The Voice of Savings and Credit Cooperatives (SACCOs) in Kenya

Who we are

The Voice of Savings and Credit Cooperatives (SACCOs) in Kenya

As the voice and lobbyists for Savings and Credit Cooperatives in Kenya, we at KUSCCO have been at the forefront of efforts to form and develop strong and viable SACCOs.

Our key roles at KUSCCO - as the umbrella body for SACCOs - are mainly advocacy and representation. In addition, we offer SACCOs and other cooperatives financial and technical assistance, tailored to largely benefit the middle and low income earners both in Kenya’s rural and urban areas. This is a significant fraction of Kenya’s population that drives the country’s economy through the small and medium enterprise (SME) engine.

We are aware of the many challenges facing SACCOs in Kenya, which includes, among others, competition from commercial banks in Kenya, insufficient capital base, lack of or slow rate of Information Technology (IT) adoption, and inefficient loan pricing strategies.

We are here to address these problems and strengthen the cooperative movement in Kenya. At KUSCCO, we believe in the strength of unity and have tailored products and services to benefit all the SACCOs and their members in Kenya.

Background

Our Role

We have specially tailored services and products designed to benefit our members and affiliates, who are drawn from the cooperative movement in Kenya.

Some of the products and services we offer SACCOs in Kenya include:

•  Spokesmanship and Advocacy
•  Representation
•  Promotion of SACCO Societies
•  Risk Management Services
•  Central Finance Fund
•  Education and Training
•  Consultancy and Compliance
•  Corporate Affairs and Marketing
•  KUSCCO Housing Fund
•  Sacco Star Magazine

The SACCO Movement in Kenya

The SACCO movement in Kenya is billed as the largest in Africa and among the top 10 globally. The movement has mobilized domestic savings to the tune of about Kshs. 400 billion, accounting for 33% of the national savings and are major drivers of the economy. They have an asset base of over Kshs. 300 billion. SACCOs have thus become a vital component of Kenya’s economic and social development.

Challenges Facing Savings and Credit Cooperatives in Kenya

Despite the fundamental socio-economic role of SACCOs in Kenya, most of the savings and credit cooperatives are faced with a number of challenges, such as:

• Traditional Products
• Leadership and Governance Issues
• Capitalisation
• Taxation
• Information and Communications Technology
• Regulation and Supervision
• Developing Competitive Business Models
• Demand for Loans
• Non-Remittance of Fees by Members
• HIV/AIDS
• Outreach

We were registered in 1973 to address these problems and lobby relevant authorities and economic sectors to create a conducive environment in which SACCOs and their businesses can prosper.

The KUSCCO Structure

Our operations are run through 5 regional offices and 9 branches throughout Kenya. The regional offices are located in:

1. Nairobi – Nairobi Region
2. Kisumu – Western Region
3. Nakuru – Rift Valley Region
4. Mombasa – Coast Region
5. Embu – Mt. Kenya Region

The branches are located in Eldoret, Kisii, Kakamega, Athi River, Nyeri, Meru, Thika, Kericho and Malindi

Delegates

As a national organisation, our supreme authority is vested in the delegates who are drawn from all the regions in Kenya. Currently, we have 160 delegates drawn from all the counties in Kenya

 Vision

As a Union for Savings and Credit Cooperatives in Kenya, we are committed to professional and quality service aimed at growing and developing SACCOs and the cooperative movement in the country.

This is underscored by our vision “To be a world class national co-operative organization for SACCOs.”

Mission

SACCOs in Kenya need dedicated representation and to speak in one strong voice to advance their interests as businesses entities, as well as the welfare of their members. We are at the forefront in this regard and are guided by our mission – “Promotion of SACCOs through advocacy and provision of quality, diversified, innovative and market-driven products and services for sustainability.”

Core Values

• Customer Focus
• Integrity
• Team Work
• Innovation and creativity
• Professionalism.

our Objectives

Driven by our mission and guided by a vision to develop and represent micro, as well as macro savings and credit societies, our key objective as a Union is:

• To provide advocacy, lobby, advice and protect members against adverse legislation and/or restrictions;
• To act as the principal local and international representative and mouth-piece of all SACCOs in Kenya;
• To promote the organisation and development of viable SACCOs in Kenya;
• To help improve the internal management of savings and credit societies by providing a standardised management system for the SACCOs and the cooperative movement in Kenya;
• To promote a common code of ethics based on co-operative principles among SACCOs, their officials, employees and members.
• To promote among SACCOs, and their officials, employees and members a common code of ethics based on co-operative principles.

Board of Directors

Our Board of Directors is made up of 15 qualified individuals elected by Member SACCOs from all regions in Kenya. The primary responsibility of the Board is to protect shareholders’ assets and ensure they receive a decent return on their investment..

George Magutu	NATIONAL CHAIRMAN (Provincial Chairman – Central Province; Treasurer – Nyeri Teachers SACCO)
Elly Oyugi	NATIONAL VICE CHAIRMAN (Provincial Chairman – Nairobi; Chairman – Kenya Bankers SACCO)
Raphael Bukachi	BOARD MEMBER (Honorary Secretary – Asili SACCO)
David Ogega	BOARD MEMBER (Chairman – Gusii Mwalimu) .
Alfred Mlolwa	BOARD MEMBER (Chairman – TaitaTaveta Teachers SACCO)
Geoffrey Karuku	BOARD MEMBER (Deputy Commissioner Ministry of Co-operative Development & Marketing)
Isaac Sheunda	BOARD MEMBER (Chairperson – Sukari SACCO)
Peter Karemanu	BOARD MEMBER (Chairman – Solution SACCO)
David Mategwa	BOARD MEMBER (Chairman – Kenya Police SACCO)
Peter Manga	BOARD MEMBER (Chairman-Neno SACCO)
David Moyia	BOARD MEMBER (Treasurer – Kakamega Teachers SACCO)
David Langat	BOARD MEMBER (Vice-Chairman - Imarisha SACCO [Kipsigis Teachers])
John Munyaka	BOARD MEMBER (Metropolitan SACCO)
Florence Oile	BOARD MEMBER (Kimisitu Sacco)
Phillip Rirei	BOARD MEMBER (

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Co-operative Bank of Kenya Limited - Awards

Awards

2015: CO-OP BANK OF KENYA SCOOPS THE FINANCIAL TIMES“ 2015 FINANCIAL INCLUSION GLOBALAWARD” 
The Co-operative Bank of Kenya has won the esteemed award of Bank of the Year 2015 for Financial Inclusionin The Bankers Awardsrun by the Financial Times of London. The bank beat a stiff challenge from over fifty other entries from all over the world.

2014: Co-op Bank wins, VISA co-brand champion award. At the recent Visa end year gala held on 28th November, 2014; Co-op Bank was recognized by winning the Visa Co-brand award.

2014: Co-op Bank scoops two moneygram awards. At the recent Money Gram awards held in Nairobi on 4th November, 2014 Co-op Bank was awarded Best receive agent: awarded for having the highest share receive transactions and related receive revenues between January and October 2014. Co-op Bank was also awarded the Best Agent Marketing Investment: Awarded for continued support to joint agent marketing initiatives.

2014: East African Banking Awards; Co-op Bank was awarded in two categories, Best Bank in Retail Banking, and Best Bank in Micro-Finance.

2014: Bank CEO of the Year – Africa, awarded to Dr. Gideon Muriuki, Group CEO by International Banker magazine, in their 2014 Africa and Middle East Banking Awards. Key highlights of the award include; demonstrating remarkable foresight by insisting that the Co-operative Bank of Kenya will retain its identity as a Co-operative bank even when expanding outside Kenya, in spite of the fact that it would have been easier for the enterprise to proceed as a successful Kenyan commercial bank. Leadership in driving a sustainable growth model. Expanding to other African markets by way of joint ventures with Co-operative societies is a futuristic business model that is likely to deliver inclusive growth and a more equitable sharing of the benefits of the rising prosperity of African economies. Turning around the bank from loss-making to one of East Africa’s fastest-growing and most profitable banks. Achieving year-on-year growth in results, substantial growth in customer base and expansion of services into South Sudan. Setting up numerous bank-led initiatives to benefit the community.

2014: Best Innovation in Retail Banking, awarded to the Co-operative Bank of Kenya by International Banker magazine, in their 2014 Africa and Middle East Banking Awards. Key highlights of the award include; demonstration of a consistent commitment to providing inclusive retail banking services in Kenya. Successfully pioneering a retail banking model that goes beyond investment in conventional bank-owned channels such as branches, ATMs, agencies and electronic banking, to include over-the-counter banking services (FOSAs) and payment card systems (Co-op switch) operated by Co-operatives to serve their members, which currently number over two million. The bank’s huge investment in a payments switch has enabled Kenya’s vibrant Saccos to access card payment services worldwide, is a ground-breaking innovation towards achieving financial access to the majority. Providing scholarships for underprivileged students, green energy financing packages and low-interest loans for SMEs, which may prove crucial in terms of Kenya’s future economic growth.

2013:Co-op Bank is recognized as the Most Green Bank at the 2013 Energy Management Awards for achieving the fastest turnaround time for renewable energy and energy efficiency financing for SMEs and Large Enterprises, actively promoting “Green Financing” among clients and for being the bank with the largest pipeline of projects seeking green energy financing.

2011: Co-op Bank is named Bank of the Year in Kenya by the Financial Times of London, the second year in row, as the bank also won the award in 2010.

2011: Co-op Bank is awarded Best Company in Corporate Governance in 2011 at the 2011 Financial Reporting (FiRe) Awards.

2011: Co-op Bank Group CEO Honoured by Kabarak University

The Co-operative Bank of Kenya Group Managing Director and CEO Dr. Gideon Muriuki, was awarded the Honorary Degree of Doctor of Business Leadership (Honoris Causa) by the Kabarak University.

Co-operative Bank of Kenya Limited - History

History

​2013: Co-op Bank is recognized as the Most Green Bank at the 2013 Energy Management Awards for achieving the fastest turnaround time for renewable energy and energy efficiency financing for SMEs and Large Enterprises, actively promoting “Green Financing” among clients and for being the bank with the largest pipeline of projects seeking green energy financing.

2010: The bank is recognised as Best Bank in Kenya in the Banker magazine awards of the Financial Times of London.

2009: The Bank undertakes the most rapid expansion of service outlets by opening an additional 22 branches within one year to close 2009 with 74 branches up from 52 as at the close of 2008.

2009: The Bank records a most phenomenal increase in customer accounts from just over 700,000 as at the close of 2008 to over 1.1 million at the close of 2009 driven by MD Liability Campaign launched by the CEO that requires staff to open a minimum of 5 accounts per month.

2007: The Bank realises complete turnaround by recording a Kshs 2.3 billion profit before tax for year 2007, as compared to the Kshs 2.4 billion loss for year 2000. The Bank also declares a dividend of 8% which translates to Kshs 8.00 per share, the highest payout in many years.

2005: Performance in 2005 maintains the growth trend as the Bank reports a Kshs 714 million pre-tax profit, which is an impressive 102% improvement on year 2004. The Bank declares a dividend of 5%, maintaining a consistent enhancement in dividend payout in line with improved performance, from the 3% and 4% paid in 2003 and 2004, respectively.

The Bank successfully recapitalizes the balance sheet in the year with a major additional share capital injection of Kshs 1.1 Billion from the Co-operative movement-based shareholders of the Bank. The shares drive literally doubles the bank's capital base from Kshs 1.2 billion to Kshs 2.3 billion.

2003: The Bank sustains its recovery and growth path to report an improved profit of Kshs 183 million, an impressive 78% improvement on Kshs 103 reported in 2002. The Bank pays a dividend of 3%, a significant landmark that ends a dividend drought that had lasted the previous 7 years.

On 28th February, the bank undertakes a key transition as Mr Stancley C. Muchiri, who previously served as Vice Chairman, is appointed Chairman of the Board to replace Mr Hosea Kiplagat.

The bank re-occupies Co-operative Bank House after renovations occasioned by the 1998 bombing are completed.

On 1st March, the bank undergoes a major transition as the Mr Gideon M. Muriuki, formerly General Manager – Corporate and Institutional Banking is appointed Managing Director to replace Mr Erastus K. Mureithi who proceeds on retirement.

1998: The bank signs a contract with MoneyGram International in October 1998, and becomes the agent for the company's international funds remittance business.

1994: The Bank converts to become a fully-fledged commercial bank offering the complete range of financial services beyond the captive Co-operative sector to include personal, corporate and institutional customers.

1977: The Bank registers a finance company – the Co-operative Finance Limited – on 16th December 1977 to conduct the business of a financial institution for long-term financial requirements. It opens its doors on 8th March 1993.

1968: The first Board of Directors comprises Mr B Kathanga (Chairman), Hon C W Rubia, M P (Vice-Chairman), Mr J K Muthama, Mr A H Kamau, Mr M Gheewalla, Mr J J Musundi, Hon D N Kuguru, M P, Mr S Rintaugu and Mr S Mogire.

The Co-operative Bank opens for business on 10th January 1968 with a modest capital base of Kshs 255,000. The Government supplements the capital with a Kshs 214,000 interest-free loan repayable in 10 years. The Banking Act, however, requires banks to have a minimum capital of a 'staggering' Kshs 2 million. The Government grants an exemption and offers a grace period within which the required capital is to be raised.

1966: The 1945 Ordinance is replaced with the Co-operative Societies Act. The main essence of the Act was increased oversight of the Co-operative movement by the government.

Sessional Paper No. 1 titled African Socialism and its Application to Planning in Kenya is unveiled. In this document, Co-operatives are seen as very important tools for development.

As a result of initiative and advice of KNFC, a group of people from the Department of Co-operative Development visit Israel to study ways and means of establishing a viable Co-operative bank. The same year, a joint paper by the Ministry of Finance and Marketing & Co-operatives Development recommending the establishment of the bank is issued.

The co-operative movement witnesses a structural change with the formation of the Kenya National Federation of Co-operatives (KNFC) as an apex body to promote the interest of the Co-operative movement as a whole.

1931: The first legislation to specifically govern the registration of Co-operatives – Co-operative Societies Ordinance – is enacted. Kenya Co-operative Creameries (KCC) becomes the first co-operative to be registered on 8th February 1931. This is followed shortly by Kenya Farmers Association (KFA) IN 1931, the Kenya Planters Co-operative Union (KPCU) in 1937 and the Horticultural Co-operative Union (HCU) in 1951. However, the 1931 Ordinance did not allow Africans to participate in co-operatives.

Co-operative Bank of Kenya Limited

 Co-operative Bank of Kenya Limited  About Us

​​

The Co-operative Bank of Kenya Limited is incorporated in Kenya under the Company Act and is also licensed to do the business of banking under the Banking Act. The Bank 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 22nd 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.


​The Bank runs three subsidiary companies, namely:

Kingdom Securities Limited, a stockbroking firm with the bank holding a controlling 60% stake;
Co-opTrust Investment Services Limited, the fund management subsidiary wholly-owned by the bank; and
Co-op Consultancy & Insurance Agency Limited (CCIA), the corporate finance, financial advisory and capacity-building subsidiary wholly-owned by the bank.

Vision

To be the leading and dominant Kenyan bank with a strong countrywide presence, playing a central role in the Co-operative movement and providing relevant and innovative financial services to our customers for the optimum benefit of all our stakeholders.

Mission

To offer value-added financial services to our chosen market segments with special emphasis on the Co-operative movement through a highly effective network of service points, excellent customer service and a highly motivated team of qualified personnel.

Shareholding Structure

The Co-operative Bank is owned by over 154,942 shareholders (as at 2011 close). Out of this, CoopHoldings Co-operative Society Limited owns 64.56%, with the rest held by other investors.

The Bank has an Authorised share capital of Kes 5,000,000,000 made up of 5,000,000,000 shares of Kes 1.00 each, and an Issued and fully paid capital of Kes 3,492,370,900 made up of 3,492,370,900 shares of Kes 1.00 each.

Staff Complement

As at 2015, Co-op Bank had a staff establishment of 3,925 employees

The Seychelles Credit Union By-Laws and MEMBERS BENEFIT

BY-LAWS
The Seychelles Credit Union By-Laws is the set of rules governing the internal running of the financial cooperative.  It has been adopted by SCU in order to regulate its affairs and activities.

The By-Laws comprise of rules from membership, shares, borrowing powers, loans to general meetings, board of directors and reserves etc.  It has been documented in the form of a booklet of 32 pages.  Members should take a moment and have a read through.

Please download the Seychelles Credit Union By-Laws and the Credit Union (Amendment) Act, 2015

MEMBERS BENEFIT


Members are the owners of SCU. As a result they have the right to make positive contributions towards the improvement of the financial co-operative both in terms of management and operationsl

MEMBERS BENEFIT


Advantages of being a member of Seychelles Credit Union

The principle of one man one vote is very much in focus as each member regardless of the size of his/her account is entitled to one vote at the Annual General Meeting and can also stand for election for vacant positions on the Board of Directors and Supervisory Committee.
By virtue of joining together to create a pool of savings which can be mobilised to assist and help those in need of finance, members develop a sense of belonging to a big comforting family that can be relied upon during “rainy” days.
SCU exists to serve its members only and services offered are competitive in price and comparable in type to those offered by commercial banks. Such services are provided to members on a one to one basis in a friendly cordial manner.
SCU is a safe haven for your savings and investments. It operates under the Credit Union Act 2009 and Bye-laws made the Act. Apart from having its own Supervisory Committee which members elect, the Central Bank of Seychelles is the Regulator Authority responsible for regulating and supervising the activities of SCU in order to ensure its full compliance with regulations, rules, guidelines in force as well as best management and operational practices.
Your savings and loans up to the value of SCR250,000 are covered under the Savings and Loans Protection Scheme . In the event of death or permanent disability of a member, the beneficiary of the member or the member him/herself, depending on the age of the member at the time of the incident, may benefit twice the amount of his/her savings up to the maximum specified above and any outstanding loan of the member, up to the maximum specified above will be treated as fully repaid.

 as fully repaid.

Seychelles Credit Union HISTORY

Seychelles Credit Union HISTORY
http://www.scu.sc

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The Origin (1945 - 1969)
According to records, a thrift society was established in Seychelles sometime around the year 1945

HISTORY


The formation of this society was not brought about by the people who needed it despite the fact that the need for one was very evident.  There were only three post office savings banks and one shop acting as a banking agency around this period.  No proper banking facilities existed then and such a situation presented a heaven for loan sharks who became rich in no time.

The thrift society was started on the initiative of an expatriate government officer who happened to be the chief Income Tax Officer.  Some young civil servants were encouraged to join the society and to save regularly .  After a few months the society had accumulated considerable funds and started giving loans to its members.  The fact that progress and expansion did not happen is due to several factors.  Firstly, people were suspicious and they believed that this initiative was another government trick to probe into the financial position of the people so heavier taxes could be imposed on them.

Secondly, when the expatriate government official left the country, the thrift society had not had the time to establish itself firmly.  Very few of its members had the opportunities to make themselves familiar with the Credit Union principles.  A few months later after the departure of this official, the few members of the society had to terminate its activities and in this process quite a few of the young civil servants lost a considerable proportion of the money they had invested into the society.

In 1969, an Irish Credit Unionist by the name of Mr. Patrick HASSAN, employed as a lecturer at the Seychelles Teacher’s Training College introduced the Credit Union principles to a group of trainee teachers and other colleagues.  Contact was established with the Irish Credit Union League, to provide samples of promotion materials, model by-Laws, passbooks as well as samples of other documentations and stationery.

Registration & developments (1970 - 1984)
The Seychelles Credit Union (SCU) was registered on 19th March 1970 under the Co-operative Societies Act of 1960. The Roman Catholic Church in Seychelles provided a rent free office as a major contribution to allow the newly established Credit Union to start its operations. Financial assistance was equally obtained from the Catholic Relief Services towards the year 1971 for the purchases of furniture and equipments.

Around that same year, contacts were made with CUNA (USA) and Life Savings and Loan Protection insurance were provided through CUNA Mutual.   After 6 years of operations, the Seychelles Credit Union became a member of African Confederation of Cooperative, Savings and Credit Association(ACCOSCA) in 1976.

At the beginning, the Seychelles Credit Union was run by volunteers up to December 1977 when it recruited its first full time employee in the capacity of Mr.Emile Esparon.From 1978 up to 1989, the Seychelles Credit Union received financial assistance from the Konrad Adenauer Foundation (KAF) to meet part of its operating costs. This enabled SCU to become self-financed by 1989.  Extra help was also received from the Co-operative Development Foundation of Canada (CDF) between 1982-1984 for promotion and activities. The assistance was solicited with a view to support SCU during its infancy stage of development and to draw on the expertise of well-established Credit Unions beyond/the border of Seychelles.

Governing Body/ Legislation (1987 - 2005)
In December 1987, the Co-operatives Act of 1960 was replaced by a new Co-operatives Act 1987.  The Seychelles Credit Union was re-established under the Seychelles Credit Union Establishment Order of July 1988.  The Ministry of Finance is currently the principal regulator of co-operatives in the Seychelles.

In April 2004, certain powers and performance of duties previously vested with the Ministry of Finance were delegated to the Central Bank of Seychelles (CBS). Following two inspections by the Central Bank of Seychelles, a series of weaknesses in SCU’s governance were highlighted.

Subsequently, the Department of Finance dissolved the elected Management Committee in July 2005 and replaced it with committee of three persons in line with Section 16(i) of the Co-operatives Act 1987. This committee was given a two year mandate to rectify the deficiencies highlighted in the reports.  One of the main achievements of this committee has been the introduction of a new legal framework, namely the Credit Union Act, to modernize the Credit Union movement in Seychelles as well as a complete revision of SCU by-laws.

The Seychelles Credit Union is a members owned cooperative.

The Seychelles Credit Union is a members owned cooperative.

ABOUT US
The Seychelles Credit Union is a members owned cooperative.

SAVE REGULARY

Whether you’re looking for a traditional savings plan, a high-rate flexible account, or you want to lock in a guaranteed return, SCU has the savings options that help your money grow.

BORROW WISELY

No hidden fees or transaction chargesReasonable & affordable interest ratesRepayment terms to suit youNo penalty on early repayementAdditional Lump Sum repayments


Since our shareholders are the members themselves, we can concentrate on giving them competitive rates and excellent service. We believe we should be accountable to them. Our approach is based on members working together and reaping the benefits together, hence our motto:

SAVE REGULARLY. BORROW WISELY. REPAY PROMPTLY.

The website has been developed with the aim of making our services readily available to all Seychellois residing in and outside Seychelles.  SCU reckons that this approach will be beneficial for its continued growth as an established financial institution.

Our Values are:

Co-operation
Trust
Moral integrity
Financial prudence
Caring for members
Social responsibility
Cooperative education
Seychelles Credit Union Mission Statement

As the only community-based savings and credit cooperative society (Credit Union) in Seychelles, the Seychelles Credit Union has the mission of promoting thrift amongst its members to enable it to provide quality and fairly priced financial services to the community sphere through putting people before profits and deliver financial services that not only meet but surpass members’ expectations.

Our vision is to strive to become a household name amongst members of our Community.

Our Objectives

Creation of a pool of funds to provide credits/loans to members
Mobilisation of savings amongst its membership
Promote thrift amongst its membership
Provide financial services at affordable and competitive rates of interest
Encourage good governance, transparency and democratic practices
Empower members so that they became self-reliant.Moral integrity
Organisation Chart
The structure of the Seychelles Credit Union Organisation is as follows:

Organisation Chart
The structure of the Seychelles Credit Union Organisation is as follows: