NEWSLETTER OF THE 2NK SACCO SOCIETY LIMITED SEPTEMBER 2015

Improving Member Incomes

with Road Safety Campaigns

2 Transport World

Transport World 3

CHAIRMAN’S MESSAGE

MISSION STATEMENT: ―TO IM-

PROVE THE LIVELIHOOD OF OUR

MEMBERS BY PROVIDING EXCEL-

LENT SERVICES.‖

VISION STATEMENT: “TO BE THE

LEADING TRANSPORT AND FINANCIAL

SERVICES PROVIDER IN KENYA.”

Branch Network Will Enlarge Sacco Base

BY JAMES KAHIRO

O ne of the most im-

portant achievements

for our Sacco, as we celebrate

our accomplishments in the

past two years, is that 2NK

Sacco now has its own front

office savings activity, popu-

larly known as FOSA. The

FOSA opened up to the pub-

lic in February 2014. This

followed the licensing of the

Sacco by SASRA, the regula-

tor for deposit taking Saccos.

The licensing itself was a ma-

jor achievement for the Sac-

co, as we are the first

transport Sacco to be regis-

tered as such.

And members of the public

have also continued support-

ing the Sacco, a gesture that

the Sacco wholeheartedly ap-

preciates. We pledge to con-

tinue offering them excellent

services.

We are in deed, happy that

we are already offering a

wide range of products which

target all levels of the com-

munity, including develop-

ment loans and insurance pre-

mium financing among a host

of other products.

The Sacco, in its growth plan,

hopes to embrace branch net-

work, as entrenched in its 5

year strategic plan. This will

enable us to serve our cus-

tomers better, while also en-

larging our customer base.

God bless you all!

FOSA Products Asset finance

Fixed deposit account

School fees loan

Group accounts

Individual account

2NK little angels sav-

ings accounts

4 Transport World

cial vehicles doing night trav-

el as well as they also were a

contributor to these accidents.

CHIEF EXECUTIVE OFFICER’S MESSAGE

Transport World is published by Investment News

P. O. Box 20257 –00100, Nairobi, Tel: 0773 –991820

on behalf of 2NK Sacco Society Limited

EDITORIAL AND DESIGN: Nairobi Editing and Pub-

lishing Services.

‘ We Remain Preferred Choice’ It has been close to 2 years

since the last edition of our

magazine.

And it has not been an easy

walk. But we can truly say

God has been faithful this far.

What with all the new regu-

latory requirements, in April

2014, when all vehicles were

required to be fitted with

new, much more expensive

speed governor, amid the

confusion of just a few ac-

credited fitters and a scarce

supply. This caused a lot of

inconveniences to investors,

who were subjected to long

periods of waiting, losing a

lot of business as the vehicles

were not allowed on the road

in spite of having functioning,

previously fitted speed gover-

nors.

A ban on night travel did not

help the situation, with the

effects being felt again by the

investors. In as much as 2NK

Sacco is always at the fore-

front when it comes to com-

pliance matters, coupled with

our determination to reduce

road carnage, which was the

main reason why the govern-

ment banned night travel,

there was need to also address

the issue of heavy commer-

A ban on importation of low

capacity vehicles was also a

major drawback particularly

for the better part of the year

2014, but we thank the presi-

dent for having come to our

aid at the end of 2014, lifting

the ban on importation.

On a positive note, the Sacco

has continued making positive

strides in line with its vision,

“To be the leading transport

and financial services provid-

er in Kenya.”After the lifting

of the ban on importation of

the low capacity vehicles, the

Sacco has supported members

tremendously in acquiring the

new model of Matatus, popu-

larly known in the matatu

quarters as „choppers‟. This

has not only provided the cus-

tomers‟ preference but further

given the Sacco a competitive

edge while remaining relevant

in the transport business.

Anne Kinyua,

Chief Executive Officer

Transport World 5

O ver the years, 2NK

Sacco has striven to

improve business for its

members. Key in this ef-

fort has been measures to

reduce road accidents.

Road accidents are not

only a problem to the Sac-

co, they are a problem na-

tionwide. They eat into

the profits of transport

operators. And they kill

people—innocent people.

Statistics graphically

demonstrate the serious-

ness of the problem. Ac-

cording to the National

Transport and Safety Au-

thority (NTSA), every

year, about 3,000 people

die on Kenyan roads. Re-

gionally, Nairobi comes

first in that list; account-

ing for about 20% of the

total fatalities. By 2013,

accidents had reached an

alarming 3,318 deaths.

The larger fraction of the

fatalities is made up of

pedestrians. Passengers

follow closely, then motor-

ists. The lowest number

of deaths is that of driv-

ers.

Lead Story

Improving Member Incomes

with Road Safety Campaigns

By NGULI MULI

Board members in a

planning session. Proper

plans have ensured the t

sacco prospers

2nk sacco Managemeny Board

members

6 Transport World

The segment of the popu-

lation most affected by

these accidents is the 24-

44 year-olds bracket.

While at that age people

are more mobile, the

NTSA says they are also

more reckless. For exam-

ple, they are unwilling to

use foot bridges, leading to

many pedestrian deaths.

NTSA also notes that the

same age bracket won’t

pause their mobile phone

activities to either cross

roads carefully or drive

with full concentration.

It was also established

that more accidents occur

on Saturdays than on any

other day of the week.

Wednesdays are the saf-

est days to travel or use

With fleet control manage-

ment system, the vehicle

remains always visible

When you develop a customized fleet

vehicle management plan, the first step

is to benchmark your performance

against the standards in the industry.

Often comparing vehicle performance to

industry averages quickly reveals

which assets need immediate attention.

Once the benchmarking process is com-

plete, the creation of a strong fleet vehi-

cle management plan has two phases:

1. examining all current vehicles to

make sure their specifications are opti-

mal for the functions they are required

to perform and

2. thoroughly reviewing company pur-

chasing policies to achieve maximum

discounts.

To develop a fleet vehicle management

plan, you should do an in-depth analy-

sis of each vehicle. Analyzing fuel econ-

omy profiles is a

How to Develop Fleet Vehicle Management Plan

Turn to page 8

Transport World 7

road in any way, accord-

ing to statistics. This

finding points to drunk-

enness as being a major

cause of road accidents.

Further, most accidents

are recorded between

6pm and 10pm. Reduced

enforcement of traffic

rules in these hours could

contribute to these find-

ings.

These numbers, unfortu-

nately, have far reaching

effects on the individuals,

affected families, econo-

my and the investors in

the transport sector. One

fact is that the bulk of

road accident fatalities is

made up of young and

productive citizens; many

of whom are breadwin-

ners to their families and

highly productive citi-

zens.

The estimates of the eco-

nomic losses in annual

road accidents are at

about Shs45 billion, ex-

cluding the actual loss of

life.

The sad fact is that most

of these accidents result

from very easily preventa-

ble driver-centered caus-

es. The two leading

causes are drunk

driving and over

speeding among driv-

ers.

It is why 2NK Sacco

is in the forefront in

taking measures to

fight road carnage.

We take pride in the

fact that we have contrib-

uted to the restoration of

sanity that is now on our

roads. Through vigorous

campaigns, road users are

becoming more aware of

the dangers posed by

careless use of roads.

We, of course, are a part

of a group involved in

campaigns to reduce road

accidents. The Govern-

ment has collaborated

with the players in the

transport sector in these

road safety campaigns.

It is also necessary to

acknowledge other play-

ers that have stretched

their arms to educate the

Kenyan public on matters

relating to safety on the

roads. Matatu Owners

Association, East African

Breweries, Global Road

Safety Partnership, World

Health Organization,

John Hopkins Interna-

tional School of Public

8 Transport World

Health, World Bank Global Road Safety

Facility, Association of Safe Interna-

tional Road Travel and The World Re-

sources Institute are some of them.

In April this year, the campaign Save

1000 lives was launched jointly by the

NTSA and National Road Safety Trust.

The campaign listed its key goal as re-

ducing the number of road accidents on

our roads by a third in the next 24

months. It intends to mobilize the pri-

vate sector to effectively actualize and

manage its programs.

The result of all these activities has

been a decrease in road accidents—and

therefore, hopefully an increase in the

profitability of transport operators. Last

year, for example, 2,907 deaths on the

road were recorded; which was an im-

provement from those recorded in the

previous years. This year, the numbers

should be much lower, going by current

trends and predictions. It is estimated

that within the first seven months of

this year, about 1,085 people have died

in road accidents.

2NK Sacco has played a key role in this

effort to make Kenyan roads safe. Its

new regulations ensure employment of

drivers with good conduct. Towards this

end, it has intensified education of driv-

ers on road safety. And above all, we

have installed motoring gadgets that

have made our vehicles the safest on

the roads and reduced losses incurred

good basic performance indicator. Fuel,

especially in times of high gas prices, is

a primary cost component in fleet vehi-

cle management. With improved gas

mileage, every mile driven is money to

the bottom line: just good fleet vehicle

management.

Examining maintenance records and

forecasting maintenance needs is anoth-

er important element of good fleet vehi-

cle management. Scheduling and track-

ing maintenance costs can help identify

how your fleet vehicle management is

working for you. Looking at the strategy

(or lack of strategy) involved in cycling

your older vehicles can provide im-

portant insights. Cycling too soon or too

seldom can cost money in fleet vehicle

management terms, and more im-

portantly, can drag down your profit

picture.

The second phase of creating the fleet

vehicle management plan, examining

company purchasing policies, can yield

considerable savings. It is important to

understand the cost impact of acquiring

vehicles from a dealer versus acquiring

them direct from the factory. Fleet vehi-

cle management means managing each

vehicle as a component of your fleet, not

as an individual business purchase. Ad-

vance planning and acquiring vehicles

direct from the factory can mean sub-

stantial cost savings.

How to Develop Fleet Vehicle Management Plan

From page 6

Turn to page 10

Transport World 9

S ocial media is becom-

ing an integral part of

life online as social web-

sites and applications pro-

liferate.

According to new data by

global web index, an aver-

age user logs 1.72 hours

per day on social platforms

which represents about

28% of all online activity.

Kenya has one of the most

active online

populations with

users increasing

in numbers every

day. Majority of

the Kenyans

online use plat-

forms such as

facebook, twitter,

l i n k e d i n ,

whatsapp and

youtube.

Social media

therefore pre-

sents great

marketing

opportuni-

ties for

businesses

b e s i d e s

b u i l d i n g

s t r o n g e r

r e l a t i o n -

ships with customers

online.

To some entrepreneurs,

social media marketing is

the ―next big thing‖ a tem-

porary yet powerful fad

that must be taken ad-

vantage of while it’s still in

the spotlight. To others its

buzzword with no practical

advantage and a steep

complicated learning

curve.

Since it appeared quickly,

social media developed

reputation by some for be-

ing a passing marketing

interest and therefore un-

reliable.

The statistics however il-

lustrates a different pic-

ture. 92% of marketers

in 2014 claimed that so-

cial media marketing

was important for their

businesses with 80% in-

dicating their effort in-

creased traffic to their

website.

This demonstrates a

huge potential for social

media marketing to in-

crease sales. Some of the

ways social media mar-

keting can be used in-

clude:

MARKETING

WHY ADOPT SOCIAL

MEDIA MARKETING? By PETER MAINA

10 Transport World

To increase brand

recognition: This simul-

taneously makes brand

easier and more accessible

to new customers and

makes it more recogniza-

ble to existing customers.

A frequent twitter user

could hear about a compa-

ny for the first time only

after stumbling upon it in

a newsfeed or a customer

can become better ac-

quainted with the brand

after seeing its presence

on multiple networks.

To improve brand loy-

alty: Brands that engage

on social media channels

enjoys higher loyalty from

their customers due to

the advantages social me-

dia gives when it comes to

connecting and interacting

with their audience.

To convert more cus-

tomers: Every post you

make on social media plat-

form is an opportunity for

customers to convert.

When you build a follow-

ing, you will simultaneous-

ly have access to new and

old customers and you will

be able to interact with all

of them.

Every post or comment you

share is a chance for some-

one to react and every re-

action could lead to a site

visit and eventually a con-

version.

Richer customer experi-

ences: Take an example

where a customer com-

plains about your product

on face book or twitter; you

can immediately address

the comment, apologize

publicly and take action to

make it right, or if a cus-

tomer compliments you,

you can thank them and

recommend additional

product. It’s a personal ex-

perience that lets custom-

ers know you care about

them.

Social media marketing

therefore is a decisive tool

for business success now

and in the future. It’s not

only a tool to try and in-

crease direct conversions

but also a way for a busi-

ness to become a part of

specific community that

their customers participate

in.

The relationships made

through social media can

create reliable customers

and business relations that

make for long term brand

advocates.

„92% of marketers

in 2014 claimed

that social media

marketing was

important for

their businesses‟

through bad road usage

and driver misconduct.

2NK Sacco has embraced

modern technology to

help not only reduce road

accidents but also to man-

age its fleet.

The technology provided

by Frotcom Limited ena-

bles 2NK Sacco to moni-

tor the behavior of drivers

and other road users on

the road.

That way, we can know

and demonstrate who

was at fault in the un-

likely case of an accident.

Combined with internet

access, 2NK members as

investors can literally

watch over the movement

of their vehicles as well

as communicate with the

driver for fresh instruc-

tions and updates.

Fleet Vehicle Management From Page 8

Transport World 11

Not everyone needs a life

insurance cover. But if

your children, partner or

other relatives depend on

your income for living ex-

penses, then the answer

to the question: Do you

need life insurance? is a

YES. You probably want a

life insurance cover since

it will help provide for

your family in the event

of your death.

The following questions

will help you make such a

decision:

1. What is life insur-

ance?

This is insurance that

pays out a sum of money

either on the death of the

insured or after a set peri-

od

How does it work?

Questions that help you answer the question:

DO YOU NEED

LIFE INSURANCE?

Life insurance works the

same way your car insur-

ance works-when you

take out a life insurance

policy, you pay a monthly

premium to your insurer

and if something goes

wrong, your life insur-

ance provider helps you

cover the financial side

Life insurance cover

helps you maintain your

life style if you become ill,

suffer a serious injury or

become permanently dis-

abled.

There are two types of

life insurance

(a) Term life insurance-

this policy runs for a

fixed period of time. This

kind of policy pays out if

you die during the policy.

There is no lump sum

payable at the end of the

policy term.

(b) Whole-of-life policy-

this policy will pay out no

matter when you die, as

long as you keep up with

your premium

2. Do you need it?

If you have children or a

partner who relies on

your income, or even a

family that lives in a

house with you pay-a life

insurance policy can pro-

vide for them even when

INSURANCE

By PURITY WACHIRA

12 Transport World

you die.

You might also need a life

insurance cover that will

provide for your funeral

expenses.

You can’t rely on the gov-

ernment to take care of

your family.

If you want to provide for

your family even when

you die, then life insur-

ance is a MUST.

3. How much does it

cost?

Often just a few shillings

a day is all you need to

provide for your loved

ones with plenty of finan-

cial protection-depending

on your age and health

status.

Monthly payment that is

premiums do vary, so it’s

a good idea to shop

around, check exactly

what is covered for the

level of monthly pay-

ments.

The price you pay for a

life insurance policy de-

pends on a number of

things. These includes:

the amount of money you

want to cover, the length

of the policy, your age,

the condition of your

health and lifestyle.

For example, the younger

you are, the less likely

you are to die from a

medical condition, the

cheaper your policy is

likely to be.

4. Have already got it?

If you have an employee

package that includes

benefits related to life in-

surance cover, this will

cover you for a multiple of

your salary and you may

not need an additional

life insurance cover.

It’s up to you to work out,

whether this policy covers

all your needs, if it

doesn’t then you need an

additional life insurance

policy.

Bear in mind, when you

stop working for your em-

ployer, you won’t be cov-

ered under that policy

anymore.

*No matter what future

holds, rest assured that

life insurance will give

you a peace of mind

… the beautiful

girl who was ad-

mired by four

men. A singer, A

hunter, A doctor

and a fisherman.

One day she went

to wash her clothes by the

river.

Coincidentally the four men

were there. All of a sudden a

crocodile bit her and dragged

her into the water.

The singer immediately com-

posed a beautiful song; the

crocodile raised his head

above the water to lis-

ten…The hunter shot dead

the crocodile and the girl

floated on the water.

The fisherman dived in and

brought her to the shore,

then the doctor treated her

and she was well again.

Now who deserved to marry

the girl among the four???

COSTLY MISTAKES . A baker was asked to print

1st John 4.18 on a wedding

cake and he forgot the “1st

“and printed John 4.18.

1st John 4.18 reads “There

is no fear in love. But per-

fect love cast out fear be-

cause fear causes torment.

He that fears is not made

perfect in love.”

John 4.18 reads “For you

have had five husbands;

and he whom you now have

is not your husband.”

Stay blessed and remember

that small mistakes are not

always that small.

- By George, Audit Dept

Ah! Ah! Have you heard of ...

Transport World 13

CROP

INSURANCE: A Risk Mitiga-

tion Tool

Crop insurance is a vital part

of the world’s agricultural in-

dustry and a key risk manage-

ment tool for the modern

farmer. Despite their best ef-

forts, farmers will often suffer

because of drought or even

excessive rainfall or hail and

frost in some parts especially

during harvesting. We cannot

control weather patterns and

therefore extreme weather con-

ditions can hit a crop at any

stage of development. A

farmer can only be at peace

when the whole crop is har-

vested and safely in the store.

Till then the farmer isn’t sure

of the harvest. It is due to such

uncertainties that farmers

take insurance as a risk miti-

gation tool. Insurance gives a

farmer some peace of mind

that if extreme weathers pre-

vails then he/she will be able to

come back next season.

Insured Events

The insurance offered is main-

ly a multi-peril cover. The crop

is covered for Yield Losses,

arising out of any or a combi-

nation of the following weather

perils:

1. Excess Rains

2. Drought

3. Hail Damage

4. Frost Damage

5 Fire

6. Uncontrollable pests and

diseases

To get insured

To get covered, a farmer will

need to provide the insurance

company with historical yield

data, say for the 5- 10 years.

This will establish the long-

term average over the years.

For example, most large-scale

farmers in Moiben have pro-

duced on average 15bags/acre

of wheat. Insurance will cover

up to 65% of this average. This

is referred to as the Yield

Guarantee. Thus, if a farmer

chooses a 65% Yield Guaran-

tee, he will be covered up to 10

bags/acre. The price per bag is

pre-agreed at the point of in-

surance and will not be altered

at the point of harvest. This

price should not be specula-

tive.

Crop insurance is taken early

enough to avoid the farmer or

the insurer reading the season.

Farmer should factor insur-

ance as a cost of production

and budget for it early. More

and more farmers are insuring

their crops and especially so,

for the large farmers.

Crop Insurance and Credit

Access:

One way of protecting agricul-

tural credit is through crop

insurance. Banks will normally

recover agricultural loans from

farmers by asset recoveries

(tractors, combines). Surely, a

humane way of recovering the-

se loans would be through crop

insurance. The insurance com-

pany pays the bank directly

after a bad season. The farmer

maintains his creditworthiness

and is able to access finances

for the next season. Crop in-

surance makes farming a less

risky venture and therefore

attractive.

For more information on crop

insurance, reach us on:

agriculture@cic.co.ke and

0723531540/ 0703099156

*Article by Fredrick Kinoti,

Agricultural Underwriter, CIC

General Insurance Ltd

Barley crop affected by

drought

14 Transport World

el? There are adjust-

ing screws above the

light housing under

the hood. best to pull

up to a wall and see if

your light are tilted

up higher than nor-

mal. Also if you are

running your A/C or

heater at full the pow-

er drain through the

alternator could cause

the lights to dim.

Check covers

Are the covers filled

with water? Are they

dirty or tinted? Check

with a mechanic who

can see it in person.

Torch it!

Take a torch and

shine it into the re-

flectors at nighttime-

if they are not abso-

lutely clear, they

might need replacing.

may also have conden-

sation in the head-

lamp housing.

Adjust the lights

Did you check to make

sure the lights are lev-

Qs and Answers A column that answers common questions from motorists

Why Are My Headlights Dim on My Car? Why might the headlights be dim

on my vehicle? We've checked the bulbs, the switches and the battery

is fine.

ANSWERS:

Check the lens.

There might be dirt

on the inside of it.

If it's the alternator

your battery would

not be charging. In my

case the battery would

not charge and the

lights would dim. We

checked a wire coming

from the car's comput-

er to the alternator

and found the voltage

was under 12 volts.

Check the fuse

It could be fuse-

related. Have you

looked into the fuses?

Have you checked the

headlight's plastic?

The front plastic ages

and can dim the light

from the bulbs. You

Know your Board Members

James Kahiro, Chairman

Ephraim Karimi

Vice Chairman

Paul Ichura,

Treasurer

Allan Gakage, Board-

Member

Samuel Ruiru, Board

Member

Jimna Obed, Board-

Member

John Maregwa, Board

Member

William Kanyi, Board-

Member

Supervisory Committee

Peterson Kigotho,

Board Member

Robert Matheri,

Chaimana

Elizabeth Kariuki,

Secretary

Richard Kimondo,

Member