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SACCO INDUSTRY WATCH
KENYA BANKERS AMONG SACCO’S
APPLYING IFRS-9
From Right: Mr. Vincent Marangu Director of Co-operatives awards Kenya Bankers SACCO Nyanza Chairman, Mr. Duncan Wambani
the chairman’s shield for the best managed branch. On the left: Kenya Bankers National Chairman Vincent Chisaka
Kenya Bankers has purposed
to improve the quality “Loans are a burden to all members; boosted systems and human capital,”
of its services by putting existing and potential ones alike who said Elijah Dede, the society’s Chief
in place strict lending tend to shy away for fear that their Executive Officer.
savings will be deducted,” he said.
measures and applying the “Our four year strategic plan also
new International Financial Reporting Speaking during the 2018 Annual intends to reduce the span of time
Standard (IFRS-9). Delegates Meeting, Chisaka said that taken in loan disbursement from the
the co-operative seeks to increase the current thirty days to forty eight hours,
“With strict lending procedures and deposits from Ksh 5.3 billion to Ksh which will be made possible through
processes and adapting rules stipulated 10.7 billion, the membership from automation of the SACCO’s financial
in the 2018 IFRS9, the SACCO will 23,000 members to 46,000 members, products,” Dede said.
be able to compact the growing while the loan is envisioned to grow
impairment and this will require from Ksh 4.8 billion to Ksh 10 billion by He foresaw improved customer
concerted efforts from members and 2022. satisfaction from rate 50% to an
the management,” said Vincent Chisaka, entirely new experience of 95% and
the society’s chairman. The society has established a customer also an increase in the SACCO Centre
service charter and has moved occupancy rate from 30% to 80% by
The standard stipulates among other to diversify its products through the end of the strategic plan.
instructions, provision for all loans, automated service delivery in a move
including both performing and geared towards high customer retention Dede however faulted the bi-annual
non-performing loans. Chisaka told and improved customer experience. budget that was previously held,
delegates that the increasing number arguing that the dynamic economic
of members defaulting on loans has “We strive to increase our customer environment calls for adjustments.
slowed down the society’s growth and loyalty through improved customer
prompt action was required. satisfaction and efficiency with our
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