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.

HOW SACCOS WORK AND GET FRUSTRATED WHEN THEY ARE GROWING

Adapted from a case study based on Hanover Insurance Company in the book Systems Thinking, Systems Dynamic. Managing Change and Complexity by Kambiz E. Maani and Robert Y. Cavana Second Edition.

We have to understand how co-operatives work and how they get frustrated, especially giant co-operatives. This is a casual loop diagram (CLD) that I will attempt to explain how especially Saccos are frustrated by lack of success and what they can do to change that.

The staff of Saccos Society are usually advised to work faster and work harder and probably also take fewer or shorter breaks. Over short time these usually produce desired effects but also lead to unintended consequences. The unintended consequences are usually masked by long time delays and hidden cause and effect relationships. This could be happening now or has happened to many Sacco societies especially after opening up of the common bonds leading to growth in membership.

First, lets start with Productivity Loop below.

PRODUCTIVITY LOOP

As the society grows, there are more incoming loan application forms. With more loans forms to be processed i.e. categorized into different products (advance, emergency, school fees, development loans, etc), requires that the rate of clearance of these loan forms/requests has to be increased due to time pressure. This will of course lead to less time spent on loan forms and therefore higher productivity (in making payments/giving out loans) and reduced pending loan applications. This will ease pressure on required clearance rate.

Second, Work Week Loop as depicted below.

WORK WEEK LOOP

The increased time pressure, will lead to increased work intensity which will in turn lead to greater productivity. More members will receive their loans on/in time and of course this means more income for the society, more interest on deposit and dividends for members.

Third, Burnout Loop as indicated below.

BURNOUT LOOP

As the work intensity increases, it means that the staff are working longer hours,  taking fewer breaks or shorter breaks or even not taking breaks (seen some eating at their workstations!). This will lead to fatigue, burnout and poor health which has a negative effect on productivity. Simply put, more loan forms are processed but at the expense of the society’s staff who affect productivity due to quality of work they are giving members and the society.

Fourth, Turnover Loop as pictured below.

loop turnoverPersistent burnout increases staff turnover hence reduced numbers of staff in the society. People will start applying for other jobs when they do not rest or have breaks or their health start deteriorating. When the number of staff has reduced in the Sacco society, it means that the incoming loan application forms and pending loan application forms will not be cleared at the rate required unless the now fewer staff, spend even less time per loan application, i.e. work longer hours with fewer or no breaks.

This will affect the quality of work as there will be inadequate time to verify information given in the loan forms by borrowers and hence increasing chances of loan defaulting or over-loaning or under-guaranteeing of loans. There will be poor documentation, staff will spend less time with members of the society and therefore no rapport will be developed with members who now have more options of joining other Saccos where they can be attended to properly.

Fifth, Cost Loop as indicated below.

costThere will be higher financial pressure on the Sacco society given that more borrowers will default and some dissatisfied members will withdraw membership and therefore loss of income and economies of scale respectively by the society. The society will be unable to recruit the right people into their staff because of financial pressure thus exacerbating the time pressure further.

So far what the CLD have shown are the ‘Fixes that Fail‘, short-term fixes and their unintended consequences. As the society grows, board of directors shouldn’t be asking their staff to work harder and have fewer breaks or refuse them their annual/maternity leave, but look for fundamental strategies for dealing with increased workload.

The Fundamental Strategies for dealing with increased workload include:-

  1. to improve/re-engineer processes
  2. to add capacity
  3. to do both

Saccos have to carry out process improvement. For example instead of board approving emergency loans and advances, this can be delegated to the employees of the society and hence saving time. Saccos can also invest in information technology; computers and software that will improve on accuracy and efficiency of operations.

Despite of the financial pressure, Saccos can also hire more staff, a statement to commitment of best practice. The valuable staff should also be encouraged, developed and retained in the society. Change of board of directors shouldn’t lead to change of the staff of the society. I have seen this happening so many times.

These are simple solutions, but at the ground level it is more complicated than this. But, in looking for fundamental solutions, all variables as per the context in which a particular Sacco operates must be considered and their interplay mapped and understood.

Managing Change in Co-operatives

The economic environment is dynamic and keeps on changing globally. It is therefore imperative for co-operative societies to keep abreast of the global changes or risk being irrelevant. Change is sweeping in nature and non response to change leads to being obsolete.

managing change is saccosIn order for co-operatives to manage change as it occurs the following factors need to be put in place:-

1. Awareness

It is of utmost importance for members of the co-operative to be aware of the changes affecting the economy as a whole i.e. potential socio-economical, technological including information technology and their effect on modern living. To do this the co-operative are required to set aside adequate funds for training and education not only for committee members but also for the general membership. It is the general membership that provides the leadership of the co-operatives and also an enlightened membership is an asset to the society.

2. Amendment of the co-operative society By-Laws

The current liberalized economy requires that co-operatives can rise up to the challenges and pressures of everyday living. The Co-operative Societies Act Cap 490 has made provisions for the amendment of the By-Laws of co-operative societies so that they can incorporate the changes that are occurring to suit current members needs.

3. Professionalism in the management of the co-operative societies

Co-operative societies are essentially business entities with various different products and services, but they are not alone in that line of business. There are other players in their diversified fields competing for the same business. It thus important that co-operatives are managed with utmost professionalism in this age of liberalization in order for them to survive. Other competitors are professional in approach and functioning. They employ the best professionals in their fields found in the open market, they adopt the most economical, cost effective methods and strive for the maximum profit in the market.

4. Marketing strategy as a manner of change in co-operatives

Marketing research is vital to all stages of the marketing plan:-

  • For decisions on the marketing mix, for example product research, pricing research, advertising research, etc.
  • For the implementation and control of the marketing plan, and
  • For assessing the extent to which objectives have been achieved.

Marketing research gives the following information inputs from the market:-

a) Environment audit

This reviews the organizations position in relation to changes in the external environment i.e. social, political, cultural, legal, economical and technological. The audit provides information which directly affects the setting of co-operative objectives. The market place is by definition, part of the “environment” and is a source of revenue and profit.

b) The Competitor audit

Provides competitor intelligence, competitor response models and so on, which again influence the co-operative objectives, strategy and contingency planning.

c) The customer audit

Assesses the existing and potential customer bases to provide information as to whether to develop new markets.

d) Product portfolio

This analysis provides inputs for decisions on whether or not to drop certain products and or add new ones.

e) Provides the basis for all other functional activities as well as marketing.

Information inputs from marketing to the co-operative society planning decisions perform a double duty, apart from planning they also provide objectives and strategies.

From the foregoing discussions, it is apparent that in order to manage change awareness, preparedness and implementation not to forget continuous market research are necessary components that cannot be ignored.

NEW PRODUCT DEVELOPMENT IN SACCO SOCIETIES

new

In view of the changing economic role of the co-operative societies, there is need to properly formulate investment policies for maximum returns to the members.

Prior to liberalization of the co-operative movement and the economy at large, our co-operatives had been too complacent and lacked innovative approaches in performance improvement.

These co-operatives have tended to operate under policies which have led to;

a)      Lack of creative innovation

b)      Reluctance to embrace change

c)       Over-reliance on traditional customer and products

d)      Inward looking policies, etc.

Co-operatives must strictly and urgently address their operational deficiencies. This involves;

a)      Improving service delivery

b)      Focusing on core customer needs

c)       Reducing on waste

Co-operative members are becoming more demanding and knowledgeable. This means that the management cannot assume that its products will be well received forgetting that the members have a wide choice. The co-operative therefore must offer its customers additional services and customised products. This can be achieved if:

–          There exist well thought out investment strategies

–          There is proper implementation of those strategies

Developing a new product

In developing a new product, the society needs to address the following aspects.

–          What product needs to be developed?

–          Who are the targeted customers?

–          What benefits will be derived from the consumption of the product?

–          How will the product be financed?

–          How will the product compare with existing products and harmonizes with the existing market structure?

–          What is the technical capability of the society in implementing the investment/product?

–          Will the implementation be in harmony with the existing legislative and regulatory controls?

In addressing the above the society shall move in the following direction:-

  1. Identify the most important service the members need;
  2. Identify the extend of the market for such need;
  3. Identify the sources of finance of the society;
  4. Conduct a cost benefit analysis to find out if the project/investment is justified and;
  5. Prepare the following:

a)      The staff skills;

b)      The system of implementation;

c)       Structure of the scheme and;

d)      System of evaluation and control.

Target market selection

The following guidelines should be followed by the Sacco when selecting target markets:

i)                    The target should be consistent or at least compatible with Sacco’s goals and image;

ii)                   The Sacco should seek markets that are consistent with its resources and;

iii)                 The Sacco should seek markets that will generate profitable volume of trade.

 

 

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