Egerton Sacco Supp.pdf

8/14/2019 Egerton Sacco Supp.pdf

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Together We Prosper

Egerton University SACCOSociety Limited

ADVERTISERS ANNOUNCEMENT / PThursday, October 10, 2013 / The Standard

Official Opening of Egerton University SACCO Plaza

Finally the time has comeand I am pleased to witnessthe opening of the Egerton

University SACCO banking plazaafter many years of self-denial bymembers who ensured funds weremade available to complete theproject. It is important to note that

today does not just mark thecompletion of the banking plaza butalso a complete fulfillment of therequirement by the SASRA havingbeen awarded a certificate ofoperation as a deposit taking Saccoin May 2012.

I wish to encourage the members

of the public to join EU SACCO andenjoy a wide range of products andother services. The Sacco enjoyshigh caliber of professional (man-agement staff) and high technicalcapacity that have made the Saccooffer a wide range of services, loansand also dividend and interests

ranging between 13 to 14 percent.In conclusion, I wish to congrat-

ulate the general membershipelected leaders, staff and variousstake holders for team work,persistence and commitment thatfinally made the completion of theproject possible.

MESSAGE FROM CHAIRMAN

SUPERVISORY BOARD

MESSAGE FROM CO-OPERATIV

ENTERPRISES

SIMIYU MATETESUPERVISORY BOARD CHAIRMAN

Egerton University SACCOLtd complex building is anew venture that shows the

Saccos move in the right direction.It reflects the Saccos exemplaryperformance for the past 38 yearsand a guide towards success as well

Egerton University SACCOLtd has been on a rapidgrowth despite the initial lo-

cation at Egerton Universitycompound which was not a strategicposition. With the new complex, thegrowth of membership has sur-

Egerton University SACCO Ltd isproud to ofcially commission thenew Sacco Building ofce situated inNjoro, near Egerton University. Thenew complex is among the greateststeps that Egerton University Saccohas over the years successfullyachieved. It is a new venture that

shows the Saccos commitment to itsmission and objectives and as well asa move in the right direction.

The complex provides astandardized banking hall as requiredby the Sacco Societies RegulatoryAuthority (SARSA). The two storeybuilding complex has a provisionalspace for a cafeteria and smallbusinesses in the rst oor and asupermarket at the basement and therest houses Sacco bank and ofces.The complex cost about 110 Millionand is situated 4km from Njorotrading centre.

The complex also targets overKshs 300,000 per month from thebusiness premises to be leased forother businesses within the complex.About half of the building, measuring10,000 square feet, will be leased out

and its revenue used to pay variousmonthly bills.

Egerton University Sacco Ltd wasformed and registered in March 1975under the operative Act Cap 490. Itsinitial membership was 40 but currentlystands at 4500 with an Asset base ofover Kshs 1.3 Billion. It was rst

licenced by SASRA on June 2012 tocarry out deposit taking business tooperate business in Kenya. With theoperation of Front Ofce ServicesActivity (FOSA), Egerton UniversitySACCO Ltd has taken its rightfulposition in the community byintroducing MICRO-LENDINGactivity and strategically positioningitself to guide the community in dealingwith poverty to help them prosper.

Since its inception EgertonUniversity SACCO has experiencedgrowth in its membership, sharecapital, members and advances. Theshare capital by the year 2012 wasKshs 7.4 Million with over Kshs723million members deposits and aloan portfolio of Kshs 955 Million. Thefavourable business environment thatEgerton SACCO is operating in has

MESSAGE FROM THE CHAIRMANas attainment of the vision of theSACCO. The success of EgertonSACCO is not only a result of the laiddown policies and strategies but thesanity brought by Sacco societiesRegulatory Authority (SASRA). SASRArequirements and set standards thatgovern the cooperative Sacco havebeen a big impact in ensuringeffective management and firmnessof the Sacco.

The new complex building will ina great way, make Egerton UniversitySACCO prosper and fulfil its vision ofbeing a leading SACCO locally andglobally as well as its corporate socialresponsibility. This is a soundinvestment that opens EgertonUniversity SACCO to the outside

world, with a strength and stabilitythrough straight forward strategies.The new complex will improve ourservices and ensure compliance setstandards. Our staff will have apromising environment to carry outtheir responsibilities with ease andefficiency to ensure that all our

members are provided with requiredservices.

As resolved in the last AnnualGeneral Meeting-2013, membersapproved the increase of sharecapital from a minimum of 2,000 to10,000. Members are encouraged toupdate their share capital accountsto enjoy full status and benefits ofbeing a Sacco member. The newshare capital is also a requirement bySASRA standards and it not onlyshows the seriousness of a Sacco butmakes the Sacco attain a firmground. Besides it will enable theSacco to do many things and standfirm withstanding unpredictablefinancial uncertainties.

As we move closer to the Kenyas

Vision 2030, Egerton UniversitySACCO committed to attaining it byempowering people around us.Together with the governmentchannelling the youth and otherenterprise funds through the Sacco isan effective way of ensuring efficientflow of finances to the target citizens.

MESSAGE FR

THE CEO

passed the initial strategic2015 after membership inc150% therefore a need for the strategic plans.

To meet the ratios requSASRA, increase of share cfrom2000 to 10000 will enaEgerton University Sacco tshare capital from over 8.2over 30 Million to meet themum requirement. The newill also assist to improve and future expansions.

The Sacco is now focusincreasing the marketing tadding members that will

Sacco gets outside recognibecome the strongest univSACCO. Egerton Universityhas seen its success througsupportfrom various partnas Co-operative bank, CICance, KUSSCO and CompuCastles.

Society now has a one-stop shop facility for members

AGGREY TSHOMBESEU SACCO BOARD CHAIRMAN

Cooperatives are based onthe values of self-help,self-responsibility,

democracy, equality, equity, andsolidarity.

Good performance of co-opera-tive enterprises strengthen capacityto access markets, create jobs,generate income, reduce poverty,provide social protection and givetheir members a voice andrepresentation in society just likeEgerton University SACCO hasdone.

Co-operatives provide etion and training for their melected representatives, maand employees so they cancontribute effectively to thedevelopment of their coopeThey inform the general puparticularly young people aion leaders - about the natubenefits of co-operation.

I therefore congratulateEgerton University Sacco fogreat achievement of buildmagnificent building.

VICTOR RUTTOEU SACCO CEO

Board Members

George MarangaVice Chairman

Kepha OrinaHon. Secretary

Tims KerryMember/ Kisii

Univ. Rep

SamuelMember /

Univ.

Joyce OndiekiMember

Chester AlivitsaMember

Augustine NdendaSupervisory Board

Secretary

AbrahamSuperv

Board M

XavieNjoro Sub-County Co-operativ

Prof. Anthony KibeMember

Joseph MwangiTreasurer

ON 11THOCTOBER 2013


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Page 26 / ADVERTISERS ANNOUNCEMENT Thursday, October 10, 2013 / T

enabled it to maintain favourableinterest rates of between 12% and16% for its various loan products.Most members have taken advantageof this opportunity to take Sacco

loans which resulted in an increasedoverall credit uptake in the society,while others who were lured intotaking other nancial institutionsloans are bearing the pain ofservicing loans with high interestrates of up to25%.

Egerton University SACCO, as aresult, has continued to registergrowth performance in most of itsareas of operations and by September2013, total loans issued stood at 64Million up from 54.6 Million byMay2013. The turnover performancefor the previous year was 215.9Million up from 187.7 in 2011whereas the turnover performance in2010 and2009 was 128.6 Million and99.5 Million respectively. Whereasthe dividend rate is 14%, interest ondeposit rate is 13%. Otherinvestments are currently at 34.6

Million. Members are encouraged toincrease their shareholding in theSacco to reap more dividends for2013 from the 14% rate.

OUR SAVINGS PRODUCTS

Share Capital Account-In orderto become a member of EgertonUniversity SACCO each membermust purchase a minimum of 100obligatory shares of Kshs 100 eachworth ksh.10,000 for both category Aand B. The deposit is of a minimumamount and is non-refundable. Therate of Dividends on these shares ishigher than the returns paid on othersavings accounts. The dividendearned on these accounts will beprior to the payment of regularsavings. Shares shall not berefundable or assignable as collateralfor a loan, but a member may

transfer his shares to other memberson leaving membership of the

Society.Non-withdrawable deposits

accounts-This is the primary savingsavings account offered to themembership. This account attracts

competitive interest payment (13 %for 2012). Higher interest will be paidon accounts with larger balances. Thefunds in this account may be used tosecure loans. A member may berefunded the amount saved in his non-withdrawal deposit account within 60days after giving a writtennotication.

Salary/Regular savingsAccount-Salary/savings help yousettle nancial obligationsconveniently. Members also channelsalaries through these accounts.Features include opening of Kshs500,minimum account operatingbalance of Kshs 1000 only,SACCOLINK ATM card, freedeposits to account, salary processing, act as the receiving account for loandisbursement, earn interest onsavings, no account maintenance fees,

minimal cash withdrawal fees,bankers cheques, cheque clearanceand standing orders.

Micro lending/BusinessAccounts and Welfare/Group

Accounts-These accounts giveBusiness people (Class B)opportunity to transact nancialobligations while they give businessesattention. Any Group, Welfare,

association, club, or similarorganization is eligible to open Group

account and benet through savingsand acquiring credit. Features includea minimum account operating balanceof Kshs 500 only.

Fixed Term Deposit (MediGold)Account-The deposits in this account

are for a stated amount, until a statedmaturity, for a stated interest rate. Thelonger the maturity period of thedeposit the higher the interest return.The SACCO offers 3 months, 6

months and1year maturities. Thesefunds may be used to secure a loan.The loan maturity shall match thedeposit maturity. The Interest and rateis xed until maturity will be paid

upon for all the deposits.Dividends Capitalization-

Dividend capitalization is the processof retaining dividends earnings inorder to boost your Sacco share ordeposits. It involves reinvesting partor whole of your dividends/interest toSacco share capital or deposits for

higher returns in thefuture.

Jenga Juniour Account-Thisaccount is designated to provide asavings facility for parents/Guardiansto save for their children who havenot attained the age of 18 years. Theaccounts will cultivate andencourage the culture of the savingand nancial awareness in your child.It will also help you to plan for yourchilds future nancial needs. Theaccount will be in the name of thechild but the parent is the soleoperator of the account.

OUR CREDICT PRODUCTS

Normal Loan- Maximum period of 48months, interest rate of 1.25% permonth, reducing balance andmaximum amount deposits multiplied

by 3.E-Loans (Emergency Education)-

maximum period of 12 moninterest rate of 1.25% reducbalance and maximum amodeposits multiplied by 3.Instant /Overdraft- maxim

periods of 10 months, intereof 4% per month reducing band maximum amount of dmultiplied by 4.Product loan-Maximum p20 moths, interest rate of 1025% straight line based on pand maximum amount depomultiplied by 4.Business/Welfare loans-maximum period of 12 monmonths, 15% straight line amaximum amount depositsmultiplied by 3.

SHARED SUCCESS

EMMAH SCHOOL

Major (Rtd) Martin Wanand Mrs Mary Wangare Waalso retired major, proprieto

Emmah School shares the sof Emmah School attributedloans from Egerton UniversSACCO. As the ProprietorsEmma school, we approachEgerton SACCO for a loan complete various projects thbeen difcult for us some tiEgerton SACCO processedwithin 3 weeks and we wercomplete the school projecta month.

Emmah school, with apopulation of 300 pupils, nthe facilities including ablublocks. As technology becohousehold in primary educaare in a process of seeking loans from Egerton SACCO0.5Million to nance the sccomputer lab facility, and omodern facilities that come

digital world.The government looks fto issuing laptops to every ppublic schools using tax pamoney which is also contribthe private school owners awant to provide the same sethe learners in our school.

Egerton University SACloans exibility with friendis what has kept our projectand our school growing. Wethat the 15% interest rate a14% dividends and 13% ratprots is much better than brates. Absence loan insuran10% hidden charges which common with banks is fair and medium enterprise andbusinesses.

EGERTON UNIVERSITY TRAN

WELFARE

Egerton University TranWelfare Buses is a celebratesuccess by Egerton Universin Transport department. Thtransport welfare venture stwith an initial membership Members thought it wise tothe transport availability fostudents and staff travellingNakuru Town and the Univand also for Egerton UniveStudents trips.

Being members of the EUniversity SACCO, the weapproached the SACCO forof 3.8 Million to purchase aseater bus. From the membsavings of 730,000, the welable to access more funds t

The accounts will cultivate andencourage the culture of saving andfinancial awareness in your child

>>EgertonUniversity

SACCO loansflexibility

with friendlyrates is what

has keptour projects

going andour schoolgrowing.

Egerton University Transport Welfare Bus

Beautifully serene situated within the Egerton

University, Njoro Campus with expansive grounds, the ARC

Hotel is an ideal venue for Seminars, Team Building Activi-

ties, and Weekend Retreats.

For sumptuous meals, healthy work-outs at our Gym and

Swimming Pool will crown your stay with us.

We congratulate Egerton University SACCOfor their offi cial Launch of New Plaza

ARC Hotel, Egerton

For Reservations:

Tel: 020 2588772

Email: [email protected]


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ADVERTISERS ANNOUNCEMENT / PThursday, October 10, 2013 / The Standard

the procurement of the rst bus andwith the increasing demand; thewelfare approached the Sacco formore funds which they used topurchase a second bus within aperiod of 1 year.

The welfare now looks topurchase a third bus while repayingabout 8.6Million for the rst twobuses. Welfare transport Busesoffers a subsidized cost of transportcompared to Public ServiceTransport vehicles (Matatus) in the

same root charging only a fare ofKshs 50 between the Nakuru townand the University. The buses arealso hired to local community fortransport services as well asstudents and staff. It is an effort thathas been appreciated by EgertonUniversity management due to itswide outreach.

NJOKERIO EGERTON GATE SELF HELP

GROUP

Njokerio Egerton Self HelpGroup is happy with EgertonUniversity SACCO loans for its

growth and success. Each individualmember from the 22 member

Njokerio Self-Help Group Members outside the groups building in NjokerioVillage near Egerton University

association currently enjoys a sharecapital of Kshs 60,000 withprojections to raise them to Kshs200,000 by the year 2015.NjokerioSelf Help Group started in 2011 with amembership of 7 and a total savings of

Kshs 20,000 only in its SACCOaccount.

The group approached EgertonSACCO loan ofcers for advice onhow to make a prot from theirsavings which had risen to 300,000 bylast year. They were given a Kshs 1.5

Million loan to purchase a parcel ofLand (100m by 50m) near EgertonUniversity in December 2012 at a costof Kshs 500,000 and constructbuilding with several rental roomswhich currently providesaccommodation to the increasingEgerton University students.

The hostel currently fetches overKshs 70,000 per semester and thegroup looks forward to investing inreal estates by utilizing its membershipand low interest loans from EgertonUniversity SACCO. The groupsstrategic plans ending 2015 is to raiseKshs 4 Million to expand the hostels

targeted at the increasing number ofUniversity students.

Who we areEgerton University SACCO

Ltd was formed and registered on

10th March, 1975 under the Co-operative Act Cap 490. RegistrationNo. CS/2314, with an initialmembership of 40.

Egerton SACCO was firstlicensed on 15/06/2012 by the SaccoSocieties Regulatory Authority,(SASRA) to carry out deposit takingbusiness in Kenya. We have alreadyrenewed our license to operatebusiness for the year 2013.

The SACCO draws itsmembership from diverseinstitutions namely Egerton,Kisii, Laikipia, Kabarak, MasindeMuliro, Narok, Chuka, Kabianga,Karatina, Pwani and Mount Kenyauniversit ies, RVIST, Nakuru County,

AMU press limited, Individualbusiness people, Welfares andgroups, several primary andsecondary schools and members ofthe community.

MANAGEMENT AND GOVERNANCEThe SACCO affairs are governed

by the Co-operatives SocietiesAct, the SACCO Act, its by-laws,policies and procedures. We have 9board members and 3 supervisorymembers.

The SACCO has 32 staffmembers lead by the CEOand a management team of 6management staff who are alsohead of departments.

The Board of Directors areresponsible for policy decisions

while the Supervisory Committee(SC) ensures provisions of thegoverning Acts, Society by-laws,policies and procedures areadhered to. The board of directorshas in place 4 (Four) major sub-committees namely:-

The Finance & InvestmentCommittee: Which works closely

with the Chief Executive Officer to

offer policy direction in the day today affairs of the society;

The HR & Administration

Committee: which is responsiblefor governing and directing HR& Administration fuction of thesociety;

The Business, Strategy &Technology:Which is responsiblefor ensuring that all membersare kept up to date on relevantissues, products and services, andeducated on their roles within theSociety;

Audit & Risk ManagementCommittee:Review the financialposition of the Sacco, the adequacyand effectiveness of its riskmanagement and internal controlsystems.

The board of directors hasappointed a Chief ExecutiveOfficer who is responsible for theday to day running of the Society.To operationalise its functionsthe Society has establishedseveral departments which

include; the Administrationdepartment, Finance department,Credit department, Marketingdepartment, ICT department andInternal Audit department.

FUTURE PLANS AND STRATEGIESA. Growth in membersTo Increase membership to 10,000 by 2014

Open common bond Strengthen members recruitment Increase members retention

B. Product development and mar-keting

To increase patronage of SACCO prod-ucts and services

Diversify SACCO productsand services

Enhance awareness of SACCOproducts and services to ex-isting and

potential members Strengthen marketing opera-

tions Financial sustainability

C. To increase institutiotal to above 10% of thesets by 2014

Ensure maximum the SACCO

Enhance loan reco Increase the availa

for lending / InvesD. Operational efficiencyTo reduce and maintain opcosts to below 3% total 2014

Enhance proper us Implement cost r

measures Review business p

E. To increase memberspation Enhance members Increase member a

F. Governance in SACCOtions of AGMs To enhance corpora

nance Adherence to code

and best practices Staff empowermen

G. HR managementTo attract, develop and retaly skilled, motivated and dihuman resource

Enhance staff mot Strengthen staff sk Enhance staff welf

H. Performance manageTo enhance performance ment in the SACCO. Impperformance managemen(performance contract).

We highly appreciate teration and support fromstakeholders who made thment possible, namely CoKUSCCO, CIC InsuranceHotel-Nakuru, Egerton UARS Hotel and Imarish

among others.

SACCO registers tremendous growth


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Society performanceThe society has realized

tremendous growth over the years.The favorable businessenvironment in which EgertonSacco is operating in has enabled us

to maintain favorable interest ratesfor our various loan products.

Most members have takenadvantage of this opportunity totake Sacco loans which resulted inan increased overall credit uptake in

2012 2011 2010 2009MEMBERSHIP 3234 3130 2654 2648SHARE CAPITAL 7,386,753.25 6,959,113.03 6,108,155.35 5,296,000.00MEMBERS DEPOSITS 723,625,865.48 652,901,815.86 564,393,800.15 497,695,829.60LOAN PORTFOLIO 955,224,481.43 905,077,667.10 625,509,502.75 535,713,159.60

the society. As a result the society hascontinued to register growthperformance in most of its areas ofoperations.

Share capital reviewAs resolved in the last AGM-2013,

members approved change of valueper share from Kshs. 20.00 to Kshs100.00 per share and increased theminimum share capital from Kshs.

2,000.00 to Kshs. 10,000.00.This simply means that for you to

become a full member of EgertonSacco, you need to subscribe at least100 shares worth Kshs. 100.00 each,totaling to Kshs. 10,000.00 worth ofshares. Members have been given atimeline of at most 20 months toupgrade their share holding to be inline with the amendments.

The dividend earned on sharecapital will be paid prior to thepayment of regular Deposits or

special purpose savings. The rate paidwill be s lightly highe r than the regularDeposits rate paid. This is theincentive given to the membersbecause these funds are non-refundable and are the principal

investment for members.Members who resign from the

Sacco can retain share capital as aninvestment and continue earningdividends on them for a life time orsell them to existing members.

Welfare servicesAll Sacco l oans apart from the

Business loans are fully insuredagainst death and permanentdisability. The insurance premiumsare paid for by the Sacco andmembers are exempted from payingthat fee. Upon death or permanentdisability of a member all his/her

outstanding loan balances will bepaid by the insurance company.

Also upon dea th of a mem ber, theSACCO pays a last respectcontribution of Kshs. 20,000 to his/her next of kin for burialarrangements. Finally after clearanceof the outstanding loans, themembers next of kin is refunded thedeceased member entire Sharedeposit contributions.

Members are thereforeencouraged to frequently confirm

and update their Nominees with theSacco. In case of more than onenominee, indicate percentageallocation to each nominee. Forpolygamous marriages kindly ensurethat all the dependents are catered

for to avoid a tussle when you aregone.

Sacco AssuranceEgerton Sacco has extended its

partnership with CIC InsuranceGroup with an intention of adding

value to our members by offeringaffordable and need based insuranceproducts. Under this concept EgertonSacco is an agent of insuranceproducts to Sacco members atsubsidized premiums as compared tothe market rates.

The Sacco is also developing aninsurance premium financingproduct to cater for those members

who cannot af ford to pay prem iumsat once. The product will enable youpay your premiums in installmentsand with ease.

Products under the partnership:Competitive comprehensivemotor insurance at a rate of 3.75%. This is a great discount from7.5% which is the market rate.Domestic PackagePersonal Accident CoverLife and Disability CoverFire & Perils:, Burglary

Biashara SalamaFuneral Expense CoverIndividual Medisure (In-Patient only)Jipange PensionIndividual Life (Education &Investments policies)Students on industrial attachmentcovers.SACCO LINK ATM VISA CARD and

Mobile bankingEgerton Sacco in conjunction with

Co-op Bank now operates an ATMlink. Our members can withdraw cashat any Co-op Bank ATM and at allother Visa branded points in Kenyaand abroad. It enables one to shopfrom supermarkets and make utilitypayments among other facilities.Members can also withdraw anddeposit money using the ATM cardthrough Co-op kwa Jirani agency.

Egerton Sacco is on M-banking

platform. M-banking is a start banking system that enmembers to transfer moneyfrom their Sacco Account, enquiries, pay for utilities abanking transactions throumobile phones. Our membnow able to access their funSacco facilities regardless o

geographical location and bthe conventional business

Services under mobileDepositing from Saccoto M-pesa .Transferring funds fromto Sacco account.Loan repayments.Airtime purch ase.Payment of utility bills electricity and water.Balance enquiry and mstatements.

Road Show flag off.

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