The Co-operative Bank (United Kingdom,)

The Co-operative Bank

The Co-operative Bank plc is a retail and commercial bank in the United Kingdom, with its headquarters in Balloon Street, Manchester.

The bank markets itself as an ethical bank, and seeks to avoid investing in companies involved in certain elements of the arms trade, fossil fuel extraction, genetic engineering, animal testing and use of sweated labour as stated in its ethical policy. The ethical policy was introduced in 1992 and incorporated into the Bank's constitution in 2013.In 2002, the parent company Co-operative Group Limited brought the bank and the Co-operative Insurance Society under the control of a newly incorporated holding society, Co-operative Financial Services, which became the Co-operative Banking Group in 2011.

As Britain's seventh biggest lender, the majority of the bank's revenue is made from interest charges on loans.

In 2013-14 the bank was the subject of a rescue plan to address a capital shortfall of about £1.9 billion. The bank mostly raised equity to cover the shortfall from hedge funds, while the Co-operative Group became a minority shareholder holding a 20% stake in the bank.

History

The Stockport Pyramid building provides administrative services, including a call centre for Smile and the Co-operative Bank.
The bank was formed in 1872 as the Loan and Deposit Department of the Co-operative Wholesale Society, becoming the CWS Bank four years later. However, the bank did not become a registered company until 1971 In 1975, the bank became the first new member of the Committee of London Clearing Banks for 40 years and thus able to issue its own cheques.

In 1974 the Co-operative Bank offered free banking for personal customers who remained in credit. It was also the first clearing bank to offer an interest-bearing cheque account, in 1982.


The Co-operative in Balloon Street, Manchester
Following the UK Government's acquisition of 43.4% of Lloyds Banking Group in 2009, the Co-operative Bank entered into negotiations with Lloyds Banking Group to purchase over 600 of its branches. European Commission laws restricting state aid required the sale of the branches in a divestment known as Project Verde. In February 2012, press reports suggested that the Financial Services Authority (FSA) might intervene to block the purchase due to concerns about the Co-operative Bank's ability to integrate IT systems. It was rumoured that the FSA was particularly concerned that the Co-operative bank was still behind schedule in the integration of its IT systems with those of the Britannia Building Society, despite the fact that the merger took place in 2009.

The purchase was publicly announced in July 2012 and it was revealed that the branches would be initially split from Lloyds under the resurrected TSB brand. On 24 April 2013 the Co-operative bank announced that it had decided against proceeding with the deal. The reasons given were the poor economic outlook in the UK and an increase in financial regulation requirements.[14] The Financial Times had previously reported that the Co-operative would require a £1 billion increase in capital to support enlarging the bank.

2013 financial crisis

The Co-operative Bank branch in Ealing, West London
In March 2013 the bank reported losses of £600m. In May Moody's downgraded its credit rating by six notches to junk (Ba3) resulting in the chief executive Barry Tootell's resignation.

Over the weekend of 15–16 June 2013 negotiations between the Co-operative Group and its regulator the Prudential Regulation Authority culminated in reports  that the Bank had a shortfall in its capital of about £1.5 billion, and that this would be filled by a procedure known as a "bail-in" scheme. Bank Chairman Paul Flowers resigned shortly before the announcement of the shortfall. A press release by the bank issued on 17 June 2013 explained that the scheme would compel subordinated (also known as junior) bondholders to convert some or all of their assets from debt instruments to ownership (“equity”) shares of uncertain value which would be listed on the London Stock Exchange and a new fixed income instrument. The scheme contrasted with the rescues of other British banks in 2008 and 2009 when central government introduced new capital into the failed institutions. Details of the outcome for small retail investors in the Bank were uncertain at the time of the June announcement, but it should be noted that there was no suggestion that ordinary deposits in the Bank would be put at any additional risk by the rescue, as they would continue to be covered by the existing compensation scheme. The bondholders had the opportunity to seek to reject the restructuring proposed, and an alternative option of the Bank of England taking over the ownership of the bank under the Banking Act 2009 special resolution regime was considered.

In September it was discovered that there was a £3.6bn funding gap between the value the Co-operative Bank placed on its loan portfolio and the actual value it would realise if forced to sell the assets.[21] In October it was reported that the Co-operative Group had been forced to renegotiate the bank's £1.5bn rescue with US hedge funds Aurelius Capital Management, Beach Point Capital Management, and Silver Point Capital that owned its debt. As a result, the Group would lose majority control of its banking arm with the proportion of the bank's equity remaining under its ownership dropping to 30%, less than the 75% proposed in the original rescue plan.[7] The plan passed a creditor vote and on 18 December 2013 a judge on the UK high court allowed the plan to move forward.

An independent review commissioned by the bank, published in April 2014, concluded that the root of the bank’s problems lay in its 2009 takeover of the Britannia Building Society and poor management controls.

2014–15 rehabilitation

The bank's current chief executive Niall Booker, a former banker at HSBC who nursed HSBC's sub-prime lending business back to health,[24] was appointed in 2013.[25] Since then he has been attempting to refocus the bank's strategy as a retail and SME lender.

Flotation on the London Stock Exchange was planned for 2014[26] but the plans were abandoned in March 2014 when a rights issue was announced to raise an additional £400 million.[28] In May 2014 the bank finalised the £400 million fundraising plan and obtained shareholder approval, which reduced the Co-operative Group's ownership of the bank to just over 20%.
The Co-operative Bank lost 38,000 current account customers in the first half of 2014 after suffering what it called a “hurricane of negative publicity” following the lender’s near collapse.However, this loss was partly offset by 9,700 who switched to the bank – double the number who joined six months earlier,resulting in a net loss of 28,199 customers (around 2% of the bank’s total).[30] The rate of loss slowed significantly in 2015, resulting in a loss of 2,250 current account customers between January and August of that year.

Nevertheless, the bank reported progress in its rehabilitation, as its losses sharply narrowed and it strengthened its capital position. Figures released by the bank in August 2014 for the first half of the year showed a pre-tax loss of £75.8 million was identified, compared to £844.6 million for the same period in 2013. Co-op Bank also said its core Tier 1 capital ratio, a key measure of financial strength, stood at 11.5 percent at the end of June and was expected to be significantly above the previous guidance of 10 percent at the end of 2014.[4] However the bank, as expected, was unable to meet the new Bank of England financial stress tests in December 2014.

In late 2014 the bank sold its repossessed properties business for £157.5 million, and its ATM operating business for £35 million. It also outsourced its mortgage servicing operation to Capita, transferring about 660 staff to Capita.

The narrowing of losses was driven largely by a faster-than-expected reduction in unwanted assets, including significant parts of the portfolio of sub-prime mortgages the bank inherited from its merger with Britannia Building Society. Non-core assets reduced by £1bn, and credit impairments improved. In August 2014 the bank said it had cut staff numbers by 21 percent (about 1,560 workers) in the previous year and that there were more job losses to come. The bank had also closed 46 branches, reducing its branch network by 16 percent since the start of 2014. Another 25 would close in the remainder of the year, it said.[4] In August 2015 the bank said that it had closed 62 branches over the previous year, taking the total down to 165. This was partly due to a 28% drop in in-branch transactions resulting from a change in demand from branch to internet banking. By that point staff reductions had exceeded 2000 workers.

In December 2014 a Bank of England assessment measured the bank's core capital ratio (a measure of financial strength) at minus 2.6%. As a result, the bank appointed Bank of America Merrill Lynch to help sell £6.6 billion of mortgages.

The bank is not expected to make a full-year profit until 2017 at the earliest.[34] In August 2015 Booker said that he expected the bank would be "part of the consolidation of some of the country’s smaller banks", and that stock-market floatation would remain an option for the future. He said that there had been "no meaningful discussions" concerning the suggestion that the hedge funds which own 80% of the bank's equity were looking at buying up the Co-operative Group’s remaining 20% holding.

Membership prior to financial crisis

Despite its name, the Co-operative Bank was not itself a true co-operative as it was not owned directly by its members. Instead it was part-owned by a holding company which was itself a co-operative – the Co-operative Banking Group. Its customers could, however, choose to become Co-operative Group members and hence indirectly acquire an ownership interest in the bank, earning dividends on their account holdings and borrowing with the Bank.

The bank also had approximately 2,500 preference shareholders, which were irredeemable fixed-interest shares. These shareholders could attend the bank's general meetings, but only had speaking and voting rights if the dividend is in arrears, or on any resolution varying their rights or winding up the bank.

Unlike other co-operative banks, such as the Dutch Rabobank, the Co-operative Bank did not have a federal structure of local banks, instead being a single national bank.

In 2015 the campaign group Save our Bank (which has 10,000 supporters) proposed a plan for customers to directly own part of the bank. A "Union of Co-op Bank Customers" would be created along with a mutual fund that would buy a minority stake in the bank.

Ethical policy

A statue of cooperative pioneer Robert Owen stands in front of the bank's head office in Manchester. The statue was removed in May 2013.
The Co-operative Bank operates an Ethical Policy[44] and has an ethical code of conduct as part of its constitution. The Ethical Policy is overseen by a values and ethics committee chaired by an independent director.The Ethical Policy excludes the provision of any banking services to businesses which take part in certain business activities or sectors. These include a commitment not to finance "the manufacture or transfer of armaments to oppressive regimes" or "any business whose core activity contributes to global climate change, via the extraction or production of fossil fuels". The bank estimates that it has declined finance totalling in excess of £1bn since the policy was introduced in 1992. The Policy is based on a regularly renewed customer mandate in the form of a survey. In the 2005/06 financial year, whilst making profits of £96.5 million, it turned away business of nearly £10 million.

The Policy only applies to the balance sheet of The Co-operative Bank and never applied to other Co-operative Group businesses such as The Co-operative Asset Management, the Group's asset management business. Nevertheless, this business received criticism in 2009 for not following the Bank's Ethical Policy and in 2013 it was sold to the Royal London Group.

In June 2005, the bank closed the account of a Christian evangelical group (Christian Voice) because of its standpoint on homosexuality, specifically the group's "discriminatory pronouncements on grounds of sexual orientation". They said the group was "incompatible with the position of the Co-operative Bank, which publicly supports diversity and dignity". Christian Voice said the bank was discriminating against it on religious grounds. Gay Times subsequently selected the Co-operative Bank for its Ethical Corporate Stance Award.

In late 2014 the bank undertook an advertising campaign to promote its Ethical Policy. The Co-operative Bank brand subsequently came top in YouGov's survey of the most improved brands of 2015.

Divisions
Smile
Main article: Smile (bank)
The bank launched a separate internet-only operation known as Smile in 1999, which, according to surveys, has the highest satisfaction ratings among UK banks and has received many awards in recent years for customer service and online banking. It has around half-a-million customers. Smile has its call centre based at a unique pyramid building in Stockport.

Britannia[edit]
Main article: Britannia (former building society)

A high-street branch of the Britannia in Gloucester
In October 2008, it was reported that Co-operative Financial Services was in talks with Britannia Building Society with a view to sharing facilities and possibly a full merger.

Such a venture was facilitated by the passing of the Building Societies (Funding) & Mutual Societies (Transfers) Act 2007 although further secondary legislation was required before such a merger could take place.

On 21 January 2009, Co-operative Financial Services and Britannia Building Society agreed to a merger, with the new 'super-mutual' being brought under the stewardship of The Co-operative Group. The proposed merger was subject to a vote by Britannia's members at their AGM at the end of April 2009.

On 29 April 2009 Britannia's members voted overwhelmingly in favour of the merger.

In the short term, both Britannia Building Society and the Co-operative Bank continue operating their own products, branch networks and systems. All Britannia branches were due to be rebranded under the Co-operative name by the end of 2013, but this has been abandoned in the wake of the financial crisis, with a great many simply closing and only a smaller number being retained and converted.

Independent financial advice
The Co-operative Bank withdrew its CIFA network in October 2011, and this was replaced by the Co-operative Banking Financial Planning Service, which is provided by AXA Wealth. AXA Wealth was also withdrawn, in April 2013. The Co-operative Bank has not replaced AXA Wealth.

Technical problems
In 2009, the Co-operative Bank received considerable public criticism from business customers for problems with the bank's internet banking service. It subsequently emerged that the service crashed when more than 130 users logged on simultaneously, and some customers were left unable to access their accounts for days.

In 2011, some Co-operative Bank customers were left temporarily unable to use their debit cards as a result of IT problems.

COPY RIGHT BY - https://en.wikipedia.org/wiki/The_Co-operative_Bank

REBO BANK - NEDERLAND

History
We emerged from small agricultural cooperative banks, founded by farmers and horticulturists beginning in the late nineteenth century. Formed to provide credit for their members. This cooperative foundation and the philosophy of cooperation underpinning it have remained our guiding principles throughout our over 115-year history.

The founding father of cooperative agricultural credit is Friedrich Wilhelm Raiffeisen, a German rural mayor in the latter half of the nineteenth century. In the 1860s, he founded an agricultural credit union that extends local farmers credit from savings collected from local communities. Raiffeisen's concept of the credit cooperative soon takes root in the Netherlands and the first agricultural cooperative banks in this country appear in 1895.

From agricultural cooperative bank to Rabobank

The ideal of standing stronger together catches on in the Netherlands and across the Dutch countryside farmers and horticulturists begin establishing their own local agricultural cooperative banks. They become owners, members and managers of the bank, sharing responsibility accordingly. Rather than paying out the profits to the members, they are added to the reserves year by year, gradually building up a solid foundation for hard times and lean years.

Following Raiffeisen's model, by the end of the nineteenth century the first Dutch local banks established two umbrella organisations: the Coöperatieve Centrale Raiffeisen-Bank in Utrecht and the Coöperatieve Centrale Boerenleenbank in Eindhoven. These two organisations become the central bank for the local banks and play a facilitating role in a number of areas. The two merge in 1972 to become Rabobank, a cooperative in which all local Rabobanks are members and shareholders. They remain so to this day.

In 1900, the two central institutions had a total of 67 affiliated agricultural cooperative banks. At its high point in 1955, there were 1,324. From that point on, local mergers reduced the number of local banks dramatically and within a few years from now the organisation will consists of approximately one hundred local Rabobanks.

Move to digital brings new customers

Over the course of the 20th century, the originally small credit cooperatives of farmers and horticulturists are rooted in village and town. But gradually, the changing economy increases the demand for banking services in all sectors of society. 

In the latter half of the century, the bank begins welcoming an increasing number of (non-agricultural) businesses and later also private individuals, as customers. It is advancements in computing technology and ICT that make this possible. Giro payments, an early form of electronic payment, become hugely successful, initially in the form of larger employers paying salaries by direct deposit instead of in cash. Smaller employers soon followed.
Subsequently, private individuals more commonly began paying cashless. Banks, meanwhile, introduce new products, such as payment cheques and giro collection forms. Alongside savings and loans, customers could now also go to their banks for home mortgages, payment services, investment and insurance. For business clients, the banks expand their range of services, adding business financing, leasing, payment transactions and insurances.

Trusted name on the street and online

In the 1960s, as the banks' customer portfolios swell, the Raiffeisen and Agricultural Cooperative Banks opened more and more branch offices in the big cities and new housing estates. With the advent of the ATM in the 1980s, the payment terminal in the 1990s and internet banking at the turn of the century, customers come in to the bank less and less and the number of branch offices declines.

The continued rise of the internet drives new changes and for both business and private banking customers Rabobank is consistently a leader in offering banking products and services through the virtual channels that we now take for granted.

Subsidiaries and associates

In the second half of the 20th century, specialised subsidiaries and associates take on new activities, among them Interpolis (insurances), De Lage Landen (leasing) and Robeco (asset management). These business units offer their products and services through local Rabobanks, but from a legal perspective are subsidiaries or associates of Rabobank. Gradually, the Rabobank Group is born.

Active internationally

The group's first international activities begin in the early 1980s, initially for business clients doing business internationally. The growth and expansion of the 1980s sees the bank opening offices in major financial centres and taking over retail banks in agricultural areas such as Australia and the US state of California. In 2002, Rabobank launches International Direct Banking (IDB), to tap into the new opportunities the internet offers for savings and banking services.

Big in food & agri

We have developed from a purely Dutch bank into an international financial services provider for our Dutch customers. Today, we are also made up of international clients and our network covers the world. But we still focus primarily on the food & agri business in which we began and in which our vast experience offers the greatest added value. This is what has enabled us to grow into an international leader in this sector.

Sources archive

In Rabobank's digital sources archive you can search our collection of old magazines and annual reports , published by Rabobank and her predecessors, the Coöperatieve Centrale Boerenleenbank (CCB) en de Coöperatieve Centrale Raiffeisen-Bank (CCRB).

We emerged

 from small agricultural cooperative banks, founded by farmers and horticulturists beginning in the late nineteenth century. Formed to provide credit for their members. This cooperative foundation and the philosophy of cooperation underpinning it have remained our guiding principles throughout our over 115-year history.

The founding father of cooperative agricultural credit is Friedrich Wilhelm Raiffeisen, a German rural mayor in the latter half of the nineteenth century. In the 1860s, he founded an agricultural credit union that extends local farmers credit from savings collected from local communities. Raiffeisen's concept of the credit cooperative soon takes root in the Netherlands and the first agricultural cooperative banks in this country appear in 1895.

From agricultural cooperative bank to Rabobank

The ideal of standing stronger together catches on in the Netherlands and across the Dutch countryside farmers and horticulturists begin establishing their own local agricultural cooperative banks. They become owners, members and managers of the bank, sharing responsibility accordingly. Rather than paying out the profits to the members, they are added to the reserves year by year, gradually building up a solid foundation for hard times and lean years.

Following Raiffeisen's model, by the end of the nineteenth century the first Dutch local banks established two umbrella organisations: the Coöperatieve Centrale Raiffeisen-Bank in Utrecht and the Coöperatieve Centrale Boerenleenbank in Eindhoven. These two organisations become the central bank for the local banks and play a facilitating role in a number of areas. The two merge in 1972 to become Rabobank, a cooperative in which all local Rabobanks are members and shareholders. They remain so to this day.

In 1900, the two central institutions had a total of 67 affiliated agricultural cooperative banks. At its high point in 1955, there were 1,324. From that point on, local mergers reduced the number of local banks dramatically and within a few years from now the organisation will consists of approximately one hundred local Rabobanks.

Move to digital brings new customers

Over the course of the 20th century, the originally small credit cooperatives of farmers and horticulturists are rooted in village and town. But gradually, the changing economy increases the demand for banking services in all sectors of society. 

In the latter half of the century, the bank begins welcoming an increasing number of (non-agricultural) businesses and later also private individuals, as customers. It is advancements in computing technology and ICT that make this possible. Giro payments, an early form of electronic payment, become hugely successful, initially in the form of larger employers paying salaries by direct deposit instead of in cash. Smaller employers soon followed.
Subsequently, private individuals more commonly began paying cashless. Banks, meanwhile, introduce new products, such as payment cheques and giro collection forms. Alongside savings and loans, customers could now also go to their banks for home mortgages, payment services, investment and insurance. For business clients, the banks expand their range of services, adding business financing, leasing, payment transactions and insurances.

Trusted name on the street and online

In the 1960s, as the banks' customer portfolios swell, the Raiffeisen and Agricultural Cooperative Banks opened more and more branch offices in the big cities and new housing estates. With the advent of the ATM in the 1980s, the payment terminal in the 1990s and internet banking at the turn of the century, customers come in to the bank less and less and the number of branch offices declines.

The continued rise of the internet drives new changes and for both business and private banking customers Rabobank is consistently a leader in offering banking products and services through the virtual channels that we now take for granted.

Subsidiaries and associates

In the second half of the 20th century, specialised subsidiaries and associates take on new activities, among them Interpolis (insurances), De Lage Landen (leasing) and Robeco (asset management). These business units offer their products and services through local Rabobanks, but from a legal perspective are subsidiaries or associates of Rabobank. Gradually, the Rabobank Group is born.

Active internationally

The group's first international activities begin in the early 1980s, initially for business clients doing business internationally. The growth and expansion of the 1980s sees the bank opening offices in major financial centres and taking over retail banks in agricultural areas such as Australia and the US state of California. In 2002, Rabobank launches International Direct Banking (IDB), to tap into the new opportunities the internet offers for savings and banking services.

Big in food & agri

We have developed from a purely Dutch bank into an international financial services provider for our Dutch customers. Today, we are also made up of international clients and our network covers the world. But we still focus primarily on the food & agri business in which we began and in which our vast experience offers the greatest added value. This is what has enabled us to grow into an international leader in this sector.

Sources archive

In Rabobank's digital sources archive you can search our collection of old magazines and annual reports , published by Rabobank and her predecessors, the Coöperatieve Centrale Boerenleenbank (CCB) en de Coöperatieve Centrale Raiffeisen-Bank (CCRB).

Stories of Various Sacco Societies in Kenya

Stories of Various Sacco Societies in Kenya

 

 

 

 

 

 

2 Votes

1. USHURU Savings and Credit Co-operative (Sacco) Limited was started in 1970 by employees of the then Customs and Excise Department, Ministry of Finance, under the name of Customs & Excise Workers (CUEW) Sacco. At inception, its membership was limited to employees of the Customs Department, although those who were transferred from Customs to other Government Departments enjoyed the right to retain their membership.

When Kenya Revenue Authority (KRA) was formed in 1995, the CUEW Sacco By-laws, in force at the time, did not allow recruitment of members outside the common bond. This necessitated changes to the By-laws in order to allow membership from other Government Ministries and Parastatals. In 2002, the CUEW Sacco changed its name to USHURU Sacco Limited to reflect the new all-inclusive membership that now consisted of KRA employees.

2. Stima SACCO was established in 1974. It was formed to act as a means of facilitating savings and to provide affordable credit to employees of the then east African Power & Lighting Company. The Society is therefore 36 years old. On the other hand the society responded to members banking needs and introduced the Front Office Service Activity (FOSA) in April 2003 to offer basic banking Services to members.

3. From our humble beginnings in 1993, Unaitas was registered as a Savings and Credit cooperative Society known as Murang’a Tea Growers. A pioneering group of farmers had come together, pooling their resources to create a financial basket, where they could save and advance loans at affordable rates.

The Sacco later adopted the name Muramati Sacco in 2007 when administrative areas of operation expanded beyond Murang’a, and it opened its common bond to not only serve tea growers, but also medium size entrepreneurs and salaried employees. In line with its growth and expansion strategy, Muramati rebranded to Unaitas in 2012- adopting a strong, bold brand that is inclusive of members from all walks of life, doing things that are not ordinary in ways that are progressive.

4. Shirika Sacco was registered on 24th April,1969 by the founder members of the Ministry of Co-operative Development and Marketing which is the parent ministry.

Common BondOriginally membership was drawn from the ministry of Co-operative Development but later, due to changes in the economy, it was found necessary to widen this scope to include all other government ministries, all cooperative related organizations;  and other reputable public organizations,  but which are approved by the Annual General Meeting. With this enlarged scope, we are able to retain our members who change or quit employment for various reasons. Regardless of the employment status, members are treated equal and observe the operating policies and procedures.

MembershipSince registration in 1969, the Society has had upward growth in membership.  During its early years of operation, and up to 1999 membership levels had reached a ceiling of 3500 members. However due to the Government reform programmes which aimed at downsizing its workforce in the year 2000; the Society lost more than half of its membership.

The real effect was that the Sacco had to continue operations with:

• Reduced member capacity
• Reduced capital base due to withdrawals
• Non performing loans

Loans from retrenched members were not recoverable from retrenchment package but management enhanced recovery procedures which were very successful and no bad debts were declared.
On recovery process management adopted other governance strategies particularly:

• Member recruitment drive
• Fixed percentage of share contribution rate
• Improved service delivery

The above strategies along with others have successfully seen the Society membership grow to 4210 as at today.  Our operations and financial status are stable with total shares & Deposits of Ksh. 876,639,677 and a loan portfolio of Ksh. 869,153,767.

5. Boresha Savings and Credit Cooperative Society Ltd Originally Baringo Teachers SACCO Society Ltd is one of the well managed Sacco Licensed by SASRA as deposit taking SACCO.Registered on 31^st August 1976 under Cap 490 of the Laws of Kenya. Its area of operation is the Republic of Kenya with base in Baringo County.

The society has eight branches spread across Six Districts of Baringo County and the Neighbouring Towns.

Member Comprises Teachers in Primary and High Schools,Civil Servants,Institutions’ Employees,KNUT and NGO’s staff classified as salaried Members Category “A”.

The Business Community, Micro-Credit Members and SME’s are classified as Category “B” with Main services in FOSA (Front Office Services Activity) and Micro credit Activities.

6. Chai Sacco was registered in 1973 to offer financial services to KTDA workers both at the factories and Head Office.

In 1999, front office service activities were started and have evolved to a fully fledged FOSA at the Head Office with one branch at Kericho (Litein Branch).In 2005, the common bond was opened to include members from well established business organizations and tea farmers.

The society has been recognised internationally by World Council of Credit Union(WOCCU) in Micro-Finance Expansion Programme (MFI) among other sixteen Saccos in the contry as a model for others.

The society has also been selected by Micro-Save Africa in product Development Programme from micro enterprises to assit the society in production development process

7. Metropolitan Teachers Sacco Society (formerly Kiambu Teachers Sacco which was registered on 10th February 1977,CS NO: 2628) started operations in 1978.
The society intended to serve primary school teachers in Kiambu District, Central Province. Over the years, the society’s by-laws have been amended and the membership is now comprised of Teachers ,Kenya National Union Of Teachers(KNUT),Civil Servants, Disciplined Forces, Local Authorities, NGO’s, Central and County Governments, Private Companies, Approved Business Entrepreneurs, Groups ,Other Institutions and Kenyans Residing in the Diaspora hence the change of name to Metropolitan Teachers Sacco Limited to cater for the diversity.

As at 30th june 2012, the society’s membership stood at 30,086 .Currently the society has 12 Board of directors (Management board 9 and Supervisory board 3) and a work force of 32 employees.

8. Harambee Sacco: from a Merry-go round, into a multi – billion institution.

Set up by a handful of small income earners and struggling subordinate staff at the Office of the President (OP), way back in 1970; Harambee Sacco is today a multi-billion shilling institution, with thousands of members and an expansive country-wide network that few financial institution in Kenya can match.

With a net asset base of about Ksh. 15 billion,  Harambee Sacco, is feted as the biggest membership base Sacco in Kenya, and the leading in Africa; boasting of over 93, 000 members across the country.

From a single unit at the office of the President, Harambee Sacco has now been devolved into 155 delegate or electoral branches across Kenya, serving our members in the remotest of locations in the country. Indeed, Harambee Sacco continues to enjoy a customer penetration level that goes way down into the minute administrative level in Kenya with chiefs and sub-chiefs in the locations and sub-locations being members of Harambee Sacco.

The 155 delegate or electoral branches are supplemented by five major operational branches set-up in major towns like Kisumu, Mombasa, Nairobi, Eldoret and Nakuru.

9. Afya Co-operative Savings and Credit Society was registered on 
8th May 1971 by some twenty founder members/promoters. Membership has grown progressively over the past forty years and to date there are over 38,000 members.

10. Elimu Sacco was registered in 1972 by employees from the Ministry of Education. It is currently situated in South “B”, Elimu House on Mubiru Road Off Daidai Road.

11. Wakenya Pamoja Sacco Society Limited (WPS) was started in 1976 as a Union Banking Section of Kisii Farmers Co-operative Union (KFCU). It became autonomous in 1992 under the name Gusii Farmers Rural Sacco Society Limited (GRFS). The Society has, over the years, undergone major governance reforms which have facilitated: the change of name which was in line with the strategic move to expand geographically and explore other financial opportunities; and diversification of the membership to increase the society’s scope beyond tea and coffee to include value chain financing, microfinance, business development financing, asset financing among others.

12. Kenya Bankers Savings and Credit Co-operative Society was registered on 14th Feb 1975. The society’s core business is to mobilize savings from the members out of which credit is approved at affordable interest rates. Its members are drawn from banks, non-bank financial institutions, building societies and other money related institutions, with over 13,000 active members.

13. Mwalimu Cooperative Savings & Credit Society Limited(SACCO) was formed and registered in the year 1974 under the Co-operative Societies Act as a SACCO Society whose main objective is to mobilize savings and provide credit to its members.

Its Current membership of over 52,664 in 2012 is drawn mainly from:

• TSC Secretariat
• TSC teachers in Secondary schools & Tertiary institutions,
• TSC teachers in Primary schools (Diploma OR Degree holders)
• Mwalimu National Sacco Society Staff
• Members’ Spouses in formal employment.

14. Young United Entrepreneurs Sacco was registered in 2012 under the co-operative Act of kenya with an aim to empower and support young entrepreneurs financially. The sacco is currently located in Ruiru town, with members drawn from the proprietors of Small and Medium Enterprises(SMEs) and their employees.

15. Kilifi Teachers Sacco. Less than 100 members in Malindi started mobilizing savings (shares) on 26th June 1972 but it was not until 14th September 1974 when the society was officially registered. The major objective of the Sacco has all along been to afford members-most of whom are low-income earners- an opportunity to save, thereby creating a pool from which they can borrow at an affordable interest for productive and provident purposes. Statistical information shown below gives an indication of the level of the Saccos growth since inception.

From the time of inception upto 1990, the sacco offices had been based in Malindi, until they were shifted to Kilifi. However, due to the rapid growth, the Sacco has now a Head office and two branches at Kilifi, Malindi and Mariakani respectively.

16. Hazina Sacco Society Limited is a nationwide Savings and Credit Co-operative Society established in 1971 and registered under Co-operatives Societies Act (Cap 490) of the laws of Kenya with the main objective of affording its members an opportunity to accumulate their savings, thereby creating a source of loanable funds.

Members of the Society are drawn from various Government Ministries, Parastatals, Non- Governmental Organizations and Private Sector. Currently, the Society has over 10,000 members .

The goal is to be a leading and best-managed SACCO Society in provision of quality products and services to members and stakeholders while ensuring high returns on Investment.

17. Fundilima Sacco Society Ltd was registered on 5th January 1982 by the commissioner of cooperative Development and marketing. The name fundilima was derived from the mother company which means (Fundi) for the technology and (Lima) for Agriculture. The main office of the society is situated within the main campus of Jomo Kenyatta University of Agriculture and Tech (JKUAT)

The pioneers of this society decided to register it to enable its members get a vehicle where they can be able to mobilize their savings and get cheaper credits in order to meet their daily financially and social needs.

The society has been able to meet members’ challenges. Some of them have been able to pay dowry through credits from the society; students have been able to accomplish their education, members have been able to purchase plots, buy vehicles, build houses, pay hospital bills, educate themselves, travel abroad and accumulate savings among other things.
Since its inception the society has been able to grant loans to its members well over Kshs.2, 500,000,000.00(two billion five hundred million) with the highest loaned amount being granted Kshs 3,000,000.00(three million)

Fundilima Sacco Society has continued to give higher returns to its members. In the last financial year the society paid out dividends to its to its members at the rate of 22% and members deposit earned interest at the rate of 8.5%.During Ushirika day celebration, we were awarded a certificate for being one of the highest dividend paying society for the year 2007.

18. In 1998 the Kenya Medical Association SACCO (KMA SACCO) was registered as a Savings and Credit Co-operative Society to offer financial services to KMA members.
In the year 2001 KMA SACCO published its First Audited Financial Statements. The SACCO has grown tremendously and is positioned as a major financier for medical practitioners countrywide.
In 2012 KMA SACCO amended its by-laws to include pharmacists and other medical professionals including medical students into SACCO membership.

19. Naku Sacco. The society membership is drawn from permanent staff of the following companies in Kenya, Uganda and Rwanda;

Nakumatt Holdings Ltd, Seal Honey Ltd, Sunmatt Ltd, Tusker Mattress Ltd, Motor Boutique Ltd, Eastleigh Mattress, Woolmatt and Eggen Joinex.

20. Maisha Bora Sacco. The Society was formed and registered on 10 th October 1974. Like any other SACCO, the aims were to provide an avenue to enable members save money, thereby create a fund from which to borrow money for personal development.
The Society was registered and lived under the name KIMBO SACCO until October 2003 when the name was changed to Maisha Bora.
Over the years, the SACCO has registered great leaps in savings and loans to members. This has been possible due to commitment of the committee members, dedicated staff, and total support by members. Maisha Bora SACCO is one of the best-managed SACCOs in the country and has enjoyed consistent growth while consistently delivering double digit dividends to its members.

Co-operative Registration in Kenya

Co-operative Registration

 

 

 

 

 

 

4 Votes

HOW TO REGISTER A CO-OPERATIVE
The co-operative Societies Act, Chapter 490 of the Laws of Kenya, states that for a society to be registered with or without limited liability, it has to have its object as the promotion of the welfare and economic interest of its members and has incorporated in its by-laws the following co-operative principles:
(i) voluntary and open membership;
(ii) democratic member control;
(iii) economic participation by members;
(iv) autonomy and independence;
(v) education, training and information;
(vi) co-operation among co-operatives; and
(vii) concern for community in general,
may be registered by the Commissioner as a co- operative society under this Act with or without limited liability. Provided that a co-operative union or an apex society shall not be registered except with limited liability.

HOW TO REGISTER A CO-OPERATIVE
Essentials for registration of co-operative societies.
For a society to be registered under the Act, it must in the case of the primary society, consist of at least ten persons all of whom shall be qualified for membership of the co-operative society in the case of a co-operative union, it consists of two or more registered primary societies in the case of an apex society, consist of two or more secondary societies.

REGISTRATION PROCEDURES
When a member of the public visits a District Co-operative Office with an intention to register a Co-operative Society, he is advised, to make a formal request in writing. This request should include the following:
1. Name of the proposed society,
2. Names of a minimum of ten proposed members (including copies of their ID card, telephone number, physical address, occupation and age).

DOCUMENTS TO BE ATTACHED
1. For formerly employed persons, a letter of confirmation from the employer.
2. For religious based common bond, a copy of certificate of incorporation of the organization accompanied by a letter of approval from the presiding clergy.
3. For Matatu/Transport Societies, copies of at least ten log books of the proposed members vehicles
4. For business people, copies of certificate of incorporation,/business licenses from at least ten proposed members
5. For marketing societies, introductory letter from the area chief to confirm the common bond and expected production
6. For welfare and self-help groups intending to convert to co-operatives, a copy of certificate of registration from relevant ministry.
7. For other informal organizations, a letter of introduction from the area Chief.

PRE CO-OPERATIVE MEETING
Upon receipt of the above documents, the officer shall convene a meeting within a week with the proposed members. The quorum of this meeting (Pre Co-operative Meeting) shall be ten members. The main agenda of the meeting shall be pre co- operative education. During the meeting; the promoters shall appoint interim officials for purpose of overseeing registration.

REQUIREMENTS FOR REGISTRATION

1. Apart from above documents the following will be required:-
2. The proposed by-laws in four copies
3. Filled application for registration form in four copies
4. Supplementary information form in four copies (if any)
5. Economic appraisal in four copies
6. In case of salaried workers, a letter from the employer is needed agreeing check off.
7. Minutes of the pre co-operative meeting
8. Bankers cheque of Kshs 3,700 being application and registration fees

After successful registration, the newly registered society to convene the first general meeting within a month after receipt of the certificate by the interim officials.
Failure to do so, the co-operative officer should recommend to the CCD immediate cancellation of the certificate of registration.