Newsletter

Kimisitu Sacco Ltd.

During our last Annual General Meeting in March, together we

reviewed the Sacco's performance for the year 2013 and agreed on

how to make year 2014 a success. Among the objectives that we set

for ourselves were:

We agreed that every member should participate and

further resolved that an incentive will be paid for every

new member recruited. I however note that we have not

fulfilled on this objective and urge every member to go out

of his/her way to recruit. The Sacco also accepts spouses as

members and therefore most of us are able to recruit at

least one member.

I am glad to note that members

have complied except for very few cases where employers

had not effected and the office is pursuing to ensure total

compliance.

Kimisitu Sacco has since

registered with Credit Reference Bureau to enable listing

of defaulters. We did issue a notice on the newspaper for

the information of all members and individual notices to

specific defaulters. I urge those in default to contact the

office to agree on a repayment plan before expiry of the

notice.

Were solved to increase our

minimum share capital per member to Ksh.4,000. As

agreed, this will be effected in December2014 by way of

transfer from deposits.

The board has introduced several loan

products designed to help members access credit and

engage in self-development. I encourage all to take

advantage of Sacco loans that offer the best interest rates in

the market.

?Together let us invest and grow Kimisitu Sacco through accessing

our facilities.

Our Partner to Prosperity.

r To recruit more members and grow our membership:

r To increase our minimum deposits from Ksh.2,000 to

Ksh.3,000 per month:

rRegistration with CRB:

rTo grow our Capital Base:

rLoan uptake:

Uphold our motto:

WORD FROM THE CHAIRPERSON

Kimisitu Sacco mission has been “to empower members

economically by providing a one stop shop for quality financial

services through prudent mobilization of resources and

excellent customer care.”

Premier Loan:

Car Loan:

Boosting Facility:

To date Kimisitu Sacco is doing

well in deposits mobilization and thus creating an adequate

pool where members can borrow from at reasonable rates

of interest. However, loan uptake has been low this year.

Feedback from members indicated that some of the

constraints slowing members from accessing loans are

ability to pay based on their salaries, lack of adequate

guarantors and also inadequate deposits to qualify for a loan.

To help members overcome these constraints and thus

access more loans the board has introduced products as

follows:

The loan has a longer repayment period of

60 months thus allowing members to take bigger loan than

they could have with a shorter repayment period. In

addition to clearing bank loans, a member can clear

outstanding Sacco loans using this product. Initially we gave st sta one month offer (1 July to 21 July 2014) on Premier Loan

allowing members to use this loan product to clear their

Sacco loans even where they do not have a bank loan. This stoffer has been extended to 31 August 2014 and we

encourage members to utilize it and ease their pay-slips

from high deductions towards several loans that they might

be having.

This product is designed to assist our members

acquire their own cars easily. The car being purchased will

act as security for the loan up to 60% of its value. Member's

deposits are not considered in determining how much loan

one qualifies for as long as one is able to pay within 2/3 of

salary.

A member may urgently require a loan

which is more than three times of his deposits, the member

CEO'S NOTE

2

I s a l u t e y o u d e a r

members.

rI thank all members for

being faithful to our Sacco

and for the support that they

have given us so far as we

strive to make Kimisitu “The

leading and dynamic Sacco

in Eastern and Central

Africa”. With your support

over the years we have

become who we are today.Janerose Mwangi

Our Dear Members and

Readers,

I am delighted to welcome

you to our July 2014

newsletter edition and get

updated about our Sacco.

This newsletter is meant to

keep u s u p d a ted o n

activities that are going on in

the Sacco and also acts as a

forum where our members,

Board and Staff share on

what Kimisitu Sacco has

done or will do for us as our

“Partner to Prosperity.” Peter W. Kariuki

Kimisitu Sacco Ltd.

does not have to borrow from shylocks ( with high interest) to

boost their deposit or wait for some months to pass for his

deposits to accumulate to qualify for the required amount,

The Boosting Facility was introduced to help such members.

One can apply upto Ksh.150,000 boosting facility and pay a

reasonable fee of 5% on amount boosted. More details of

these products/facilities are elsewhere in this newsletter and

can also be accessed from the Sacco's website.

In the past we have received

requests from our members to consider introducing mobile

banking to enable members send their monthly contributions

or loan repayments to the Sacco using mobile money transfer

from their phones. We are glad to inform our members that

we have a solution, MSACCO to facilitate this and starting stfrom 1 August 2014 it will be possible to use mobile transfer

to meet your monthly financial obligations to the Sacco.

Details of how it will work and applicable charges will be

communicated to all members.

As highlighted in our mission, our

commitment is to offer our customers excellent service at all

times. To achieve this we have been able to use the portal as a

customer point where members are able to access their

accounts, work out basic appraisal of how much loan they can

qualify for, track their guarantorship status etc. We however

note that about half of the members have not taken advantage

of this facility. I urge those who have not been registered to

apply by way of an email to admin@kimisitusacco.or.ke and

their accounts will be enabled.

On the other hand we have increased our communication to

members via SMS especially regarding loan processes,

guarantees and notices about meetings.

As we continue to serve you, we are continually anxious to

hear from you on how we are doing and how we can improve

our services to you. On several occasions we have circulated

questionnaires to you and we are grateful to those who have

responded to them. We will continue to seek your feedback

and we hope that you will take time and respond to us.

I thank our members for being faithful in their obligation to

save monthly and to those with loans for honoring their

repayment commitments.

Mobile Banking Solution:

Customer Service:

THE BASICS OF DEALING WITH A LOAN DEFAULTCont...

hat is default? First of all, a loan default simply means that you've not met your obligations Wwhen it comes to your agreement to repay a

loan. This can be something as simple as just missing a loan repayment for one month.

Eventually, a loan default results in offset of your guarantors'

deposits (if your debt was guaranteed) and the debt turned over to

a collection agency. If your debt did have collateral as security, the

asset will be re-possessed. You will also be listed with the Credit

Reference Bureau (CRB). Your name will appear in CRB records

which are kept up to 5 years after the loan has been cleared. This will

affect your credit worthiness and can even affect your ability to get a

job (as many jobs now run a credit check before they hire people).

Obviously,

As soon as you recognize you're in default on a

loan or about to be in default, Go over the

situation in detail with them and see what your options are.

Most of the time, lenders would far rather work out a payment

solution directly with the borrower than entering into a foreclosure

situation of offsetting from guarantors. Quite often, offsets and

repossessions and collection situations are the result of a lack of

communication between the borrower and the lender.

This is the reason that

most people are afraid to be proactive about their debt situation.

They simply don't have the money to pay the debt, and they figure

that contacting the lender won't help, so instead they choose to stay

put and hope things get better.

Here's the problem with that approach:

You are far more likely to get an easier

payment schedule, forbearance, or some other solution if you

contact your lender and deal with the situation.

If your debt isn't in default yet or is freshly in default,

call your lender and see if you can come up with a better payment

solution. If your debt has been turned over to collections,

communicate only in written form.

if you're recently in default, you're better off

acting now rather than later.

What should I do?

contact your lender.

Your best

bet is to be proactive.

What if I don't have the money to pay?

lenders will assume that

you never have any intent to pay. If you are making a

genuine effort to repay your debts, sitting on your hands is

not the best option.

In a nutshell:

3

Kimisitu Sacco Ltd.

BOARD MEMBERS WHO JOINED

THE SACCO IN MARCH 2014Evaline Ochieng - Member- Credit Committee

Dennis Moogi - Member - BDE Committee

NEW STAFF MEMBEREdinah Tongwa - Internal Auditor

Evaline holds a Bachelor of commerce Degree in marketing and a Master's of Business Administration from the University of Nairobi. Her broad experience spreads through Administration, marketing and Human resources. She has been working for International Organization for Migration for 9 years in various capacities. Evaline is passionate about strengthening membership recruitment, increasing member retention and enhancing awareness of Sacco product and services to existing and potential members. She therefore brings to the board additional skills that are necessary in guiding Kimisitu Sacco to achieve its objectives

Dennis Moogi has been an active member of Kimisitu Sacco since 2004. He holds a Bachelor's degree in Education, Diploma in Special Needs Education, Certificate in Primary Teacher Education (PTE) and certificate training in Peace Building and Reconciliation. He started his career as a regular teacher, rose to deputy head teacher position and later crossed over to the NGO sector. He has over 10 years working experience in planning and management of development programmes with a major focus on basic education, governance and child protection programmes. He has served in different capacities in several international NGO's in Kenya and South Sudan and currently working as the Partnerships Programme Officer at Save the Children. Dennis is passionate about having a well-informed Sacco membership and first class customer service.

Edinah joined Kimisitu Sacco on 1st April 2014. She holds a BCom accounting degree from the University of Nairobi. She is a member of the Institute of Internal Auditors and ISACA which accredits the CISA certification. Edinah has more than five years' experience working as a consultant with a MACL, a leading consulting firm in the provision of Internal Auditing, Risk Management, enhancement of Internal Control systems and other Corporate Governance support services.

Subject to these By-laws, policies, standards, values and procedures, all members shall have the right to use the Society's services and exercise the rights established by the Act, the Rules and By-laws, the members are entitled but not limited to: -

a) Receive or access periodically and regularly, or upon request, and at least once in six months, a Statement of Accounts containing the individualized record of his/her credit and debit transactions.

b) Attend and participate in elections and general meeting. Each member shall have one vote irrespective of the member's total share and deposit holding.

c) Elect or be elected as a Board or Supervisory Committee member of the Society unless otherwise prohibited by any other Law or these By-laws.

d) Use the Society services according to the Policies and Procedures approved by the Board of Directors.

e) Submit projects or initiative to the Board of Directors, for the improvement of the Society Services.

f) Appoint a nominee

g) Share in surpluses

h) Access all legitimate information relating to the society at the registered office of the society subject to the Society policy and regulations

i) Vote on all matters put before the general meeting.

j) All other rights as prescribed by the Co-operative Act and Rules

In accordance with the Act, members of the Society are obliged to:

a) Show good co-operative spirit in line with the Cooperative Principles

b) Be faithful and honest in all their dealings with the society.

c) Observe the code of conduct and ethics for cooperative societies and in particular desist from any corrupt practices in all dealings with the society.

d) Refrain from engaging in the business of money lending in competition with the society.

e) Protect the image of the society and avoid unnecessary publicity, incitement or careless talk that can injure the reputation of the society.

f) Pay their debt obligations to the society without fail and save regularly with the society to mobilize funds for lending to the members.

g) Seek cooperative education to improve membership awareness and enlightenment.

h) Attend meetings and education forum and take part in decision-making.

i) Inform non-members and encourage them to join the Society,

j) Bring out problems affecting the Society and suggest solutions,

k) Participate in the Society projects both physically and financially

l) Make use of the services of the Society as stated in the objects of the society,

m) Comply with these By-laws, the Co-operative Societies Act, SACCO Act, Rules , Regulations and General Meeting Resolutions.

MEMBERS OBLIGATIONS

MEMBERSHIP RIGHTS

4

Kimisitu Sacco Ltd.

KEY FACTS ABOUT GUARANTOR-SHIP

FREQUENTLY ASKED QUESTIONS:

?A guarantor personally guarantees that payments will be made

?towards the loan.

?No member will be allowed to guarantee more than FOUR times of

his deposits. All guarantors must be active members of the Society.

?Members whose accounts are dormant and/or in default are not

allowed to guarantee loans.

?The obligations of the previous guarantors shall cease upon change

of guarantors but subject to new guarantors being accepted by the

Society.

?The obligation of the guarantors shall also cease when loans

guaranteed have been cleared.

?No member shall be allowed to withdraw from the Society

membership unless, the member's loan is repaid in full or the loan

balance can be fully offset by the member's share. Such a member will

also have to satisfy the Society that all loans guaranteed have been paid

in full or the balance does not exceed the shares of the members

whose loans were guaranteed.

?Upon the death of a guarantor, the loanee is required to find a

replacement.

?A member's deposits pledged as security for another member's loan

shall not be surrendered to offset his/her outstanding loan unless the

former provides and alternative guarantors/security.

?In case a loan is not repaid for a month, the society shall inform the

loanee immediately in writing with a copy to each guarantor.

?If no repayment is effected during the second month the guarantors

shall be informed of this fact and be notified that they shall be called

upon to honour their obligations if no repayments are effected at the

end of the third consecutive months.

?However, the society will still maintain efforts to recover the

defaulted loan from the loanee.

1. How do I become a member? You need to be an employee of

any of our member organizations usually in the following

sectors; International Organizations, NGO's, foreign

missions and embassies. Organizations with 10 or more

employees can apply for their staff to become members. You

then need to fill and submit the membership application form

found on our website and attach a copy of your ID and 2

passport size photos. All members pay Kshs.1,000 entrance

fees, must build a share capital of Kshs. 4,000 and pay Kshs.

3,000 per month.

2. Is my spouse eligible to become a member? Yes, the spouse

of an already registered member is eligible to join the Sacco

even if they do not meet the other joining criteria.

3. What is the difference between deposits and shares?rDeposits are withdraw-able members' savings while

shares or share capital is the permanent member contribution toward the Sacco capital and forms part of Sacco equity.

rShares cannot be withdrawn even on exit from the Sacco but can be transferred by sale to another willing member.

rEach member must have a minimum of Kshs. 4,000 in share capital unlike deposits which have no minimum amount.

rDeposits earn interest while share or share capital earn dividends.

rDeposits can be used as loan security while share cannot be used as loan security.

4. When do I qualify for a loan? You qualify to take a loan after 6

months of consistent contribution to the Sacco.

5. What is the maximum loan I am entitled to? You are entitled to

maximum loan equal to 3 times your total savings.

6. Can I have more than one loan at the same time? Yes, you can

have several concurrent loans as long as they don't exceed

your maximum loan entitlement of 3 times and you have

ability to pay for all of them

7. What do I require to take a loan? A duly filled loan application

form supported by;

rID/ passport Copy,

rA current certified pay slip,

rPIN Certificate

8. Can I reduce my loan installment due to cash flow constraints?

No, you cannot adjust or reduce loan installment unless you

had previously overpaid your installments.

9. Do I need a guarantor if my loan application is equivalent to

my deposits? No, you may self-guarantee if the deposits are

free from guarantor ship and you will not be allowed to

guarantee other members with the same portion.

10. How many guarantors do I need? All loans must be

guaranteed with at least 3 guarantors.

11. What other collaterals or loan security can I use? The Sacco

allows use of other loan securities namely;r Log books (6o% of car valuation)r Car loan (60% of car valuation)r Land and Building Title deeds 67% of forced sale valuation,r Kimisitu Investment Company Ltd (KICL) Shares (100% )

NB: For more questions refer to www.kimisitusacco.or.ke

I joined Kimisitu Sacco over 10 years ago and I was part of the team

that reloaded the SACCO. I have served in the capacities of

Secretary, member Education and Credit Committees before

retiring from the then management committee.

Through Kimisitu, I have made savings from which I have been

able borrow to invest in the hospitality industry.

Through the normal loan I have developed a new holiday

destination in Naivasha going by the brand name Fina Gardens

Resort with 6 rooms, a restaurant, conference room with gardens

and a swimming pool.

I am looking forward to expanding to a 20 rooms’ facility offering a

one stop solution for group meetings, team building and holiday in

a serene environment.

In all these, KIMISITU has been a partner and I have always

appreciated the turnaround time that the office takes to approve

and even grant the loan which has enabled me to work within the

MEMBER TESTIMONIAL

5

Kimisitu Sacco Ltd.

budget.

I am excited that the SACCO has now grown from a small to a

large corporate that is meeting the needs of its members and

living the motto ‘your partner to prosperity’ and am looking

forward to partnering further with

KIMISITU to achieve the above mentioned expansion.

Mukuriah Nelson

Chairman, Fina Gardens Resort, Naivasha

1.2014 ANNUAL GENERAL MEETING

sthe 2014 Annual General Meeting was held on 1 March T2014, at the All Saints Cathedral Church, Main Hall. The event organized by the Business Development Committee with support of the management team registered an attendance of 1000 members; compared to 6309 active members. In order to stay dynamic and carry out the event in a more efficient and effective manner, the Board introduced new initiatives. These were:1. Use of ICT in the proceedings 2. Payment of allowances through M-pesa3. New choice of venue , near to town4. Online registration

3. USHIRIKA DAY CELEBRATIONS 2014

Members participated in the Ushirika day celebrations for year 2014 which were held on 5th July 2014 at KICC. The theme of this year's celebrations was “Cooperative enterprises achieve sustainable development for all”. In addition, they scooped the following two awards;

?Highest attendance by members for all categories

?Third position in best training services in the NGO/ private

sector.The Board of Directors and staff thank the entire membership for their support and participation during the celebrations.

2. MEMBER EDUCATION DAY

thNairobi Member Education day was held on 28 June 2014 at the Hilton Hotel Nairobi. The training featured topics on features of new products, use of web portal by members, loan default, use of collateral, guaranteeing of loans. Members were also given insight on personal financial growth.

6

Members registering during Education day at Hilton Hotel, Nairobi

Member testimonial

Kimisitu Sacco Ltd.

Conflict in the workplace is inevitable; in fact workplace conflict is

the norm rather than the ordinary and it arises as a result of

differences in ideas and perspectives; priorities and preferences;

beliefs and values; positions and responsibilities. Conflict can also

arise due to individual personalities.

Although conflict in the workplace is painful, it is not always

dysfunctional. Actually, some level of organizational conflict is

desirable. One point is clear though, that conflict does not magically

go away. Consequently, addressing workplace conflict productively

is an essential skill for employees who want to succeed individually

and in groups.

Key guidelines when faced with a conflict would include:

The longer disputes stay-on,

the more difficult they are to resolve. When problems arise, deal

with them as soon as possible to avoid bearing grudges.

The capacity to remain relaxed and focused in

tense situations is a vital aspect of conflict resolution. You may

become emotionally overwhelmed in challenging situations if you

don't know how to stay calm.

Emotional awareness is the key

to understanding yourself and others. If you don't know how you

feel or why you feel that way, you won't be able to communicate

effectively. If you are afraid of strong emotions or if you insist on

finding solutions that are strictly rational, your ability to resolve

differences is impaired.

The most important

information exchanged during conflict is often communicated non-

verbally. Paying attention to the nonverbal signs may help you

respond in a way that builds trust and hence get to the root of the

problem.

Humor can help you say

things that might otherwise be difficult to express. When humor is

used to reduce tension and anger, reframe problems, and put the

situation into perspective, the conflict can actually become an

opportunity for greater connection between the two people or

teams.

If you are dealing with a workplace dispute,

you should be prepared for some give and take. It's almost certainly

the case that the benefits of a pleasant working environment will

outweigh any sensible compromises that you have to make.

If you have played a part in the conflict, offering an

apology will go a long way. That doesn't mean that what you were

trying to achieve was wrong but you're acknowledging that things

could have been handled better.

If relationships break down or your efforts are

unsuccessful, it's time to consider a proper mediation process. Speak

to your manager or a colleague you trust.

By Edinah TongwaInternal Auditor: Kimisitu Sacco

Handle conflict sooner rather than later:

Quickly relieve stress:

Recognize and manage your emotions:

Improve your nonverbal communication skills:

Use humor and play to deal with the challenge:

Be ready to compromise:

Offer an apology:

Ask for help:

ADDRESSING WORKPLACE CONFLICT PRODUCTIVELY

Instant Loan

Car Loan

Premier Loan

Boosting Facility

This is a short term loan based on the net pay. Its features are:

?Ability to pay assessed on the net pay, members deposits

is not a limiting factor,

?Qualifying amount is double the net pay but up-to a

maximum Kshs. 400,000.

?Repayable in three months.

?Interest rate is 10% p. m.

?Must be fully secured with at least one guarantor.

?Payment is through post-dated cheques.

The product is designed to assist member acquire their own cars. Its features are:

¦Members deposits is not a limiting factor,

¦The financing covers 100% of the car value,

¦Maximum repayment period of 60 months,

¦Interest charged at 1.35% per month on reducing balance,

¦The car is jointly owned by the Sacco and the member,

¦Security is 60% of the car value and 40% as guarantors or other collateral,

¦The car must have comprehensive insurance with car track device fitted.

¦Terms and conditions apply.

The product assist the members to “buy off” existing loans with other registered financial institutions. Its key features are:

¦Qualifying amount is 3 times members deposits but a maximum of Kshs. 10,000,000,

¦Maximum repayment period of 60 months,

¦Interest charged at 1.3% per month on reducing balance.

This is a facility available to our members to boost their deposits in order to qualify for their desired loan amount. Its key features are:

¦Subject to a maximum amount of kshs.150,000,

¦Upon approval of loan, the amount of boost is recovered immediately.

¦A commission of 5% is charged on the amount of boost received.

NEW PRODUCTS

7

NOMINATION OF BENEFICIARIES

ØPlease NOTE: marriage DOES NOT revoke your

nomination! If you want your spouse and children to benefit,

you must nominate them.

ØEvery member may nominate in writing one or more persons

in order of priority to who upon his death, his shares, deposits

or any other interest shall be transferred. Appointment of a

nominee by a member shall be in writing and signed by the

member in the presence of two attesting witnesses.

ØYou have the right to change your nominee(s) anytime, but

any such change or alteration must be in writing and signed by

the member in the presences of two attesting witnesses.

ØA member who nominates more than one person shall be

required to specify the percentage of his shares, deposits or any

other interests to be transferred to each nominee.

ave you nominated your beneficiaries to your Hsavings/interest in the Sacco? Your dependants may face

major difficulties to claim your savings from the Sacco if no

nomination is done. Through nomination, rest assured that your

savings in the Sacco will be distributed to your loved ones the way

you would have wanted it to be when you are no longer around.

In case of death of a member and when proper and complete

application by the nominees has been done, and upon the Sacco

receiving the necessary documents, the Sacco shall pay to the

nominee within 21 days the value of the deceased member's

shares, deposits, and any other interest.

Why wait…make your nomination today!

Follow the following easy steps:

ØIf you wish to change or make a new nomination or make any

amendment to your existing nomination, just submit a new

nomination form and drop it to our offices.

ØIf you have forgotten your nominated beneficiaries then a

fresh/new nomination can be made. By doing so, your previous

nomination will be revoked automatically.

ØThe Beneficiaries shall be revoked automatically under three

conditions:

ØFull withdrawal of the savings,

ØNominated beneficiaries persons dead while the

member still alive,

ØWhenever a new/fresh beneficiary's nomination is

made.

Woodlands Road, off Lenana Road, KilimaniP.O. Box 1054-00100, Nairobi - Kenya

Tel: 254-020-2733601/3 Nairobi - KenyaMobile Nos. 0724310626, 0735000012

Fax 254-020-2733598Email: info@kimisitusacco.or.ke

Website: www.kimisitusacco.or.ke

Find us on:

Kimisitu sacco ltd

http://kimisitusaccoltd.blogspot.com/

@kimisitusacco

NOMINATE!