Isiolo County gets first Shariah compliant Sacco

Isiolo County has launched the first Shariah compliant savings and co-operative society (Sacco) for women and youth. The initiative by the County Woman Representative Tiyah Galgalo on Saturday evening raised an initial Sh8.5 million. Ms Galgalo intends to raise Sh20 million for the 10 Wards in the County by October to jump start women and youth enterprise development. Dubbed Vuna (harvest) Sacco, the legislator said, the initiative aims to help youth start small but serious enterprises that will help them and families. Ms Galgalo was accompanied by Women Enterprise Fund Chief Executive Wainaina Wanjeri and Chairlady Mumina Gollo. She called on women to take advantage of the Women Enterprise Fund and Uwezo Fund to start small businesses.
Read more at: http://www.standardmedia.co.ke/business/article/2000126444/isiolo-county-gets-first-shariah-compliant-sacco

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Stima Sacco celebrates 40th anniversary

Stima Sacco celebrated its existence for the last 40 years. The Sacco has employed over 30,000 employees nationwide since it was started in 1974.   During the celebrations, Dr. Chumo who is also the Kenya Power CEO said that 40 years is when life starts and the Sacco should become more aggressive and break new grounds. Stima Sacco, in his view, has reached a stage where it should explore partnerships with international institutions to help it increase facilities and benefits to a growing and diversifying membership. Acccording to the CEO Mr. Paul Wambua, the 40th anniversary presents an opportunity to reflect on the Sacco’s many milestones that include several firsts in the history of the movement in Kenya. He noted that the first Sacco ATM in Kenya was issued by Stima Sacco, they were the first to issue a cheque book despite Saccos not being part of the National Payment System, the first Sacco to do a rights issue and the first such business to be licensed by SASRA as a deposit-taking institution.
Read more at: http://www.standardmedia.co.ke/business/article/2000131862/stima-sacco-celebrates-40th-anniversary

INVESTMENT CO-OPERATIVES ARE NOT NEW BEINGS!!!

Murang’a adopts model to mobilise development funds from the locals

By JOSHUA MASINDE of Daily Nation (FRIDAY, FEBRUARY 28, 2014)

Murang’a County has adopted a report by the commission of inquiry on the area’s investment cooperative society popularly known as Shillingi kwa Shillingi (shilling by shilling).

The study calls on the county government to formally adopt the fund mobilisation model by forming a corporation to manage its deals.

The county corporation, as it will be called, is expected to provide a legal basis for managing Murang’a Investment Cooperative Society Limited (MIC) and other schemes that the devolved unit may develop.

“The commission appreciates the nobility of the idea and vision behind formation of the MIC, and its possible huge impact in the economic growth to Murang’a County. It therefore recommends that the county government considers forming a county corporation,” the 14-member tram said in its Report of the Commission of Inquiry into the Murang’a Investment Cooperative Society Limited dated February 8.

“Such a corporation will provide a legal and solid platform to accommodate entities such as MIC, and facilitate public-private-partnerships on various economic and development projects.”

MIC was registered on October 1, last year, as a co-operative society under the cooperatives Act. As of January 29, the initiative had recruited 3,000 members and raised Sh4.8 million.

“The commission recommends that the governor communicates and shares his vision both with his executive members and all other elected leaders in the county. This will elicit the support and goodwill of fellow leaders and the general public,” the team chaired by Mr David Ngugi noted.

The move to mobilise funds from the public had caused a stir with the Capital Market Authority (CMA) sending letter to Murang’a governor seeking details. In its letter, the regulator reminded the MIC officials of the various provisions of the law that the model needed to comply with.

The initiative was the brainchild of Murang’a County governor Mwangi wa Iria, who had asked area residents to use the society to save as little as Sh35 daily to fund projects in return for dividend. Audit firm Deloitte and Touché came in as the project managers.

The cooperative society had set a target of recruiting 100,000 people with annual member funds of up to Sh3 billion.

In light of the initiative and on realising a legal vacuum, the market regulator acting chief executive Paul Muthaura said CMA would work with the Sacco Societies and Regulatory Authority to develop a county financing collective investment tool that will provide a framework for capital-raising plans at the devolved government level.

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My thoughts:

INVESTMENT CO-OPERATIVEI am surprised by the CMA’s reaction. If they did not know, we have many types of co-operatives registered and are being registered here in Kenya. One of them is an investment co-operative which probably is not known as much as Saccos or marketing co-operatives but they have been in existence. And they are what their names suggest them to be. They raise funds from members and invest. Probably CMA has never heard of Safaricon Investment Co-operative or Stima Investment Co-operative!!

Mr. Paul Muthaura should also know that Sacco Societies Regulatory Authority cannot develop whatever they are seeking as the name rightly suggests it deals with Saccos only as provided for under Sacco Society Act 2008. If they are seeking to develop a county financing collective investment tool, then head to department of co-operatives right next to you in Nairobi!! CMA should get out more I guess and just smell the “investment scene” for a while :-).

I am still beat why they formed the commission though!!

However there will be challenges on management of these types of ventures that are promoted by politicians……they never last. They are spineless like political parties in Kenya!!

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