Kewisco Sacco Society LimitedGrowing Together

Core Values & Philosophy (3c2e)

Corporate Governance Commitment Customer Centric Empowerment Engaged Leadership

www.kewiscosacco.org

KEWISCO SACCO SOCIETY LIMITEDWEST END PLACE BUILDING OFF

LANGATA ROADP.O Box 4491-00200 Nairobi

TEL:020-6000671,60006337,0724-253569,0739-253569

email: info@kewiscosacco.org,manager@kewiscosacco.org

Kewisco Sacco Society Limited“Growing Together”

EDITORIAL

Robert Muasya Paul Mbugua

Anthony WasikeRoseanne MwangiPaul Jinaro - Editor

Wangui Moko - Graphic Designer

EDITORIAL TEAM

Saccos are important vehicles that have seen members scale the heights of economic development since inception of the cooperative movement in the country

in 1960s. Since then, over 70% of workers in Kenya have at one time or the other been members of a Sacco.The motto of KEWISCO Sacco is ‘come we grow together’. Our mission statement is “to mobilize resources and provide affordable credit facilities through prudent management practices in collaboration with stakeholders for economic well-being of members”. There are many reasons that make members to take loans. One of the most common reasons is to enable them to acquire property such as land, cars, build houses for their families or finance other assets. In order to benefit from the Sacco, members need not take loans ‘because they can afford to pay the instalments but because the loan will add some value to their lives.Over the past 24 years that KEWISCO has been in existence, it has helped members create wealth and to prosper beyond their employment phase of life. Saccos actively contribute to the attainment of the government’s strategy of wealth creation and poverty reduction among citizens. KEWISCO is working with its members to help achieve this goal. This is happening through the loans given to members over the years. In 2015, the amount of money given out as loans was 540 million shillings and this is growing by the year.Enabling members to save is one of the core reasons why KEWISCO exists. People engage in saving money for different reasons. Some save for a rainy day, others as a base for development and yet others save to meet other needs created by the modern lifestyles. In order to address the varying requirements of members, there are products tailored to meet the needs of every saver and these can be checked out by logging on to our website. Whatever the reason for saving, one basic truth is that savings provide members with a fall-back position in the event that one loses a job.KEWISCO is a Sacco on the move. Over the past few years, we have been able to perform well and meet our obligations to members without resorting to financial institutions to borrow funds. The loans we give are repaid with fixed interest rates with no upward adjustments

common in commercial banks as a result of rules imposed by the financial regulatory authorities. Our membership is growing and we are glad our members believe in their Sacco. With guarantee of members’ loyalty, affordable, and reliable credit to our members, the sky should be the limit. Our members need to continue playing the role of good ambassadors for the Sacco to enable it realise high member recruitment.When this happens, more products will be on offer and our Sacco will grow from strength to strength.The changing laws regulating Saccos have restricted them to their primary role of collecting deposits from members and giving loans. Buying property such as land and houses is no longer a function of these Saccos. For members to continue acquiring property, KEWISCO Housing society was formed. Members are encouraged to join this new offshoot of our Sacco in order not to be left behind. Already this new Sacco is on its first project and prospects are looking good. For those who are still not members, it is time to join and get set to reap benefits. Be on board not a spectator.This Newsletter provides a good reading for members on how to navigate the business of saving and borrowing. Additionally, it contains important information on the Sacco products and advice from practioners on sound culture of borrowing and investing.

CHAIRMAN’S MESSAGE

This year, 2016, we celebrate 24 years since the inauguration of Kewisco Sacco Society Limited. From a humble beginning with only 24 members, the Sacco has grown tremendously and now boasts a membership of 3900.

This growth has come about as a result of support from members, the very owners of the Sacco, who believed that in pooling together our resources we can grow together. Members believed in the strength of togetherness and a number of the original members are still in the Sacco today. We are indeed very proud of them. On behalf of the Board and Staff of Kewisco Sacco Society Limited, I take this opportunity to thank all our members for the immense support that they have given to the Sacco without which the phenomenal growth could not have been realized. The growth of our sacco can be viewed from the growth of various aspects. Our deposits have grown from a modest Ksh 100,000 in 1992 to the current Ksh 630 Million in 2016. Our loans have also grown to Ksh

725 Million in 2016. Membership of the Sacco has also grown to the current 3900 members. The Sacco incorporated affiliate bodies such as David Sheldrick Wildlife Trust, Africa Conservation Centre (ACC), Kenya Tourism Board (KTB), Rhino Ark, Kenya Tourism Federation (KTF), Kazuri limited, Wildlife Clubs of Kenya (WCK), Kenya Society for the Protection and Care of Animals (KSPCA), Africa Network for Animal Welfare (ANAW), Arichem, Birdlife International, Aircraft Leasing Services (ALS), Gravity Solutions and Chrystal Chemicals and Mugie Ranch. We are still open to accommodate more members from other organisations and our current members are requested to introduce workers from other organisations, especially those who have not joined any Sacco to come and join our Sacco because we have opened the common bond restrictions.Our Sacco’s range of products has grown over the years as we attempt to meet the requirements of our members. We are constantly studying the market direction and products on offer and from time to time we tailor new products that are competitive and attractive, and drop those that are not focusing us to the strategic direction we have set to go.In order to compete effectively in the market, the Sacco has invested and will continue investing in training of its staff and board members to equip them with cutting edge skills necessary for steering the Sacco to even greater heights. The trainings are selected to cover all aspects of the Sacco, especially the laws governing the industry and also governance issues among others. Our members are also not left behind as training sessions are planned and executed in the field where most of them are located. The aim is to make them understand the Sacco more, their roles and also shed more light on how they can make the most out of the available opportunities in the sacco. Making members understand existing policies and guidelines governing the Sacco industry is crucial for our Sacco to remain vibrant.In the world today, technology has revolutionized the way things are done. The Saccos have not been left behind. Front Office Service Activities (FOSA) is the new way for Saccos. This system is enabling Saccos compete with banks as the platform enables Saccos to offer a wide range of products more than the Back Office system (BOSA) could allow. This is the next level of growth for our Sacco. The ADM of 2016 resolved that KEWISCO goes FOSA. The necessary infrastructure is being put in place and we hope to be there early 2017. I urge our members to support the initiative which in the long run will make our Sacco more profitable. This will require that members have their Salaries and other remunerations pass through the FOSA to maximise on profits to be realised.Looking at growth in another dimension, Kewisco Sacco Society Limited gave rise to Kewisco Housing

Cooperative Society whose main aim is to enable members acquire property at affordable prices. This came about as a result of the law outlawing Savings and Credit Societies from buying property. Membership to the Kewisco Housing Co-operative Society is not automatic. Members are however encouraged to join as benefits to be gained cannot be overemphasized. We have reviewed our Strategic Plan, employed a few additional staff including the IT specialist and carried out refurbishment at our Sacco offices to set the stage for FOSA activities and re-engineering of our processes . We have competed during Ushirika Day celebrations and carried home trophies including the following: Best managed Sacco(Parastatal Sector) 2nd position , Best Sacco in loaning Services/ credit management (Parastatal Sector) 2nd position and Best Sacco in training and members education – Parastatal category 3rd position. We strongly believe that integrity and good governance are the strong pillars of the Sacco and for that matter to any organisation that wants to be around for many years to come. We intend to maintain that by honouring and submitting to the Creator of the Heavens and the Earth for sustained well being of the Sacco and of course her members.We will continue to update and appraise on the Sacco activities as often as possible in the subsequent publications.

Eng. Wamaya Benson.

BOARD OF DIRECTORS

Eng. Benson Wamaya Chairman

Works for KWS currently as Ag. Deputy Director Corporate

Services

CPA - Rebecca Kipchumba - Treasurer Works for KWS currently as Senior

Accountant- Projects

CPA Watson Karagathu-Chairman

Works for KWS currently as Senior Internal Auditor

Robert Muasya Vice Chairman

Works for KWS currently as Senior Assistant Director-

Inspectorate

Anthony WasikeWorks for KWS currently as Chief

librarian

CPA - Alex MutisyaWorks for KWS currently as Acting

Management Accountant

Monica Muthoni - Director Works for KWS currently as Secretary Supply Chain Management

Edwin LusichiWorks for David Sheldrick

Wildlife Trust as head animal keeper

Samuel Theuri-Member Works for African Network for Animal Welfare as Programme

director

Peter Mureithi – Member Works for KWS currently as Radio

Operator

Paul MbuguaWorks for KWS currently as Assistant Director and Head

Marketing

Salome Kang’ethe Hon. SecretaryWorks for KWS currently as Ag.

Manager Employee Wellness

SUPERVISORY COMMITEE

I am delighted, indeed excited, to communicate with our SACCO members using this important forum; The KEWISCO newsletter. It is now a decade since the SACCO produced its last newsletter and I am

happy that finally we have this issue. It is the wish of the management that it becomes a regular production and forum to exchange ideas. I wish to highlight a few important aspects that members will find useful. For a start I wish to sincerely thank our delegates drawn from all over the country for turning out in large numbers for the annual delegates meeting (ADM) that was held on March 19, 2016 at the Nairobi Safari Walk. Compared to the immediate past years, there was a delay in convening the ADM due to some technicalities that we needed to observe and which we could not avoid. We will strive to be holding our meeting in February, every year, to avoid inconveniencing our members in their planning. This year’s ADM approved payment of interest on deposits at a rate of 9% and dividends on share capital at a rate of 12%. I thank delegates for accepting that we capitalize 50% of their interest on deposits. This is a wise decision that will ensure that the Sacco continues to give loans to members without delay and more importantly from our own internal resources.

The past four years that we have capitalized have seen the Sacco operate without resorting to bank loans to bridge shortfalls in cash

flow. The capitalized amount was reflected on the payslip for the month of May 2016 and also on the statement of the month of July. I advise that you cross-check the details and if in doubt contact the Sacco to sort out anomalies if any.KEWISCO Sacco exists for the sole purpose of pooling resources from members and then provides the members in need of affordable credit at competitive rates. In the process members are also accorded an appropriate avenue for realising savings for a rainy day. To facilitate the savings, the Sacco has several products that enable members to save for various purposes. There are products that enable members to save and withdraw money without necessarily withdrawing their membership from the Sacco. These include Education Saving Scheme (ESS), Holiday Account and Masomo Savings Account. Angel Savings Account enables children under the age of 18 years whose parents are Sacco members to save at a minimum rate of ksh 500. These saving products attract a handsome rate of interest ranging from 7.5% to 8%We have enhanced the loans multiplying factor to FOUR times members’ deposits and enriched the Sacco products menu. This year we have introduced MKOMBOZI loans whose repayment period is TWENTY FOUR months. We will continue with inventing new products and enriching the existing ones to meet the needs of our members.I will urge the members to continuously update their details with the Sacco, that is, contacts details and next of kin. This will enhance the Sacco communication with the members and in case of death; it will fast track the payment of benefits to the beneficiaries and eliminate misunderstandings.

CPA - Roseanne MwangiChief Executive Officer.

Chief Executive Officer’s Statement

Lastly, As the Sacco business is a business of numbers, the Sacco seeks to grow in numbers to enjoy better economies of scale. To this end, we request members to recommend to the management reputable organisation that we can partner with. The organisation can both be private or public with at least five employees. The management will be awarding the member/delegate who will have introduced the highest number of new members this year in the next ADM which will be held in February 2017. We thank you for making Kewisco Sacco your Financial Partner to “grow together” .If you have ideas to share on how to improve our products, services, processes, etc. , do not hesitate to write to us through: manager@kewiscosacco.org for your views matter to us.

STAFFINGKEWISCO has grown from a small Sacco with only two members of staff to her current establishment of eight members of staff and growing; all recruited to help achieve the goal of serving our members better. The eight are

CPA Roseanne Mwangi- Chief Executive Officer.She is a CPA (K) and a holder of Bachelor of Commerce. She has over Fifteen years experience in the financial sector. She joined Kewisco Sacco in June 2013.

Ms. Gladys Omwange- Loans OfficerShe is a CPA holder, Bachelor of Commerce graduate and also has a diploma in Cooperative Management. She has over Ten years experience and joined Kewisco Sacco in 2009

CPA Jimnah Njoroge – AccountantHe is a CPA (K) holder with a bachelor of commerce and Diploma in Cooperative management. He joined the Sacco in 2007 as an assistant loans officer and rose through the ranks to become the Accountant.

Ms. Lucy Anyango- Accounts AssistantShe is a CPA Two holder pursuing CPA Three. She is also a holder of diploma in Cooperative Management . She previously worked for Airtel Kenya as a customer care officer. She joined the Sacco in February 2014 and is currently the Cashier.

Mr. Duncan Omondi- Accounts AssistantHe is pursuing CPA and is a Bachelor of Commerce graduate. He previously worked at cooperative bank and joined the Sacco in January 2016

Ms Winny Chepkony – Assistant Loans Officer She is a CPA graduate with a bachelor of Commerce. She previously worked for Chase bank and joined the Sacco in January 2016.

Esther Sirma- ReceptionistShe has a diploma in customer care and front office. She has over twelve years experience in customer care. She joined the Sacco in year 2006.

John Ngeti-Office assistantHe joined the Sacco in November 2008.He is a holder of a Diploma in computer studies and currently pursuing CPA.

Clifford Isaboke -IT Officer He holds a bachelor of Information Technology from JKUAT,Diploma of IT ,MCSE,CCNA and OCP . He has over five years experience. He joined the Sacco in July 2016 as the IT Officer.

Housing Administrator Kevin Kiloti He holds a Bachelor of Commerce (Banking and Finance) from Kisii University and a CPA II. He joined Kewisco Housing Co-operative Society Sacco Limited in February 2016

As a way of mentoring the youth and giving back to the community, we offer attachment for three months to students who are pursuing a course in cooperative management or business related courses. As we grow and open a FOSA, we will be enhancing our Human Resource capacity in order to serve members more effectively.

Yours Sincerely,

Roseanne Mwangi

Menu of products offered by Kewisco Sacco

Kewisco Sacco was incorporated in 1992 with the aim of providing opportunities for personal growth for members by mobilizing savings, pooling resources and providing affordable credit facilities. The main objectives for Kewisco are:

• To encourage members to save • To provide members with affordable loans • To raise and expand share capital • To provide education to members • To remain innovative by providing a wide range of relevant products and services to members.In line with the objective of raising and expand the share capital base of the Sacco, Our membership has grown from 23 in 1992 to over 4,000 with a share capital of Ksh.35 million, deposits of Ksh.621 million, and K.sh. 719 million worth of loans issued to members.Over the years, Kewisco has been striving to give the best return to its members as illustrated in the table belowThe Sacco adheres to sound credit administration policies to maintain low delinquency. A reduction to almost

YEAR DIVIDEND INTEREST2013 10% 7.5%2014 10% 8%2015 12% 9%

negligible default ratio has been maintained over the years and in recognition of this, the Sacco has variously won awards on the category of best loaning services/credit management country wide in the year 2015 and best loaning services/credit management in the parastatal sector in the year 2015.In line with our goal of continous improvement of service deliverance to our members, we provide timely and innovative products that are in resonance with members needs. Our current product basket comprises of the following:Kewisco Sacco is a registered Mpesa agent which is open to its members. W e also have a pay bill number -902250- whereby contributions, savings and loan repayments can be channeled through.

LOAN TYPE AMOUNT PERIOD INTEREST RATE(Per month)

Development option one No maximum 36 months 1.08%Development loan two No maximum 48 months 1.25%Development Reloaded one. No maximum 36 months 1.08%Development reloaded two No maximum 48 months 1.25%Mkombozi loan 100,000.00 24 months 1.2%Super saver loan 5,000,000.00 60 months 1.4%Emergency loan 200,000.00 12 months 1.08%School fees loan 200,000.00 12 months 1.08%Education savings scheme loan

30,000.00 12 months 2%

By: Gladys Omwange

Hapo Hapo(instant loan) 30,000.00 6 months 5%Mapokezi loan 50,000.00 12 months 1.08%Asset finance loan No maximum 12 months 2%Masomo loans 90% Masomo savings 12 months 0.8%Angel loan 90%angel savings 12 months 0.8%

SAVINGS PRODUCT

FEATURES OF THE PRODUCT

MINIMUM SAVINGS AMOUNT

INTEREST RATE

2015 IN-TEREST RATE

Min. Interest bearing balances

Share Capi-tal

A minimum of K.sh. 10,000.00 per mem-ber

Periodical deductions from deposits.

Determined at the ADM.

12% N/A

Deposits For all members 1,500.00 Determined at the ADM.

9% N/A

Holiday Ac-count

Optional 500.00 7.5% 7.5% 5,000.00

ESS (Educa-tion Savings Scheme)

Optional 500.00 Determined at the ADM.

5,000.00

Masomo Savings ac-count

Optional(children) 1,000.00 8% 8% 5,000.00

Angel Sav-ings account

Optional(children) 500.00 8% 8% 3,000.00

The Sacco also has a Sinking fund which became operational in 1998.Members contribute a sum of K.sh. 150.00 per month. The money is used to insure loans in the event of death and also condole our bereaved members as follows: • When the principal member passes on –K.sh. 50,000.00 is paid to the next of kin. • When the member’s Spouse passes on we pay K.sh. 30,000.00 to the member • When a member’s child passes on we pay K.sh. 15,000.00 to the member (a maximum of four children).In the event of death of a member, the loan( s) are paid back because they are insured with the insurance covering death.

KEWISCO HOUSING COOPERATIVE SOCIETY LIMITED

Kewisco Sacco members on a site visit to Kisaju piece of land

By: Paul Mbugua

Since inception, Kewisco Sacco has distinguished itself from its competitors by acquiring land for her members. Some of the Sacco members are proud owners of

land and now real estate in Ongata Rongai, Kibiko, Kisumu and Southern By – Pass. The Sacco has been facilitating members through mobilization of financial resources and collectively paying for them the land as well as subdividing and acquiring title deeds. This was done as a special project outside the Sacco’s core function and has been a blessing to members who were prudent to purchase the land through the Sacco. A KWS estate now exists in Rangau and christened “Kewisco Estate” where Sacco members have put up private homes on the land that the Sacco bought for them. This is the untold success story of Kewisco Sacco!The journey towards getting more members of Kewisco to acquire property through a legally recognised investment vehicle begun three years ago with the

formation of KEWISCO Housing Cooperative Society. The need arose after the Cooperative Act made it impermissible for savings and credit societies to buy property on behalf of members. The Core business of savings and credit societies is to mobilize financial resources from members and then use these resources to give loans to members at cheaper rates compared to other financial institutions. KEWISCO Sacco as a result mooted the idea of a Housing society. It is registered under the Ministry of Industrialization and Cooperatives. The aim of the society is to help members to acquire plots of land, build or buy houses for themselves at affordable prices. The properties can be bought across the country where members are and where the interested members have identified suitable pieces of land or houses suitable for their needs. Froma humble beginning three years ago, the Housing Cooperative has grown in membership which now stands at over 400 and an investment of 20 acres of land in Kisaju. Since there is strength in numbers,

KEWISCO Sacco members are urged to join the Housing Sacco to enable us forge ahead together.To become a member of KEWISCO Housing Society is not automatic even for the members of KEWISCO Sacco. The two Societies are different entities and one needs to apply to become a member. The joining requirements are few and simple. To be a member, one needs to be a member of KEWISCO Sacco, fill a joining form and pay a non-refundable joining fee of Ksh 2000/= and then pay for one share at a fee of Ksh 5000/=. There are many benefits that one gets from being a member. These include:• Qualifying for subsidized prices for all products on offer such as houses and plots of land. • Obtaining easy and secure methods of additional saving and borrowing of funds to develop own property.• Easier and affordable access to property compared to individual purchases• Collective access to land acquisition transaction processes.• Benefits of corporate bargaining power in buying land and borrowing funds• Enjoyment of limited liability in transactions• Being given first priority in product sales

offered by the society.• Dividends to shareholders• An opportunity to create wealth.The above benefit will be realized as the outlook of the property market is looking good. This sector has continued to gain prominence and has become an

important contributor to the economy accounting for 8% of the GDP. In

terms of growth, the sector grew by 14%, the highest recorded

in the country in 2015. Be a member of the winning

team by joining the Housing Cooperative

and prepare to reap the benefits.

Our society on its own cannot get far.

Partnerships with other organisations in the same

field will help us move faster towards our goal. To this end,

we are partnering with the National Cooperative Housing Union (NACHU). This union facilitates Housing Cooperatives to build houses on plots that they have bought. They have attractive products that our Housing cooperative can benefit from and members of the cooperative can also benefit individually.Progress has been slow but we are gathering momentum and soon we will be moving with speed to realize our goals.

‘Real Estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full and managed with reasonable care, it is about the safest investment in the world.’

HOW TO “OWN A PIECE OF KENYA””By: Joycelyn Makena

Gitau paid three million Shillings to purchase a two

acre piece of land in Kitengela on which he planned to build his family a home. He undertook the necessary site visit and negotiations with the seller and obtained all the necessary documents before he paid the purchase price.

However, when he went to have the property transferred to his name, the land registrar informed him that the copy of ID provided to him by the seller was fake and therefore the land could not be transferred to him. Gitau lost his three million shillings and is now left with mortgage repayments to make and no land.

Majority of us, like Gitau, aspire to own a piece of Kenya. It is important that we know the three main steps to a fool proof land transaction so that we do not get conned.

First, visit the land without the seller or his agent and make your independent research. A site visit will enable you to acquaint yourself with the physical characteristics of the site. During a site visit, keenly observe the physical details including the size and shape of the

plot, t h e soil type, the topography and the neighborhood. You may find that the plot is located on a cliff, a hill, or a valley or was previously a quarry.

A site visit will also give you an opportunity to make enquiries on the ownership details. While at the site, speak to the area residents as they have local knowledge and would have information on land parcels that have long standing disputes or those whose owners have passed away.A Sacco recently bought land from an elderly woman in Kajiado as an investment property on behalf of its members. The Sacco entered into the necessary agreements and paid the purchase price. However, on the date appointed for showing the members their land parcels, the buyers were met by a hostile reception from the family members together with administration police and the local chief.

The family alleged ignorance of the whole transaction and

claimed the sacco was grabbing their

land. It later emerged that the registered owner of

the land was deceased and

the family had not yet obtained letters of

administration. The Sacco officers have now lost credibility in the face of their members and their members have to pay back sacco loans for nonexistent land.

Secondly, make enquires on the status of the land from the land registry. Enquiries are made to confirm the property details such as ownership, location, size, permitted use and encumbrances such as loans and other interests registered against the property.

Usually the first enquiry is an official title search which is simply an application to the land registrar for the land details of a particular property. However, a title search is not enough proof of ownership and the physical plan and survey map of the plot also need to be inspected.

It is also important to inspect the original physical plan that was prepared for the property to be certain that the property was not

reserved for public use. You may recall the intended demolition in May last year of homes in South B which were developed on land initially reserved for the Kenya Veterinary Vaccines Production Institute.

The homeowners in that instance were lucky because the demolition exercise was stopped by Senator Sonko through the personal intervention of his Excellency the President. If the property owners had conducted proper due diligence, they would have found that the land was originally reserved for a public utility.

Thirdly and finally, use credible professionals throughout the transaction. These professionals include an Estate Agent, Physical Planner, Surveyor, Valuer and a Lawyer.

An estate agent will advise you if this is the best deal you can get in the market. A physical planner will advise you of the legally permitted use for the property while a surveyor will advise you on whether the location, shape and size of the land is the same as what is indicated in the title documents.

A property valuer will assess for you the market value of the property as a guide for negotiation of the purchase price. A lawyer will act on your behalf to ensure that the legal documentation is completed to enable you to transfer the land into your own name.

You must confirm that the professional is registered with the relevant professional society and statutory registration board as these institutions can take disciplinary action on their member should the professional con you. However a Registration Board cannot take action against non members.

Professional fees comprise approximately 5% of the total

transaction costs. However, it is cheaper to use professionals than to risk losing the entire purchase price in a fraudulent transaction in the same way that Gitau lost three million shillings.

In conclusion, when you are ready to invest in a property: visit the site and undertake your own independent research; make enquiries at the land registry, and finally use registered professionals throughout the transaction.

Then you will be the proud owner of a piece of Kenya.

A member’s bungalow built with funds sourced from Kewisco Sacco

CENTS AND SENSEBy: Jimnah Njoroge

Kewisco Sacco has witnessed tremendous growth for the last eight years. This is demonstrated by the drastic growth in the membership,

revenue and dividend rates. In the latter, the Sacco paid dividend at a rate of 9% in 2015 compared to 3.5% in year 2007. Other attributes of growth include the balance sheet: loan book, institutional capital and members’ deposits. In the year 2007 for example, the loan book stood at only Ksh 240,146,224. This has grown to Ksh 671,653,274 as at 31st December 2015.The Sacco actively competes with other Sacco’s in the national level. This is achieved through active participation in Ushirika Day celebrations where she is assessed on various aspects as compared to other Saccos under the same category countrywide. In the recent years, the sacco has won several trophies and certificates. These include but not limited to; best managed Sacco, parastatal sector, best loan products and services to members.Our strategy of capitalizing dividends and disbursing loans on fortnight basis not only contributes to our income but also but also improves our cash flow hence improved service delivery to members.Role of accounts department in the Sacco.The Sacco has three members of staff in the accounts/finance Department; The accountant who oversees the operations of the whole department and two account assistants The Accounts department plays vital roles in the Sacco. These include updating MPAs on monthly basis, posting of members receipts, processing of members’ refunds (Both Loans & Savings),

Generating management accounts on monthly basis, processing payments to members, preparing monthly bank reconciliation statements, disbursing loans to members, among others.In an effort to enhance efficiency of its services to members, Kewisco is in the process of opening a FOSA that will see her offer services similar to those offered by banks. Once this is accomplished, Members enjoy services such as salary processing, salary advances and other FOSA products. We are therefore encouraging members to support the same by saving promptly in FOSA in various accounts to generate cash flows and enhance profitability.

Payments to the sacco can be made through the following methods1. Bank deposits to Co-operative bank, Langata Road Branch, A/C No. 011200018992002. Bank deposits to Kenya Commercial Bank, Moi Avenue Branch A/c number: 11831153693. Mpesa Paybill business No. 902250The Sacco makes its payment to members through cash, cheque, m-pesa or paybillIt’s clear that Kewisco Sacco under its able management remains steadfast and determined to overcome the various challenges faced by financial institutions.

Why a SACCO and not a BANK?By: Anthony Wasike

A few years ago, I wrote about some wisdom my grandpa dispensed when I first started working. I’m ashamed to say I didn’t quite follow all the guidelines,

and now 5 years later I will be seriously engaging with a SACCO.Very few people under 30 years of age are members of a SACCO especially in this age where the work place is getting less and less formal. The reasons could be the following:• They don’t understand what a SACCO is and how it works;• We’re exposed to bank credit, which is easily accessible and therefore find no need to join a SACCO• SACCOs aren’t ‘cool’The purpose of this post is to tackle the first concern, and hopefully convince you why you should use a SACCO as your savings avenue.

BackgroundSACCO is an acronym for Savings and Credit Co-Operative, and I would define it as an association of like minded individuals, registered under the Ministry of Cooperatives (In Kenya), and authorized to take deposits from and lend to its members. SACCOs are governed by the SACCO bylaws which state the objectives, membership, share capital, organization

structure, management and lending regulations.Most SACCOs are managed by a professional management team, which reports to a committee elected by members annually or according to the bylaws of the SACCO.Most SACCOs in Kenya have restricted membership, for example KEWISCO SACCO’s membership is restricted to conservationists, but we would like to open to the public especially when we go FOSA by early 2017.

FeaturesSavings SACCOs are deposit taking and are a great tool to channel your savings. The SACCO aggregates the savings and lends them out or invests in authorized instruments such as shares, treasury bills and bonds, and in some cases property as authorized by the by laws. Returns from these savings for a member can be as high as 10%, and this is a better channel than banks for the following reasons:

• SACCOs require a minimum monthly contribution from members. This instills a saving discipline.• The money isn’t accessible to the member unless they choose to withdraw from the SACCO or take out a loan. This protects the savings and prevents impulsive spending of cash saved.• Savings in a SACCO do not attract bank charges at all.• Interest paid on these savings is often higher than bank rates.

Borrowing Once one is a member of a SACCO, they’re

allowed to borrow within the limits of their savings. The standard is a member can borrow up to 3 times their savings, provided other members give them guarantees or they give a form of security. SACCOs have various products, such as emergency loans which are processed within a day, school fees loans and development loans. The Kewisco website details its products as an example. While bank may be able to

extend you a larger unsecured loan, borrowing from a SACCO has several advantages:• SACCOs have lower interest rates and these rarely change. Most SACCOs in Kenya h a v e been lending at 12% per annum, which is lower than the banks have offered even when market rates have been at the lowest. Banks also constantly revise their lending rates while SACCOs will rarely do this.• As a member of the SACCO, you earn interest on your savings which are part of what you have borrowed lowering your borrowing costs further.• While repaying a SACCO loan, a member is expected to still maintain the same level of monthly savings as they did before. This builds a saving discipline, and helps one accumulate a substantial savings baseOf course SACCOs have one main disadvantage which is they require guarantors or security, but one can begin by just borrowing within their saving level, as they seek to develop relationships within the SACCO.

Projects SACCOs came up as a result of the Cooperative movement and because of that they are development oriented. Most SACCOs have other development projects that are beneficial to their members. For example, Kewisco SACCO had a Rongai Plot project whereby members saved over time, pooled the funds together and used these to buy a tract of land in Rongai which was subdivided among the members of the project.Participating in these projects can help one acquire investments faster and cheaper, than if they were to do

it alone.I’d recommend that one joins a SACCO even if it’s for a minimum contribution, and enjoy the benefits of the cooperative movement.Are you a member of a SACCO? Have you ever considered joining one? Then Kewisco is the SACCO of choice to take you there as our motto epitomizes: “Growing Together”.

Kewisco Sacco ofices located at West End Place building off Langata Road

SECRETS OF SUCCESS IN LIFE

1. Sleep less. This is one of the best investments you can make to make your life more productive and rewarding. Most people do not need more than 6 hours to maintain an excellent state of health. Try getting up one hour earlier for 21 days and it will develop into a powerful habit. Remember, it is the quality not the quantity of sleep that is important. And just imagine having an extra 30 hours a month to spend on the things that are important to you.

2. Set aside one hour every morning for personal development matters. Meditate, visualize your day, read inspirational texts to set the tone of your day; listen to motivational tapes or read great literature. Take this quiet period to vitalize and energize your spirit for the productive day ahead. Watch the sun rise once a week or be with nature. Starting the day off well is a powerful strategy for self-renewal and personal effectiveness.

3. Do not allow those things that matter the most in your life be at the mercy of activities that matter the least. Every day, take the time to ask yourself the question “is this the best use of my time and energy?” Time management is life management so guard your time with great care.

4. Use the rubber band method to condition your mind to focus solely on the most positive elements in your life. Place a rubber band around your wrist. Each time a negative, energy sapping thought enters your mind, snap the rubber band. Through the power of conditioning, your mind will associate pain with negative thinking and you will soon possess a strongly positive mindset.

5. Always answer the phone with enthusiasm in your voice and show your appreciation for the caller. Good phone manners are essential. To convey authority on the line, stand up. This will instill further confidence in your voice.6. Throughout the day we all get inspiration and

excellent ideas. Keep a set of cards (the size of business cards; available at most stationary stores) in your wallet along with a pencil to jot down these insights. When you get home, put the ideas in a central place such as a coil notepad and review them from time to time. As noted by Oliver Wendell Holmes: “Man’s mind, once stretched by a new idea, never regains its original dimensions.”

7. Set aside every Sunday evening for yourself and be strongly disciplined with this habit. Use this period to plan your week, visualize your encounters and what you want to achieve, to read new materials and inspirational books, to listen to soft soothing music and to simply relax. This habit will serve as your anchor to keep you focused, motivated and effective throughout the coming week.

8. Always remember the key principle that the quality of your life is the quality of your communication. This means the way you communicate with others and, more importantly, the way you communicate with yourself. What you focus on is what you get. If you look for the positive this is what you get. This is a fundamental law of Nature.

9. Stay on purpose, not on outcome. In other words, do the task because it is what you love to do or because it will help someone or is a valuable exercise. Don’t do it for the money or the recognition. Those will come naturally. This is the way of the world.

10. Laugh for five minutes in the mirror each morning. Steve Martin does. Laughter activates many beneficial chemicals within the body that place us into a very joyous state. Laughter also returns the body to a state of balance. Laughter therapy has been regularly used to heal persons with varied ailments and is a wonderful tonic for life’s ills. While the average 4 year old laughs 500 times a day, the average adult is lucky to laugh 15 times a day. Revitalize the habit of laughter; it will put far more living into your life.

“ The Richest Man in Babylon” by George S. Clason was first published in 1926 and is considered a classic on personal finance and creating wealth. As you read the book , I believe you will be totally blown away by the simplicity of the story and by the tried-and-true financial lessons it presents for accumulating wealth.Following are the 9 most important lessons:

1. Pay Yourself First !Set aside at least 10% of what you earn! You must know this first rule!Wealthy people pay themselves first and poor people do not. You must do this before you start paying others or start spending the money you earn.

2. Live below your means.Most people have formed the habit of spending more, as they earn more. Train yourself to live on less than you earn. Control your expenditures.

3. Make your Money work for you.Your money grows no just by what you save,it grows by investing and re-investing. The first principle of investing is the security of your Principal. You don’t gamble or take risk with your principal. Don’t be misled by your desires to make wealth overnight. Time is your biggest ally. Your investment will grow as your investments accumulate interest and the money you get from the interest earns interest.

4. Seek advice from experts.Seek advice from those who have created wealth legally. Run away from schemers and tricksters who promise to double your wealth overnight.

NINE FINANCIAL LESSONS FROM “THE RICHEST MAN IN BABYLON”

By: Salome Gachago

5. Protect your biggest ASSET.Your ability to earn an income is the biggest asset for your family. You should consider buying life insurance and disability insurance now in case something happens. This is a proactive approach and one we should take and not forget.

6. Your Home is your biggest expense.Your home is your biggest expense and you must reduce that expense as much as possible. Many people buy or build the biggest home they can afford. Instead, you should buy or build a home that is comfortably affordable, in a location that you like, with enough space for you and your family.

7. Have a retirement plan.You are going to be retired for 20, 30 or more years. Do you want to have money you need to live comfortably in retirement? The younger you can start putting money away for your retirement, the more you can take advantage of the magic of “Compound Interest.”

8. Invest in yourself.The best way we can increase our earnings is by investing in ourselves. We can do that by continually learning and striving to develop ourselves. When we become smarter and wiser, our ability to earn more also increases.

9. Track your wealth.You need to face the whole truth of your current situation. The difference between wealthy people and those that are not, is wealthy people know their net worth, while the poor do not pay attention, nor care at all about tracking their assets and liabilities.

The credit department: A sneak preview

By: Gladys Omwange

This department has two

members of staff, namely Gladys Omwenga, the loans officer and Winny Chepkony, the assistant loans officer.The functions of the department range from: verification of documents attached to loan forms, processing of loan forms, advising members on qualification and general financial information, payroll processing, insurance of loans, vetting and attachment of guarantors, general correspondence to members’ and other internal functions.A member can access our products and services by either walking into the banking hall in Kewisco and being served there, through communication via phone or e-mail, through sending mails via post office or use of courier services.Once a loan form is received in the office, it’s registered and presented to the loans office for processing and if the member qualifies for the loan it is forwarded to Manager’s office for approval. However if it does not qualify, then the member is called and advised accordingly.Depending on the scheme of loan, all short term loans are approved and issued within the same day and cash of up to Ksh. 20,000.00 is given across the counter and any amount above is done through a banker’s cheque and banked the same day. If the loan applied is for development , then the office is given a grace period of up to two weeks

to enable it process and do a cheque. After processing, the development loan is then forwarded to the manager’s office who again forwards it to the Credit committee for approval.After disbursement of the loan, a payroll advice is raised to the employer who deducts the loan on

behalf of the Sacco for onward remittance. The advice is done by 4th of the month to KWS and 15th of the month to the affiliates. For individuals and those not affiliated to organizations that do not deduct and remit members dues, they can pay using Pay bill no 902250, a standing order through our co-operative bank account number 01120001899200.The Sacco adheres to sound credit administration policies to maintain low delinquency. A reduction to almost negligible default ratio has been maintained over the years and in recognition of this the Sacco has variously won awards in the category of best loaning services/credit management countrywide in the year 2015, and best loaning services/credit management in the parastatal sector in the year 2015.It’s evident from the performance of the Sacco that it’s moving in the right direction and complying with its Motto: “Growing together” and Mission of “offering unique and personalized financial services to our members in collaboration with our stakeholders through prudent management for social and economic empowerment”.

GROUND RULES OF WINNING NO MATTER WHAT

By: A.N. MBAU

“MANY FAILURES IN LIFE ARE PEOPLE WHO DID NOT KNOW HOW CLOSE THEY WERE TO SUCCESS JUST BEFORE THEY GAVE UP TRYING”1. Strong conviction that it is never too late: The will to win, the desire to succeed, and the desire to reach your full potential are the keys that will unlock the doors to personal excellence. It is never too late to become what you have always wanted to be in life, just plan carefully and go for it! 2. Think big and shun fear: Break your big thoughts into immediate and long-term goals. The greatest tragedy in life is not death but a life without a purpose. Life without purpose will be subject to all sorts of things associated with idleness. 3. Don’t be afraid of thinking Big: A timid person is frightened before danger, a coward is frightened during the time of danger, and courageous person is frightened after the danger, (Jean Paul Richter). 4. Sort your priorities in life: Don’t live under the elusions of good luck; get focused by deciding what is important to you at any one given point in time. A man with one watch knows what time it is, with two watches you can never be sure.5. Believe in yourself: You must develop self image, you must believe without doubt that: If you can dream it, you can make it, you are not limited, and God sees you as a victor; a winner, a co-heir.6. Forgive yourself and forgive others: Off load the baggage of remorse and guilt from your life by forgiving others and forgiving yourself. Yes, you made a bad decision, yes they did it wrong to you, but forgiving them is not a justification of losing it out to them; you do yourself a favor by releasing off the baggage. 7. It is not about how much you know or how intelligent you are: what will determine your success is the passion and the desire in you to succeed in life. There are many intelligent people whose lives are in a mess, while there are others of average intelligence whose drive to excel in life has catapulted them to the top of their success. 8. Seek to work under good mentors: Good mentors

are not always good friends, they will always tell you what you must hear, not what you want to hear; they will hurt you by telling you when your nose needs to be wiped. 9. Shun mediocrity: Desire to be the best in whatever you do, do what you like, like what you do or quit. Desire to be the best in whatever you set your mind or hands on. 10. Discover and use your talents: God has given each one of us a package of gifts for the good of others, but some open their packages much latter than others for fear of disappointment if they fail. Some open them only after retirement and old age while others go with their packages in the grave unopened.11. Serve people selflessly, as long as you have the opportunity: The greatest source of joy and satisfaction for a human being is not the number of houses you have bought in the cities or the amount of money you have in the bank, but the number of people you meet in the streets and the villages and they tell you: “Thank you, you transformed my life.” 12. Protect your integrity: Maintain character and professional integrity at all times and you will never lack. Be Faithful and trustworthy in big and small responsibilities.13. To be successful you must start from the bottom with determination: Start from where you find yourself, take advantage of the opportunities that are where you are instead of lamenting on the apparently widening road to your goals. 14. Be humble so that God may exalt you in due course: When you must choose between humility and arrogance e.g. showing off through exercising your powers, choose to be humble. 15. Take good care of yourself: That’s what men and women destined to be great in life do. Find time to do what you enjoy most as your recreation/hobby, be healthy, eat and drink healthy, exercise frequently. 16. Be thankful: Whatever you have, whatever you are is because God is responsible and considerate of your being, provisions and care. Don’t live in the world of complaining, at least sit and count your blessings and you will be surprised to see what the Lord has done for you.

There are two things for which animals are to be envied: they know nothing of future evils, or of what people say about them.-Voltaire

Animals are such agreeable friends - they ask no questions, they pass no criticisms.-George Eliot

A horse is dangerous at both ends and uncomfortable in the middle.-Ian Fleming

A bird in the hand is worth two in the bush.-Anonymous Author

Four legs good, two legs bad.-George Orwell

Animals are always loyal and love you, whereas children you never know where you are.-Christina Foyle

The very fact that the jaguar can become extinct while the Pekingese survives indicates to me that someone hasn’t thought this thing through.-A. Whitney Brown

We hope that, when insects take over the world, they will remember with gratitude how we took them along on our picnics.-Bill Vaughan

The creatures outside looked from pig to man, and from man to pig, and from pig to man again; but already it was impossible to say which was which.-George Orwell

The fox knows many things, but the hedgehog knows one big thing.-Archilochus

Quotes on AnimalsLeisure

L C E V D D E E F L Q B N J

Y R O T A I C E R P E D O G

X E T S A F K A E R B K I S

K T Y A D A I T R E N I S R

V T U S I N F Y L G T P S N

A A A M E O C Q U O R Y U Y

L B T R D Y R C R C O P C P

Y A I U O J C U D T B Y R M

V S G X W Q R I D M C E E M

L A R T S L I H W D A X P H

O R E G A N E E T D Y A K O

B A B U N C D L I A A B K L

F O B Q S V U L U O M W H T

M W L Z R A Y Q H N G H W D

Depreciatory Inertia Teenager Siren Readily Batter Ebb Ruddy Whilst Percussion Breakfast Oar

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Scripture corner

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Best managed Parastatal Sacco

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Ushirika Day 2016 ADM 2016