Page 14 - Issue 48_press_efile
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SACCO INDUSTRY WATCH
Mr. Atsiaya noted that the SACCO is doing
well in terms of savings, with members
saving at least 12 percent of their basic
salary, creating a pool of resources to
give back.
“10 years ago we really struggled.
Members would come requesting for
money that is not even there. We had to
keep them waiting for a month or two,”
he said.
Faced with such a situation, he said the
SACCO had to implement controls to
keep members from getting the service.
“We have set policies on minimum Kenya Police SACCO officials and staff celebrate with one of
savings and how much of the basic salary the trophies won during the Ushirika Day celebrations
a member should save. We have been
running on 10 percent but have now The Chief Executive said the SACCO also noting the role of national associations
gone to 12 percent,” Atsiaya said. boosts its institutional capital through such as KUSCCO in providing funding.
surplus.
The capping of members savings, as National associations, he noted, should
percentage of basic salary, helped “When we began the transformation take the lead in implementing the
cushion the SACCO on building liquidity journey in 2009, the first institutional technology to enable them facilitate
while boosting financial resources. capital we pushed into the SACCO was adoption by SACCOs.
about Sh70 million. We then passed a
“The law has helped us by introducing policy providing that we must allocate The SACCO’s service delivery is
financial capitalization. We had to do a not less than Sh500million of our surplus characterized by speed, efficiency and
financial health check, finding the SACCO to institutional capital. We have since proactive use of technology.
was negatively capitalized in 2009 to reviewed that to Sh1billion.”
2010,” he said, citing financial adequacy The SACCO conducts customer surveys
as a strong pillar. He urged SACCOs to embrace this twice each year to gauge audience
approach to change their dynamics. feedback and inform customer service
The SACCO Societies Act provides the delivery.
minimum capital required for SACCO Through capital, Atsiaya said, the SACCO
societies in the deposit taking SACCO is able to address operational issues, “We also invest a lot in staff training to
business. technology and structural issues. enhance efficiency. This is conducted
internally or through training services
“The minimum core capital for a SACCO offered by KUSCCO.”
Society shall at all times be Sh10 million
(ten million shillings). This must be met TECHNOLOGY
before a license is issued,” the law reads
in part. The SACCO is investing into an IT system, INCREASED REGULATION OF
to digitise operations and improve SACCOS
Atsiaya said Police SACCO has excelled service delivery to members.
in meeting the requirements, surpassing
the legal requirement and attaining 25 “Technology has been one of our Mr Mategwa also noted the place of
percent. key drivers and through this we are regulation in the SACCO’s transformation.
enhancing what we have been doing. We
“Our institutional capital at the moment are one of the first adopters of mobile He said regulations is a good practice,
is at Sh8 billion and we are pushing it to technology.” making members have confidence that
Sh10 billion in next one or two years,” their money is safe because there is a
he said, noting the growth from zero 10 He said the new robust system will third eye looking at it.
years ago. integrate core banking and internet,
CRM, ERP and business intelligence “As a SACCO leader it makes you feel
The SACCO has policy guidelines on involving analytics. comfortable because you know whatever
building capital, Atsiaya said. In 2009 you are doing is being regulated,” he
the minimum share capital from each In the era of digitization, Mr Atsiaya said, supporting President Kenyatta’s
member was Sh1000, by last year it was urged SACCOs to invest in technology, call to enhance regulation of SACCOs.
Sh20,000, moving to Sh50,000.
12| SACCO Star Magazine
