The Importance of Savings Mobilisation

There should be a Savings Mobilisation Strategy that highlights the importance of savings as a key to national economic development in Kenya. The growth of the economy depends on capital accumulation, which in turn depends on investment and an equivalent amount of savings to match it. Savings can therefore be used to finance investments which boost production and subsequently an increase in household income. Savings mobilisation by the SACCOs is thus important and critical if the overall standard of living style of the membership is to improve.
Savings mobilisation is all about the SACCOs encouraging their membership and community members to join and begin saving with the SACCO. This requires the SACCOs to become safe and sound institutions where savers can place their deposits with the expectation that they will receive the full value of their funds, plus a real return, upon withdrawal. Savings mobilisation therefore requires the development of appropriate savings products to satisfy the local demand for voluntary savings services and marketing
those products to savers of varying income levels. Effective savings mobilization requires clear principles related to:
 Safety of the members’ deposits (without risk of loss)
 Interest on savings (interest should regularly be paid to the members)
 Liquidity (the members should be able to withdraw their savings when needed)
The SACCOs, like any financial institution need to provide services to its members of diverse income groups while tapping into savings deposits as a relatively stable, low-cost source of funds to finance growing its loan portfolios. The mobilised savings are then loaned to members to fund productive investments in agriculture, education, housing, and microenterprise in the local community. SACCOs have long realised that savings deposits provide them with a cheaper source of funds compared to borrowing from commercial banks and other sources. The market cost of paying individual members tends to be lower than the non-subsidized loans in the financial markets. The existence of savings deposits as an independent source of funds will reduce the dependence of the SACCOs on subsidies from development partners. Savings being internally-generated funds provide an independent and sustainable supply of funds that can be invested in the SACCOs.

Adapted from RWANDA COOPERATIVES AGENCY (RCA)- MODULE TWO: SAVINGS MOBILISATION AND MANAGEMENT FOR
THE UMURENGE SACCOS.

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Challenges hindering Savings

1. Lack of or inadequate interest paid to savings: People see no reason as to why they should save because there is either no interest or very little interest paid to their savings hence this discourages them from saving
2. Increasing debts: Many people have accumulated many debts because of the ever increasing inflation and poor spending cultures hence they always end up paying debts and borrowing more in order to save.
3. Prioritize saving: In most cases many people in rural areas see no need to save since to them it’s not a priority as they have other basic needs to attend to.
4. Little to save: People don’t save because they have very little money and spend a lot hence there is nothing left to save in most cases. On the other hand, some people believe that it is those with a lot of money who save so the ones with little have no business in saving.
5. Don’t want to deal with banks: Most people do not save because they do not desire to deal with banks. This is because banks have a lot of bureaucracy which pushes them away from saving and they end up spending the money or keeping it in unsafe places.

Be careful with fast growing Saccos!!!

People, Processes and Systems should be in place before Saccos go “viral.”  A Sacco growing fast is not a bad thing but management should make sure they are ready for it. I have witnessed some societies that were just recently registered that have opened up branches across the country raising questions as to whether they followed the right procedures in doing so.

I will be more comfortable with say Unaitas Sacco growing very fast than with a newly registered society like Good Life Sacco. Unaitas has been there for years and they have the experience running a co-operative business. Its important to have the right people, processes and systems in place before aggressive marketing.

Some of the newly registered societies are usually restricted to operate within a small area of operation e.g. a sub-county or county. Sometimes without close supervision, they expand very fast opening branches all over the country without following the required procedures or sticking to the society’s by-laws especially the area of operation and resolutions passed by members.

I have also realized that some of these newly registered and fast growing societies have hidden intention and the public should be wary of these societies and inquire appropriately before committing. Hidden agenda specifically boils down to management/board of directors. Some of them have no intention of exiting the board and have carefully orchestrated an election “system” where they get re-elected year on year out. They use intimidation or membership ignorance to continue being in office. They have somehow put in place an election policy that they sneaked into a general meeting and had it approved that assures assures them of re-election. I still believe an election nomination process that excludes independent persons, is a sham. How can a nomination committee be composed of same people in the management committee who are to be subjected to an election process and to make matters worse, end up nominating exact number of people required? Isn’t this an election carried out by board and not members of the society?

Some of the fast growing societies have also sometimes close relationship with the church or the company within which the membership is drawn. They have what they call “a patron” who has way too much sway when it comes to societal matters. They fail to note that the society is an autonomous and synonymous organization. That the society can be sued, it can sue, own both movable and immovable property, etc. The membership in this scenario has been reduced to the role of attending meetings….just to fill the hall!! They have also failed to note that the Co-operative Societies Act and Rules, does not mention “patron” anywhere!!

I predict very soon, we will have some of the fast growing societies collapsing. This is because they have not considered some of the following issues before going ‘viral’-

PEOPLE: Do you have people in place who will steer and direct the growth? Has the management been trained/educated on basic co-operatives operations, Act, Rules? Does the staff have the required qualifications and experiences? Do the membership know what are the objectives of their co-operative? Do you know the stakeholders??

PROCESSES: Are there loan applications, membership withdrawal, staff recruitment, code of conduct, staff promotion, staff dismissal, elections, investments, dividends payments, etc processes that are known by all concerned? How did these processes come into being? How are meetings conducted management (board of directors), supervisory, management/supervisory and general meetings? Are membership views taken into consideration? How is the management committee, supervisory committee, staff and membership taken into account?  How are disputes resolved? Do you have an ICT system in place to manage the unprecedented growth? Is there a strategic plan for the society? How are shareholders and stakeholders engaged? Is there a risk management programme?

SYSTEMS: How do you manage people and processes in your society? Is there congruence of action within the society? Does these system re-invent or how agile is it? How do you make sure that society’s vision is shared across board? Does this system infringe on people and processes? What is the organizational culture like?

We shouldn’t sit down and wait. The ministries (both national and county) concerned should have policies in place to check on Saccos growth and fund sub-county offices to effectively and efficiently carry out their mandate. Otherwise new kinds of DECI is in the making.

This is a must read for every young co-operator out there.

Courtesy Daily Nation

I saw a gap in seeds and planted success

As she grew up in Kiserian, on the outskirts of Nairobi, MaryAnne Wairimu was always saddened that farmers struggled in vain to have all their seedlings germinate after transplanting.

She watched helplessly as tomatoes, cabbages and onions wilted and died. “But I also saw a business opportunity and when I was old enough, I could not let it pass,” says Wairimu.

The young entrepreneur with the help of her mother later ventured into the seedlings business.

“While in college, I researched on how to attain 100 per cent germination rate for various seedlings. I learnt about a technology known as hygro-mix,” recalls Wairimu.

After graduating in 2012 from the Kenya Polytechnic with a diploma in Physics, Wairimu, 23, started farming at her parents’ one-acre farm in Kiserian using hygro-mix, which is a soil-less technology. The capital was Sh100,000, part of which she used to put up a greenhouse measuring five by 10 metres.

She further bought hybrid seeds and hygro-mix trays. A packet of 10,000 seeds of capsicum cost Sh30,000 while 2,500 tomato seeds went for Sh8,000.

IMPORTED EQUIPMENT

The young woman, who runs Gad Eden Greenhouses and Nurseries, imported hygro-mix equipment from South Africa.

“The yield from seedlings made from the technology is higher and one does not waste seeds during the transplanting ” says Wairimu.

She now has two large greenhouses where she grows all varieties of horticultural crops that include tomatoes, capsicum, onions, cabbages, cucumber, broccoli, cauliflower, beetroot, spinach and kale.

With the help of her mother, Lister Kinuthia, Wairimu waters the plants at least once a day depending on the weather.

Normally, tomato seeds stay in the nursery for about 21 days while capsicum takes five weeks before maturity.

The seedlings are then sold to farmers in Nairobi, Kisumu, Chavakali, Mombasa and Kampala.

“Farmers book the seedlings even before they are fully developed,” says Kinuthia.

Tomato and capsicum seedlings retail at Sh10 each, while kale and spinach go for Sh2 and lettuce and beetroot at Sh3.

“For out-of-town orders, we use courier services to send the seedlings to farmers,” says Wairimu.

Mother and daughter have proved to be a dynamic and formidable team. They are also experimenting with various seed varieties and teaching farmers from as far as Nigeria how to achieve 100 per cent seed germination. The two are also growing  onion seeds as well using soil since the crop requires plenty of space, which might not be available in a greenhouse.

“The onions take about six to seven weeks to mature. We use drip irrigation to water them,” says Kinuthia.

According to Wairimu, farmers must debunk the myth that drip irrigation is too expensive and complex.

“We also teach farmers how to succeed in drip irrigation. A good drip system for an eighth acre costs a farmer about Sh30,000,” she says.

In a good month, mother and daughter make up to Sh200,000 from selling seedlings and teaching farmers.

“Breeding seedlings is very profitable as everyone is farming these days. Greenhouse farmers will always need hybrid seedling,” says Wairimu.

Germination success rate is dependent of the seed quality.

“The advantage of soil-less medium is that it can be sterilised completely and chances of seed rotting are minimal,” says Dr Miriam Mwangi, a senior lecturer in the crop, horticulture and soils department at Egerton University. She adds farmers should ensure seeds germinate in right temperature.

By Njoki Chege –

SATURDAY, MARCH 29, 2014

Achievements of Strict Enforcement of the legal framework

  • Kenya Co-operative movement is currently ranked 1st in Africa and 7th internationally. In July 2013 WOCCU recognized Kenya SACCOs as the fastest growing sub-sector in the World.
  • Co-operative enterprises have generated employment opportunities of over 500,000 people and indirectly for 2 million
  • Recovery of Ksh.3.8 billion in SACCOs remittances from employers by 2010 out of Ksh. 4.3 billion arrears that had been outstanding since 2004.
  • SACCOs had mobilized savings to the tune of Ksh.380 billion with asset base of 493 billion as at 31st December, 2012
  • Savings mobilization in the SACCO subsector has been growing at the average rate of 30% per annum.
  • Income to co-operators has increased, e.g. milk-from ksh. 8 to ksh. 38 per litre; coffee-from ksh. 10 to ksh. 140 per kg.
  • There has been tremendous growth of co-operative financial organization into giant financial power houses which surpassed the normal commercial banks and other financial institutions. The Co-operative Bank of Kenya is the 3rd largest bank in Kenya,while the Co-operative Insurance Company of Kenya (CIC), is the 2nd largest insurance in Kenya and the only one of its kind in Africa.
  • The Co-operative sub-sector has two major components, the Government which drives its policy through movement on the other for efficient delivery of service to the members and the general public.

Compiled By:

Emily M. Gatuguta, OGW
Peter Kimotho
Samwel Kiptoo
Date: Tuesday, January 14, 2014

Structure of Co-operative Development and Marketing

Sub Sector State Corporations/Commissions/SAGAs
i. Sacco Societies Regulatory Authority (SASRA)
ii. Ethics Commission for Co-operatives (ECCOS)
iii. Co-operative Tribunal
iv. New Kenya Cooperative Creameries (New KCC)
v. * The Co-operative College which was a National Co- operative Organization has been upgraded to a University College and is now under the Ministry of Higher Education. We expect the college to be given a charter in the near future to be a full Co-operative University in Kenya
Sacco Societies Regulatory Authority (SASRA)
The Sacco Societies Act, 2008 was enacted by the Parliament to “make provision for the licensing, regulation, supervision and promotion of Sacco societies, to establish the Sacco Societies Regulatory Authority (SASRA). To make the Act operational, the Minister made the SACCO Societies (Deposit- Taking SACCO Business) Regulations, 2010.
SASRA is a State Corporation as provided under section 2(b) of the State Corporations Act (Cap. 446) of the Laws of Kenya and SASRA is established under section 4 of the Act with the mandate to:
(a) license Sacco societies to carry out deposit-taking business in accordance with the Act
(b) regulate and supervising Sacco societies
(c) hold, manage and apply the General Fund of the Authority in accordance with the provisions of the Act
(d) levy contributions in accordance with the Act
(e) do all such other things as may be lawfully directed by the Minister; and
(f) Perform such other functions as are conferred on it by the Act or by any other written law.
Ethics Commission for Co-operatives (ECCOS)
The issue of good governance has been discussed widely since the end of the twentieth century. The Government of Kenya on its part, after the year 2002, embarked on an ambitious strategy to enact laws to combat graft, which was rampant and threatening to tear institutions of government apart. The
existence of other institutions with massive public interest, for example the cooperative societies were equally threatened.
Consequently, the Government enacted various laws geared towards eradicating graft and improving governance in public institutions in 2003. These legislations include;
 The public officer Ethics Act of 2003
 The Anti-corruption and Economic crimes Act
 The Public Procurement and Disposal Act
In the Public Officer Ethics Act (Section 2) cooperative society’s staff and committee are included in the definition of a public officer, hence responsible for guarding the interests of their members, who are the Kenyan public.
Most of the public officers as defined in the public officer Ethics Act, had commissions responsible for their integrity, and discipline, some of which were already statutory, with well established administrative structures, for example;
Among the existing commissions, none was found appropriate to handle the integrity issues of the cooperative public officers. This necessitated the creation of a cooperative sector, integrity commission. By legal Notice No.120/03 (The public officer Ethics regulations 2003) the Ethics Commission for Cooperative Societies was established, to be the responsible commission for officers and employees of cooperative societies established under the cooperative societies Act, including members of the governing body of the cooperative society.
The members of the above Commission comprise officers within the Ministry only and the cooperative college. There was no stakeholder participation, which is essential in matters of integrity.
The Ministry approached the Ministry of Justice National Cohesion and Constitutional Affairs, with a view to amending Regulation 7 of the public officer Ethics Act Regulations 2003, to include stakeholder participation, to give the commission a wider scope. After numerous discussions and consultations, between the two ministries the amendment was accepted, and the Regulation now titled ‘The public Officer Ethics (Amendment) Regulations, 2010’. The composition of the Board is now drawn from,
institutions such as ICPAK, Kenya Bankers Association, Strathmore University, Co-operative College of Kenya, Co- operative Alliance of Kenya, and the Co-operative Tribunal.
Mandate
The mandate of the ECCOS is “To promote and enforce Ethical conduct and anti-corruption reforms within the cooperative movement, through responsive education, advice, investigations and financial disclosure processes”.
Duties and responsibilities of the commission will include;
 Enforcement of the cooperative society’s general code of conduct.
 Development and administration of training programmes aimed at integrating good governance and Ethical principles in the management of cooperative societies
 Awareness creation and institution of corruption prevention measures in the cooperative movement.
 Investigation on any matter that in the commissions opinion raises suspicion that conduct liable to allow, encourage or conduct constituting corruption, is about to occur.
 Investigation on any officer of the cooperative society that in the opinion of ECCOS is conducive to breach of integrity.
 Examination of the practices and procedures of work of cooperative societies in order to facilitate the discovery of corrupt practices and to secure the revision of methods of work or procedures that in the opinion of the commission are conducive to breach of integrity.
 To investigate the extent of liability for the loss of or damage to any co-operative society property.
 To make recommendations on disciplinary actions to be taken by the committee/board and the general meeting on the staff and the committee respectively among others.13
 As part of its institutional development agenda, the Ministry will establish the requisite institutions and structures to operationalize and entrench the provisions of the Ethics Commission for Cooperative Societies. For an integrated approach to addressing poor governance, the Ministry will put in place mechanisms to empower the Co-operative Tribunal to enable it enforce the cases tabled by the Ethics
Commission.
The commission may refer a matter to another appropriate body for investigation, and that body to investigate, within a reasonable time, and submit a report to the Commission on its findings.
Co-operative Tribunal
The Co-operative Tribunal is one of the functions of the Ministry of Industrialization and Enterprise Development. The Tribunal is a quasi judicial body established under the Co-operative Societies Act No.12 of 1997 as amended by the Co-operative Societies (Amendment) Act, 2004 with the sole purpose of hearing and settling co-operative disputes.
In order to qualify as a dispute for purposes of the Tribunal, the matter must concern the business of the society. That is;
 Among members, past members and persons claiming through members, past members and deceased members; or
 Between members, past members or deceased members; and the society, its committee or any officer of the society; or
 Between the society and any other co-operative society.
Tribunal services include; advisory services, assessment of claims, custody of documents, processing of documents, granting ex parte judgments, giving hearing dates and hearing disputes.
The Tribunal has decentralized services by establishing registries across the Republic, namely; Mombasa, Kisumu, Embu, Nakuru and Kakamega. Aggrieved parties are advised to seek these services at the registries nearest to them.
Advantages of the tribunal mechanism
 Fast in settling disputes
 Ensures a win-win situation
 Emphasizes justice rather than technicalities of procedure
 Enforces its own decrees
 Has qualified personnel with representation from Co- operative Movement itself.
 It is only in a tranquil and peaceful environment that business can thrive.
 Customer friendly
 Open to members of the public(transparent)
 Closer to the people through the regional registries15
 Specialization in Co-operative matters
New Kenya Co-operative Creameries Ltd (NKCC)
Kenya Co-operative Creameries (KCC) was the first co- operative to be registered on 8th February 1931 under the Co-operative Societies Ordinance.
 This society operated very well up to the year 2000 when it was sold to private investors and renamed KCC 2000.
 The New Kenya Co-operative Creameries Ltd was registered on the 25th of June 2003. Its predecessor, the Kenya Co-operative Creameries Ltd has operated in Kenya since 1925. This makes it the oldest dairy processor in the country.
 New KCC is the largest business entity in the dairy industry in East Africa involved in food industry,
processing and marketing milk and milk products.
 The business process of New Kenya Co-operative Creameries Ltd encompasses receiving of raw milk
from farmers, processing it into various milk products and marketing and selling the products for the benefit of the company shareholders.

Compiled By:

Emily M. Gatuguta, OGW
Peter Kimotho
Samwel Kiptoo
Date: Tuesday, January 14, 2014

Structure of the Co-operative Movement in Kenya

The co-operative movement in Kenya is organized into four-tier system consisting of; Apex, Tertiary (NACOs), Secondary (County/District Unions) and Primary;
Apex Co-operative Organization
The apex co-operative organization today in Kenya is the Co- operative Alliance of Kenya (CAK).
 The Co-operative Alliance of Kenya Limited (CAK) was registered on the 22nd December, 2009 as the National Apex Organization for the Co-operative Movement of Kenya under the Co-operative Societies Act, CAP 490 Laws of Kenya.The newly registered Co-operative Alliance of Kenya Limited is to be the driving force of the Co-operative Movement in Kenya.
 CAK is a successor to Kenya National Federation of Cooperatives (KNFC). KNFC was formed in 1964 by co- operative societies unions and NACOs to be the spokesman of the co-operative movement and to promote co-operative interest. However, KNFC faced some challenges in late 90’s and early 2000 which led to its liquidation.
 CAK endeavors to promote co-operative development, to unite the Co-operative Movement and to represent the Co- operative interests on all matters of policy and legal framework and to be the spokesperson of the Co-operative Movement in Kenya.
Tertiary National-Co-operative Organizations (NACOs)
These are countrywide co-operative organizations whose membership is drawn from secondary and primary co-operatives.
NACOs offer specialized services to their affiliates, which include insurance, banking, housing, commodity marketing and promotion of active relationship with social and economic partners in order to create favorable climate for co-operative development.
They provide commercial and financial services, human resource development, advocacy and representation of co-operative unions and societies at the international level. Currently there are ten
NACOs which are:Co-operative Bank of Kenya Ltd, Kenya Co- operative Coffee Exporters (KCCE) Ltd, Co-operative Development and Information Centre (CODIC) Ltd, Co-operative Insurance Company of Kenya (CIC) Ltd, New Kenya Co-operative Creameries (KCC) Ltd, Kenya Planters Co-operative Union (KPCU),
Kenya Union of Savings and Credit Co-operative (KUSCCO) Ltd, Kenya Rural SACCO Societies Union (KERUSSU) Ltd, National Co- operative Housing Union (NACHU) Ltd and Cooperative Communication Holdings Ltd (CCHL)
Co-operative Bank of Kenya Ltd
The Co-operative Bank of Kenya Limited was registered as a co- operative society on the 19th June 1965.
 The Bank applied for a banking licence to operate under the Banking Act, which was granted later on and it opened for business on 10th January 1968.
 The Bank is now incorporated in Kenya under the Company’s Act and is also licensed to do the business of banking under the Banking Act. It was initially registered under the Co-operative Societies Act at the point of founding in 1965.
 This status was retained up to and until June 27th 2008 when the Bank’s Special General Meeting resolved to incorporate under the Companies Act with a view to complying with the requirements for listing on the Nairobi Stock Exchange (NSE).
 The Bank went public and was listed on December 22 2008. Shares previously held by the 3,805 co-operatives societies and unions were ring-fenced under CoopHoldings Co- operative Society Limited which became the strategic investor in the Bank with a 64.56% stake.
 Co-operative bank has a distinct advantage in co-operative societies spread across all the 47 counties and can therefore provide a reliable alternative for establishing branches countrywide.
 The Bank is already in a franchising partnership through Sacco Link which provides wholesale banking services to individual SACCO’s which then provide retail banking services to members through FOSAs.
Kenya Co-operative Coffee Exporters (KCCE) Ltd
This was formed in 2008 by small scale coffee farmers to enable them access export markets through enhanced economies of scale and professional expertise in coffee marketing. KCCE is licensed as a commercial coffee marketing agent that provides small holder coffee farmers with an opportunity to directly sell their produce to the international market. Since its registration producer prices have improved significantly.
Co-operative Development and Information Centre (CODIC) Ltd
This was developed as a one stop shop for co-operative societies on issues of information technology and co-operative development.
 The primary function is computerization of cooperative society operations in order to improve efficiency.

 Among its major achievements is development of software which is used to install ATMs in a number of societies.
Co-operative Insurance Company of Kenya (CIC) Ltd
The Co-operative Insurance Company of Kenya Limited (CIC) was established in 1978 and was formerly known as Co-operative Insurance Services Limited (CIS).
 In 1999, the company name was changed to the Co- operative Insurance Company of Kenya Limited (CIC)
 The name change was part of the company’s market repositioning strategy of completely changing the then small company to a respected insurer in the country.
 It is currently among the largest insurance companies in terms of capitalization and insurance premium
Kenya Planters Co-operative Union (KPCU)
Kenya Planters Co-operative Union (KPCU) was registered 1937 as a national co-operative union for primary coffee co-operatives societies.
 The union, however, currently faces some serious challenges necessitated by poor governance structure and dual certificate of registration.
 KCB had placed the organization under a statutory manager/receiver but has since been lifted pending clearance of the outstanding loan
 A new board of directors has already taken over from the receiver manager and are in the process of paying the loans
Kenya Union of Savings and Credit Co-operative (KUSCCO) Ltd
KUSCCO is the union for SACCOs in Kenya. It is charged with responsibility of championing issues affecting SACCOs in Kenya through advocacy and representation. The main objectives of
KUSCCO are to:
 Promote the organisation and development of viable co- operative savings and credit societies
 Disseminate information concerning savings and credit societies and co-ordinate their operating methods and practice to maintain basic uniformity
 Foster education, training of members, officials and employees of savings and credit societies
 Act as the sole local and international representative and mouthpiece of savings and credit societies
 Help improve the internal management of savings and credit societies by providing a standardized management system.
KUSCCO operations are managed by a board of 15 directors selected by member SACCOs on regional basis.
The organisation has its Headquarters in Nairobi and five branch offices in Kisumu, Nakuru, Nairobi, Embu and Mombasa. Each upcountry office serves KUSCCO members within its region.There are sub branches in wider regions to cover all the 47 counties
Kenya Rural SACCO Societies Union (KERUSSU) Ltd
The Kenya Rural Savings & Credit Cooperatives Societies Union (KERUSSU) was registered in 1998 and is the umbrella national cooperative organization for rural SACCOs. KERUSSU brings together rural SACCO societies and other forms of savings & credit associations in Kenya.
The membership of KERUSSU is made up of cooperative societies whose operations are largely based in rural areas of Kenya where:
 The members’ major source of income is from rural based activities such as farming
 The greater percentage of the members live in rural areas
 And where members are largely derived from institutions and establishments such as factories based in rural areas and/or process inputs that are mostly from the rural areas.
The overall goal of KERUSSU is to contribute to improved standard of living in the rural areas of Kenya through appropriate, efficient and effective rural cooperative movement with the capacity to offer accessible and affordable financial services.
The aim of KERUSSU is to work towards empowered and dynamic rural SACCOs offering effective and efficient services to their members.
National Co-operative Housing Union (NACHU) Ltd
NACHU was established in 1979 under the Co-operative Societies Act (Cap 490)to coordinate shelter issues through the co- operative model by providing financial and technical service.
 Its formation was in response to the great demand for decent and affordable housing among the low income group.
NACHU therefore is an organization whose membership is made of registered primary housing cooperatives.
 The co-operative movement has an obligation under Kenya Vision 2030 to provide 25% of annual housing demand in Kenya.
 NACHU’s strength is its holistic approach to shelter development: housing microfinance combined with advocacy and technical services that allow cooperatives to gain access to land and infrastructure, and ensure quality construction.
 NACHU also supports member cooperatives with training in financial management, governance, and other important topics including HIV/AIDS prevention.
Cooperative Communication Holdings Ltd (CCHL)
Co-operative Communication Holdings Limited (CCHL) is a National Co-operative Organization (NACO) which was registered on 8th March 2010 to enter into partnership with the private sector in the provision of Information Communication Technology (ICT) services to the co-operative movement as a vehicle for
investment in this fast growing sector.
The core activity of the CCHL is to partner with the private sector on areas of ICT in order to maximize returns to the members and ensure access to information through the provision of affordable products and services thereby promoting their social economic welfare. ICT is critical to the country’s development and CCHL is strategically placed to provide the best ICT products.
Secondary Co-operatives (County/District Cooperative Unions)
These co-operatives restrict their membership to primary co- operative societies. They include the County/District Co-operative Unions which serve the primary co-operatives as service agencies.
They are managed by an executive committee whose members are elected from the primary co-operatives. They are formed with the aim of enhancing economies of scale through shared goods
and services such as bulk procurement of farm inputs and education and training of its afflicts.
Primary Co-operatives
These co-operatives restrict their membership to individual persons and are mainly formed by individuals within a given locality or common bond. Most of them are single-purpose or single product enterprises.They group individual members for their economic thrift and cut across all sectors of the Kenyan economy such as; Marketing Co-ops, Savings and Credit, Housing, Horticulture, Livestock, coffee, pyrethrum, sugar cane, cotton, Fisheries and Dairy. They include; Manufacturing/processing, Construction, Transport, Irrigation, Farm purchase e.g Konza, Mining [Turkana] alluvial gold and Investment Co- operatives. Notable achievements include;
 Most Kenyans have benefited in one way or the other from the Co-operative movement, through educations and acquisition of land from the white settlers.
 Modern day Kenyans in very many spheres of the economy have benefited from societies through borrowing and establishing businesses
 Employees have joined SACCOs, obtained loans for purchase of plots, cars, construction of houses and payment of school fees.
 Notable cooperators are Members of Parliament who are either members of Bunge Sacco or Parliamentarian Sacco.
 The SACCO sector has grown to a point where some SACCOS are bigger than commercial banks e.g Mwalimu SACCO with a membership of 47,179, has assets totaling Kshs. 22 billion with a monthly cheque of Ksh.600 million from employers and Harambee SACCO with a membership of 98,640, has assets totaling 13 billion with a monthly cheque of Ksh.454 million as at November 2010.
 Individual contribution has grown and there is case where one employee has saved fifty million shillings with a SACCO which shows the confidence members have in cooperatives.
 SACCOS have mobilized huge amounts of money, thereby support the economy. So far SACCOS have raised approximately Kshs. 380 billion as at 31st December, 2012.
 Co-ops bring about security, stability, prosperity and equity
 Co-operatives are not well understood and therefore their potential to reduce poverty and the inequality gap is not appreciated.

Compiled By:

Emily M. Gatuguta, OGW
Peter Kimotho
Samwel Kiptoo
Date: Tuesday, January 14, 2014

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