Equality is the theme of the 2015 International Day of Co-operatives!!

In our globalizing world inequality is on the rise

The global income gap has continued to widen over the past years. A recent Credit Suisse report estimates that the top 1 percent of the globe’s population possesses nearly half of the world’s wealth, whereas the bottom half of world’s population holds less than 1 percent of its riches.

But inequality comes in a variety of shades. It can apply to ethnic, regional or locational characteristics, or personal features such as gender or age.

Preceding equal voting rights for men and women, gender equality has been a fundamental right in co-operatives, since their inception in the first half of the 19th century. Co-operatives’ typically flat hierarchy encourages a culture of teamwork, where talent is rewarded rather than competitiveness.

How inequality affects us all

Inequality matters because it influences our perceptions about self-worth and justice. All human beings are entitled to the same respect and dignity. Inequality however, has also serious negative socio-economic and security consequences.

  • Bad for the economy – Inequality also slows GDP growth. It hinders human capital accumulation, hurts educational outcomes and long-term economic prospects for those on the lower end of the income ladder.
  • Bad for our infrastructure – When excluded, people cannot participate in the institutions that build a society. Examples of this are medical capacity building, industry requiring schooled craftsmen, or credit and insurance.
  • Bad for our safety – The social impacts of inequality include unemployment, violence, crime, humiliation, and deterioration of human capital and social exclusion. Inequality negatively affects democratic participation, it fosters corruption and civil conflict.
  • Bad for democracy – Politically, inequality erodes the fairness of institutions. Inequality exacerbates the problem of holding governments accountable. Where social institutions are already fragile, inequality further discourages the civic and social life that underpins effective collective decision-making which is necessary for the functioning of healthy societies.

How co-operatives help

  • All owners – By widening ownership, co-operatives are a proven force for economic and social inclusion. If the co-operative model continues to grow, inequality will be reduced.
  • Open to all – Because a coop is open to all, anybody, man or woman, old or young can enter.
  • Decision power not dependent on wealth – Because a coop has 1 vote regardless of the capital, all have equal decision power.
  • Equality means also equal access to goods – The UN have recognized as a critical strategy, at the national level, that of ensuring universal access to good-quality, basic goods and services, the very purpose of a co-operative.

The United Nations state that it is important to ensure that provision actually reaches the sections of the population that are typically excluded. Co-ops focus on meeting the needs of their members rather than financial returns alone.

The co-operative movement, presents a unique combination of global reach and people based business conduct. We can play an important role in poverty reduction. Co-operatives help to reduce inequality by empowering people and by offering them a dignified and sustainable way to make a living.

Read more here

SCHEDULE OF LICENSED DEPOSIT-TAKING SACCO SOCIETIES FOR PERIOD ENDING DECEMBER 2014

# NAME OF SOCIETY POSTAL ADDRESS
1. 2NK SACCO SOCIETY LTD P.O BOX 12196-10109, NYERI
2. AFYA SACCO SOCIETY LTD P.O BOX 11607-00400, NAIROBI
3. AGRO-CHEM SACCO SOCIETY LTD P.O BOX 94-40107, MUHORONI
4. AINABKOI FARMERS SACCO SOCIETY LTD P.O BOX 120-30101, AINABKOI
5. AIRPORT SACCO SOCIETY LTD P.O BOX 19001-00501, NAIROBI
6. ALL CHURCHES SACCO SOCIETY LTD P.O BOX 2036-0100, THIKA
7. ARDHI SACCO SOCIETY LTD P.O BOX 28782-00200, NAIROBI
8. ASILI SACCO SOCIETY LTD P.O BOX 49064-00100, NAIROBI
9. BANANA HILL SACCO SOCIETY LTD P.O BOX 333-00219, KARURI
10. BANDARI SACCO SOCIETY LTD P.O BOX 95011-80104,MOMBASA
11. BARAKA SACCO SOCIETY LTD P.O BOX 1548-10101, KARATINA
12. BARATON UNIVERSITY SACCO SOCIETY LTD P.O BOX 2500-30100, ELDORET.
13. BIASHARA SACCO SOCIETY LTD P.O BOX 1895-10100, NYERI.
14. BINGWA SACCO SOCIETY LTD P.O BOX 434-10300, KERUGOYA.
15. BORESHA SACCO SOCIETY LTD P.O BOX 80-20103, ELDAMA RAVINE
16. BUSIA TESO TEACHERS SACCO SOCIETY LTD P.O BOX 448-50400, BUSIA.
17. CAPITAL SACCO SOCIETY LTD P.O BOX 1479-60200, MERU
18. CENTENARY SACCO SOCIETY LTD P.O BOX 1207-60200, MERU
19. CHAI SACCO SOCIETY LTD P.O BOX 278-00200, NAIROBI.
20. CHUNA SACCO SOCIETY LTD P.O BOX 30197-00100, NAIROBI.
21. COMOCO SACCO SOCIETY LTD P.O BOX 30135-00100, NAIROBI.
22. COSMOPOLITAN SACCO SOCIETY  LTD P.O BOX 1931-20100, NAKURU.
23. COUNTY SACCO SOCIETY LTD P.O BOX 21-60103, RUNYENJES.
24. DAIMA SACCO SOCIETY LTD P.O BOX 2032-60100, EMBU
25. DHABITI SACCO SOCIETY LTD P.O BOX 353-60600, MAUA.
26. DIMKES SACCO SOCIETY LTD P.O BOX 886-00900, KIAMBU.
27. DUMISHA SACCO SOCIETY LTD P.O BOX 84-200600, MARALAL.
28. ECO-PILLAR  SACCO SOCIETY LTD (formerly Kapenguria Teachers Sacco) P.O BOX 48-30600, KAPENGURIA.
29. EGERTON UNIVERSITY SACCO SOCIETY LTD P.O BOX 178-20115, EGERTON.
30. ELGON TEACHERS SACCO SOCIETY LTD P.O BOX 27-50203, KAPSOKWONY.
31. ELIMU SACCO SOCIETY LTD P.O BOX 10073-00100, NAIROBI.
32. ENEA SACCO SOCIETY LTD P.O BOX 1836-10101, KARATINA.
33. FARIJI SACCO SOCIETY LTD   P.O BOX 589-00216, GITHUNGURI.
34. FORTUNE SACCO SOCIETY LTD P.O BOX 559-10300, KERUGOYA.
35. FUNDILIMA SACCO SOCIETY LTD P.O BOX 62000-00200, NAIROBI.
36. GASTAMECO SACCO SOCIETY LTD P.O BOX 189-60101, MANYATTA.
37. GITHUNGURI DAIRY & COMMUNITY  SACCO SOCIETY LTD P.O BOX 896-00216, GITHUNGURI.
38. GOODFAITH SACCO SOCIETY LTD P.O BOX 224-00222, UPLANDS.
39. GREEN HILLS COFFEE GROWERS SACCO SOCIETY LTD (formerly Chebosobon Sacco) P.O BOX 59-20209, FORT TERNAN
40. GUSII MWALIMU SACCO SOCIETY LTD P.O BOX 1335-40200, KISII.
41. HARAMBEE  SACCO SOCIETY LTD P.O BOX 47815-00100, NAIROBI.
42. HAZINA SACCO SOCIETY LTD P.O BOX 59877-00200, NAIROBI.
43. ILKISONKO RURAL FARMERS SACCO SOCIETY LTD P.O BOX 91-00209, LOITOKITOK
44. IMARIKA SACCO SOCIETY LTD P.O BOX 712-80108, KILIFI.
45. IMARISHA SACCO SOCIETY LTD P.O BOX 682-20200, KERICHO.
46. IMENTI SACCO SOCIETY LTD P.O BOX 3192-60200, MERU.
47. ISIOLO TEACHERS SACCO SOCIETY LTD P.O BOX 105 – 60300, ISIOLO
48. JACARANDA SACCO SOCIETY LTD P.O BOX 4-00232, RUIRU.
49. JAMII SACCO SOCIETY LTD P.O BOX 57929-00200, NAIROBI.
50. JIJENGE SACCO SOCIETY LTD P.O BOX 6222-01000, THIKA.
51. JITEGEMEE SACCO SOCIETY LTD P.O BOX 86937-80100, MOMBASA
52. JUMUIKA SACCO (Formerly Chemelil Sacco Society Ltd ) P.O BOX 14-40112, AWASI.
53. KAIMOSI SACCO SOCIETY LTD P.O BOX 153-50305, SIRWA.
54. KAKAMEGA TEACHERS SACCO SOCIETY LTD P.O BOX 1150-50100, KAKAMEGA.
55. KATHERA RURAL SACCO SOCIETY LTD P.O BOX 251-60202, NKUBU.
56. KEIYO TEACHERS SACCO SOCIETY LTD P.O BOX 512-30700, ITEN.
57. KENPIPE SACCO SOCIETY LTD P.O BOX 314-00507, NAIROBI.
58. KENVERSITY SACCO SOCIETY LTD P.O BOX 10263-00100, NAIROBI.
59. KENYA ACHIEVAS SACCO SOCIETY LTD P.O BOX 3080-40200, KISII
60. KENYA BANKERS SACCO SOCIETY LTD P.O BOX 73236-00200, NAIROBI.
61. KENYA CANNERS SACCO SOCIETY LTD P.O BOX 1124-01000, THIKA.
62. KENYA HIGHLANDS SACCO SOCIETY LTD P.O BOX 2085-002000, KERICHO.
63. KENYA MIDLAND SACCO SOCIETY LTD P.O BOX 287-20400, BOMET.
64. KENYA POLICE SACCO SOCIETY LTD P.O BOX 51042-00200, NAIROBI
65. KIAMBAA DAIRY RURAL SACCO SOCIETY LTD P.O BOX 669-00219, KARURI.
66. KIMBILIO DAIMA SACCO SOCIETY LTD (formerly Chepsol Tea Sacco) P.O BOX 81-20225, KIMULOT
67. KINGDOM SACCO SOCIETY LTD P.O BOX 8017-00300, NAIROBI.
68. KIPSIGIS EDIS SACCO SOCIETY LTD P.O BOX 228-20400, BOMET.
69. KITE SACCO SOCIETY LTD P.O BOX 2073-40100, KISUMU.
70. KITUI TEACHERS SACCO SOCIETY LTD P.O BOX 254-90200, KITUI.
71. KMFRI SACCO SOCIETY LTD P.O BOX 80862 80100, MOMBASA.
72. KOLENGE TEA SACCO SOCIETY LTD P.O BOX 291-30301, NANDI HILLS
73. KONOIN SACCO SOCIETY LTD P.O BOX 83-20403, MOGOGOSIEK.
74. KORU SACCO SOCIETY LTD P.O BOX Private Bag- 40104, KORU.
75. K-UNITY SACCO SOCIETY LTD P.O BOX 268-00900, KIAMBU.
76. KWALE TEACHERS SACCO SOCIETY LTD P.O BOX 123-80403, KWALE.
77. LAMU TEACHERS SACCO SOCIETY LTD P.O BOX 110-80100, LAMU.
78. LENGO  SACCO SOCIETY LTD P.O BOX 371-80200, MALINDI
79. MAGADI SACCO SOCIETY LTD P.O BOX 13-00205, MAGADI.
80. MAGEREZA SACCO SOCIETY LTD P.O BOX 53131-00200, NAIROBI.
81. MAISHA BORA SACCO SOCIETY LTD P.O BOX 30062-00100, NAIROBI.
82. MAONO DAIMA SACCO SOCIETY LTD (formerly Mulot FSA Sacco) P.O BOX 41-20424, BOMET.
83. MARAKWET  TEACHERS SACCO SOCIETY LTD P.O BOX 118-30705, KAPSOWAR.
84. MARSABIT TEACHERS SACCO SOCIETY LTD P.O BOX 90-60500, MARSABIT.
85. KWETU SACCO  (Formerly Masaku Teachers Sacco P.O BOX 818-90100, MACHAKOS.
86. MENTOR SACCO SOC

IETY LTD

P.O BOX 789-10200, MURANG’A.
87. METROPOLITAN SACCO SOCIETY LTD P.O BOX 871-00900, KIAMBU.
88. MILIKI SACCO SOCIETY LTD (formerly Orthodox Sacco) P.O BOX 43582-00100, NAIROBI.
89. MMH SACCO SOCIETY LTD P.O BOX 469-60600, MAUA.
90. MOI UNIVERSITY SACCO SOCIETY LTD P.O BOX 23-30107, MOI UNIVERSITY.
91. MOMBASA PORT SACCO SOCIETY LTD P.O BOX 95372-80104, MOMBASA.
92. MOMBASA TEACHERS SACCO SOCIETY LTD P.O BOX 86515-80100, MOMBASA.
93. MUDETE FACTORY TEA GROWERS SACCO SOCIETY LTD P.O BOX 221-50104, KAKAMEGA.
94. MUHIGIA SACCO SOCIETY LTD P.O BOX 83-10300, KERUGOYA.
95. MUKI SACCO SOCIETY LTD P.O BOX 398, NORTH KINANGOP.
96. MURATA  SACCO SOCIETY LTD P.O BOX 816-10200, MURANG’A
97. MWALIMU NATIONAL  SACCO SOCIETY LTD P.O BOX 62641-00200, NAIROBI.
98. MWEA RICE FARMERS SACCO SOCIETY LTD P.O BOX 272-10303. WANGURU.
99. MWIETHERI SACCO SOCIETY LTD P.O BOX 2445-60100, EMBU.
100. MWINGI MWALIMU SACCO SOCIETY LTD P.O BOX 489-90400, MWINGI.
101. MWITO SACCO SOCIETY LTD P.O BOX 56763-00200, NAIROBI
102. NACICO SACCO SOCIETY LTD P.O BOX 34525-00100, NAIROBI.
103. NAFAKA SACCO SOCIETY LTD P.O BOX 30586-00100, NAIROBI.
104. NAKU SACCO SOCIETY LTD P.O BOX 78355-00507, NAIROBI.
105. NANDI FARMERS SACCO SOCIETY LTD P.O BOX 333-30301, NANDI HILLS.
106. NANDI HEKIMA SACCO SOCIETY LTD P.O BOX 211-30300, KAPSABET.
107. NANDI TEACHERS SACCO SOCIETY LTD P.O BOX 547-30300, KAPSABET.
108. NECCO SACCO (Formerly Nanyuki Equator Sacco Society) P.O BOX 1098-10400, NANYUKI.
109. NAROK TEACHERS SACCO SOCIETY LTD P.O BOX 158-20500, NAROK.
110. NASSEFU SACCO SOCIETY LTD P.O BOX 43338-00100, NAIROBI.
111. NATION SACCO SOCIET Y LTD P.O BOX 22022-00400, NAIROBI.
112. NAWIRI SACCO SOCIETY LTD P.O BOX 400-60100, EMBU.
113. NDEGE CHAI SACCO SOCIETY LTD P.O BOX 857-20200, KERICHO.
114. NDOSHA SACCO SOCIETY LTD P.O BOX 532-60401, CHOGORIA- MAARA
115. NEST SACCO SOCIETY LTD P.O BOX 14551-00800, NAIROBI.
116. NG’ARISHA SACCO SOCIETY LTD  (formerly Bungoma Teachers Sacco) P.O BOX 1199-50200, BUNGOMA.
117. NITUNZE  SACCO SOCIETY P.O BOX 295-50102, MUMIAS.
118. NRS SACCO SOCIETY LTD P.O BOX 575-00902, KIKUYU.
119. NTIMINYAKIRU SACCO SOIETY LTD P.O BOX 3213-60200, MERU.
120. NUFAIKA SACCO SOCIETY LTD P.O BOX 735-10300, KERUGOYA.
121. NYAHURURU  UMOJA SACCO SOCIETY LTD P.O BOX 2183-20300, NYAHURURU.
122. NYALA  VISION SACCO SOCIETY LTD P.O BOX 27-20306, NDARAGWA.
123. NYAMBENE ARIMI SACCO SOCIETY LTD P.O BOX 493-60600, MAUA.
124. NYAMIRA TEA FARMERS SACCO SOCIETY LTD P.O BOX 633-40500, NYAMIRA.
125. NYERI TEACHERS SACCO SOCIETY LTD P.O BOX 1939-10100, NYERI.
126. OGEMBO TEA GROWERS  SACCO SOCIETY LTD P.O BOX 88, KENYENYA.
127. ORIENT SACCO SOCIETY LTD P.O BOX 1842-01000, THIKA.
128. PATNAS  SACCO SOCIETY LTD (formerly Bureti Sacco ) P.O BOX 601-20210, LITEN
129. PUAN SACCO SOCIETY LTD P.O BOX 404-20500, NAROK.
130. RACHUONYO TEACHERS SACCO SOCIETY LTD P.O BOX 14-4022, KOSELE.
131. SAFARICOM SACCO SOCIETY LTD P.O BOX 66827-00800, NAIROBI.
132. SHERIA SACCO SOCIETY LTD P.O BOX 34390-00100, NAIROBI.
133. SIMBA CHAI SACCO SOCIETY LTD P.O BOX 977-20200, KERICHO.
134. SIRAJI SACCO SOCIETY LTD P.O BOX PRIVATE BAG, TIMAU.
135. SKYLINE SACCO SOCIETY LTD (formerly Baringo Farmers Sacco) P.O BOX 660-20103, ELDAMA RAVINE.
136. SMART CHAMPIONS SACCO SOCIETY LTD (formerly Githongo Majani Sacco) P.O BOX 64-60205, GITHONGO.
137. SOLUTION SACCO SOCIETY LTD P.O BOX 1694-60200, MERU.
138. SOTICO SACCO SOCIETY LTD P.O BOX 959-20406, SOTIK.
139. SOUTHERN STAR  SACCO SOCIETY LTD (Formerly Meru South Sacco) P.O BOX 514-60400, CHUKA.
140. STAKE KENYA SACCO SOCIETY LTD.(formerly Kuria Teachers Sacco) P.O BOX 208-40413, KEHANCHA.
141. STEGRO  SACCO SOCIETY LTD (formerly Sot Tea Growers Sacco) P.O BOX 251-20400, BOMET.
142. STIMA SACCO SOCIETY LTD P.O BOX 75629-00100, NAIROBI.
143. SUBA TEACHERS SACCO SOCIETY LTD P.O BOX 237-40305, MBITA.
144. SUKARI SACCO SOCIETY LTD. P.O BOX 841-50102, MUMIAS.
145. SUPA SACCO SOCIETY LTD (Formerly Samburu Traders Sacco) P.O BOX 271-20600, MARALAL.
146. TAI SACCO SOCIETY LTD P.O BOX 718-00216, GITHUNGURI.
147. TAIFA SACCO SOCIETY LTD P.O BOX 1649-10100, NYERI.
148. TAITA TAVETA TEACHERS  SACCO SOCIETY LTD P.O BOX 1186-80304, WUNDANYI.
149. TARAJI SACCO SOCIETY LTD P.O BOX 605-40600, SIAYA.
150. TELEPOST SACCO SOCIETY LTD P.O BOX 49557-00100, NAIROBI.
151. TEMBO SACCO SOCIETTY LTD P.O BOX 91-00618, RUARAKA.
152. TENHOS SACCO SOCIETY LTD P.O BOX 391-20400, BOMET.
153. TESCOM SACCO SOCIETY LTD P.O BOX 626-10300, KERUGOYA.
154. THAMANI SACCO SOCIETY LTD P.O BOX 467-60400, CHUKA.
155. TIMES- U SACCO SOCIETY LTD P.O BOX 310-60202, NKUBU.
156. TOWER SACCO SOCIETY LTD P.O BOX 259-20303, OL’KALOU.
157. TRANS NATION  SACCO SOCIETY LTD (formerly  Tharaka Nithi  Teachers) P.O BOX 15-60400, CHUKA.
158. TRANSCOM SACCO SOCIETY LTD P.O BOX 19579-00202, NAIROBI.
159. TRANS-COUNTIES SACCO SOCIETY LTD P.O BOX 2965-30200, KITALE.
160. TRANS-NATIONAL TIMES SACCO SOCIETY LTD (formerly Trans-Nzoia Teachers Sacco) P. O BOX 2274-30200, KITALE.
161. UCHONGAJI SACCO SOCIETY LTD P.O BOX 92503-80102, MOMBASA.
162. UFANISI SACCO SOCIETY LTD P.O  BOX 2973-00200, NAIROBI.
163. UFUNDI SACCO SOCIETY LTD P.O BOX 11705-001400, NAIROBI.
164. UKRISTO NA UFANISI  WA ANGLICANA SACCO  SOCIETY LTD P.O BOX 872-00605, NAIROBI.
165. UKULIMA SACCO SOCIETY LTD P.O BOX 44071-00100, NAIROBI.
166. UNAITAS SACCO SOCIETY LTD P.O BOX 1145-10200, MURANG’A.
167. UNI-COUNTY SACCO SOCIETY LTD (formerly Tupendane Sacco) P.O BOX 10132-20100, NAKURU.
168. UNISON  SACCO SOCIETY LTD (formerly Laikipia Teachers Sacco) P.O BOX 414-10400, NANYUKI.
169. UNITED NATION SACCO SOCIETY LTD P.O BOX 30552-00100, NAIROBI.
170. UNIVERSAL TRADERS SACCO SOCIETY LTD P.O BOX 2119-90100, MACHAKOS.
171. VIHIGA COUNTY FARMERS SACCO SOCIETY LTD P.O BOX 309-50317, CHAVAKALI.
172. VISION AFRICA SACCO SOCIETY LTD P.O BOX 18263-20100, NAKURU.
173. VISION POINT SACCO SOCIETY LTD (formerly Borabu Farmers Sacco) P.O BOX 42-40502, NYANSIONGO.
174. WAKENYA PAMOJA SACCO SOCIETY LTD P.O BOX 829-40200, KISII.
175.  WAKULIMA  COMMERCIAL SACCO SOCIETY LTD P.O BOX 232-10103, NYERI.
176. WANA-ANGA SACCO SOCIETY LTD P.O BOX 34680-00501, NAIROBI.
177. WANANCHI SACCO SOCIETY LTD P.O BOX 910-10106, OTHAYA.
178. WANANDEGE SACCO SOCIETY LTD P.O BOX 19074-00501, NAIROBI.
179. WARENG TEACHERS SACCO SOCIETY LTD P.O BOX 3466-30100, ELDORET.
180. WASHA SACCO SOCIETY LTD P.O BOX 83256-80100, MOMBASA.
181. WAUMINI SACCO SOCIETY LTD P.O BOX 66121-00800, NAIROBI.
182. WEVARSITY SACCO SOCIETY LTD P.O BOX 873-50100, KAKAMEGA.
183. WINAS SACCO SOCIETY LTD P.O BOX 696-60100, EMBU.
184. YETU SACCO SOCIETY LTD P.O BOX 511-60202, NKUBU.

Member Participation

The AGM being the supreme organ of the Sacco members should be facilitated by the board to fully participate in the AGM and other meetings of the Sacco including timely receipt of notice and documentation of the meeting including annual financial statements, corporate governance reports and other matters of importance to the members.
Prior to the AGM members should be encouraged to enhance their contributions to deliberations at the AGM through vigorous engagement at Zonal or branch meetings as well as Delegates pre-AGM briefings and conferences to ensure alignment of views and positions.
At the AGM, members should be given ample opportunity to raise any concerns they may have regarding the performance of the Sacco, as well as its governance, and to receive satisfactory answers to their enquiries. Voting at the AGM should be conducted in accordance with by-laws and the minutes of the AGM should be circulated to members as soon thereafter as possible.
Members should also be facilitated by management with easy access to information relating to the Sacco including internal regulations, registers, minutes of the general meetings, supervisory committee meetings and all regulations in force.
Other rights of participation by members include:
(a) A right to share in the surplus of the society by way of dividend or bonus
(b) Enjoyment of all the services provided by the Sacco including savings and credit facilities
(c) The right to submit projects or initiatives on improvement of the Sacco services for consideration by the Board.
(d) The opportunity to appoint nominees

PREVENTIVE CONTROL MEASURES IN A CO-OPERATIVE

The following categories of preventive controls can be adopted to guard against possibility of fraud occurring in the Sacco.

  1. The society should maintain excellent portfolio quality
  2. There is need for simplicity and transparency of systems and procedures
  3. Fraud- preventive human resource policies
  4. Client education and awareness
  5. Strict, transparent policies and procedures of write –offs and rescheduling loans
  6. Policy for custody and handling collateral
  7. Credit committee- Credit committee not only play an important role in reducing credit risk, but also are an essential element of an operational integrity and fraud prevention strategy.
  8. Cash handling policy-Basic controls recommended to mitigate the risk of misappropriation for the society include;
  • Use of standardized, pre-printed, pre-numbered loan/membership application forms.
  • The society should prepare loan agreements in quadruplicate.
  • The society should include all vital details in the loan agreements, to reduce manipulation.
  • The society also needs to restrict access to blank loan agreements.
  • The society staff should do a final pre-disbursement vetting and verification of compliance for each loan and in case of anomalies should report to management committee.
  • Additional mandatory checks should be done by the staff before disbursing.
  • The society should elaborately document the disbursement process e.g. by making sure cheque or cash collections are recorded.
  • The society should retain one copy of the disbursement receipt and give the other to the payee.
  • In disbursing funds directly to the borrower, the staff should check for evidence that the person accepting funds is the real borrower.
  • An accountant or someone else should compare payee disbursement request and loan agreement signatures.

 

Policy for custody and handling collateral

Currently many Saccos are vulnerable to potential irregularities or fraud in the collection, storage and return of collateral. The assigned staff/management or any person may collect collateral but not deposit it in the designated storage area, or collect the wrong type of collateral, or neglect to collect it at all. It is important that co-operative societies should mitigate the risk associated with collateral through the following steps:

  1. The co-operative societies must have policies and procedures on when to require collateral, when to assume custody of collateral versus allowing borrower to maintain custody, where to deposit and store collateral, and how to value collateral.
  2. The co-operative societies should have clear guidelines to their staffs on how to verify the authenticity of the particular collateral e.g. land title verification, vehicles logbooks, etc.
  3. If the borrower maintains collateral, the co-operative societies should periodically inspect the collateral for impairment. The loan agreement should include a detailed description of the collateral and serial number or other identifying number of the property, and require that collateral must not be sold without prior notice to the society.
  4. Procedures must be clearly stated for returning collateral to the borrower upon full repayment of the loan. The Saccos should maintain a proper register for all members’ collateral so that whenever it is being moved or transferred to any other party, it is properly signed for.
  5. Procedures should be recommended to improve the chances that liquidation of collateral is done at the best available price, and that proceeds from liquidation are deposited intact into the bank.

2014 in review

The WordPress.com stats helper monkeys prepared a 2014 annual report for this blog.

Here’s an excerpt:

The concert hall at the Sydney Opera House holds 2,700 people. This blog was viewed about 44,000 times in 2014. If it were a concert at Sydney Opera House, it would take about 16 sold-out performances for that many people to see it.

Click here to see the complete report.

Letter from Standard Chartered Bank to Co-operatives and other Financial Institutions

These are words of a letter written by SCB to co-operatives and other financial institutions titled “Closure of Financial Institutions’ Accounts.”

“Standard Chartered Bank Group (“SCB”) has, as part of a comprehensive strategic review of its business and client segments in multiple countries, taken a strategic decision to discontinue banking relationships with certain client categories managed within its Commercial and Business Clients segments formerly SME Segment. One of the affected client categories is Financial Institutions (FI), within which you are classified as one.

The decision to cease banking the affected client categories in Commercial and Business Clients, including FI, has resulted from increased burden of complying with regulatory requirements for banking such clients. Key regulators under whose supervision SCB falls requires higher levels of client due diligence to be conducted on such clients, both at the time of commencing the banking relationship and on an ongoing basis. Satisfying the regulatory requirements for such clients imposes a significant cost and compliance burden on SCB.

In line with the above, we regret to inform you of our intention to close your account(s) with us effective 15th December, 2014. This notice is to enable you make alternative arrangements for your banking needs and minimize any disruption to your business.

We wish to state that this initiative has nothing to do with the standing or conduct of your operations. Upon closure, a bank draft for the balance in your account (if any) will be issued. Please pick up the draft at the branch where your account is domiciled. Cheques on the account(s) will not be honoured after the account closure. Do not hesitate to contact the undersigned for any assistance. “

We all remember when some banks locked out civil servants and teachers some years back through raising minimum account balance to 10 or 20k? Now those/that bank(s) are hawking loans in the streets and offices. Same story here. In this country people save and invest through co-operatives. By locking out these people, this bank is telling us Kenyans it does not need us. But thank God, we have banks that are still eager to serve everybody including co-operatives because they know wanjikus run this country however small their savings in co-operatives are!! Many of us will not have gone to schools/collages were it not for co-operatives which paid our school fees (school fees loans), they also provided homes we live in (development/normal loans) and paid medical bills whenever we were sick courtesy of emergency loans or even buried our dead through Benevolent Funds.

Banks should be investing in this sector instead of citing regulations and cost of complying with those regulations…it will be interesting to find out how much SCB spent on co-operatives in trying to satisfy the regulators given they posted 14% rise in 9-month pretax profit which is Kes 11.2B ($124.51 million).

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