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YOU AND ME

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YOU AND ME

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14

52

Milestones

STAFF CONTIBUTORS:

Joseph Kihiu - Eldoret Branch ManagerJoseph Kihiu - Eldoret Branch Manager

Jimmy Mayore - Kisii Branch Manager

Carol Muthemba - Meru Branch ManagerCarol Muthemba - Meru Branch Manager

Ruth Kagai - Embu Branch Manager

Timothy Ouma - Branch Manager Kisumu

Claire Wambui Customer Service Office

Harriet Nyamboki - Legal Officer

Martha Mwangi - Contact Centre Officer

Stanley Gitari - SME & Agribusiness

Irene Lagat - ICT

Joseph Kimani - ABC Manager

Sarah Njuki - Head of Chama and Personal Lending

Coffee Break

PUBLISHED BYUNAITAS Sacco Society Limited, Cardinal Otunga Plaza Next to Holy Family Basilica, Cardinal Otunga Road, NairobiP. O. Box 38721 - 00100 Nairobi, Kenya Email: [email protected] | [email protected]

Copyright Unaitas Sacoo Limited. All Rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic or mechanical, without the prior permission in writting from the publisher. While reasonable precautions have been taken to ensure the accuracy of advice and information given to readers, the editor, propritors and publishers cannot accept the responsibility for any damages or inconvenience that may arise therefrom. TUJIUNGE has the right to make alterations to any material submitted and cannot be held responsible for the loss of or damage to any material submitted for publication.

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CEOMANAGING EDITOR

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Tony MwangiNyaga ThagichuSam OtienoJimmy Mayore

Patrick OdenyoPatrick Wameyo

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YOU AND ME6

unaitas unaitas unaitas @unaitas unaitas.comINTERACTIONS

hae I want to join unaitas sco what are requirements

Am a business and normaly pay my rent through ur bank and i was satisfied by your service hence am interested in opening acc. With plz give me the way forward.

Good Morning Charles,thank you for choosing Unaitas,the best performing Sacco in Kenya.The entry requirements are your original and copy of ID and kes 1000 for the minimum membership shares of 100 units @ kes 10.Kindly inbox your contact and location details for follow up.

Good Morning Wilson Lekalkalo for choosing Unaitas.To open an account,you need your original and copy of your ID and KES 1000 for the minimum membership shares.The account opening can be done from any of our branches.Kindly avail your contact and location details for follow up

Rebeka Shatiwa I want to apply loan but I m in Namibia what can I do if I need? Unaitas The policy requirement is that you open a diaspora account and ensure regular cash inflows for atleast three months.The account should also be jointly held with someone in Kenya.Kindly avail your email address to get the guidelines.

Unaitas Unaitas

Charles Mbugua 29 May 2018

Wilson Lekalkalo 31 May 2018

Unaitas 29 June 2018

YOU AND ME


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YOU AND ME8 9


We have come along journey and we are proud

to highlight some of our milestones. In the month of June, we are proud to announce the opening of our 25th branch in Kisumu city. This followed opening of Eldoret, Meru, Kisii and Embu branches bringing the total count to 25.

It’s a good coincidence that our 25th branch is opened at

a time when we are celebrating our silver jubilee this year. We

now intend to carry out a business feasibility study to identify three additional branches in a move that will further advance our brand visibility and national presence.

Another great milestone is our recent migration to a T24 core banking

Mr. Tony Mwangi CEO

Unaitas

system making us one of the few financial institutions in Kenya with a similar ICT infrastructure. The migration was successful and we thank our members for staying calm and patient as we rolled out the system.Though we experienced a bit of teething challenges, I am proud today to announce that the system has since stabilized.

With regards to our business performance, I’m also glad to mention that this year we were able to increase the rate of dividends to 9% from 7% last year. This increase was a s result of a 65 per cent growth in comprehensive income from Sh244 million in 2016 to Sh403.7 million in the financial year ended December 2017.

We are proud of this achievement as we displayed resilience in the challenging business environment characterised by interest rate cap and extended electioneering period to post 27 per cent growth of after tax profit to Sh338 million. In 2016, our after tax profit was Sh268 million. We attribute this growth

to enhanced business strategy and good customer relations supported by entry into new markets which helped our deposits to grow by 10 per cent signaling increased customer confidence.

Another key milestone is the rolling out of agency banking. This gives our members an opportunity to transact business.

The gains we have so far made after agency banking services went live in November 2017 surpassed our targets in terms of the agents onboard, deposit attraction and transactions.

So far we have a total of 400 agents across our areas of operations. We want to ride on this gain and do much better in 2018.

Our achievements are so much that I now invite you to read through and get to learn more about how we are transforming lives of our members.

Keep reading.

FROM THE CEO’S DESK

25 Years 25 BranchesSo far we have a total of 400 agents across our areas of operations. We want to ride on this gain and do much better in 2018.

Tony Mwangi - CEO

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Beating Challenges with Diversity and Technology

Rising from humble beginnings in Mu-rang’a to building a Sacco with an asset

base of Sh11.84 billion was never without chal-lenges.

It now trades as a friendly, accessible, affordable and ethical Sacco with about 300,000 members with a deposit base of over Sh7 billion and core capital in excess of Sh4.57 billion.

But according to CEO Tony Mwangi, such achievement has not come without any challenges along the way.

“It has actually been a learning point. We have learnt to act on challenges and make them opportunities,” he says.

Through the journey, he adds, there have been so many disruptions. However. For every

disruption, the team has remained alert to create an enabler.

“Disruptions are imminent and you have to find a way of overcoming them since there is a very thin line between success and failure,” says Mwangi.

Today, the Sacco is among the well-capitalized Saccos in the country. But it didn’t achieve that easily. Mr Mwangi says that it took “pain” to get there. In 2011, Capital Markets Authority (CMA) stopped it from mobilizing funds from the public.

But Mwangi and his team did not give up. They engaged regulators, explaining the uniqueness of Saccos and the loopholes in the laws. CMA was able to listen. “We were able to make regulators to come together and look for a solution so that Saccos can be able to sell shares to the public. We led from the front and made them understand why Saccos need to do share sale from time to time,” says Mwangi.

At that point, Sacco Societies Regulatory Authority (Sasra) had come up with prudential guidelines that required more capital. The Sacco was successful to raise money, boosting its capital to Sh200 million. It was also an opportunity to sell the brand to the public and explain its ambitions.

Unaitas, then Muramati Sacco, needed to open new branches, invest in ICT platform and reach out to new members. This money was crucial for this. Having started in Murang’a and serving tea farmers, the Sacco was exposed to the risk of weather. This was because the farmers were practicing rain-fed agriculture. To overcome this, the Sacco chose to diversify.

At one point, it had to change its name from Murang’a Tea Sacco to Murang’a Sacco as it opened its doors to small entrepreneurs and salaried employees that were serving in diverse sectors. This helped mitigate the risk of over-dependence on one sector.

Through the journey there have been so many disruptions. However. For every

disruption, the team has remained alert to create an enabler.

By Patrick Odenyo

Unaitas Internal IT Team Colaborating

TECHNOLOGY

Unaitas Internal IT Team with CEO

YOU AND ME12 13

unaitas unaitas unaitas @unaitas unaitas.comunaitas unaitas unaitas @unaitas unaitas.com

YOU AND ME12

GROWING YOU AND ME

FOOTPRINTS

Unaitas Opens Five More Branches

Despite the challenging business environment for the financial services sector, Unaitas has made a bold

move by opening two branches in Kisii and Meru as it seeks to sustain momentum to extend its footprints across the country in line with strategy to expand and increase brand visibility.

The move comes barely three months after Unaitas opened a new branch in Embu late last year in an expansion strategy that seeks to increase members and also see growth and return in equity.

As Unaitas celebrates its 25 years of existence, its 25th bracnh has opened its doors to members in Kisumu.

“Kisumu branch is being refurbished, and will be equipped to open doors in April this year,” said Mr. Tony Mwangi Unaitas Chief Executive Officer.

As Unaitas celebrates its 25 years of existence, its 25th bracnh has opened its doors to members in Kisumu.

By Patrick Odenyo Timothy Ouma & Jimmy Mayore

According to Mwangi, the move to expand Unaitas footprint is a result of increased demand for financial services in these towns whose economies are growing on the back of increased opportunities from devolution, urbanization and a young and enterprising population.

The move is set to deepen financial service accessibility of Unaitas through strategic located branch of the future, enable branch link to the various channels that includes mobile banking, agency banking and ATM services.

“Unaitas has decided to expand to these growing urban centers to leverage on the new lending and membership opportunities that are coming through. Part of our strategy is to tap into emerging and growing sectors of the economy and more importantly is a focused approach on the future through nurturing the youth,” said Mwangi.

BOTTLENECKS Affecting SACCOS

Even though Savings and Credit Cooperative O r g a n i z a t i o n s (Saccos) are playing

a key role in Kenya’s economic development, the government has put in their way many roadblocks that are curtailing their work.

Unitas Sacco Society chairman Joseph Ngaai Kabugu wants the Government to revise some of the laws and regulations governing operations of Saccos to provide them with a better working environment.

Mr Ngaai, who spoke as Unitas celebrates 25 years of existence, is particularly unhappy with refusal by the Government to admit Saccos into the National Payments System, which he said has disadvantaged them against commercial banks.

The National Payments System are the conduits through which buyers and sellers of financial products and services make transactions and are an important component of a country’s financial system.

“We offer the same services commercial banks offer. In fact, some of our services are even better. We are unhappy that we have ended up losing to commercial banks unfairly because of these laws and regulations,” said Mr Ngaai.“Some of the borrowers have their accounts in commercial banks. This forces us to deposit the money into these banks yet the same banks cannot make payments

through Saccos. We end up paying higher rates to borrow the same money from commercial banks when we have liquidity challenges simply because we are not in the National Payments System. These limitations are hurting Saccos.”

Mr Ngaai said the fact that Saccos are not allowed to transfer money the same way banks do is affecting them. “We feel banks are against the growth of Saccos. The Government is discriminating against Saccos yet they are major contributors to the socio-economic wellbeing of the country.”

Even CDF money cannot be transacted through Saccos because of a clause in the law that states a CDF account can only be opened in a ‘reputable’ bank.

“Any Sacco that has compiled with the Central Bank of Kenya regulations as far as the money market is concerned should be allowed into the payments system. The Government should reciprocate to Saccos because they have filled a big gap banks left in the early 1990s when they closed branches in rural areas, a decision that denied the rural fork

important services. Farmers were forced to travel long distances, to major towns where banks were, to get payment for their produce. That is why directors of various tea and coffee factories and farmers formed Unaitas Sacco Society,” said Mr Ngaai.

Mr Ngaai, who has been at the helm of Unitas since 2011, said the Sacco grew from a capital base of Sh1 billon to Sh10 billion within a very short period of time, then from Sh3.4 billion in December last year to Sh4 billion currently.

He said a Government decision to lock Saccos out of forex trading was also unfair as it has denied them business opportunities and a chance to grow through diversification.

In July 2016, Kenya’s financial watchdog, Capital Markets Authority (CMA), issued a new regulation that foreign dealers wishing to trade in Kenya will be required to maintain an equivalent of the Sh50 million capital in the country.

Mr Ngaai said the Unaitas has already met this and other requirements but the Government won’t let then engage in foreign exchange.

“We are ready to offer many services when these limitations are finally removed. For instance, Unaitas has already acquired a state-of-the-art system to allow cash transfer. Customers can make payments using Unaitas accounts without having to open another account in a commercial bank,” said the chairman.

Staff Writer

unaitas unaitas unaitas @unaitas unaitas.comNEW BRANCHES

Unaitas has decided to expand to these growing urban centers to leverage on the new lending and membership opportunities that are coming through. Part of our strategy is to tap into emerging and growing sectors of the economy and more importantly is a focused approach on the future through nurturing the youth.

YOU AND ME16 17


Kisii is a very crucial for Unaitas as it seeks to register its footprints in South Nyanza region mainly because of its

economic activities. Because of its Agri-based economy, Kisii produces bananas, maize, tea, coffee, dairy, and horticulture with some farmers in financial saving groups. The need to expand to Kisii emanated from enquiries from Unaitas clients from the area who bank in their Nairobi branches but could not access the same services back home.

Part of the strategy is to ensure we offer flexibility in access to our services by the farmers and the SMEs in the region by putting in place an elastic eligibility criteria. The opening o Kisii

branch is part of the wider Unaitas branch transformation project, which resulted in opening of 5 new branches. Apart from the new branches strategy, the concept was to have a complete branch facilities upgrade, which seeks to align physical branch locations with modern banking needs and customer expectations. The interior design features modern bright colors, furniture and finishes along with a mix of solid flooring tiles and surfaces. The interior also features a service waiting zone, a meeting room, transaction counters without barriers, an open banking hall and other technology-based solutions.

Kisii Branch is located in the ground floor of Lengetia place, Opposite Tusky’s Echiro on the Kisii-Kisumu Highway with convenient parking as well as a well-designed spacious ambience. The branch intends to serve has more than 15,000 members in region who use this branch for their daily and weekly banking.

“We are proud to serve our Kisii/Nyamira members with this brand-new branch,” said Jimmy Mayore, the Branch Manager Kisii. “This location provides convenience and an enhanced experience in modern, in-person banking.”

The branch experience includes full- and self-service and assisted service options through a discovery bar and interactive open desks along with traditional teller service. Specialized financial expertise is instantly available through the branch’s officers who are strategically positioned in the banking hall, which gives members instant access to a member service representative for help with inquiries on financial solutions in savings, loans and other specialized services.

With 27 financial service providers within the Kisii, Nyamira, Bomet, Homa Bay & Migori counties, Unaitas intends to curve for itself a niche in the region by provision of tailor made financial solutions to bridge the gaps noted in the feasibility study that bore birth to the branch. Agribusiness, SMEs, Chamas, Personal lending, Asset financing,

Trade Financing, Projects loans as well as insurance services will be core to the branch’s member driven transformational agenda living true to the Unaitas vision of “being a global financial movement that enables members to realize their dreams and aspirations”.

Unaitas opened its doors in Kisii bringing a bountiful of opportunities to residents living within the greater South Nyanza region. Kisii being the hub of the region, the branch is targeting businessmen, farmers and salaried employees from as far as Nyamira, Homa bay and Migori counties.

By Jimmy Mayore - Unaitas Branch Manager

KISII Region ripe for affordable financial services

KISII BRANCH

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unaitas unaitas unaitas @unaitas unaitas.comONE ON ONE - KISII

What motivated you into opening your Kisii branch office?Unaitas has a unique offering in the market both as an investment opportunity to the residents of Kisii Region in buying shares as well as in the provision of differentiated financial services. The motivation to open the branch came from the following main drivers; Many enquiries from our clients from the

region who bank in our Nairobi branches but could not access the same services back home. Need to ensure the residents of Kisii get to be part of a global financial movement. At Unaitas, our conviction of the future is based on a philosophy of being more than just a financial institution and we would love the region to be part of this great philosophy. To ensure the residents of the region get to appreciate our unique offering in the agribusiness space. This region being agri based, Unaitas feels indebted from its history to provide the farmers in the region solutions to improve on their agribusinesses.

Kisii has many financial institutions, what makes you different/outstanding?We have unmatched delivery model for Chama financing and capacity building. We understand the power in coming together with shared aspirations and the potential in this and it is this understanding that gives us a competitive edge in Chama banking. Our agribusiness offering in the Tea, dairy, Horticulture

and other agri-value chains is differentiated through our knowledge-based agri-financing. Our solutions in this space are custom-made and for the Kisii market, we shall deliver solutions based on the uniqueness and the pain points of the farmers in the region. Unaitas is creating, capturing and delivering value under a philosophy of being the architects of tomorrow by not just delivering financial services but also creating wealth for our members.

Kisii residents are mostly small scale farmers, how do you intend to venture into the rural market?We have a rich history in working with small-scale farmers in the rural markets both in access to finance and capacity building. This understanding has seen us grow our internal capabilities not only to finance farmers but also provide knowledge platforms including

partnering with other service providers to ensure the farmers are provided with the right information. We have also rolled out an innovative mobile-based agency banking that will enable penetration and access to financial services in the rural areas.

What incentives do you have for such farmers and traders? Unaitas will add into its basket of solutions some more specific and targeted solutions that will fit the uniqueness of this market. We shall offer flexibility in access to our services by the farmers and the SMEs in the region by having in place an elastic eligibility criteria. We shall organize capacity building forums and bring onboard other experts and partners for the benefit of this critical target market. We shall offer banking services through a unique agency banking solution that is both easy to transact on and secure.

Our solutions in this space are custom-made and for the Kisii market, we shall deliver solutions based on

the uniqueness and the pain points of the farmers

in the region.

KISIIMARKET

REGION'Sexpectations from the new Unaitas branch team

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By Carol Muthemba - Meru Branch Manager

We began full scale operations in January 2018 and have so far received overwhelming goodwill from the Meru people. I am also

very grateful to the management and the entire membership of Unaitas for the support that has seen the realization of the

branch from an idea into a reality.

The wider Meru region is not only known for production of the famous miraa crop but also for tea, coffee, macadamia, green grams, potatoes and various grains among other cash crops. This vibrant agricultural sector has supported the development of other sectors for example infrastructure, education and SME industries.This has catapulted the living standards in the region to among the highest in the country. The region also possesses a strong Chama

culture with groups that pride themselves

with years of savings and investments.

This presents a wide and diverse market which has attracted a large pool of financial service providers. As such, there is an opportunity for all players in the market to identify their own niche and serve with much success.

In Unaitas we pride ourselves in having a market experience spanning over two decades. During this period we have been able to walk with our members through provision of innovative financial solutions. It is this dynamism that we seek to bring to the people of Meru to ensure that we become a friendly and reliable partner in time of need.

Our journey began by organizing a road show that covered the entirety of Meru County through which we interacted with the people and collected feedback of their expectations. Through the same forum we invited them to join us at Three Steers hotel on 6th April for our official opening event.

The response was overwhelming and we had a hugely successful event where the people got to interact with the staff and management of Unaitas. Consequently, I am confident that the Meru people are ready to partner with us for financial prosperity.

We continue to reach out to all corners of the county through various marketing strategies that enable us to interact with the people in their places of work at their convenience.

I am lucky to have an experienced team of staff members who have a vast knowledge of the Meru region and are ready to provide our members with excellent customer service. In the next two years, we target to disburse loan facilities in excess of over KShs 350 million targeting all sectors of the economy e.g. Agribusiness, chamas, salaried members, business people and SMEs.

I therefore wish to invite all the people of Meru to join us and become a part of the Unaitas journey as the institution continues to grow and achieve enviable milestones. My promise to you is that my team is ready to provide you with convenient and affordable solutions that will suit your needs.

We believe in smart simple day to day solutions to make your dreams come true. Become a Unaitas member and make this step which will be the first of the rest of your financial journey, because your future is most important to us. Karibuni.

I take this opportunity to welcome you to the newest member of our still growing

family, Unaitas Meru branch. As the branch manager I am honoured to steer

the 22nd branch towards the goal of becoming a market leader in the region.

MERUMERU BRANCH

We are hereto grow you and me

YOU AND ME22 23


Unaitas has opened its 25th branch in Kisumu as it celebrates its 25 year silver jubilee since its inception in 1993. The branch comes at a time the Sacco is celebrating 25 years of transforming lives through creative and

innovative products. It is therefore my pleasure to welcome you to sample our services which we have consistently offered to our members. Kisumu branch being the latest kid on the block,

residents are sure of accessing affordable and reliable services that are expected to not only uplift their livelihoods but also help spur the economic development of the region. The branch is located at Unaitas plaza opposite Kibuye market along Kakamega kisumu highway.It is strategically situated to predominantly serve Nyanza and Western regions.

Kisumu, which literally means a place of barter trade “sumo” and officially known

as Kisumu City, is the Kenyan inland port city on Lake Victoria and the capital city of Kisumu

County, Kenya.It is the third largest city in Kenya after the capital,

Nairobi, and the coastal city of Mombasa. Kisumu is the principal city of western Kenya, the immediate former capital of Nyanza Province, the headquarters of Kisumu County and the proposed headquarters of the Lake Region Economic Block, which is a conglomeration of 15 counties in Western Kenya.

By opening its doors in Kisumu city, Unaitas is promising an array of products that targets all farmers,business community and all public servants who will be able to access salary loans at affordable rates.

The products are both savings and credit.Savings products includes but not limited to Jolly junior savings account,Chama investment account,Biashara current account,Timiza savings account,My chumz savings account and fixed deposit accounts.Credit products include school fees loans,Kilimo Poa advance,salary advance,Asset finance loan,Maono group loans and many others.

The branch will be able to serve neighboring Siaya County. Being the home county for former US president Barrack Obama, Siaya County has been increasingly embracing tourism projects and initiatives that will

eventually create jobs opportunities and hence increase the livelihoods of the residents.

Agriculture and fishing are the main economic activities. Local agricultural production consists of Rice, Cotton, Coffee, Sugarcane, Tobacco, Kales, indigenous greens, Bananas, Sweet Potatoes and Cassava. Cattle and poultry area also kept.

Lake Victoria supports the vibrant fishing industry. There are a number of fisheries in the County that process fish from the lake.

Kisumu is the hub of western Kenya and it is envisaged that the branch will serve far areas of Busia county. Busia County is divided into seven administrative Sub-counties namely Funyula, Budalang’i, Butula, Matayos, Nambale, Teso North and Teso South. These Sub-counties are further divided into 10 divisions, 60 locations and 181 sub-locations.

I therefore take this opportunity to welcome all members and potential customers to Kisumu branch to come and patronize our array of good products and services with a commitment of high quality service delivery and good customer experience.

KISUMU Siaya County covers an area of 2,530.5 sq Km . It has 7 Local Authorities in the following areas town Councils of Bondo, Ukwala, Ugunja, Yala, Siaya and Bondo.

By Timothy Ouma - Branch Manager Kisumu

UNAITAS CLOCKS 25 YEARS BY OPENING ITS 25TH BRANCH IN KISUMU

KISUMU BRANCH

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“Eldoret Town & the entire Uasin gishu county presents a unique investment opportunity due to its good climate conducive for agriculture, tourist attractions, strategic location and developed infrastructure that any serious investor cannot ignore”

We intend to target these sectors together with the salaried & sportsmen and women with an aim of filling the gaps that the existing Financial service providers are not currently addressing through providing innovative financial solutions delivered in a friendly, affordable and accessible manner.

ELDORET

ELDORET BRANCH

UNAITAS OPENS ITS DOORS IN

• Agri-Business-to target Maize, wheat, Dairy, Coffee & horticultural farmers

• SMEs-Trade financing & working capital financing.

• Hospitality Industry & sports tourism

• Academic institutions.

• Real estate Industry-Property purchase financing and Housing construction

• Investments – Targeting organized and registered investment groups.

• Transport – To target the transport industry through the Transport Saccos.

This will also go a long way in supporting most of the Kenyan Government Big 4 Agendas as premised on the following pillars: Manufacturing, universal health care, affordable housing and food security.

Eldoret is a growing town and boasts of many education institutions [Universities & Colleges]. The MTRH and Eldoret International Airport is a great contributor to the economy of this area as the town receives hundreds of visitors on a daily basis.

Eldoret Branch will be an eye opener to the North rift region and will be keen to expanding our business to the Neighboring Counties.

Our focus will be ensuring that we positively touch the economic lives of Uasin gishu county residents in all the six administrative divisions i.e. AINABKOI, KAPSERET, KESSES, MOIBEN, SOY and TURBO. We intend to capture this new market through media and one on one marketing campaign, relationship marketing, member to member and referral marketing as well as targeting specific sector through organizing forums and group discussions. The marketing strategy will be largely advised by the outcome of a detailed market research to identify the various opportunities and gaps that exists in this area.

Joseph Kihiu - Eldoret Branch Manager

YOU AND ME26 27


Embu County is located in the Eastern Region with Mt. Kenya on its northern part and covers a total area of 2,818 square kilometers. It borders Kirinyaga County to the

West, Kitui County to the East, Machakos County to the South and Tharaka Nithi County to the North.

Unaitas is expected to serve the four constituencies within the county namely

Runyenjes, Manyatta, Mbeere North and Mbeere South constituencies. The entire population is estimated to be 543,222 people comprising of 267,609 males and 275,613 females using an estimated annual growth rate of 1.7 per cent.

Agriculture is the mainstay of the county and livelihood of the people. The sector employs 70.1 percent of the population and 87.9 per cent of the households are engaged in agricultural activities.

The upper part of Embu County relies mainly on cash crops such as coffee and tea while the lower part mainly produces food crops. Tea, coffee and cotton have been the main cash crops. However, due to their falling prices, many farmers have in the recent years started growing other crops. Mango farming has become a robust economic activity, finding market as far as Nairobi.

Owing to county’s vibrant real estate, sand harvesting has lately become a lucrative business. One of the key up-and-coming economic incentives is the upgrading of Embu airstrip to airport status, which is expected to link up the county’s agribusiness to external market.

Within the few months Unaitas has been in existence in Embu, there has been a sustained effort to create employment to young people through financing of small income generating activities. A case in point is the purchase of motorbikes and tuktuks. With regards to

bigger projects, the branch has financed mega projects in real estate. Other support areas given to clients include training and capacity building initiatives to farmers and clients engaged in agribusiness such as horticulture.

The financing has seen the loan book grow to close 100 Million within nine months. This has seen the deposits grow. The branch has adopted a customer relationship model whereby the customer journey is monitored at all touch points. Such relationships see the staff assist customers in their various stages of investments such preparation of Bill of quantities and guidance throughout the project.

The branch is proud to have financed 16 young men who came together and started monthly saving of Kshs300 at Unaitas Embu branch. The group has since acquired a Nissan vannette van to ferry passengers from Karurina to Embu Town.

Bearing good tidings for residentsof the town

UNAITASENTERSEMBUBy Ruth Kagai - Branch Manager

EMBU BRANCH

YOU AND ME28 29


Unaitas aligning to the Big Four National Agenda

A VISION FOR YOU AND ME

President Uhuru Kenyatta has announced the ambitious legacy projects that he has committed to have in place by the time he exits

office in 2022.

Christened as ‘Big Four” agenda, Uhuru’s administration is keen on four key areas- improved food security, universal health care, affordable housing and revamped manufacturing sector.

With the President keen on seeing the private sector take lead in making this a reality, Unaitas Sacco is alert to the opportunities that the mega projects envisioned in this agenda presents. According to the CEO Tom Mwangi, the Sacco wants to play a significant role in the Big Four agenda.

On housing, the Sacco is embracing financial solutions that deliver low cost housing to members.

“We have project and special project loan and 90 per cent is to own a home. We have also partnered with other institutions that offer construction so that we finance them,” says Mwangi.

Also, anytime there are expos or open day events by real estate companies, Unaitas participates. This is usually an opportunity to connect with potential home buyers and strike financing deals with them.

Unaitas has started business clinics to popularize the awareness that it can finance potential home owners through simplified and affordable products built with them in mind. Residents in places such as Kawangware and Rongai are beginning to take note.

Under the big four agenda, government is keen to deliver about 500,000 affordable houses and this provides opportunity to developers and financiers.

“With proper incentives from government we can do more. One of the incentive we are pushing government for is to give mortgage relief to cooperative societies. If it happens, we will drive more numbers,” says Mr Mwangi.

In health, Unaitas has been supporting people who come together to open clinics, hospitals or medical centres at the county levels.

With Big Four in place, the Sacco’s ambition is to finance at least one health facility in

Under the big four agenda, government is keen to deliver about 500,000

affordable houses and this provides

opportunity to developers and

financiers.

By Patrick Odenyo

each county that it has presence in. this will help decentralize medical care.

If you have organised yourself and you have what it takes to start a health facility, Mr Mwangi says that Unaitas doors are wide open to finance you.

“We can be able to finance health facilities to help deal with lifestyle diseases such as diabetes and blood pressure to minimize the need to crowd in one hospital,” he said.

On food security, the Sacco has been greatly involved in promoting agribusiness. With the state’s agenda, it wants to go deeper into the sub-sectors such as horticulture and subsistence food.

The Sacco has created a whole section to focus on agribusiness to drive the agenda better.

In manufacturing, the Sacco is keen on promoting value addition to the SMEs. The Sacco offers end to end financial solutions from production all the way to marketing.

“We have helped people set up juakali shops and we think we can help them move to the next level,” said Mwangi.

The firm has previously benefitted from government initiatives such as women and youth-centred programs. It developed micro-leasing product and targeted youth and women startups that had no collateral as long their ideas were superb.

YOU AND ME30 31


Unaitas PROFITS338 Million

ANNUAL GENERAL MEETING

The Sacco displayed resilience in the challenging business environment characterized by interest rate cap and extended electioneering period to post 27 per cent growth of after tax profit to

Sh338 million. In 2016, after tax profit was Sh268 million.

Its enhanced business strategy and good customer relations supported by entry into new markets helped the Sacco’s deposits to grow by 10 per cent signaling increased customer confidence.Despite total income dropping marginally by 4 per cent due to the impact of rate cap, which reduced average lending rates and the interest rate spread.

Unaitas was able to offset the shortfall with innovative cost management strategies, reducing cost by 10 per cent.

At the same time, total assets expanded by 10 per cent in a year to year with a similar growth rate being demonstrated on savings and deposits. Unaitas was in compliance with all regulatory requirements in a year that saw its liquid ratio rise by 100 basis points to 34 percent. The minimum statutory ratio is 15 per cent.

Along this solid performance, the board of directors has proposed a dividend of 9 percent on investment shares, which is an increase from the 7 per cent that was paid in the previous financial year. While in 2016 the Sacco distributed Sh192.1 million in dividends, the board is proposes to declare Sh273.9 million on last year’s performance. This translates to a dividend rise of 43 per cent.

The Sacco intends to open up new branches in Kisumu and Eldoret next month to solidify the gains that are already being felt with newly opened branches in Embu, Meru and Kisii.

According to Joseph Kabugu, the Chairman of the board of Unaitas the

Along this solid performance, the board of

directors has proposed a dividend of 9 percent on

investment shares, which is an increase from the 7 per

cent that was paid in the previous financial year.

Unaitas has posted 65 per cent growth in comprehensive income from Sh244 million in 2016 to Sh403.7 million in the financial year ended December 2017.

Core Capital Assets

39%38%

Total Deposits

65%63%

Total Expenses/Revenue

47%55%

Member Interest Rates

09%07%

Deliquent Loans

07%05%

2016 2017

firm also intends carry out a business feasibility study to identify three additional branches in a move that will further advance it brand visibility and national presence.

“The gains we have so far made after agency banking services went live in November 2017 surpassed our targets in terms of the agents onboard, deposit attraction and transactions. We want to ride on this gain and do much better in 2018,” he said.

The Sacco has successfully laid the platform for growth and quality management in its internal processes and sees growth supported by emphasis on SME lending. In addition, the Sacco will soon be rolling out its IT project that will include launch of a superior core banking system as well as an ultra-modern data center facility and infrastructure to support various systems. “We are optimistic that this actualization will improve efficiency on delivering financial solutions to a growing customer base, improved Turn Around Time and system uptime,” said Mr. Kabugu. The Sacco also wants to focus on insurance with a special attention on school insurances.

Joseph Ngaai Kabugu - Chairman

TRANSITION

T24 SYSTEMICTDigitization

Spanning over 23 years of dedicated provision of financial services to Kenyans, Unaitas is now turning a new chapter that will see it joins the ranks of the world’s best financial ICT infrastructure hosts in Kenya’s history.

By Sam Otieno

Unaitashe surge in membership is constantly pushing the organization to record high levels. But the current banking system the organization has had for years has since struggled to keep up with the demand. And because the 21st century customers and the millennial are fast looking into alternatives, it’s make or break time for the giant Sacco. It will take a historic shift to a new system for Unaitas to keep up with the competition.

“This system is a world known system which is tested across the world and here in Kenya, there are several institutions using it including the Central Bank of Kenya,” says Mr. Joseph Ngaai Kabugu, Unaitas Chairman, Board of Directors.

According to the Unaitas chairman, the system is critical in securing customers data and is also able to link with other service providers to incorporate new products and services.

Unaitas CEO Mr. Tony Mwangi says the R17, latest version of T24 the latest in the market, which is owned by Temenos. “In this market, there are very few banks which have been able to have this version. So we pride ourselves to come to Kenyans to tell them that we have the best in Unaitas today.

“This is a new dawn for Unaitas that we would like to bring on board Kenyans. We want to make Unaitas a fun place so that

YOU AND ME34 35


customers can see the difference between what we a re giving you and what the others are giving. We want to see true differentiation in the services so that they may be able to be part of this successful story”, said Mwangi.

According to Unaitas Chief Manager Commercial Mr. Peter Njuguna, T24 assures our customers that their data integrity is intact and we will be able to mitigate ourselves against cyber frauds. “What we will deliver to you is more secure, efficient, and we have more lee way to tailor more products and services for our customers,” said Njuguna.

Njuguna adds that Unaitas invested in T24 because the organization values its customers “and we want Unaitas to the future ICT hub in banking”.

For the first time in its history, Unaitas opens its doors for a glimpse into one of its milestones projects ever. According to the Chief manager ICT Mrs. Irene Lagat, the organization made the decision to implement T24 in line with its ICT strategy which is also in line with the overall organization strategy and this is specifically driven by the need to be able to provide customers with efficient services.

“The T24 implementation project has been a long journey which began early 2016 and we are glad that we have finally gone live,” said Lagat. Willy, Muinde, Unaitas head of ICT infrastructure says the investment is a milestone in catching up with ICT disruption in the banking industry.

Paul Babalogbon, Head of projects at Jethro one of the implementing partners says the first step for us was to understand the agenda of the organization and how the

MIGRATION TO T24 SYSTEM

“In this market, there are very few banks which

have been able to have this version. So we pride

ourselves to come to Kenyans to tell them

that we have the best in Unaitas today.”

system migration fits into their agenda. In order to accomplish such big results were to be very committed despite the lots of up and downs we experienced with data, infrastructure and issues on technology but I can gladly say that we have overcome those challenges and we are here today successful.

Oluseyi Ajagbule, CTO, at Jethro says “We started with the implementation of the R15 version of the core banking system, we were able to take Unaitas to the latest release which is R17 and is the latest version in the market”.

It’s housed on the company’s headquarters, in a highly secured place. This system is incredible and has been celebrated in the banking industry. But that’s not all. This system has capabilities to process customer interactions faster.

After weeks of rigorous dress rehearsals, a multi million state of the art system is

ready for live take off. This process necessitated service interruption to members during the Easter holiday when spending is usually at its peak.

Even for staff the story was the same. While most Kenyans were at home celebrating Easter, Unaitas staff members were at their respective workstations to ensure customers would enjoy un interrupted services with the system go live.

“The success of this project is a sign that we have achieved our strategy. As a department of Finance and strategy at Unaitas, we are looking forward o make good use of the data that we generate from the system to make good decisions for the purpose of investments and in the long run bring a lot of benefits to our members,” said Mrs. Rosemary Karanja, Chief Manger Finance and Strategy.

According to Mr. Nyaga Thagichu, Chief Manager Human Resources and Administration, Unaitas sought a core banking system that will take the organization to the next level.

“Through this system, we believe our members who are people who keep us awake everyday as we ensure they access services in a more efficient manner get full benefits of this project,” said Nyaga.

In his parting shot, Unaitas Chairman says “I wish to thank our members for bearing with us for the four days we were closed during the Easter Holidays. We wanted to change every part of their data secure through this system”.

With the new system up and running, Unaitas will continue to strengthen its operations. Through consistent delivery of exemplary customer experience, a well-calculated branch expansion strategy.

Allowing its members to enjoy uninterrupted efficient services from the range of robust technological advancement in place, its mission of attracting new members while keeping their existing ones tightly in.

YOU AND ME36 37

unaitas unaitas unaitas @unaitas unaitas.comCORE BANKING SYSTEM

LEADING THE PACK WITH

CORE BANKING SYSTEMS

As part of its ICT strategy, Unaitas embarked on a journey to change its core banking system. For close to 10 years the organization has been running on bankers Realm that has been the main system it has utilized until the acquisition of the new one. With to the view to stand out and becoming outstanding T24 was chosen as the system to transition the organization.

When customers today choose which financial institution to use they will

inevitably look at the digital services it offers. This is the reason why Unaitas

adopted proper ICT systems to support the growing customer demands for efficient

financial services.

Why a new core banking system?• Enhance customer experience through provision

of convenient customer channels and flexibility to tailor products to identified customer segments and unique customer requirements.

• To support and augment reengineered business processes to enhance efficiency, productivity and support a customer centric organization

• To provide employees with a system that supports them to achieve the most out of their potential and reduce their involvement in menial tasks to allow focus on customer.

• Robust platform and architecture to support expected growth, manage risk and monitor business performance.

Challenges• Delays in the project due to some milestones

taking longer than expected• Change management from the old system to the

new way of performing various functions• Complex system requiring robust infrastructure

and technical expertise

Successes• Robust system that has been tested by other

financial institutions• Ability to comply with regulatory requirements• Highly customizable system to allow digitization

and development of products that meet the changing customer needs

• Improved customer experience

By Irene Lagat

YOU AND ME38 39


fulfillment of the principle of ’cooperation’ in the cooperative movement. We have been role models to many Saccos because Unaitas has gone ahead in some areas,” said Mr Ngaai.

In the same breath, the chairman said since the new system for cash transfer is expensive and some Saccos may not afford it as at now, Unaitas is ready to lease its system to them and proceeds used to increase members’ bebefits.

At the same time, Mr Ngaai said Unaitas is among the seven major Saccos in that country that are helping in the review of the Cooperative Development Policy to made the business environment for Saccos even more friendly.

This Policy Paper on promoting co-operative enterprises for industrialization presents a policy framework aimed at accelerating the growth of Kenya’s co-operative sector in a dynamic and competitive environment. It replaces Sessional Paper No. 6 of 1997, on Co-operatives in a Liberalized Economic Environment.

Among other things, the policy highlights the historical background of the co-operative sector and explains why the sector remains an important contributor towards industrialization and economic development in Kenya as captured in Vision 2030.

And Unaitas has been playing a key role in the process that is being spearheaded by the State Department of Cooperatives under the Ministry of Industry, Trade and Cooperatives, based on its experience of 25 years of existence.

Mr Ngaai said Unaitas will also continue pushing for changes in the laws and regulations guiding the banking industry as well as the cooperative movement so Saccos that fulfill requirements can also be allowed to offers banking services.

CHAMA GUARDIANSHIP

or instance, Unaitas has effectively played its ‘big brother’ role, mentoring many smaller Saccos in Kenya. The country has about 22,000 unions and societies with an asset base of Sh780 billion.

Unaitas has been a pacesetter in the development of products as well as acquisition of technology.

“Many Saccos have been visiting us to learn the best practices in the cooperative movement and we have been helping them. We are willing and ready to do more as a big brother,” said Unaitas Sacco Society chairman Mr Joseph Ngaai Kabugu.

He said while some Saccos are concentrated in some regions, Unaitas with over 300,000 members and 300 staff across all tribes, groups and regions, is setting the pace by opening branches all over the country.

“Some of the officials want to know the best way to manage Saccos and we have been welcoming them in

Unaitas Sacco Society is one of the five biggest

Savings and Credit Cooperative Organizations

in Kenya and its role in the development of the

cooperative movement has not gone unnoticed.

UNAITAS

ROLEBIG-BRO

ENDORSEMENT


Christina Shusho - Unaitas’ Brannd Ambassador

I was a struggling gospel artiste in a competetive music field. I had very little funds to pay for recording and studio time while video production was a long range dream because it is an expensive affair in Kenya. A friend told me about Unaitas and advised me to join. Today I can say that Unaitas has helped me shine through my dreams.

0709 253 000

YOU AND ME46 47


Customized product – We have a product customized from the welfare to an investment group. Our product fits all when it comes to investments and savings. You can borrow up to 12 times the Chama savings.

Our aim and value – we aim at transforming your investments ideas into reality.

» Customized service delivery by having champions all over our branches who offer trainings and service delivery. We observe our timelines and turnaround time when it comes to feedback. We have free spaces and rooms for Chama’s to share their meetings.

» Networking forums- organized regional wise and nationwide where we train Chama’s on investment opportunities.

» Technology – we have embraced technology making work easier to banking’s and transactions

» Leadership and a listening ear ranging from top level to the bottom

CHAMAS

WHY UNAITAS IS A HOME FOR CHAMAS

Look around you and you will find that all the Chama’s are now running to Unaitas for they have noted some Chama’s that have accomplished so much just by being a member. Well, this did not just happen, there are some things Unaitas is doing differently that has made these Chama’s meet their success.

Pathways To InvestmentsChama’s works if they only have one thing in common. They work if me as a member I can see how am going to get helped.

1. CONSISTENCY IS A MUST NOT HOW MUCH YOU BRING

» A good Chama is consistent in savings to be financed. If you can’t borrow you can’t get an opportunity called “now”.

» Displine to save is not excusable. » Chama should not do want one person can

do. You should do what we can’t alone. » In a good chama there is only equity.

Minimum not maximum. This will help you move faster. There is no company owned equally. Investment is not fairness but equity.

2. COMMONNESS IN GOAL » A group must have the membership of

common minded people. » You must have a clear line of what you want

to do, you must have a common goal and the measurement is return on investment.

3. LEADERSHIP » You can’t lead without knowing what the

leadership means. » Give the right person the right role. A leader

is person to understand. » A good leader doesn’t require penalty but

money (contributions) must come first. » Successful Chama members are team

players. Though members of the Chama are individual thinkers; they all act with same definiteness of purpose towards actualizing a common goal.

4. INVEST IN GROWTH OPPORTUNITIES:

» The purpose of the Chama is to grow your capital, and the investments should reflect that.

» This isn’t for cash that you may need in a medical emergency or to cover monthly expenses.

» Never fall in love with an asset……. It’s for profit not ownership

» Invest in profits generating projects.

5. DIVERSIFY YOUR INVESTMENT PORTFOLIO:

» Diversify your assets and portfolio in terms of investment type, sector and level of risk.

HOW TO SUCCEED WITH YOUR CHAMASENSE OF PURPOSE

» In successful Chama’s all the members know the Chama’s goals, objectives and vision at their fingertips; and they are focused in the pursuit of the Chama’s objectives. They know their specific role in the Chama and they concentrate on this role to make sure that the Chama objectives are met.

Commitment » Take a closer look at the characteristics that

make up successful Chama’s and you will see commitment at the core. Successful Chama’s are committed to the success of the Chama in which they are part of.

Goal and Result Oriented » Successful Chama’s are result oriented.

They know that their competence and credibility will be judged based on their

Sarah Njuki


YOU AND ME48

CHAMAS

accomplishment; so they press forward for positive results because results keep them in the game. If they fail to produce results; they will get kicked out of the Chama by the Chama leader.

Team Players » Successful business teams are

team players. Though members of the Chama are individual thinkers; they all act with same definiteness of purpose towards actualizing a common goal.

Bonded by the Chama Mission Statement

» At the core of every successful Chama is something very important. This single factor is the reason why successful Chama’s are successful and this factor is the “Chama mission.”Successful Chama’s know that the investment spirit is in the Chama mission and that’s why they strive to stay focused on the Chama mission. It’s this same mission that keeps them together as a Chama; take the mission away and the center will not hold any longer for the entire Chama.

Good Leadership » Leadership is key to an effective

Chama. Without a strong leader, a Chama can feel out of control and chaotic. The leader does not necessarily have to be a specific person, but can also be a group

of persons. Some common traits for good leaders include courage, fairness, and intelligence, the ability to be straightforward, friendliness, honesty and creativity. Leadership is essential to unite the group together and organize the vision.

Listening Skills » For a team to be able to thrive, it is important that

all of the members listen to each other. If something is not understood, clarification is crucial. Chama members should show an active interest in how others think and feel.

Trust » Trust is one of the fundamentals of a Chama. The

Chama members should trust each other and also have trust in their leader. People on the Chama should be confident that the other members’ actions are in everyone’s best interest. Feelings like doubt and suspicion should never be present in an effective Chama environment.

Lack of Selfishness » To make a Chama succeed, there can never be any

room for selfishness. Selfishness defeats the entire purpose of what Chama’s are all about. Nobody in a Chama should be in it looking for personal credit, but rather, credit as a Chama. Selfishness often leads to counterproductive issues, such as competition from within a Chama, which can be bad to the final goal.

»Mutual Appreciation

» In teamwork, it is important for the members to be able to share in their successes. On the way to a goal, it can help greatly to boost morale to celebrate all of the little victories. Give your members a pat on the back when they come up with or accomplish something good for the Chama. Make your members aware that you appreciate them and enjoy working together.

YOU AND ME


Zero Opening and Operating Balance

Unaitas Chama Account

The Home of Chamas


YOU AND ME50 YOU AND ME50 51

unaitas unaitas unaitas @unaitas unaitas.comCHAIRMAN’S PROMISE

The chairman noted that in the last payout, Unaitas gave out up to Sh270 million in dividends and this is set to increase in the coming years.

Unaitas’ capital base was only Sh186 million in 2011 when Ngaai took over but has grown Sh4 billion.

“More benefits are coming and that is why I am urging nonmembers to join Unaitas so we can grow together. We don’t know losses. We have only been making profits over the years. We made profits even when commercial banks were posting losses,” Mr Ngaai said even as Unaitas celebrates its 25 years of existence.

Mr Ngaai adds:”As a matter of fact, we have the latest system and it can literally handle all Kenyans. We want to register more members so we can increase our deposits as we roll out more products that will better the lives of Kenyans.”

He said after noticing that Saccos are only attracting the elderly, Unaitas has been designing new products that will help bring youths on board. “We are using the latest technology to make it easy for the young people to transact.”

Unaitas has been dominant in Mt Kenya region where it started. However, the Sacco is on an expansion mission with a view to covering the entire country. Unaitas has 25 branches in various parts of the country and is still growing.

Recently, Unaitas opened new branches in Kisii, Eldoret and Kisumu and has plans to open more in Mombasa, Bungoma, Kitale and Eastern.

“Our clients in these areas should expect more products and better services. We started in Murangá but we have since tested our products in Nairobi and they have worked well. We plan to go to penetrate the rural areas, even in the interiors, as we seek to reach more people,” Mr Ngaai said.

Among the new products Unaitas is looking to offer are contained in the Enterprise Development plan, where the Sacco will be looking at the entire value chain and design products for each participant as it seeks to accommodate everyone.

“We want everyone to feel comfortable. For instance, we will have products for farmers, transporters, auctioneers, factory workers and managers, among others. We don’t want to leave anyone behind,” says Ngaai.

He said even though Unaitas is digitizing its operations, there are aspects of their work that will be left to workers. He said they will also identify some branches that will be used for internet banking.

“There are things the machines cannot do. For instance, they cannot answer questions. We also want to retain that human aspect, even as we deploy the latest technology, so our staff can handle clients’ emotional needs,” said Ngaai.

It is not easy to remain consistent for so many years, whether you are an individual or a group. However, this is a myth the Unitais Sacco Society has dispelled after 25 years of delivering quality services punctuated with exponential growth.

And according to Unaitas chairman Joseph Ngaai Kabugu, Unaitas’ 300,000 members should expect even better days ahead.

Mr Ngaai says plans to transform Unaitas into a commercial bank and listing its shares at the Nairobi Stock Exchange (NSE) are

still on course and this will translate into more benefits for members.

“Everything will be clear by the end of this year even though we know we will list our shares at the NSE next year. We plan to start offering the services we have always wanted to offer our members as soon as the limitations we faces, including being denied access to the National Payments System, are removed. We have fulfilled all the requirements and all that remains is for us to be allowed to undertake some of these activities including commercial banking,” Ngaai says.

Plans to list at the NSE and converting Unaitas into a commercial bank are

contained Unaitas 2014-2018 strategic plan. Part of efforts to fulfill these promises was to

buy the latest banking system to enable cash transfer.

Ngaai said Unaitas switched to the new system in April this year. The Sacco also plans to lease the system to smaller Saccos that may not afford to buy their own and proceeds thereof will be used to increase members’ benefits.

BETTER DAYSAheadUnaitas Chairman: Joseph Ngaai Kabugu

YOU AND ME52 53


naitas Sacco as is known today, has had to do about seven key transformations along the way. But with every change a new milestone was marked, leading to the building of a Sacco that can now comfortably attract deposits worth Sh40 billion.

As it marks Silver Jubilee with a membership of over 300,000, long serving CEO Tony Mwangi spoke about the ups and downs of this journey as well as the opportunities that lie ahead as seen through his eyes.

“It has been a long and unwinding journey. We look back to this journey with a smile considering the milestones over the years. Looking back, we can say we have had challenges and achievements,” says Mwangi.The members came together for two key

FROM A HUMBLE BASKET INTO A

NATIONAL SACCO

In 1993, a pioneering group of farmers pooled together their financial resources into a humble basket from which they could loan to each other at affordable interest. The journey to building a formidable savings vehicle in excess of Sh3 billion in capital had just started.

MILESTONES

Unaitas CEO: Tony Mwangi


YOU AND ME54

intentions- economic empowerment and promoting financial inclusion. They wanted to fill the gap that had been left out by mainstream banks in rural areas.

That time, various group of Kenyans, especially those in informal employment, were viewed by banks as risky and of less economic benefit. But the Sacco saw an opportunity and moved to promote financial inclusion.

“We needed to make Kenyans feel dignified. We focused on rural areas and grew from strength to strength because we were able to do three things- listen to customers, offer solutions to their needs and give them hope that their future was going to be bright,” explains Mr Mwangi.

By the year 2000, the Sacco had grown to a point where members felt the need to reach out through branch expansion. also needed to expand beyond Murang’a. Originally, it had been trading as Murang’a Tea Growers Sacco Society. The name would later change to Muramati Sacco in 2007 when administrative areas expanded beyond Murang’a.

According to the Sacco’s Chief Executive Tony Mwangi, the Sacco also had to drop the word ‘tea’ from its name as it opened up to serve not only tea farmers but also medium size entrepreneurs and salaried employees. “Tea used to define the niche we were serving at that time. When we diversified, we had to drop that. Muramati came because the boundaries were curved, creating three districts out of original Murang’a,” explains Mr Mwangi.

The name was coined from the three new administrative areas - Murang’a, Maragwa and Thika. Coincidently, it connected easily with members given that in kikuyu dialect, Muramati translated to a ‘good steward.’

This transformation served to win new members but also reduce the risk of relying on tea farmers alone.

Unaitas has grown in leaps and bounds. Today,

it has 25 branches. In its 2014/2018 strategic plan the board had set

a target of 28 branches. In the next five years, the management has set its eyes on having

representation in almost all corners of Kenya.

HUMBLE BEGINNINGS

Since tea crop farming was dependent on weather, returns from agribusiness were also tied to the kind of weather that farmers faced during the year.

“Farmers had depended so much on rains. It had become very erratic because sometimes it rains too much and sometimes too little. In bad seasons, the Sacco had to bear losses of farmers unable to repay their loans,” says the CEO.

But by diversifying membership and also playing in diverse sectors, this risk was mitigated against, helping the Sacco to enjoy stable earnings.

On the first three years, the Sacco was able to open 10 branches to help members to access services easily. Technology by that time was such that mobile banking was unforeseen. It was therefore stylish to open new branches. The period between 2000 and 2005 was defined by two key things- branch expansion and diversifying sectors. Then in 2012, one major transformation happened. The Sacco rebranded to Unaitas, adopting a strong, bold brand that is inclusive of members from all walks of life.

“We wanted to show Kenyans that truly we had become a national Sacco and a household name for Kenyans and not just a particular region,” says Mwangi about the big change. Getting this name was not easy. The process was elaborate. Mr Mwangi regards this corporate branding as the biggest in the 25-year history of the Sacco. This is in terms of the way it was conceptualized, internalized, actualized and received by Kenyans

The Sacco used focus groups and visited different areas such as Kisumu, Kakamega, Meru and Mombasa. But out of the list of five names, Unaitas was popular among 70 per cent of the respondents.

“They believed in us, believed in our promise and felt we gave them hope. They said they’ve been looking for a home and found it in Unaitas,” says Mr Mwangi.

The Sacco used focus groups and visited

different areas such as Kisumu, Kakamega, Meru

and Mombasa. But out of the list of five names,

Unaitas was popular among 70 per cent of the

respondents.


YOU AND ME56

YOU AND ME


For Sacco Member FarmersMoCASH Advance

Against crop and animal produce chanelled through Sacco

6 Months LOAN TERM

HUMBLE BEGINNINGS

Unaitas has grown in leaps and bounds. Today, it has 25 branches. In its 2014/2018 strategic plan the board had set a target of 28 branches. In the next five years, the management has set its eyes on having representation in almost all corners of Kenya.

Last year, the Sacco posted a 65 per cent growth in comprehensive income from Sh244 million in 2016 to Sh403.7 million for the year ended December 2017. The Sacco displayed resilience in a challenging business environment punctuated by drought, interest rate cap and extended electioneering period to post a 27 per cent growth in net profit to Sh338 million. In previous year, profit was Sh268 million.

“We looked at the impact of rate cap and saw three things- that the future is going to be dictated by volumes, prudent cost management and research and development,” Mr Mwangi spoke on the secret of growing profits even as its peers fell behind.

On dividend, the Sacco weathered last year’s storm to declare a dividend of 9 percent on investment shares which is an increase from the 7 per cent that was paid in the previous financial year. Total dividend payout was Sh273.9 million, a 43 per cent growth from Sh192.1 million in 2016.

Today, the Sacco has become a true home of chamas. It has in excess of 5,000 chamas and the management sees a brighter future having developed new products to respond to the changing needs of chamas. Another big achievement has been the migration to T 24 which involved among other things, changing the core banking system and rerouting the servers. This was at a cost of Sh700 million.

Back in 2011, the firm had to be stopped by Capital Markets Authority from floating and selling shares. At that time, its capital base was about Sh100 million. But after discussions with CMA, the Sacco later on floated the share-sale to the public.

“Despite the hitch, we were able to regularize the process and they were able to give us a clean bill of health. We raised about Sh100 million enabling us to grow our share capital to Sh200 million,” explains Mr Mwangi.

After the storm, more people bought shares in Unaitas. It was a case of a challenge being converted into an opportunity to explain the ambition of the Sacco even better and make it known.

Today, the Sacco has in excess of Sh3 billion in capital, making it play in the league of the most capitalized Saccos in the country. It has in excess of Sh4 billion in equity and therefore it can comfortably attract up to Sh40 billion in deposits. Despite these successes, the Sacco is promising more brighter years ahead. It wants to attract more youth and women and continue developing innovative products and be counted as a home of wealth creation for members.

“We want to become more available and accessible to our members. We want to be different and be counted to do those things not done by others,” says Mr Mwangi.

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unaitas unaitas unaitas @unaitas unaitas.comSACCO ACT AMMENDMENT

The main question stakeholder have been asking is; why would anyone want to introduce, in the cooperatives movement, people who have not been part of the growth of the sector and give them

control over members’ hard-earned money? In the arrangement, the Cabinet Secretary, by way of an ordinary resolution, will create the ‘social impact members’ who shall not be subject to the primary and normal requirements that each member has to subscribe to and purchase a given number of shares to be admitted into membership of a co-operative.

And according to Unaitas Sacco Society chairman Joseph Ngaai, there are fears that this group of people will unfairly gain from the sweat of their members.

“Members fear losing control over their savings and ownership of cooperative societies to people they don’t even know,”Mr Ngaai said.

He added: “We also know there are cartels and individuals who want to clean ill-gotten money and they think they can use Saccos. That is one of the reasons many stakeholders are opposed to the said changes.”Mr Ngaai also noted that a perception that Saccos are badly managed compared to banks is also hurting

cooperative societies. He noted that some unscrupulous people want to ride on this perception to sneak into the Saccos and reap from where they did not saw.

“It is because of this perception that we also asked for a regulator, the same way commercial banks are regulated by the CBK. However, even when we got the regulator we still face many limitations that have affected our operations. The regulator has not helped us resolve most of our challenges, especially in regards to liquidity,” said Mr Ngaai.

He said the ‘special impact members’ will interfere with the normal running of Saccos. “Our operations are anchored on various principles among them democracy, freedom of members to join and withdraw freely, cooperation among Saccos and unions as well as economic participation. Some of these principles will be infringed upon by the new members,” said Mr Ngaai.

The said changes, if effected, will affect 22,000 unions and cooperative societies with a total asset base of Sh780 billion.

Stakeholders are also uncomfortable with the fact the sponsor of the proposed changes to the Co-operative Societies Act and the Sacco Societies Act by the Statute Law (Miscellaneous Amendments) Bill, 2018 (National Assembly Bill No 12 of 2018) has not been revealed, raising questions about the motive of the changes.

They proposed changes also touch on membership, voting rights and investment decisions for societies.

In further amendments, ‘social impact members’ will enjoy the right to attend and participate in decisions taken in a general meeting of the society and to vote. They will also have the privilege of being elected into organs of the society.

The Co-operative Alliance of Kenya (CAK), an umbrella lobby for the 15 million-member-strong co-operative movement in Kenya and the Kenya Union of Savings and Credit Cooperatives Ltd (Kuscco) have also opposed the changes and vowed to use all means to ensure the changes don’t succeed.

Calls to review the Cooperative Societies Act to introduce the so-called

social impact members have been generating a lot of heat since the proposal was made early this year.

Stakeholders are also uncomfortable with the fact the sponsor of the proposed changes to the Co-operative Societies Act and the Sacco Societies Act by the Statute Law (Miscellaneous Amendments) Bill, 2018 (National Assembly Bill No 12 of 2018) has not been revealed, raising questions about the motive of the changes.

SNEAKING MEMBERS IN SACCO ILL-ADVISED

By Contributing Guest Writer


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MARKET PRESENCE

y the end of this year, Unaitas seek to have 1200 agents as it leverages on technology to make services more accessible and efficient to its members. Some of the services offered by the agents are cash deposit, cash withdrawal,

fund transfer, balance enquiry and issuance of mini statements. This is part of the organization’s corporate strategies to offer accessible and affordable services to its members.

The system uses a latest mobile technology that is faster and user friendly which ensures a high success rate of transactions.

Agency banking initiative joins other channels Unaitas has utilized such as mobile banking platform Mocash, ATMs and soon to be launched Unaitas mobile app.To make agent on boarding easier, Unaitas has simplified the requirements to include less capital required. One needs to have a business that has been in operation for a minimum period of 6 months. Through this plan,

Unaitas also seek to grow its revenue and deposits based on the increased number of transactions. Analysis shows deposit transactions controls at least 60% of the transaction compared to withdrawals.

Unaitas has carefully selected agents in different strategic locations to ensure the members can trace them without any challenges also the premises/shops of the agent are well branded with necessary materials.

Developments of the channel are still in progress to ensure all kinds of financial services are included and can be performed under the agency comfortably and without challenges to the members.

The introduction of agency banking is envisaged to reduce banking costs such as travel time to physical branches, reduced time

spent on long banking hall queues. However, there has been visible evidence that the new innovations are still being underutilized by members.

Due to evolving competitive environment in the industry, Unaitas will continually rethink the strategies already in place to ensure more technological innovations are initiated to remain one of the leading financial institutions in Kenya.

Through this, Unaitas seek to remain true to its promise of ensuring that greater efforts is channeled towards customer centric approaches in order to win customer loyalty.

This in the long run will ensure not only we retain the existing customers but also increase the attraction rate mainly through referrals from satisfied customers.

Unaitas has engaged 400 agents in an ambitious plan to establish market presence across its areas of operation as well as reduce branch foot traffic.

Unaitas increases market presence

By Joseph Kimani

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TYPES OF LOAN PACKAGES OFFEREDThe collateral required depends on the loan type and the amount. We as Unaitas, offer recourse and non-recourse loans depending on the nature and type of the Loan package offered i.e SME, Chamas, Personal Loans, Agri-Business and many more depending on the value of the security.

For a limited partnership, public liability company, or sole proprietorship, most businesses apply for a commercial loan which is provided under the SME Package. Offering collateral is one way to prove that the company is a viable borrower.

Before deciding on the of loan, we look at equity contributions, assets, revenues, credit history, and the company’s statement of accounts. We encourage collateral even if the company has a good credit rating for maximum security.

LEGALITY AFFAIRS

TYPES OF COLLATERALCompanies and individual borrowers can use two types of collateral – assets they’ve already pledged and assets and property they own. We prefer property for which the borrower has a title of ownership. The property has to be valued by the valuers in the panel. Borrowers who apply for a car loan can pledge the vehicle where joint registration is done till its paid in full. There are benefits to pledging an asset to secure financing.1. Secured loans come with a lower interest

rate and a longer repayment period than unsecured debt. We face less risk in case of default and can repossess the property or asset pledged as collateral. With unsecured debt, we will offer loans based on the applicant’s creditworthiness;

2. Borrowers use the money in a specific way as per the Loan appraisal thus allowing the Sacco to walk with the borrower and appreciate the growth;

3. Secured loans are easier to qualify for and even borrowers with a poor or imperfect credit score may be eligible. In fact, this is a good way to rebuild credit by making timely payments; and

4. Finally, the borrower can repay the loan at any time and save on interest payments. How good is your collateral? What kind of Package Loan do you want?

COLLATERALHOW GOOD IS YOURS?

By Harriet Nyamboki

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Collateral is a security in the form of an asset or property offered against a loan. Financial institutions require collateral to secure loans, including

foreclosure, non-recourse loans, and repossession. If the

borrower stops making payments, the financial institution can take possession of the Property pledged.

The collateral can be equal to, less, or greater than the value of the loan. This depends on many factors, including credit score(appraisal), income, and how liquid the asset is. Applicants can pledge anything of value, including Land, vehicles, inventory, stocks and bonds, and equipment. Intangible and tangible properties are now accepted by financial institutions in line with the Movable Property Security Rights Act, No. 13 of 2017. Tangible properties include machinery and equipment, fixtures and annuities. While the Intangible properties include investment funding, chattel paper, and payment rights.

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Our state of the art contact center solution enables us end-to-end customer journey and

consistently deliver exceptional customer

experience.

YOUR PERSONAL

NOW A PHONE CALL AWAY

MEMBERS’ SERVICE

Have you ever been in a situation whereby you need an urgent service from your bank but your tight schedule cannot allow you to physically walk there? With the advancement of technology, financial institutions are continuously

embracing the digital consumer by allowing easy transactions from the customer’s preferred location. Gone are the days when the customer was required to visit a branch when they needed say a statement of their account.

Customer is king and it is for this reason that Unaitas has implemented powerful and highly flexible contact center software that enables us have personalized interaction with our customers and across multiple

channels. Designed on the latest and robust technology, our contact center solution is key in delivering profitability of our organization. This will be through improved staff productivity, enhance customer acquisition and retention, repeat sales and requisitioning as well as business process automation.

With over 300, 000 plus customers within Unaitas fold, picture the foot traffic that we would experience on a daily basis. With the contact center up and running, there has been decreased traffic especially for simple transactions and requests. This has been complemented by the fact that our mobile banking platform has been a form of a branch on its own.

Whenever customers have experienced a hitch in the mobile banking platform, and especially when they are far from a physical branch, the contact center has been handy to sort the emerging issues.

Customer expectations have also grown considerably and a Contact Center has become a need rather than a want if we are to deliver on our promise on exceptional customer experience. Communication over phone is the easiest and fastest way to provide good and effective customer service. It is much more convenient in urgent situations when customers need support right at the moment.

At the time the customer clicks to call, the ability to simply connect right there is all the

convenience they need. The connection is a magical moment already even before their needs are addressed. The experience during and after the call could nurture existing customers and go a long way to attract new ones. One bad customer service call will send most customers away permanently.

When the phone rings, it’s a sure bet of an opportunity to service or make sales. This has a direct impact to customer retention and the business revenue. The calls are a huge source of new members and sales, sadly underrated. The surge in mobile use is more than just digital interactions on a tiny screen, it’s a drive of calls to business. It is indisputable that customers call when they need assistance or want to make a purchase and thus cannot afford to be unavailable. With right staffing, the contact center is an important lead conversion tool.

A customer focused contact center will pay close attention to the customer’s needs, ensure the needs are always met and that customers remain satisfied. An effective contact center will win back lost customers through surveys on reasons for churn and find solutions that will entice the customers back to the brand. This is because the agents can gauge the customer pulse to understand what they want, need and expect.

The benefits of having a contact center are exhaustive. Unaitas prioritizes customer experience reason it embraced a contact center.

0709 253 000Call

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The message is in the details. Samuel Adams has shared several messages in that short statement but two stand out. That it is education and integrity - doing the right thing because it’s the right thing to do that will keep us free. It is financial intelligence

that will give us the resources to enjoy our freedom.

The history of Unaitas is a twenty five-year old story that started with a few coffee farmers in Muranga, who decided to take control of their financing difficulties

Back in 1775, a year before the U.S.A. was officially established, Samuel Adams wrote this master piece. “No people will tamely surrender their Liberties, nor can any be easily subdued, when knowledge is diffused, and Virtue is preserved. On the Contrary, when people are universally ignorant, and debauched in their Manners, they will sink under their own weight without the Aid of foreign Invaders.” - Samuel Adams (letter to James Warren, 4 November 1775).

THE PARADOX A “WISE” VERY YOUNG MAN

through a group effort. This was the genesis of what has transformed into a global financial movement that enables individuals to realize their dreams. They have been transforming lives through provision of financial solutions.

Let us start by looking back twenty years ago (1993), when about seven tea farmers put their minds together around the financing constraints. Like Samuel Adams put it , “No people will tamely surrender their Liberties, nor can any be easily subdued, when knowledge is diffused, and Virtue is preserved.”

The seven tea growers could have joined the list of people who give up when they reach the end of their thinking. Instead, they chose to preserve their knowledge and liberty through concentrating and sharing their thoughts on how to find a lasting source for borrowing at low lending rates.

They would then engage in real actions to create their own financial solutions by pooling funds together through regular savings to provide the pool for credit. A typical “Chama” as we know it today was the idea they generated and engaged with and which later gave rise to a Tea Farmers Savings and Credit Society.

Twenty-five years later, we have a movement working towards enabling every Kenyan with a business idea not to be constrained by lack of capital.

The reality of this twenty-five-year-old Unaitas today can be likened to a twenty-five-year-old young man living it real in the middle-class Nairobi. Unaitas has spent twenty-five years learning how to solve the problem the founding members experienced but this time at the national level.

The young man of today is exposed to global issues courtesy of internet thinking, open minded but inexperienced. He is not engaging with the real grit yet.

Like the twenty-five old young man, Unaitas is very agile, reaching for the edge of financial services, while turning many years of “fall and rise” wisdom into real financial solutions for the people of Kenya. On the other hand, the twenty-five-year-old young is equally dreaming big but acting on less usually for lack of capital.

Today, Unaitas is making it possible for this dreaming young man to turn his ideas into reality. The movement has been expanding its branch network one county after another and reaching the world through modern technology.

I look back to my young life when I had just graduated from college, and really wish I was twenty-five today.

Patrick Wameyo is a Business Advisory Consultant and strategy partner to the Sacco sector

By Patrick Wameyo

UNAITAS AT 25

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Unaitas has partnered with mSurvey, the leading consumer feedback company in Africa to boost its customer experience initiatives. The tech company is set to provide a customer feedback platform that leverages SMS and other mobile

messaging technologies to power direct conversations with customers in real time.

Unaitas envisage to leverage on this platform to enable it boost its businesses performance, inform strategies through real-time customer feedback, improve on customer experience and grow the Sacco’s revenues.Through the platform, customer conversations will be initiated through survey questions that will be pushed to their phones whenever they interact with the Sacco at various touch points.

The survey questions will come as chats to the mobile phones of a targeted, local audience or a random, diverse 300, 000 plus Unaitas customer population. mSurvey will then aggregate, assess and analyze responses in real time, enabling the Sacco to view trends and gain insights illustrated on a visualized data stream.

Through the partnership with mSurvey, Unaitas will also gain valuable consumer feedback and insights through tailor made solutions that give customers voice to air

ON DEMAND

FEEDBACK SOLUTIONS

Claire Munene - COO mSurvey

UNAITAS’

their satisfaction or dissatisfaction of the services they get from the Sacco. The feedback collected in real time will be analyzed to give a metric on the Net Promoters Score (NPS), a global customer satisfaction metric, to deliver invaluable insights and feedback from their entire customer base and empowering businesses to deliver rewarding customer experiences.

Through this solution, Unaitas will be able to understand market demand, find out when and where customers like to be engaged, understand customers buying experience,

discover if customer care is efficient and courteous, establish a communication channel to receive continuous customer feedback and identify if customers would recommend your brand.

“We are glad to have partnered with Unaitas, the largest Sacco in Kenya in terms of membership. The Sacco is committed to enhancing customer experience and customer loyalty among its over 300,000 plus members as part of its growth strategy,” said Ms. Claire Munene, Chief Commercial Officer at mSurvey.

“We are on track to becoming the most

trusted feedback engine in emerging markets,

connecting businesses to their customers from all

walks of life through their mobile phone”.

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The Sacco will be able to obtain customer feedback in real time, on all touch points across all the branches and departments. In addition, Unaitas will take advantage of the different solutions that mSurvey offers through adhoc and staff surveys, thus gaining a deeper understanding of their customers and different stakeholders.

Another solution is the audience on demand, which will enable Unaitas get real-time feedback from a random audience on any topic. Through secure, mobile survey conversations with its own audience or the mSurvey audience, an ever-growing group of over 35000 people who have opted-in to be part of our global information exchange, Unaitas will be able to understand consumer behavior better.

The other solution is the Consumer Wallet, which will give access to real-time data from a diverse set of consumers. This solution seeks to help the Sacco understand their customers’ spending habits by giving them access to live consumer insights. Thereby enhancing product development and tailoring of services that appeal to consumers, by answering questions such as what products did consumers buy? How did they pay for these products? Who is your real competition? How does this change over time and why?

Leveraging the growing reach of mobile phones, mSurvey is fundamentally changing how consumer feedback is obtained, creating new markets and opportunity. “The future of connection is conversational commerce and mSurvey is proud to be leading the way in emerging markets, capturing deep local knowledge and information in minutes, by sustaining an ongoing relationship built on trust and driven by consumer culture,” said Ms. Munene.

FEEDBACK SOLUTIONS

YOU AND ME


Sacco Members in SMECompetitive Returns

LPO Financing

Biashara Current Account

Transactional account for Unaitas SMEs. Unaitas SMEs defined as an enterprise with sales turnover of up to Ksh 100 Million per annum, with growth potential and visionary. The SME’s are categorized into micro, small, and medium (which extends to small corporates) each with specific parameters.

Free Account OpeningKES 500 : In-house Cheque BookKES 55 : In-house Cheque withdrawalKES 33 : ATM Cash WithdrawalEXTERNAL CHEQUE TRANSACTION FEE AT COMPETITIVE CHARGE

Business verification at cost- CR12KES 110 : Inter-branch withdrawal above the withdrawal fee (where branches are not inter linked)Dormant account reactivation as per the dormancy policy /chargePricing as per the tariffs schedule

Unaitas partners with tech firm mSurvey to give customers voice to air satisfaction or

dissatisfaction with the services they receive

from the Sacco


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In the pursuit of food security in our nation, just like manufacturing, many players will be thrown-into action, and their support will definitely be counted on. Central to this are financial institutions where Unaitas art. That is why, as has always been the case,

we are putting our best foot forward in support of the big 4 agenda.

According to FAO, food security is ‘when all people have physical, social and economic access to sufficient, safe and nutritious food that meets dietary needs and food preference for an active and healthy life at all times’.

The Kenyan government appreciate so well that food insecurity can easily throw a nation into a monumental social and economic strive. Just as an example, many will recall the famous ‘maize scandal’ that became not only a political hot potato, but ended up with many casualties and eventually as a campaign agenda in the subsequent elections to date. Such is the magnitude of issues food security! Other than the first ranking maize, other food

crops in Kenya include rice, wheat, beans, potatoes, traditional foods, fish and livestock. All these have numerous value chains that provide both input and output players with the quickest route to be the next millionaires. Agricultural value addition or agro-processing fits into manufacturing, the other major item in the ‘big 4 agenda’

The government further posits that food security will permanently alleviate the age-old poverty in our motherland. It further avers that capital injection into the agri-business sector, the commercially right name for food crops and cash crops farming for profit, accelerate economic growth and alleviate poverty more than any other capital injection in the economy.

And that is where Unaitas comes-in! Having been started and even partly owned by

farmers, Unaitas understand farmers far better than other players in that space and is better placed to offer comprehensive agri-business financing, from short, mid to long term.

In fact, some of Unaitas products such as Kilimo poa, Imarika farm development, Jivunie loan and farmers’ asset financing have been developed with farmers input, and have been cited by many successful farmers and Unaitas customers as part of their own transformation story. Such stories dots across Unaitas branch network and villages and is so satisfying.

The long and short of it is that from a strategic perspective, Unaitas has adjusted its strategy in line with the government agenda for our people. Long live Kenya, long live Unaitas.

As if to confirm what Unaitas has always diligently practiced,

the recent unveiling of the big 4 agenda by

the government, food security included, is timey,

effective and surest way to catapult Kenya to her promised land – the next

level of development

By Stanley Gitari

THE ROLE OF AGRI-BUSINESS FINANCING

ALLEVIATING POVERTY

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As time goes by, the marriage starts accommodating more members in the form of siblings, friends and relatives. These ‘strangers’ in the marriage come with all manner of forms, advices and experiences. All these are critical in shaping the

marriage and at some point attributed to the make or break of the same. This is considered so because of the fact that human nature will always allow for interactions amongst one another.

Chamas small or big too have this phenomenon mainly because of the same human nature where the formative stages are blissful, filled with optimism and promise. As chama members begin their journey to the Promised Land, members come to the meeting on time, commitment is high and the discussions are usually exciting.

A blissful marriage is the expectation of many

a couple long after the wedding and the

honeymoon is over. A newly married couple

will experience the kind of happiness displayed

in fairy tale movies and soap operas especially on the onset of the marriage.

This phenomenon is usually driven by

excitement amongst the couple that is mainly because of the deep-

rooted feelings they have for each other.

At this point, most chamas do not see anything else but prosperity. And like in a marriage everything seem all happy until that time when that relative or mother in law comes in between. But will this stranger be treated as a resource or liability? How the couple will survive this necessary intrusion is a story for another day.

Back to the chamas story, one of the most important and seriously sought for resource namely MONEY has been singled out to be the necessary ‘stranger’ that makes or breaks the group. To begin with, the idea of saving through contributions is well taken, contributions grow and the money agenda becomes a new center of attention for the Chama.

Depending on the overall strategy for the Chama, the investment plan in place or simply clarity of what the chama wants to do, when and at what cost, Money assumes a membership seat in the chama mostly causing havoc, confusion and disagreement to a point of breaking the chamas. When chamas are starting with no money, issues are ok until the money grows especially where no clear strategy to invest the money exists. It is at this point that things begin to get difficult.

There are vital lessons that Chamas should learn and prepare to manage this strange bedfellow who assumes ascribed status unnoticed; • Chamas should begin with the end in

mind, clarity of plans, ideas and direction is more critical than saving first then deciding what to do with the money.

• Chamas should ensure that they cultivate

a saving culture but not save for the sake or as an extra activity to the socialization element. It is important to differentiate saving for the sake vs saving for a purpose. This is the time when the chama should define a purpose of their existence. What is the end goal for this relationship? This is a very critical question when answered, will strengthen the first point of cultivating the savings culture. It will help the chamas decide how much to save and for how long.

• Chamas to work towards a common purpose since lack of such congruence will result in divisive disagreements where members present diverse interests and expectations.

• There has to be a clear strategy and plan for the money. This will take the form of a clear investment plan, risk management and investment diversification to ensure that what is saved is well utilized. The strategy helps to create a map and a route of achieving the purpose or goal. This helps in focusing and guiding the Chama towards prudent management of their resources, investment decision making and ensures chamas sustainability.

When all is said and done, it is critical that chamas should come together for a clear purpose. When chama members align with the common purpose, contributions flow easily. This in turn fits well into the envisaged plan and that way money will not become a troublesome member of the group but a key resource to be harnessed and used.

The Writer is a Chief Manager at Unaitas and expert in chama management

MONEY MATTERS

THE SILENT CHAMA MEMBER

Money assumes a membership seat in the chama mostly causing havoc, confusion and disagreements

By Nyaga Thagichu

YOU AND ME74

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The money it takes to get started does not necessarily have to be yours. Lack of cash capital is one of the most common challenges that would-be entrepreneurs face when attempting

to try to unbundle their dreams. Most people allow this obstacle to hold them back from ever embarking on the journey toward wealth.

Furthermore, there are many more people who tell themselves they must put their dreams on hold until they can afford it, only to discover that such a time never occurs. When that time does come, everyone else has already profited from similar ideas, meaning a once-revolutionary vision is now old news and might not compete.

Rarely does a temporary postponement turn out to be temporary. We live in a competitive world. Successful business people are those

who strike when the iron is still hot, regardless of their personal circumstances at the time. Thankfully, there are numerous options for financing the start-up of a new business. In today’s information age, it is easier than ever before to gain information on the details of these various options, as well as the array of methods for utilizing them.

Your Own MoneyThe first option for funding the upstart or any business is the most obvious: your own money. The hard-saved coins. This is the cheapest and most convenient method of financing because you are not obligated to pay interest or dividends at the end of the year. Just like there is cash out flow obligation to repay, there is no hoops to jump through, and no need to involve anyone else in managing your business. However, this option is not practical and not possible for most people.

LITTLE

MORE MONEYYou perhaps heard the phrase, “it takes money to make money.” In

most cases —though not in all—situations, this is very true. However, many people are unaware of one critical fact that sit

between moving forward and staying put.

People in Your Personal NetworkOne of the primary sources of funding for small-business entrepreneurs is from people within their own network. Unfortunately, many people do not realize how large their personal network is and how many opportunities it affords them. For this reason, it is advisable to make a list of the people with whom you interact or have interacted with in the past.

This list may include, but is not limited to, friends, general acquaintances, business associates, family members and family friends, healthcare professionals, legal professionals, accountants, realtors, clients, members of clubs and groups of which you are also a member, people who attend your place of worship, neighbors, and present or former teachers, professors, religious leaders, coworkers, business partners, and classmates. People judge you by your known character.

Over the years, many wise men and women have cautioned against merging the world of business with one’s personal life. It is certainly true that there are many pitfalls inherent in doing business with family and friends.

The Sacco optionBanks, Financial Institutions like Micro finance, and other lenders financing is one other option. The truth of the matter is that very few people qualify for unsecured loans. because of the nature of the risk being take by the lender and consequently the restrictive requirements to minimize exposure.

A Savings and Credit Society is a viable option for people with good savings discipline, and who are forward looking. It requires a strong vision and the humility to accept to grow stepwise. You join a Sacco by buying shares, and once admitted as a member, you can begin to make regular savings (Non-withdrawable savings) according to your capacity. These savings form part of your security when you borrow.

The portion of security is provided by your fellow saves by way of guarantee to the Sacco against your loan. In effect, you will be able to access more money than your savings (usually between three and four times your savings) without having to wait to make equivalent savings to your financing need.

While a Sacco may place a guideline for the minimum savings you place at any one time whether monthly, quarterly or in other rests; it is usually low and very considerate of the different levels of incomes of members.

Your success with a Sacco as a source of financing for business growth is dependent on your ability to keep growing your savings and repaying your loans promptly. This calls for foresight and discipline in managing your financial affairs so as to prioritize your business growth against normal life needs.Patrick Wameyo is a Business Advisory Consultant and strategy partner to the Sacco sector.

By Patrick Wameyo

SEEDING MONEY

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hey say customer is king. But institutions are struggling to walk this talk. The statement commonly used seems easy but yet very difficult especially when it comes to implementation. For many years, organizations have developed

strategies and policies that are geared towards realizing or rather fulfilling this statement. Changing customer expectations to deliver a memorable experience is slowly turning to be the in thing.

But what does it take to ensure the customer is finally crowned on the throne of happiness to the extent that he or she can be too wiling to refer services to friends and family? Customers be it in manufacturing, engineering, hospitals transport amongst other industries will only remain loyal to respective firms if their inner satisfaction is met.

Having this in mind, Unaitas shifted its focus on delivering a compelling reason to its customers by redefining the experience the Sacco wants to realize. It is for this reason that the corporate strategic goals were tailored to include a customer centric approach to ensure that customers not only remain loyal but also be in a position to refer us to friends and family.At Unaitas, the goal is to ensure that our members remain happy. By this we are sure of the revenue stream. According to Andrew Huber, program manager at Harland Clarke, increasing customer retention just 5 percent can show a 25-95 percent increase in profits. He attributes this growth to the fact that acquiring a

CONSUMER EXPERIENCE

By Claire Wambui

“Financial institutions must deliver outstanding

service at every touch point in the customer

experience, from in-branch to call center and

from online to mobile device”- Andrew Huber

new customer is anywhere from 5-25 times more expensive than keeping an existing one, with customers having a positive experience spending 140 times more than ones who have a bad experience.

Having come along way, 25 years of existence to be precise, Unaitas prides itself with a 300, 000 plus membership which constantly gives it an uphill task to satisfy their Looking at the customer is king in a more simple way, here are some of the deliverables Unaitas is promising our customers.

1. Relationship BuildingOur staffs are keen on creating a personal relationship with you. We want to be part of your financial journey. We will walk with you through your investments. This will enable us realize our mission of transforming lives. We want to see uplift your financial status. This relationship will be enhanced with constant conversations that we will always have through the various feedback mechanisms we have initiated. We would want to know your experiences where we are going wrong or doing it right.

2. EfficiencyWe have worked on our turn around time. Our well-defined service charter has bee displayed prominently to show you how fast we want to serve you. Time is money and so we value your time. Our processes have been reengineered to accommodate your busy lifestyle.

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EXCELLENCECultivating

CxInto

3. Our communication Channels are Real TimeWe have opened a chat section on our website. We want you to reach wherever you are from the comfort of your business premises, home, office etc. Just log on to www.unaitas.com and let’s chat. In addition, knowledgeable and professional agents who are keen to solve your issues on your fast call man our state of the art contact center.

4. Expert ExperienceWe have been around for 25 years, transformed many lives. Trust us to give you an expert opinion and professional advice. Unaitas is the home of chamas and that is why we are so passionate about your group’s transformation from a mere chama to an investment entity. We offer capacity building opportunities to chamas through national, regional and branch forums. It has been our tradition to hold member information days (MIDs).

5. Memorable ExperienceBecause we want you to recommend us to friends and family we are redefining our branches to conform to the branch of the future concept. This is a more friendly approach to our brick and motor touch points. Feel free to visit the branch team leaders and give us your feedback via.

With the above in mind our work with regards to customer satisfaction is well cut out as we usher in the era of customer experience.

“People tend to explore customer service as an afterthought. The problem with using it as an afterthought is you don’t have the ability to fix

problems before they become problems. If you rely on customer service as an afterthought, you have to fix the problems after they become problems.

If you fix problems before they become problems, you avoid them”-Peter Shankman

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But the joyous moment was just the beginning of their journey to real investment. Based in Kabati area of Muranga County, the group comprising of young dynamic men had applied to participate in the reality show. Armed with

architectural designs and site plans, the group whose core business was slaughtering pigs for sale, had a clear vision on what they wanted to achieve with the Kshs5Million top prize.

Fast-forward to 2018, the group now rebranded to Top Pork, a suggestion they took from one of the reality show judges, are singing a different tune. Top pork Co. limited is an investment group that comprises of 7 directors who are all businessmen undertaking joint venture. The seven are pork butchers and suppliers. They own pork butcheries in different towns namely; Thika, Kenol, Kabati, Murang’a and Kagio. Besides this, the seven supply pork to several other towns across the country.

The supply business spreads far and wide stretching to as far as Mombasa, Nakuru and Meru towns.

Majority of the directors are pig farmers. They also purchase pigs directly from other farmers. Upon

They first came to the limelight in 2015 when they emerged tops during the Unaitas Top Chama Show. Top Pork, then known as Kabati Pork had just won Kshs5 Million courtesy of a chama reality competition that lasted 13 weeks and aired on Citizen TV.

slaughtering, they supply raw pork to their various businesses while at the same time supplying other butchers. They sell raw pork from the slaughterhouse at a wholesale price of Kshs 250 per kilo. Selling at their butcheries gives them higher margins since raw and cooked pork retails at Kshs 500 per kilo.

They previously operated from the Kabati slaughterhouse located at the Old Murang’a-Kabati road and controlled close to 40 percent of the pork business at the slaughterhouse. This prompted them to set up their own slaughterhouse.

Since 2012, the chama managed to borrow an investment loan of Kshs 3.5 million, which was repaid in 2 years ahead of schedule as it was supposed to be paid in 4 years. The purpose of the loan was to purchase a 3.5 acres piece of land at Juja farm. The group has also diligently serviced a loan of Kshs8 million, which they were advanced in September 2015. The loan purpose was to purchase land for the purposes of resale.

The Chama currently has a minimum compulsory contribution of Kshs 8,000 per member per week. This translates to a total of Kshs224, 000 per month. They meet on a weekly basis at Splash restaurant in Kenol; a business owned by two of the directors. Besides the monthly contributions, the Chama is also in land selling business, which generates additional income for them. They have been channelling all their incomes through their account at Unaitas.

The Chama used part of the Kshs 5 million prize money to purchase the subject land. The land comprising of two adjacent plots cost them Kshs 1.7 million and Kshs 1.75 respectively amounting to Kshs 3.45 million. The project comprises of a modern slaughterhouse, a water treatment and recycling plant. It is situated along the old Kabati-Muranga road directly opposite the current Kabati slaughterhouse. The decision to have the slaughterhouse close to the existing one is for the need to have improved services from the ones being offered currently.

The slaughterhouse has been successfully completed and kicked off operations in January this year.

Top chama show winners establishes state of the art slaughterhouse

By Claire Gachui

CHAMA SHOW SUCCESS

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