USHIRIKA DAY 2023: Port SACCO does it again! Get what’s trending in the cooperative world SACCO TREND MAGAZINE 025 July - August Edition 2023 Ksh 150 +254 0111 173 000 [email protected] www.portsacco.co.ke
iii Dear Reader, Welcome once again to the fourth edition of SACCO Trend Magazine 2023. It is that time of the year when Savings and Credit Co-operative Societies (SACCOs come together to celebrate the International Day of Cooperatives, also known as Ushirika Day in Kenya, a day that highlights their remarkable achievements in transforming lives and fostering sustainable development. Cooperatives have been an integral part of societies around the world, and Kenya has a rich history of embracing the cooperative movement. From agriculture to finance, housing to healthcare, cooperatives have played a pivotal role in uplifting communities, empowering individuals, and promoting inclusive growth. The 2023 Ushirika Day holds special significance as we reflect on the challenges our world has faced in recent times. The global pandemic underscored the importance of collective action and mutual support. Throughout this period of uncertainty, cooperative societies stood as beacons of hope, providing aid, resources, and a sense of belonging to their members. The theme for this year's celebration, "Building a Better World Through Cooperation," reminds us that by working together, we can address pressing issues such as poverty, climate change, and economic inequality. Cooperatives embody the principles of democracy, equity, and solidarity, which are essential in creating a more just and sustainable future. In this edition, SACCO Trend Editorial brings you inspiring stories of cooperatives in Kenya that have excelled in various sectors, making a positive impact on the lives of their members and beyond. We explore how these enterprises have harnessed innovation and adaptation to navigate the challenges of the modern world while staying true to their cooperative values. Additionally, we delve into the role of SACCOs in shaping the future of diverse membership through value creation and sustainable customer service. We extend our gratitude to the members and leaders of cooperatives who tirelessly work to foster the principles of togetherness and collaboration. Let us be inspired by the unwavering spirit of cooperation that continues to fuel progress and create opportunities for all. Together, we can build a better world that cherishes equality, sustainability, and prosperity for every individual. Enjoy your reading!. Satrend Ventures LTD, Accra Road White Angle House. Editor’s Note SACCO Trend Celebrating Ushirika Day 2023 - The Spirit of Cooperative Prosperity 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 32. UN DT SACCO maintains top Spot among Best Managed Societies in Kenya: We’re proud of this achievement – CEO Nebart Avutswa 36. Ushirika Day 2023: IG SACCO emerges as the best overall managed SACCO in Kakamega County 18. Kenya National Police DT SACCO floors other societies in the Ushirika Day celebrations 2023. 2. Port SACCO does it again, bags top memberempowerment award during Ushirika Day 2023 10. Ushirika Day 2023: Safaricom DT SACCO emerges among top societies in Kenya, bags technology optimisation award nationally 6. NewFortis SACCO shines as best society in member value creation, bags top awards during Ushirika Day 2023 Features Contents Regulars & Extras 22. Dimkes DT SACCO shines at Ushirika Day 2023, leads in technology optimization 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. 2NK tops in Nyeri County Ushirika Awards as the best transport SACCO 25. Tabasamu DT SACCO wins glamorous honours at Ushirika Day 2023
Contents
2 SACCO Trend Port SACCO does it again, bags top member-empowerment award during Ushirika Day 2023 P ort SACCO, previously known as Mombasa Port SACCO, continues to scale heights among top societies in the cooperative movement. The SACCO was crowned the best in education and training category award, during the 101st International Day of Cooperatives, commonly known as Ushirika Day in Kenya. The 2023 Ushirika celebration took place at the Mombasa shows grounds on Saturday, July 1. Port SACCO keeps the pace year in and year out and has won several trophies including the best SACCO in the public sector, the most innovative SACCO, the best managed Saco countrywide and the third in lowest expenditure, highest dividend and interest rates on members’ deposit, best stand in the cooperative sector in Mombasa county. SACCO performance According to the board of directors chair Alfred Jaka, the outstanding performance realised over the years gives Port Saco a competitive edge in the sector. Jaka attributed this to the hard work and dedication employed by the society board and the management team in realising efficient and effective member service delivery. By SACCO Trend Reporter Port SACCO keeps the pace year in and year out and has won several trophies including the best SACCO in the public sector, the most innovative SACCO, the best managed Saco countrywide and the third in lowest expenditure, highest dividend and interest rates on members’ deposit, best stand in the cooperative sector in Mombasa county Port SACCO awards won during Ushirika Day celebrations on July 1, 2023.
SACCO Trend 3 Despite the challenges facing many SACCOs in Kenya, Ports SACCO has maintained sturdy growth and development. Financial reports indicate that the SACCO’s total assets grew to KSh 8.4 billion and member deposits recorded KSh 4.58 billion in the financial year ending December 31, 2022. In addition, the SACCO declared dividends on share capital at a rate of 20%, amounting to over KSh 75.9 million and interest on deposits at a rate of 12.5% or over KSh 496 million, making a gross total of over KSh 571.9 million, during the same year under review. Jaka acknowledges the loyalty and support Port SACCO has been receiving from its over 10,000 members in sealing the victory. He confirmed the SACCO’s plan seeking to grow its membership from 11,741 members reported in 2022 to 16,800 members in 2023, mainly in non-Port towns. The society draws its members from all sectors of the economy, including private and public institution workers, Port SACCO does it again, bags top member-empowerment award during Ushirika Day 2023 Cooperatives and SME Development CS Simon Chelugui (centre), Port SACCO chairman Alfred Jaka (right), CEO Dedan Ondieki (left) and other officials walking to the meeting.
4 SACCO Trend Port SACCO does it again, bags top member-empowerment award during Ushirika Day 2023 business community members, individuals and groups or chamas. The SACCO has already put in place an expansion strategy that will see it open more branches in Mombasa and Lamu counties. The expansion drive aims to grow the SACCO membership from as far as Rwanda, Canada, the United Kingdom united states, Uganda and among others. Port SACCO draws its strength from a highly qualified staff sensitivity to customers’ needs, adaptability and flexibility of the products and services as well as a committed membership. The SACCO is fully licensed by the SACCO Society Regulatory Authority (SASRA) as a depositing-taking financial institution. Member service and empowerment In reaching out to divergent membership, Port SACCO has further structured entrepreneurship interventions and support systems for members in business through microfinance savings and credit. The society has also facilitated efficient service delivery by embracing a robust investment in Information and Communication Technology (ICT) platforms that offers alternative banking channels (ABCs) like ATM services, mobile banking, and SMS banking among others. The SACCO’s Front Office Service Activities (FOSA) and Back Office Service Activities (BOSA) have also been doing well as members fully patronize the services. These services ensure value for members’ savings and empowerment through credit facilities up to more than KSh 5 million, offered at highly competitive rates. “The board has been encouraging the SACCO members to plough back their interest on deposit to qualify for bigger development loans in the future dividends on members’ shares,” said the SACCO Chief Executive Officer Ondieki, Ondieki thanked the society and the organizing committee for their support in terms of the timely remittance of member’s contributions which has enabled the SACCO to meet obligations, since its inception in 1966. “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 to agility also reflects its innovative culture, which is essential for driving growth and staying competitive in a crowded market,” said Ondieki. The SACCO has already put in place an expansion strategy that will see it open more branches in Mombasa and Lamu counties. The expansion drive aims to grow the SACCO membership from as far as Rwanda, Canada, the United Kingdom united states, Uganda and among others
Development Loan TABASAMU SACCO Pamoja Tunawiri fifffflffiflffflflfflfflflffiffiffifflff ffffl ff fiffffiflffi ffiffflffifflfl flffifffl ffffl ffflfflflfl fffffflffflffl ff ffi ffi fffl ffflflflffi flff ffffl ffffl For a loan above 300,000, the monthly contribution shall be Ksh. 3,000. processing fee 2% and Insurance fee of 1.5%. Interest rates are on reducing balance and charged as follows; 100,001 - 200,000 200,001 - 300,000 300,001 and above
6 SACCO Trend NewFortis SACCO shines as best society in member value creation, bags top awards during Ushirika Day 2023 NewFortis SACCO continues to set the pace in the co-operative movement, as the best society that maximizes value for members’ savings. The SACCO clinched top awards during the 101st International Day of Cooperatives, commonly known as Ushirika Day 2023. The event that took place on Saturday, July 1, bringing all co-operatives in Nyeri county, saw the SACCO bag two awards – position 1 – Highest Interest Rate on Deposits at 13% and Position 2 – Highest Dividend Payment Rate at 14%. The SACCO prioritizes member value creation and sustainable development in carrying out its mandate as a cooperative society. NewFortis board and management team underscores the significance of its membership to the growth of the society. “We reported outstanding performance, only because of the continued support from members in terms of their patronage, loyalty and confidence in the SACCO products,” read the board of directors’ report for the year ending December 31, 2022, in part. NewFortis SACCO membership grew from 15,758 members reported in 2020 to 19,729 members during the same year under review. The SACCO operates on an open membership structure, drawing its members from government, civil servants, the business community, individuals, groups and chamas. By SACCO Trend Reporter NewFortis SACCO Chairman, Mr. John Githinji speaking during Ushirika Day celebrations in Nyeri County on July 1, 2023
SACCO Trend 7 NewFortis SACCO shines as best society in member value creation, bags top awards during Ushirika Day 2023 Nyeri Governor Mutahi Kahiga, Nefortis SACCO board chair John Githinji and SACCO officials pose for a photo after Ushirika Day celebrations on july 1, 2023 According to the 2022 Financial Report, about 943 NewFortis SACCO members had attained millionaire status, after their deposits hit millions. The SACCO member deposits grew from KSh 4.9 billion in 2020 to over KSh 6.3 billion compared to KSh 5.6 billion reported during the same period in 2021. Member value creation Members’ shares also increased to KSh 145.4 million up from KSh 129.2 million and KSh 117.9 million recorded in 2021 and 2020, respectively. NewFortis disbursed KSh 6.9 billion in loans to members, up from KSh 6.2 billion in 2021 and KSh 5.8 billion in 2020. This saw member returns from the SACCO increase to over KSh 795 million in dividends and interest on deposits. The society paid dividends and interest on members’ deposits at a rate of 14% and 13%, respectively, during the year under review. NewFortis SACCO continues to scale heights in the cooperative movement, thanks to its strategic plan and framework. The SACCO has been operating on a threeThe event that took place on Saturday, July 1, bringing all cooperatives in Nyeri county, saw the SACCO bag two awards – position 1 – Highest Interest Rate on Deposits at 13% and Position 2 – Highest Dividend Payment Rate at 14%.
8 SACCO Trend NewFortis SACCO shines as best society in member value creation, bags top awards during Ushirika Day 2023 year strategic plan, scheduled to end during the fiscal year 2023. Member service The plan is anchored on key principles including corporate governance, sustainable service delivery, and capacity development among others. For the last 47 years, since the society was initiated, NewFortis SACCO continued to operate within the limits of members’ needs and expectations, giving it a competitive edge in the financial sector, especially the cooperative movement. The society leverages Information Communication Technology (ICT) in its service delivery, enhancing seamless transactions involving ATM, mobile banking and m-loan services among other alternative banking channels (ABCs). Through the Verve ATM services, NewFortis SACCO members can easily access services including withdrawal, deposit, money transfer, checking balances, ministatements and making payments. Another ABC NewFortis SACCO embraces and continues to utilize is the mobile banking service, offered via Fortis Cash. This can be accessed via USSD code *426# or mobile application. “Visiting a branch is now the exception. The rule is to transact and interact with us anytime via your mobile phone. Now your financial management and growth can be accessed at your convenience,” the SACCO writes on its website. NewFortis enjoys a presence across major towns in the country and looks set to expand its branch network for the year 2023, reaching out to divergent members and their needs. The society boasts of a branch in Nyeri (Newfortis SACCO Head Office), Nairobi Branch, Nanyuki Branch, Othaya Branch and Karatina Branch. The SACCO guarantees efficiency in service delivery, customer support, member value creation and empowerment. This is achieved through competitive and affordable credit facilities offered under SACCO Society Regulatory Authority (SASRA) regulations. NewFortis enjoys a presence across major towns in the country and looks set to expand its branch network for the year 2023, reaching out to divergent members and their needs. The society boasts of a branch in Nyeri (Newfortis SACCO Head Office), Nairobi Branch, Nanyuki Branch, Othaya Branch and Karatina Branch
Ushirika Day 2023: Safaricom DT SACCO emerges among top societies in Kenya, bags technology optimisation award nationally S afaricom DT SACCO has emerged among the top societies that bagged awards during the 101st International Day of Cooperatives, commonly known as Ushirika Day in Kenya. The SACCO not only secured first position in various categories but also demonstrated its commitment to technology optimization, customercentricity, and value creation. The SACCO was crowned position one in Technology Optimization Countrywide, Technology Optimization Deposit Taking SACCOs Tier 1, Most Improved Deposit Taking SACCOs Employer-based SACCOs Tier 1, Best in Deposit Management Deposit Taking SACCOs Employerbased SACCOs Tier 1 and position three Most Efficient Deposit Taking SACCOs Employer-based SACCOs Tier 1. The SACCO Chief Executive Officer (CEO) Joseph Njoroge welcomes the victory and outstanding performance, saying it is the spanner in the society’s transformational agenda that focuses on member value creation, improved service delivery and sustainability. "We have done it again! We take pride in consistently being rated and ranked among the top SACCOs in the country. This recognition is a testament to our unwavering dedication to improving our services for our members. It motivates us to continue setting higher standards within the cooperative movement and the financial sector at large," Mr. said Njoroge, during an exclusive interview with SACCO Trend Magazine. Mr. Njoroge reveals that digital technology adoption anchored in the Safaricom DT SACCO strategic plan ensures that members conveniently and efficiently get access to the desired financial services. Through a huge investment in technology, the SACCO guarantees members digitised transactions including the opening of accounts, online loan applications, funds transfer and mobile transactions. Safaricom DT SACCO keeps abreast of trends in technology and member dynamics, giving the society a competitive edge within the cooperative movement. Mr. Njoroge notes that the SACCO conducts market research to understand these trends. 10 SACCO Trend Safaricom DT SACCO chair Paul Msava (center), vice chair Elizabeth Mudogo and honourable secretary Alex Okoth pose for a photo with awards won during Ushirika Day celebrations on July 1, 2023.
Ushirika Day 2023: Safaricom DT SACCO emerges among top societies in Kenya, bags technology optimisation award nationally SACCO Trend 11 “We conduct market research to understand current changes in the market and innovate our products according to our member’s needs. “Internally, we have carried out a study on our membership and learned 80% of this are quite a young generation and this way we innovate products that capture this class of members, we communicate to them through all social media platforms. And the same is immediately implemented into our systems,” he said. Member value creation The society was also recognised for the best deposit management portfolio, a fact the CEO attributes to continued member education focusing on equipping them with the best savings and investment skills. As the key SACCO business mandate, Safaricom DT SACCO aggressively mobilises members’ deposits through channels such as digital marketing, as it strives to create value and empower them financially. “We continue to offer education to our members and help them understand the importance of saving and investment. We encourage them to keep track of their deposit, which makes them eligible to borrow loans. The multiplying factor is at x3 of one’s deposits for our loans and currently, our mortgage has gotten even better with a x10 multiplying factor or 4 times annual gross salary. “We offer affordable and competitive non-fluctuating interest loans, starting from as low as 0.8% per month, with the highest loan capped at only 12% per annum. We also provide extended loan repayment periods of up to 25 years, catering for our members' diverse needs,” said the CEO. The growth in the SACCO loan portfolio maximises value for members’ deposits and savings, which attracts competitive rates on rebates, and interests on deposits. In the financial year ending December 31, 2022, the society paid out 9% interest on deposits as compared to 8% paid in 2021. During the same year under review, the SACCO members’ deposits grew by 14% to KSh 7.8 billion, up from KSh 6.8 billion reported in the previous year. In its transformational agenda, Safaricom DT SACCO endeavours to recruit more members, retain existing Nairobi County Director of Cooperatives Dolphine Aremo (second right), Safaricom SACCO chair Paul Msava (left) and other SACCO officials pose for a photo with awards won during Ushirika Day celebrations on July 1,
Ushirika Day 2023: Safaricom DT SACCO emerges among top societies in Kenya, bags technology optimisation award nationally ones and improve the society’s products and services to meet the needs of the growing membership. With a membership of over 15,000 members, the SACCO targets more recruits from the staff of Safaricom PLC and its partners, Technology companies such as Nokia, Huawei, Adrian and individual members and their spouses. “One of the most significant advantages of investing in Safaricom SACCO is the potential for high returns “SACCO’s play a critical role in enhancing Financial inclusion through offering services to members previously cut out from the financial systems. There are numerous benefits you get by having a SACCO account “When choosing a SACCO, ensure you join a SACCO that is not only operating legally but also has the service you need. Safaricom SACCO is one of the best SACCO to consider,” said the CEO. on investment. The SACCO also guarantees low-risk investment options. We are registered and regulated by the SACCO Society Regulatory Authority (SASRA), ensuring members’ deposit protection.” Mr. Njoroge adds that Safaricom DT SACCO guarantees members financial opportunities by offering a range of loan products. This can include personal loans, mortgage loans, and even business loans. Strategic Plan Mr. Njoroge maintains that Safaricom DT SACCO's strategy for the year 2023 focuses on growing the SACCO assets to KSh 11.3 billion, deposits and loan book to KSh 8.7 billion and KSh 7.6 billion, respectively. The SACCO also aims to entrench customer centricity in its operation. Several initiatives have been launched to help the SACCO achieve its strategic plan goals for the year; Safaricom DT SACCO awards and certificates for Ushirika Day 2023 celebrations held at KICC Nairobi on July 1, 2023. 12 SACCO Trend
Ushirika Day 2023: Safaricom DT SACCO emerges among top societies in Kenya, bags technology optimisation award nationally 1 Feature Enhancements on I-connect - The online web portal iConnect has been enhanced to enable end-to-end online member registration. All members are on-boarded through the portal and there is no paperwork whatsoever. 2 Member KYC details are verified through our integration with Integrated Population Registration System (IPRS) where the Identity Card is verified and authenticated. Similarly, a Credit Reference Bureau check is done online to ensure the validity of the member. This has enabled the society to grow our membership, especially to the young generation and our members in the diaspora. 3 CRM – the SACCO has deployed a CRM system that will enable the management to monitor endto-end customer journeys to create a 360-degree view of every customer. 4 Mobile App – SafCIRI: This is what keeps Safaricom DT SACCO among the top national cooperatives in technology optimization. The society has been innovating the app by adding more features that enhance the DIY (Do it Yourself). The app can perform the following. I. Stop/Block lost ATM Card II. Apply for instant Mobile loans up to KSh 200,000 III. Pay Utility bills and buy airtime IV. Access to SACCO Statements. V. Funds transfer through Pesalink on both I Connect and SafCIRI. VI. Instant question and feedback platform where members interact with an agent and get instant feedback. VII. Rating platform on how members feel about the services accorded with the provision of additional feedback. VIII. Loan calculator for members to self-appraise themselves before getting a loan. IX. Ability to self-update next of kin with the confirmation of an internal officer. Thorough SafCIRI, Safaricom DT SACCO members get access and enjoy all services in the comfort of their homes. Ushirika Day Awards – Best SACCO in Technology Optimisation (Deposit Taking SACCOs), Best in Technology Optimisation Countrywide, and 3rd Best in Risk in Risk management. CSR Awards – Best in Health and Wellness Initiatives, recognising the Sacco exceptional and commitment to Corporate Social Responsibility. These awards reaffirm the SACCO commitment to offer best customer experience. They include; The society bagged over 10 awards in the financial year under review, ranging from local and international organisations. Why Choose Safaricom SACCO? Champion of Governance (COG) – Awards recognises organisations with highest standards of good governance practice. It also recognises innovation in business governance. The Sacco was named COG winner in Co-operative Sector category, and 2nd Runners up for the overall champion. Safaricom DT SACCO also bagged a Gold Mark for Excellence in Enterprise Information Technology Adoption. The society’s mobile App SafCIRI was also recognised. Digital SACCO Trend 13
2NK tops in Nyeri County Ushirika Awards as the best transport SACCO By Clarence Imbayi 14 SACCO Trend During the award ceremony on Saturday, July 1, 2NK SACCO bagged the Best Transport SACCO paying the Highest Interest on Deposits at the rate of 13.5%. The society also emerged second best in the Highest Dividend payment rate on share capital at a rate of 20.0%. 2NK SACCO marketing manager Peter Maina attributes the society’s success to the efforts levelled by the board and management team, in ensuring efficient and sustainable member service. "It was indeed a milestone for us. Thanks to the entire team of 2NK SACCO for the tireless effort that they put in place to ensure that we serve our customers better and indeed our effort paid off," says Maina in an exclusive interview with SACCO Trend Magazine. Maina notes that 2NK SACCO anchors its mandate on member value creation and empowerment, as depicted in its competitive returns on investment. He says the SACCO thrives to provide members with the best services beyond their expectations, giving it a competitive edge within the cooperative movement, especially in the transport sector. SACCO's strategic plan and members' service 2NK SACCO operations are anchored on a five-year strategic plan that enables the society to withstand economic turbulence in the country. The transport sector is affected by fluctuating fuel prices in the recent couple of months, but the plan facilitates the adoption of the changing times. This keeps the SACCO relevant and competitive in the transport sector. "Our strategic plan has given us more focus on customer satisfaction and building strong customer relationships, 2NK SACCO Board Chairman, Directors, County Director Cooperative Development, Chief Officer department of Trade,Tourism Culture and Cooperative Development,Shareholders,Stakeholders, Strategic partners and Staff Ushirika Day 2023
SACCO Trend 15 2NK tops in Nyeri County Ushirika Awards as the best transport SACCO 2NK SACCO officials pose for a photo with the award won during the Ushirika Day celebration on July 1, 2023 which has helped in the difficult times and thriving in the sector," Maina explains. He attributes the increased membership and the growth of the SACCO to good corporate governance, incorporation of technology and member inclusivity. "Competent leadership is a key strategy to any thriving entity, member participation and embracing technology in our operations," adds the marketing manager. With technology penetrating all spheres of life, the SACCO has embraced technology to diversify their services and safeguard its members’ investments and increase service accessibility through online mobile banking and bookings. "We have embraced technology to deliver efficient and inclusive financial services by leveraging mobile banking, online booking platform, and digital payment systems, hence increasing accessibility, convenience and transparency." The SACCO membership is open to corporates, small and medium enterprises and chamas as well. The society’s membership goal is geared towards financial growth and ease of access to affordable and competitive financial services. "To individuals, corporates and Chamas looking for a SACCO that will meet your financial expectations in terms Ushirika Day 2023 2NK SACCO operations are anchored on a fiveyear strategic plan that enables the society to withstand economic turbulence in the country. The transport sector is affected by fluctuating fuel prices in the recent couple of months, but the plan facilitates the adoption of the changing times. This keeps the SACCO relevant and competitive in the transport sector
of ease of access to credit, investment opportunities, competitive dividends and personalized service delivery, 2NK SACCO is the place to be," says Maina. Member Training Further, the SACCO's success has been aligned to gender sensitivity, diversification of services and constant financial literacy training to members and board members, which has attracted members from different functions. Maina maintains that training is necessary as the world keeps on changing, and adoption of the changes in the world is key for continuity and growth. "2NK SACCO has addressed gender disparity and promoted financial inclusion through the provision of financial literacy programmes, entrepreneurial training and microcredit facilities specifically designed for our diverse membership," he adds. The SACCO is among the first in the country to be registered by SACCO Society Regulatory Authority (SASRA) from the transport sector and has been hopeful of a bright future impacting lives not only in the transport sector. 2NK SACCO encourages saving culture in the country echoed by the government in its economic model Bottom-up. "2NK being the first Transport SACCO to be licensed by SASRA is set to become a major force not only in the transport industry but also in the financial sector with a strong branch network across the country. We as 2NK SACCO gets inspired when our members’ lives are positively impacted. We have witnessed tremendous growth in membership translating to the financial empowerment of thousands of families and job creation. We are committed to upholding our promise of “Service beyond imagination” and being part of your success story," Maina explains. The SACCO has also opened a new public service vehicle (PSV) route to Mombasa, from Nyeri and Nakuru respectively. The service focuses on customer luxurious travel maintained and further improved for client safe travels and comfortability. " As a leading transport SACCO in Kenya, our primary duty is to ensure reliable transport to our clients to various destinations with ease. We are delighted to introduce luxury shuttle services from Nyeri to Mombasa, Nakuru to Mombasa, and Nairobi to Mombasa,” confirms Maina. 2NK SACCO members attending a training event. 2NK SACCO fleet for new Nairobi-Mombasa route. 16 SACCO Trend 2NK tops in Nyeri County Ushirika Awards as the best transport SACCO Ushirika Day 2023
18 SACCO Trend Kenya National Police DT SACCO has knocked out other societies in the 101st Ushirika Day celebrations held in Nairobi on July 1st, 2023 at KICC, Nairobi. The event was graced by President William Ruto, Deputy President Rigathi Gachagua, CS Cooperatives Simon Chelugui, and CS Water Alice Wahome among other government officials. The SACCO bagged top positions including best managed SACCO countrywide, best managed SACCO- DT SACCO, best in capitalisation- DT SACCO, best in credit management and position three (3) in best deposit management. This year's celebration themed Co-operatives Partners for Accelerated and sustainable development, CS Cooperatives Simon Chelugui recognized the vital role played by the SACCO subsector in the country's economy, as it is in alignment with the president's economic agenda bottomup economic model. "The cooperative sector is key in the implementation of the Bottom-up Economic Transformation Agenda (BETA) and I wish to reiterate my commitment and that of my ministry in ensuring that the vision of our president is achieved. We firmly believe that cooperatives hold the key to driving economic growth from the grassroots level." CS Chelugui stated. He further stated the commitment of the ministry to supporting cooperatives and identifying value chains that drive economic development to uplift communities in the country. Additionally, the CS said that this will create sustainable employment opportunities for youths in the country. Despite trembling economic turbulence in the country for the past two years, the SACCO has managed to maintain its dominance and remain, with constant recruiting of members and training for the SACCO. President William Ruto pledged his support to the SACCO sector, as they are integral in the process of economic recovery and his economic agenda. By Sabila Namaemba Kenya National Police DT SACCO board chair David Mategwa receives the award from President William Ruto during Ushirika Day celebrations held at KICC, Nairobi on July 1, 2023 Kenya National Police DT SACCO floors other societies in the Ushirika Day celebrations 2023.
SACCO Trend 19 "The deliberate strengthening of cooperative societies will help in the formalization and mainstreaming of marginal and informal sector entrepreneurs. This move will accord them access to training and affordable credit to support their businesses, hence tackle poverty and accelerate our economic growth." President William Ruto said. Member sensitization on investment The cooperative principle of member education is an essential aspect of cooperative societies globally. In Kenya, the Kenya National Police DT SACCO has taken this principle seriously and invested in the education of its members. The SACCO has realised that education is crucial for the growth and development of its members. For this reason, it has embarked on an ambitious education programme that will enable its members to improve their skills and knowledge in various fields. The 2023 education programme focuses on several areas, including financial management, leadership and governance, entrepreneurship and digital skills. Members have access to training programmes, mentorship and coaching services through the training events, gaining relevant skills and knowledge for their investment projects. The programme kicked off with a member activation event on March 2, 2023, when SACCO team members met Kenya National Police DT SACCO floors other societies in the Ushirika Day celebrations 2023. Kenya National Police DT SACCO CEO Solomon Atsiaya (centre) pose for a photo with the Ushirika overal award together with management team, during Ushirika Day celebrations held at KICC, Nairobi on July 1, 2023 Kenya National Police DT SACCO overal winner, Best Managed SACCO, Ushirika Day Award 2023
20 SACCO Trend at the Border Police Unit (BPU) and (BPTC) in Kanyonyo, Kitui County. Kenya National Police DT SACCO said the drive was a continuous effort to provide a better life for members through the provision of various financial products and services. SACCO membership On March 15, the society held the first awareness drive for members at Border Police Unit (BPU) Satellite Camp Tseikuru in Kitui County. The event was led by James Mukui, the Marketing and Customer Care Manager. "Financial literacy is an ongoing endeavour to empower members to lead quality lives through the provision of diversified financial products and services," the SACCO said. To launch the education programme, the SACCO has partnered with various experts to provide quality education on the products offered by the society. The Kenya National Police DT SACCO has revised its bylaws to open the common bond. This means that the society draws its membership from; • Police officers in service and retired • Serving and retired Administration Police Officers • Civilian in the employment of the Kenya Police Service • Employees of the Kenya National Police DT SACCO Society • Permanent employees of Utumishi Investment Limited • Permanent employees of Ruaraka Housing Estate Limited • Employees of the civil service • Employees of companies operating in Kenya • Business community • Spouse, son or daughter of the above members President William Ruto engages Kenya National Police DT SACCO board chair David Mategwa at the stand during Ushirika Day celebrations held at KICC, Nairobi on July 1, 2023 Kenya National Police DT SACCO floors other societies in the Ushirika Day celebrations 2023. This year's celebration themed Co-operatives Partners for Accelerated and sustainable development, CS Cooperatives Simon Chelugui recognized the vital role played by the SACCO subsector in the country's economy, as it is in alignment with the president's economic agenda bottom-up economic model
Speaking at the 50th anniversary in February 2023, the National Chairman of the SACCO Board of Directors, David Mategwa, attributed the success of the Kenya National Police DT SACCO to the loyalty and support of its members. "The story of the Kenya National Police DT SACCO cannot be complete without mentioning the 690 members who came up with the idea - which has grown into an industry-leading organisation that supports other societies across the country and beyond," Mategwa said. Mategwa said the SACCO strives to empower its members and meet their needs and expectations through such actions. "We are still driven by the desire to support our members, even in the future. We will offer more products on digital platforms, enter into partnerships and collaborations and maximise value creation for our members," said the Chairman. SACCO's performance and growth During the financial year ending December 31, 2022, the SACCO recorded a tremendous growth in membership of up to 71,000 members. Member deposits also increased to KSh 25.9 billion in 2021 from KSh 23.5 billion, an increase of 10.2%. The growth in membership and deposits was reflected in the SACCO's loan portfolio, which grew by 9.4% to over KSh 40.8 billion, compared to KSh 37.3 billion in the previous year. This saw the SACCO asset base rise to KSh 48.9 billion, up from KSh 44 billion, showing a growth rate of 11%. The SACCO bagged top positions including best managed SACCO countrywide, best managed SACCO- DT SACCO, best in capitalisation- DT SACCO, best in credit management and position three (3) in best deposit management Kenya National Police DT SACCO floors other societies in the Ushirika Day celebrations 2023. Kenya National Police DT SACCO awards won during Ushirika Day celebrations held at KICC, Nairobi on July 1, 2023 SACCO Trend 21 The SACCO's investment in member education is indicative of its commitment to the cooperative principle of member education. It also demonstrates the SACCO's vision to empower its members to be self-reliant and contribute to the economic growth of the country. The Kenya National Police DT SACCO's education programme is a commendable initiative that will greatly improve the lives of its members and the society at large. By investing in the education of its members, the SACCO is setting an example for other cooperatives to ensure member value creation. Kenya National Police DT SACCO Ushirika Day 2023 Awards • Position 1 - Best Managed SACCO Countrywide • Position 1 - Best in Capitalization Countrywide Deposit Taking SACCO, Employer Based SACCO Tier 1 • Position 1 - Best Managed Deposit Taking SACCO, Employer Based SACCO Tier 1 • Position 1 - Best in Credit Management Deposit Taking SACCO, Employer Based SACCO Tier 1 • Position 3 - Best in Deposit Management Deposit Taking SACCO, Employer Based SACCO Tier 1
Dimkes DT SACCO shines at Ushirika Day 2023, leads in technology optimization Dimkes DT SACCO bagged several awards from the Ushirika Day 2023 celebrations held on Saturday, July 1, and presided over by President William Ruto at the Jomo Kenyatta International Conference Centre (KICC), Nairobi. Ushirika Day is a yearly celebration of cooperative societies’ contribution to the economy. The SACCO was the number one best in technology optimization nationally – in the community based SACCO category – and the leading most improved deposittaking SACCO in the country. Dimkes SACCO was also the third best in deposit management during this year’s celebrations. It also emerged as the best in share capital mobilization in Kiambu County. By Marion Achieng President William Ruto passed by the Dimkes DT SACCO display stand during the 101st Annual Ushirika Day celebrations held at the KICC • Position 1 Best in Technology Optimisation – DT SACCO • Position 1 Most improved DT SACCO • Position 1 Best in Share Capital mobilization in Kiambu County • Position 3 Based Managed DT SACCO • Position 3 Best Deposit Management –DT SACCO Dimkes SACCO 2023 Ushirika Awards Under the Community Based SACCO category, below are Dimkes SACCOs awards won during the 101st International Day of Co-operatives held on Saturday, July 1, 2023; 22 SACCO Trend
SACCO Trend 23 Dimkes DT SACCO shines at Ushirika Day 2023, leads in technology optimization Technology optimisation This comes as Dimkes DT SACCO continues with its mandate to improve the financial well-being of its divergent membership drawn from various sectors of the economy, including individuals, groups (Chama’s) and corporate bodies. The SACCO endeavours to offer efficient and convenient financial services to its over 30,000 members, thanks to the strategies anchored on technology and its trends. Dimkes DT SACCO operates based on alternative banking channels (ABCs), including mobile banking, which allows members to conduct various transactions from the comfort of their homes or anywhere using the Dimkes M-Chipuka app and USSD service code *645# to access mobile banking services. Mobile banking allows Dimkes members to withdraw money, deposit cash, transfer funds, and get loans at the palms of their hands. They can also buy airtime, get mini statements, and check balances and member information through the app. Agency Banking Another key ABC in Dimkes SACCO operation for efficient service delivery is Agency Banking. The SACCO boasts 23 agents across the country and aims to expand the service to 65 by the end of the year 2023. This followed a successful pilot that saw 15 agents tested and approved by the SACCO Society Regulatory Authority (SASRA), giving the society a green light to venture Dimkes SACCO board and management team pose with trophies won during the Ushirika Day celebrations at KICC Nairobi on July 1, 2023. into the service for improved customer support and sustainability. Through the agency banking services, members can withdraw money, deposit cash, and transfer funds, among other services at their convenience. This service is significant to the SACCO as it boosts the society’s branch network services. “For the last 2 years, we have invested on helping members to build resilience post-Covid-19 in order The SACCO was the number one best in technology optimization nationally – in the community based SACCO category – and the leading most improved deposit-taking SACCO in the country. Dimkes SACCO was also the third best in deposit management during this year’s celebrations
24 SACCO Trend Dimkes DT SACCO shines at Ushirika Day 2023, leads in technology optimization Dimkes SACCO officials led by CEO Benson Maina pose for a photo with the trophies during Ushirika Day 2023 Dinner Gala at KICC to regain their financial stability. The focus has been on service delivery and building efficiency in our operations. This has been a concerted effort by the board and the staff together with key stakeholders which has yielded results and member confidence,” said Benson Maina, Dimkes Saco Chief Executive Officer. In a world where the power of social media is evident, Dimkes SACCO has not been left behind. It is a forward thinking entity with social media presence on all social media platforms, showing its commitment to using current innovations to improve client experiences and keep them informed in real time. Members can information and respond to their queries through the society’s email and customer call centre available Monday to Saturday.. Branch network Dimkes DT SACCO boasts 13 branches in the counties of Nairobi, Kiambu and Kajiado. They include Ngong Branch, Kikuyu Branch, Kiserian Branch, Nairobi Branch, Kangemi Branch, Limuru Branch, Wangige Bishop Kariuki Centre, Wangige Town Branch, Banana Branch, Githunguri Branch, Ruaka Branch and Kimende Branch The financial institution was established in 1999, exclusively as a women's SACCO with the minimum deposit amount being KSh 500. The organization grew over time and in 2010 became a reaching deposit-taking institution, changing its by-laws to accommodate members from all sectors of the economy. Today, it has over KSh 2 billion portfolios with over 31,000 members and aims to grow its membership to 60,000 members. Dimkes DT SACCO is a SASRA licensed institution with offices based at Bishop Magua House 2nd floor in Kiambu next to ACK St. James Cathedral. It offers loans for businesses, construction, school fees, and farmers at competitive interest rates. The institution also provides asset finance, LPO, and salary advances, among other products. Members can choose from Dimkes SACCO’s various saving products to reach their goals. They include FOSA savings, smart saver accounts, fixed deposit accounts, call deposit accounts, and junior star accounts. The SACCO vision is to be a world-class deposit-taking SACCO for its members. Member education The SACCO also provides business and financial consulting to help members grow their businesses and make sound financial decisions. Dimkes SACCO leverages member education to empower its members with knowledge and skills on best savings and investment practices. The initiative helps the society members make informed choices or various tailored products that meet their financial needs and expectation. In its 2023 strategic plan, the SACCO continued to engage more members in education events held in Kajiado, Nairobi and Kiambu counties. “If you have not attended any of our 2023-member education days we have one more scheduled for August 4, 2023, at ACK Emmanuel Church, Karuri. Come and get financially empowered. Dimkes SACCO board of directors chairperson Mrs Caroline Gikonyo acknowledged the importance of member education, corporate governance, and technology in creating confidence and sustainability. “We pride ourselves in creating member confidence and value proposition by understanding the needs of our varied membership, developing products that suit their expectations, embracing technological trends like mobile banking in service delivery, staff and member training and encouraging teamwork for effective and efficient service delivery,” said Gikonyo.
AAK SACCO records 17% growth in assets as it launches free membership recruitment drive SACCO Trend 25 T abasamu DT SACCO has emerged as one of the best in the country at the recent gala to mark 101 years of Cooperative life, wresting a host of trophies from regular faces to upset the convention of traditional order. The SACCO won trophies in almost every category listed, becoming the best in credit management, best in capitalization, best in technology, best in risk management, and also the best and the most improved deposit taking SACCO. At the regional level, the SACCO was the overall best Cooperative, best insured SACCO, and recorded the highest return on assets during the Ushirika Day celebrations held at Kwale County. According to the chairperson, prudent management of new products and services, diversification, highly improved technology and compliance with all statutory requirements were the factors behind their success. The former Kwale Teachers SACCO made significant progress despite technological, economic and Tabasamu DT SACCO wins glamorous honours at Ushirika Day 2023 Tabasamu SACCO won trophies in almost every category listed, becoming the best in credit management, best in capitalization, best in technology, best in risk management, and also the best and the most improved deposit taking SACCO By SACCO Trend Reporter Co-operative CS Simon Chelugui and Tabasamu SACCO officials pose for a photo with Ushirika award
26 SACCO Trend environmental constraints and challenges. Tabasamu SACCO is a licensed Front Office Service Accounts (FOSA) operator, which has made strides to comply with all the required regulatory ratios, reporting monthly to the SACCO Society Regulatory Authority (SASRA) to make updates on their status of compliance. The SACCO Chief Executive Officer Geoffrey Sitati said the society was registered in 1977 with a membership of 500 members drawn from primary schools and secondary school teaching fraternity, KNUT employees, Office of the President, Ministry of Education and other educational institutions and retired teachers. Currently, membership stands at over 6,000 and more are expected to be recruited soon by the delegates at the grassroots. The SACCO initially based in Kwale County, Kwale town currently has three branches, within the sub- county level Kinango, Samburu, and Msabweni sub- County. Kwale remains the head office of the SACCO. Tabasamu DT SACCO wins glamorous honours at Ushirika Day 2023 Co-operative CS Simon Chelugui and Tabasamu SACCO officials pose for a pho with Ushirika award The main aim of SACCO remains the provision of quality financial services to members by encouraging increased savings, strong capitalization and prompt credit availability. The society endeavours to meet the growing needs of its members through efficient and effective service delivery
SACCO Trend 27 Tabasamu DT SACCO wins glamorous honours at Ushirika Day 2023 The main aim of SACCO remains the provision of quality financial services to members by encouraging increased savings, strong capitalization and prompt credit availability. The society endeavours to meet the growing needs of its members through efficient and effective service delivery. Tabasamu DT SACCO is recognised across the country, offering its members a wide range of products backed by personalized financial management and follow up plans; thus enabling members to access banking services at reasonable and affordable rates. The SACCO has dedicated relationship managers and partnerships that expose it to networking opportunities. At the same time, it routinely organizes Chama investment summits to educate members on personal financial management and responsible investment strategies for their group initiatives. According to CEO Sitati, the SACCO's principal activity is to promote members ‘prudence by offering them an opportunity to accumulate their savings and create value for their financial growth and empowerment. Tabasamu SACCO continues to scale heights in the cooperative movement, thanks to new technology trends that enable it to embrace alternative banking channels such as mobile banking. These platforms provide better customer experience and efficiency. Tabasamu SACCO members The SACCO share capital grew to KSh 77.6 million in 2022 up from KSh 56.9 million in 2021 representing a 36,3 percent growth. Members' deposits rose from KSh 584.4 million in 2021 to KSh 620.9 million during the same year under review, which is a 6.2% increase. The CEO thanked the Board of Directors and the staff for their unity which enable the SACCO to emerge victorious despite the challenges posed by the COVID-19 pandemic. He promised that the SACCO will strive to employ the highest professional standards in its operations. SACCO Awards – Tabasamu SACCO won the following awards at Ushirika Day 2023; Best in managed SACCO Best capitalized SACCO Best in Deposit management (Deposit Taking SACCO) Best in credit management Best in Risk management – Deposit Taking SACCO. Best in Technology Optimisation – Deposit Taking SACCO. Most improved SACCO.
I n any business, a catchy and distinguished company name is more important than the product it offers as far as branding is concerned. Many research has found that an effective branding starts with a great name. It creates first impression about a business venture to the potential customer as well as distinguishing a commercial entity from thousands of similar ones. Selecting a good business name makes the potential consumers believe in the high quality a business would be providing and a crystal-clear view of what the people can expect in case they are new to the service or products offered. There has been a wave of rebranding in the SACCOs sector across the country following guidelines stipulated in the SACCO Act 2028. According to the Act, all deposit taking SACCOs shall have a core capital of not less than 10 million Kenya Shillings and not less than 5 million Kenya Shillings for the Non-withdrawable Deposit SACCOs, which put much pressure on their shoulders. They needed to act faster to keep up with the pressure that caused most to rebrand. To add to the afore mentioned, it is tough to work in the current global environment where competition is tough due to the rapid technology advancement and swift change in consumer need. It is for this reason that the SACCOs need to rethink their objectives, effectiveness and efficiency in achieving its market-oriented, operational and financial goals. One of the most effective rebranding strategies most SACCOs in Kenya is employing is the change of name strategy. Some deposit and Non deposit taking SACCOs add ‘DT’ connotation in their name to differentiate themselves from other financial service providers like banks, insurance company, housing finance company etc. Likewise, some ditched their local implied names to one that give them a national identity. Traditionally, SACCOs in Kenya used to draw their membership in rural areas which resulted to slow memberships growth. SACCOs have a very a unique character trait from other types of cooperatives drawn from objective and purpose for which they are incorporated, which is to transact Deposit Taking SACCO embrace the “DT” rebranding strategy the business of mobilization of savings, and advancement of credit facilities to their members. The withdrawable deposit Taking SACCO not only provide basic saving and credit products they also provide basic banking services like payment services, ATM services among others. Deposit Taking SACCOs has booth easy to withdraw and non withdrawable deposits where non withdrawable ones are nonrefundable and may be used as collateral for loans. Over the year, SACCOs has gained reputation over other financial institution due to the fact that they offer loans at a very low-interest rates loans. Members have the opportunity to benefit from simple loan terms and conditions. During this year’s Ushirika Day celebration, His Excellency President Uhuru Kenyatta noted that over the previous seven years, the SACCO sector membership has from 3 million in 2014 to 5.5 million in 2021. The loan portfolios increased from Sh228 billion in 2014 to Sh522 billion in 2021, while deposits increased from Sh206 billion to Sh474 billion within the same period. The Act mandated SACCO Societies Regulatory Authority (SASRA)- a semi-autonomous Government Agency under the Ministry of Industrialization and Enterprise Development- to license, regulate and supervise SACCO societies following increased pyramid schemes that resulted to many Kenyans losing their funds in the hands of con businesses imposing to be financial institution. The president noted during the celebration that since the regulations were implemented, the pyramid schemes has immensely reduced. “We now have trust that the SACCOs are adequately controlled and that people’s investments are well cared for,” he added. He also commended the SACCO for the great contribution they have in the growth of the world’s economy. It is important to note that rebranding is an effective way of shunning away negative customer mentality about a company or a product caused by past malpractices. To successfully achieve the goal, the SACCOs therefore needs to refresh the existing brand incorporating a change of values, vision, mission and name. 28 SACCO Trend
SACCO Trend 29 Meru Governor Kawira Mwangaza receiving a dummy gift from the cooperative societies in Meru County During the 101st Ushirika Day held at Kaaga Stadium. I n a remarkable move aimed at bolstering economic growth and supporting cooperative societies, Meru County Governor, Kawira Mwanganza, has announced a significant increase in annual funding for SACCOs. During the vibrant Ushirika Day Celebration held at Kaaga Primary School on July 1, 2023, Governor Mwanganza emphasized the pivotal role of SACCOs in driving the economy and expressed her commitment to empowering these cooperative societies. "I heard that you were being given KSh 2 million every year. As for me, I will give KSh 5 million," declared Governor Mwanganza, demonstrating her unwavering dedication to supporting the growth and development of SACCOs beyond existing funding limitations. Meru County is home to 47 cooperative societies operating under the Meru Coffee Co-operative Union, catering to a Meru county government increases annual funding for SACCOs to KSh 5m for economic growth By SACCO Trend Reporter Governor Mwanganza's decision to increase the funding allocation to SACCOs from KSh 2 million to KSh 5 million is expected to play a vital role in society planning and further enhance their performance in settling cases efficiently
membership of over 80,000 farmers. Governor Mwanganza's decision to increase the funding allocation to SACCOs from KSh 2 million to KSh 5 million is expected to play a vital role in society planning and further enhance their performance in settling cases efficiently. Further, the governor reiterated her personal commitment to the success of SACCOs in Meru County, stating, "I will even use the money set aside for foreign trips to aid the SACCOs." Her dedication underscores the importance of cooperative societies in driving economic growth and her determination to prioritize their advancement. The cooperative community in Meru County has warmly welcomed the governor's announcement, recognizing the significant financial boost it will provide to SACCOs. Increased funding and support With increased funding, these societies can expand their operations, improve service delivery, and better support their members' economic aspirations. SACCOs have long been recognized for their instrumental role in driving economic growth and fostering financial inclusion. They provide affordable credit, promote savings, and facilitate entrepreneurship and business development. Meru county government increases annual funding for SACCOs to KSh 5m for economic growth 30 SACCO Trend Governor Kawira Mwnganza giving her speech during the 101st Ushirika Celebration held at Kaaga Primary School. With a renewed focus on financial empowerment, cooperative societies in Meru County are poised to play an even more significant role in driving economic progress, creating employment opportunities, and uplifting the livelihoods of their members and the wider commun
SACCO Trend 31 Mwanganza's decision to increase their funding reflects the county's commitment to empowering local farmers, businesses, and individuals in their pursuit of economic prosperity. The announcement, made during the Ushirika Day Celebration, exemplifies Meru County's steadfast support for the cooperative movement. Ushirika Day, an annual event that celebrates the contributions of cooperatives to the economy and society, serves as an ideal platform to acknowledge their achievements, promote cooperative principles, and inspire further growth and collaboration. Governor Mwanganza's unwavering commitment to increasing SACCO funding highlights her visionary leadership and dedication to uplifting the cooperative sector. By allocating more resources to SACCOs and actively engaging in their development, Meru County aims to foster an environment that nurtures cooperative growth, innovation, and inclusivity. As Meru County paves the way for SACCOs to thrive, the cooperative community eagerly anticipates the positive impact that increased funding will bring. With a renewed focus on financial empowerment, cooperative societies in Meru County are poised to play an even more significant role in driving economic progress, creating employment opportunities, and uplifting the livelihoods of their members and the wider community. Meru county government increases annual funding for SACCOs to KSh 5m for economic growth Meru Governor Kawira Mwangaza dancing with the entertaining team during Ushirika Day Celebrations on July 1, 2023, at Kaaga Primary School.
UN DT SACCO maintains top Spot among Best Managed Societies in Kenya: We’re proud of this achievement – CEO Nebart Avutswa By Wycliffe Musalia 32 SACCO Trend “ …our turnaround time is the shortest in the country,” opines United Nations (UN) DT SACCO Chief Executive Officer (CEO) Nebert Avutswa. In an exclusive interview with SACCO Trend Magazine, Avutswa expresses the society’s joy after it bagged top spot awards and certificates. Named number two (2) Best Managed SACCO nationally, the CEO says the society just fell short of 0.5 points behind their competitor… challenging the board, management staff and members to aim for the first position in 2024. “Today is a great day for the United Nation DT SACCO. We have managed the second (2nd) Best Managed SACCO in Kenya and by extension in Africa, because SACCOs in Kenya, seven (7) of them are top in Africa. Indeed, we are proud to be the best. “We are looking at the results to get to see where we went wrong to drop a point by 0.5 below our competitor. I believe they did quite a lot of CSR… but we will undo and do even more next year. UN SACCO chairman Mr. Benard Koech receives an award from Cooperatives CS Mr. Simon Chelugui Ushirika Day 2023
SACCO Trend 33 UN DT SACCO maintains top Spot among Best Managed Societies in Kenya: We’re proud of this achievement – CEO Nebart Avutswa UN DT SACCO chair Bernard Koech hold the second Best Managed SACCO trophy won during the 101th Ushirika Day celebrations at KICC Nairobi on July 1, 2023 Avutswa shares the SACCOs achievements after receiving the award and certificate from President William Ruto, who presided over the 101st International Day of Cooperatives, commonly known as Ushirika Day award ceremony at KICC Nairobi on Saturday, July 1, 2023. Technology and member service delivery The CEO attributes the success to the best customer service, member value creation and sustainable frameworks leveraged by the board and the management. He reveals that UN DT SACCO embraces Information and Communication Technology (ICT) and current trends in the sector for efficient and convenience service delivery to its over 6,500 members, both locally and those in diaspora who represents a third of the society’s membership. “What has led us here is basically looking at members’ welfare, engaging members, giving what they want and the efficient service delivery. We have enhanced our technology that we are able to serve our members, not only in the country but also across the globe. “We have about 6,500 members and a third of them are outside the country and we serve them digitally. Members do not have to come to the country to apply for loans, collect cash… we do that digitally,” he says. To ensure members are satisfied and their needs are met within the shortest time possible, UN DT SACCO uses the electronic enterprise resource planning (ERP) in their daily operations. This enables the society to engage members and respond to their needs within the shortest time possible. Named number two (2) Best Managed SACCO nationally, the CEO says the society just fell short of 0.5 points behind their competitor… challenging the board, management staff and members to aim for the first position in 2024
Through these systems and policies, the society helps diaspora members to net in hard foreign currency (diaspora remittances), which are significant for the country’s economy by strengthening foreign reserves. “We have also enhanced our electronic enterprise resource planning (ERP) which is nerve 365… really serving our members extremely well. “The turnaround time is 24 hours… within 24 hours we happen to resolve all members’ issues, particularly relating to loans, transfer of funds, within the country and out of the country,” adds the CEO. UN DT SACCO growth strategy United Nation DT SACCO growth and transformational agenda focuses on SACCO core mandate of savings and credit. The society offers loan facilities ranging from a minimum of KSh 100,000 up to KSh 40 million, processed within the shortest time possible. 34 SACCO Trend UN DT SACCO maintains top Spot among Best Managed Societies in Kenya: We’re proud of this achievement – CEO Nebart Avutswa We are investing a lot in the digital space because that is where to go, and the services offered makes our members happy. We also look forward to coming up with other additional vehicles that can help members engage and also get additional auxiliary services UN DT SACCO chairman supervisory committee, Peter Wangai pose with the trophy during the Ushirika Day celebrations at KICC Nairobi on July 1, 2023 (1) UN DT Saaco CEO Nebart Avutswa (second right) and board members pose for a photo with the trophy during the Ushirika Day celebrations at KICC Nairobi on July 1, 2023
“You know a SACCO is formed on the basis of savings and credit, we do that very well. We do not have any delay in terms of loans, we always ensure that the loans are processed within one hour of application, and it does not matter the amount applied. “What we want to do is to look at the value additions, and basically these are the channels. We are opening a number of channels to ensure that members can interact with us quite easily.” These channels include the QC wallet, where members can do their transactions on phone from the beginning up to the end. The service can be accessed via the USSD code *605*5#, aftera member full registration at the SACCO branch. Quick cash allows members to apply for loans via their phones, get it and continue to repaying online. “We are investing a lot in the digital space because that is where to go, and the services offered makes our members happy. We also look forward to coming up with other additional vehicles that can help members engage and also get additional auxiliary services,” notes Avutswa. To support the government’s agenda on affordable housing and the bottom-up-economic model, the CEO says the SACCO is in talks with relevant authorities. The SACCO offers development loans of up to KSh 40 million in asset and mortgage financing to empower members dreams. “Where we are, we do not have any problem with liquidity… We have enough to give our members loans and push other investment wings… We are able to give long term loans of up to 15 years, we are able to give up to KSh 40 million and that empowers our members,” he reveals. Avutswa said the SACCO will prioritise lowering interest rates on members’ loans to ensure each member gets empowered. He said this will be achieved through increased investment in technology to reduce. “We are going to try and reduce interest on our loans because that is what the minister has always been saying that the highest dividends should not matter but the interest on loans is what really matter. We want to really work on that and ensure that there is efficiency,” he adds. UN DT SACCO draws its membership from UN employees, their spouses, children, and also the international diplomatic missions and the embassies. “We have not opened up common bond, which means our members remains our members. We have not diluted the SACCO, it remains solid and within United Nations… it becomes very strong and the members own it up and feel that they belong to the SACCO. “We are very happy about this results, we are still top 2 in the country and we are extremely happy we will continue to work extremely hard to recapture the top position. Anybody out there who is working for UN, a diplomatic UN DT SACCO chairman Bernard Koech pose for a photo during the 101th Ushirika Day celebrations at KICC Nairobi on July 1, 2023 UN DT SACCO maintains top Spot among Best Managed Societies in Kenya: We’re proud of this achievement – CEO Nebart Avutswa SACCO Trend 35 mission or embassy… the door is open to join the SACCO. We give the highest dividends...” he concludes. UN DT SACCO Ushirika awards 2023 Position 2 – Best Managed SACCO country wide Position 2 – Best Managed SACCO – DT SACCO Position 2 – Best in Deposit Management – DT SACCO Position 2 – Most Efficient – DT SACCO Position 2 – Best in Technology Optimisation country wide Position 2 – Best in Technology Optimisation – DT SACCO Position 3 – Best in Risk Management – DT SACCO
The SACCO has 45 years of experience, offering different financial solutions. The extensive experience gives it an upper hand in the cooperative movement as the entire financial sector in terms of members and asset value. It has over 44,000 members and its total asset value stands at over KSh 12.8 billion. It offered 17% dividend on share capital and 12.2% on members’ deposits for the year ending December 31, 2022. Available loan products from IG SACCO include Akiba, progressive automobile, prime, and normal loans. The SACCO can be reached through email, calling, or online through its official website. It also utilizes social media (Facebook and Twitter) to stay in touch with members and reach potential clients across the country. IG SACCO was registered on August 3, 1977 with 115 members operating in the then Western Province of 36 SACCO Trend Ushirika Day 2023: IG SACCO emerges as the best overall managed SACCO in Kakamega County I G (Invest & Grow) SACCO was among the best performing SACCOs in the recently concluded Ushirika Day Awards held on July 1. The society emerged as the best overall managed SACCO in Kakamega County. The financial institution was also the best in education and training and the best in highest returns on deposits. Ushirika Day is an occasion set aside to celebrate the value of SACCOs in the Kenyan economy, with various societies being awarded for excellent performance. IG SACCO aims to be the leading SACCO and financial services provider in Africa and beyond with a mission to empower customers through the provision of quality products and services for self-sustainability and socioeconomic development. The entity’s operations are based on professionalism, integrity, innovation, and equity to ensure top-notch services. By Marion Achieng Vihiga Governor Hon. Wilber Otichilo signing visitors book at IG SACCO stand during Ushirika Day celebrations held on July 1, 2023 in Vihiga County. IG SACCO Vice chair Francis Omollo gifting Kakamega Governor Hon. Fernades Barasa during Ushirika Day celebrations held on July 1, 2023 held in Kakamega County.
SACCO Trend 37 Kenya. Its head office is located in Kakamega town on Khalisia Road 3, at IG SACCO Plaza. The SACCO has seven branches in neighbouring areas, including Luanda, Mumias, Malava, and Mbale. However, its members are spread across the country, coming from various sectors of the Kenyan economy, including teachers, corporate entities, civil servants, and self-employed individuals. Technology optimisation IG SACCO uses current technology to give members easy access to financial services without having to visit any of its branches. One avenue is through PESA PEPE. One can dial *879# to access the SACCO’s mobile features. The USSD allows members to borrow and repay IG SACCO loans. Whether you are borrowing or repaying an IG SACCO loan, the process is simple. 1. Dial *879# 2. Enter PesaPepe pin 3. Select option 2 for loan • Borrow or • Repay 4. Select borrow • Mobile loan salary • Mobile loan 5. Select option 1 6. Enter amount 7. Enter 98 to accept Ushirika Day 2023: IG SACCO emerges as the best overall managed SACCO in Kakamega County IG SACCO director Mrs Ludwin mudaki awards CEC cooperative Vihiga County during Ushirika Day celebrations held on July 1, 2023. Once you dial the code, you can easily navigate the prompts to find the feature you need. The above procedure is an example of a procedure. Apart from loans, the SACCO also has other products such as holiday savers account, Fosa Akiba, holiday savers account, and Nyota Ndogo account, which can be used to save for a child’s education or to support a member’s further studies. Mobile banking has changed financial operations in Kenya for the better. IG SACCO is up to date with the innovation, as it also supports M-PESA Paybill through the business number 705001. Members can quickly make transactions and save time, promoting digital operations. How to join IG SACCO Becoming a member of IG SACCO is easy. It can be done online through the entity’s website. The information to provide entails one’s personal data (like name, date of birth, occupation, and gender), contact details (phone number, postal address, and email), an ID photo (front and back), KRA Pin, and passport photo. The IG SACCO website is well-organized and easy to navigate, allowing visitors to find the information they need. One can also visit any of IG SACCO’s branches and make an application to become a member. IG SACCO provides innovative products and services to ensure members and clients are satisfied. Product variety ensures each member gets the assistance they need for their financial well-being. IG SACCO aims to be the leading SACCO and financial services provider in Africa and beyond with a mission to empower customers through the provision of quality products and services for self-sustainability and socio-economic development
38 SACCO Trend T he Kenyan economy is currently grappling with significant challanges that have far-reaching effects on various sectors. Among the most impacted are the Savings and Credit Cooperative Societies (SACCOs), which serve as critical pillars of financial stability for their members. It is essential to explore how the prevailing economic conditions affect SACCOs and their members. Firstly, the reduced disposable income due to high taxation means a larger portion of individuals' income goes towards paying taxes. This reduces the amount of money available for other expenses, including savings. As a result, individuals may struggle to set aside a significant portion of their income for saving purposes. With less money available for savings, members find it challenging to accumulate funds for future investments or emergencies, stalling their financial growth. Secondly, the economic hardships faced by individuals and businesses have led to an increase in loan default rates. SACCO members burdened by financial constraints struggle to repay their loans promptly, impacting the liquidity and sustainability of SACCOs. These loan defaults reduce the available resources for providing beneficial services to members, hindering the overall growth of the SACCO and its ability to support its members financially. Lastly, a sluggish economy often deters potential investment opportunities, limiting the avenues through which SACCOs can grow their funds. Diminished investment returns can have adverse effects on the financial growth of SACCO members. With fewer viable investment opportunities, members face challenges in Weathering the Storm: Empowering SACCOs and Members for Financial Growth Amidst Kenya's Current Challenging Economy By Caroline Machira
Weathering the Storm: Empowering SACCOs and Members for Financial Growth Amidst Kenya's Current Challenging Economy diversifying their portfolios and maximizing their returns, thereby stunting their potential for financial growth. Strategies to Empower SACCO Members for Financial Growth To mitigate the impact of the struggling economy and foster financial growth among SACCO members, the following strategies can be implemented: SACCOs should prioritize the provision of comprehensive financial education programs to their members. By equipping members with financial literacy skills, SACCOs can empower them to make informed decisions about budgeting, saving, and investing. Financial education initiatives can include workshops, seminars, and online resources that cover topics such as budgeting, debt management, savings strategies, and investment options. By increasing financial literacy, SACCOs enable their members to navigate economic challenges, make sound financial decisions, and improve their financial wellbeing. In addition, to alleviate the burden on members facing financial difficulties, SACCOs should offer flexible loan repayment options. This could include loan restructuring, rescheduling, or refinancing mechanisms. These flexible options foster a supportive environment for members, ensuring they stay engaged with the SACCO and maintain a positive financial trajectory. Another important strategy that all financial institutions should do is enhancing Risk Management Practices. By conducting thorough risk assessments, implementing robust internal controls, and establishing contingency plans, SACCOs can safeguard their financial stability and protect the interests of their members. This includes closely monitoring credit risk, market risk, liquidity risk, and operational risk. Proactive risk management measures mitigate potential losses, ensure prudent decision-making, and contribute to the overall financial growth and sustainability of SACCOs. Along with the aforementioned, the SACCOs should focus on strengthening Governance and Transparency. Maintaining strong governance and transparency practices is essential for SACCOs. By adopting robust internal control mechanisms, promoting transparency in financial reporting, and conducting regular audits, SACCOs build trust with their members and stakeholders. Strong governance practices ensure accountability, mitigate the risk of mismanagement, and create an environment of confidence and stability. This, in turn, attracts more members and potential investors, enhancing the financial growth and reputation of SACCOs. Furthermore, SACCOs should actively explore International Networking. SACCOs can explore the following networking methods to access new markets, investment avenues, and knowledge-sharing platforms: 1. Cooperative Federations: SACCOs can connect with national and international cooperative federations or associations. These platforms provide opportunities for collaboration, knowledge exchange, and access to resources that can enhance SACCOs' operations and financial growth. Examples include the International Cooperative Alliance (ICA) and regional cooperative networks. 2. International Conferences and Workshops: Participating in international conferences, seminars, and workshops focused on cooperative finance and development offers opportunities for networking with experts, sharing best practices, and gaining insights into global trends. These events facilitate valuable connections and foster cooperative development. 3. Bilateral Partnerships: SACCOs can establish bilateral partnerships with cooperative organizations or financial institutions from other countries. Through these partnerships, SACCOs can access funding opportunities, technical assistance, and cooperative development programs. Collaborative initiatives can include joint investment ventures, knowledge-sharing programs, and capacity-building projects. 4. Online Collaboration Platforms Engaging with online collaboration platforms and forums specific to cooperative finance and development enables SACCOs to connect with professionals and experts from around the world. These platforms facilitate discussions, knowledge sharing, and collaborative initiatives, fostering a global cooperative network. SACCO Trend 39
County government of Trans Nzoia commits to revitalize cooperatives By Philip Bwayo T he county government of Trans Nzoia has committed to revitalising the cooperative movement in the region, with a focus on rolling out development initiatives and promoting inclusive leadership structures. This was highlighted during the commemoration of Ushirika day celebrations in the region at the Kitale Museum hall that was presided over by the county executive committee member (CEC) in charge of Agriculture, Livestock and Cooperatives Phanice Khatundi, Khatundi outlined the government's vision to empower cooperative societies and urged officials to prioritize financial management practices, inclusivity, and proactive engagement to benefit from various programs and initiatives. "We are determined to strengthen and revamp the cooperative movement in Trans Nzoia County. Cooperatives have the potential to drive economic growth and empower our communities. “Through strategic development initiatives, we aim to unlock the full potential of cooperatives and create a We are determined to strengthen and revamp the cooperative movement in Trans Nzoia County. Cooperatives have the potential to drive economic growth and empower our communities Ushirika Day 2023 40 SACCO Trend The Trans Nzoia County executive committee member in charge of Agriculture, Livestock and Cooperatives Phanice Khatundi dances alongside members of cooperative movements during Ushirika Day celebrations on July 1, 2023
SACCO Trend 41 County government of Trans Nzoia commits to revitalize cooperatives conducive environment for their success,” said the CEC. She emphasized the county government's dedication to the cooperative sector, urging officials of cooperative societies to observe prudent financial management practices, and emphasizing the need for transparency and accountability. Financial management and accountability "Sound financial management is the cornerstone of a successful cooperative. I challenge all officials to prioritize financial prudence, maintain accurate records, and conduct regular audits. By doing so, cooperatives can gain the trust and confidence of their members, partners, and stakeholders," she stated. Highlighting the importance of inclusion, Khatundi called for diversity in leadership structures, urging cooperative societies to embrace women and youth in decisionmaking roles saying their unique perspectives and insights would contribute to their growth and sustainability. "Inclusivity is key to ensuring balanced and effective governance in cooperatives. We encourage cooperative societies to provide equal opportunities for women and youth to participate in leadership positions," she asserted. Furthermore, Khatundi directed that cooperatives that fail to comply with regulations will miss out on government initiatives. "To access government support, it is vital for cooperative societies to abide by the established regulations. Noncompliance can lead to missed opportunities for funding, capacity-building programs, and other benefits. We urge all cooperatives to align their operations with the guidelines set forth by the relevant authorities," she warned. Khatundi also highlighted the importance of proactive engagement among the cooperative societies to benefit from various programs, including donor funding. “Cooperative officials should actively seek information and opportunities to enhance their societies' growth. By being proactive and well-informed, cooperatives can tap into a range of programs, including donor funding, that can boost their operations and empower their members," she encouraged. County government funding SACCOs Khatundi challenged cooperative societies to apply for the Nawiri economic empowerment loan funding, introduced by the county administration to boost small and medium businesses enterprises (SMEs). The loan scheme offers favourable interest rates of 3% to support businesses and stimulates economic growth. "We encourage cooperative societies to take advantage of the Nawiri loan funding opportunity. This lowinterest loan scheme aims to uplift businesses and create Trans Nzoia County Governor George Natembeya speaking at a past event at his office
a thriving economic ecosystem within the county," she announced. County cooperatives officers Hosea Serem urged officials of Cooperative societies in the county to adhere to government regulations, strengthen data protection policies, and enhance cyber security measures to safeguard their operations against potential hacking threats. The county's cooperative sector has shown significant growth over the years, but challenges in regulatory compliance and cyber security are posing concerns for both officials and stakeholders. "Cooperative societies play a crucial role in our county’s economy by empowering farmers, traders, and various community members. To ensure sustainable growth and avoid legal complications, these cooperatives must align their operations with the government’s guidelines,” said Serem. With a significant number of cooperative societies operating across various sectors such as agriculture, retail, and finance, there have been growing concerns about adherence to government regulations. Many of these societies require support and guidance to navigate complex legal requirements. "We urge all upcoming cooperative societies in Trans Nzoia to register with relevant our department. We will guide them on how to maintain proper financial records and conduct regular audits,” said Henry Maina, cooperatives officer at the county. Maina added: “By complying with the regulations, they not only safeguard their interests but also contribute to the overall growth and stability of the cooperative movement in the county,’ Technology and cyber security Furthermore, officials stressed the need for cooperatives to prioritize data protection and cyber security, saying as technology continues to play a significant role in the modern business landscape, cooperative societies are increasingly reliant on digital platforms for their daily operations. Information Technology (IT) experts during the forum advised the county's cooperative societies, highlighting the potential risks saying cyber security is no longer an option but a necessity for any organisation. "With the rise in cybercrime, cooperative societies are at risk of losing sensitive data, and financial information which may cause disruptions in their operations. Implementing robust data protection policies and cyber security measures is critical" said Daniel Kitua, the chairman of the Trans Counties SACCO. The challenges faced by officials of the cooperative societies are multi-faceted. Apart from the issues of regulatory compliance and cyber security, mismanagement and financial irregularities have been a recurring concern. Officials of the cooperative societies said inadequate financial reporting and internal control weaknesses have been observed in several societies. This not only affects County government of Trans Nzoia commits to revitalize cooperatives The Trans Nzoia County executive committee member in charge of Agriculture, Livestock and Cooperatives Phanice Khatundi fetes officials of the Trans Nzoia Women's Housing Cooperative during Ushirika Day celebrations 42 SACCO Trend
their credibility but also poses risks to the investments made by members. Governor George Natembeya was nominated as the patron of the cooperative movement in the region owing to his commitment to community development while Khatundi was proposed as the deputy patron. The calls for government auditors and the formation of a cooperative union reflect the cooperative societies' collective efforts to streamline their operations, reduce costs, and have a unified voice for their members. By addressing these needs, the county government can strengthen the cooperative sector, enhance transparency, and foster a favourable environment for cooperative societies to thrive. SACCOs feted in Trans Nzoia County Among the cooperatives that were feted during the occasion was the Kiminini Farmers SACCO which was hailed as the fastest-growing society in the region. Since its registration in 2020, the SACCO has recorded an impressive savings amount of sh 1.5 million, a testament to its members' commitment and financial discipline. The Trans Nzoia County Chicken Farmers Union received the prestigious Promoters Award, recognizing their commendable efforts in promoting the poultry industry and empowering chicken farmers. This recognition highlights the union's dedication to uplifting the livelihoods of its members and driving sustainable growth in the poultry sector. Trans National Times Deposit Taking (TNT DT) SACCO under the chairmanship of Evans Sichangi was honoured as the Best Employer, acknowledging their exemplary practices in creating a conducive work environment and prioritizing the welfare of their employees. The SACCO's commitment to providing a supportive workplace culture has earned them the respect and admiration of their staff members. In terms of compliance, Trans County DT SACCO emerged as a role model, demonstrating exceptional adherence to regulations in 2022. Their commitment to maintaining compliance not only ensures transparency within their operations but also contributes to the overall integrity of the cooperative movement in Trans Nzoia County. Mbegu SACCO Society Ltd, an employer-based SACCO at the Kenya Seed Company, was recognized for its dedication to serving the needs of its members and fostering financial inclusivity. The SACCO's focus on catering to the financial well-being of employees has earned them praise for their efforts in enhancing their members' financial literacy and stability. Muroki Coffee Society under the chairmanship of Joseph Natembea was lauded as the most compliant coffee society, reflecting its commitment to quality and adherence to industry standards. Their dedication to producing high-quality coffee beans while complying with regulations positions them as a leading player in the coffee sector. Cherang’any Farmers SACCO was acknowledged for having the highest number of compliant farmers, a testament to their members' commitment to observing regulations and best practices. Their diligence and responsible approach to cooperative membership are key factors in their success. Meo SACCO was recognized as the best-organized society in 2022, highlighting their efficient and well-structured operations. The SACCO’s meticulous attention to detail and organizational excellence serve as a model for other cooperatives seeking to enhance their management practices. Marinda Cooperative Society was applauded for its impressive growth rate, emerging as one of the fastgrowing societies in Trans Nzoia County. The society's ability to attract and retain members, as well as expand its influence in its respective sector, demonstrates its commitment to sustainable development. The Trans-West SACCO, a non-withdrawal SACCO, was acknowledged for its unique approach to savings and investment. By encouraging members to refrain from withdrawing funds prematurely, the SACCO promotes long-term financial planning and stability. Mubere Dairy SACCO Society, specializing in dairy farming, was recognized for being a compliant SACCO within the dairy sector. Their dedication to following industry regulations ensures the quality and safety of dairy products, instilling confidence in consumers and stakeholders. Boresha SACCO's exceptional marketing efforts earned them the accolade of the best marketing cooperative. Their innovative and effective marketing strategies have contributed to increased brand visibility and enhanced member engagement. Additionally, Trans Nzoia County celebrated the gains made by Trans Nzoia Women's Housing Cooperative which is a fast in the real estate business in Kitale town. The International Cooperative Day (Ushirika Day in Kenya) is an annual celebration of the cooperative movement observed on the first Saturday in July since 1923 by the International Cooperative Alliance. County government of Trans Nzoia commits to revitalize cooperatives SACCO Trend 43
Owning a house in Kenya on a monthly salary of KSh 25,000 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 home ownership 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 By SACCO Trend Reporter Achieving the dream Real estate 44 SACCO Trend
SACCO Trend 45 Owning a house in Kenya on a monthly salary of KSh 25,000 SACCOs and Housing Real estate you to make small monthly payments towards owning your own house. Special Financing Programs Look for special financing programs designed to assist low-income individuals in achieving home ownership. These programs provide lowinterest loans with longer repayment periods, making it easier to manage the monthly installments. 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 home ownership 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 installments, 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!
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. 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. 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. By SACCO Trend Reporter SACCOs and Housing The optimal savings vehicle for homeownership in Kenya Real estate 46 SACCO Trend