated on diversification to embrace other crops and hence increase their income,” said the chair. It is important for all of us to continue supporting all the SACCO activities, and programs and embrace all the SACCO products and services so that the SACCO can grow to greater heights Wananchi DT SACCO records KSh 1.42b in total assets, thanks to member value creation and support 4 SACCO Trend
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
6 SACCO Trend Ports SACCO: Mombasa Port SACCO rebrands as it aims to meet growing customer needs in Kenya Mombasa Port SACCO has rebranded to Ports SACCO, as part of the society’s transformational agenda to meet the growing financial needs of its diverse members across Kenya. Port SACCO’s strategic plan focuses on empowering members, driving financial inclusion and expand its national footprint in the country. The SACCO opens its doors to diverse membership as it looks to scale up to Nairobi City and other non-port towns. With its headquarters in Mombasa, Ports SACCO initially drew its membership from employees of the then Kenya Cargo Handling Services Limited. However, in the new plan the society operates a common bond – which allows membership from all sectors of the economy – including salaried and non-salaried individuals, investment groups (Chamas), corporate, sole businesses and from people in the diaspora. SACCO performance In its 2023 strategic plan seeks to grow its membership from 11,741 reported in the financial year endind December 31, 2022 to 16,800 members, mainly in nonPort towns. By SACCO Trend Reporter However, in the new plan the society operates a common bond – which allows membership from all sectors of the economy – including salaried and non-salaried individuals, investment groups (Chamas), corporate, sole businesses and from people in the diaspora Ports SACCO board of directors chair Alfred Konde speaking during the launch of the new name on May 10, 2023.
SACCO Trend 7 empower current and new members to take control of their financial future. In addition, our vision is to reach those unable to access financial services from conventional institutions,” said Ondieki. Ports SACCO is among to top performing societies in the cooperative movement. The financial year 2022 was marred with a myriad of economic challenges from the post COVID-19 pandemic, the global inflationary pressures, drought and the electioneering period fears, but the society remained resilient in carrying out its mandate for member value creation. The SACCO reported a significant growth in total assets amounting to KSh 8.4 billion, as members’ deposits increased to KSh 4.58 billion. The SACCO disbursed loans amounting to KSh 4.9 billion in the year ending December 31, 2022, up from KSh 4.3 billion reported in 2021. This represented a 22. 5% growth. This saw the society pay out dividends on share capital at a rate of 20%, amounting to KSh 75.9 million and interest on members’ deposits at a rate of 12.5%, amounting to KSh 496,001,372 billion, making a gross total of SH 571, 932,908 billion. Member service and sustainability Founded in 1966, Ports SACCO seeks to empower members by offering financial solutions, promoting thrift, and fostering a culture of saving. Ports SACCO Chief Executive Officer Dedan Ondieki said the relaunch was part of SACCO’s commitment to driving financial inclusion across the 47 counties. “Our expansion beyond Mombasa is part of our strategy to be diverse and inclusive as we renew our focus to Ports SACCO: Mombasa Port SACCO rebrands as it aims to meet growing customer needs in Kenya Ports SACCO Chief Executive Officer Dedan Ondieki speaking during the rebranding of the society from Mombasa Port SACCO on May 10, 2023. Chief Guest Cooperatives CS Simon Chelugui speaking during the rebranding of Ports SACCO on May 10, 2023
In 2021, SACCO launched its KSh 45 million digital platform to safeguard its members’ funds considering cyber security developments. During the event, the SACCO unveiled its mortgage product, Jiendeleze Loan,’ tailored to the unique needs of the market and members for low-cost homes. “Our investment in research and product development is a testament to our dedication to providing affordable housing solutions to our members. In addition, our commitment Ports SACCO: Mombasa Port SACCO rebrands as it aims to meet growing customer needs in Kenya to agility also reflects its innovative culture, which is essential for driving growth and staying competitive in a crowded market,” said Ondieki. Ondieki urged the SACCO members to continue being good ambassadors to the society, patronise the SACCO services and improve their returns on investment. He encouraged the youth in the country to embrace the culture of saving, adding that Ports SACCO is the vehicle that will take them to their financial destiny. “The best time to start saving is now. It does not matter how much you have saved and the earlier you start. I would like to advise member to continue saving because this will enable them to invest. As Ports SACCO, we call upon the youth to join and realise their dream,” said Ondieki. The SACCO board of directors’ chairman Alfred Jaka Konde said rebranding is the beginning of a new era as Ports SACCO joins other cooperatives and societies which have already transformed for efficient and effective member service. “There is value edition when a SACCO rebrands including more contributions which ensure it becomes financially solid. The process entails developments, implementations and evaluations of the SACCO. SACCO expansion drive “Ports SACCO now is looking at expanding to other regions where at this point the port SACCO will be soon opening branches in different regions, this will enable us to be all inclusive nationally and international,” said Jaka. 8 SACCO Trend Our expansion beyond Mombasa is part of our strategy to be diverse and inclusive as we renew our focus to empower current and new members to take control of their financial future. In addition, our vision is to reach those unable to access financial services from conventional institutions Co-operatives CS Simon Chelugui (centre) arrives at Ports SACCO rebranding event, escorted by the society CEO Dedan Ondieki (left) and Chairman Alfred Konde (right) among other officials
The director of light academy madam Gaciku Nzinga, a member of the SACCO attending the event, said the since joined in 2017, the SACCO has enabled her grow her school. “I want challenge every member of the society to patronise all the products and service. Bring in your relatives and friends to enjoy the goodies Ports SACCO board and management team is offering you,” said Nzinga. Gracing the event, Cooperatives Cabinet Secretary Simon Chelugui noted that Ports SACCO is among the top societies placing Kenya atop global ranks in the cooperative movement. Reports shows that the country is ranked number seven (7) worldwide and the best in Africa regarding SACCO development. The cooperative sub-sector in Kenya controls over KSh 1.5 trillion in assets and KSh 1 trillion in deposits, with a loan book of KSh 980 million. “I am glad to note that Ports SACCO has achieved tremendous growth despite the various economic challenges experienced in the country. “It is also gratifying to note that this SACCO performed very well at the National level by being the Best in Capitalization country wide and at the County level, scooping the award for ‘Best Co-operative Movement stand’ at the ASK Mombasa international show for the year 2022,” said Chelugui. Chelugui assured Ports SACCO and other societies continued support from the government, for being an integral part of the country’s economy. Ports SACCO is a Tier 1 licensed deposit-taking SACCO regulated by the SACCO Society Regulatory Authority (SASRA). Ports SACCO: Mombasa Port SACCO rebrands as it aims to meet growing customer needs in Kenya SACCO Trend 9 Ports SACCO delegates following the proceedings of the rebranding event on May 10, 2023. Director of light academy madam Gaciku Nzinga, a member of Ports SACCO, speaks during the rebranding of the society.
Siraji SACCO has been able to achieve its goals in time and is still setting profound work plans and undertaking the required tasks needed in achieving the set goals and objectives. Through corporate governance structures, the SACCO conducts its daily operation for effective and efficient service delivery. Looking at the SACCO’s annual financial analysis, it is clear the society has managed to record outstanding performance in key indicators, including share capital, member deposits, revenue and membership among others. According to the financial report for the year ending December 31, 2022, Siraji SACCO met all the statutory ratios and regulatory requirements. During the SACCO’s Annual Delegate Meeting (ADM) held on March 9, 2023, the board of director’s chairman Franklin Mwirigi applauded the SACCO members, delegates and management for their effort in helping the society realise sound growth. Siraji SACCO continues to record steady growth, hits KSh 584.8m in assets – thanks to corporate governance “I thank our members, delegates, the management team and the board for standing firm and dedicating their time for Siraji SACCO in the year 2022,” said Mwirigi. The year 2022 was marred with economic challenges ranging from global inflationary pressures to the adverse effects of drought, but Siraji SACCO remained resilient, supporting its members as it carried out its mandate. SACCO performance The SACCO continued to report a constant increase in membership. Data from 2019 to 2022 shows that the society members grew by 35.4% from 9,971 to 14,618 members. Siraji SACCO draws its members from government employees, private institutions, the business community, farmers and Groups. The society disbursed loans amounting to KSh 346 million, up from KSh 306.8 million reported in 2019, representing a 3.58% increase. In 2021, the society loans and advances were reported at KSh 334 million. Siraji SACCO chairman Franklin Mwirgi addressing delegates during the Annual Delegate Meeting (ADM) held on March 9, 2023 (1) By Winnie Mmbone 10 SACCO Trend
Siraji SACCO continues to record steady growth, hits KSh 584.8m in assets – thanks to corporate governance SACCO Trend 11 Share capital grew from KSh 47.8 million in 2019 to KSh 55.4 million in 2022, showing an increase of 6.71%. This saw the SACCO asset base increase by 13.99% from KSh 451.8 million in 2019 to KSh 584.8 million in 2022. The revenue generated from the year 2019 to the year 2022 increased by 21.17% from KSh 73.9 million to KSh 95.25 million during the same year under review. The SACCO paid out dividends on share capital and interest on members’ deposits amounting to KSh 21.7 million in 2022, compared to KSh 18.9 million paid out in 2021. To achieve this, Siraji SACCO endeavours to bring services closer to members so that they can access them at their convenience. In September 2022, the society launched Siraji SACCO Plaza, the first ever in Timau, Meru county – now the SACCO headquarters. The society has branches in Nanyuki, Naivasha, Isinya (Kajiado) and Kibirichia (Meru) and intends to expand owing to the growing demand from members. “This is the first SACCO in Timau to have such a building – five storeys… the ground and first floor will house the SACCO offices. The second and other floors will be for renting to other businesses. I challenge you as members of the SACCO to take advantage and be housed by this building in doing your business,” said the SACCO chairman during the launch of the plaza. Siraji SACCO partnered with MESPT and accomplished receiving an affordable loan facility to lend to agribusiness members to support green energies and farmers. The society also partnered with The African Confederation of Cooperative Savings and Credit Association (ACCOSCA), to offer capacity building to the SACCO members, staff and the Board members Siraji SACCO CEO Felix Ochieng addressing delegates during the Annual Delegate Meeting (ADM) held on March 9, 2023 Chief guest Fred Ruoro – Managing Director CIC General Insurance Ltd, addressing delegates during the Annual Delegates Meeting (ADM)
12 SACCO Trend Siraji SACCO continues to record steady growth, hits KSh 584.8m in assets – thanks to corporate governance Strategic plan and prospects The society also operates under a strategic plan – 2021 – 2025, which focuses on key performance indicators including assets, members’ deposits, share capital, membership and revenue among others. “With this strategic plan we can track our operational activities and ensure we meet the SACCO mandate, creating value for members’ savings and empowering them,” said Mwirigi. Siraji SACCO partnered with MESPT and accomplished receiving an affordable loan facility to lend to agribusiness members to support green energies and farmers. The society also partnered with The African Confederation of Co-operative Savings and Credit Association (ACCOSCA), to offer capacity building to the SACCO members, staff and the Board members. The SACCO with the support of WOCCU under the TIFI programme has been able to develop an SME appraisal tool which helped to lend to SMEs and reduce its portfolio at risk. KUSCCO in collaboration with WOCCU and USAID initiated a Technology and Innovation for Financial Inclusion (TIFI) project to enhance SME funding in Kenya. It aims to enhance SACCO lending to SMEs through digital solutions and an SME Finance tool kit. The first pilot study of the project was initiated in 2021 and Siraji SACCO became one of the societies piloting TIFI. The SACCO has been able to increase its loan portfolio via lending to SMEs. The SACCO intends to diversify its business model from salaried members to groups, farmers and business individuals to bring in more members. The SACCO consists of a fully-fledged department on Microfinance recruiting small businesses and groups. They consist of 360 groups managed by 12 micro-finance officers and aim to have at least 2,000 groups by the end of 2024 which will improve their profits. Presiding over the ADM, chief guest Fred Ruoro – Managing Director of CIC General Insurance Ltd, applauded the society for exemplary performance. “Siraji SACCO is a place where we have to see the light,” said Ruoro as he acknowledged the society’s partnership with CIC to offer its members the best covers. He urged the SACCO members to continue patronising the society's products to realise their financial dreams. Siraji SACCO delegates, board members, managemnt staff and chief guests pose for a photo after the Annual Delegate Meeting (ADM) held on March 9, 2023
14 SACCO Trend Kimisitu DT SACCO continues to shine among top societies in the co-operative movement. The society reported outstanding performance in key indicators during the year 2022, despite the tough economic environment marred by global inflationary pressures, drought and the post COVID-19 pandemic impacts. The SACCO’s gross income grew by KSh 173.9 million or 17.6% for the year ending December 31, 2022, clocking the KSh 1 million mark. That is KSh 1.162 billion compared to KSh 988.1 million reported during the same period in 2021. Speaking during the society’s 38th Annual General Meeting (AGM) held at KICC, Nairobi on March 11, 2023, Kimisitu SACCO board of directors’ chair Jotham Opiyo attributed the growth efficient and convenient service delivery, achieved through the use technology. “The SACCO has invested in ICT and digital delivery channels to ease access to financial services and products to members at their convenience. This growth is also driven largely by income from loans, which grew by 88%. The SACCO reviewed its loan product during the year under review, meeting the growing demand from members,” said Opiyo. Opiyo noted that the society’s 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 loan portfolio. The growth in loan book 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. SACCO membership Since its inception in 1985, Kimisitu SACCO endeavours to create value for members’ savings and investments, through affordable and tailored credit facilities. The SACCO membership grew by 15.5% to 10,492 members By Wycliffe Musalia Kimisitu DT SACCO leverages technology for member value creation, hits KSh 1b mark in revenue Kimisitu SACCO board of directors chair Jotham Opiyo addressing members during the 38th Annual General Meeting (AGM) held at KICC, Nairobi on March 11, 2023.
SACCO Trend 15 Kimisitu DT SACCO leverages technology for member value creation, hits KSh 1b mark in revenue Co-operative CS Simon Chelugui addressing Kimisitu SACCO members during the 38th Annual General Meeting (AGM) held at KICC, Nairobi on March 11, 2023. CS Simon Chelugui, Commissiner for Co-peratives David Obonyo, Kimisitu SACCO chair Jotham Opiyo pose for a photo with SACCO and coperative officials after the 38th Annual General Meeting (AGM) held on March 11, 2023 in year 2022 up from 9,058 members in recorded in 2021. Members’ deposits also increased by KSh 658 million to KSh 7 billion in 2022, compared to KSh 6.34 billion in 2021, showing a 10.4% growth. Share capital grew by 17.4% to close at Kshs.570 million during the same year under review, up from KSh 485 million in year 2021. “We have managed to maintain returns of 15% on share capital over the last 4 years which is competitive rate looking at the current market. We urge members to invest more than the bare minimum of KSh 30,000 to increase their earnings,” said the chair. SACCOs continue to be the best vehicle to intermediate between savings and investments in addition to encouraging their members to embrace savings culture for socio-economic development
He urged members to plough back and save at least KSh 100 for every KSh 1,000 earned from interest on deposits, as part of the SACCO strategy to cultivate a savings culture. Strategic plan Kimisitu DT SACCO rides on a well-designed strategic plan that ensures smooth running to meet its mandate. The current strategy 2021- 2023, which is coming to its term by the end of year 2023, focus on membership growth, effective customer service, corporate governance and sustainability among other drivers of growth. Under the strategy, the SACCO set up two satellite offices at the Coast and Western region, with an aim of conveniently servicing members and onboarding prospective members. In terms of corporate governance and leadership, Opiyo acknowledged the steps taken by the society, onboarding qualified independent directors to steer Kimisitu Foundation into the future. “The main focus is on building the SACCO brand and supporting climate change, Agribusiness, financial literacy, green financing, and other corporate responsibility initiatives,” he added. This has seen the society achieve various milestones as highlighted below; Gracing the AGM, Co-operatives and MSME Development Cabinet Secretary (CS) Simon Chelugui applauded Kimisitu DT SACCO for its exemplary performance. Chelugui noted that SACCOs like Kimisitu play a vital role in the realisation of Vision 2030 and the government Bottom-Up Economic Transformation Agenda by mobilising savings and credit uptake for investments. “SACCOs continue to be the best vehicle to intermediate between savings and investments in addition to encouraging their members to embrace savings culture for socio-economic development. “The government is committed to create a conducive environment for the growth and development of the co-operative sector through appropriate policy and legal framework,” said Chelugui. The CS said he will work with society’s like Kimisitu DT SACCO to promote good corporate governance, co-operative financing and marketing. Kimisitu DT SACCO leverages technology for member value creation, hits KSh 1b mark in revenue Kimisitu SACCO member reacting on a point during the 38th Annual General Meeting (AGM) held at KICC, Nairobi on March 11, 2023. Kimisitu DT SACCO 2022 milestones • The SACCO hit a billion mark on its gross revenue actualizing revenues of KSh 1.16 billion. • Full implementation and realization of customer relationship management system. • The highest growth in the last five years in all the financial parameters including revenue, loan book and disbursements, membership, members’ deposits and share capital. • Engagements, interactions, and education of members across all the regions. • Setting up satellite offices in Coastal and Western regions. • Setting up the Kimisitu foundation and its governance structure. 16 SACCO Trend
Good Hope SACCO CEO Elvis Kipai Good Hope SACCO board led by chair Isaac Kilesi (second left) and CEO Elvis Kipai (left) following the proceedings of the Annual General Meeting (AGM) 18 SACCO Trend How Good Hope SACCO is creating value for members’ funds through technology, reports tremendous growth By Andrew Walyaula S avings and Credit Co-operatives (SACCOs) pplay a critical financial role to both formal and informal workers. Since their establishment, people have opted to save and acquire loans from them, bringing stiff competition to giant financial institutions like banks in the market. While celebrating 46 years of service, Good Hope SACCO bragged increased use of mobile banking by customers in accessing their services. Good Hope SACCO also registered an increase in revenue reserve at more than KSh 36.8 million in 2022 compared to 2019 where they obtained KSh 2.7 million
SACCO Trend 19 To enhance service delivery, the cooperative societies including Good Hope SACCO Limited have embraced mobile banking technology. These enhance efficiency and convenience in their day-to-day operations, meeting their mandate. While celebrating 46 years of service, Good Hope SACCO bragged increased use of mobile banking by customers in accessing their services. The SACCO board of directors’ chairman Isaac Kilesi observed that the society invested heavily in mobile banking as an alternative banking service, especially during the COVID-19 pandemic period. “Mobile banking services have been embraced by many members as opposed to other years where the SACCO members were shying from the use of the said service, due to cybercrime fears,” Kilesi said. Indeed, impressing technology took a while, mostly “old school fellows” who have attained majority and own enterprises despite being civil servants feared to be conned. However, the SACCO subsector saw many people opting for digital platforms after finding out various benefits. Kilesi praised the integrity of the SACCO ABC system, saying it has been vital for the society’s growth and transformation agenda, attributing its success to the good leadership of the society. “In the midst of cybercrime activities, God has been gracious to us that no money has ever been lost. This has also been attributed to the integrity of our staff as many of the cyber-crimes are usually instituted by insider’s activities,” he said. SACCO performance Good Hope SACCO reported tremendous growth in key performance indicators like revenue, assets, deposits and savings, among others. The society reported a growth of KSh 4.7 million in profit to KSh 25.3 million for the financial year ending December 31, 2022, compared to the previous year when it recorded KSh 20.6 million profit. The SACCO bookshop sales increased from KSh 2.3 million reported in 2021 to KSh 4.6 million, during the same year under review. “The society has also recruited new members, especially from the business community. Moreover, the new members have contributed deposits to the society as well as taking loans,” Kilesi added. Good Hope SACCO also registered an increase in revenue reserve at more than KSh 36.8 million in 2022 compared to 2019 where they obtained KSh 2.7 million. “This statutory reserve, which is a compulsory reserve made out of profit every year to ensure the increase of capital annually, stood at KSh 17.3 million in 2022, compared to KSh 7.28 million reserved in 2019,” the chair’s report continued in part. The society boss projected reserves to tremendously increase attributing it to the SACCO board of directors and management team's efforts and hard work. How Good Hope SACCO is creating value for members’ funds through technology, reports tremendous growth The treasurer, Madam Rodah Ngotiek addressing the members at the 45th AGM
Institutional capital increased from KSh 12.3 million in 2021 to KSh 22.9 million reported in the year 2022. “This shows that the future of the SACCO is very bright if only members can avoid ultimatums that can be detrimental to the society’s growth trajectory and transformational agenda,” said the chair. Good Hope SACCO posted increased loan interest income of KSh 23 million during the same period under review. Good Hope SACCO clears external debts The society paid out deposit refunds to retired members amounting to Ksh 19.2 million during the same year under review. The society will be debt free by the end of May 2023. In terms of servicing external debts, Good Hope SACCO has managed to clear a loan of KSh 279 million as of May 2023. The SACCO Chief Executive Officer Elvis Kipai confirmed that this has handed the society back to its members. “Starting now, Good Hope SACCO will be able to meet its obligations including issuing affordable loans and dividends without further borrowing, making the society debt free,” said Kipai. His sentiments were echoed by the board of directors chairman, who urged the SACCO members to continue patronizing the society’s products. Future prospects The SACCO intends to buy new fleets for its members and create value for their funds, empowering them through income from the transport service. Kilesi noted that through mobile banking services, all matatus under this programme will be collecting their fares using pay bills. “This will help our members to diversify their income rather than relying on one source of revenue, besides earning dividends daily,” said Kilesi. The society has also invested in the real estate sector, empowering members through housing plans. During the year under review, income from the sector grew to KSh 4.6 million, compared to KSh 4.5 million. Since its inception, Good Hope SACCO endeavours to empower its members through tailored and competitive products and services. How Good Hope SACCO is creating value for members’ funds through technology, reports tremendous growth Members following the proceedings during the Annual General Meeting (AGM) 2023 20 SACCO Trend Good Hope SACCO reported tremendous growth in key performance indicators like revenue, assets, deposits and savings, among others
AAK SACCO records 17% growth in assets as it launches free membership recruitment drive SACCO Trend 21 Architectural Association of Kenya SACCO ltd, the premier saving and credit institution for the members of built environment professionals in Kenya, has waived membership registration to allow new members to join the society for free The decision to waive membership registration fees is a strategic move by AAK SACCO to attract new members and grow its membership base. By removing the previous financial barrier to entry, the SACCO hopes to attract more members to join and take advantage of its savings and credit facilities. Speaking during the SACCO 12th Annual General Meeting (AGM) held on March 24, 2023, at Blue Violet Plaza, the board of directors’ chair David Songoro revealed that the promotional offer was launched in November 2022, during the Mbuzi event. "We launched the membership drive, waiving all joining fees for new members. We also By Caroline Machira AAK SACCO records 17% growth in assets as it launches free membership recruitment drive AAK SACCO officials from Left to right Joseph Kedogo (Honorary Secretary), David Songoro (Chair), Olivia Mwembe (Treasurer) and Fredrick Ndichu (Vice Chair) The decision to waive membership registration fees is a strategic move by AAK SACCO to attract new members and grow its membership base. By removing the previous financial barrier to entry, the SACCO hopes to attract more members to join and take advantage of its savings and credit facilities
22 SACCO Trend conducted a savings drive where the highest savers of the day received SACCO branded items as a reward," said Songoro. Songoro noted the promotional offer will be valid until April 2023 and aims at meeting various members’ financial demands, which are all the rage in the sector. SACCO performance Since its inception in 2009, AAK SACCO endeavours to empower its members through value creation, a fit that has seen it thrive in the co-operative movement. Despite the tough economic challenges experienced in the financial year ending December 31, 2022, including the global inflationary pressures, adverse effects of drought, the uncertainties ahead of the August General Election and the post COVID-9 pandemic challenges, the SACCO reported significant financial performance. AAK SACCO asset base grew by 17% from KSh 5.5 million reported in 2021 to KSh 18.7 million in 2022. Loan disbursements to members witnessed an increase of 20%, from KSh 5.5 million in 2021 to KSh 6.6 million in 2022. The SACCO gross turnover increased by 44% from KSh 1.3 AAK SACCO draws its members from the Architects (Arch), Quantity Surveyors (QS), Engineers (Eng), Town Planners (Plan), Environmental Design Consultants (EDC), Landscape Architects (LArch), Construction Project Managers (CPM), and Interior Designers (ID). Real Estate practitioners and contractors amongst other built environment professionals also comprise our clientele Seated from Left to Right Joseph Kedogo (Honorary Secretary), David Songoro (Chair), Fredrick Ndichu (Vice Chair) and Olivia Mwembe (Treasurer)_ Standing Peter Kivindyo (Dagoretti Sub County Cooperatives Officer) AAK SACCO records 17% growth in assets as it launches free membership recruitment drive
SACCO Trend 23 AAK SACCO records 17% growth in assets as it launches free membership recruitment drive million in 2021 to KSh 1.9 million in 2022. The savings deposit from members grew by 15% from Ksh 14.2 million in 2021 to Ksh 16.3 million during the same year under review. The growth in the society’s key performance indicators, including returns on loans and investment, the SACCO paid out dividends on share capital and interest on members’ deposits at the rates of 10% and 3.8%, respectively. The SACCO's recruitment drive saw its membership grow by 38% up from 133 members in 2021 to 183 members in 2022. SACCO membership AAK SACCO draws its members from the Architects (Arch), Quantity Surveyors (QS), Engineers (Eng), Town Planners (Plan), Environmental Design Consultants (EDC), Landscape Architects (LArch), Construction Project Managers (CPM), and Interior Designers (ID). Real Estate practitioners and contractors amongst other built environment professionals also comprise our clientele. The SACCO membership is also open to immediate family members of the afforementioned professionals and staff of firm members of AAK and affiliated associations. The SACCO undertakes Back Office Savings Activity (BOSA) activities for its members. 2022 milestones 1. The SACCO website to the organization, easing the process of member recruitment. He urged the members to invite more potential members to visit the website and join the SACCO using the link. “The SACCO is committed to grow its membership and providing its members with excellent services and benefits. Therefore, it is essential to take advantage of the link’s convenience and encourage more people to join,” said Ndichu, The SACCO recently updated its website and making it convenient for new member onboarding. The SACCO’s vice chairman Fredrick Ndichu, explained how the new link has brought significant advantages 2. Social media The SACCO maintains strong presence on various social media platform such as Facebook, YouTube, LinkedIn, Twitter and Instagram. This allows members to stay informed about the latest news, events and promotions, ensuring that they do not miss out on any essential update. This also provides members with a convenient channel to communicate with the management and the SACCO staffs. Future out look The SACCO is seeking to collaborate with chosen Housing SACCO to offer members access to both the lands and houses. This partnership will give the members an opportunity to invest in affordable housing and secure land ownership. It will undoubtedly benefit memebrs by providing them with means to realize their dreams of owning a home, creating a stable living environment and building equity for themselves and their families.
Tower SACCO chair Peter Ngugi speaking during the launch of Tower SACCO Plaza on April 26, 2023. T ower Deposit Taking (DT) SACCO has launched an eight-floor plaza in Nyandarua that will serve as its head office and business suit investment. The Tower SACCO Plaza, which cost 320 million, was officially opened by Prime Cabinet Secretary Musalia Mudavadi on Wednesday, April 26, 2023. Representing chief guest President William Ruto, Mudavadi commended the SACCO for strides made since its inception in 1976, anchored on empowering members through value creation. “As the government, we commend the strides that have been made by the over 200,000 members of Tower SACCO across their 26 branches countrywide in the transformation of the lives of many Kenyans and contributing to the growth of the nation’s economy,” said Mudavadi. Speaking during the event, Tower SACCO board of directors’ chairman Peter Ngugi said the monumental building is iconic and signifies the continuous success of the SACCO. 24 SACCO Trend Tower SACCO launches KSh 320 million plaza as asset base increase to KSh 20 billion By Andrew Walyaula Prime CS Musalia Mudavadi cutting ribbon during the openning of Tower SACCO plaza.
Co-oporative CS Simon Chelugui speaking during the launch of Tower SACCO plaza on April 26, 2023. SACCO Trend 25 Tower SACCO growth From a membership of 125 members and an asset base of KSh 90,000, Tower has scaled heights to become one of the largest cooperative societies in Kenya with over 200,000 members and assets of over KSh 20 billion. “We are proud that this building will remain an icon that signifies what the corporative movement can do to empower and uplift many lives,” Ngugi said adding that it also serves as a sense of hope and a bright future in SACCO savings. He mentioned that the construction process commenced on March 19, 2019, and ended in October 2022. The building was expected to be handed over a year earlier but the construction process was slowed down because of the COVID-19 pandemic effects. Ngungi noted that Tower SACCO’s asset base hit KSh 20 billion, attributing the growth milestone and achievement to the society membership loyalty and support. “Majority of our people are from business, Juakali sector. SMEs and farmers work tirelessly to ensure they earn a living,” Ngugi said. The chair added that the SACCO estimates a 33% jump in its growth and transformational agenda by 2030. This
means that the lending facility is aiming to grow the asset base to about KSh 30 billion in seven years. To achieve this, the chairman of the board asked the government to consider SACCOs in the disbursement of funds such as the Hustler Fund, and women and youth funds. “The SACCO has implemented sound structures and embraced technology in delivering service. SACCOs have greatly contributed to the growth of the country’s economy,” Ngugi said. Cooperatives and Micro, Small, and Medium Enterprises (MSMEs) Cabinet Secretary Simon Chelugui who graced the event assured Ngugi that they will be among the top priority institutions to disburse the hustler fund in the next levels. Hustler Fund and SACCOs Chelegui revealed that the 20 leading SACCOs will be granted the opportunity to deliver the Hustler Fund among other kitties. Tower SACCO was ranked position eight nationally out of 5,000 in SASRA Annual Report 2021. “As requested by Tower SACCO, Hustler fund will be electioneering with leading regulated SACCOs in delivering the kitty.” “There are other products that we will be rolling out including education programmes and medical cover so that the hustler can add on the savings and access hospitals without hindrance,” Chelegui said. He insisted on value addition as he praised Nyandrua County residents who are among the leading in repaying the hustler fund loan. Ngugi said that SACCOs illustrate the bottom-up economic model as many of the members have acquired wealth through their savings. “Most of the members joined the SACCO while at the bottom of the pyramid and end up being great entrepreneurs,” Ngugi said. Mudavadi who read President William’s Speech said SACCOs mobilize one trillion, which is 30% of the government’s savings. “This is why SACCOs will play a key role in our financial inclusion agenda by being among key intermediaries on disbursement of the second and third process of hustler fund,” he said. The president expects SACCOs to fund improved liquidity, increase diversity membership base, and save culture and sustainability through the digitization of products. Recognizing cooperatives as economic transformation pillars, the president promised to implement Section 4 (2020) of the National Cooperative Policy. Further, he will introduce the cooperative bill in the parliament and amend the SACCOs Society Act to establish central liquidity and facilitate a service-shared platform. 26 SACCO Trend Tower SACCO launches KSh 320 million plaza as asset base increase to KSh 20 billion Prime Cabinet Secretary Musalia Mudavadi speaking during the launch of Tower SACCO Plaza on Wednesday, April 26, 2023. Prime CS Musalia Mudavadi during the official openning or Tower SACCO Plaza.
SACCO Trend 27 Qwetu SACCO, chairman, Alfred Mlolwa Addressing the delegates during the Annual Delegates Meeting (ADM) Qwetu DT SACCO registers 14.57% growth in assets, attributes growth to member support, sustainability By SACCO Trend Reporter T he year 2022 was marred with tough economic challenges, including the rising global inflation, adverse effects of the drought and the August 2022 General Elections that posed uncertainities among businesses. But co-operative societies like Qwetu DT SACCO remained resilient, carrying on with its mandate of member value creation and empowerment. The SACCO continued to post impressive growth in key performance indicators (KPIs), including the asset base, membership, share capital and non-withdrawable deposits among others. According to the financial statement for the year ending December 31, 2022, Quetu DT SACCO reported growth in assets base to KSh 3.2 billion, up from KSh 2.8 billion reported during a similar period in 2021. This showed a KSh 407.7 million or 14.57% growth. The society attributed achievement to delegate’s efforts in marketing the institution and continued member education on effective savings and investment opportunities. SACCO performance Addressing delegates during the Qwetu SACCO Annual Delegates Meeting (ADM) in Voi, Taita Taveta County, board of directors’ chairman Alfred Mlolwa said the SACCO will pay out dividends of 13% on share capital and 9.8% interest on members’ long-term deposits. Mlolwa underscored the need for members to capitalize their dividends and increase savings in order to secure higher loans. “It is worth noting that there is still a chance of re-investing part or the whole of your interests and dividends. We urge our members to embrace capitalizing on the same,” said Mlolwa. The Chairman said the SACCO has been able to maintain and surpass the minimum capital adequacy ratios pointing out that the society is headed to a major success. “The total expense to total revenue increased by 3.56%. We have to increase our efforts in order to improve our income collection and reduce expenditure where necessary,” he noted. It is worth noting that there is still a chance of re-investing part or the whole of your interests and dividends. We urge our members to embrace capitalizing on the same
28 SACCO Trend The society’s membership grew to 56,159 members in 2022 up from 52,772 members in the previous year, representing an increase of 3,387 members or 6.4% growth in membership. Member’s deposits grew to KSh 2.1 billion during the same year under review, compared to 1.9 billion reported in 202. This showed a 10.7% growth. The society’s loans portfolio grew by 19.53% to KSh 2.4 billion as share capital grew by 22.72%. “All the growth areas have shown a good and satisfactory trend that if maintained in the future will lead to great stability,” said the chairman, urging delegates to continue Qwetu SACCO delegates following proceeding of the Annual Delegates Meeting (ADM) Qwetu SACCO CEO Charles Kaba and Chairman ALfred Mlolwa pose for a photo The total expense to total revenue increased by 3.56%. We have to increase our efforts in order to improve our income collection and reduce expenditure where necessary Qwetu DT SACCO registers 14.57% growth in assets, attributes growth to member support, sustainability
SACCO Trend 29 Qwetu DT SACCO registers 14.57% growth in assets, attributes growth to member support, sustainability marketing the SACCO savings products and loans which are at an affordable and competitive rate. Customer sustainability On the SACCO development agenda, Mlolwa revealed that the SACCO has already moved its head office operations to the new Qwetu SACCO plaza in Voi that is due for official opening later this year. Qwetu SACCO CEO Charles Kaba pointed out that the SACCO intent to mobilise more members’ investment on long term deposits which is the cheapest form of capital. Kaba further advised members to ensure that they increase their share capital to the minimum of KSh 15,000 and more in order to enjoy the dividends and allow them to participate in the SACCO activities fully. He said the opening of the new Qwetu SACCO plaza has greatly improved customer service and image. “The new plaza which hosts our headquarters is now operational. We can now be matched with other institutions in the financial business,” said Kaba. The CEO said the current growth was an impressive development that clearly indicated that the SACCO was heading to the right direction. He said Qwetu had diversified its products in order to cater for savers with different investment plans. The SACCO offers a variety of loan products and savings that are well engineered to suit the various needs and expectation of members. Kaba noted that Qwetu SACCO continues to leverage Technology in its service delivery for convenience and efficiency. Since its inception in 1976, Qwetu SACCO has been recording sturdy growth in membership savings and asset. The SACCO draws its membership from all sectors of the economy, including government and private employees, business community, individuals, chamas and small businesses. Since its inception in 1976, Qwetu SACCO has been recording sturdy growth in membership savings and asset. The SACCO draws its membership from all sectors of the economy, including government and private employees, business community, individuals, chamas and small businesses.
30 SACCO Trend S ustainable and efficient member service forms part of the success of any business. Savings and Credit Co-operative Societies (SACCOs) have been embracing this model for their success – especially during the recent economic hardships coupled with post COVID-19 pandemic. One such transformation levelled by societies is the expansion of the branch networks to ensure members get access to services at their doorsteps. Stima DT SACCO, among the largest in Kenya’s cooperative movement, has been at the forefront of this transformation agenda in the fiscal year 2023. The society opened three new branches, expanding its branch network to 12. The new branches are located in Kisii, Meru, and Electricity House in Nairobi, and aim to bring services closer to the people. Stima SACCO membership Stima DT SACCO noted that the move targets to increase its membership by at least 30,000 new members. “With these new additions, our branch network now stands at 12, providing convenient access to services by our members,” said Stima SACCO. According to the financial statements for the year 2022, the SACCO recorded membership of over 177,000 members The SACCO CEO Gamaliel Hassan, while addressing delegates during the 49th Annual Delegates Meeting By SACCO Trend Reporter Stima SACCO CEO Gamaliel Hassan, National Vice Chair, Rosemary Oduor, National Treasurer John Mudany, and Secretary Osman Khatolwa share a smile over the audited financial report for 2022 Stima SACCO expands branch network, targets 30,000 new members in 2023
SACCO Trend 31 (ADM) held on Friday, March 3, 2023, said the growth was achieved based on effective and efficient service delivery. Hassan highlighted the SACCO’s plans to expand its branch network, to ensure Kenyans get access to desired, affordable and convenient financial services. “We have embarked on an expansion drive to bring quality products and services to all Kenyans,” said Hassan during the ADM. The SACCO currently has branches in Mombasa, Kisumu, Nakuru, Olkaria, Eldoret, Embu, Parklands in Nairobi, Kawi in Nairobi, and CBD, which has been renamed Kimathi Street. With wide geographical coverage, Stima SACCO aims to ensure that its members have access to their services no matter where they are located. The SACCO draws its membership from all sectors of the economy, which include individuals, groups, or corporates, government workers, private employees, and small and medium enterprises among others. Stima SACCO expands branch network, targets 30,000 new members in 2023 SACCO performance Stima DT SACCO remained resilient against the backdrop of slowed economic growth resulting from prolonged drought, global inflationary pressures, as well as uncertainties posed by the August 2022 Election, thanks to improved customer service. The society reported a 15.69% growth in asset base to KSh 53.8 billion in the year ending December 31, 2022, up from KSh46.5 billion reported during a similar period in 2021. Board of Directors National Vice Chair, Rosemary Oduor said the growth was realised in key performance indicators including members’ savings, deposits, shares and loans. “The loans give us returns in terms of interest and loan repayment. These are the areas which drove this exemplary growth,” said Oduor during the stakeholder meeting in March 2023. Stima DT SACCO loans to members grew to KSh 41.3 billion, up from KSh 36.9 billion in 2021, representing a The SACCO draws its membership from all sectors of the economy, which include individuals, groups, or corporates, government workers, private employees, and small and medium enterprises among others
The high dividend rate on Share capital, the Year 2022 paid @15% High-interest rates in Alpha deposit savings, the Year 2022 paid @11% One-day loan processing period Access to Salary based loans up to KSh 3 million Access to quick and convenient M-Pawa mobilebased loan up to KSh 120,000 Access to low-premium insurance products such as medical cover, Auto policy Access to Shariah-compliant banking services Access to 24-hour Alternative channels: M-Pawa mobile banking and ATM Membership to the Best performing SACCO Caring and Listening investment partner Access to 24-hour Stima SACCO Mlangoni Agency Banking services The low interest rate on loans as low as 1% per month on reducing balance Access to Deposit based loans up to 5 times a member's Alpha deposit savings 12% growth. This saw the society revenue increase to KSh 7.4 billion, during the same year under review, from KSh 6.8 billion in the previous year. Returns to members The SACCO members’ deposits grew from KSh 34.2 billion to KSh 39.43 billion. This showed a 15% growth in deposits, signalling the growing society membership. The society paid dividends on share capital and interest on members’ deposits at the rate of 15% (or KSh 395.7 million) and 11%, respectively. Stima DT SACCO, since its establishment in 1974, strives to uplift the members’ social-economic well-being. The society responded to the banking needs arising from members by introducing the Front Office Service Activity (FOSA) in 2003 and has stood firm in conveniently offering banking services to its members. 32 SACCO Trend Why you should join Stima DT SACCO? Stima SACCO expands branch network, targets 30,000 new members in 2023 We have embarked on an expansion drive to bring quality products and services to all Kenyans
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Nyati SACCO hits KSh 4.5b in assets, narrowing gap to tier 1 level By Clarence Imbayi Nyati SACCO chairman Charles Mbuvi (behind the pullpit), pose for a photo with the SACCO officials after the Annual Delegates Meeting (ADM) held on February 25, 2023. Despite the economic turbulence experienced in the country and global inflationary pressures, Nyati SACCO has continued to explore economic growth in the SACCO sub-sector. During the Annual Delegates Meeting (ADM), reviewing the 2022 financial report, held on February 25, 2023, the SACCO chairman Charles Mbuvi noted that Nyati SACCO total revenue increased from KSh 666.04 million reported in 2021 to KSh 689.9 million. “Nyati SACCO maintained an upward trajectory amid the economic and political changes in the year 2022, which continues to disrupt and cause a variety of changes in a complex and fast changing environment,” said Mbuvi. The SACCO loan interest income grew from KSh 627 million in 2021 to KSh 662 million during the same year under review, representing a 4% growth. Nyati SACCO Society asset grew over the same period to KSh 4.5 billion in 2022, up from KSh 4.1 billion during the same period in 2021. The chairman noted that the 34 SACCO Trend To meet the growing needs of its members, Nyati SACCO has since its inception in 1977 endeavoured to offer best financial service through tailored products. Society continues to diversify the products that meet member’s needs
SACCO Trend 35 society growth in key performance indicators is an encouraging trend. “This growth in asset was an increase of KSh 465 million, thus indicating stability in the SACCO’s financial position,” the chair said. The society also experienced a 10% growth in member deposits recording KSh 2.77 billion in the same year under review, up from KSh 2.51 billion reported in the previous year. Loan disbursement The SACCO realised a 2.2% growth in loan portfolio, reporting KSh 3.4 billion in 2022, compared to KSh 3.1 billion reported in the previous year. During the year 2022, the SACCO loan disbursement to members grew by 24% to KSh 3.5 billion up from KSh 3.2 billion in 2021. Loans issued by both BOSA and FOSA were KSh 2.5 billion representing 86.4% and KSh 535.4 million, representing 13.8%, respectively. Nyati SACCO share capital reported a 13.65% growth during the same year under review, from KSh 235.2 million to KSh 267.3 million. This outstanding performance saw the SACCO board of Nyati SACCO hits KSh 4.5b in assets, narrowing gap to tier 1 level Nyati SACCO delegates following the proceedings of the Annual Delegates Meeting (ADM) held on February 25, 2023. Nairobi County Director of Cooperatives Dolphine Aremo addressing Nyati SACCO members during the Annual Delegates Meeting (ADM) held on February 25, 2023.
directors pay dividends on share capital an interest on members’ deposits at the rate of 21% and 11.3%, respectively. Mbuvi encouraged members to have their salaries channeled through FOSA; in order to access FOSA based mobile loans. The SACCO is continuing to recruit new members as its membership grew by 2,115 members in the year 2022, to 15,950 members, up from 15,388 members in 2021. To meet the growing needs of its members, Nyati SACCO has since its inception in 1977 endeavoured to offer best financial service through tailored products. Society continues to diversify the products that meet member’s needs. How to join Nyati DT SACCO The SACCO chairman urged members to continued being good ambassadors to the SACCO, to help it realise the society growth in membership. For one to be a member of Nyati SACCO, they are required to; • Fill in a membership application form that can be accessed on and downloaded from the SACCOs website or obtained in their offices or delegates countrywide. • Provide copies of the National ID, latest pay slip, ATM Card and 2 coloured passport photos • Entry fee of KSh 500 • Minimum monthly deposit of KSh 1,200 • Minimum share capital is KSh 3,000 Strategic plans achieved in the year 2022 With the challenging and changing economic times, Nyati SACCO aligned with its goal of empowering members financially, came up with strategies to guide the SACCO in the next five years. Some of notable achievements include; • Enhanced human resource capacity and productivity • Leveraged technology to drive business, management and customer experience • Improved customer service and general business operations • Improved management of loans and other products for me increased revenues • Strengthened FOSA for improved service delivery and profitability Prudent financial management for increased returns on investments to members. With technology wave taking the world by storm, Nyati SACCO continues to scale heights among giant society’s in technology and innovation space. Mbuvi noted that to remain relevant and sustain its position, the SACCO will be looking at emerging trends in technology and adopting in their day-to-day activities. The move is expected drive financial growth in the sector in 2023 and beyond. The top emerging technology trends for the SACCO in 2023 include data and analytics, enhanced security and fraud mitigation, digital payments, cloud-based architectures and mobile apps. Secondly, training to members to invest wisely and be ambassadors of the SACCO in membership recruitment. Furthermore, the SACCO will ensure that enough resource is availed for training members. “Education is one of the Cooperative principles which enlighten members about the services and products offered by the SACCO. With the information and knowledge acquired, members are able to invest wisely and correctly and be champions of recruiting more members thus growth in SACCOs membership,” added Mbuvi. Thirdly, the SACCO will be partnering with CIC insurance company and will launching insurance products to cater for members’ insurance needs. Some of the starting products include; general insurance, motor insurance, micro insurance, pensions, medical insurance policies and life insurance products for the groups are. Nyati SACCO hits KSh 4.5b in assets, narrowing gap to tier 1 level 36 SACCO Trend
Expanding Financial Horizons: How product Diversification is Revolutionizing SACCOs in Kenya S avings and Credit Cooperatives have become a popular financial institutions in Kenya, with millions of Kenyans relying on them for various financial services. Over the years, SACCOs have evolved to offer a wider range of products and services beyond traditional savings and loans. This shift towards product diversification has proved to be beneficial for SACCOs in Kenya. Product diversification involves offering a range of products and services that cater to different customer needs. Diversification can take many forms, such as offering new savings and loans products, insurance products, investment products, and mobile banking services, among others. By diversifying their product offerings, SACCOshave been able to improve their financial performance in many ways. One of the benefits of product diversification for SACCOs is increased revenue streams. By offering new products and services, SACCOs can tap into new revenue streams, reducing their reliance on a single product or service. For example, if a SACCO only offers By Caroline Machira SACCO Trend 37
savings and loans products, diversifying into insurance or investment products can provide additional sources of income. This approach has worked well for many SACCOs in Kenya, including Harambee SACCO, Stima SACCO, Mwalimu SACCO among others, which offers insurance and investment products alongside its traditional savings and loans products. The additional revenue streams have helped the SACCOs to grow and expand their operations. Another benefit of product diversification for SACCOs is reduced risk exposure. Relying solely on a few products or services can increase the SACCO's exposure to risk. By diversifying their offerings, SACCOs can reduce their reliance on a single product or service, thereby reducing their risk exposure. This approach can also help SACCOs to weather economic downturns, as they are not solely reliant on a single product or service. For example, during the COVID-19 pandemic, SACCOs that had diversified their product offerings were better able to withstand the economic shock than those that had not. Expanding Financial Horizons: How product Diversification is Revolutionizing SACCOs in Kenya 38 SACCO Trend Product diversification can also help SACCOs to improve their customer experience. By offering a range of products and services, SACCOs can meet the diverse needs of their members. For example, offering mobile banking services can improve customer convenience and accessibility, while offering insurance products can provide protection for members against various risks. Many SACCOs in Kenya have embraced mobile banking as a way to enhance customer experience that allows members to access their accounts and Product diversification involves offering a range of products and services that cater to different customer needs. Diversification can take many forms, such as offering new savings and loans products, insurance products, investment products, and mobile banking services, among others. By diversifying their product offerings, SACCOshave been able to improve their financial performance in many ways
SACCO Trend 39 market. For instance, the advent of mobile banking and digital payments has transformed the financial services industry, and SACCOs that have diversified into these areas have been able to leverage the benefits of these new technologies to provide more convenient and efficient services to their members. In conclusion, product diversification has numerous benefits for SACCOs in Kenya. It enables them to spread their risks, attract a wider range of members, generate more revenue, and adapt to changing market trends and member needs. However, it is important for SACCOs to undertake thorough market research and due diligence before embarking on any new product or service to ensure that they align with their strategic goals and member needs. Additionally, SACCOs need to develop sound risk management strategies to mitigate the risks associated with diversification and ensure long-term financial stability. With proper planning, execution, and management, product diversification can be a valuable strategy for SACCOs looking to grow and thrive in Kenya's dynamic financial services sector. conduct transactions from their mobile phones. This has improved customer convenience and reduced the need for members to physically visit SACCO branches. In addition, product diversification can help SACCOs to tap into new markets and attract new members. By offering products that cater to the needs of specific groups, SACCOs can attract new members who are looking for financial solutions that are tailored to their needs. For example, by offering Sharia-compliant products, SACCOs can attract members who require financial services that comply with Islamic law. Similarly, by offering products that cater to the needs of small businesses, SACCOs can attract new members who are looking for financial solutions that are tailored to their needs. This approach has been successful for many SACCOs in Kenya, including Unaitas SACCO, which offers a range of products for small and medium-sized enterprises. Product diversification can also help SACCOs to expand their operations and improve their competitiveness. By offering a wider range of products and services, SACCOs can become a one-stop-shop for financial services, which can improve their competitiveness. This can help SACCOs to attract more members and retain existing ones. For example, by offering a range of investment products, SACCOs can compete with banks Another significant benefit of product diversification in SACCOs is the ability to attract a wider range of members. By offering a variety of products and services, SACCOs can cater to the diverse financial needs of their members. For example, a SACCO that specializes only in savings and credit services may only attract members who need those particular services. However, by diversifying their offerings to include insurance, investments, and other financial products, they can attract members with a wider range of financial needs. This ability to attract a wider range of members can lead to increased membership and revenue for the SACCO. As more members join the SACCO, the pool of funds available for lending and investment also increases, providing more opportunities for growth and expansion. Additionally, diversifying the products and services offered by a SACCO can also help to reduce the risk of overdependence on a single product or service, which can be detrimental to the SACCO's financial stability in the long run. Moreover, product diversification also enables SACCOs to adapt to changing market trends and member needs. By keeping up with changing financial trends and responding to members' evolving financial needs, SACCOs can maintain their relevance and competitiveness in the Expanding Financial Horizons: How product Diversification is Revolutionizing SACCOs in Kenya
40 SACCO Trend 1. Wananchi SACCO delegates, staff members following the proceedings of the 30th Annual Delegates Meeting (ADM) held on March 24, 2023. 2. Co-operative CS Simon Chelugui addressing Kimisitu SACCO members during the 38th Annual General Meeting (AGM) held at KICC, Nairobi on March 11, 2023.. 3. Wananchi SACCO chairman Geoffrey Kagondu receiving a certificate from Nyeri South Sub-County Co-operative Officer Joseph Wanjii after being re-elected chair, during the 30th Annual Delegates Meeting (ADM) held on March 24, 2023 1 Pictorial Captions 2 3
Pictorial Captions 3 4 2 5 SACCO Trend 41 1 1. Qwetu SACCO, chairman, Alfred Mlolwa Addressing the delegates during the Annual Delegates Meeting (ADM). 2. Prime CS Musalia Mudavadi during the official openning or Tower SACCO Plaza. 3. Stima SACCO CEO Gamaliel Hassan, National Vice Chair, Rosemary Oduor, National Treasurer John Mudany, and Secretary Osman Khatolwa share a smile over the audited financial report for 2022. 4. Siraji SACCO chairman Franklin Mwirgi addressing delegates during the Annual Delegate Meeting (ADM) held on March 9, 2023 (1). 5. Ports SACCO board of directors chair Alfred Konde speaking during the launch of the new name on May 10, 2023.
42 SACCO Trend 1. Tower SACCO chair Peter Ngugi speaking during the launch of Tower SACCO Plaza on April 26, 2023. 2. Prime Cabinet Secretary Musalia Mudavadi speaking during the launch of Tower SACCO Plaza on Wednesday, April 26, 2023. 3. Co-operative CS Simon Chelugui addressing Kimisitu SACCO members during the 38th Annual General Meeting (AGM) held at KICC, Nairobi on March 11, 2023.. 4. Co-operatives CS Simon Chelugui (centre) arrives at Ports SACCO rebranding event, escorted by the society CEO Dedan Ondieki (left) and Chairman Alfred Konde (right) among other officials. Pictorial Captions 3 2 4 3
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