Successful Saccos - Managers' Guide to Acquire, Retain and Grow Membership, Savings and Assets.docx

To sacco managers,You are Lions, Eagles, and Sharks,

You are Leaders!

Successful Saccos (Ojijo)

Managers' Guide to Acquire, Retain and Grow Membership, Savings and Assets Page | ii

Book Title: Successful Saccos Managers' Guide to Acquire, Retain and Grow Membership, Savings and

Assets

FIRST EDITION, 2012ISBN: 978-9966-123-49-7

Copyright © 2012, Ojijo. All rights reserved. This work is copyrighted bythe author. No parts of this publication maybe reproduced, stored in aretrieval system, or transmitted in any form, without permission of the

publisher.

allpublicspeakers.comTirupati Mazima Mall, Nsambya, Ggaba-Road, Plot 2530,

P. O. Box 34416. Kampala, Uganda. Tel: +256 41 4696004/31 251 7908Email: [email protected] Website:

www.allpublicspeakers.com (256) 0776 1000 59 * (256) 0701 1000 59 * (256) 772 864 893

http://www.allpublicspeakers.com/

mailto:[email protected]


Managers' Guide to Acquire, Retain and Grow Membership, Savings and Assets Page | iii

Book Title: Successful Saccos Managers' Guide to Acquire, Retain and Grow Membership, Savings and

Assets

FIRST EDITION, 2012ISBN: 978-9966-123-49-7

Copyright © 2012, Ojijo. All rights reserved. This work is copyrighted bythe author. No parts of this publication maybe reproduced, stored in aretrieval system, or transmitted in any form, without permission of the

publisher.

allpublicspeakers.comTirupati Mazima Mall, Nsambya, Ggaba-Road, Plot 2530,

P. O. Box 34416. Kampala, Uganda. Tel: +256 41 4696004/31 251 7908Email: [email protected] Website:

www.allpublicspeakers.com (256) 0776 1000 59 * (256) 0701 1000 59 * (256) 772 864 893

OJIJO’S 49 BOOKS

FINANCIAL LITERACY BOOKS1. Sell Something-5 Steps to Entrepreneurship (Bible for Entrepreneurs,

Entrepreneurship Trainers, and Business Coaches)2. Successful Saccos - Managers' Guide to Acquire, Retain and Grow

Membership, Savings and Assets3. Making Money Together: Ojijo’s Investment Club Manual4. Making My Child Financially Intelligent: Money Lessons by Age Group

(from 3-13yrs)5. Invest: Ojijo’s Guide to Financial Instruments & Alternative

Investment Products6. Retire Happy: 21 Questions to Plan My Retirement7. 69 Ways to Make Extra Money While Keeping My Day Job8. What Can I Sell? 101 Business Ideas for Youth in Africa 9. Double Your Money- From 100 shillings to 100 million in 100 days

PERSONAL BRANDING BOOKS10. Stupid Writers: Ojijo’s Guide to Writing Articles, Reports,

Plans, Profiles & Proposals11. Talanta: Ojijo’s Guide to Identifying, Developing & Selling My Talent 12. This Is How To Treat A Man (Fathers, Husbands, Lovers, Sons, Brothers)13. Soft Sweet Words: Romantic Whispers to My Woman14. Cause Action: Ojijo’s Public Speaking Handbook15. The Gift of E11even Moves to Make Me Wealthy16. Seventy-7 Moves of a Sexy Woman17. Self Discipline - What, Why & How18. 99 Ways to Make People Laugh

LAW BOOKS19. Business Transactions & Contracts Law Handbook20. Family Law Handbook21. Intellectual Property Law Handbook22. Alternative Dispute Resolution Law Handbook23. Real Estate Law Handbook24. Civil Litigation Law Handbook25. Energy Law Handbook26. Labour Relations Law Handbook27. Administrative Law Handbook28. Environmental Law Handbook29. Criminal Litigation Law Handbook30. Ojijo’s Financial Services Law31. Rich Lawyers, Poor Lawyers : Law Firm Management Handbook32. Luo Jurisprudence: Theories, Institutions and Procedures of Law and Justice

(Introduction to Law)33. Legal Rhetoric: Ojijo’s Guide to Legal Writing, Legal Arguments & Legal

Interpretation34. Policy & Legal Issues in E-Commerce & E-Governance (ICT Law)

POLITICS AND RELIGION35. Why Did Hitler Kill The Jews?36. Politics of Poverty: The Odinga Curse to the Luos37. Open Religion: My Religion is the Best Religion38. Garveyism: The Philosophy of Marcus Garvey39. 100 Upright Men: World’s Greatest Revolutionary Politicians40. The Mungiki: Terrorists, Victims, Saints: Three Sides of the Same


Managers' Guide to Acquire, Retain and Grow Membership, Savings and Assets Page | iv

Successful Saccos Every sacco’s success is solely dependant on thesacco manager. The committees, consultants andboard members may help to supervise, advise andguide, but it is the manager who must inspireand motivate; train and educate; and collect,protect and grow the sacco’s wealth. It is themanager to put in place an effective system withefficient technologies. It is the manager whomust propose the growth strategy, and provide anexit plan for investors and partners. Thesuccess of the sacco rests squarely on theshoulders of the manager. Successful Saccos is abook for managers who want to understand thehistory and benefits of saccos. Successful Saccos isfor managers who want a plan to acquire, retainand grow membership, savings and assets of thesaccos. Every two in three Saccos perish.Successful Saccos will make our sacco flourish.

Successful Saccos (Ojijo) Table of Contents!

PART I: COOPERATIVES...............................9SACCOS CONCEPTS...................................10

Cooperatives & Financial Frreedom................................................10What Is a Cooperatives?...................................................................11Why SACCOS?.....................................................................................13Brief History of Saccos......................................................................17

COOPERATIVES FORMATION..............................205 Steps of Forming a Cooperative...................................................20Terms of Reference for Committee Responsible for Establishment of the SACCO..........................................................................................22The 7 Principles Cooperativess.........................................................25

SIX (6) TYPES OF COOPERATIVES.......................30Savings And Credit Cooperatives (SACCOS) Vis-a-Vis Multi-Purpose Cooperatives (MPCs).........................................................................30Cooperative Banks and Cooperative Insurance Companies.........31Cooperative Unions vis-à-vis Cooperative Alliances.......................31Primary Cooperatives vis-a-vis Secondary Cooperatives...............32National SACCOS Union/ Apex Union of SACCOS...........................33Special Project SACCOS.....................................................................36

COOPERATIVES REGULATION.............................42Statutory Regulation.........................................................................42Institutional Regulation....................................................................42Standard Setting/Guidelines............................................................43

PART II: GROWTH STRATEGY (SUCCESS FACTORS)........44Cooperatives Growth Areas..............................................................45What is Our Long Term Plan? (5-10 Year Strategic Plan)..............46Membership Strategy (Retain & Recruit).........................................47Collection Strategy............................................................................49Protection Strategy (Risk Management)..........................................50Investing Strategy.............................................................................51Lending Strategy...............................................................................52Common Challenges (Weaknesses & Threats)................................54Cooperatives Success Factors (Opportunities & Strengths)...........56Growth Plan (From Cooperativess to Commercial Banks).............58

Managers' Guide to Acquire, Retain and Grow Membership, Savings and Assets Page | v

Successful Saccos Every sacco’s success is solely dependant on thesacco manager. The committees, consultants andboard members may help to supervise, advise andguide, but it is the manager who must inspireand motivate; train and educate; and collect,protect and grow the sacco’s wealth. It is themanager to put in place an effective system withefficient technologies. It is the manager whomust propose the growth strategy, and provide anexit plan for investors and partners. Thesuccess of the sacco rests squarely on theshoulders of the manager. Successful Saccos is abook for managers who want to understand thehistory and benefits of saccos. Successful Saccos isfor managers who want a plan to acquire, retainand grow membership, savings and assets of thesaccos. Every two in three Saccos perish.Successful Saccos will make our sacco flourish.

Successful Saccos (Ojijo) PART III:COOPERATIVES IDENTITY....................59WHY SACCO (RE)BRANDING?............................60

Who Are We? (Corporate History)....................................................61What Is Our Main Purpose? (The Mision).......................................62Where Are We Going? ( The Vision)..................................................63What Will Guide Our Operations? (Our Values)..............................64

SACCO IMAGE? (CORPORATE IDENTITY)....................65Colours...............................................................................................65Logo....................................................................................................65Marketing Tools.................................................................................65Sacco Documents..............................................................................66Sacco Forms.......................................................................................67Cooperatives Profile (Format).........................................................68Cooperatives Strategic Plan/Cooperatives Manual........................71SACCOs Annual Report (Format)......................................................81

PART IV: OPERATIONS...............................85ICT INTERGRATION..................................86

Cooperatives Management Software..............................................87Cooperatives Website (Functionalities & Benefits).......................100

COOPERATIVES LEADERSHIP & MANAGEMENT.................102Leadership / Organizational Structure of Cooperatives..............102Member Meetings...........................................................................105Committees......................................................................................106Sub Committees..............................................................................108Cooperatives Governance Principles.............................................110The Manager...................................................................................113

MEMBERSHIP.......................................114Who Can Join?.................................................................................114Why Join Us? (The Pitch).................................................................115How to Join......................................................................................116Members Responsibility..................................................................117

COOPERATIVES FINANCING.............................119Sources of Funds.............................................................................119Credit First vis-a-vis Saving First...................................................120When To Get External Funds..........................................................120Why Minimise External Funds........................................................123

SACCO TRAINING & CAPACITY BUILDING CURRICULA..........124Children Financial Literacy Training.............................................124

Managers' Guide to Acquire, Retain and Grow Membership, Savings and Assets Page | vi

Successful Saccos (Ojijo) Entrepreneurship Mindset & Business Systems Curriculum........129Financial Literacy Curriculum........................................................133Investment Curriculum...................................................................137Life Skills (Personal Branding, Life Coaching) Curriculum..........143Retirement Planning Curriculum...................................................146

SUPPORT TO COOPERATIVESS(UNIONS, CONSULTANTS AND DONORS)149Donations........................................................................................149Cooperatives Unions.......................................................................150Consultancy Services/ Technical Training Areas..........................153

PART V: COOPERATIVES PRODUCTS....................154INTRODUCING SACCO PRODUCTS.........................155SHARES..........................................156SAVINGS.........................................158

Compulsory Savings.......................................................................159Voluntary /Discretionary Savings..................................................159Contract Savings (Time Deposits) Or Fixed Deposit.....................162

LOANS...........................................163Quick/Emergency Loans.................................................................165Insurance Loans..............................................................................166Education Loan/Personal Development Loan..............................167Development Loan (Business & Investment Loan).......................168Special Loan Products....................................................................169

INSURANCE........................................170Burial Scheme.................................................................................170Group Life Cover.............................................................................170Provident Fund/Pension Scheme...................................................170Group Health Scheme.....................................................................170

BUSINESSES.......................................171Line Business...................................................................................171Business with the Mother Institution.............................................171Financail Services (Forex & Money Transfer)................................171Value Added Products.....................................................................173

INVESTMENTS......................................174Saccos as Investment Vehicles......................................................174What Is Investing?...........................................................................177Why Bother Investing?....................................................................179Sacco Investments: The Ojijo 3 Investment Vehicles....................183

FRONT OFFICE SAVINGS ACTIVITY (FOSA)................188

Managers' Guide to Acquire, Retain and Grow Membership, Savings and Assets Page | vii

Successful Saccos (Ojijo) What Is FOSA?..................................................................................188Why FOSA?.......................................................................................188How FOSA Operates........................................................................189FOSA Services...................................................................................190

APPENDICES.......................................195COOPERATIVES POLICIES..............................195

Loan Policy.......................................................................................195Deposits Policy................................................................................196Withdrawals, Transfers & Refunds Policy.....................................196Default Policy...................................................................................197Death Policy.....................................................................................198Nominees Policy..............................................................................199Group Insurance Policy..................................................................200Risk Fund Policy...............................................................................200Interest Rates Policies.....................................................................200

SACCO FORMS......................................202Sacco Membership Withdrawal Request.......................................202Share Capital Transfer Form..........................................................204Share Variation Form.....................................................................206Change Of Nominated Next Of Kin................................................207Loan Application Form...................................................................210Membership Application Form......................................................217By-Laws............................................................................................219

FOSA FORMS......................................254Standing Order Instructions..........................................................254Application For Salary Advance.....................................................256Salary Remitance Form..................................................................258Application For Salary Advance.....................................................259Internal Standing Order.................................................................261Application To Open A Fixed Deposit.............................................263

GLOSSARY OF TERMS.................................264

Managers' Guide to Acquire, Retain and Grow Membership, Savings and Assets Page | viii


PART I: Cooperatives

“…if you want to go fast, go alone. If you want to go far,go with people.”

-African Proverb

Managers' Guide to Acquire, Retain and Grow Membership, Savings and Assets Page | 9

Successful Saccos (Ojijo) SACCOS Concepts

Cooperatives & Financial Frreedom

The purpose why people change departments,change employers, change careers, andeven change countries, is mainlybecause of financial freedom.

When people come together, incooperatives, investment clubs, merrygo rounds, Or Village Savings and LoansAssociations (VSLAs), what they are lookingfor is financial freedom. Thecollective investment schemes, whethergroups, clubs, or saccos, just serve asthe means. The end is what matters.

People will form any type of association,including partnerships, companies,trusts, and associations, just to reachthis very important aspect of financialfreedom. This is the purpose, and raisonde tre, of cooperatives: to offer membersan avenue to gain financial freedom.

Effectively, cooperatives, just likeinvestment clubs, investment companies,partnerships, companies, and otherbusiness associations, simply serve asvehicles to financial freedom.

Managers' Guide to Acquire, Retain and Grow Membership, Savings and Assets Page |10

Successful Saccos (Ojijo) Consequently, immediately they cease to

offer the members a better option formultiplying their wealth, they willmove to another vehicle. To recall theimmortal words of Niccollo Machiavelli,“the end justifies the means.”

It is the duty of the leaders of thecooperative to make sure that thecooperative goals meet the individualgoals of the members, otherwise, themembers will seek another investmentvehicle to meet their financialfreedom.

What Is a Cooperatives?

A co-operative is a democratic, memberdriven, business entity formed by agroup of members who have the samecommon bond-working for the same employer,belonging to the same church, labour union, socialfraternity or living/working in the same community–with an interest in either conductinga business, or saving and receivingloans.

A cooperative can either be a multipurpose cooperative (MPC), or savingsand credit cooperative (SACCOS).


Successful Saccos (Ojijo) In this book, the terms saccos and

cooperatives will be used interchegably, HOWEVER, it is important tonote that saccos are purely for savingsand credit, whereas cooperatives arethe braoder term.

In cooperatives, members agree to savetheir money together in theCooperatives and to make loans to eachother at reasonable rates of interest.Interest is charged on loans, to coverthe interest cost on savings and thecost of administration. The members maybe limited to a certain race, religion,colour, creed, and gender or jobstatus.

Members elect a board that in turn employstaff to carry out the day-to-dayactivities of the Cooperatives. Thenumber of board members are betweennine and fifteen. Members also elect asupervisory committee to perform thefunction of an internal audit.

Operating a Cooperatives is basically thesame as operating our own bank, only ona co-operative basis. The business isbuying and selling money within a groupof people who work in the same place,or as in some cases, members of thesame community. It is not a burial


Successful Saccos (Ojijo) society. But a burial society couldbecome a member of our Cooperatives. Itis not a private company, but it is aprivately owned co-operative. It is notan insurance company, but we will enjoythe benefit of loans insurance.

There are no management fees or commissionto pay to anyone or any interestoutside the co-operative movement. As amember of the co-operative we are anowner and as such we retain all theprofits of the organisation. We alsodecide what to charge for interest onloans and decide what to pay onsavings. We decide what to do with thesurplus. We are accountable only toourselves, the members of our Savingsand Credit Co-operative.

To run a Cooperatives a number of thingswill need to be organised, much ofwhich depends on our group’s ambitionsto grow the Cooperatives. TheCooperatives will need to choose aname, open a bank account, and decidewhere it will operate from, decide whowill do the bookkeeping and promotionand develop the policies for ourCooperatives.

Consequently, a Cooperatives is not:


Successful Saccos (Ojijo) A burial society, but one can join a Cooperatives

as a club or as individuals. A bank, that will turn away ordinary people as

“bad credit risks”. A subsidiary, franchise or branch of a company or

financial services loan scheme, which does notreally benefit anyone but its shareholders.

A “loan shark”, exploiting people.


Successful Saccos (Ojijo) Why SACCOS?

There are various reasons for members tobe part of a Cooperatives, and also forthe government to form or promoteestablishment of saccos.

Though Co-operatives have both economicand social aims, they are primarilyeconomic institutions and they must,therefore succeed in business in orderto be sustainable.

Among the many advantages of Cooperativessare:

$ Savings are mobilised locally andreturned to members in the form ofloans. The ideal model invests 80% ofmobilised savings to members in theform of loans. The money stays andworks within the members.

$ The democratic process is an integralpart of the co-operative andencourages people to take control oftheir own financial affairs.

$ Cooperatives interest rates on bothsavings and loans are generallybetter than rates given by banks andthe reason for this is thatCooperativess have very low overheadsas compared to banks who pay low


Successful Saccos (Ojijo) interest on savings but charge a lotof interest to cover their overheads.

$ Cooperatives interest rates on bothsavings and loans are generallybetter than rates given by banks.This is because Cooperativess aresocio-economic organizations drivenmore by the desire to empower themembers rather than profiteering. Theother reason is that they are member-owned, member controlled and memberpatronised.

$ Members in an Annual General Meetingelect members of the Board ofDirectors who employ staff to run theCooperatives. The management organswith various committees inCooperativess reflect well as far aschecks and balances principle isconcerned.

$ Cooperativess encourage members tosave, essential for economicempowerment. Co-operatives create theopportunity for people to takeresponsibility for their ownfinancial organisation.

$ Cooperativess educate their memberson financial matters by teachingprudent handling of money, savings,investments, insurance, leverage,entrepreneurship, diversification, how to keep


Successful Saccos (Ojijo) track of finances, how to budget andwhy to keep away from hire purchasesand loan sharks.

$ Cooperativess pay dividends on sharesto their members once theCooperatives is established andprofitable. Members, therefore, takepride in owning their ownCooperatives.

$ Loans are insured. Upon the death ofa member the estate will not have torepay any loans outstanding to theCooperatives.

At a social level, cooperatives help asbelow:

$ Providing social protection programsthrough such products as groupmedical cover, and group pensionscheme;

$ Cooperativess can also be used forpeace building and socialintegration. Different communitiesworking together for common good willensure more discipline andintegration for people living withina geographical location or engaged ina common business. For instance, itwas through establishingCooperativess for Matatu that somesemblance of order was restored inthe industry in Kenya.


Successful Saccos (Ojijo) There are also benefits to the sponsoring

organisations, be they schools,universities, government Ministries,Departements and Agencies (MDA), orcompanies. Specifically, cooperativessystem benefits the host organizationthrough:$ Staff Retention: The financial and

social benefits of the cooperativelead to loyalty and a sense ofbelonging to the organisation.

$ Harmony & Team Building: Thecooperative is one sure way to buildthe team spirit amongst the staffthrough such initiatives asnetworking events, social programs,and co-guarantee of loans.

$ Strategic Business and Investments:This cooperative allows capitalinvestments in strategic ventures forassured and significant returns bythe sponsor, such as staff canteens,forex bureax, etc.

$ Positive mindset creation:Cooperatives impact on positivemindset shifts of members from savingto borrow to saving for long terminvestments.

At a macro level, cooperatives haveseveral benefits:


Successful Saccos (Ojijo) $ Cooperativess perform a critical and

unique function as financialintermediaries. They mobilisesignificant volumes of personalsavings and channel them into smallloans for productive and providentpurposes at the community level.

$ Cooperatives provide the nation withliquidity for financing high networth projects through application ofaccumulated capital in the financialmarkets, through equity and debtinvestments. Consequently,cooperatives provide a system ofpooling together capital and availingcheap capital for the SMEs growth.

$ Sound by-laws and policies ensurethat there are no conflicts ofinterest and provide mechanisms ofdispute resolution when they arise.While many factors contribute to thegovernance of an institution, inCooperativess good governance beginsand ends with the board. It is thegovernance that sets the tone of theCooperativess.

$ It is not surprising that membership-based businesses have been sosuccessful. Financial services suchas savings and loans, lending forhouse purchase, life and non-life


Successful Saccos (Ojijo) insurance, and pensions provision areall concerned with directing flows ofmoney and spreading risks. They donot really need injections of capitalfrom a separate class of investors.The mutual form, in which memberslend, borrow, and agree to insureeach other is effective, they do nottake too many risks or invest too farfrom their core business.


Successful Saccos (Ojijo) Brief History of Saccos

Savings and Credit Co-operatives firstappeared in Germany in the 1870's. Theidea moved to North America in 1900with European immigration. Canada, theUnited States, Australia and Irelandhave the most established movements. Inmany regions of these countriesCooperativess are much larger than thecommercial banks.

There are 28 countries in Africa that haveestablished credit unions. Globallythere are almost 100 million individualmembers in 60 + countries around theworld. The leader in Cooperativesmovement in Africa is Kenya, woseSACCOS leads in the deposits, assets,and members.

Because the Credit Unions did not pay goodinterest on savings but gave out loansvery cheaply, members were notinterested in saving with theCooperatives, only getting loans fromthe Cooperatives. Without savings andshares the Cooperativess were unable togrow. However, because members wereenjoying the cheap loans, they did notwant to change the way they operated.Without growth, it was inevitable theCooperativess would stagnate.


Successful Saccos (Ojijo) The idea of a Cooperatives grew in

impoverished communities as analternative to other savings schemes,where one could get cheap loans.

The history of Cooperatives Societies orCredit unions shows that they wereformed critically for the relief of thepoverty among the poorer economicclasses in Europe, United Stated,India, etc. In some countries of Africathey were promoted between 1965 and1989 to fulfill the government quotawith out the members understanding theobjective, function, ownership of theCooperatives Societies, without anycapacity building and they were moredepended on government funds and highlyinsulated by politicians, characterizedby miss management, corruption, lack oftransparency and lack of membersinternal control. Due to this fact theCooperatives Societies lost theirnature of democratic organizations andwere controlled by few active members;members lost their right of settingtheir policies and making decisions onissues, this condition collapses theCooperatives development in Africa.

In recent years, in developing countriesconsideration of the potential ofCooperativess and Credit Unions as a


Successful Saccos (Ojijo) tool for sustainable povertyalleviation has been increasinglyrecognized. Evidence from povertyeradication strategies shows thatwithout empowering the poor by teachingthem how to utilize limited resourcesin a wise manner and over focusing onprovision of credit leads to excessivedebt burdens and depressed incomegrowth leaving borrowers even the levelwhere they were before.

To up-lift the poor teaching how toutilize his limited resource in a wisemanner and developing saving culture isvital; savings are the prerogative ofinvestment that generate the start-upcapital that invites savers to think ofsaving-driven investments, that maylead to profit to be reinvested againand again. This increases self-financing and self-securing orientedhouseholds in the community.

Cooperatives Societies contribute todevelop the local economies where thepoor live through their unique andstrong linkages with the community.They enable poor people to have theirvoices heard, in addition to improvingtheir daily working and livingconditions, because Cooperativess aredemocratic organizations and owned by


Successful Saccos (Ojijo) those who use their services.Cooperativess are an ideal instrumentsto empower the poor in sustainable way.They are participatory, responsive tolocal needs and able to mobilizecommunities’ fund and help particularlyvulnerable groups of people.Cooperativess enable farmers to createeconomies of scale in bargaining withurban banks and other financialinstitutions; they provide access tosustainable financial services; and,they provide low-income families withsafe place to save there income attheir area or village and reasonablypriced loans.

National union of saccos is a member ofWorld Council of Credit Unions. Throughthis relationship national union ofsaccos enjoys a reciprocal relationshipwith member countries throughout Africaand throughout the world.

Cooperativess have had a massive potentialof increasing access to financialservices to the low-income householdsand SMEs in both urban and rural areas.


Successful Saccos (Ojijo) Cooperatives Formation

5 Steps of Forming a Cooperative

Step 1: The proposer/vision bearerconvenes first meeting members with acommon bond come together to discussneed for a Cooperatives. These commonproblems may include the neeed for aUnique Service? (e.g. Forex,Restaurant, etc); need for Saving;Investment vehicles; need foraffordable loans; safety of money;and/or need for member support in termsof training, career development, orpersonal family counseling. The firstmeeting agrees on formation of a taskforce interim committee to steer,propagate and sell the idea to otherpotential members.

Step 2: Second meeting is held,convened by task force committee, andinviting other potential members, toagree on a the need for the sacco, andtimeline of registration and operation.The second meeting agrees on proposedname, membership, area, share capital,and location of proposed Cooperatives.An expert in sacco management,consultant, and or representative fromCooperatives union, is invited to givesuggestions and ideas.


Successful Saccos (Ojijo) Step 3: Third meeting is held where the

interim committee is officialy electedto hold office until the first AnnualGeneral Meeting (AGM). The interimcommittee is tasked to draft by-lawsand other documents including forms,products, logos, receipts, etc.

Step 4: Fourth meeting where theinterim committee presents the draft bylaws, name of sacco, startegies,identity documents (logos, etc),documents and forms of the sacco. Themembers approve the documents, andinterim committee is tasked to registerthe sacco, open a bank account, andstart working (collecting money andregisterering people; protecting themoney; growing the money throughinvestments; loaning the money; andsupporting the members throughteaching, etc.). The interim committeealso appoints sub committees (creditsub-committee, supervisory committee,products/investments sub committee,business sub committee, and welfaresubcommittee), as well as the interimpatron. the patron should be a seniorleader in the organisation, forexample, the government minister,bishop, director of company, manager ofthe NGO, principal of the school, etc.


Successful Saccos (Ojijo) Step 5: First (annual) general meeting

is convened to approve interimcommittee as executive committee, andappoint/approve board members, othercommittee members, and other suchresolution as interest rates, products,etc.


Successful Saccos (Ojijo) Terms of Reference for Committee

Responsible for Establishment of theSACCO

Name Of CommitteeInterim sacco management committee

Head Of Committee: Interim Chairman

Number of MembersBetween 3-7 members, with the following portfolios:

1. Interim Treasurer (responsible for collectionand depositing of money, and coordination of credit committee)

2. Interim general secretary (in charge of communications, taking minutes, and notices, and responsible for identifying the interim patron)

3. Interim education secretary (responsiblefor organizing education meetings, and coordination of education committee)

4. Interim welfare secretary (responsible for programs of networking, fun, and supporting grief stricken members, and coordination of welfare committee)

5. Interim audit and supervisory secretary (responsible for auditing functions


Successful Saccos (Ojijo) of interim management committee, and interim credit committee, and coordination of supervisorycommittee)

6. Interim products and investments secretary (responsible for development of products and investment proposals, and coordination of investment committee)

7. Interim business advisor (responsible for suggestions and development of business ideas, and coordination of business committee)

Term of Office: The interim officers will serve until the AGM is held, which should be between 12-18months after registration.

Role(S) Of Interim Committee: To popularize the sacco (through establishing

social media pages, holding meetings, etc) To organize trainings for members and potential

members To draft sacco documents, policies and forms, To recruit members, To register the sacco , To organise the first Annual General Meeting

(AGM)

Committee Members & Roles


Successful Saccos (Ojijo) Office Tentative

HolderRole(s)

Interim Patron

CEO/ Minister/ Head Teacher/ Vice Chancellor/Bishop

Calls for meetings

Issues directives Allows for meetingsSponsors the meetings (drinks, etc)Sponsors consultancy feesfor training andregistration of sacco

Interim Officials

staff from across the organisation (senior management, middle level, and low level staff)a team of between 3-7

Schedules meetings

Identifies the consultants Oversees


Successful Saccos (Ojijo) registration of saccoOversees the first annual general meeting Identifies and constitutes the interim committees (supervisory, credit, business, welfare and products)Sets draft saccopolicies to be approved at the AGM


Successful Saccos (Ojijo) The 7 Principles Cooperativess

The pioneers of the Rochdale CooperativeSociety formulated a code ofcooperative ethics, referred ascooperative principles.

These principles gave them strength andvision in time of darkness andexploitation.

The International Cooperative Alliance(ICA) reviews these principles fromtime to time and adopted the revisedprinciples which any genuineCooperative Society must strictlyadhere too and these are:

1. Voluntary and open membership 2. Democratic administration and members leadership 3. Member Economic Participation: -Service and Surplus

return to members 4. Continuous education to members and leaders 5. Autonomous and self help 6. Concern for the community 7. Cooperation among cooperatives

1st Principle: Voluntary and Open Membership

Membership in a Cooperatives Societiesshould be voluntary and open to allpersons able to use their services andwilling to accept the responsibilitiesof membership stated by General


Successful Saccos (Ojijo) Assembly of members without gender,social, racial, political or religiousdiscriminations.

However, this freedom to join theCooperatives Society is not ofabsolute, The General Assembly of theCooperatives Society may stipulate somerequirements, which must be fulfilledby a person who is willing to join theCooperatives Society for instance:

The question of age, The question of character The question of mental uprightness The question of loyalty The question of ability to save etc.

2nd Principle: Democratic Control, Administrationand Members’ Leadership

Cooperatives Societies are democraticorganizations controlled by theirmembers, who actively participate insetting their policies and makingdecisions on issues of maximum loanamount and maximum Loan period tomembers, determining interest rate,determining election period,determining duration of elected Boardsand committee, etc.


Successful Saccos (Ojijo) Every member has equal voting rights,

which is “One member One VotePrinciple.” Accordingly one member hasonly one voting right, regardless ofwhether he/she has high or small amountof money in savings and shares.

This equality gives the members the properbasis for democratic management oftheir resources within theirCooperatives.

The members elect a Board of Directors andother committees from among the membersand even they have the right to dropout inefficient and unfaithful electedBoard of Directors at any time.

The highest responsibility for theindividual members in developingdemocratic administration within theirCooperatives is attending the meetingwhich will held at monthly bases.

This meeting helps members to have theopportunity to:

Protect membership rights, Monitor if there is fair sharing of benefits or not, Assign tasks to further benefits to all, Build transparency among the members, To discuss problems together and identify solutions

by themselves.


Successful Saccos (Ojijo) If members they did not do these, with no

doubt the Board of Directors andelected committee will have the chanceto misuse the Cooperatives resources.

The Cooperatives is dealing with money,the most liquid and attractive asset:the most destructive, and productiveasset; money builds and destroysanything in this world.

Every member should watch carefully,either every resolutions passed bymembers are correctly implemented byBoard of Directors and Committees in aright way with no exploitation of theresource or not.

3rd Principle: Member Economic Participation

Members contribute equitably participationof share, savings and borrow loans, anddemocratically control the activity ofthe share, savings and loans.

The Cooperatives Societies should servetheir members to improve theirlivelihood by giving safe place tosave, teaching people how to generateincome, how they can develop thriftculture, wise use of resources.

Cooperatives Societies should be able toprovide accessible loan to needymembers based on the loan policy


Successful Saccos (Ojijo) regulations and procedures for anyproductive purpose such as seed;fertilizer, plough purchases, otherbusiness etc.

Cooperatives Societies are peoples ownedfinancial institution; it grows not bytransacting a commodity, rather profitis earned by attracting more savingsand from which distributing sound loanaccounts to members.

It is true that the main objectives of theCooperatives Societies are not to makeaggressive profit, but it is also truethat a well-organized and successfulCooperatives Society should end up witha balance of funds that enable it toprotect members share and savings fromany risk and allow expanding itsfinancial services in the future.

After the over head costs and otherexpenses are paid, reserves for loss,for expansion services are put asidethe remaining Net profit from loan isreturn back to the members as dividend.

4th Principle: Continuous education, Training andInformation to members and leaders

Cooperation requires the acceptance of newideas, new standards, new habits of


Successful Saccos (Ojijo) thought and behaviors in its owninterest and for its own survival. Thisshould be supported by educating itsmembers in appropriate way.

Educating members by education committeeenlightened members to understand theirrights correctly, inspire them tofulfill their responsibilities as amember.

Education encourages member participationon their Cooperatives issues. Thismember’s participation is a key for thesuccess to their Cooperativesdevelopment.

5th Principle: Autonomous and self-help.

Cooperatives Societies are autonomous andself help financial organizationscontrolled and managed by members.

If Cooperatives Societies enter intoagreement with government or NGOs toraise their capital from externalsources, it should be with the fullagreement and say of members.

This Agreement should ensure that everyactivity of the Cooperativesdemocratically controlled by theirmembers and maintain their autonomy.


Successful Saccos (Ojijo) 6th Principle: Cooperation among Cooperatives

Societies.

Cooperatives Societies should cooperateamong them selves in order to bestserve the interests of their membersand the community at local, regional,national and international levels.

7th Principle: Concern for the community.

Cooperatives societies should work for thesustainable development of theircommunities through the policiesapproved by their members. That is:

Teaching the youth to develop their saving culture Investing in school, hospital furniture improvements

etc., from the social reserve fund. Intermediating and managing community fund, such

as revolving fund given to the community fromNGOs.


Successful Saccos (Ojijo) Six (6) Types of Cooperatives

Savings And Credit Cooperatives (SACCOS) Vis-a-Vis Multi-Purpose Cooperatives (MPCs)

Savings and Credit Co-operative Societies(SACCOs) which are an examples ofprimary cooperatives specialize inproviding financial services to theirmembers. Financial Services includeinvestment in shares, saving deposits,credit, payments services, etc.

They are the most most common, and they donot engage in any other activities likebuying land, operating businesses, orowning other forms of investments.

SACCOs are owned by individual members ofPrimary Cooperative Societies (PCS) andArea Cooperative Enterprises (ACEs),with the role to provide financialservices as and when they are needed bythe members. In essence, SACCOS arefinancial services arms of the primaryCo-operative societies and Area Co-operative Enterprises (ACEs) societies.

Their main sources of money are memberinterest fees; and their main sourcesof capital are the memberscontributions.


Successful Saccos (Ojijo) Whereas saccos focus on financial arm of

savings and credit, there are alsocooperatives that do more than justsavings and credit. Multi purporsecooperatives are the second type ofsaccos, and they provide all theservices of savings and loans asprovided by the traditionalcooperatives, but also go a stepfurther and can participate in anyother business, and invest in variousareas.

As such, they have wider sources ofcapital, as well as various avenues toinvest their capital.

Cooperative Banks and CooperativeInsurance Companies

These are regulated commercial financialinstitutions, registered as commercialbanks, but wholly, or majority owned bySACCOS, and providing special servicesand products for the SACCOS, withcompetitive interest rates forCooperatives member borrowings, andoffering Cooperativess loans to lend totheir members. One such bank is KenyaCooperative Bank, which is the biggestin Africa.

These are companies registered asinsurance companies, and regulated by


Successful Saccos (Ojijo) the insuranc eindusry regulators, butspecialising in offering products toCooperativess, and sacco members. Mostof these can be through BankAssurance,that is, provision of insuranceservices by banks. The benefit ofsooperative specific products is thatthey are able to offer solutions thataddress specific issues of saccos andcooperatives.

Cooperative Unions vis-à-vis CooperativeAlliances

Cooperative Unions are memberbasedassociation made of other cooperativeswhich have individual members. Thecooperative unions are also calledsecondary cooperatives, or apexcooperatives.

However, cooperative alliances areumbrella organisation for allcooperatives. This difference betweencooperative unions, and cooperativealliances, is that the cooperativeunions can exist at industry specificlevel, or regional level, whereas, thecooperative alliance is always only oneof its kind per country.

These are commodity specific nationalcooperative unions that focus and bring


Successful Saccos (Ojijo) all related commodities under oneumbrella which cannot be done by theACEs. The ACEs are located specific anddeal in up to 3 enterprises. Thenational unions are envisaged to takeover many of the roles that UCA isplaying in the development of ACEs andprimary societies.

These activities include organising inputprocurement, agro-processing, securingloan funds for the ACEs and theirmembers, developing new services andlobbying and advocacy. with such afocus at national level, the variousvalue chains can easily be developed.

They include area cooperatives, districtcooperatives, regional cooperativeunions, national unions ofcooperatives, as well as association ofcooperatives.

They help to lobby for legal, policy andbusiness climate conducive for theirmembers, and setting guidelines andstandards of operations.

They operate at regional, national, andinternational level.


Successful Saccos (Ojijo) Primary Cooperatives vis-a-vis Secondary

Cooperatives

Primary Co operatives are the base of theCooperative system. Primarycooperatives are formed by a minimum of30 individuals who engage in productionof a commodity or service. these areusually formed at parish/village level.Although the Law stipulates that a co-operative requires a minimum of 30members to get registered, it isrecommended that a SACCO endeavors toget at least 350 members for viabilitypurposes.

Some co-operatives are formed at grassroot (or primary level) others operateat a secondary level. Those operatingat the primary level (i.e where themembers are individuals) are calledPrimary Societies and examples of thosewhich operate at secondary level (whereorganizations are the members) are AreaCo-operative Enterprises (ACEs) andunions.

These are secondary co-operatives formedat a sub-county level by 5-10 primarycooperative societies (PCS) and deal ina maximum of of 3 agriculturalproducts. Each ACE should have at


Successful Saccos (Ojijo) least 200 members so as to bulkworthwhile volumes for marketing.Therole of the ACE is to bulk and find thebest market for their members producein return for commission that is pre-determined by the members. the ACE alsoadds value to their members' produce bystoring, cleaning, grading, sorting,processing and packaging wherepossible. The ACE if fully owned by thePCS.

The idea is that the members of theseprimaries are able to collectsufficient bulk which gives them morebargaining power vis-a-vis the buyers.ACEs are one of the initiatives underthe new co-operative marketing system.The aim is to take advantage ofliberalization and globalizationincluding diversification of marketsand new products. There is more roomfor creativity and innovativeness whichallows for more marketing servicesoffered to the producers. The idea isto raise enough quantities of standardquality and to maximize producers’benefits instead of benefits byorganizations. At the same time theyshould ensure that the co-operative


Successful Saccos (Ojijo) organisations have to earn enoughincome to sustain their operations.

An Area Cooperative Entreprise does notbuy and trade in members’ produce;rather it helps the members to markettheir produce to their best advantage.Ownership of the produce, therefore,remains with the farmer until it getsout of the cooperative system.

National SACCOS Union/ Apex Union ofSACCOS

Every country which has cooperatives alsohas a national apex body ofcooperatives. Such are established bystatute, and are autonomous bodies asthe umbrella body of Savings and CreditCooperatives (SACCOs) has unwaveringlyencouraged the formation anddevelopment of Safe and Sound SACCOs toensure that financial services reachthe population across the country as away of encouraging savings mobilizationand use of these savings deposits as asource of investment capital to ruralenterprises.

These serve as avenue for affiliatedSACCOs to save and withdraw money ondemand. They are hence a pool of funds


Successful Saccos (Ojijo) for on lending to SACCOs with liquidityneeds.

They also manage the National CooperativeEducation Fund to which everyregistered cooperative society shallcontribute 1% per year of its turnover.50% of the education fund is sent tothe secondary society to which thesociety is affiliated, while theremaining 50% is retained by thesociety and used to carry out its owneducational programs.

They further run an insurance program toprotect saccos from non performingloans of members. This program referredto as Loan Protection Fund., involvesthe national union of saccosundertaking the responsibility ofmanaging loan risks arising from lossof SACCO members who have accessedloans from the SACCOs. The nationalunion of sacos then indemnifies andpays to a SACCO the protected loanbalance including interest that mightaccrue on behalf of the borrower /individual members of the society.

Also, these unions of saccos providenetworking platforms. They facilitate


Successful Saccos (Ojijo) communication and interaction withinSACCOs. These include inter-visits ofSACCOs nationally and internationally.They also organize regular fora formanagers and leaders of SACCOs.

In addition, they provide providetechnical assistance and internal auditincluding supervision of the SACCO onthe hand; the SACCO is responsible forthe implementation of technicalassistance provided by UCSCU under theMOU. The scope of technical assistancecovers accounting systems; adequatepolicies including credit policies andsavings policies; internal controls andprocedures. The SACCOs meet thepayments for the supervision and othertechnical assistance provided by UCSCU,which are a lump sum paid on aquarterly basis.

The unions of saccos also print stationeryfor sale to SACCOs and thereforegenerates income from this activity.The nature of stationery is used foraccounting purposes in form of books ofaccounts and ledger sheets whichincludes among other pass Books,receipt Books, payment voucher Books,


Successful Saccos (Ojijo) Ledger Sheets, Membership ApplicationForms, Cash books etc.

Finally, the national unions of saccosalso run other support services suchaas nation wide marketing campaigns forSACCOs to promote and build theirimage; act as representatives of SACCOsnationally and internationally;advocacy programs with donors, privatesector, and governments for favourablepolicies and laws for saccos; andbuilding a database for SACCOscountrywide and information managementsystems for effective operations ofsaccos.


Successful Saccos (Ojijo) Special Project SACCOS

There are a variety of cooprateives,formed to serve special interests, andor community groups.

The most common features of such types ofco-operatives include Producer Co-operatives, Marketing Co-operatives(the oldest and most common type),Savings and Credit Co-operativeSocieties (SACCOs), Consumer Co-operatives, Transport Co-operatives,Fishing Co-operatives, Input supply Co-operatives, Livestock Co-operatives,Multipurpose Co-operatives, Health /Medical Services Co-operative, etc.

Non-monetary cooperative

A non-monetary cooperative provides aservice based on entirely voluntarylabour in the maintenance and provisionof a particular service or good,working in the identical manner of alibrary. These co-ops are locally ownedand operated and provides the freerental of equipments of all kinds(bicycles, sports, gear). This idea hasbeen said to reduce general humanconsumption of goods and is a keysubject in sustainable development


Successful Saccos (Ojijo) Retailers' cooperative

A retailers' cooperative (known as asecondary or marketing cooperative insome countries) is an organizationwhich employs economies of scale onbehalf of its members to receivediscounts from manufacturers and topool marketing. It is common forlocally owned grocery stores, hardwarestores and pharmacies. In this case themembers of the cooperative arebusinesses rather than individuals.

Worker cooperative

A worker cooperative or producercooperative is a cooperative, that isowned and democratically controlled byits "worker-owners". There are nooutside owners in a "pure" workers'cooperative, only the workers ownshares of the business, though hybridforms exist in which consumers,community members or capitalistinvestors also own some shares. Inpractice, control by worker-owners maybe exercised through individual,collective or majority ownership by theworkforce, or the retention ofindividual, collective or majorityvoting rights (exercised on a one-member one-vote basis). A worker


Successful Saccos (Ojijo) cooperative, therefore, has thecharacteristic that the majority of itsworkforce owns shares, and the majorityof shares are owned by the workforce.Membership is not always compulsory foremployees, but generally only employeescan become members either directly (asshareholders) or indirectly throughmembership of a trust that owns thecompany.

Volunteer cooperative

A volunteer cooperative is a cooperativethat is run by and for a network ofvolunteers, for the benefit of adefined membership or the generalpublic, to achieve some goal. Dependingon the structure, it may be acollective or mutual organization,which is operated according to theprinciples of cooperative governance.The most basic form of volunteer-runcooperative is a voluntary association.A lodge or social club may be organizedon this basis. A volunteer-run co-op isdistinguished from a worker cooperativein that the latter is by definitionemployee-owned, whereas the volunteercooperative is typically a non-stockcorporation, volunteer-run consumer co-op or service organization, in whichworkers and beneficiaries jointly


Successful Saccos (Ojijo) participate in management decisions andreceive discounts on the basis of sweatequity.

Social cooperative

Social cooperatives bring togetherproviders and beneficiaries of a socialservice as members. They also bringtogether permanent workers andpreviously unemployed people who wishto integrate into the labor market.

Consumers' cooperative

A consumers' cooperative is a businessowned by its customers. Employees canalso generally become members. Membersvote on major decisions and elect theboard of directors from among their ownnumber.

Business and employment cooperative

Business and employment cooperatives(BEC's) are a subset of workercooperatives that represent a newapproach to providing support to thecreation of new businesses. Like otherbusiness creation support schemes,BEC's enable budding entrepreneurs toexperiment with their business ideawhile benefiting from a secure income.The innovation BECs introduce is thatonce the business is established theentrepreneur is not forced to leave and


Successful Saccos (Ojijo) set up independently, but can stay andbecome a full member of thecooperative. The micro-enterprises thencombine to form one multi-activityenterprise whose members provide amutually supportive environment foreach other.

Housing cooperative, Building cooperative

A housing cooperative is a legal mechanismfor ownership of housing whereresidents either own shares (sharecapital co-op) reflecting their equityin the cooperative's real estate, orhave membership and occupancy rights ina not-for-profit cooperative (non-sharecapital co-op), and they underwritetheir housing through payingsubscriptions or rent.

Housing cooperatives come in three basicequity structures

market-rate housing cooperatives

In market-rate housing cooperatives,members may sell their shares in thecooperative whenever they like forwhatever price the market will bear,much like any other residentialproperty. Market-rate co-ops are verycommon in New York City.


Successful Saccos (Ojijo) Limited equity housing cooperatives

Limited equity housing cooperatives, whichare often used by affordable housingdevelopers, allow members to own someequity in their home, but limit thesale price of their membership share tothat which they paid.

Group equity, zero-equity housing cooperatives

Group equity or zero-equity housingcooperatives do not allow members toown equity in their residences andoften have rental agreements well belowmarket rates.

Utility cooperative, Utility cooperative

A utility cooperative is a type ofconsumers' cooperative that is taskedwith the delivery of a public utilitysuch as electricity, water ortelecommunications services to itsmembers. Profits are either reinvestedinto infrastructure or distributed tomembers in the form of "patronage" or"capital credits", which areessentially dividends paid on amember's investment into thecooperative. In the United States, manycooperatives were formed to providerural electrical and telephone serviceas part of the New Deal. In the case ofelectricity, cooperatives are generally


Successful Saccos (Ojijo) either generation and transmission(G&T) co-ops that create and send powervia the transmission grid or localdistribution co-ops that gatherelectricity from a variety of sourcesand send it along to homes andbusinesses. In Tanzania, it has beenproven that the cooperative method ishelpful in water distribution. When thepeople are involved with their ownwater, they care more because thequality of their work has a directeffect on the quality of their water.

Agricultural cooperative, Agricultural cooperative

Agricultural cooperatives or farmers'cooperatives are cooperatives wherefarmers pool their resources for mutualeconomic benefit. Agriculturalcooperatives are broadly divided intoagricultural service cooperatives,which provide various services to theirindividual farming members, andagricultural production cooperatives,where production resources such as landor machinery are pooled and membersfarm jointly. Known examples ofagricultural production cooperativesare Ocean Spray, collective farms informer socialist countries and thekibbutzim in Israel.


Successful Saccos (Ojijo) Agricultural supply cooperatives

Agricultural supply cooperatives aggregatepurchases, storage, and distribution offarm inputs for their members. Bytaking advantage of volume discountsand utilizing other economies of scale,supply cooperatives bring down members'costs. Supply cooperatives may provideseeds, fertilizers, chemicals, fuel,and farm machinery. Some supplycooperatives also operate machinerypools that provide mechanical fieldservices (e.g., plowing, harvesting) totheir members.

Agricultural marketing cooperatives

Agricultural marketing cooperativesprovide the services involved in movinga product from the point of productionto the point of consumption.Agricultural marketing includes aseries of inter-connected activitiesinvolving planning production, growingand harvesting, grading, packing,transport, storage, food processing,distribution and sale. Agriculturalmarketing cooperatives are often formedto promote specific commodities.


Successful Saccos (Ojijo) Credit unions, cooperative banking, Co-

operative insurance

Credit unions are cooperative financialinstitutions that are owned andcontrolled by their members. Creditunions provide the same financialservices as banks but are considerednot-for-profit organizations and adhereto cooperative principles.

Federal Cooperative, Secondary Cooperatives, Cooperative Federation

In some cases, cooperative societies findit advantageous to form cooperativefederations in which all of the membersare themselves cooperatives.Historically, these have predominantlycome in the form of cooperativewholesale societies, and cooperativeunions. Cooperative federations are ameans through which cooperativesocieties can fulfill the sixthRochdale Principle, cooperation amongcooperatives, with the ICA noting that"Cooperatives serve their members mosteffectively and strengthen thecooperative movement by workingtogether through local, national,regional and international structures."


Successful Saccos (Ojijo) Cooperative wholesale society

According to cooperative economist CharlesGide, the aim of a cooperativewholesale society is to arrange “bulkpurchases, and, if possible, organiseproduction.”

Cooperative union

A second common form of cooperativefederation is a cooperative union,whose objective (according to Gide) is“to develop the spirit of solidarityamong societies and... in a word, toexercise the functions of a governmentwhose authority, it is needless to say,is purely moral.”


Successful Saccos (Ojijo) Cooperatives Regulation

Statutory Regulation

Cooperativess are regulated by thecooperative statute, or cooperativesocieties act, by whichever name itgoes. This law, and the attendantregulations, provide for the process ofregistration, fees, membership, andoperations of the sacco.

When a Cooperatives acquires memberdeposit above a given capital beyond agiven amount, then it needs to beregulated, to protect members deposit,like other deposit taking institutionswhich are regulated through mandatoryinsurance, as well as supervision bythe Central Bank, under the bankingregulation act, or related statute.

Sacco regulation covers:1. Education fund contribution, of around 1% of

sacco profits, sent to the national union ofcooperatives to enhance educational servicesprovision

2. Supervision fund contribution, of around 1%,send to the national association of cooperatives,to enhance supervision of saccos

3. Maintanance of mandatory reserve fund ofbetween 5%-10% of capital of sacco


Successful Saccos (Ojijo) Institutional Regulation

Institutuionaly, the Cooperativess areregulated by the Registrar ofSocieties, as per the cooperativesocieties act. However, when the saccosdeposit grow to a given threshold, orwhen the capital reserves grow beyond agiven threshold, then, in order toprotect depositors interests, thecentral bank supervisory committeebecomes involved, albeit theregulations are not as stringest as forcommercial banks and deposit takinginstitutions.

The institutions the regulate SACCOS alsoinclude Sacco Societies RegualtoryAuthorities, as well as Commissioenrfor SACCOS, depending on the country’sregulatory framework.

A further instiution regulating saccos isthe statutory association of saccos.

Standard Setting/Guidelines

The saccos also have national associationsof credit unions, namely, a nationalcooperative alliance, as well as anational uninion of savings and creditcooperatives. At the itnerantionallevel, there is the internationalcooperative alliance (ICA), amongstother bodies. All these serve to lay


Successful Saccos (Ojijo) out guidelines, standards, andoperational principles for effectiveand efficient management ofCooperativess.



PART II: GrowthStrategy (SuccessFactors)

“Whatever ceases to grow, begins to die.”

-Ojijo


Successful Saccos (Ojijo) Cooperatives Growth Areas

It is my responsibility, as a manager, tomake sure that the sacco is growing.

Growth is important because at the basiclevel, it brings energy and hope, andgives emotional power for more savingsand committement. Growth is also usefulbecause it attracts opportunities forthe sacco.

Further, growth in returns will make themembers to reach their vision, offinancial freedom.

If I am already running my sacco, thenmaybe it is time to grow it into abigger sacco.

Growing the sacco involves addressing themain functions of the sacco, which areto collect, protect, grow, lend, andsupport members.

I should understand that the growth of thesacco is dependant on shares, savings,loans, and specialinvestments/businesses. However, allthese are driven by the members. It isthe members who must save, or apply forloans, and pay back on time, withinterest, for the sacco to grow. It isthe members who must fix their savingsfor a longer time horizon, to allow for


Successful Saccos (Ojijo) short term lending. It is the memberswho must agree to contribute towardsspecial projects and investments.

To this end, the main job of the saccomanager, and sacco leaders, is toexplain, show, point out, and clarifyto the members how the sacco will makethem rich. Every human beign is wellmotivated when personal interest ismet. As a sacco manager, I need to showmy members how I will make them rich,individually; how the sacco will helpthem reach their personal financialobjectives; how the sacco will be theiralternative investment vehicle, inaddition to other strategies they haveto obtain wealth; and finally, how thesacco is THE BEST vehicle to financialfreedom.


Successful Saccos (Ojijo) What is Our Long Term Plan? (5-10 Year

Strategic Plan)

The sacco should have a long term plan,indicating where it will be in terms ofachieving the members final destinationof financial freedom, as well as theactivities it will do to reach thatfinal destination. The strategic planought to be reduced to one page,outlining the goals, and strategies, ofmeeting the main growth areas, namely,membership, collections, investments,and protection.

Like any other goal, it should be smart:Specific – the objectives need to be specific,

what exactly do me hope to achieve and why?Getting rich for example is not a smartgoal because it is not specific enough. Tobe successful we need to indicate why wewant to be rich, and how much money we wantto have to be rich. Nietzsche said, ‘He whohas a why can bear with almost any how!’

Measurable – My objectives need to bemeasurable. I need a way of measuring myprogress to see whether I am target. Thiswill allow me to tweak my action plan ifneeded, to get the desired results. It hasbeen said, ‘if you cannot measure it, you cannotachieve it.’

Action orientated – We need an action plan. Howare we going to achieve what we want? What


Successful Saccos (Ojijo) are the necessary steps? What are ourdaily, weekly and monthly tasks? Goals +Actions = Results. We need to make acommitment towards implementing our actionplan. Our actions will ultimately determineour level of success. We need to prospectand present to build our customer base anddistributor/downlines. Steve Chandler said,‘a goal without an action plan is a day dream.’

Realistic – Is our action plan and objectiveachievable? If not, we should go back andtweak it such that it is. Our goal must bereal, because then we will believe it, and,as the saying goes, ‘if you cannot believe it, youcannot achieve it.’

Time stamped – We will put a date on achievingour targets and ensure that we remainaccountable. Napoleon Hill wrote that ‘Agoal is a dream with a deadline’.

Membership Strategy (Retain & Recruit)

One clear area of saccos growth is inmembership. Saccos thrive when thereare many members. The more the members,the more the colletions and savings,the more the deposits, the more thecapital or investment, the more thecapital for loaning , and ultimately,the more the returns on investments forthe members. It is my responsibility asa sacco manager to put in place an


Successful Saccos (Ojijo) effective recruitment strategy to getmembers on board, as well as aneffective retentions trategy to makesure I do not lose the members Ialready have.

Member Retention Strategy

Retaining members is much more importantthat recruiting new members, since theretained members are the best mouthpiece for marketing the sacco to invitemore members. A satisfied member willtell eight potential members about thesacco, without pay, or marketingexpenses. A dissatisfied member will dothe opposite, to our disadvantage. Itshould be my responsibility as themanager to satisfy my current members.

I can roll out an effective membershipretention strategy through supportactivities in the two main areas of: Career Development/Professsional Support:

the sacco should run regularprofessional training programmes,seminars, and other services relatedto building the professional capacityof members, including talks,dialogues, conferences, etc.Cooperativess carry out the traditionof ensuring financial literacy


Successful Saccos (Ojijo) amongst their members by teachingprudent handling of money, theimportance of savings, how to keeptrack of finances, how to budget andthe importance of avoiding hirepurchases and loan sharks.

Personal Development/Family SupportServices: The sacco should run regularactivities addressing personaldevelopment of the members,including, but not limited to healthawareness programs and drives,couples seminars, children day outs,staff picnics, team building exercisefor departments, etc. TheCooperatives will provide familyevents, focusing on building thestrength of the family, through anannual dinner for members andfamilies, as well as special seminarson marriage, counseling, retirementplanning, insurance, and estateplanning.

Member Recruitment Strategy

Member recruitment is a function of themanagement, but a responsibility of allleaders, from committees, to boardmembers, to management staff, and toindividual members. Some recruitment


Successful Saccos (Ojijo) strategies include paying commission tomembers who recruit new members, givingout additional shares to toprecruiters, and giving out cash bonusto new registrations within a giventime line. Further, new recruit scanget petty cash vouchers for their use,like lunch, or fuel, vouchers. Thesecan also be given to the top savers.

Sample sacco membership goal:

To grow from 10 members in 2012 to 300 members in2017 through incentives to new recruits,commissions for recruiters, member support services,advertising, and compulsory membership to newstaff.


Successful Saccos (Ojijo) Collection Strategy

The target here is to have the saccoincrease thre three forms of savings,that is, compulsory savings, contractsavings, and discretionary savings.

The sacco should have a regular, andgruadaully increasing compulsorysavings regime. The sacco should alsohave a regular, and increasing membercontract savings regime, in terms ofamounts of money saved in fixed depositaccounts.

Further, the collection is also increasedthrough an efficient loan collection,and reducing default on loans, loanpayments, and principal payments. Thesacco should effectively intall systemsto enable tracking of loans, warningwhen loans are due, and a supportmechanism to help members restructurethe loans in such a way as to ensurefull repayment, without losing themember, or losing the saccos money.

A further strategy of ensuring morecollections is by ensuring more membersare recruited.

Finally, under savings, the sacco shouldhave a constant, and regularlyincreasing regime of discretionary


Successful Saccos (Ojijo) savings, in form of the specials avignsaccounts such as school fees, housingaccounts, business accounts or personalsavings accounts.

Sample collections /Savings goal

To increase monthly contributions from USD 50 permonth in 2012 to USD 200 per month in 2017,increasing gradually through bonus to high savers,and encouraging discretionary savings (over andabove minimum savings).


Successful Saccos (Ojijo) Protection Strategy (Risk Management)

The sacco ought to have a very clear riskmanagement strategy to protect themonet collected, and to pre-empt risksthat might affect the performance ofinvestments, loans, and or businessesinvested in by the sacco.

This is done through due diligence,provision for loses and expenses, andthrough policies of governance toensure corporate governance, as well asoperational systems intergrity.

Accordingly, the sacco needs to put inplace clear information technology andother operational systems; clearpolicies which are well understood byall members, management, committees,and the board; and clear projections ofincome and expenses.

Further, the sacco needs to provide forloses in forex, inflation, interestrates, and other business operations,so as to proactively prepare for such.

Sample Protection Goal:

To make provisions for all possible risks and losses,including, but not limited to, foreign exchange loses,increases in administrative and operationalexpenses, political risks which may affect returns,investment risks, and such other risks. Further, to


Successful Saccos (Ojijo) provide for policies to govern all application of funds,to ensure risky applications are sourted out, andhedged against.


Successful Saccos (Ojijo) Investing Strategy

Investment is an important compontent ofthe growth strategy, since it isthrough investments that the sacco cangrow its capital, the members savings,and provide the members with theirdesired objective of financial freedom.

The investment stragey ought to indicatewhere the sacco intends to invest, whattargets it is seeking, and the policiesto guard against investing in high risksectors, including guidelines for duediligence. It is important for theinvestment returns to beat annualinflation, in addition to coveringinvestment costs, so that the earningsare not just book earnings, but realearnings, adjusted in real time, forsuch expenses.

Inflation is decreasing the purchasingpower/value of a give currency or pricerises of Commodities. Cooperatives hasthe objective of safeguarding the valueof member’s savings in real terms eachyear, to protect the value erosion ofmember’s savings. In most countriesthe inflation rate is higher than theinterest rate for Savings, most peopleare unaware of this and lose moneyevery year or the real value of their


Successful Saccos (Ojijo) saving decrease every year. Therefore,to maintain the value of its member’ssavings and pay the real return tomembers, the Cooperatives shouldcollect money from lenders. To collectmoney from lenders, inflation costshould include in the calculation ofthe interest for loan.

Further, the rates of investment returnshould beat inflation rates, as aboveexplained.

Sample Investments Goal: To grow our capital base from USD 100,000 in 2012, to

USD 500,000 in 2017. To grow our investvemsntssare the rate of at least 20% return on investmentper annum for five years from 2012 to 2017.

Lending Strategy

The main purpose why most people joinsaccos is to benefit from affordableloans, accessed quickly, and withminimum requirements as to securitycollateral, and guarantees.

Subsequently, we must indicate veryclearly the policy on lending, and thisshould be motivating, inspirational andachievable. The current and potentialmembers will save, over and above the


Successful Saccos (Ojijo) compulsory savings, when they realiseour loans will be quickly accessed; ourloans are suited to their needs, suchas school loans, housing loans,business loans, car loans, etc.

A further factor in instituting anaffective and attractive lendingstrategy is to offer different interestrates, and different repayment terms.In addition, if the members know theywill get financial counseling in theuse of their funds, as well asrestructuring in case of difficultiesin repayment, they will be more forwardin borrowing.

Most of the time well-managed Cooperativesshould not have loan loss exceeding 3percent of the average portfolio in anygiven year. Therefore, loan lossreserve should maintained annual lossesat 3 percent of the average portfolioand the interest rate charged toborrowers should include 3 percent tomaintain that loan loss reserve. Loanloss is the main reason forCooperatives faller. Therefore, TheCooperatives Manager or the Board ofdirectors as a financial institutionshould submit suitable loan lossreserve proposal to the member’sgeneral assembly and show the risk


Successful Saccos (Ojijo) which will expected if it is notmanaged ahead.

Sample Lending Goal: To make sure increased lending to membersby 105 every

year, at competitive, market beating rates,preferably, base lending of the cheapest commercialbanks, minus 2 %, so as to encourage moreborrowing by members.


Successful Saccos (Ojijo) Common Challenges (Weaknesses & Threats)

Some of the challenges which becomeweaknesses, and threaten the success ofthe saccos include:

Lack Of A Common Financial Goal

The sacco ought to help every memberachiver their individual financialobjective. If a member cannot see howthe sacco will make him rich andfinancially free, the member willleave, and never come back.

Member Contributions

Successful saccos focus on membercontributions. Membership contributionsinclude membership fees, membershipsavings, and membership shares. Thereshould be minimum balances, andtargets.

Lack Of Strategic Plan

Without a strategic plan, the sacco willnot know where it si going, and whetherit has reached, or is in a completelydifferent trajectory.

Lack Of Communication

Effective communication of strategies,challenges, opportunities, anddecisions, is key in effectivemanagement.


Successful Saccos (Ojijo) Poor Liquidity Management

Poor management of liquidity will makeother members not access thei savings,and ultimately lead to members wantingto quit the sacco. The ratio of loansto assets should not be more than 75%.

Management Risks (HR)

The sacco is dependant on the leaders,especially the manager, for direction,and execution.

Politics

Successful saccos avoid electing localpolitical and religious leaders intothe positions of the interim committeeor the SACCO’s substantive committee.Avoid mixing politics, religion, etc.with the affairs of the SACCO. The mixof politics, whether politics of tribe,religion, or political parties, is aneffective mix to kill any sacco, allthe time.

High Defaults

The best SACCOS should possess ZEROtolerance for loan defaults. We shouldaim at exceeding a minimum loanrecovery rate of 95%.

High Leverage (External Borrowing)

A sacco that is highly leveraged will runinto liquidity problems, and hence,


Successful Saccos (Ojijo) affect its ability to give loans tomembers, and or provide members with anexit.


Successful Saccos (Ojijo) Cooperatives Success Factors (Opportunities

& Strengths)Big Numbers

It is a very useful strategy for the saccoto have plans, aspirations, andprojects which are huge, big, andaspirational. When members hear of aplan to build a complex, buy 10 buses,or lease out 100 acres of land, theywill be attracted. Such big goals areinspiring and motivating, and theyencourage the members to wait forsomething big.

ICT Intergration

This is done through softwares installed,and website developed, to increaseefficiency, and reduce losses throughpaper operations.

Education

Another success factor is membereducation. Educated and informedmembers are easily predisposed to takeadvise, appreciate strategy, and worktogether with the management inrealizing the final financial goals fothe sacco. Ignorant members, or worsestil, half informed members, become astrain, questioning every other move,


Successful Saccos (Ojijo) and effectlvely not giving managementfree reign to run the organisation.

Support

Successful saccos have strong membersupport. When members are supported,they will in turn give back to theirsacco through more savings, and quickrepayment of loans.

Performance Measurement

An effective performance measurementregime, of measuring where we are,where we are going, and how weachieved, or failed to achieve ourobejectives, is key to success. Thisshould cover the extent to which we areprotecting our assers, investing,lending, supporting membership, andgrowing membership.

Membership

Although the law stipulates that a co-operative requires a minimum of 30members to get registered, Successfulsaccos endeavor to get at least 350members for viability purposes.

Seperation of Duties

Successful saccos observe the governanceand management organs must observe theprinciple of separation of duties andresponsibilities in order for them to


Successful Saccos (Ojijo) be efficient and effective, and alsoavoid conflicts, duplication, neglect,etc.

FOSA

Successful saccos run front officeoperations (e.g. where people candeposit their savings, make withdrawalsfrom their saving accounts, apply for,obtain and repay loans during theSACCO’s official business hours).

Gender Balance

Successful saccos observe gender balancein its membership, leadership andoperations e.g. it should have at least30% of its membership, governanceorgans and clients composed of women ormen (whichever is in the marginalizedposition).

Growth Trajectory

Must show growth over time. In its firstyears of operation, it should target togrow at annual rates of not less than40% growth in membership; 30% growth inShare capital; 40% growth in savingdeposits; and 40% growth in loanportfolio, with a profitability of atleast 15%.


Stage Four: Commercial Bank(TIER 1 Financial Institution)

Stage Three: Deposit Taking Micro Finance (DTM) Or Micro Finance Deposit Taking Institution (MDI) (TIER 2 Financial Institution)

Stage Two: Micro Finance Institution (MFI) (TIER 3 Financial Institution)

Stage One: Saccos/Coperatives (TIER 4 Financial Institution)


Growth Plan (From Cooperativess toCommercial Banks)

The sacco should have a plan to grow from asimple savings and credit cooperative, ormulti purporse cooperative, into acommercial bank.

The path of growth is as below:

Every stage requires a given capitalization, management expertise, business systems development, corporate governance and reporting requirements.


Successful Saccos (Ojijo) It is the work of the leaders to make

all these a reality. John C. Maxwellwas right,

“everything rises, and falls, on the leader.”

It is the leaders, who will grow, or limit, the potential of the SACCO.



PART III:CooperativesIDENTITY

“image is everything”

-Sprite Advert


Successful Saccos (Ojijo) Why Sacco (Re)Branding?

Competition is a given phenomenon intoday’s financial services industry,but determining the most effective waysof competing and managing thecompetition can be a real challenge.The struggle for survival between banksand Cooperativess, and between saccosthemselves, has been increasing fromtime to time but the game has beentaken a notch higher by the entrance ofthe telecommunications sector.Cooperativess on the other hand havenot been sleeping waiting to bestrangled. They are developingcompetitive strategies in order tocreate an advantage in the area ofpolicy amendments to allow territorialexpansion.

In this clamour for new members andincreased capital base, mostCooperativess have realised that thereare opportunities in other areasoutside their geographical locations.Thus they have been (RE)BRANDING in therecent months. The names of mostteacher based Cooperativess and otherswere district based. Unfortunately,this meant that Cooperativess could not


Successful Saccos (Ojijo) expand to other districts because ofthe restrictive nature of the name.

Progressive Cooperativess have been(RE)BRANDING after engaging inextensive marketing cum expansionstrategies. Teachers Cooperativess havebeen on the frontline with agriculturalsector Cooperativess following closely.Through (RE)BRANDING, the Cooperativessnow have wings to fly beyond theirtraditional and formative borders.


Successful Saccos (Ojijo) Who Are We? (Corporate History)

The sacco should have a clearly writtenhistory of its existence, indicatingits legal entity, year ofincorporation, address, affiliation,and membership source.

This statement will sell the sacco topotential members, and give it anidentity to people who would like tojoin.

Most saccos are limited liability savingsand credit cooperatives, registerd withthe registrar of cooperatives, underthe department, or ministry focooperatives.

However, it is important to note thatthere are two types of saccos.

The sacco should clearly state itsaddress, physical offices, as well astelephone contacts and email addresses,so that members, as well as potentialemmbers can easily connect with thesacco management.


Successful Saccos (Ojijo) What Is Our Main Purpose? (The Mision)

The main purpose of the sacco is toprovide the members with financialsecurity, financial freedom, andfinancial independence through an arrayof products that allow them to savemore, invest more, and borrow for theirown uses, while also protectingthemsevels from emergencies such asretirement, education, property damage,diseases, and death.

The mission of the sacco is the oneactivity that will lead the sacco torealise its financial objectives.

As such, the main purpose, that is, theone single activity, is to collect,invest, protect, lend, and supportmembers.


Successful Saccos (Ojijo) Where Are We Going? ( The Vision)

The vision is the final destination. It isthe dreams, achieved. It is the goal,realised. It is a state of being. It isthe colour, the picture, and the shape,of success. It is the sum of all thesmall activites we are engaging in as asacco. It is the grand goal, finalobjective, the last destination. It isfinancial.

The final destination of the sacco, thereason why we do all the colletions,savings, membership recruitment,investments, and member support, is toprovide the members with financialfreedom, financial security, andfinancial independence.

As such, the sacco is designed to respondto the dynamics of the membersprofessional, and personal challenges,and the enormous demands of their livesand times.

The sacco is consequently a ‘one stopfinancial partner’ for the members,both young and old.

The array of products should effectivelybe specially designed to suit the shortand long term financial needs andobligations of the members, through


Successful Saccos (Ojijo) savings, investments, insurance, loansand pension services.


Successful Saccos (Ojijo) What Will Guide Our Operations? (Our Values)

Sacco should have clearly spelt out andmemorable statements of principle andstandards to guide the operations ofthe sacco.

These are aspirational statements, whichinspire, motivate, and uplift theminds, hopes and emotions of themembers, management, and partners, towork towards the same goal.

The value statements include, but are notlimited to:

Member support Intergrity Dependence Transparency Accountability Sustainability


Successful Saccos (Ojijo) Sacco Image? (Corporate Identity)

A very important part of the saccosidentity are the documents of thesacco, and these inclue the logo,letter heads, website, colours, forms,documents, flyers, posters, banners,and related documents which createvisibility for the sacco.

It is very important to crate a new imageof the sacco in the branding phase, andthis includes addressing the followingareas:

Colours

The sacco should have its own uniquecolours, separate from those of othersaccos,and separate from those of theline institution, or organisation, orsponsors, so that it showsindependence. The colours should alsobe corporate, to refect the governancestyle, and future aspirations of thesacco.

Logo

The sacco should have a logo that isinspirational, simple, memorable, andclassy. The logo will be to the membersthe vision, mission, and values they


Successful Saccos (Ojijo) hodland cherish. The logo will remingthem of where they are, and where theywant to go.

Marketing Tools

This includes the websites, businesscards, social media accounts, flyers,banners, and pull auo stands. Theyshould be well designed, printed, andstrategically placed, and distributedto the members, and potential members.For instance, the pull up banner shouldbe placed at the entrance of theoffices housing the sacco, so that allvisitors to the institution will knowthere is a sacco, and all employees andpotential sacco members can always seethe sacco presence.

Sacco Documents

Sacco documents, such as the constitution,the by-laws, the registrationcertificates, and the license, shouldall be displayed strategically to brandthe sacco, and build the image of thesacco as a professional association,operating legally, and with clearstructures. Other documents inclyde thestrategic plan, which should have clearmission, vision, and value statements.

The documents include, but are not limitedto:


Successful Saccos (Ojijo) Draft 5 Year Strategic Plan Development (Learning,

Investing, Social Support, Institutional Development)

Staff & Committees Terms of Reference

Organisation Structure (Board, Committees,Management, Staff)

Constitution or By-Laws

Policies (Credit, Saving, Investment)

Financial Documents (Records, Receipts, Invoices,Loan Books, Ledgers, etc)

Sacco Manual, which is the profile of sacco, listingthe vision, mission, products, staff, profitability,partners, and future plan.


Successful Saccos (Ojijo) Sacco Forms

Saccos operate based on systems, and formsenable collection of information, andeffective management of the same, andence, effective business systems.

The sacco image is to a great extentdepednant on the forms of the sacco.Saccos have various forms, which areclassified into forms for saccos whichdo not have front office servicesactivities, and the front officeservices activity (FOSA) forms.

The forms include:Front Office Savings Activity (FOSA) Savings Account Application Form FOSA Account opening Application Form Savings Scheme Application Form FOSA Withdrawal Application Form Back Office Savings Activity (BOSA) Forms Membership Application Form Next of Kin Form Loan Application Form Spousal Application Form Guarantors Form Shares Transfer Form Membership Update Loan/Shares Variation Cheque Deposit form Withdrawal Form


Successful Saccos (Ojijo) The sample sacco forms are herein attached

in the appendix:


Successful Saccos (Ojijo) Cooperatives Profile (Format)

(This format is based on Ojijo’s Sell Something -Think Like An Entrepreneur, Build A Business System).

1) Philosophy

About Us: Our name, legal entity, year offormation, and address.

Vision & Mission: The final place we want totake members; and the main action to reach usthere.

Goals: Our targets in respect to membershipnumbers, investment amounts, and otheractivities.

Company Competitive Advantage: Anyspecial feature that gives us potential to achieveour goals faster.

Corporate Social Responsibility (CSR):Our free services to community, e.g. visitingchildren homes, etc. 2) Partners (Suppliers)

Product Suppliers: name, address andcontact persons of suppliers ofgoods and services.

Utility Service Providers: name, contactpersons and addresses of rental, water,electricity, and garbage collection suppliers.


Successful Saccos (Ojijo) Professional Service Providers &

Advisors: name, contact persons, andaddresses of lawyers, bankers, insurance agents,brokerage companies, training consultants,wealth advisors, etc. 3) People (Staff)

Company Ownership Structure: Membersnames, ownership percentages, and otherinterests.

Board of Directors: names, profiles, andposition of board members.

Management: names, profiles, and positions ofsenior managers.

Staff: names, profiles, and positions of staff. 4) Product

Product Description: list of products,investments, savings, loans, etc.

Product Benefits: list of benefits of everyproduct, the unique selling proposition. 5) Profitability (3Cs)

Clients/Customers: Our members, clients, orcustomers list, with contact details, etc.

Cashflow: current status of income andexpenditure report, or cashflow summary.


Successful Saccos (Ojijo) Capital: current balance sheet, listing all assets

and liabilities. 6) Process (Company Operational Strategy)

Entry Strategy: how do we intend to startoperations, a step by step plan, implementationmatrix.

HR Strategy: how do we intend to get the besttalent to manage, and work for ourorganisation?

Marketing Strategy: how do we intend topromote, price, and distribute our products.

Selling Strategy: how do we intend to sell?strategy of pricing, sales tools, etc.

Customer Retention Strategy: how weintend to retain our current customers, i.e.,database, contacts, discounts, etc.

Financial Strategy (Sources & Uses ofFunds): our planned sources, and uses offunds.

Risks & Risk Reduction Strategies: listof risks that we are likely to face, the strategies toaddress them.7) Plan

Growth Plan: How we intend to increase sales,profits, and investments. includes sales


Successful Saccos (Ojijo) projections, profitability projections, andcashflow projections.

Harvest & Exit Strategies: what do we dowhen we are big enough? will we become a bank,or investment company? acquire othercompanies? move to new geographical regions?create new products? or close shop?


Successful Saccos (Ojijo) Cooperatives Strategic Plan/Cooperatives

Manual What is a Strategic Plan

A strategic plan is a list ofactivities to be performed in orderto achieve certain targets, orgoals.

An SACCO strategic plan is hence awritten plan that indicates wherethe SACCO is today, and where itwants to be in a future time,listing the various steps that haveto be taken to achieve themilestones.

According to Kotler, a leadingstrategist and leader,

‘in the strategic formulation, goals indicate what abusiness unit wants to achieve, and strategy is agame plan for getting there. Every business musttailor a strategy for achieving its goal.’

The strategy is the ‘what’ activity tobe done; how, where, when and to whom.

“the devil is in the details, so is failure andsuccesses.”

-Ojijo


Successful Saccos (Ojijo) Without a strategic framework I do not

know where my going or why my goingthere. So, then, it does not reallymatter how I get there!

Strategic planning gives I clarityabout what I actually want toachieve and how to go aboutachieving it, rather than a plan ofaction for day-to-day operations.

The activities are based on thevision, the final picture of whatthe organization wants to realize;the activities are based on thefinal destination of where we wantto be within a given time; theactivities are it is based on themedium term and short term goals toreach that final destination. Thefinal destination is the dream. ButI need strategy to reach my dream.

Strategy is kingIndeed, in the words of the Great

philosopher, General and militarystrategist Sun Tzu,

‘Action without strategy is simply the noise beforedefeat.’


Successful Saccos (Ojijo) The strategic plan is compass

direction. It answers the greatquestion of Peter F. Drucker,

‘What is our business?’

Strategic planning is setting thedirection for my organization in away that helps me identify and takeadvantage of emerging opportunities.

Strategic planning is about threevariables,

RESULTS=ACTIVITIES=RESOURCES.

The process of planning typicallyinvolves working iteratively throughmultiple steps. I will commonlystart by identifying results I want toachieve, and work backwards toidentify the activities I will need toproduce the results. Then, I willneed to identify the resources I willneed to carry out the activities. Atthe same time, the planning processgenerates substantial new knowledgeas I proceed, that will cause me torethink prior conclusions. I will


Successful Saccos (Ojijo) typically need more than one pass tofind a match between results,activities, and resources.

To become a successful entrepreneur, Ishould know the importance of astrategic plan, and learn to writeone up. I should start with astrategic plan.

The strategic plan is the documentthat states what the business is,what it will do, how it will do it,and the value that it will give tothe clients, and to myself as thebusiness owner. Further, once theneed to raise finance has beenidentified, it is necessary toprepare a strategic plan. If Iintend to turn around a business orstart a new phase of growth, astrategic plan is an important toolto articulate my ideas whileconvincing investors and otherpeople to support it.

The strategic plan should also beupdated regularly to assist inforward planning.



The very process of researching andwriting the strategic plan shouldhelp clarify ideas and identify gapsin management information about mybusiness, competitors and themarket.

The strategic plan indicates who weare, what we want to do, to whom,how, and when. It then indicates howwe will know that we are meeting ourgoals.

Sections of Strategic Plan

There are many contents of a strategicplan, which are divided mainly intofive (5) main sections, namely,

1. Organizational Profile2. Investment Club Activities/

Operational Plan//Goals/Objectives3. Situational Analysis (Feasibility

Study)4. Performance Measurement5. Financial Plan

In detail, these areas cover:


Successful Saccos (Ojijo) 1. Organizational Profile

This section is attached to thestrategic plan, and shows thecurrent status of the investmentclub, indicating the philosophy, people,products, partners, processes, profitability, andplans. a) philosophy, (this includes the name, address,

legal nature, and location of the investmentclub)

b) people, (this includes listing of boardmembers, management, advisors, staff)

c) products (this lists the products we have inthe club, which can include loans, savings,insurance, etc)

d) partners, (this lists our service providers,including utility service providers,professionals services providers, etc)

e) processes (this lists our policies andprocedures in doing our activities, andincludes credit policies, investment policies,recruitment policies, sales plans, marketingplans, customer care plans, and investmentclub systems of risk management)

f) profitability, listing clients, cashflow, andcapital base.


Successful Saccos (Ojijo) g) plan, listing the future growth and or exit

strategy.

2. Operational Plan /Investment Club Activities/Goals/Objectives

This section lists the activities thatare to be carried out, based on thegoals or objectives or targets ofthe organisation.

Operational plan is the step by stepprocess of implementing the program,and includes the methodology, orprocedure, or start up of project,through implementation ofstrategies, delivery of product, andmeasuring of performance.

The matrix lists the objective, orgoal, followed by activities,outputs, and outcomes.

The budget, or cot of activities, canbe inserted at this point.

In detail, the sections include:a)Goal or Objective: This is the

ultimate, final destination beingsought. Organizations havegenerally three to five goals, andthese can cover membership


Successful Saccos (Ojijo) recruitment, training and capacitybuilding; investment; sales;branding; networking; andinstitutional development. Theidentification and realization ofobjectives determines therelevance and effectiveness of theorganisation, respectively.

b)Activities: These are the specificactions that are taken to fulfilthe objective, and they caninclude training and capacitybuilding; advocacy; purchasingland; research; report writing;etc. They are usually attached tocosts element. Activities, and useof resources, determine theefficiency of the organisation tofulfil the resources.

c)Outputs: These are the immediateresults of an activity, and theyinclude meetings held; reportspublished; advocacy campaigncarried out; debates; trainings;etc. They determine theeffectiveness of the organisationin fulfilling its objectives.


Successful Saccos (Ojijo) d)Outcomes: The overall result of

the activities is the long term,final, wider gain, by the variousproject stakeholders. This is themain objective, or main, goal, ofthe project. The realization ofoutcomes fulfils thesustainability, impact, and reachof the project.

The operational plan/activities, alsoincludes the Growth & Exit Plan. Thispart of the plan indicates theprocedure, processes and activitiesthat will be carried out by theorganisation so as to grow, or toexit the market, after realizationof initial objectives. Theseinclude:

a) Increasing Sales/Profitability/Net Cashflow:This involves increasing the moneyflowing into the organisation byincreasing the gross revenue, orprofitability, or net cashflow.

b) Investment & Expansion/Expanding To NewMarkets/Net Products/ IncreasingReach/Impact/Market Share: Thisinvolves increasing brand image ofthe company, or organization, by


Successful Saccos (Ojijo) increasing market share, orprogram reach, or impact ofactivities. This involvesexpansion of the project.

c) Exiting TheProgram/Market/Management/ProductDevelopment. This involves eitherthe project being stopped, orownership changing, or themanagement changing.

The details covered include:

a) Entry strategy: b) Production plan (research & development)c) Marketing plan (4p marketing plan, branding

plan)d) Sales plan (sales forecasts, break even

analysis) e) Customer/member retention plan

(stakeholder satisfaction)f) Investment club systems (risk management

plan, investment club systems checklist)The template for listing the

objectives activities, outputs, andoutcomes, is also the same templatefor monitoring and evaluation, witha few minor changes, and the


Successful Saccos (Ojijo) template for Mid Term Review (MTR),annual report (AR) or End TermReview (ETR) of the project.

3. Financial Plan

This section of the strategic planlists the budget of theorganisation, that is, the sources,and uses of funds. The budget isbased on the implementation plan,and indicates the costs of achievingthe said objectives. In someinstances, the implementation planis fused with the budget.

In summary, it lists the following:a) Cost of project & means of finance (expenses

forecast, sources of financing, the offer, clawback strategy/guarantees)

b) Financial Statements (Income Statement,Balance Sheet, Cash Flow Statement)

c) Financial Ratios (Liquidity, Efficiency,Profitability, Leverage/Solvency )

4. Situational Analysis (Feasibility Study)


Successful Saccos (Ojijo) This section list the factors that

might affect the achievement of thegoals, and hence, the feasibility ofthe project.

The analysis looks at various areas ofkey import to program success, andthey include: Social Economic factors;Technological factors; Economic factors;Ecological/stakeholder factors; RegulatoryIssues; internal factors of strengths andweaknesses of the organisation; andCompetitor Factors.

The key areas for feasibility study,in summary, are:

a) Social-Economic analysis, including lifestandards, cultural issues, etc, that affects theoperations of the organisation. Highpopulation growth, leading toincrease in demand for services.Culture and lifestyle is changing,and can affect the product.Political stability will lead toease of doing investment club.

b) Technological analysis, including systems ofdevelopment, or delivery or product.Technological factors can lowerbarriers to entry, reduce minimum


Successful Saccos (Ojijo) efficient production levels, andinfluence outsourcing decisions.

c) Economic analysis/ Gap Analysis/DemandAnalysis/Market Analysis/Supply and DemandAnalysis, which indicates the supply anddemand of the products, and hence ability tosell or deliver the product. Economicfactors affect the purchasingpower of potential customers andthe firm's cost of capital.

d) Regulatory Issues, including laws, policies,constitutional provisions, as well as regionaland international obligations that mightaffect the organisations work. Regulatoryfactors include governmentregulations and legal issues anddefine both formal and informalrules under which the firm mustoperate.

e) Ecological Analysis/Stake Holder Analysis (allplayers in the industry value chain, fromproduction, through distribution, to sales).

f) Internal Environmental Analysis/ Ojijo 4PAnalysis of People, Product, Principal andProperty. The internal environmentalanalysis looks at thecompetencies, structure, resourcesand culture within the company.The internal environment comprise


Successful Saccos (Ojijo) factors within the control of theorganization, and is analysedusing the Ojijo 4P Analysis Model,which looks at the people (board,directors, management and staff);product (the quality, price, anddelivery); property (fixed andmoveable assets); and principal(capital finances for operationsas well as machinery).

g) Competitor Analysis. An analysis ofthe competitors, their producttypes, production processes,pricing, promotion, distribution,and value proposition.

5. Performance Measurement

The purpose of any activity is toproduce results. The strategic planhas a section that lays out the planfor monitoring and evaluating theresults being achieved forcomparison with the intendedresults.

The areas of performance measurementinclude:a) investment club performance,


Successful Saccos (Ojijo) b) staff performance matrix, c) strategic plan review, d) implementation matrix

The result of performance measurementis the:¯ Evaluation Report, ¯ Mid Term Report (MTR), ¯ End Term Report (ETR), or an ¯ Annual Report.


Successful Saccos (Ojijo) SACCOs Annual Report (Format)

A very important part of growth iscontinuous regular reporting of thestatus of the SACCO.

This report, presented at eitherannual general meetings, or specialgeneral meetings, is important as itshows where we are, in relation towhere we came from, and where we areheaded.

An annual report should have thefollowing documents:

A. Executive SummaryB. Chairman’s Message C. Organizational ProfileD. Directors’ ActivitiesE. Activities & Business ReviewF. Corporate GovernanceG. RecommendationsH. Auditors Report

Chairman’s Message This is the welcoming message of the

current, or outgoing chairperson, tointroduce the report, and thank the members.


Successful Saccos (Ojijo) Executive Summary

This is a summary of all contents of the report, and summarises the following sections:

a) Organizational Profileb) Directors’ Activitiesc) Activities & Business Reviewd) Recommendationse) Auditors Report

Organizational Profile

This lists the current state of theorganisation, covering the Seven Psnamely:a) Philosophy, b) People, c) Products, d) Partners, e) Processes, f) Profitability, and g) Plan.

Directors’ Activities

This section reports on any specificactivities that happened in relationto the directors, including changeof directors, resignation of


Successful Saccos (Ojijo) directors, or such other suchactivities that changed the legalresponsibilities and duties or oneor all directors. This also includesdirectors’ meetings, decisions, andsuch resolutions that wereimplemented, or shelved.

The particular issues addressed hereinclude:a) Resignationsb) Re-election of Directorsc) Retiring Directorsd) Directors’ meetings

Activities & Business Review

This section of the directors’ reportlists the entirety of activitiesengaged in by the organisation, inthis case, this includes:a) Training and capacity building events;b) Networking and fun events;c) Investment activities;d) Corporate social responsibility events.


Successful Saccos (Ojijo) Corporate Governance

This part of the report indicates the business systems, procedures, and processes, and the extent to which they meet legal standards of corporate governance, protection of shareholders interests, and regulatory standards.

The details covered include:

a) Legal Entity, Office, Address & Locationb) Going Concernc) Share Capitald) Company Secretariese) Indemnitiesf) Employment Policies g) Shareholder Rights (Voting and

Communication)h) Government Regulationsi) Environmental Regulationj) Ethical Issues & Value Systemsk) Legal Proceedingsl) Auditorsm) Annual General Meeting (AGM)

Recommendations

Finally, the directors’ report shouldlist any recommendations for futurerunning of the organisation, or for


Successful Saccos (Ojijo) the winding up of business, or suchother change in strategicpositioning of the organisation.

Auditors Report

Attached to the director’s reportshould be the auditor’s report. Thedetails cover:a) Statement Of Directors Responsibilitiesb) Basis of Opinionc) Statement Of Comprehensive Incomed) Statement Of Financial Positione)Notes To The Accountsf) Any other Comments (Corporate Governance,

Policies and Procedures) .



PART IV: OPERATIONS

“success, and failure, loves systems.”

-Ojijo (Sell Something-5 Steps to Entreprenuership,2012.)



ICT Intergration

Successful businesses are run on systems.however, the best systems areautomated, so that repettitve actionscan be accomplished by a click of abutton, by using a form, or aprorocess/procedure, which has beenproven to work, and not redoing everyactivity from the start each and everytime. Information and communicationtechnologies help in such automation.

It is not debatable that ICTs effectivelyand efficiently improves performance oforganisations.

Consequently, the question is not whetheror not to have a software, but rather,the type of software that can lead tocomplete itnergration of all saccofunctions, so that the work of themanager is not on doing normal mundanetasks of data entry and comparison, butrather, on acquiring, retaining andgrowing the membership, savings, andassets.


Successful Saccos (Ojijo) Cooperatives Management Software

The role of a sacco management software isto intergrate all basic functions ofthe sacco into an online, accessible,and automated process, so that with aclick of a button, reports, status ofaccounts, membership dues, liquidity,and other performance measures can beseen.

There are three types of softwares forCooperatives management:

1. Software As As Service2. Premise Based Installation3. Open Source Solutions

Web Based Softwares/ Virtual Office/Software As AService/Cloud Based Softwares:

A web based application is a softwarepackage that can be accessed throughthe web browser. The software anddatabase either reside on the saccosown server, or a central server ratherthan being installed on the desktopsystem and accessed over a local areanetwork. This is what is calledSoftware as a Service (or "SaaS").

SaaS is distinguished from traditionalsoftware in several ways. Rather thaninstalling the software to my computer


Successful Saccos (Ojijo) or the sacco's server, SaaS is accessedvia a web browser (like InternetExplorer or FireFox) over the Internet.Data is stored in the vendor's datacenter rather than on the sacco'scomputers. Upgrades and updates, bothmajor and minor, are rolled outcontinuously. And perhaps mostimportantly, SaaS is usually sold on asubscription model, meaning that userspay a monthly fee rather thanpurchasing a license up front.

Web based applications are the ultimateway to take advantage of today'stechnology to enhance my sacco’sproductivity & efficiency. Web basedapplication gives me an opportunity toaccess my business information fromanywhere in the world at anytime. Italso facilitates me to save time &money and improve the interactivitywith my sacco members.

It allows my sacco administration staff towork from any location and sales staffto access information remotely 24 hoursa day, 7 days a week. Accessibility isguaranteed from anywhere, anytime.Further, web-based applications areeasy to use and can be implementedwithout interrupting my existing workprocess.


Successful Saccos (Ojijo) One of the biggest selling points is the

potential to reduce IT support costs byoutsourcing both hardware and softwaremaintenance and support to the SaaSprovider. Further, technical support isusually included as part of the monthlysubscription cost with Softwaresolutions.

Desk Top Applications/ On-Premise:

Desk top applications, “shrinkwrap”software, on premise applications,(sometimes abbreviated as "on-prem"software), are software solutions thatare specific to the particular client,are installed on the clients website,and or internal server, for thepurposes of only serving the client,and not centrally located elsewhere.Access here is possible only when oneis in the premise and connected to thelocal area network. However, there canbe access through a public internetprotocol, where the internet serviceprovider can offer access to the localserver, from anywhere, within a givenrange of distance.

Traditional software and Software differsignificantly on matters of customerservice and technical support. Toreceive full technical support with


Successful Saccos (Ojijo) traditional software, many vendorsrequire that users purchase per-licensesupport packages on an annual basis.Because the software is installed onthe user's computers, the computerconfigurations, server setup, and otherinstalled software may complicatesupport. In some cases, it can bedifficult for users to identify whichtechnical support to contact: thesoftware developer, the operatingsystem developer, the hardware vendor,or their own computer consultant.

Further, access to traditional legalsoftware is limited by hardwarecompatibility, operating system, andlicensing. For example, a casemanagement software may only becompatible with a PC running Windows XPor later, with a certain processorspeed and quantity of RAM.

Open Source Softwares

The other methodology of having softwaresfor law firms is where a lawfirmaccesses free software, and modifies itto its needs. There are severalproviders of these, includingVirtualLaw, etc..


Successful Saccos (Ojijo) Features of Sacco Software (On Premise Or

Software As A Service Solution)

Real Time Integration: A real time integratedsystem which means that loans, shares,statements, income and expenses and allaccounting are updated immediately.Users get their performance reports andstatus results immediately, and not atany period end.

Secure Operations: Our data is 100% safe! Thesoftware ensures our data is encrypted;intruder cannot make sense of the data.The solution ensures redundant databackup locally and remotely, even withloss of our computer, our data is safe.The secure bank level SSL system makessure that there is no unauthorizedaccess. Security is implemented by use of usernames and

passwords.

Security is also achieved by use of user groups &profiles that defines the specific roles & functionsof an individual or particular individuals

The system keeps an audit trail of all transactions

Encrypted passwords

User-views and access levels

SSL Certificate for Internet Banking

Audit Trail for users


Successful Saccos (Ojijo) Expiring sessions for users

SMS Package & SMS Banking: The solution comeswith bulk SMS features, which allowCooperativess to send alerts,notifications, and group texts from thesystem.

Clients can access their loan, shares, savingsbalances and other accounts related info on theirphone

SMS Alerts are automatically sent to a borrower,when their respective loan is approved, and later ondisbursed.

A client receives a transactional SMS Alert when adeposit or withdrawal is made to their respectiveaccount

Inquiries and comments can also be sent by SMS,replied to by the bank’s personnel

The SMS cost can be automatically billed from thesavings account of an individual

Source of income for the Institution if more than thecost of the SMS is billed on the account holdersaccount.

Mobile and Online Banking Services: Throughsoftware dashboards, Cooperativess areable to offer online and bankingservices to their members and clients.


Successful Saccos (Ojijo) Clients can access their loans, shares, savings

statements from anywhere in the world as long asthey have internet access.

Clients can access the loan calculator andScheduler online

Clients are able to apply for loans right from theiraccount. The systems advises them about theproducts available and how much they canborrow based on their savings, shares, and loanbalances

Clients can send comments/inquiries andmanagement replies to them and vise-versa

Manages Members' Personal Information: Withthis solution, we can capture Membersand clients personal details in depth.Include passport photos and next of kindata to the identification details. Thesystem can:

Captures all legal and statistical details.

Captures next of kin details

Captures all other references e.g. propertydocuments, title deeds with no limit to what youwould require the customer to represent.

Captures passport photos and signatures.

Allows you to include advisory, instructions or anynotes to a member or customer.


Successful Saccos (Ojijo) Can block, black list or restrict members and

customers

Loan Processing: Automated Loan Applicationsthat checks for compliance to relevantby laws and credit policies. Thesoftware facilitates easy management ofguarantors, interests, penalties,processing fees, and reducing balancerepayments. Ability to create thousands of loan products and

categorise them per industry, purpose, length ofloan period and income of the target groups.

Loan application, approval, collateral, LoanGuarantors and disbursement with the ability togive each borrower, special consideration in asfar as interest rate, penalty rate, loan period.

Automatic interest calculation of interest (Flatrate, Declining Balance, Amortization), andpenalty calculation

Group/Member lending, and ability to trackindividual’s and group’s portfolio.

Standing Order Facility: Perform similar andmultiple transactions in batch modewithin a fraction of a second.


Successful Saccos (Ojijo) Communication Technology: The software taps

into modern advancement incommunication technology, adds SMSalerts, email alerts, online accountstatement, online messaging portal.

Reports: The system generates customreports and other graphicalillustrations of performance, loanperformance, liquidity, accountsreceivables, accounts payables ,deposits, loans, etc. The softwareruns report files produced using anddoes not have hard coded reports withinit which mean that all reports areindependent files that can becustomized for the users or by theusers themselves. There is a selectionof rich standard reports that aredeployed by the system. Users can addown reports to the list. Additionalreports can be sent to users onrequest.

Produces statements for members and customersthat can be printed or saved as word excel webpages and acrobat files to be sent via e-mail.

For example the system automatically generatesmember statement on any of the above format


Successful Saccos (Ojijo) such that users can be sent statements as mailattachment and thus saving on paper.

Allows online inquiries on balances, history andstatements.

Gives loan loan/share statements that can haveour logos implemented.

Allows special reports to print slips on specialprinters like the 60 0r 80 mm roll printers.

Solution comes with hundreds of reports thatinclude Portfolio, Savings, Shares, GeneralLedger, Audit Trail, Financial Statements, etc.

The portfolio reports include Ageing reports,whose ranges are user defined.

The Software comes with standard reports andqueries and users can add more or request morefrom service providers.

Outputs from reports can be printed orsaved as:1. Microsoft Word2. Rich Texts3. WEB Pages4. Microsoft Excel5. Acrobat portable documents6. Send by Mail

Accounting Module: The accounting moduleallows generation of financial reportslike income & expense journals, profit


Successful Saccos (Ojijo) & loss statement, trial balance andbalance sheet anytime by touch of abutton. It also allows for financialratios, including debt to equityratios, liquidity ratios, efficiencyratios, and capital to loan ratios, tomention but a few. The accounting isflexible and allows the sacco tostructure our own chart of accounts bygiving broad blocks on which to buildon. A template chart of accounts isprovided to give me a good start.Available functionalities handle allaspects of financial accounting,budgeting, reporting, consolidation andtransaction processing with theappropriate internal controls.

Tracking loans and accounts payable, and theirinstallment payments

Receive members and clients deposit to thevarious saving plans, loan repayments. Issuereceipt against each transaction.

Manage Cooperativess income from differentinvestments, members activities with ease.

Expenses Module facilitate smooth tracking ofexpenses.

Fixed asset registry with automatic depreciation,and provision to sell them


Successful Saccos (Ojijo) Reserve funds and provision to transfer to

payable accounts.

Tracking receivables and their correspondingcollections

Tracks expenses and any other incomes from allsources

A list of transactions on any account in any perioddefined

The general Ledger is linked with Client's accountsensuring accuracy and availability of financialreports when needed.

Products Management - Loans, Shares and Savings:The system allows the sacco to designproducts the way we want includinginterest rates, maximum and minimumamounts, standard insurances and othercommissions and charges. All loan andshares products are user configurablewith numerous parameters, keywords andstandards that brings the exactsolution that fits the sacco. The saccocan even design own commissions andcharges and apply them to loans.

Loan can be sent to FOSA (banking) directly onapproval.

Gives standard controls and parameters to defineproducts.

Allows you to create your own controls.


Successful Saccos (Ojijo) Allows you to define unlimited product types.

Loans can be serviced by Savings (FOSA)automatically.

Simple and straight forward system to managemembers shares.

Members can have several concurrent activeloans each with different completionperiods.

Automatic dividend calculations and transfers tomember’s shares or loans.

Saving interest are calculated as advised based onuser selectable methods and are transferred tocustomer accounts directly.

Has varied loan products with very flexiblerepayment periods (daily, weekly, monthly, quarterly,bi-weekly, bi-monthly)

Front Office (Banking) Customer Service: Includes all teller activities defined in the system:

Customers Deposits/Savings : Cash & Chequedeposits

Customer Cash Withdrawals

Cheque Clearance & charges

Cashier Cash Controls (Controlled cashier activities &balances)

Fixed DepositsManagers' Guide to Acquire, Retain and Grow Membership, Savings and Assets Page |

137

Successful Saccos (Ojijo) Standing Orders

Account Funds Transfers

Business Activities Transactions & Revaluations

Saving Interest management

Over-draft services & charges

Managing thousands of savings products(compulsory savings, fixed deposits, free savings, etc)and defining their attributes such as interest rate,opening balance, minimum balance, maturityperiod, transactional and monthly ledger fees, etc.

Awarding interest periodically.

With-holding tax on interest automatic calculation

Automatic and triggered loan repayments frommember’s saving;

Payment to any other account from savings

Purchase and transfer of shares, sharing dividends

and many other services as defined in the system

Business Activities: It has product buying,reselling and revaluation forcustomers. It is customized forcustomers specific need like appendagesthat can automatically read fromweighing machines or scanners forautomatic data entry for customersproduce buying e.g milk weighing fordairy farmers sacco, Tea weighing for


Successful Saccos (Ojijo) Tea Farmers sacco etc. Customers maysupply additional specifications theyrequire and if they are not alreadythere, they are developed and testedand then included.

ATM Cards Features: Allows Customers to useATMS to withdrawal money or querysaving balances and receive a mini-statement. It also allows customers touse mobile phone SMS to query theirLoan, Shares or Saving Balances. Thesacco members can also purchase itemsat retail sites such as super markets,petrol stations and other cardsupporting sites.

Automated Services & Processing: This enablesthe sacco to set automated transactionsor processing that include internaltransfers, standing orders, loanpenalties etc.

CRM Module: This enables managing andtracking customer related data againstbusiness goals, strategies andprocesses, a customer relationshipmanagement module automates client-related data acquisition and marketing.


Successful Saccos (Ojijo) It address customer contacts, productsof interest, sales, follow up,marketing, managing leads, etc. Ithelps helps give insight into our salesand marketing and customer supportprocesses and improve team efficiency.

Data Representation (Exports & Imports):Remittances can be entered one by oneor within a journal batch where severalare entered before being posted.Journals can be imported from MicrosoftExcel or text files to be processed andposted. They can be retained asrecurrent such that they are re-usedevery period with minor changes. TheExcel Importing is very advanced andusers can design worksheets withformulas and forms that resemble theirown office documents.

Remittances can be exported and imported throughMicrosoft Excel or Text Files

Automates regular charges, standing orders, loanpenalties and any other user required automation.

Easy in data entry and allows storage of recurrentand repetitive transactions so that they are usedagain without re-keying. This saves time and ensuresaccuracy.


Successful Saccos (Ojijo) Has all standard reports including those requested

by regulatory bodies.

Can Import and export data to Microsoft Excel, Word,Internet, Acrobat and universal rich text format.

Unlimited number of standard and customizablereports.

No Limit in number of users, members, customers,accounts, or transactions.

Has immense audit control on all records includingcreation date, modifying date, by whom and when.

Does not limit in the amount of data, both currentand historical that the sacco can store.

Forex & Stock Management: The system alsooffers effective module for managingforex exchange. Buying of Foreign Currencies

Selling of foreign currencies

Automatic capture of profit realised on each sell

Buying and selling of other stock

HR & Payroll Module: The system provides forregistration of staff members andrecord details, process payroll, allowfor staff to apply for leave, advances,and emergency loans, and deductions,


Successful Saccos (Ojijo) track time off & sick leaves, overtime& undertime. Tracking employees’ details

Salary, allowances and deductions management


Successful Saccos (Ojijo) Cooperatives Website (Functionalities &

Benefits)Forms

The sacco website should list all forms,documents, and policies of the sacco,and allow for their download by membersand or potential members.

Products

The sacco website should list theproducts, namely, loans and savings,with details of qualifications,requirements, and policies associatedwith each.

Investments

The sacco website should list allinvestments carried out by the sacco,including special projects, and alsoideas about future investement deals.

Reports

The website should list reports of thesacco, including, but not limited toaudited account reports, meetingreports, project reports, etc.

Management

The management should be listed on thewebsite, including the board, themanagement committess, and sub


Successful Saccos (Ojijo) committees, and the employees, togetherwith their contact details.

Contact us

The website should have very celar andvisible provision for contacts detailsof the management, committee members,and operational premises address.

Events

The website should list all events by thesacco, past and present, so members canbe kept abreast of developments.

FAQs

There should be a page listing thefrequenstly asked questions, so thatmembers (and potential members) can gethelp without having to call, or seek aphysical meeting with sacco management.

Feedback/Surveys

The website should have interactivefeatures for members to take surveys,and give feedback on programs,activities, and investments by thesacco.


Annual General Meeting(Special General Meeting)

Supervisory CommitteeBoard of Directors

Education Committee

ProductsCommittee

Loans CommitteeInvestments Committee

Employees - Manager - Accountant - Cashier - Savings officer - Credit officer

Auditor

Management Committee/ Executive Committee

Social Affairs Committee

Advisory Board & Patron

Successful Saccos (Ojijo) Cooperatives Leadership & Management

Leadership / Organizational Structure ofCooperatives

The governance and management of acooperative is done by five separateand distinct organs, namely:

1. Board of Direcors/Advisory Board & Patron 2. Members/Shareholders (Annual General Meeting)3. Management Committee/Executive Committee4. Sub Committees 5. Management staff or SACCO Workers.



These organs of the SACCO have got towork in harmony. Each organ shouldefficiently and effectively perform itsduties and responsibilities in orderfor the SACCO to achieve its setobjectives.

In course of doing their work, thegovernance and management organs mustobserve the principle of separation ofpowers and responsibilities in orderfor them to be efficient and effective,and also avoid conflicts, duplication,neglect, etc.

Members (Meetings)

At the apex of sacco leadership is themembers, who run the sacco through theAnnual General Meeting (AGM), and theSpecial General Metings(SGM).

Board of Directors/Advisory Board & Patron

The board of directors is the visionbearer of the sacco, and makes surethat the mangement committees liveaccording to the vision, mission andaspirations of the members. Thechairperson to the board is also thepatron to the cooperative.


Successful Saccos (Ojijo) Supervisory Committee

This is a very important committee, withthe roles of ensuring that the actionsof the managemtn committee, and othercommittees, are in lien with therequiremtns of the law, and the memberswishes.

Management Committee

The management committees, which are theexecutive officers, are responsible forimplementation of the dreams of themembers.

Sub Committees

The sub committees are technicalcommittees, with the fuction ofensuring detailed implementation of thewishes and dreams of the sacco members.

Advisors

The advisors, who can be consultants, andor service providers, are the technicalexperts, who come in from time to timeto offer professional services to thesacco, such as accounting, legal,auditing, strategic planning, etc.


Successful Saccos (Ojijo) Member Meetings

Annual General Meeting

It is supreme authority of the society andis composed of delegates elected fromBranches/Districts/Units. It meets todeliberate and discuss on election ofthe Board of Director and SupervisoryCommittee members; pass resolutions;budgets; audits reports; committeereports; appointment of Auditors; toset maximum borrowing powers; and otherrelated matters. The General Meetingsis held annually within four monthsafter every financial year.

Special General Meeting

Special General Meeting is convened todiscuss specific issues of the Societyof which fifteen (15) days writtennotice is given and attended by all thedelegates. The meeting can be convenedby the Board of Directors or theCommissioner for Co-operative andMarketing.


Successful Saccos (Ojijo) Committees

Board of Directors & Patron

The board of directors is the visionbearer of the sacco, and makes surethat the mangemetn committees liveaccording to the vision, mission andaspirations of the members. They shouldbe between 5-9 members, proposed by themanagement committee, and approved atthe AGM. The chairperson of the boardshall be the patron of the cooperative.


The Management Committee is the governingAuthority subject to any directionsfrom the General Meeting and the By-laws of the society, and directs theaffairs of the society. The ManagementCommittee is elected by and from themembership of the society. TheManagement Committee includes theChairman, Vice-Chairman, Treasurer andSecretary, and one other member, all ofwhom will be elected by the Committeefrom amongst the members of theCommittee.

The management/executive Committee works tomake policies to guide the SACCO; hire &supervise management staff who areresponsible for handling the day-to-day orroutine operations of the SACCO; conduct


Successful Saccos (Ojijo) membership recruitment; and direct thebusiness of the SACCO and report to theMembers through the AGMs.

The management committee choses all othersub committees, namely:1. Investment/Producst Sub Committee2. Credit Sub-Committee3. Education Sub-Committee4. Business Sub-Committee5. Welfare & Health Sub-Committee

Supervisory & Audit Committee

It is an oversight body elected by theGeneral Meeting for internal checks andbalances. The committee is mandated toinspect the operations of theoperations of the Society and reportand report to the Board, GeneralMeeting and the C.C.D. The Chairman iselected during their first meeting.Should have 3-5 members, nominated bymembers, or self nominated, andapproved by the AGM through voting.

The committee also performs duties ofaudit and financial investigations andfrequent checks to see to it thattransparency and finances of theSociety are secured.


Successful Saccos (Ojijo) Sub Committees

Products & Investments Sub-Committee

The Investments Sub-Committee shall carryout market research on the mostlucrative investments to be made, inaccordance with the investment policyand laws regulating SACCOS, with a viewof advising the management committee.It also advises on the saccos products.The Investments Sub-Committee consistsof three members who shall be membersof the Management Committee but none ofwhom shall be Executive Officers. TheManagement Committee chooses theinvestments Sub-Committee within 7 daysafter each General Meeting. Should have3-5 members, nominated by members, orself nominated, and approved by the AGMthrough voting.

Credit Sub-Committee

The committee consists of three members ofthe Board who are not in the executivecommittee. Its main role is toappraise, scrutinize, approve all loanapplication forms, recover all loansgranted and make reports to Board.Should have 3-5 members, nominated bymembers, or self nominated, andapproved by the AGM through voting.


Successful Saccos (Ojijo) Education Sub-Committee

The committee consists of three members ofBoard Chaired by the Vice Chairman. Itsmain role is to plan, organize and co-ordinate, education and trainingprograms for all members, committee andstaff. Should have 3-5 members,nominated by members, or selfnominated, and approved by the AGMthrough voting.

Business Sub-Committee

The committee should have 3-5 members,nominated by members, or selfnominated, and approved by the AGMthrough voting. Its work is to look outfor business opportunities, and reportto the management committee.

Welfare & Health Sub-Committee

The committee consists of the three tofive members elected by the Boardassigned to perform duties of listeningto members personal issues, includingsocial affairs such as entertainment,family programs, funeral services, andrelated matters. This committeeaddresses issues to deal with membershealth, health programs and healthactivities. It also addresses issues ofloss, disease, suffering, Finally, italso addresses issues of social


Successful Saccos (Ojijo) programs, including adventure, camping,member parties, etc.


Successful Saccos (Ojijo) Cooperatives Governance Principles

In performing the duties assigned to them,the different Cooperatives organs andofficials shall take into account thefollowing principles:

Democratic Gvoernance

Cooperativess are owned and controlled bytheir members and anybody may join aslong as they fit the common bondrequirement. Each member has one vote;no matter how much money he or sheinvests. The members then elect a Boardof Directors, (always an odd number)consisting of the members, from whichan Executive Committee is chosen. TheBoard appoints a Credit Committee andan Educational Committee.

Participation

Members’ participation is essential foreffective and efficient governance andmanagement. All members shall have avoice in the decision-making processeither directly, or through the organsthat represent them. Such participationshall be free of intimidation, duressor undue influence.

Transparency and Easy Access to Information

All processes, decisions and relevantinformation shall be transparent, and


Successful Saccos (Ojijo) accessible to all those concerned.Governance organs shall hold regularmeetings to direct the Cooperatives’saffairs. In this respect, theBoard/Committee and its Sub-Committeesshall meet at least once a month, whilethe General Meeting shall be held atleast once a year and in any case notlater than 3 months following the closeof the Cooperatives’s financial year.For issues that require specialresolution, like changing bylaws, allmembers shall be invited. Similarly,the Supervisory/Audit Committee shallmeet regularly to provide effectivesupervision of the Cooperatives’soperations and general business.

Accountability

All decision makers shall be accountableto immediate supervisors and higherorgans and ultimately, to the membersand communities.

Consensus Orientation

The different organs and officials shallendeavour to reach consensus on allmatters critical to the Cooperatives’soperations. This will be achievedthrough a participatory approach,transparent systems and operations, andfull accountability to the members.


Successful Saccos (Ojijo) People in power shall be open todiffering view points.

Efficiency and Effectiveness

The Cooperatives’s governance organs shallhave policies, processes and proceduresthat produce results that meet theneeds of members. Hence, theCooperatives’s resources shall be usedefficiently.

Equity

All members shall have equal opportunityto benefit from the Cooperatives’sservices. The members, withoutdiscrimination shall feel they aretreated with utmost fairness at alltimes.

Respect for Rules, Policies and Regulations

The legal framework and policies underwhich the Cooperatives is regulated andoperates shall be respected strictlyand impartially enforced. TheCooperatives’s By-Laws and operatingpolicies and regulations shall alwaysbe complied with. They will be madeknown to all members at all times.

Strategic and Visionary Leadership

The Cooperatives shall have leaders andmanagement with a vision for andcommitment to the organisation, and


Successful Saccos (Ojijo) passion to improve their members andthe communities in which they arebased. Their character and past recordshall be free of any unprofessionalreputation.

Knowledge and Skill in Leadership and Management

The members of the governance andmanagement organs shall beknowledgeable and trainable inCooperatives governance, management andoperations.

Organisational Growth

Governance organs shall focus theirefforts on Cooperatives growth, both insize and operations. Continued growthwill result into the Cooperatives’ssurvival and sustainability in the longterm.


Successful Saccos (Ojijo) The Manager

The manager is an employee of theCooperatives society and accountable tothe Board of directors for his/heraction. Therefore, the manager shouldnot be part of the board that hires andset the salary for him/her.

The manager should be required to attendall board meeting with all informationfor BODC discussions and encounteredproblems that require BODC decisions,though he/she is an active non-votingparticipant.

The manager is responsible for the overalloperation of the Cooperatives Societydelegated by the BODC.

The manager is expected to: Do all management functions (Planning, Organizing,

Directing, Coordinating) Controlling of all the Cooperatives resources and

day-to-day activities including personnel's. Maintaining and revising all necessary book keeping

and accounting system, Encourage membership promotion and active

participation of members, Communicate the Cooperatives development and

performance among members, Reporting current issues and problem with possible

recommendations to the Board,


Successful Saccos (Ojijo) Keepinforming the board about the current

regulations and pending legislations that mightaffect the Cooperatives,

Encourage the employees to understand theobjectives, goals and relationship of member’ssatisfaction with Success of the Cooperatives.



Membership

Who Can Join?

The sales pitch should indicate peopleeligible for joining a sacco.

This should be opened for members of theinstitution, adssocaition, or communitysponsoring the sacco, as well as theirfamily members.

The membership should be divided intoprimary and secondary membership.

The primary members are the ones currentlydirectly involved with the sponsoringasociations either employees, orproducers, or practitioners. Primarymembers can introduce their spouses,children and employees who will enjoylimited privileges in the Cooperatives.

The secondary members are their spouses,children, or dependants. Secondarymemnership can also include studentstraining to become professionals,incase the sacc is for a professionalbody.

The Cooperatives employees and theirspouses, children,a dn dependants, alsoqualify for membership but with limitedmembership privileges.




Successful Saccos (Ojijo) Why Join Us? (The Pitch)

The advanteges of joing a sacco include: Wealth Accumulation from continuous and regular

savings. Easy Accessible Loan using their savings as collateral. Investment opportunity Job opportunity Good flow of income Build Risk protection Build self confidence and self reliance Access Loans 3 times your savings at low interest

rates (instant, medical, development, school fees, etc) Enjoy Member Support Services (career development

and family support seminars) Earn interest and dividends on savings Join others in solving a commong problem Own a bigger thing, for instance, be part of a owners

of 100 acresof land, or 7 storey apartment blocks, or25 buses.

Risk Limitation (Reduced Exposure), by participatingin joint pools.

Learn about money, business, management, andgeneral financial literacy through lessons tomembers.


Successful Saccos (Ojijo) How to Join

Being part of the a Cooperatives should bea simple affair.

One requires to complete a membershipapplication form obtained from thesacco offices offices (it can also bedownloaded from the sacco website:),attach a copy of the identificationdocument, which can be a nationalID/Staf ID/Driving License/Passportwith copies of recent passport photos.

Once completed, the new member shouldsubmit the application and togetherwith the joining or subscription fee.

Most saccos will have a Cooperatives BankAccount, or can be operating a frontoffice, where members can depositmoney.

Download, fill, sign, and submit aMembership Application Form

Pay Member Registration Fee Pay Annual Subscription Fee Buy One Share Start Saving


Successful Saccos (Ojijo) Members Responsibility

In Cooperatives Society members' savingspool a lot of money that will lend tomember. Therefore, members should beserious in knowing and take thefollowing responsibilities:

Patronize the Cooperatives

The members should ctively participate inbuilding the sacco through savings,shares, and loans.

Members must make a conscious decision tobe committed and maintain thatcommitment even when competitors makemore attractive loans with low interestrate than their Cooperatives.

The Cooperatives is their own financialinstitution, members can raise theproblem and look at the options tosolve it by their own participation.

The interest paid by the members goes backto the member as a dividend based onthe capital participation, but thecompetitors never do this.

Be Informed about their Cooperatives

To implement their responsibilities,members

Must know what is a Cooperatives Society means? Must know what it can do for them?


Successful Saccos (Ojijo) Must know the objectives, policies and problems that

Cooperatives faces.

Therefore, members should attain everymonth meeting to have adequate information about their Cooperatives.

Oversight

Member must participate in selecting andevaluating elected directors andcommittees seriously and honestly.Members should understand that electingthe most popular or least controversialperson is not the wisest choice forCooperatives management.

Further, since Cooperatives deals withmoney, which is the most liquid asset,that expose easily to risk, membersmust study care full to select thosewho have:

Skill of loyalty Integrity and truest worthy Willingness to work for Community development

Members should participate in elections.However, dlection does not mean the endof the member responsibility, membersmust keep in contact with thedirectors and committees to askquestions, make comments, request newservices,


Successful Saccos (Ojijo) Members should observe and evaluate the

directors and committee performance. Understand and Adopt Legal papers

Members are responsible to understand,adopt and amend the legal by law,policies and regulations of theCooperatives Society; otherwise theywill not be benefit from their rights.

Therefore, members should read andunderstand each articles of the by law,policies and regulations to know how itoperates and what services can theyobtain from their Cooperatives.

Evaluate Performance And Audit Report

Members should evaluate the annualperformance and Audit reports,identifies the strength and weakenscare fully.

Members should pass practical solution anddecide their own roles for theirImplementation.

Members should plan next year activitiesof the Cooperatives, that is potentialmembers promotion, Saving mobilization,loan distribution and management, etc.


Successful Saccos (Ojijo) Cooperatives Financing

Sources of Funds

As a manager, my saccos has varioussources of capital.

Source Details

Share Purchase

Members sign up, and continual purchase of shares.

Minimum Savings

The compulsory regular savings per month or week.

Discretionary Savings

Any additional savings tby members for such projects as cars, vacations,e tc.

Annual Membership Fee

Paid yearly by members, and usedfor either operations, or capitalised on members account.

Contract Savings

Savings using fixed deposit accounts

Subscription Fees

paid once at joining, and used wither for operations, or capitalised to members account.


Successful Saccos (Ojijo) Service Charges

limited fees for over the counter charges, account maintenance, withdrawal, passbook, etc.

External Funds

These can be from government, micro finance institutions, banks, SACCOs, and or private individuals, who could also be sacco members.

Credit First vis-a-vis Saving First

Because Credit First is more appropriate forhigh return activities but Saving First ismore appropriate for those who live insubsistence agriculture and low-returnof activities, statistics reveal thatfar more poor people demand savingsservices than loans. Making a surplusand developing strong Cooperativess isin member’s interests in the longerterm, rather than short-term gain ofcheap loans only.

When To Get External Funds

The case for lending to member-basedinstitutions is supported by at leastthree arguments:


Successful Saccos (Ojijo) 1. Young member-based institutions often

struggle to reach a critical size atwhich they can sustain themselves.Carefully dosed outside capital can bea helping hand, enabling theinstitution to gain scale more quickly.

2. Many institutions are simply unable to

meet the demands of their members forloans. Outside capital can help them dothat. Because it is able to satisfy thethirst for loans, the institution gainsthe confidence of its members. Mostinstitutions have a healthy spreadbetween the rate they borrow at, andthe rate at which they lend to theirmembers. A strong institution shouldeasily be able to pay the interest onborrowed money, cover any loan losses,and still make a profit, which then canbe added to the balance sheet asretained earnings, or distributed tomembers. External funds will not help aweak Cooperatives become strong. Infact, wholesale lenders risk doing moreharm than good when they lend toCooperativess with weak management,ineffective governance or poorlyperforming portfolios. The promotion ofthe Cooperativess and Credit Unions


Successful Saccos (Ojijo) with system of building self supportingthinking and voluntary peopleestablished their Cooperativess andCredit Unions based on the philosophyof building self-help society or“people helping people”. They did notexpect any thing from the outside to bepiped to them as financial resourcesexcept technical and training support.

2) Wholesale loans to a Cooperatives canimpact the savings culture of theinstitution positively or negatively.In the weak Cooperativess studied,external credit changed the orientationof the institution from savings-led, tobeing simple mechanisms for thedisbursement of external funds,resulting in a deterioration of loanportfolio quality and amounts of membersavings. However, the change in aCooperatives's savings rate dependsmore on the quality of management andgovernance than on anything else. Thestrong Cooperativess studied retainedtheir saving orientation afterreceiving external loans.

3) Cooperativess can be very successful

without accessing external funds if


Successful Saccos (Ojijo) they have qualified and dedicatedmanagement and governance teams,sensitized members, good policies, andeffective capacity building fromoutside sources. Two Cooperativess inthis study have shown sustained growthover time without any external funds.

4) Efficient capacity building is crucial,

since the success of wholesale lendingis largely dependent on the quality ofgovernance and management.Unfortunately, there is much anecdotalevidence of inequalities in the amountof assistance given; redundancies,overlaps and contradictory messages inthe assistance given by differentproviders to the same Cooperatives;poor timing of interventions; lack ofaccountability and conditionality; anda mismatch between institutionalassessments and the assistance given.

5) Monitoring and reporting requirements

imposed by wholesale lenders, inparticular requirements to age andprovision the portfolio, can lead toimprovements in management practices ofgreat value to the Cooperatives.Unfortunately, most Cooperativess do


Successful Saccos (Ojijo) not recognize the value in theserequirements.

6) Many Cooperatives members were

negatively influenced by politicianswho presented the external funding as agovernment grant. In those cases,delinquency rates increased after theloan. Cooperativess that sensitizedtheir members about the need to repaythe loan were more successful inmaintaining high repayment rates.


Successful Saccos (Ojijo) Why Minimise External Funds

The arguments against lending toCooperativess are at least four:

The character of the Cooperatives as amember-owned and run institution canchange if it receives substantialoutside funds. Members are less likelyto think they are borrowing their own,their neighbour’s, or their family’smoney; instead, they are likely tothink they are borrowing thegovernment’s, or a donor’s, fundsinstead, and thus assign a lowerpriority to repaying loans, and toinsisting that other members repay. Theprinciple of self-help, by mobilizingmember savings for on-lending, can beundermined, and that can lead to laxrepayment discipline and eventualcollapse of the Cooperatives. Thesudden infusion of substantial newfunds can overwhelm the existing loanappraisal capacity of the institutionor the borrowing capacity of itsmembers, and may lead the Cooperativesto make bad loans in a scramble toplace its excess liquidity. In somecases, when Cooperativess get creditfunds the boards and management loosen


Successful Saccos (Ojijo) the controls and this leads to fraudand eventual losses.

Management will have less incentive toencourage members to save when theinstitution’s coffers are full ofexternal funds.

If the institution has weak baselineportfolio quality, the repayment of theexternal loan can decapitalise it, asliabilities to external sources usuallyhave contractual priority over theinstitution’s own funds, and externallenders usually do not share in therepayment risk. The result is that allloan losses, whatever the source of theloan, must be paid out of theinstitution’s capital, or out ofmembers’ savings.


Successful Saccos (Ojijo) Sacco Training & Capacity Building Curricula

The SACCO ought to have in place a clear, andregular program for learning for members. This program should include the following areas:

Children Financial Literacy Training

(extracted from Making My Child Financially Intelligent: Money Lessons by Age Group-From 3-13 Years)

Most children are word literate, but financially illiterate. This training curriculum will help the parents to train their children about money.

FINANCIAL INTELLIGENCE & LITERACYFINANCIAL LITERACY & FINANCIAL INTELLIGENCE?¥ Financial Literacy ¥ Financial Intelligence¥ Scope of Financial Literacy

FINANCIAL LITERACY & MY CHILD¥ My Child & Money?¥ My Child & Financial Intelligence¥ Principles of Financial Literacy


Successful Saccos (Ojijo) GOALS FOR CHILDREN AGE 4-6

GOAL 1: MONEY RECOGNITION¥ What Is Money?¥ Recognizing Money¥ Recognizing Value of Money¥ Combination of Money¥ Money Games for Children

GOAL 2: GIVING TO CHARITY¥ What Is Philanthropy?¥ Why Philanthropy¥ Guidelines for Donations

GOALS FOR CHILDREN AGE 7-9

GOAL 3: BUDGETING!¥ What Is Budgeting?¥ Why Budget?¥ Teaching My Child to Budget!¥ The Ojijo 10% Budget Plan

GOAL 4: ALLOWANCE¥ What Is Allowance?¥ Why an Allowance¥ How to Run an Allowance Program

GOALS 5: SAVING-2-INVEST

¥ Saving & Saving-2-Invest!¥ Why Save?


Successful Saccos (Ojijo) ¥ The Ojijo Three (3) Rules of Saving¥ Strategies to Make My Child Save!


GOAL 6: SMART SHOPPING!¥ What is Smart Shopping?¥ Why Shop Smart?¥ Shopping Smart¥ Tips to Buying Smart

GOAL 7: BORROWING & LENDING MONEY¥ What Is Credit / Loan?¥ Why Teach Credit and Loans?¥ How to Borrow Money¥ Sources Of Debt¥ How To Lend / Advance Money¥ Factors When Borrowing/Lending¥ Advancing Money to my Child


GOAL8: THE NEED TO BE RICH!¥ What Is Being Rich?¥ Why Be Rich?¥ The Ojijo 9-Ways Of Acquiring Money¥ Principles of Being Rich!

GOAL 9: DREAMING, SETTING & ACHIEVING GOALS!¥ What Are Dreams & Goals?


Successful Saccos (Ojijo) ¥ Why Set Goals?¥ How To Set & Achieve Goals!

GOAL 10: CREATING MONEY-CAREER DEVELOPMENT!

¥ Career, Profession & Talent!¥ Why Build Career?¥ How Can My Child Build His CareerGOAL 11: CREATING MONEY-ENTREPRENEURSHIP¥ What Is Entrepreneurship?¥ Why Entrepreneurship?¥ Principles of Child Businesses¥ 5 Skills of Entrepreneurship¥ 7 Steps to Entrepreneur¥ Sample Businesses for My Child

GOAL 12: CREATING MONEY-INVESTING

¥ What Is Investing?¥ Two Types of Investors¥ Why Bother Investing?¥ The Ojijo 3 Investment Vehicles¥ The Ojijo 9 Principles Of Investing¥ Teaching My Child Investing


GOAL 13: INSURANCE¥ What is Insurance?¥ Why is Insurance Needed?¥ Insurance as Protection


Successful Saccos (Ojijo) ¥ Insurance as Investment

GOAL 14: PENSIONS (RETIREMENT PLANS)

¥ What Is Pension?¥ Why Pension?¥ Understanding Social Security

GOAL 15: ESTATE PLANNING

¥ What is Estate Planning?¥ Why Estate Planning?¥ Will¥ Concurrent Estate¥ Powers of Attorney¥ Trusts!¥ Gifts!

GOAL 16: TAXES & TAX PLANNING

¥ What Is Tax?¥ Understanding Taxes¥ What Is Tax Planning?¥ Why Tax Planning?

GOAL 17: ELEMENTARY ECONOMICS & ECONOMIC INSTITUTIONS

¥ What Is Economics?¥ Why Teach Economics?¥ Economic Development


Successful Saccos (Ojijo) ¥ Monetary/Financial Institutions¥ International Trade¥ Economic Theories¥ Competition & Market Structures¥ Economic Systems


Successful Saccos (Ojijo) Entrepreneurship Mindset & Business Systems

Curriculum

“success, and failure, loves systems”-Ojijo

(Extracted from Sell Something: Ojijo’s Guide to Entrepreneurship Mindset & Business Systems ISBN 978-9966-123-03-9)

Entrepreneurship is both a mindset, and a system. Successful entrepreneurs think in a given way, and run their businesses in agiven way. Most entrepreneurs get the money, but become chained to their businesses and business relationships (clients and colleagues), such that the businesses cannot survive without them andthis put their other relationships (familyand friends) at risk. Ultimately, such businesses cannot grow, cannot attract investors, and cannot survive the founders, because they do not have systems. Successful entrepreneurs have developed their businesses into systems. This training will help me to develop the mindset of an entrepreneur, and to create business systems to guarantee me freedom:STEP ZERO: DECIDING TO BECOME AN ENTREPRENEURENTREPRENEURSHIP = SELLING SOMETHING!


Successful Saccos (Ojijo) ANYONE CAN BE AN ENTREPRENEURSTEP 1: SEEING THE PROBLEMENTREPRENEURS ARE OPPORTUNISTS (SEE PROBLEMS AS OPPORTUNITIES)STEP 2: HOW IS IT BEING SOLVED? (FEASIBILITY STUDY)DEFINING FEASIBILITY STUDYCONTENT OF FEASIBILITY STUDY¥ Social-Cultural Analysis¥ Technological Analysis¥ Economic Analysis/Demand Analysis/ Gap Analysis¥ Competitor Analysis/ Supply Analysis/Porter Forces Analysis¥ Ecological Analysis¥ Regulatory Analysis¥ Internal Capacity AnalysisSTEP 3: FIND A SOLUTION (DEVELOP A PRODUCT)ENTREPRENEURS ARE PROBLEM SOLVERS (THINK OF A SOLUTION TO THE OPPORTUNITY)ENTREPRENEURS INNOVATE, ORIGINATE, OR SOURCE & SUPPLY¥ Entrepreneurs are Innovators¥ Entrepreneurs are Creators¥ Entrepreneurs Source & SupplySTEP 4: DEVELOP THE OPERATIONAL PLAN, THE SYSTEM?ENTREPRENEURS HAVE A PLAN¥ Why Business Systems¥ A Plan Is A Business System


Successful Saccos (Ojijo) ¥ Defining a Business System¥ The Business Systems (Contents of Operational Plan)PROFILE (WHO WE ARE)¥ Philosophy¥ Partners (Suppliers)¥ People (Staff)¥ Processes¥ Product¥ Profitability (Cs)¥ PlanOPERATIONAL PLAN (HOW WE WILL DO IT)¥ Location¥ Implementation Plan/matrix¥ Human Resource/Implementation Team¥ Risks & Risk Reduction Strategies¥ Financial Plan (Sources & Uses Of Funds)¥ Production Plan¥ Marketing Strategy¥ Sales Plan¥ Customer RetentionGROWTH & INVESTMENT PLAN¥ Three Types of Growth¥ Growth Plan¥ Investment Plan¥ Exit PlanSTEP 5: EXECUTE (SELL, SELL, SELL)ENTREPRENEURS EXECUTEEXECUTIVE SUMMARY/INVESTOR PITCH/SALES PITCH


Successful Saccos (Ojijo) ¥ Sales Pitch/Investor Pitch/Executive Summary¥ Contents Of An Executive Summary/Investor Pitch¥ Sample Executive Summary/Investor PitchRESOURCES FOR BUSINESS COACHESBUSINESS COACHING¥ Who Is A Business Coach?¥ Why Business Coaching?¥ Business Coaching Skills (PEEPS)FINANCIAL STATEMENTS¥ Financial Projections & Assumptions¥ Income Statement¥ Balance Sheet¥ Cash Flow Statement¥ Notes to Financial Statements¥ Management AccountsFINANCIAL RATIOS¥ Profitability Ratios¥ Efficiency /Activity /Asset Turnover Ratios¥ Liquidity Ratios¥ Solvency/Leverage RatiosTAXES & AUDIT¥ Taxes¥ Tax Planning¥ AuditingCOMPANY VALUATION¥ Defining Business Valuation¥ Industry Rules Of Thumb


Successful Saccos (Ojijo) ¥ Earnings Multiples (EBIDTA Multiples)

¥ Cashlow Valuation¥ Asset Valuation / Networth Valuation¥ Goodwill ValuationCOMPANY OPERATIONS¥ Six () Business Legal Entities/Business Associations¥ The Four Sources of Funds¥ Break Even Analysis¥ Sales Targets/Sales Forecast¥ Sales Presentation (Sales Language, Negotiation & Closing)¥ Branding Plan (Identity, Unique ValueProposition, Labeling, Packaging)¥ Business Performance Measurement (Ojijo s Performance Matrix)¥ Customer Acquisition Cost (CAC)FIVE (5) TYPES OF SPECIAL BUSINESSES¥ Import-Export¥ Family Business¥ Franchise¥ ECommerce¥ Network Marketin


Successful Saccos (Ojijo) Financial Literacy Curriculum

(extracted from Making My Child Financially Intelligent - Money Lessons by Age Group (from 3-13 yrs)

Most people do not know that there are 19 ways to acquire money, 17 ways to lose themoney, and 28 ways to multiply money. Thiscurriculum teaches the cooperative membershow to acquire, grow, and or lose money, so they can prepare, and take charge of their financial lives.

SESSION 1: FINANCIAL LITERACY FOR FINANCIAL FREEDOM

£ FINANCIAL FREEDOM!$ What Is Financial Freedom?$ The Need to be Rich! £ FINANCIAL LITERACY & FINANCIAL INTELLIGENCE!$ What Is Financial Literacy & Financial Intelligence?$ Why Financial Literacy & Intelligence?$ Scope of Financial Literacy & Intelligence?

SESSION 2: FINANCIAL LITERACY-MONEY ACQUISITION

£ THE OJIJO 9-WAYS OF ACQUIRING MONEYManagers' Guide to Acquire, Retain and Grow Membership, Savings and Assets Page |

186

Successful Saccos (Ojijo) $ Others (Gift/ Begging/ Borrowing/Inheritance/Marrying/Winning/ Stealing)$ Creating (Employment/Money Making Machine)£ MONEY MAKING MACHINES$ Business (Entrepreneurship)$ Investing

SESSION 3: FINANCIAL LITERACY-MONEY MANAGEMENT

£ BUDGETING MY MONEY (The Ojijo 10% Budget Plan)£ SAVING -2-INVEST MY MONEY £ INVESTING MY MONEY (3 Investment Vehicles & 9 Fundamental Principles of Investing)£ BORROWING & LENDING MONEY (Credit & Debt)£ TAXES & TAX PLANNING£ ESTATE PLANNING (Wills, Gifts, Trusts, Powers of Attorney & Co-ownership of Property)£ EMERGENCY PLANNING/INSURANCE (The Five (5) Emergencies of Life)¥ Life Insurance ¥ Health Insurance ¥ Retirement Planning (Pension Funds)¥ Children Education Plan¥ Property Insurance

SESSION 4: FINANCIAL LITERACY-MONEY USE

£ Destroy


Successful Saccos (Ojijo) £ Spending (the Ojijo 10% Budget Plan)£ Charity £ Investing £ Saving

How To Acquire Money 1. Gift 2. Begging 3. Borrowing 4. Inheritance 5. Good Marriage6. Let’s Get Married 7. Winning 8. Good Gamble 9. Stealing 10. Big Business 11. (Tax Credits12. Tax Deductions13. Income Restructuring14. Network Marketing15. Do Deals (Agency)16. Sell My Words- Writing17. Sell My Space18. Sell My Skills (Employment)19. Sell My Stuff

How To Lose Money/Risks 1. Giving 2. Bad Gamble 3. Rent & Utilities


Successful Saccos (Ojijo) 4. Entertainment5. Education 6. Food & Drinks 7. I Want A Divorce 8. Transport & Communication 9. Clothes & Personal Hygiene 10. Household Furniture, Fixtures &

Appliances 11. Tax Risk12. Theft13. Disease14. Education Tuition15. Death/No Life Insurance 16. Property Loss (Fire,

Destruction)17. Inflation Risk18. Bad Marriage


Successful Saccos (Ojijo) How To Invest/Grow Money (28)

1. Investment Option/Vehicles2. Education (Training/ Coaching/

Mentoring/ Consulting/ Counseling/ Instructing)

3. Shares4. Savings Accounts 5. Derivatives (Futures and Forwards)6. Fixed Deposits Accounts 7. Treasury Bonds/Money Lending8. Investment Companies (Unit Funds,

Trusts) 9. Investment Clubs 10. Cooperatives & Saccos11. Hard Commodities12. Medium Commodities 13. Soft Commodities 14. Lease/Rental (Agricultural,

Commercial, Residential, Industrial)15. Buy and Hold (Capital Gain)16. Software & ICT Patents17. Movable Property (Chairs,

Tables, Cars, etc)18. Insurance Bond/Endowment Plan/

Investment Bond19. Education Plan20. Life Plan21. Health Plan22. Property Insurance23. Pension Plan24. Distress Investments


Successful Saccos (Ojijo) 25. Private Placement26. Venture Capital Funds27. Business Angels28. Forex 29. Collectibles /Antiques

Investment Curriculum

(extracted from Invest - Ojijo's Guide to Financial Instruments & Alternative Investment Products)

Investing is the commitment of money or capital to purchase assets in order to gain profitable returns in form of interest, income, or appreciation of the value of the instrument. To invest is related to saving or deferring consumption, BUT with the aim of that money so saved and not consumed being usedto bring more money.

Investing is premised on the truism that whereas not all people can be entrepreneurs (some will be employees); whereas not all people can be career civilservants (some will be in civil society, and some will be in private sector); and whereas not all people can inherit money and live wealthy lifestyles (some are bornin poor families, and some lose their


Successful Saccos (Ojijo) money to become poor); ALL people can, andmust invest. Indeed, even those who steal,rob, corrupt or plunder, must invest, otherwise, soon the money fizzles out. Investment, hence, is a mandatory undertaking, and all peoples, of all walksof life, professions, religion, and familybackgrounds, must learn to invest; and must invest.

INTRODUCTION TO INVESTING¥ What Is Investing?¥ Why Bother Investing?¥ The Two Types of Investors¥ The Ojijo 3 Investment Vehicles¥ The Ojijo 9 (The Nine Fundamental Principles of Investing)CLASS 1 VEHICLES: PERSONAL DEVELOPMENTTHE SCOPE OF PERSONAL DEVELOPMENT

CLASS 2 INVESTMENT VEHICLES: FINANCIAL INSTRUMENTSINTRODUCTION TO FINANCIAL INSTRUMENTS & INVESTMENTS¥ What Is A Financial Instrument?¥ What is Financial Investment?¥ Professional Players (Individuals & Firms)FINANCIAL INVESTMENT PRODUCTSCASH¥ Bank Deposit Accounts¥ Money Market Account


Successful Saccos (Ojijo) STOCKS¥ Preferred Stock¥ Common StockBONDS¥ Municipal Bonds¥ Corporate Bond¥ Foreign Currency Bonds¥ Government Bonds/Treasuries¥ Assets Backed Securities & Mortgage-Backed Securities ABS/MBS¥ Money Market/Cash Market InstrumentsDERIVATIVES¥ Futures/Forwards¥ Options¥ SwapsCLASS 3 VEHICLES: ALTERNATIVE INVESTMENT VEHICLES¥ Disadvantages¥ Advantages

1.PROPERTY & REAL ESTATE INVESTMENTINTRODUCTION TO REAL ESTATE¥ Property vis-a-vis Real Estate¥ Non-Real Estate Investment¥ Real Estate Investment (Income-Producing and Non-Income-Producing Investments)¥ Real Estate MarketsREAL ESTATE INVESTMENT PRODUCTS¥ Real Estate Investment Groups¥ Rental¥ Real Estate Trading


Successful Saccos (Ojijo) ¥ Real Estate Investment Trusts (REITs)2.INSURANCE INVESTMENTINTRODUCTION TO INSURANCE¥ What is Insurance?¥ What is Insurance Investment?¥ Insurance Markets¥ How to Invest in InsuranceINSURANCE INVESTMENT PRODUCTS¥ Insurance Bond/Investment Bond¥ Endowment Plans¥ Unit Linked Insurance Plan (ULIP)¥ Child Education Plan¥ Value Added Term (VAT) Assurance¥ Personal Pension Plan¥ Annuity¥ Value Added Mortgage (VAM) Protection Assurance¥ Investment-Linked Insurance Plan /Life Insurance Investing3.FOREX INVESTMENTINTRODUCTION TO FOREX¥ What is Forex?¥ What is Forex Investment?¥ Why Forex Investing¥ Forex Markets¥ Forex Trading: How Forex Works!FOREX INVESTMENT PRODUCTS¥ Physical Delivery¥ Stocks¥ Currency Funds, ETFs & ETCs¥ Currency Futures


Successful Saccos (Ojijo) 4.COMMODITY INVESTMENTINTRODUCTION TO COMMODITY¥ What Is A Commodity?¥ What Is Commodity Investment?¥ Why Invest In Commodities?¥ How to Invest In Commodities! (From Farm to Fork)¥ Commodity Markets¥ Trading in CommoditiesCOMMODITY INVESTMENT PRODUCTSHARD COMMODITIES (INDUSTRIAL/BASE, RARE EARTH & PRECIOUS METALS)¥ Industrial/Base Metals (Copper, Nickel, Aluminum, Zinc, Lead, & Iron/Steel)¥ Rare-Earth Metals (Lanthanum, Cerium, Praseodymium, etc)¥ Precious Metals (gold, diamond, silver, platinum, & palladium)¥ Gold¥ Silver¥ Platinum (, ruthenium, rhodium, palladium, neodymium, iridium & osmium)¥ DiamondsMEDIUM COMMODITIES (ENERGY & WATER)¥ Electricity¥ Coal¥ Nuclear Energy¥ Water¥ Green (Renewable) Energy¥ Oil & GasSOFT COMMODITIES (PLANT & LIVESTOCK)


Successful Saccos (Ojijo) ¥ Introduction to Soft Commodities Investing¥ Physical Exposure¥ Commodity-Intensive Stocks¥ Investment Funds/Trusts¥ Futures Contracts5.PRIVATE EQUITYINTRODUCTION TO PRIVATE EQUITY¥ What is private equity?¥ What Is Private Equity Investment?¥ How They Work!¥ Why Invest in Private EquityPRIVATE EQUITY INVESTMENT PRODUCTS¥ Private Equity Fund¥ Business Angels¥ Venture Capital¥ Leveraged Buy Out¥ Reverse Takeover or Reverse Merger

6.COLLECTORS ITEMSINTRODUCTION TO COLLECTIBLES¥ What Is Collectibles?¥ How to Invest In CollectiblesCOLLECTIBLES INVESTMENT PRODUCTS¥ Art and Photography¥ Books and Manuscripts7.COLLECTIVE INVESTMENT SCHEMES (TRUSTS, FUNDS & CLUBS)INTRODUCTION TO COLLECTIVE INVESTMENT SCHEMES (CISS)¥ What is Collective Investment Scheme¥ Why Collective Investment Scheme


Successful Saccos (Ojijo) TYPES OF COLLECTIVE INVESTMENT SCHEMES¥ Self-Directed Collective Investment Schemes ( Investment Clubs)¥ Professionally Managed Investment Schemes/Investment Companies¥ Closed-End Investment Funds¥ Open-End Funds (Mutual Funds)EAST AFRICAN FINANCIAL MARKETS: AN OVERVIEWTHE EAST AFRICAN COMMUNITY (EAC)EA FINANCIAL MARKET¥ Regulators¥ Markets¥ Licensed Firms¥ Listed Companies¥ Trading¥ Stock Market Indices in East AfricaELEMENTARY ECONOMICS THEORIES & INSTITUTIONS¥ Introduction to Economics¥ Economic Development¥ Monetary/Financial Institutions¥ International Trade¥ Economic Theories¥ Competition & Market Structures¥ Economic Systems


Successful Saccos (Ojijo) Life Skills (Personal Branding, Life Coaching)

Curriculum

(extracted from Talanta - Ojijo's Guide to Identifying, Developing & Selling My Talent)

People want to be around those who are exceptional. People want to be exceptional. Even when they talk loudest about “getting the money” they are really most interested in doing a job skillfully so that others admire it and give them that inward glow of satisfaction which comes of achievement.

The life coach transforms the painter, thetruck driver, the professor, and the politician, to be the best they can be. People seek success. This success is 20% technical skills, and 80% people skills. People get employed and promoted to managers, directors, and CEOs, not becausethey have First Class Degrees or PhDs, butbecause they relate well with people, leadpeople, and manage people. They have people skills. Interpersonal skills, also known as people skills, or life skills, are related to the way you communicate andinteract with people. Interpersonal skillsfacilitate interaction and social (oral) communication. The life coach makes us


Successful Saccos (Ojijo) glow from inside when we know, “we are thebest in town.”

The coach focuses on personal development,using techniques drawn not only from coaching, but also mentoring, counseling, training, advising and consulting. The areas addressed include financial literacy, positive attitude, creative thinking, oral communication, team playing, self confidence, critical thinking, flexibility, time management, problem solving, leadership, volunteerism,active listening, negotiation, decision making, accepting criticism, networking, crisis control, conflict resolution, asking questions, self control, manners, social awareness, and non verbal communication. You will be able to use inquiry, reflection, requests and discussion to help clients identify personal and/or business and/or relationship goals, and develop action plans intended to achieve those goals. Thecourse takes 1 week, taught by a tutor, with three 3 lessons of 2 hours each.

In detail, the course covers:

FROM NOTHING TO TALENTWhat is Talent?


Successful Saccos (Ojijo) Why Do I Need To Identify & Develop My Talent?Sport TalentsArt TalentAcademic TalentTechnical TalentHow to Identify Talent!FROM TALENT TO SKILLS (JOB SKILLS)What Is A Skill?Skill Development (Job Skill)6 (six) Ways to Brand Myself (Develop my Skill)!Packaging My Skills! (Personal Branding)Marketing My Skills!Selling My SkillsFROM SKILLS TO CAREER (WHAT DO I LOVE?)What is Career?Career Self-AssessmentConnecting Careers to What I loveFROM CAREER TO CAREER (PEOPLE SKILLS)Why People Skills?NetworkingEffective Time ManagerTeam SpiritPositive Attitude!Leadership & Management SkillsWorking Smart!Learning the Art of Negotiation!Building My Relationships!Build My Emotional Intelligence (EQ)!Volunteering (Community Service)


Successful Saccos (Ojijo) Finding a Mentor; Becoming a Mentor!Effective Oral Communication - RulesElevator Pitch (Effective Self Introduction)The Eight () Ways To Get A Job?The Interview TipsThe Ojijo ( Frequently Asked Interview Questions)


Successful Saccos (Ojijo) Retirement Planning Curriculum

(extracted from Retire Happy-21 Questions to Plan A My Retirement)

Retirement! The word invokes wonderfulvisions of being on vacation allthe time. Sleeping late. Takingtrips. Finally having enough timeto indulge in whatever hobby orinterest catches our fancy. NO.IT DOES NOT. Retirement invokesfear, uncertainty, and manyquestions, mostly money related,but with hardly any answers.

This is the training content forhelping members of the sacco toplan for their retirementeffectively.

ABOUT RETIREMENT!

WHAT IS RETIREMENT?¥ Retirement Means Not Working!WHY SHOULD I RETIRE?¥ Retirement is about freedom!¥ He, Who Is Financially Free, Is Free IndeedWHAT CHALLENGES FACE RETIREES? (PLAN FOR THE 2B CHALLENG¥ Broke¥ Bored


Successful Saccos (Ojijo) WHEN SHOULD I RETIRE? (PLAN FOR EARLY RETIREMENT)¥ I Should Retire Early!¥ Factors Affecting Retirement Decisions

RETIREMENT PLANNING!

WHY SHOULD I PLAN?¥ If I Fail To Plan, I Am Planning To Fail¥ The Retirement Plan Revolves Around Money¥ Retirement Goal To Be S.M.A.R.T )¥ Retirement Plan MythsWHEN & HOW DO I START? (NOW; GETTING INFORMED, SIGN-UP & SA¥ I Start Here, Now, With What I Have!!¥ Step 1: Learn¥ Step 2: Sign-Up¥ Step 3: Save-2-InvestHOW RICH AM I? (PLAN A FINANCIAL HEALTH CHECK)¥ Determining My Net worth?¥ Pay Off All DebtsHOW MUCH WILL I NEED? (PLAN MY RETIREMENT BUDGET)¥ Step One: Determine How Much I Spend Now¥ Step Two: Subtract Expenses I Will not Have WhenI Retire¥ Step Three: Add Costs I Am Likely To Incur After Retirement (The Final Budget)WHERE WILL I STAY? (PLAN FOR RESIDENCE)¥ Remodeling


Successful Saccos (Ojijo) ¥ Downsize and Save¥ MoveHOW MUCH WILL I GET FROM BENEFITS? (PLAN FOR SOCIAL SECURITY)¥ What is Pension/Social Security?¥ Benefits of Retirement Plans¥ Types & Classifications of Pension Plans (The Four Pillars)¥ How Much Benefit Will I Collect, And When?¥ Distribution Options¥ Factors That Affect My BenefitsHOW DO I MAXIMISE MY RETIREMENT BENEFITS? (PLAN EXPENSE REDUCTION)¥ How Much is Enough?¥ Strategies to Limit ExpensesHOW WILL I FILL THE DIFFERENCE? (PLAN FOR PASSIVE INCOME)¥ Investment (The 3 Investment Vehicles & The 9 Investment Principles)¥ Business (The Ojijo Eight (8) Steps to Becoming anEntrepreneur)WHAT TAXES ARE THERE & HOW DO I REDUCE THEM (PLAN MY TAXES)¥ Withholding Tax¥ Income tax¥ Capital Gains Tax¥ Tax Planning (The Three Methods)¥ Tax Effects On Retirement BenefitsWHAT HAPPENS WHEN EMERGENCIES STRIKE? (PLAN FOR THE FOUR (4) EMERGENCIES)¥ Property Insurance (Asset Losses)


Successful Saccos (Ojijo) ¥ Compulsory Insurance¥ Personal Insurance (Life, Health, etc)¥ Life Insurance¥ Health Insurance¥ Single-Pay Insurance¥ Endowment Plans¥ Child Education Plan¥ Personal Pension Plan¥ Annuity¥ Emergency & Insurance fund

I AM NOW RETIRED!

WHAT WILL I DO WHEN I RETIRE? (33 ACTIVITIES FOR RETIREES)¥ Do I Need To Do Anything?¥ The List Of 33WHAT WILL HAPPEN TO MY PROPERTY WHEN I DIE? (PLAN MY ESTATE)¥ Will¥ Concurrent Estate/Co-Property Ownership


Successful Saccos (Ojijo) Support to Cooperativess(Unions, Consultants and

Donors)

Saccos have a lot of support from variousinstitutiosn and sectors of the conomy,including but not limited to financialservice providers, international nongovernmental organisations, foreigngovernments, consultants, sacco unions,the private sector, and the governmentprograms.

The key is for the management toefficiently leverage the free services,and other premium, but strategicallypriced services, for the growth of thesacco.

Donations

The three main sources of donations tosaccos come from internationalorganisations/foreign governments,government, and private sector.

International Non Governmental Organisations

International organisations, such asUSAID, DFID, and foreign governmentsare continually building the capacityof local institutions, and saccos, toincrease scale, reach, andsustainability.


Successful Saccos (Ojijo) Private Sector Support

The private sector, either in form offinancial services providers life banksand insurance companies, or othercompanies, are always offering funding,donations, and support to saccos aspart of corporate social investments.

Government Support

Through initiatives as agricultural fund,venture funding, and technical support,governments are constantly supportingsaccos, and sacco members, with cash,and equipments, to enhance theiroperations.


Successful Saccos (Ojijo) Cooperatives Unions

Sacco unions exist to buold the capacityof the sacco management through variousactivities invluding:

Savings Culture: Developing a collectivesavings culture has always been thepriority of national union of saccos,promoting what it believes to be asavings led initiative. From theCooperatives results to date, peoplewho have joined Cooperatives's adoptthe savings culture with vigour, andtheir personal assets grow. Nationalunion of saccos promotes collectivesavings groups and encourage them toformalise their member basedinitiatives into formalised financialintermediaries, encouraging broaderparticipation in the financial sectorthrough providing a range of financialservices to their members such as avariety of savings and loan products aswell as insurance products for theirmembers.

Minimal Operational Ratios: Once aCooperatives is operating, andaccepting deposit from its members, itis critical to ensure that membersfunds are safe and operating systems


Successful Saccos (Ojijo) are sound. national union of saccos hasset in place a set of minimaloperational ratios by which it monitorsCooperatives’s performance. Themonitoring takes place through a regimeof inspections, meetings with themanagement of the Cooperatives andfollow ups. Reporting to national unionof saccos plays a vital role in ourmonitoring.

Start Up Kit: A step-by-step guideenabling interested communities,through a core group, study circle or“champion” to go through 12 stepsrequired to start a Cooperatives. Theseinclude promotion, developing statutes,break-even analysis, holding theirformation meeting and registering theirCooperativess with the Registrar ofCooperatives and national union ofsaccos.

Training: Training the elected directorsis the second focus of our organisationand to that end a series of twodistance education packages – BoardOrientation Programme and BoardAdvanced Program – have been developed.In conjunction with the Centre forContinuing Education, University of theWestern Cape, a series of distanceeducation self learn modules were also


Successful Saccos (Ojijo) developed. These are to be completed bymembers or by boards in study circles.Topics covered include introduction toCooperativess, Cooperatives structures,Roles and responsibilities of theboard, Board/management relations,member relations, financial statements,financial analysis, financial goals andplanning, risk management and lending.

Bookkeeping and Computerisation: nationalunion of saccos offers to Cooperativessthe option of manual or computerisedaccounting software. The ComputerisedAccounting Package is a stand alonesystem, which provides Cooperativesswith a comprehensive member managementsystem as well as a back office generalledger to maintain their books ofaccount. These can be windows based, oropen source applications, or other suchenterprise systems..

Peer support: In each of the provinces,“provincial forums” have beenestablished whereby Cooperativess gettogether on a monthly basis to discussamongst themselves common issues andproblems. Peer support and studycircles provide a network for thevarious Cooperativess to find thetechnical assistance they require inthe running of their Cooperativess.


Successful Saccos (Ojijo) On going support: national union of saccos

provides all the above-mentionedservices to its member co-operativeswith no return (payment) for the firstyear of the Cooperativess operation.Once the Cooperatives starts generatingincome (giving out loans), nationalunion of saccos begins to invoice itsmember co-operatives.

Central Finance Facilityadministration: The CFF was establishedby Cooperativess to provide for theirshort-term liquidity needs. SACCOS canhave a facility where they invest orpool part of their funds, and which islent out to other members, with theunion of saccos administering the fundon their behalf. The CFF is a secondaryco-operative and as such a separatelegal entity from national union ofsaccos.

Value Added Products: National union ofsaccos can also source funeralinsurance and credit life insuranceproducts for its members. Bycentralising this, national union ofsaccos is able to negotiate favourablerates through its economies of scale.


Successful Saccos (Ojijo) Documents: Finally, the unions also

provide stationary to members,including ledger books, receipt books,passbooks, invoices, delivery notebooks, membership forms, by-laws, etc.


Successful Saccos (Ojijo) Consultancy Services/ Technical Training

Areas

The consultants, either as individuals, ororganisations, addresses the followingkey areas of the sacco development:

Front Office feasibility studies

Institutional analysis

Strategic planning

Development and review of organizational policyframework

Revision of Cooperatives By Laws

Job Evaluation

Preparation of staff terms & condition of services

Recruitment of staff

Monitoring and evaluation/Performancemeasurement

Cooperative Principles

Book-keeping (including computerised accountingand book keeping services)

Installation and or intergration of sacco softwares

Financial and Credit Consultancy (LiquidityManagement)

Management

Investment/Portfolio Management/LiquidityManagement


Successful Saccos (Ojijo) Member Development

Strategic Planning



Part V: CooperativesProducts

“The more, the merrier!”

-Anonymous


Successful Saccos (Ojijo) Introducing Sacco Products

Cooperativess serve members with savings,loan, transmission and insuranceproducts at rates generally better thanbanks. The various products thatCooperativess offer over the long termare most often member driven.

Typically a Cooperatives starting out willoffer members shares, savings andloans.

Other saccos offer members investmentopportunites, while others runbusinesses.In addition, some saccosoffer insurance services to theirmembers, or offer insurance loans topurchase insurance products formembers. Further, saccos offer personaldevelopment services to their members,including trainings on areas such ascareer development and family/personaldevelopment, as well as training onfinancial literacy.


Successful Saccos (Ojijo) Shares

Share is the capital of the Cooperativessociety and an asset to members.

Every potential member must purchase aminimum share as determined by theCooperatives making each member anowner of the co-operative. Once theshare has been fully paid up, all othercontributions will go towards savings.

Share is a risk protecting capital thatcollected from members in proportion tocompulsory savings. Since share is riskprotecting capital it should be savedin a bank.

Every potential member must purchase aminimum share as determined by theSACCO making each member an owner ofthe cooperative. Once the share hasbeen fully paid up, all othercontributions will go towards savings.

If a member wants to with draw from theCooperatives member ship he/she has theright to take it after 12 month orafter Audit. This is to protect theCooperatives from any loss and to givethe member the chance of havingdividend for the period he stays as amember with in the society.


Successful Saccos (Ojijo) Therefore, every member should buy shares

based on the amount of compulsorysaving he/she deposits in theCooperatives as it indicated in thefollowing table.

Members they should decide to save themaximum amount, as much as they can.This decision will also have directrelation ship with the chance ofgetting the maximum amount of loan fromtheir Cooperatives society. That is, ifone member has the willing to save27,000 per month in both the compulsorySaving and share, he/she will have thechance to accumulate 252,000 inCompulsory Saving and 72,000 in sharesat the end of the year. If theCooperatives loan policy qualifiesmembers for loan of two folds of whatthey have in their Compulsory Saving,He/she will has the chance to get504,000 loans at the end of the year.

On the other hand, if one member has thewilling to save 36,000 per month inboth the compulsory Saving and share,He/she will have the chance toaccumulate 336,000 in Compulsory Savingand 96,000 in shares at the end of theyear. If the Cooperatives loan policyqualifies members for loan of two foldsof what they have in their Compulsory


Successful Saccos (Ojijo) Saving, He/she will has the chance toget 672,000 loans at the end of theyear.

If one member has the willing to save45,000 per month in both the compulsorySaving and share, he/she will have thechance to accumulate 420,000 inCompulsory Saving and 120,000 in sharesat the end of the year. If theCooperatives loan policy qualifiesmembers for loan of two folds of whatthey have in their Compulsory Saving,He/she will has the chance to get840,000 loans at the end of the year.

There fore, members are highly advised tosave to their maximum capacity as muchas they can.


Successful Saccos (Ojijo) Savings

Saving means with holding some thingvaluable to day for future use- holdingsomething back from today’sconsumption. Saving is a sacrifice,because it teaches people to give uptoday’s expenses and to with holdvaluable resource for future possibleout coming instead of consumingimmediately.

A member’s monthly contribution is usuallysplit between various types of savingsaccounts. Savings unlike shares arewithdrawable on demand. EachCooperatives determines amongst itsmembers what the minimum savings permember will be.

A member’s monthly contribution is usuallysplit between various types of savingsaccounts. Savings unlike shares arewithdrawn on demand. Each SACCOdetermines amongst its members what theminimum savings per member will be.

The savings product offering includes thenon withdrawable Cooperatives deposits,withdrawable savings and xed depositfiaccounts all suited to t your savingfineeds.


Successful Saccos (Ojijo) Saving teaches people to think on starting

a new business or expanding existingonce. Saving teaches people toanticipating and preparing for upcoming events and expenditures (Schoolfees, Marriage, old age, retirementsetc). Therefore, saving is everything,which can empower human being to havebargaining power, makes him selfsecured and person with fullconfidence.

In the Cooperatives society, saving is anasset to members, and a liability tothe Cooperatives society. In theCooperatives society, saving iscollected from member to on lend tomembers. Saving is sources of income tothe Cooperatives society because itlends to members with interest. Thisloan interest is the main source ofincome of the Cooperatives society.

For a Cooperatives society it is a must tohave a regular Saving flow frommembers, to efficiently serve financialservices to members.

In Cooperatives societies we have threekinds of Savings:

1. Compulsory Savings 2. Voluntary Savings


Successful Saccos (Ojijo) 3. Contract Savings (Time Deposits)

Compulsory Savings

Compulsory saving is a saving that amember forced to save on regular basis;it is a membership saving i.e. must besaved on monthly basis. Thiscompulsory saving is collected to onlend to members. If members fail tosave on time they will get penalizedbased on the saving policy of thesociety. Unless the member quits frommembership, he should save on regularbasis. If a member wants to with drawfrom the Cooperatives society, he hasthe right to take this compulsorysaving with one-mouth priors notes tothe Board of Directors. The societywill provide interest for this savings.

Voluntary /Discretionary Savings

If the potential Cooperatives members arefarmers and only receive income once ortwice a year, how can they save theappropriate amount at the appropriatetime? This kind of saving is veryimportant to farmers since they don'thave regular income they can save asvoluntary saving during harvest time,


Successful Saccos (Ojijo) and transfer monthly to theircompulsory saving accounts. Voluntarysavings are deposited and withdrawn asthe member sees fit. Farmers, and otherindividuals, can save the full amountfor the coming year's compulsorysavings in advance with theCooperatives by depositing 12 monthsworth of saving in a voluntary account.Following that, each month on theappropriate day the member will come tothe Cooperatives to withdraw the amountof one month's compulsory saving fromthe voluntary saving -account anddeposit it in the compulsory savingaccount. This maintains the fundamentalfunction of the Cooperatives and allowsindividuals with seasonal incomes to bemembers. Technically speaking, this isreferred to as saving up. This ensuresregular flow of cash to theCooperatives society and promotesmembers participation. This kind ofsaving can be withdrawn at any timewhen the owner needs it. TheCooperatives society may or may notprovide saving interest for thisvoluntary savings.

The most common savings account hereinclude holiday savings, vacationsavings, and housing savings.


Successful Saccos (Ojijo) Junior/Childrens Account

Members are encouraged to open thisaccount for their children. It helpsinstill a saving culture for kids whenthey are still young. Usually comeswith free bankers hceques payabledirecly to the child’s school. It isfor children under 18 years of age, andprovides access to loans for schoolfees.

Salary Account

Minimum Operating balance - XXX. 1,000.00Salary Processing Fee - XXX. 200.00Withdrawal Charges- XXX. 50.00 NoInterest and Bank charges.

School Fees Savings Account

These is for the purposes of savings forschool tuition fees. There is minimumbalance, and interest on savings anobea given deposit figure. There isprovision for termly withdrawals pereducation program.

Savings Accounts

These are ordinary savings account, withaccessibility at any time, just likebanks avigns accounts. They havemaximum withdrawal per day.




Successful Saccos (Ojijo) Contract Savings (Time Deposits) Or Fixed

Deposit

This kind of saving will not be invitedunless the Cooperatives societyacquires good experience in managingtheir savings and loans properly. Thiskind of saving will invited in thefuture when the Cooperatives society isin a good capacity and position ofmanaging its savings and loans properlyand if there is a shortage of feasiblefinancial demand by members. This kindof saving can be collected from membersand none members but the amount, periodof collection and interest for thisSaving should be decided by the GeneralAssembly of members.

Time deposit brings the opportunity ofhigh interest rate on savings, whilealso providing the society with fundsto provide to members who may want tiowithdraw their savings. Also refered toas Non Withdrawable Deposit, thisscheme allows one to use the savings tosecure and guarantee loans. Interest ispaid annually. There is a minimummonthly contribution. This scheme alsoallows one to use the savings to secureand guarantee loans. There is


Successful Saccos (Ojijo) requirement for a minimum deposit forinterest earning purposes.

Members with liquid cash which they do notintend to use in the near future orhave money for a long term project areencouraged to fix it in this account toearn an attractive interest instead ofkeeping it idle.


Successful Saccos (Ojijo) Loans

Our loan products are designed to meetyour speci c needs at every step offiyour professional and personal journeyas a medic. The Cooperatives Ltd offersa wide range of products under thegeneral loans. These include: thedevelopment loan, swift developmentloan, emergency loan, asset nancingfiloan, school fees loan, intern loan andinsurance loan.

Members are encouraged to save towardloans. Loans are ratio based onmember’s savings and shares.Individuals who have established theircredit worthiness through regularsavings and are able to show an abilityto repay a loan can earn the privilegeof borrowing these savings in the formof a loan. Some loans are made forproductive, income generatingactivities, a business idea or toward ahouse; other loans are made forprovident purposes such as school fees,funerals and weddings.

Members are encouraged to save towardloans. Loans are ratio based onmember’s savings and shares.Individuals who have established theircredit worthiness through regular


Successful Saccos (Ojijo) savings and are able to show ability torepay a loan can earn the privilege ofborrowing these savings in the form ofa loan. Some loans are made forproductive, income generatingactivities, a business idea; otherloans are made for provident purposessuch as schools fees, funerals andweddings.

The types of loans include:¯ Quick/Emergency Loans¯ Insurance Loans¯ Education Loan/Personal Development Loan¯ Refinancing Loan ¯ Salary Advance Loan


Successful Saccos (Ojijo) Quick/Emergency Loans

Emergency loans are short-term quick loansavailable to members to meet unforeseencircumstances, not budgeted for. Thesecan be for:

Instant Loan:

Obtainable within 48 hrs, payable within 6months at an interest of 2% per month,no guarantors required.

Supa Instant:

Obtainable within 48hrs, payable within 1year at an interest of 3% per month, noguarantors required.

Over Night Loans:

These are loans which are given out overnight, for one, two or three days, andare hence obtainable immediately, orwithin 12 hours, and are payable within1 day to one week. They earn a dailyinterest of 0.5% to 1%.


Successful Saccos (Ojijo) Insurance Loans

Through this product, the Cooperativesoffers full nancing to a member whofiwishes to take up one or severalinsurance covers for themselves ortheir family but is limited by theavailability of cash for the premiumnancing. No guarantors are requiredfifor this loan. This is a very popularproduct with members, and Cooperativessusually nominate, once generatingincome, to apply for such insurance.

These can be for: Vehicle Insurance Health Insurance Life Insurance Education Plan Property Insurance (Car, House, Equipments, etc)


Successful Saccos (Ojijo) Education Loan/Personal Development Loan

The loan is another great example of aloan service customized to enable youto enhance your educational skills,start-up and/or revamp your ownbusiness practice.

This includes:Professional Development Loan

The product provides a financialassistance for members to durther theireducation.

School Fees Loan

Our school fees loan is available tomembers wishing to aquire nancing tofipay their children school fees.

No guarantors are needed to aquire thisloan.The loan is repaid over a period of 12months at a monthly interest rate of 1%on reducing balance.


Successful Saccos (Ojijo) Development Loan (Business & Investment

Loan)

This loan is meant to enable members togrow in their wealth, and becomefinancial secure and independent. Thereare two types, namely:

Business Loan

Is customized to enable the members tostart-up and/or revamp their ownbusiness practice. Top up and refinancefacility is available for this loan formembers who have paid at least 1/3 ofthe initial loan.

Asset Financing

The Cooperatives is keen to support thosedoctors that are seeking to acquirehealth care assets. Through this loan,the Cooperatives nances two-thirds offithe asset value while the member raisesthe difference (one third).

The asset financing loan is payable over60 months during which it remains thecustodian of the asset documents oftitle.


Successful Saccos (Ojijo) Special Loan Products

There are other loan products specaiilydevelop dfor categories of members who areprequalified due to their status,membership, or unique status.

The two most common special loans are:Refinancing Loan

Top up facility for members with othertype of Loans, 5% one off charge islevied on remaining amount .

Salary Advance Loan

Available to members whose salaries areprocessed through their FOSA SalaryAccounts. Advance repayable in 3 MonthsInterest 5% flat rate, paid up front.Three months certified.

Home Improvement Loan

This includes such thigns as purchasing agas cooker, chairs, carpets, homefurnishing items, and such other effetsthat the sacco can get for members atreduced prices due to the power ofnumbers.


Successful Saccos (Ojijo) Insurance

The Cooperatives can also provide aninsurance program for its members, tocover the main emergencies faced bymembers, namely, life, health,education, property, andretirement/pension scheme.

Burial Scheme

This product allows members to contributeto a fund, which is invested, and whensomeone facesa burial of a familymember (father, mother, son, ordaughter), then they can withdraw fromthis fund, at no interest fee. This isessentially a fixed account.

Group Life Cover

The sacco can also provide for group lifecover scheme, where members contributea given amount, and are provided withgroup cover for life. This can be terminsurance, maturing at 10 year,s 15years, or 30 years.

Provident Fund/Pension Scheme

The sacco can also create a product forthe members who are interested incushioning their retirement, byproviding an investment vehicle withmonthly contributions, invested by the


Successful Saccos (Ojijo) sacco, or by a fund manager, to realisegains for the members, and availableupon retirement.

Group Health Scheme

For members who do not have medical cover,the sacco can provide a group savingscheme for a group medical cover.


Successful Saccos (Ojijo) Businesses

Depending on the natue, membership, andoperations of a sacoo, it can operatespecial business or investment projectsas suits its members, as below:

Line Business

Cooperativess which are professionalmembership based, like doctors,lawyers, accountants, or farmers, canusually decide to own a business intheir area, for instance, a farm oragro processing unit; while doctors canown a clinic, pharmarcy, hospital, andteachers can own a school, or schooltransport business, etc.

Business with the Mother Institution

A sacco which is hosted by an institution,that is, the mother institution, withmany employees working in one place, orneeding a given service, likegovernment ministries, or schools, canalso do business with the motherinstitution.

For instance, a sacco of teachers canprovide buses, groceries, grains, orbakery services, to the school studentsand teachers.


Successful Saccos (Ojijo) A sacco situated in a ministry or

government parastatal, or hugeindustrial complex can provide food,drinks, or other such restaurantservices to the members so thatmembers can eat, while adding to theirwealth through the profits therestaurant makes.

Financail Services (Forex & Money Transfer)

Saccos which are operating in the forexenvironment, for instance, saccos ofbankers, or saccos of foreign serviceprofessionals and employees of statedepartments, can decide to operate aforex bureau. The sacco can also opt toprovide money transfer services to itsmembers, and members of the public,through both local money transferservices like mobile money as well asinternational money transfer serviceslike western union, money gram, expressmoney, dahabshil, etc.


Successful Saccos (Ojijo) Value Added Products

Cooperativess products are membershipdriven. Cooperativess know localconditions and it is for theCooperatives leadership to map out theprogress and developmental plans of theCooperatives to meet member’s demandsand needs.

A well established Cooperatives wouldbegin to look at developing productsthat a conventional bank has to offerincluding:

Mobile Banking services Sale of Banker’s cheque EFTs Standing Orders Salary Processing MOBILE MONEY Services Bank Agents Salary processing. Standing Order services - internal and external. Bankers Cheque transaction, that is, selling of

cheques, etc. ATM Visa services. ATM debit Cards Stop order facilities Automated bill payments




Successful Saccos (Ojijo) Investments

Saccos as Investment Vehicles

The other essential function of aCooperatives Society is investment.That is to allow and encourage membersto develop formal business andinvestment, (the Cooperatives Societyitself) by placing their capital atrisk and to receive a return (profit)on that investment.

Specifically the investment function of aCooperatives Society is:

¯ Allow and encourage members to develop formalbusiness and investment, facilitate them withsustainable loan services;

¯ Encourage members to buy shares in theappropriate amounts by leveraging with theirsavings at the appropriate times;

¯ Using those shares guarantee the savings andloans of the members, by providing the correctamount of liquidity in the Cooperatives Society tomanage risk of withdrawal or late repayment;

¯ Retaining some profit from interest earned on thelending operation to pay dividend to themembers on the basis of the shares owned;


Successful Saccos (Ojijo) ¯ Redistribute the profits to the members as

dividend on the basis of shares owned.

Therefore, to be successful andsustainable the Cooperatives Societyshould function similar to banks as amarket for money in a group sharing acommon bond. Cooperatives Society is afinancial institution that purely dealswith mobilizing money from members assavings, shares and providing easyaccessible loans to members on time.

Since Cooperatives Society deals with cash(the most liquid asset) that can beeasily lost, it needs high qualitymanagement and special attention tominimize the risk. Therefore, tominimize the risk the function of theCooperatives Society should not bemixed with other functions.

A sacco can invest in a wide variety ofinvestments, as listed in Ojijo’s 3Investment Vehicles, as below:

The Two Types of Investors

There are two broad types of investing and investors:There are two basic types and broadestforms of investing. Investors can be loanersor owners. It is either an equity investmentor a debt investment.



€ Loaners invest in debt instruments. Adebt investment is where I loan mymoney to someone else for an amountcalled interest. These may take theform of a bank savings account, acertificate of deposit, Treasury notesor corporate bonds among others. A debtinvestment is unique in that theborrower is obligated to the debtor topay the money back. Debt investmentsgive me a lower return than equityinvestments.

€ Owners invest in equity instruments. Anequity investment is where I loan mymoney to someone else for a share ofthe profits he receives from the way heuses the money. These investmentsinvolve ownership of all or part oftangible or intangible assets such asreal estate, intellectual property orstock in a company. An equityinvestment differs from a debtinvestment in that there is noobligation on the part of the debtor topay me back. Debt investments are alsolower in terms of risk than similarequity investments.




Successful Saccos (Ojijo) What Is Investing?

To invest is to acquire an asset.

(Something that has value that will produce income orappreciate in value and when liquidated, will realizemore than was spent in acquiring it).

Investing is the commitment of money orcapital to purchase assets in order togain profitable returns in form ofinterest, income, or appreciation ofthe value of the instrument. To investis related to saving or deferringconsumption, BUT with the aim of thatmoney so saved and not consumed beingused to bring more money.

Investing is premised on the truism thatwhereas not all people can beentrepreneurs (some will be employees);whereas not all people can be careercivil servants (some will be in civilsociety, and some will be in privatesector); and whereas not all people caninherit money and live wealthylifestyles (some are born in poorfamilies, and some lose their money tobecome poor); ALL people can, and mustinvest. Indeed, even those who steal,rob, corrupt or plunder, must invest,


Successful Saccos (Ojijo) otherwise, soon the money fizzles out.Investment, hence, is a mandatoryundertaking, and all peoples, of allwalks of life, professions, religion,and family backgrounds, must learn toinvest; and must invest.

Robert Kiyosaki taught, ‘to invest is to mind myown business.’ Investing is indeed abusiness. In the summation of TheIntelligent Investor, Benjamin Graham wrote,“Investing is most intelligent when it is mostbusinesslike.” Those are, says Buffett, “thenine most important words ever written aboutinvesting.”

For Buffett, the activities of a commonstock holder and a business owner areintimately connected. Both should lookat ownership of a business in the sameway. “I am a better investor because I am abusinessman,” Buffett says, “and a betterbusinessman because I am an investor.”

Investing Is Not Gambling

Investing is not gambling. Gambling isputting money at risk by betting on anuncertain outcome with the hope that Imight win money. True investing doesnot happen without some action on my


Successful Saccos (Ojijo) part. A ‘real’ investor does not simplythrow his or her money at any randominvestment; to be a real investor Imust perform thorough analysis andcommit capital only when there is areasonable expectation of profit.Investing is confusing because it is avery large subject. Yes, there still isrisk, and there are no guarantees, butinvesting is more than simply hopingLady Luck is on my side. Investing is not aget-rich-quick scheme.


Successful Saccos (Ojijo) Why Bother Investing?

Investing Makes Me Rich

People invest because they want toincrease their personal freedom, senseof security and ability to afford thethings they want in life. Investingallows me to take the money I havesaved, and grow it, by creating my ownfinancial portfolio. Investing is aboutmaking my money work for me. RobertKiyosaki wrote, ‘The philosophy of the rich andthe poor is this: the rich invest their money andspend what is left. The poor spend their money andinvest what is left.’

When people invest, they spare money tooffset the effect of inflation on idlecash as well as to benefit from anadditional source of income and capitalappreciation. Everybody wants more money.Investing allows me to take the money Ihave saved, and grow it, by creating myown financial portfolio. The only wayto be rich is to invest and haveassets. King Solomon knew it severalmillennia ago when he wrote, ‘the richman’s strength is in his city’. The rich man’scity is his assets. Robert Kiyosakisays, “My poor dad always said, “Go to school and


Successful Saccos (Ojijo) get good grades so you can find a safe, secure jobwith benefits.” Kiyosaki’s Rich Dad’s advicewas, “If you want to be rich, you need to be abusiness owner and an investor.”

An asset is any item, of value, usuallypurchased, or equivalently a deposit ismade in a bank, in hopes of getting afuture return or interest from it. Anasset is expected to give returnswithout any work on the asset. The richdo not work for money. The rich work tobuild assets that will make money workfor them. Riches protect the rich frompestilence of poverty. All rich peoplehave assets. Whether they inherited it,married into it, won it, borrowed it, created it, or(God forbid) stole it, they all haveassets. Assets leverage time andeffort, so that money comes passively,even when the investor is not working.

Investing Makes My Money Work For Me!

To become rich and financially secure, Ineed to mind my own business; I need toinvest. I need to have my own business.What we ultimately invest in is abusiness. Rich Dad’s rule was

“My business buys my investments. Most people are notrich because they invest as individuals and not asowners of businesses.”



Without my own business, I have nofinancial foundation. And withoutfinancial foundation, I will be poor,broke and miserable. Investing is the scienceof money making money. As BenjaminFranklin rightly noted, ‘Money makesMoney, and the Money that Money makes, makesmore Money.’ When I invest, I getpersonal, and financial freedom, thenlike Warren Buffet said, ‘I get to do what Ilike to do every single day of the year.’

Investing is about making my money work for me.Investing means putting my money towork for me. Essentially, it is adifferent way to think about how tomake money. Growing up, most of us weretaught that we can earn an income onlyby getting a job and working. And thatis exactly what most of us do; butthere is one big problem with this: ifwe want more money, we have to workmore hours using more effort.However, there is a limit to how manyhours a day we can work, not to mentionthe fact that having a bunch of moneyis no fun if we do not have the leisuretime to enjoy it. As Robert ToruKiyosaki, the author of the bestselling, Rich Dad, Poor Dad, wrote, ‘don’t


Successful Saccos (Ojijo) work for money, let money work for you.’ Ittakes money to make money, but the moneyneed not be mine; and shouldn’t. Indeed, whenI invest, I earn what Kiyosaki calls,20 percent money, which is money fromcapital gains or appreciation ofstocks, bonds, and other assets likereal estate. I am reminded by GeorgeClason in his classical masterpiece,The Richest Man In Babylon, ‘make gold be yourslave’.

Investing Leverages Time and Effort

Since I cannot create a duplicate ofmyself to increase my working time andeffort; I need to send an extension ofmyself - my money (and hence time andeffort) - to work for me. This iscalled investing, ‘putting my money to workfor me’. ’That way, while I am putting inhours for my employer, or even mowingmy lawn, sleeping, reading the paper orsocializing with friends, I am becomingrich because my money is making moremoney for me elsewhere. Quite simply,making my money work for me maximizesmy earning potential whether or not Ireceive a raise, decide to workovertime or look for a higher-payingjob. This leverages my time andeffort, giving me more hours and effortI would have had alone. And John D.


Successful Saccos (Ojijo) Rockefeller agrees when he asked thus:‘Do you know the only thing that gives me pleasure?It’s to see my dividends coming in.’ Said richdad. “Investing is simply a plan, made up offormulas and strategies, a system for gettingrich . . .almost guaranteed.”

Taking Control of My Finances

Taking control of my personal financeswill take work, and, yes, there will bea learning curve. But the rewards willfar outweigh the required effort.Contrary to popular belief, I do nothave to allow banks, bosses orinvestment professionals to push mymoney in directions that I do notunderstand. After all, no one is in abetter position than I am to know whatis best for me and my money.

Investing is one of the major 'missing pieces'in many financial education programs. Iam taught about saving but not aboutinvesting in assets that will producepassive income for me. Saving topurchase an item I really want is notas difficult as it may seem at first ifI use a system, and it feels great whenI do reach my savings goals. I willalways have money for continuededucation. I am less likely to develop


Successful Saccos (Ojijo) the habit of feeling guilty forspending my own money; an emotion manyadults suffer from.

However, I will remind myself that it isnot a competition. As Rich Dad said,

“Investing is not a race. You are not in competition withanyone else. People who compete usually have hugeups and downs in their financial life. You are not hereto try to finish first. All you need to do to make moremoney is simply focus on becoming a better investor.If you focus on improving your experience andeducation as an investor, you will gain tremendouswealth. If all you want to do is to get rich quickly, orhave more money than others, then the chances areyou will be the big loser. It’s OK to compare andcompete a little, but the real objective of this processis for you to become a better and more educatedinvestor. Anything other than that is foolish andrisky.”


Successful Saccos (Ojijo) Sacco Investments: The Ojijo 3 Investment

Vehicles

Investment is the science of money making money.To invest, I exchange the money I havealready acquired for an asset, and thenI let the asset increase in value,either through value addition, orholding it for a period of time. I havevarious options of making my money tomake more money for me. These optionsare referred to as ‘investment vehicles,’ or‘investment products’, which is just anotherway of saying ‘a way to invest.’ Each ofthese investments is something Ipurchase or place my money into inreturn for the earnings (capital gains,dividends or interest) that isgenerated over time and paid back tome. There are many differentinvestment products, or vehicles,because there are many different peoplewith many different needs. Investing isa plan to get me there. And one is notnecessarily better than the other.These vehicles are grouped according tothe type of asset invested in, andOjijo, in his classical and all timebest-seller, Making My Child FinanciallyIntelligent: Money Lessons by Age Group (from 3-13yrs), classifies the investment vehicles


Successful Saccos (Ojijo) into three broad categories, namely,Personal Branding or Self-Help; Traditional Assetsor Financial Instruments; and Alternative Assets orAlternative Investment Products:

1. Personal Branding or Self-Help, which is thegreatest form of investment, involvesengaging in activities which enable meto identify and develop my talents andskills to realize my potential; and setgoals and achieve my dreams andaspirations so as to enhance thequality of my life and contribute to mycommunity. In addition to otherexcellent books written on the subject,I can also read Ojijo’s The Gift of E11evenMoves to Make Me Wealthy, which teaches methe eleven areas that I need to developto enjoy the complete and wealthylifestyle, namely health, relationships,riches/money, career, adventure, happiness, dreams& goals, positive attitude, controlling the day,helping people and being peaceful). I can alsoread Talanta: Ojijo’s Guide to Identify, Develop andCommercialize My Talent & Career Skills, which haspractical exercises to help meidentify, develop and commercialize mytalents and skills, through training,mentoring, coaching, consulting, instructing and orcounseling.


Successful Saccos (Ojijo) 2. Traditional Assets or Financial Instruments, also

called securities, are a real (hard copy) orvirtual (electronic) documentsrepresenting a legal agreement/contractinvolving a monetary value. They canindicate that someone owes me specificpre-agreed money amount/interest (DebtInstruments/Bonds and Bank Deposit Accounts-termand fixed deposits); or that I own part ofsome business process (EquityInstruments/Shares); or a cash investment,whose values are determined directly bythe market (Bank Savings Accounts). Further,financial instruments can be securitieswhose value is determined byfluctuations in the underlying assetand are used for speculation or riskmanagement, also refered to asderivatives. (Options, Futures, Forwards andSwaps). A practical book to read forfurther knowledge in investing infinancial instruments is Invest: Ojijo’s Guideto Financial Instruments & Alternative InvestmentProducts.

3. Alternative Assets are assets other thantraditional investments (stocks, bonds orcash or their derivatives). Alternativeassets include Property/Fixed Assets, Insurance,Forex, Private Equity, Collective Investment Schemes,Collectibles and Commodities. A practical book


Successful Saccos (Ojijo) to read for further knowledge oninvesting in alternative assets isInvest: Ojijo’s Guide to Financial Instruments &Alternative Investment Products. In detail theyare;

$ Collective Investment Scheme (CIS) is a pool ofmoney from various investors forinvesting in various assets. It can bea professional scheme, managed by a fundmanager, group, bank, or company,called Investment Company. Suchprofessionally managed schemes caneither be closed-ended (limited number ofshares issued once) or open ended/mutualfunds (open for new investors to buy shares).Collective Investment Schemes can alsobe self-managed by the members. Such arecalled SACCOs, which allow members toalso learn and network. A practical bookto read for further knowledge informing, joining and running an SACCOis Making Money Together: Ojijo’s InvestmentsClubs Manual;

$ Property/Fixed Assets includes long-termtangible/physical assets (such asmachinery, land, buildings, equipments, vehicles),or intangible/technological assets, canbe a tool, technique, craft, system or


Successful Saccos (Ojijo) method of organization in order tosolve a problem or serve some purpose.Assets in software/ computerapplication form are called InformationTechnology/IT Assets (commonly referred toas software);

$ Collectibles are objects regarded as beingof value or interest, either becausethey are old/antiques, or they arespecially manufactured to becollectibles, including art, antiques,coins and stamps;

$ Commodities are naturallyoccurring/raw/primary products, and aredivided into three (3) categories ofhard, medium and soft commodities. SoftCommodities include (plant- soya, grains,vegetables, etc & livestock- pork, beef, chicken,etc); Medium Commodities (energy- oil, gas,electricity, etc & water); and Hard Commodities(base/industrial metals- copper, aluminum,iron, etc & precious minerals- gold, silver,diamond, uranium, palladium and platinum);

$ Private Equity involves injecting workingcapital to start-up or operatingprivate companies; and owning


Successful Saccos (Ojijo) equity/shares for a period untilreturns are collected. It is done byventure capital firms, private equityfunds or angel investors throughleveraged buyouts, venture capital,growth capital, distressed investmentsand/or mezzanine capital;

$ Insurance Assets are insurance productsthat have both a protection as well as aninvestment component such as endowmentplans (education), pension plans andannuities (retirement), investmentbonds/insurance bonds and endowment plans (lifeinsurance); and

$ Forex Investments involving the purchaseand sale of currencies against eachother. The foreign exchange market,which is usually known as ‘forex’ or‘FX,’ is the largest financial marketin the world.

It does not matter which method Ichoose for investing my money, the goalis always to put my money to work so itearns me an additional profit. Eventhough this is a simple idea; it is themost important concept for me tounderstand. Too many so-called


Successful Saccos (Ojijo) investors get attached to oneinvestment product and one investmentprocedure. For example, a person mayinvest only in stocks or a person mayinvest only in real estate. The personbecomes attached to the vehicle andthen fails to see all the otherinvestment vehicles and proceduresavailable. Kiyosaki said,

“A true investor does not become attached to thevehicles or the procedures. A true investor has a planand has multiple options as to investment vehiclesand procedures.”


Successful Saccos (Ojijo) Front Office Savings Activity (FOSA)

What Is FOSA?

Front Office Services Activity (FOSA) isa group of financial services similarto those offered by Commercial Banks.

FOSA enables Cooperatives Members to keeptheir Savings, Transfer Cash, MakePayments to third parties withouthaving to carry cash. Simply walk tothe Cooperatives, give instructions andyour payments are affected.

FOSA operations ride on the Cooperativescore Values, Vision, Mission Statementand Objectives.

FOSAs have evolved over the years and areas competitive as banks with provisionof banking and related services to it’smembership.

All active members of Cooperatives willautomatically qualify to patronizeservices of FOSA.

FOSA is owned by members to serve themembers.

Revenue generated from FOSA activity isshared by all members through paymentof annual dividends.


Successful Saccos (Ojijo) Why FOSA?

Enjoy affordable banking services at yourconvenience

Deal with Cooperatives which you are already amember and is well known

Obtain short-term and long-term savings/creditsfacilities with minimal conditions

Instant cash payments of Sacco loans, dividends,rebate and refunds

Any levies and charges will be paid back to you asdividend and rebate

How FOSA OperatesWhat is the difference between FOSA and BOSA

savings?

FOSA savings can be withdrawn over the counter(this is a banking facility).BOSA savings are monthlyCooperatives remittance and can only be withdrawnupon retiring from Sacco membership.

FOSA savings can be used to offset BOSA loans orboost BOSA savings. BOSA savings cannot be used tooffset loans unless upon default.

FOSA is an innovative product to enhance themembers’ convenience and boost the Cooperatives’sincome.

Who qualifies to open an Account in FOSA?

All Cooperatives members, their genuinespouses and children.


Successful Saccos (Ojijo) How safe is FOSA deposits?

FOSA deposits are regulated and monitoredby The Sacco Societies RegulatoryAuthority (SASRA) which operates in thesame way as the Central Bank of Kenya(CBK) with the commercial banks. Wesubmit monthly reports and are auditedfrequently to ensure compliance andsafety of deposits.

What are Sources of Reveneu for FOSA?

FOSA levies minimal charges on services itoffers e.g. savings, salary advances,credit facilities, sale of banker’scheques and other auxiliary services.Revenues generated from FOSA areploughed back to the Cooperatives andshared by all members through paymentof dividends and rebates to members.


Successful Saccos (Ojijo) FOSA Services

Savings Account

These have a minimum balance, a minimumdeposit that attract interest, anannualinterest, and a withdrawal fee.

Bankers Cheques.

FOSA provides bankers cheques to customersat a cost.

Relationship between FOSA and BOSA

Active FOSA Account holders will berequired to place a monthly standingorder from their FOSA Accounts to BOSAAccounts. . .

What benefits do members stand to gain on their FOSA savings?

Security for future financial needs

High savings qualifies member for higher loanadvancements

High savings need less loan security

High savings result in high dividend pay out.

High savings strengthens the Cooperatives’slending capacity

High savings guarantees a member acomfortable retirement.

High esteem for belonging to a Cooperativesplaying in the big league!


Successful Saccos (Ojijo) Salary Processing

This service is offered to members whowish to have their salaries paidthrough FOSA. The employer channels thesalary payment cheques/transfer throughFOSA account and in turn credits themoney into their customers’ accounts.

Standing Order.

This service is geared towards helping thecustomers effect payments to otherinstitutions/persons without cominginto physical contact with money.Customers are required to give specificinstructions to FOSA to payinstitution/persons. There are chargedper order. This service ensures thatthe customers’ time is saved as they donot physically move toinstitutions/persons to make payments.

Third Party Clearance of Cheques.

The customer is assisted to clear chequespaid by institutions and individuals ata reasonable price of XXX.300/= pertransaction.

Short Term Advance.

No maximum upper limit; dependent onmembers ability to pay.

Repayment in 24 months.Interest charged is 2% per month.


Successful Saccos (Ojijo) To qualify a customers savings account

must have been active for at least six(6) months.

The advance is guaranteed by other FOSAaccount holders whose accounts are wellserviced. The terms of this product arereviewed on continuous basis.

Encashment of Loan Cheques

Loan payments for account holders arecredited to the account free of charge.Members are encouraged to open savingsaccounts to ease the process of loanencashment from the society.

Networking of FOSA Branches

Customers can withdraw money from anyoutlet. This enables members to accesstheir deposits whenever they are at thenearest FOSA Branch. Currently we haveembarked on real time transactionsystem under the ERP program networkingall the fosa outlets.

Salary Processing

This service is offered to members whowish to have their salaries paidthrough FOSA. The employer channels thesalary payment cheques through FOSA andthe society in turn credits the moneyto the customer’s accounts.Salary


Successful Saccos (Ojijo) processing is charged XXX. 100/= pertransaction.

Safe Custody of Assets/Valuables

FOSA accepts valuables/Assets fromcustomers for safe custody at a cost.The cost is dependent on the period thevaluables are held but ranges.

Electronic Funds Transfer (EFT)

Account holders are able to transfer fundsfrom any FOSA outlet to the bankaccounts of their choice at a cost ofXXX. 200/= per transaction.

Funds for Loan Clearance by Cash

This facility finances members to clearloans by cash and qualify for othersimmediately.The maximum amount loanableis dependent on the accountholdersability to secure a loan from thesociety. Interest charged on thefacility is 10 % flat rate on theamount advanced.The security for theloan is the loan being secured whichwill be paid through FOSA.

FOSA School Fees Savings Account.

This facility will assist members financefees for their children. The member isexpected to open the school feesaccount and save a fixed amountregularly for twelve months after which


Successful Saccos (Ojijo) the member qualified for an advancethree times repayable in 12 – 24months. The interest on the advance isusually 1% per month. This facility isavailable to society’s members only.

Spouse and Children Account.

This facility is available toSpouses/Children of members who haveaccounts at FOSA.

V.I.P Counter

Accounts with high deposits will qualifyfor V.I.P service where they will beserved from the VIP counter

Commercial Loans.

This facility is designed for members whohave other sources of income other thantheir salary.Eligibility to thecommercial loans will depend on theamounts deposited on monthly basis andis repayable in 36 months. The interestcharged is 15.75% fixed.

Sacco Link Visa Atms

The facility provides members with accessfunds 24 hour daily at a cost pertransaction. An additional benefit isthat it can be used on a point of salefor paying for goods and services suchas in supermarkets, settling hospitalbills, hotel expenses, fuel etc


Successful Saccos (Ojijo) M-Sacco

This product enables Sacco Society toprovide mobile financial services tothe members. This product is a resultof the intergration of Sacco BankingSolutions with moble money TransferServices. As a result, members are ableto carry out transactions including;deposit and withdrawal of money fromtheir Sacco accounts, loan repayments,airtime retail services and payment ofutility bills among others.

Safety of Members deposits.

Members deposits in FOSA are safe as FOSAis a department of the Society. TheGovernment has come up with the Saccobill which will regulate FOSAoperations just the same way CentralBank regulates Commercial Banks.

FOSA Commercial / Personal Loan Product.

This is yet another facility that isdesigned to meet the ever-growing needof Sacco members with accounts inFOSA. It is recoverable through thepayroll for a maximum period of 36months. The interest charged is 2% p.m.To qualify for this loan a member mustmeet the 1/3rd Rule.




Successful Saccos (Ojijo) Appendices

Cooperatives Policies

Loan Policy

To Qualify For A Loan

1. A member must have completed at least 6 monthsin the sacco with minimum monthly contributions

2. and contributed not less than XXX.3. A member who withdraws from the sacco and

rejoins later will be treated as a new memberfor the purpose of the loan policy.

4. Savings contributions paid in lump sum for thepurpose of securing a loan must remain in theSacco for at least 6 months.

A member must undertake to pledge salary fromfuture employer(s) toward loan repayment.

1. Interest on all loans shall be 1% per month ona reducing balance basis.

2. The maximum amount of total loans shall notexceed 100 million.

3. Emergency loans include sudden hospitalization,funeral expenses, court fines, etc.

4. Repayment period is determined by ManagementCommittee, but in all cases shall not exceed 48months.

5. Emergency and School fees loans shall be repaidwithin 12 months.


Successful Saccos (Ojijo) 6. Unless the loan applied for is equal to or less

than a member's shares, it must be secured byguarantor's, log books, share certificates ofquoted companies, insurance policies or anyother financial instrument that may be approvedby the board.

7. To withdraw membership, a member will berequired to give a written notice of up to 60days.

8. A member will be required to maintain a monthlyshare contribution of not less than two thirdsof his/her monthly contribution prior to theloan for at least six months.

9. Lump sum loan repayments for the purpose ofborrowing a new loan must be retained in theSacco for at least 3 months prior to borrowingagain.

10. Normal loan applications must be registeredin the Sacco's offices by the 10th of everymonth.

Deposits Policy Minimum monthly deposits contribution will be

pegged on loan outstanding.A member can contribute as much deposits as he/she

wishes, whether through payroll check off orotherwise. However deposits contributions inany one month that is in excess of the member’sone third gross salary will be considered asboosting. Deposits contribution by a memberwithout common bond in excess of his/heraverage monthly contribution for the last 12months will be considered

Excess deposits contributed by way of boostingwill not be considered when computing member’s


Successful Saccos (Ojijo) loan entitlement unless such deposits have beeninvested with the Sacco for not less than six(6) months cumulatively.

A member who transfers his/her deposits fromanother Sacco or from another member within theSacco will only qualify for a loan after six(6) months waiting period, as is the case fornew members.

Withdrawals, Transfers & Refunds PolicyA member may withdraw from the Sacco by way of:

Expulsion in accordance with By Law 15 Default to remit monthly contributions Voluntary resignation and/or transfer of shares/deposits Death

A withdrawal/ transfer fee of 10% of the member’sshares/deposits balance will be charged,subject to a maximum fee.

Unless in the event of death, the period forprocessing withdrawal refunds will not exceedsixty (60) days from the date of noticeprovided the member has discharged his/heroutstanding obligations.

A member cannot withdraw /transfer his/herdeposits or part thereof while still in themembership of the Sacco. Withdrawal/ transferof deposits must be in total. However, where amember leaves employment and has shares morethan loan, he/she can request to offsetoutstanding loan against shares and then retainmembership with the net deposits. Such membermust avail a letter from employer confirmingthe same.


Successful Saccos (Ojijo) Except as provided above, loans will not be offset

against deposits unless on withdrawal frommembership of the Sacco.

Withdrawal from Sacco membership must be on theprescribed withdrawal form signed by themember. Unless specified, the notice will takeeffect from the date of receipt.

Upon notice of withdrawal, a member may eitherhave his/her deposits refunded or transferredto an existing member as agreed betweenthemselves.

The withdrawing member will be required todischarge all outstanding obligations beforehis/her shares/deposits can be refunded /transferred. This shall include: Full repayment of outstanding loans, principal and interest Replacement of guarantorship where the member had

guaranteed loans for other members.

A member who withdraws and subsequently re-instates his/her membership will be treated asa new member.

Default Policy

This shall result from either the member failingto contribute or the employer failing to remitto the Sacco what has already been deductedfrom the member’s salary. Both cases will betreated by the Sacco as defaulting in as far asthe member is concerned.

Where the employer has defaulted in remittingmembers’ contributions already deducted fromtheir salaries, it is the responsibility of the


Successful Saccos (Ojijo) employees to take up the matter with therelevant authorities and make sure that theemployer complies.

Where contributions in respect of a member (thisincludes principal/ interest on loan repayment,shares/ deposits or risk fund) has not beenreceived for three (3) consecutive months, suchmember will be considered a defaulter.

Where the member’s contribution is not consistenton a monthly basis, then monies received willbe credited to the last month outstanding,without skipping any month. If the arrearscumulates to three (3) months, then the membershall be considered a defaulter.

Once considered a defaulter, the member will benotified accordingly in writing copied toguarantors giving thirty (30) days notice tomake good failure to which the guarantors’deposits will be attached to defray the amountin default.

A defaulter who makes good the default will besubjected to six (6) months grace period beforeany loan application in his/her respect can beconsidered.

Death Policy

It is the responsibility of the employer or nextof kin of the member to notify the Sacco of thedeath of a member. This must be done not laterthan six (6) months by enclosing a letter fromthe employer and/or copy of death notificationfrom either a hospital, police or Chiefconfirming the death.


Successful Saccos (Ojijo) Death notification must be in writing addressed to

the Manager and signed by the author specifyingto whom the benevolent payment should be made.

The Sacco, for the time being, maintains abenevolent fund from which XXX. 15,000/= willbe paid to the employer/ estate of the deceasedto assist in funeral expenses.

Members whose contributions to the Sacco are inarrears will not benefit from benevolentpayment.

A certified copy of death certificate shall berequired to facilitate refund of the deceasedmember’s shares/ deposits.

All loans outstanding on account of a member atthe time of death will be written off inaccordance with the risk fund policy. Howeveramounts in arrears, principal and interest,whether on the part of the member or theemployer, will not be considered and the sameshall be recovered from the deceased member’sdeposits.

Shares/deposits refunds will be paid in accordancewith the list of Nominees as nominated by thedeceased.

In the absence of Nominees or where payment is tobe made to the contrary, then the claimant mustobtain a letter of administration.

It is a criminal offence to give false informationregarding the death of a member with intent todefraud the Sacco. Where proven, theclaimant(s) shall refund any money alreadybenefitted and in addition face criminalprosecution.


Successful Saccos (Ojijo) Nominees Policy

Each member will be required to nominatebeneficiary (ies) of his/her estate in theevent of death.

All nominations must be in writing and signed bythe member and two (2) witnesses.

Nominations should be done on the prescribed formobtainable from the Sacco office on request.Where forms are not available, the member canprovide the same in any written form.

A member can nominate as many beneficiaries ashe/she considers appropriate.

A beneficiary need not be a relative but anyperson(s) whom the member, in his/her opinion,is capable of entrusting with his/her estate inthe event of death. This will include but notlimited to: spouse, child, parents, relative,friend, legal counsel or a combination of twoor more of the stated.

A beneficiary can be an adult, minor or a Trust.A member can up date his/her list of nominated

beneficiary(ies) as often as is necessary.The original nomination form must be deposited

with the Sacco office for safe custody andreference at the appropriate time.

Group Insurance Policy

All members of the Cooperatives will have as partof membership qualification, health insurance,


Successful Saccos (Ojijo) life insurance, children educational plan, andpension fund/social security insurance.

The payments for life insurance will be paiddirectly by the member on the first year ofmembership, and then deducted from the memberscapital account every year, as costs. Providedthat the health cover shall have a funeralexpense benefit.

The payments for life insurance, and pension fundwill be deducted from members contributionevery month, as per the members interest.

Risk Fund Policy

The Sacco maintains a risk fund to provide forpayments in respect of deceased members. Theseincludes benevolent and outstanding loanbalances at the time of death.

In addition to deposits, every member willcontribute XXX. monthly (non refundable)towards the fund. This will be subject toreview by members at the AGM.

Interest Rates Policies

Regular SavingsEarns 8% interest Per Annum.Withdrawable on demand.Recoverable at source.Earns Patronage bonus.


Successful Saccos (Ojijo) Fixed Savings

4-5 years 14% interest Per Annum.2-3 years 13% interest Per Annum.1 year 12% interest Per Annum.Can be security for a loan.

Share CapitalEarns 10% interest Per Annum.Can be security for a loan.It earns dividends annually.Withdrawable on termination of membership.

LoansMaximum loan is Shs. XXX.Maximum loan period is 48 months.Interest of 2% Per Month and 24% Per Annum.No Collateral required.All recoveries at source.Guarantors and or security required where there is

high risk due to low savings, or high loanamount, or risk need for money, e.g. businessloan


Successful Saccos (Ojijo) Sacco Forms

Sacco Membership Withdrawal Request

To,The Secretary,

I do hereby request to withdraw my membership fromSacco Limited with ffect from (w.e.f)_____________________________ this being mywritten notice.

The reason for my withdrawal is __________________________________________________

__I am FULLY aware that according to the by-laws of

Sacco states that: A member may at any timewithdraw from the sacco by giving a writtennotice of ninety (90) days. No member will beallowed to withdraw from the Sacco beforeclearing all loan balances if any; andthereafter the notice period, a member shall berefunded his monies within 30 days.

I undertake to follow-up on the members whoseloans I have guaranteed to ensure that I havebeen fully replaced. Otherwise, the sacco willcontinue to hold on to my deposits until theloans guaranteed have been fully replaced.

Personal Account DetailsFull Names: ………………..…………………..…..………………………Staff No…………..…………….


Successful Saccos (Ojijo) Id No ………………………..Department………………..……………...…Office Number………………………………Mobile Phone No…..……………………..…….……………………….E-mail Address: (Official)….………………………………………………E-mail Address: (Personal)…..

………………………........................Bank A/C Name ……………………………………………………………A/C NO…………………………………………………………………….Bank …………..………..…Branch…………..…………………I hereby make an application to withdraw from the

Sacco and agree to conform to Sacco by-laws andany amendment thereof.

Signature of Applicant

………………………………

FOR OFFICIAL USE ONLY

CHECKED BY AUTHORISED BY COMMITTEEStaff Name………………………………Name…………………………………………Designation ……………………………………Designation ………………………………………Signature …………………………………………Signature ………………………………….………


Successful Saccos (Ojijo) Date …………..…………………………………Date …………………………………………



Share Capital Transfer Form

The Secretary

TRANSFERORI ……….………………………… (Full Names as they appear on ID)STAFF NO…….…………. ID NO ………………………… OFFICIAL DESIGNATION ………….…….………… DUTY STATION & ADDRESS ……..………………………………… MOBILE PHONE NO………………………..………… E-mail Address:

...............................................

................. hereby make an application to transfer my Sacco

share capital of ……………………...………shares worth (amount) ………………..…………. and to the below undersigned member. I have made an official withdrawal from Sacco giving 90 days notice.

DATE :…………………………………………………SIGNATURE OF TRANSFEROR:………………………………..…………

TRANSFEREE

I …….……………………… (Full Names as they appear on ID) STAFF NO…….…………. ID NO …………………………


Successful Saccos (Ojijo) OFFICIAL DESIGNATION ………………….…………….… DUTY STATION & ADDRESS ……………………………… MOBILE PHONE NO…………………………………… E-mail Address: …………………………….………………........ Apply to purchase the above shares and receive the

benefits arising thereof; please find enclosed a cheque /bank deposit slip of XXX (Amount)…………………………..……

DATE SIGNATURE OF TRANSFEREE FOR OFFICIAL USE ONLY TRANSFER FEE (1000/-) PAID ON ………………………………..….. RECEIPT NO………..…………………………… APPROVED BY MANAGEMENT COMMITTEE ………………… OFFICIALS SIGNATURE …………………………………………..….. DATE …………………………………………………



Share Variation Form

(THIS INSTRUTION MUST BE CONFIRMED BY AN AUTHORISED OFFICER OF THE Cooperatives)

I ……….………………………… (Full Names as they appear on ID)STAFF NO…….…………. ID NO ………………………… OFFICIAL DESIGNATION ………………….…………….… DUTY STATION & ADDRESS ……………………………………… MOBILE PHONE NO…………………………………… E-MAIL ADDRESS: …………………………….………………........

Hereby request and authorize you to adjust my monthly remittances in favour of sacco investment co.operatve society limited as specified below, totake effect from (enter date)……………..until further notice .

Investment contribution (enter amount): …………….Investment Membership No: …………….Signature:…………….Date: …………….

FOR OFFICIAL USE ONLYInstructions Confirmed In Order/ Not In OrderSignature: …………….Forwarded: …………….Designation: …………….




Successful Saccos (Ojijo) Change Of Nominated Next Of Kin

I, the undersigned, hereby instruct you that in the event of my incapacitation or demise while a member of the sacco, all my dues should be paid to the person(s) named herein as my nominated next of kin(s).

I further understand that the name of the nominee(s) can be given in a sealed letter, that I have more than one nominee with applicable rates of percentages of the savings and that this instruction supersedes any that was given earlier.

NOMINATED NEXT OF KIN (1)Full Names :_________________________________________Date Of Birth: ___________________ Relationship:___________________________________Id No:__________________________________ Present Address:

________________________________________ Permanent

Address :_______________________________________

Percentage: ________________________________________

NOMINATED NEXT OF KIN (2)


Successful Saccos (Ojijo) Full

Names :_________________________________________

Date Of Birth: ___________________ Relationship:___________________________________Id No:__________________________________ Present

Address :___________________________________ Permanent Address: ______________________________ Percentage:__________________________________

______

NOMINATED NEXT OF KIN (3)Full

Names :_________________________________________

Date Of Birth:___________________ Relationship:___________________________________Id No:__________________________________ Present

Address :_____________________________________ Permanent

Address :______________________________________Percentage:_____________________________________ _

NOMINATED NEXT OF KIN (4)Full Names:

_________________________________________Date Of Birth :___________________


Successful Saccos (Ojijo) Relationship:___________________________________Id No:__________________________________ Present

Address :__________________________________________

Permanent Address :______________________________________

Percentage:________________________________________

DETAIL OF THE MEMBER Full Name: __________________________________ Employer :____________________________________ Present

Address :______________________________________Home

Address :_____________________________________ Member No/Ek No: ________________ Signature: ______________________________ Date:________________ Name Of Witness :______________________________ Member No/Ek No :_________________ Signature:________________________________________

_ Date:_____________________________


Successful Saccos (Ojijo) Loan Application Form

Please complete all sections of the form in BLOCKCAPITALS.

(A) MEMBER DETAILS: Name:………………………………………………………………………..ID NO:.……….……….… Physical Address:……………………………………Date Of Birth:.....…………………………….… Home Telephone Number:……………………………Mobile Number:………………………………. (B) EMPLOYMENT / BENEFIT DETAILS Employment status: (Contract/Permanent):………………………If Contract State End Date Of Contract:

………………………….. Position Held:……………………………………………………………….. (C) LOAN DETAILS Type Of Loan (Developmental/Emergency):……………… Purpose Of Loan:……………………………………………………….……. Amount Requested :….…………………….…….. Repayment Period:………….… (Months)

(D) INCOME & EXPENDITURE DETAILS (please include all household income and expenditure, plus balances of other borrowings should be in per month)

Monthly Consolidated Pay :…………………………………………..


Successful Saccos (Ojijo) Other Income (Aggregate and Net):…………………… Monthly Expenditure:…………………………………………………… Proposed Cooperatives Savings:……………………………………

(E) OTHER LOANS

Monthly Loan Repayments (Other Financial Institutions):………

A/c Name/Title:……………………………………………………… A/c Number:……………………………………….… Bank Branch:………………………………… Bank Name:……………………………………………..

(F) FORMAL DECLARATION I declare that I am in good health and that I

declare that the information I have given on this form is, to the best of my knowledge and belief, accurate and full information. I understand that the provision of false information is fraud and that the saving & credit scheme may take appropriate action if Iam found to have deliberately provided false or misleading information.

Applicant’s signature:………………………….....................................

Date:……………………………....…. (Please note that this application form will not be processed

without your signature)

(G) LENDER’S DETAILS Name of Cooperatives: ………………………….


Successful Saccos (Ojijo) Registered address: ………………………………..

(H) LOAN DETAILS Amount borrowed:(enter amount)…………………..…………………. Precessing Fee: (enter amount)………………………………... Insurance Fee: (enter amount)…………………….…….Attachments required, Applicants Recent Pay slip

and Photocopies of Identity card for both applicant and Guarantors who must be Cooperatives members.

The monthly rate of interest: (enter ammount)……..…

The annual rate of interest: (enter ammount)……..…Loan Installements: (enter amount of months)…... Monthly Repayment : (enter amount)……………..

(I) TERMS OF THE LOAN AGREEMENT 1. The Lender will lend and the Borrower acknowledges that they

have received, the sum borrowed under this agreement. The Borrower will repay the Loan (i.e. the Total Amount Owing) by the repayments set out in the loan details above.

2. Interest will be charged monthly on the unpaid balance of the Loan and any unpaid interest at the rate set out in the Loan details above.

3. The Borrower has the right to settle the Agreement early at any time by paying in full the balance of the Loan and any unpaid interest outstanding. The Lender will, on request, provide the Borrower with a written statement of the sums which have been paid and which remain outstanding under the agreement.


Successful Saccos (Ojijo) 4. The Borrower acknowledges that the details given on the Loan

Application for this agreement are correct and will inform the Lender immediately of any change in financial circumstances which may reduce their ability to repay the Loan or of any change in their address.

5. If the Borrower fails to pay any amount due to the Lender under this agreement, or breaches any of its terms, the Lender has the right to demand early repayment of all or part of the balance of the Loan outstanding, together with any unpaid interest. The Lender will give the Borrower written notice not less than seven days before taking any action to recover any such sum.

6. If the Borrower misses any payments into their saving accounts, their saving will be transferred to pay off the existing loan balance and if at this stage your savings are insufficient to clear the loan the debt will be offset from terminal benefit, transferred to a debt collector, or court action will be taken.

7. The Borrower will be liable for any costs the Lender incurs in recovering sums due under the Agreement.

8. Any Guarantor under this agreement will be responsible to look for the borrower or be liable for sums due under it which the Borrower fails to pay.


Successful Saccos (Ojijo) (J) SIGNATURES OF BORROWER AND GUARANTORS

This is a legally binding Agreement: sign it only if you wish to be bound by its terms. If you do not understand any part of this Agreement you should take independent legal advice

Borrower Full Name:………………………………………………… Signatures: …………………………………………………… Date………………………………

(Guarantors must be Cooperatives members) Guarantor 1 Name:………………………………………. ID number: ………………………………….. Address:………………………………………………Tel. No.……………………… Signatures: …………………………………………………… Date:………………………………

Guarantor 2 Name:………………………………………. ID number: ………………………………….. Address:……………………………………………Tel. No.……………………… Signatures: …………………………………………………… Date………………………………



(K) OFFICIAL USE ONLY

Date of disbursement..………………. Amount disbursed: ………………..…………………….............. Personal Savings Account Balance: ………….……………... Date of Last Loan: ……….

………………....................................… Outstanding Loan Balance: ……………………………………… Loan

payment: .................................................................

Net payment: ............................................................................

Prepared by:

Cooperatives Officer Name:............................................................

Cooperatives Signature:..................................................................

Certified by:

Cooperatives Manager Name:............................................................


Successful Saccos (Ojijo) Cooperatives Manager

Signature:..................................................................

Approved(By Authorised Signatories)

Name:………………………………………….Signature:……………………………….Date:………………………………

Name:………………………………………….Signature:……………………………….Date:………………………………

If not approved, reason for non-approval:.................................................

.................


Successful Saccos (Ojijo) Membership Application Form

(Affix Passport Photo)

1. APPLICATION FOR MEMBERSHIPI hereby make application for membership and

agree to conform to the Sacco’s By-laws and any Amendments thereof.

Name in Full: (BLOCK LETTERS)

Occupation/Profession:

Home District:

Village:

Current Residential Address (District, County, Sub County, Village):

Telephone:

Email:

Date of Birth (Date/Month/Year)

2. NEXT OF KIN

Name in Full: (BLOCK LETTERS)

Relationship


Successful Saccos (Ojijo) Home District:

Village:

Telephone:

3. AUTHORITY TO MAKE DEDUCTIONS FROM SALARY

I………………………………………………………………………..hereby authorize

you to deduct the amounts below from my salaryevery month and pay to MOFA Cooperatives with effect from …….../………../………… until further notice.

Membership Fee

Share contribution

Monthly Savings

Others (specify)

Signature: ………………………………………. Date: ……./………../……………

Note:

Instructions will be effected in the immediate next payroll.


Successful Saccos (Ojijo) FOR OFFICIAL USE ONLY APPLICATION RESPONSE: ACCEPTED REJECTED

(Please tick the appropriate.) Comment (If Rejected): ……………………………………………………………

Cooperatives ManagerSignature: ………………………………………. Date: ……./………../………


Successful Saccos (Ojijo) By-Laws

Part 1: Name And OfficesName/Area OfOperation

1. The sacco is called XXX Cooperatives LIMITED hereinafter referred to in these by – laws, as “the sacco” and its area of operation shall be within Uganda.

Registered Office

1. The Registered office of the sacco shall be at XXX and postal address shall be P.O BOX XXX, YYY City.

2. Notice of any change of address shall be given to the Commissioner for Co-operative Development, (herein after referred to as “the Commissioner”) and to all the members of the sacco.

Part 2 : Definitions & Interpretations

Interpretations

3. In these by-laws, unless the context otherwise requires, words or phrases shall be defined or interpreted in accordance withthe Co-operative Societies Actand Co-operative societies Rules and any other.

4. Any question concerning interpretation of these by-


Successful Saccos (Ojijo) laws or any other matters not provided for therein, errors and omissions shall be referred to the commissioner.

5. In these by-laws where the masculine gender is referred to, it will be construed to include the feminine gender.

Definitions 6. COMMON BOND- Means the basis for co-operation betweenmembers of the society (what makes members of the society come together.)

7. CO-OPERATIVE TRIBUNAL: - Means a quasi court that is charged with powers of handling co-operative societies disputes.

8. COMMISSIONER: - Means the commissioner for Co – operative Development.

9. BY-LAWS: Means the By-laws made by the society and registered under the Act and includes any registered amendments of such by-laws.

10. SHARE: Means the amount of money contributed by each member towards the capital of


Successful Saccos (Ojijo) the society and which is not refundable to the member, it is the permanent capital of the society.

11. SUPERVISORY COMMITTEE: means an oversight committee elected at a general meeting.

12. MEMBER IN GOOD STANDING: - means a member who is current in payment of his required contributions and has not in any way acted in a manner, which is potentially damaging to the society and has fully complied with the policies andRules set forth by the society.

13. MEMBERS DEPOSITS: -- Means the amount of money contributed by each member as Savings with the society. Thisamount shall be taken as installments towards creating a fund for the purpose of acquisition of land or house by an individual member.

14. NET SURPLUS: - Means the amount of income in excess of expenses of the society. It is computed before an


Successful Saccos (Ojijo) allocation is made for paymentof member’s dividend / interest on Shares/ deposits respectively.

15. MEMBER OF IMMEDIATE FAMILY:- Includes but it is not limited to the spouse, parents and children of the members, whether or not residing in the same household. They also include any other relative of the member or spouse of the memberif the relative resides in thesame household as the member

Part 3: Objects Of The SocietyObjects Of The Society

16. The objects for which the society is established are:

17. To provide for its members living accommodation within the area of its operation at afair and reasonable price together with such ancillary services as roads, drainage, water and light and together with facilities for physical and cultural recreation and all such other matters as are usual, customary and desirous for building estates, blocks of flats or single dwellings. The society may own Land and Buildings on behalf of its


Successful Saccos (Ojijo) members.

18. To acquire land and or construct houses for the purpose of selling them to members and non-members.

19. To achieve the objects set forth in By-laws the society may perform and carry on all the usual functions of a co-operative society as governed by the Co-operate Society Act and Rules and may in addition;

20. Raise fund by accepting deposits andby contracting for loans from members or non-members by issuing debentures or mortgaging its property or by any other means up to a maximum amount to be decided by the General meeting.

21. Lend money to members for any purpose directly concerned with the acquisition of land or living accommodation for themselves on such terms and with such security as the management committee may from time to time determine or guarantee loans and advances to members for similar purposes.

22. Undertake building operations by such means either directly or indirectly as the committee may decide.

23. Acquire Supplies of building and similar materials and machinery of all kinds including household furniture and equipment for use in building or for sale


Successful Saccos (Ojijo) or hire to members.

24. Acquire and relinquish land, buildings and rights over land and buildings by purchase, lease or any othermeans as may be necessary for the attachment of these objects.

25. Employ architects, builders, and contractors. Issue plans negotiate and contract services for light and power, water drainage, roads and generally do all such things as are necessary and customary for the acquisition of land and its development for housing purpose.

26. Enter into contracts with members for the sale or lease of land and building acquired by society in pursuance of its objects on such terms and conditions as may from time to time be determined.

27. Do all such things, as are incidental to or necessary for the attainment of anyor all foregoing objects of the society.

Part 4: Principles And ValuesCo – Operative Principles

28. In order to achieve the above objects for which it is established, the society shallact in accordance with the internationally accepted Co – operative Principles and values stated below: -

29. Voluntary and open membership;30. Democratic member control;31. Economic participation by members;


Successful Saccos (Ojijo) 32. Autonomy and independence;33. Education, Training and Information;34. Cooperation among co-operatives;35. Concern for community in General

Co-OperativeValues

36. Co-operatives are based on the values of self-help, mutual responsibility, equality and equity. They practice honesty, openness andsocial responsibilities in alltheir activities. This co-operative shall uphold faithfully the above values.

Part 6: MembershipMembership Classes

37. Members shall consist of: -38. Original members who signed the

application for registration,39. New members subsequently

admitted in accordance with these By – laws

Qualifications For Membership

40. A person shall be eligible for membership who possesses all the following qualifications: -

41. Is of Good character and sound mind.

42. Is not less than 18 years of age.43. Is a current or past employee of XXX

Limited. 44. Has not applied to be adjudicated as

insolvent or is not declared bankrupt by a competent Court of Law.


Successful Saccos (Ojijo) 45. Has not been convicted for any

criminal offence involving dishonesty or fraud and jailed for a period of three months or more during the last five years.

46. Accept to abide by and observe the provisions of these By-laws and other regulations and resolutions made by the members regarding the operations of the society.

Membership Application Form

47. Every applicant for membership shall complete an “Application for Membership” form as may be prescribed by the management.

Agmission Into Membership

48. The Management Committee subject to confirmation by thenext General Meeting shall admit members. On being accepted by the Management Committee, a member shall signhis name in the Register of members in the presence of twomembers of the Management Committee or one member of thecommittee and manager to indicate his acceptance of theBy – laws of the Society.

49. An applicant shall be admitted to the membership, but shall not qualify for the rights and privileges of a member until he has paid a non


Successful Saccos (Ojijo) – refundable Membership Fee ofXXX. and at least XXX. in Shares (these fees are subjectto adjustments by the management committee (subject to approval by General Meeting) in order to be in tune with the prevailing economic situation)

50. A number shall be assigned to each member as a means of identifying his account with the society.

Refusal Of Membership

51. The Management Committee may refuse membership to any person by giving him reasons for its refusal, provided, however, that the person, whose membership has been refused, if otherwise eligiblefor membership, shall have theright to appeal to the next General meeting.

Nominee 52. Every member shall nominatein writing one or more personsto whom upon his death, his shares, deposits or any other interest shall be transferred,and the member in the presenceof two attesting witnesses shall sign such nomination. The particulars of the nominee(s) shall be recorded


Successful Saccos (Ojijo) and kept in a sealed envelope and safely kept in the custodyof the Manager and whose reference / particulars shall be entered in the Register of members.

53. A member may at any time change his nominee(s) providedthat; such changes or alterations are done in writing and signed by the member in the presence of at least two attesting witnesses.

Payment To Nominee

54. If not admitted to membership, the nominee(s) shall be paid the value of thedeceased member’s deposits or assets less any sum due to thesociety as a primary or contingent liability. This should be done upon receiving official notification of the death of the member, but not later than 90 days from the date of such notification.

55. Refusal to admit a nominee shall be in writing and adequate reasons provided

Membership RIGHTS

56. Subject to these by – laws,policies, standards and procedures, all members shall have the right to use the society’s services and exercise the rights


Successful Saccos (Ojijo) established under the Act, theRules and the by – laws. The members are entitled to: -

57. Receive, periodically and regularly, or upon request and at least 4 times a year, a statement of accounts containingthe individual records of his debit and Credit transactions. At the option of the society, this record may be provided in the form of passbook

58. Attend and participate at the Generalmeeting of members. Each member shall have one vote irrespective of the member’s total Shareholding as long as he is a member in good standing.

59. Elect or be elected as a Committee Member or officer of the Society.

60. Use the society services according to the policies set by the Management Committee and approved by the General meeting.

61. Submit projects or initiatives to the Management Committee for consideration that focus on the expansion or improvement of society.

62. Other rights as prescribed by the applicable law.

Member Obligations

63. Subject to the by – laws, policies, standards and procedures, all members have the following obligations to the society: -

64. To repay all outstanding loans according to the terms and conditions


Successful Saccos (Ojijo) stated in the loan agreement.

65. To promptly make all required contributions.

66. To observe and abide by all terms and conditions of the Co – operative Societies Act, Rules, these By-laws, policies and contracts of the society.

67. To put forth qualified candidates for office

68. To support issues put forth that improves the sustainability of the society and promotes the good will of all members

69. To attend and actively participate in meetings of the society.

Cessation OfMembership

70. Membership of the society shall cease with effect from the date of a member: -

71. Dying72. Ceasing to hold the qualification for

membership as specified in these By-laws, the Rules or the Act

73. Being expelled from the society 74. Voluntarily withdrawing from the

society in accordance with these By-laws75. Becoming of unsound mind76. Being declared bankrupt by a

competent court.

Voluntary Withdrawal

77. A member may withdraw from the society by giving sixty (60) days notice in writing ofhis intention to withdraw fromthe society.


Successful Saccos (Ojijo) 78. The Management Committee must approve such withdrawal and take all the necessary Action to refund the member’s deposits or any other interestdue to him or transfer his shares as he may direct.

Expulsion 79. The Management Committee may suspend, subject to expulsion by the General meeting a member who: -

80. Is convicted in a Court of Law for criminal offence for any reason or

81. Willfully fails or refuses to comply with the applicable law, By-laws, policies and procedures of the society.

82. Acts in any way detrimentalor prejudicial to the Society’s interest or other just cause.

Expulsion Procedure

83. Upon formal and written announcement (by a member or management) that a member has committed a violation punishable by expulsion, the Management Committee shall provide written notice to the member stating the reason(s) for the proposed suspension and subsequent expulsion by the General meeting and grant


Successful Saccos (Ojijo) a member 30 days to prepare his defense.

84. After this period, taking into consideration the member’s defense, the Management Committee shall initiate an administrative inquiry and take a decision onits findings within 15 days. The said member shall have 10 days to file an appeal againstthe proposed expulsion with Supervisory Committee, which will take this appeal to a General meeting.

Payments Resulting From Cessation OfMembership

85. A member who withdraws or is expelled by General meetingshall be repaid the following amounts after deduction on anydebts owed by him to the society as a borrower, endorser, and guarantor or otherwise and deduction of membership withdrawal processing fees: -

86. The nominal or book value of his deposits whichever is less

87. Any bonus, dividend or interest if any, due to him at the date which membership ceases.

88. The membership withdrawal processing fees shall be set by the


Successful Saccos (Ojijo) management committee

Member’s Liability

89. The liability of a member shall be limited to the nominal value of the Shares held by him in the society.

90. In the event of the liquidation, where available funds are insufficient to pay the full nominal value of the Shares/deposits held by the member, the funds shall be distributed pari passu and prorata among the share holders according to the Shares /deposit held by each member.

Part 7: Funds Of The SocietySources Of Funds

91. The funds of the society shall consist of: -

92. An entrance fee as may be approved by the Committee payable on admission

93. A nominal number of shares as shall be determined by the committee;

94. Members’ deposits.95. A 20% Statutory Reserve fund and

any other fund established by the General meeting.

96. Surplus funds resulting from the operations of the society

97. Funds obtained from any lawful sources like grants from Non-Governmental Organizations and other donors or loans from financial


Successful Saccos (Ojijo) institutions, members or non-members.

98. 10% cash Reserve on deposits.99. Al funds sources and percentages

are subject to changes as management may decide from time to time with approval of General meeting.

Uses Of Funds

100. The funds of the society shall be applied for the promotion of the stated objects and purposes of the society set forth in these By-laws and in the applicable law.

Investments Of Society Funds

101. The society may invest or deposit its funds not in immediate need in: -

102. Post office savings bank103. Investments and securities Quoted in

Nairobi Stock Exchange. 104. Shares of other co-operative

societies.105. Unit Trusts. 106. Treasury bills or bonds.107.

Shares 108. The Shareholding of a member who fails to complete the payment of the minimum qualifying Shares within 12 months shall be refunded aftergiving such member one month’snotice unless the member reactivates his Shareholding.


Successful Saccos (Ojijo) 109. No member shall hold more than 1/5 (Twenty %) of the total shares at any given time.

Transfer Of Shares

110. With the approval of the Management Committee, a membermay at any time transfer his Shares to another member or next of kin but not to a non-member. Such transfer must be in writing and shall be at nominal value

111. All transfers of Shares, either from a member to another member or from a deceased member to his nomineemust be registered with the Secretary and no transfer shall be valid unless so registered.

112. The society shall charge a fee to cover share transfers.

Power To Borrow

113. The loan shall be obtained from the members and non-members subject to the terms and the maximum endorsed and approved by the General meeting.

114. The maximum liability fixedshall be subject to the approval of the Commissioner who may at any time reduce it or impose such condition as he


Successful Saccos (Ojijo) may deem necessary.

115. For better securing of any loan accepted by the society under paragraph (25 a) of thisby-law, the society may grant a charge over its assets and over the Shares held in financial institutions or building owned by the society on behalf of the members in accordance with these By-laws.Granting of such charge shall be subject to a special resolution by a general meeting.

Rate Of Interest

116. The rate of interest on deposits or loans shall be determined by the Management Committee subject to approval by the Annual General Meeting.

Receipting For Money

117. Members shall be provided with a receipt by the society,which shall serve as confirmation of each and everytransaction processed between the member and the society.

Statutory Reserve Fund

118. The society shall maintain a statutory Reserve fund in pursuance of the provisions ofthe applicable law. The Reserve shall be credited withat least 20% of the net surplus of each financial year. Such a fund shall be


Successful Saccos (Ojijo) invested or deposited in a manner as prescribed in section 45 of the Act.

119. No withdrawal shall be madefrom the reserve fund without the consent in writing of the Commissioner and such withdrawals shall be made goodfrom net available surplus resulting from operations of the society during subsequent financial years.

120. The reserve fund shall be indivisible and no member shall claim a specific share of it .

121. The reserve fund shall be kept in a separate account to be known as reserve fund account.

122. The society shall cause an annual audit for the reserve fund.

Part 8: MeetingsAnnual General Meetings (Agm)

123. The Supreme Authority shallbe vested in the General meeting of the members. Such meetings shall be held as follows: -

124. The Annual General meeting shall be held within Four months of the close of society’s year.

125. Special General meeting Managers' Guide to Acquire, Retain and Grow Membership, Savings and Assets Page |

318

Successful Saccos (Ojijo) shall be held

126. When convened by ManagementCommittee or the Commissioner in accordance with the provisions of the Act and Rules.

127. By the committee within 15 days of receipt of a written demand from at least 20% of the members stating the objects and reasons of callingthe meetings.

128. If the committee fails to convene a meeting within 15 days of receiving the notice under sub-section (b)(ii) above, the members demanding the meeting may themselves convene the meeting by giving notice to other members of thesociety, stating the objects and reasons for the meeting and the fact that the committee has failed to convene the meeting.

Quorum 129. Except when convened by theCommissioner, the presence of at least ¼ (quarter) of the members or twenty Members whichever is less, shall constitute a quorum for the conduct of business at a General meeting.

130. When quorum is not attained


Successful Saccos (Ojijo) within one hour from the time appointed for commencement of the meeting, the Chairman shall adjourn the meeting and shall fix a date within one month of the adjourned meeting, which shall be duly advertised. If at such subsequent meeting a quorum isagain not attained, the Chairman shall declare the meeting open, and proceed withthe business of the meeting with those present, half an hour after the advertised starting time of the meeting.

Duties Of Annual General Meeting

131. The General meeting of the members shall be conducted andshall have the power and duties as prescribed in the Rules and By-laws to: -

132. Consider and confirm the Minutes of the last Annual General meeting and of any other intervening Special General meetings (SGM)

133. Consider the auditor’s report on accounts and balancesheet; the inspection reports of Commissioner and the reports of the Committee on the business of the society during the past financial year.


Successful Saccos (Ojijo) 134. Appoint the auditors for the ensuing financial year.

135. Subject to these By-laws, decide on the disposal of the net surplus resulting from theoperation of the society during the past financial year.

136. Ratify Action taken by the Committee and give direction to the new Committee where necessary.

137. Consider appeals against the suspension of members and refusal of membership by the Management Committee.

138. Elect, suspend or remove members of the Management Committee and other Committees.

139. Fix the maximum borrowing powers and liability which thesociety may incur in loans anddeposits, whether from membersor Non-members.

140. Approve the income and expenditure estimates /budget for the ensuing financial yearfollowing the Annual General meeting.

141. Approve the honorarium, if any, for current and retiring Officers of the society.

142. To fix or renew the


Successful Saccos (Ojijo) indemnity amount required for each elected official.

143. Transact any other businessfor which notice has been given in the manner prescribedin these By-laws.

Minutes 144. All business discussed at General meeting shall be recorded in a Minute book which, within one week of the meeting shall be signed by theChairman of the meeting and atleast one other Committee member who was present at the meeting, to verify that in their opinion the Minutes are true and complete record of all matters after approving any alterations or variation which shall be written immediately below the above signatures and not as alterations to the original record. The members shall by resolution in the subsequent meeting authorize the Chairmanto sign and date the final record.

Resolutions 145. Every member present at theGeneral meeting shall have only one vote on any resolution put to vote. Ordinary resolution shall be


Successful Saccos (Ojijo) decided by simple majority vote. However, special resolution shall be passed by minimum of two thirds (2/3) ofthe members present and votingat a General meeting.

146. The Chairman of the Generalmeeting shall declare whether a resolution put to vote has been carried or lost and shallcause an entry to that effect to be made in the Minute book of the society and such entry when signed by him shall be conclusive evidence of the resolution put to vote.

147. In the event of votes on any resolution being equal, itshall be deferred to the next General meeting at which it will be put to vote again to members present at such meeting.

148. The Chairman of a meeting shall not have a casting vote but just a deliberative vote.

Part 9: ManagementOffice of the Patron

149. The club patron shall be nominated by the management committee through simple majority vote, and approved bymembers in the annual general meeting to serve for a period


Successful Saccos (Ojijo) of two years;

150. The patron shall represent the clubs interest with various key decision makers ingovernment, private sector andcivil society.

151. The patron shall be a person of repute, good standing, and successful achievements in their professional field.

Advisory Board

152. The Club shall have an advisory board, also refered to as board of directors;

153. This shall consist of five to seven members of repute, led by the club patron;

154. Members of the advisory board shall be nominated by the management committee, and approved by the members in theannual general meeting, to serve for a period of 2 years each.

155. The Advisory board shall have the club president as itssecretary.


156. The Management Committee shall be elected by and from the membership of the society and shall consist of a maximumnine members. The Management Committee shall include the Chairman, Vice-Chairman,


Successful Saccos (Ojijo) Treasurer and Secretary, all of whom will be elected by theCommittee from amongst the members of the Committee.

Management Members/ Executive Officers

157. The Chairman, Vice-Chairman, Treasurer and Secretary shall be termed "Executive Officers". The executive Officers shall be elected either on the day of the General Meeting or at a Management Committee meeting held within seven (7) days after the General Meeting in accordance with these By-laws.

Chairman & Vice -Chairman

158. The power and duty of the chairperson shall be to:

159. Convene all the meetings ofthe society.

160. Prepare or cause to be prepared the agenda of the meetings.

161. Chair the meetings and control the business to be transacted at such meetings

162. Direct the affairs of the society in conjunction with other elected officials.

163. Enforce all rules made by the committee and General meetings.

164. In the absence of the chairman, the vice chairman shall perform the duties of


Successful Saccos (Ojijo) the chairman.

165. In absence of both the chairman and his vice, the meeting shall appoint one of the members to chair that day’s meeting.

Treasurer 166. The duties of the Treasurershall include: -

167. Generally to manage or cause to be managed the financial affairs of the society in a competent manner.

168. To maintain full and complete records of all moniesreceived and disbursed by the society and of all assets and liabilities of the society.

169. To ensure the safe keeping of the society's money and security of all accountable documents and books of account.

170. To ensure that all paymentsand expenditures are fully authorized and enforce all Rules regarding good financialManagement and practices as ordered by the Committee.

171. To ensure compliance with all directives of the Management Committee and the commissioner.

172. Within 15 days after the close of each month, the


Successful Saccos (Ojijo) Treasurer shall prepare and submit to the Management Committee a financial statement showing the condition of the society at the end of each month. He shall prepare and forward to the commissioner such financial reports as the commissioner may require.

Secretary 173. The duties of the Secretaryshall be: -

174. To record Minutes of the Management Committee and the General Meetings

175. To ensure that the society's correspondence is promptly and correctly attended to.

176. To prepare and send noticesof meetings in consultation with the chairman.

177. Generally to manage and cause to be managed the affairs of the society as may be necessary in consultation with the executive officers.

Duties Of The Management Committee

178. The Management Committee shall be the governing Authority and subject to any directions from the General Meeting and the By-laws of thesociety,

179. It shall direct the affairsManagers' Guide to Acquire, Retain and Grow Membership, Savings and Assets Page |

327

Successful Saccos (Ojijo) of the society. In particular it shall: -

180. Observe in all its Activities the Act, the Rules and these By-laws and undertake prudent business practices in the Management ofthe society.

181. Authorize borrowing and lending operations of the society in accordance with theAct and the Rules.

182. Act upon all applications for membership.

183. Ensure that true and accurate records and accounts are kept of the society's money, properties, capital, Reserves, liabilities and income and expenditure.

184. Lay before the Annual General Meeting a balance sheet and final accounts, together with proposals for the disposal of the surplus ifany.

185. Recommend to the Annual General Meeting the rate of Dividend, interest on depositsor Honorarium to be paid to the members, the Committee andthe staff.

186. Fill the vacancies occurring in the Management


Successful Saccos (Ojijo) Committee and other sub-Committees between Annual General Meetings.

187. Designate a depository for the funds of the society.

188. Impose fines under these By-laws.

189. Issue new Shares and approve transfer of Shares between members.

190. Determine the interest rates that shall be paid on deposits and borrowed money.

191. Appoint, suspend or dismissany employee of the society and supervise their work subject to the requirements and provisions of the Act.

192. Regulate matters regarding investment

193. Apply on the instruction ofthe General Meeting for affiliation to a Co-operative Union or National Co-operativeOrganization and take necessary Action to become affiliated.

194. Consider application for loans, suggestions for investment and Act in accordance with the By-laws.

195. Elect delegate(s) to represent the society in Co-operative Union, National Co-


Successful Saccos (Ojijo) operative Organization or in apex Society, to which the society is a member.

196. With the consent of the General meeting make, revoke and alter from time to time and at all times enforce such regulations, terms and conditions relating to tenantsof the society.

197. To collect rents, repayments, installments and interests on loans from tenants, members and other purchasers.

198. To represent the society orcause representation of the society in all legal matters.

199. Perform such other duties as the members may from time to time direct.

Eligibilty Into The Committee

200. No member shall be eligibleto be elected into the Management Committee: -

201. Unless he has been a member of the society for at least the immediate 6 months preceding the Annual General meeting and is a member in good standing

202. If he is currently delinquent in his loans for 30 days or more on his loan within the six months period prior to the elections, or has any un cleared debt to


Successful Saccos (Ojijo) the society at the end of the society’s financial year.

203. If he is not current with the required contributions to the society

204. If he does not meet the required minimum qualification standards as established by the society from time to time

205. If he has a record of lending money on his own account, or acts in any other manner which is detrimental to the well being of the society.

206. If he receives any remuneration, salary or other payments from the society save in accordance with the Act.

207. If he is un discharged bankrupt, or isof unsound mind.

208. If the Commissioner or his representative in an inquiry report had adversely named him.

209. If he has been convicted of any offence involving dishonesty or has been imprisoned for three months or more.

210. If he has been convicted of any offence under the Act, and Rules made there under.

211. If he is not able to read, write and understand English.

212. If he is a committee member in two other co-operative societies.

213. If he runs a business which is in competition with the society.

214. If he has not, within 30 (thirty) days of being appointed, declared his wealth


Successful Saccos (Ojijo) to the Commissioner in the prescribed manner.

215. If he is not, within 14(fourteen) days of being appointed, filed an indemnity inthe format prescribed in co-operative societies rules.

216. If he is a person whom any amount of money is due under a decree or order or is pending recovery under the Act.

Tenure Of Office

217. The Management Committee shall be elected for a term ofthree years but one third of the members shall retire annually with the Chairman andVice-chairman retiring in the third year and the retiring members shall, however, be eligible for re-election. No more than two-thirds of the committee shall be of the samegender.

Committee Meetings

218. Management Committee meetings shall be held at least once every month and at other times when necessary. A simple majority shall form a quorum for disposal of business.

219. Where a member of the Management Committee fails to attend three consecutive meetings without any reasonable apology or otherwise fails to perform his


Successful Saccos (Ojijo) duties, his position may be declared vacant and the vacancy filled as provided forin these By-laws.

220. If during its term of office a vacancy occurs in theManagement Committee, the Committee shall, if the numberof members drops below five, co-opt any member to fill suchvacancy. Such co-opted member shall serve in the Management Committee until the next General meeting at which the position shall be duly filled.

Removal Of Committee

221. If a General Meeting removes from office a Committee member, it shall forthwith elect another qualified member of the society to fill the vacancy. Such an elected committee member shall assume and hold office until the next Annual General meeting at which the position shall be duly filled.A member of committee shall only be removed from office through a special resolution.

Elections: 222. Election of Management Committee members shall be conducted at General Meetings


Successful Saccos (Ojijo) at which such elections are scheduled.

223. The presiding officer shallcall for nominations from the floor at the general meeting and members thus nominated shall be voted upon, except ifa nominee declines.

Election Procedures:

224. All elections shall be by show of member's hands unless the majority of members present specifically request for secret ballot.

225. No member shall be entitledto vote by proxy.

226. Irrespective of the number of Shares held by him, no member shall have more than one vote.

227. The presiding officer shallannounce the election results immediately.

228. Within 7 days of these elections, the Secretary shallforward the names and addresses of all persons elected to office to the Commissioner.

Indemnity 229. In the conduct of the affairs of the society, members of the management committee and the manager shall exercise prudence and


Successful Saccos (Ojijo) diligence in the course of business and they may be held jointly and severally responsible for any loses sustained through any of theiracts, or failure to act, whichare contrary to the Act, Rulesand By-Laws or the directions of the general meeting.

230. In this regard: -

231. Every committee member and supervisory committee member shall, in pursuant to the Act,file an indemnity in form set out in the schedule to the Rules whose amount shall be determined by the general meeting and which shall be lodged with the commissioner within 14 days of his electionto the committee.

232. A committee member who fails to comply with the requirement of this By-Law shall automatically cease to be a member of the committee.

233. The management committee may decide the amount and kindof surety bond, or other security, which shall be required of the officers having the custody or handlingfunds or properties of the


Successful Saccos (Ojijo) society.

Delegation 234. The Management Committee may delegate in writing to an officer or an agent of the society such of its duties as it deems necessary but this delegation shall not absolve the Management Committee from its responsibility of running the society in a proper and business like manner.

Legal Standard Of Care

235. In the conduct of the affairs of the society the Management Committee shall at all times exercise the prudence and diligence of ordinary men of business, and shall be held jointly and severally liable for any losses sustained through any of their Acts which are contrary to the Act, Rules andthese By-laws or the directions of the General Meeting.

Authorization Of Expenditure

236. For each financial year, the management committee shallcause to be prepared estimatesof society’s income and expenditure including recurrent and capital estimates for approval by the general meeting at a least


Successful Saccos (Ojijo) three months before the end ofthe preceding year. The management committee shall authorize no expenditure unless provided for in the estimates (Budget)

Records Of Business

237. All business discussed or decided at the Management Committee meetings shall be recorded in a Minutes Book which within one week of the meeting shall be signed by theChairman of the meeting, and at least one other Committee member present at the meeting to verify that matters discussed are a true and complete record of the proceedings.

238. At the next meeting, after approving any alterations or variations, which shall be written immediately below the above signatures and not as alterations to the original record, the meeting shall authorize the Chairman to signand date the final record.

Part 9: Other MattersConfidentiality

239. The executive Officers, members of the Committee and employees of the society, shall hold in the strictest confidence all the


Successful Saccos (Ojijo) transactions with its members,and all information in respectof member’s personal affairs, except to the extent deemed necessary by the Management Committee in connection with the making of loans and the collection thereof.

Sub- Committees

240. The Management Committee may appoint other sub-Committees such as Education sub-Committee, Investment sub-Committee, Credit sub-Committee, etc. Members in such sub-Committees shall be drawn from the Management Committee and no Executive officer shall be elected into the Credit Sub-Committee.

Investments Sub-Committee

241. The Investments Sub-Committee shall consist of three members who shall be members of the Management Committee but none of whom shall be Executive Officers. The Management Committee shallchoose the investments Sub-Committee within 7 days after each General Meeting.

242. The Investments Sub-Committee shall hold such meetings as the business of the society may reasonably require. The Minutes of the


Successful Saccos (Ojijo) investments Sub-Committee shall be presented to the fullManagement Committee for adoption.

243. The Investments Sub-Committee shall carry out market research on the most lucrative Plots to purchase orthe most profitable securitiesto invest in with a view of advising the management committee.

244. The Investments Sub-Committee must prepare Minutesof its meetings indicating clearly their recommendations,resolutions or any Action taken by them for ratificationby the Management Committee.

245. The Investments Sub-Committee shall make such reports to the Management Committee as they may require and prepare a report to be incorporated in the Chairman'sreport for presentation to theAnnual General Meeting.

Education Sub-Committee

246. The Education Sub-Committeeshall consist of not more thanthree members of the Management Committee.

247. The Education Sub-Committeeshall hold such meetings as


Successful Saccos (Ojijo) the business of the society may require.

248. The Vice-Chairman of the Management Committee shall be the Chairman of the Education Committee.

249. The Chairman shall choose the Education Committees within seven (7) after the Annual General Meeting.

250. The Education Sub-Committeeshall be charged with the responsibility of formulating education policies and coordinating all education programmes for the society members and staff on behalf ofthe Management Committee.

251. The Education Sub-Committeeshall keep permanent Minutes of its meetings

252. The Education Sub-Committeeshall make such reports and present Minutes of their meetings to the Management committee for adoption and make a report for incorporation into the Chairman's report to the members at the Annual General Meeting.

The Manager/Employees

253. The society may appoint anyqualified person to be Managerof the society. His powers and


Successful Saccos (Ojijo) duties shall be as assigned tohim by the Management Committee and shall in particular be: -

254. To manage the affairs of the society in a competent manner in consultations with the executive officers.

255. To keep or cause 256. To be kept proper books of records and Registers.

257. To attend Committee meetings and General meetings in an advisory capacity but have no voting rights.

258. To prepare and analyze on aquarterly basis the society’s business plan and budget, in comparison with Actual performance.

259. To represent the society inbusiness transactions and any other transactions as authorized by the Management Committee.

260. To provide all information required by the Supervisory Committee in time.

261. To propose to the Management Committee, new position arising at the society, and the revision of the salary schedule for all the society’s


Successful Saccos (Ojijo) staff.

262. To implement recommendations set forth in the audit report and those recommended by the SupervisoryCommittee.

263. To produce monthly trial balances and ensure on a monthly basis the accounting records are in balances and the individual accounts subsidence are up to date, andthe income and expenditure statement, balance sheet, and delinquency lists are completeand correct. Ensure that booksof accounts are maintained in accordance with the internationally accepted accounting principles and standards.

264. To assist the Management Committee in determining acceptable types of collateralthat can be used to secure loans.

265. To ensure there is adequateliquidity to meet demands.

266. To maintain and provide safe custody of society’s books, accounts, registers, certificates, society seal, cheque books and other accountable documents.


Successful Saccos (Ojijo) 267. To counter sign society’s cheques, contracts and other documents.

268. The committee may appoint one or more deputy managers. If appointed, the deputy manager shall, in the absence of the manager or in case of vacancy in the office of the manager, perform the duties ofthe manager and such other duties as from time to time beprescribed by the management committee. The committee may hire and discharge the employees of the societies in accordance with terms and conditions of service approvedby the commissioner.

Supervisory Commitee

269. This committee shall consist of three members who are not employed by the society or serve on managementcommittee or any other committee of the society.

Election Of Supervisory Committee

270. The exercise shall be undertaken as per by-law.

271. In addition to all qualifications of management committee the supervisory committee members shall be expected to have at least


Successful Saccos (Ojijo) basic accounting knowledge.

272. The terms of the office of the committee shall be three years with one member retiringannually but eligible for re-election.

Supervisory Committee Powers And Duties

273. The following are the powers and duties of the Supervisory Committee: -

274. Check if that the Management of the society complies with the Act, Rules, and the General Meeting resolutions.

275. To make at least once everythree months, an investigationinto the affairs of the society, including an audit ofits books.

276. To present their periodic reports to the Management.

277. To perform the various internal audits, to evaluate internal operation and controls (policies and procedures) at least once every three months, and make procedural recommendations regarding the internal controls. These recommendations will be submitted in writing to the Management Committee on a


Successful Saccos (Ojijo) quarterly basis.

278. At the Annual General meeting, give its report.

279. To receive and investigate any complaint or appeal by members concerning the operations of the society.

280. Check if trial balances andfinancial statements, which the Treasurer and the Manager are required to prepare by theend of the month, are ready and presented to the Committeemembers as required.

281. The Supervisory Committee shall from time to time and not less frequently than once every year cause the statements of accounts of all members to be compared with the records of the Treasurer and confirmed to the members. The Committee shall maintain arecord of all such verifications.

282. The Secretary of the Supervisory Committee shall prepare, and have custody of the records of all Actions taken, including evidence of any audits performed by the Committee.

283. If need be, the committee shall submit its reports to


Successful Saccos (Ojijo) the commissioner.

Liability OfSupervisory Committee

284. In spite of its total independence from the society’s administration, the Supervisory Committee members are jointly liable with the administration for non-performance of duties, whetherresulting from the lack of supervision or negligence in noticing illegal and fraudulent Acts.

Part 10: Books Of AccountsBooks Of Accounts

285. The society shall keep up-to-date and in a proper business- like manner such accounts and such books and records as the Commissioner may prescribe from time to time. The following books and records shall be kept by the society: -

a) A Register of members showing in respect of each member,

286. The name, age, date of joining the society as member,address and occupation.

287. The date on which he ceasedto be a member.

288. The name of his nominee(s)289. b) Minute file giving


Successful Saccos (Ojijo) details of proceedings of the Management Committee, Supervisory Committee and sub-committees meetings

290. A Minute file giving details of proceedings at General meetings.

291. A cashbook showing the details of all monies receivedand all monies expended or paid out by the society.

292. Ledger containing such accounts as is necessary to properly record the business of the society.

293. A personal ledger for each member showing his transactions with the society.

294. Assets (property) register.295. A Register of loans to members showing in respect of each loan advanced; the loan number, name of borrower, the amount borrowed, the purpose of the loan, the due date of repayments and the date repayments were made.

296. A guarantor’s control Register showing the guarantor’s name, members account number, borrower’s name, amount of loan guaranteed, date granted, loaninterest rate and collateral


Successful Saccos (Ojijo) required, date repayments commence and end.

297. A ledger showing deposits and withdraws by members.

298. Such other books /records as the committee may decide orthe Commissioner may prescribe

Annual Accounts

299. It shall be the duty of themanagement committee to cause society’s accounts to be audited at least once every financial year. The audited accounts shall be, after submission to the Commissionerfor registration, be presentedfor adoption at a General meeting.

300. The person to audit the accounts shall be appointed ata General meeting from a list of auditors approved by the Commissioner.

301. In case of failure by the management to cause society’s accounts to be audited within 3 Months after the end of financial year, they shall automatically lose their positions at the next General Meeting and shall not be eligible for re-election for three years unless the Commissioner is satisfied the failure was due to


Successful Saccos (Ojijo) circumstances beyond their control.

302. Where an auditor is not appointed at an annual GeneralMeeting, the Commissioner may appoint a person to fill the vacancy and the remuneration of the person appointed shall be borne by the society.

303. The society shall cause itsaudited accounts to be displayed in a conspicuous place at its registered officeand branches at least two weeks before presentation of the accounts to its members atthe general meeting. Alternatively, the accounts shall be sent to all the members through their last known addresses.

Inspection Of Books Of Accounts

304. All books of accounts and other records shall at all times be available for inspection to all Committee members, the Commissioner or his representative. A copy of the Co-operative Societies, Act, the Rules, the By-laws, the Registration Certificate and members Register shall be available for inspection by any member of the society


Successful Saccos (Ojijo) during the normal working hours.

Conduct Of Business

305. The Management Committee may make such Rules, not inconsistent with these By-laws, as they deem necessary for the conduct of the society’s business. Any such Rules shall be recorded in theMinute book and shall be posted on the society’s noticeboard; and shall come into force when and as determined by the Committee subject to approval by the General meeting.

Authorization To Sign Documents

306. Any three holders of the following offices shall sign all documents contracts and cheques on behalf of the society (one of whom shall either be the chairman or the treasurer).

307. Chairman308. Vice-Chairman309. Treasurer310. Secretary311. Member of Executive Commttee312. The manager shall counter sign all the documents, contracts and cheques. Incase the society has no a manager then any three of the above


Successful Saccos (Ojijo) shall suffice.

Financial Year

313. The financial year of the society shall be from 1st January to 31st December subject to the applicable law.

Disposal Of Surplus

314. Subject to the Act, the netgain or surplus resulting fromthe operations of the society during any one financial year,shall be disposed as follows: -

315. 20 % shall be credited to the statutory Reserve Fund.

316. The balance shall be disposed of as the general meeting may decide for;

317. Paying of dividend on share capital at a rate recommended by management committee and approved by General Meeting on fully paid up Shares.

318. Paying of interest on deposits to members in proportion of

319. value of deposits or business done bythem through the

320. society.321. Reinvestment of contribution in the

activities of the society322. contributed to any charitable or

educational purpose.323. Paying honorarium to both

Management Committee and 324. Supervisory Committee members of

the society who were in office during the


Successful Saccos (Ojijo) year of surplus as the General Meeting may direct.

325. Appropriation to any fund established by the society.

Part 11: Loans Loans To Members

326. All loans shall be for the purpose of acquiring land or accommodation and shall be made to members. Such loans shall be adequately secured and guaranteed by at least twomembers of good standing.

327. The General Meeting as recommended by the Management Committee shall fix the rate of interest on loans. The ratefixed shall not at any time exceed the average prevailing market rate

328. All loans shall be applied for on forms provided by the society for the purpose. The loan application shall be signed by the member and in each case shall set forth the amount applied for, the purpose for which the loan is desired, the terms of repayment, the collateral if any, and such other information as the Management Committee may require.

329. The Management Committee


Successful Saccos (Ojijo) may require a member to sign achattels instrument in a prescribed form if the loan applied for requires further security other than the members deposits, guarantors and Shares. Such decision shall be made at a full Management Committee meeting on recommendation of the Credit Committee and Manager.

330. All applications for loans and the reports of the Management Committee thereon, shall be filed as permanent record of the society.

331. The Committee in the order in which each application is made unless the loan is an “Emergency loan” shall consider loan applications.

332. The Committee may require an applicant to appear before it personally to be interviewed in respect of his application for a loan.

333. All loans made by the society and all the terms of such loans shall be approved by a majority of the Management Committee.

334. The loan repayment form shall clearly state the amountof loan, the rate of the


Successful Saccos (Ojijo) interest, the terms of repayment, and the security.

335. No loan shall be made to any member in excess of the society’s maximum limit or fora period exceeding the one contained in the loan policy.

336. k) Loans may be granted to executive Officers and Committee members of the society provided that: -

337. The loan complies with the By-laws and is not on terms more favorable than those extended to other borrowers..

338. The applicant takes no partin the consideration of his application and does not attend the Credit or Management Committee meeting at which his application is being considered.

339. The society shall prepare aloan policy to act as a guide in loan issuing. This policy shall be regularly updated andapproved by the general meeting.

Security ForLoan

340. The Committee shall ask forsuch security for loan, as it may consider necessary. The Shares, guarantors or depositsof a member may be taken as security.


Successful Saccos (Ojijo) 341. In the event that a borrower is delinquent for a month the Committee will give him a warning letter with a copy to the guarantors.

342. Where he is delinquent for two months, he will get a second letter with copies to guarantors warning him that ifhe has not corrected the situation at the end of the third month it would be recovered from his guarantors,his deposits if any or Shares.

343. Within the limits of loan policy, the Committee shall determine the security required for each loan. The security furnished shall be consistent with the applicablelaw and sound lending policies.

344. The Committee may refuse toaccept as a guarantor a personwho himself is in receipt of aloan or does not qualify as guarantor according to the society’s policy. The society Reserves the right to refuse to grant a loan to a member while he remains liable as a guarantor.

345. A borrower or guarantor mayapply to the Management


Successful Saccos (Ojijo) Committee for change of guarantor(s).

Dividends 346. The Management Committee shall establish the dividend period, rate and mode of payment in accordance with applicable law. The ManagementCommittee may classify share and deposit accounts, and may declare Dividends at variable rates for each type of account. Dividends due to a member shall be credited to the member’s account or paid in cash, at the option of the Committee and subject to approval by the General Meeting.

347. All honorariums payable to the members of the Management Committee will be approved by the AGM. The rate of honorarium shall be reviewed from time to time by the General Meeting to adequately reflect the operational rate.

Repayments Of Loans

348. A borrower may on any day on which the society is open for business, repay his loan in whole or in part prior to maturity.

349. A request for an extension of time in which to pay and


Successful Saccos (Ojijo) any fees or conditions theretoshall be recommended by and approved by the Management Committee only in the most exceptional circumstances. Anyextension so granted shall be executed and signed. The guarantors of such loans should be notified and their approval shall be mandatory.

350. At every regular meeting ofthe Management Committee, the item “LOANS” shall appear on the agenda. At the meeting, the Treasurer shall present a list of delinquent loans showing: -

351. Name of borrower352. Account number353. Date of loan granting354. Date of last payment355. Unpaid balance of loan and loan

accrued thereto.356. Number of month’s delinquent357. Borrower’s share balance.358. Security, guarantors.359. The Management Committee shall take Action to collect the overdue accounts.

Fines 360. For each breach of these By-laws or instructions issuedby the Committee, in pursuanceof General meeting resolutions


Successful Saccos (Ojijo) the defaulting member may be fined an amount not exceeding XXX 20,000/= for each offence or Ksh 100/= for every day theoffence continues.

Part 12: MiscellaneousDisputes 361. Any dispute arising out of

these By-laws or concerning the business of the society that cannot be settled amicably by the Committee or General Meeting shall be referred to the Tribunal.

362. For the purpose of this By-Law, a debt owed by a member to the society or vice-versa, shall be regarded as a dispute.

Miscellaneous

363. No Officers or members shall receive from the societyany payment except the actual costs of traveling and subsistence while working on the society’s business except an honorarium from surplus as allowed in these by-law unlessa member is appointed in writing as a paid servant of the society. This does not apply in case of sitting allowance payable to Committeemembers.



Conflict Of Interest:

364. No Committee member or employee of the society shall in any manner participate in deliberations upon or determinations of any issues affecting his personal interest. The Committee memberor employee shall physically absent himself from the discussion, unless it is determined that the individualhas relevant information to provide. Failure to declare interest shall result in removal from office or termination of employment.

Seal 365. The seal of the society shall be a rubber stamp bearing the words “Seal of XXXCooperatives LIMITED”. The seal shall be kept securely under lock and key by the Treasurer and shall be used only in the presence of at least three Officers authorized to sign on behalf of the society under these By-laws who shall each witness the placement of the seal.

Dissolution 366. The society may be dissolved in accordance with the procedures set forth in


Successful Saccos (Ojijo) the Co-operative Societies Act.

Amendment OfThe By – Laws

367. These By-laws shall be amended in accordance with theAct and the Rules, but no amendment shall become effective until it is approvedand Registered by the Commissioner.

368. A copy of Societies by- laws shall be furnished to every member upon payment of afee as will be determined by the Management Committee.

Non- Members 369. No non-member of the society shall acquire any house or land belonging to thesociety, unless authorized by the Annual General Meeting

Pecuniary Interest

370. No committee member, officer, agent or employee of the Cooperatives shall in any manner, directly or indirectlyin the deliberation upon or the determination of any question affecting the person’s pecuniary interest orthe pecuniary interest of any company, partnership or association in which the person is directly or indirectly interest. In the


Successful Saccos (Ojijo) event of isqualification or determination, such person or committee member shall withdraw from the deliberationor determination. The remaining qualified committee members present at the meetingshall exercise all powers of the committee, provided the number of the committee present including the disqualified persons or committee constitute a quorum.

Acceptance 371. We, the undersigned Executive Officers of the Co-operative society named hereindo hereby accept and adopt these By-laws for and on behalf of XXX Cooperatives LIMITED together with any changes or alterations that have been initialed or signed by us

372. Chairman Name:……………………… 373. Signature:……………………… 374. Date:………………………375. Vice-ChairmanName:…… ……………376. Signature:……………………… 377. Date:……………………… 378. Treasurer Name:…………379. Signature:……………380. Date:…………………… 381. Secretary Name:……………


Successful Saccos (Ojijo) 382. Signature:………………383. Date:……………………

Commissioners Certification

384. CERTIFIED that the foregoing By-laws of XXX Cooperatives have been approved by me and duly registered.

385. Given Under My Hand This...............Day Of..................20..........

386. COMMISSIONER FOR CO - OPERATIVE DEVELOPMENT.


Successful Saccos (Ojijo) FOSA Forms

Standing Order Instructions

Date …………………… To the Manager Sacco (FOSA SECTION) Account Name: …………………………………… Account No: …………………………………… Receive these instructions to debit my account

and make transfers as follows: Amount in figures:…………………………… Amount in words:……………………………………………. Debit my account no: ……………………………………………… with the

equivalent (plus all charges where applicable)Description on my Account: …………………………………………………. Paid to Beneficiary Account Name:

…………………………………………………………………………… Beneficiary Bank & Branch

…………………………………………………………………………… Beneficiary Account NO:

…………………………………………………………………………… Description at Beneficiary’s account:

…………………………………………………………………………… Effective Date: …………………………….. and on the ………………….

day of every Week/ Month


Successful Saccos (Ojijo) This instruction is to remain in force until

(DD/MM/YY) ………………………. Unless cancelled by me/us in writing.

NB: The Sacco does not undertake to effect after the due date, any payment which has not been effect on the due date owing to lack of sufficient funds in the account. All charges are on my account where applicable. I/we shallhave no claim against the Sacco in respect of any loss resulting from any failure on the Sacco, its officials and /or agents to make/unpay/amend/cancel payments on the due date

Remitters authorized signature(s) as per our Sacco Mandate.

For Official Use

Verified By: Approved By:

Name ……………………….. …………………………

Signature ……………………….. …………………………

Date ……………………….. …………………………



Application For Salary Advance I …………………………………………………………………………… (FULL NAME IN BLOCK LETTERS) Hereby apply for an Advance of XXX ………………….

(Amount in figures) ……………………………...… (Amount inwords)

To be paid in …………… monthly installments Plus interest of 5 %

PERSONAL PARTICULARS 1. Staff Number…… Membership Number ……………. ID No

……… 2. Date of birth………………Department …………………… 3. Present work station and postal address

……………………… 4. Office Telephone No ……….… Mobile No …….……..… 5. Email:………………………………………….………

FOR SOCIETY USE ONLY

CREDIT MANAGER This application has been recommended for XXX

…………….………….. Repayable in ………………… installments: If rejected or amount requested reduced, reasons are: -

Comment :…………………………………………………………………..……… Signed:……………………………………………….. Date :…………………………….



APPROVED BY GENERAL MANAGER Approved Amount: ……………………… Comment: …………………………………………Signed …………… Date ……………………… TERMS AND CONDITIONS FOR SALARY ADVANCE 1. Applicants must be holders of FOSA salary

account or Savings account and earn their salary through this account

2. Attach a copy of the most recent pay slip dulycertified by HR personnel

3. Maximum amount shall be half your net salary 4. The advance is repayable in one(1) month

I agree to abide by all the terms and conditions governing this product and any other future amendments.

………………………………………… …………………………………. SIGNATURE OF APPLICANT

DATE:



Salary Remitance Form

TO Paymaster ………………………………….

RE: PAYPOINT PARTICULARS (TO BE FILLED IN DUPLICATE) I, MR/MRS/MISS ……………………………………………..………… STAFF

NO…………………………… DEPARTMENT ……………………………..…………… BRANCH……………………………….………………

PRESENT WORK STATION AND POSTAL ADDRESS …………………………………………………………..

MOBILE NUMBER ………………………………… EMAIL ADDRESS……………………………….……….

Hereby request you to pay all or part sums or money due to me an amount of XXX …………………. (in words …………………………………………………………………………………………………..)In respect of salaries or any money that may become due to me in any form to my Sacco FOSA account

Account No Where the said amount of money paid to me

constitutes an overpayment, I hereby give an irrevocable authority to the society to returnit to my employer whether or not I am in employment with the organization.

I agree that this instruction is irrevocable without the consent of Sacco Ltd and that it supersedes any other request given by me priorto this date.


Successful Saccos (Ojijo) Dated this …………………………… Day of …………… 20……. Member’s Signature ………………………………………………..


Successful Saccos (Ojijo) Application For Salary Advance

I ………………………………………………………………………………………(FULL NAME IN BLOCK LETTERS) Hereby apply for an Advance of XXX ………………….

(Amount in figures) …………………………………………...… (Amount in words)

To be paid in …………… monthly installments Plus interest of XXX%

PERSONAL PARTICULARS Staff Number…… Membership Number ……………. ID No …….......…………… Date of birth………………Department ……………………………………..….……… Present work station and postal address ………………………Office Telephone No ……………….… Mobile Telephone No …………….……..… Email :……………………………….………

FOR SOCIETY USE ONLY CREDIT MANAGER This application has been recommended for XXX

…………….… Repayable in ………………… installments:If rejected or amount requested reduced, reasons

are: - Comment :………………………………………..……… Signed ………………………………………………..


Successful Saccos (Ojijo) Date ……………………………. APPROVED BY GENERAL MANAGER This application has been approved for the amount

of XXX: Comment: …………………………………………

Signed: …………………………….

Date: …………………………….

TERMS AND CONDITIONS FOR SALARY ADVANCE 1. Applicants must be holders of FOSA salary account or Savings

account and earn their salary through this account

2. Attach a copy of the most recent pay slip duly certified by HR personnel

3. Maximum amount shall be half your net salary

4. The advance is repayable in one(1) month

I agree to abide by all the terms and conditions governing this product and any other future amendments.

………………………………………… …………………………………. SIGNATURE OF APPLICANT

DATE:


Successful Saccos (Ojijo) Internal Standing Order

To,The General Manager Account No: …………………………………..Account Type: …………………………………..

Payment Detail Amount( XXX) Total Payment Share Capital contribution Development Loan repayment School fees Loan repayment College fees repayment Emergency Loan repayment Land loan repayment Household loansrepayment IPO loan repayment Instant Loan repayment Others( Specify) Total

I hereby request, instruct and authorise you to draw against my FOSA ACCOUNT to BOSA ACCOUNT


Successful Saccos (Ojijo) FROM the above-mentioned ACCOUNT NO the sum total of XXX _____________________ Amount in words____________________

_______________________________________ the amount necessary for payment of the monthly instalment on the __________ day of each and every month commencing on ____________________ until advised otherwise. All such withdrawals from my account by you shall be treated as though they have been signed by me personally. Any change of amount or dates must be done only after giving me prior notice.

I understand that the withdrawals hereby authorized will be processed by internal Standing Order , and I also understand that details of each withdrawal will be printed on my account statement or/and an accompanying voucher. I agree to pay any bank charges relating to this Authority. This Authority maybe cancelled by me by giving you thirty days notice in writing, sent by prepaid registered post, or delivered to the offices of the above-mentioned Society, but I understand thatI shall not be entitled to any refund of amounts which you have already withdrawn whilethis standing Order was in force if such amounts were legally owing to you.

I understand that if any Standing order is paid which breaks the terms of this Authority, you will make a refund upon application.

Signed on this __________ day of _________________ 20 __________

NAME:______________________________________________________________


Successful Saccos (Ojijo) Address:_________________________________________

____________________ _________________________________________________

_____________________ SIGNATURE AS USED FOR SIGNING CHEQUES __________________________

________________________________ ASSISTED BY CAPACITY



Application To Open A Fixed Deposit

This is to request you to open a fixed deposit account with the following particulars:

Name : …………………………….

Address : …………………………….

Office Telephnone: …………………………….

Email Address: …………………………….

Mobile No: …………………………….

Amount in figures : …………………………….

Amount in words : …………………………….

Period : ……………………………. (days)

Maturity date will expire on : …………………………….

Signature : …………………………….

FOR OFFICIAL USE ONLY Account No. : …………………………….

Interest rate (per annum) : …………………………….

Maturity Date: …………………………….

Authorized Signatory: …………………………….

Date: …………………………….


Successful Saccos (Ojijo) Glossary of Terms

Accounts The society's financial statements, whether prepared in the form of accounts or not.

Annual General Meeting

Meeting held once every year before close of the financial year to hold elections and to undertake such otherbusiness as it is laid down in these by-laws.

Cash Reserve

Means an amount of money, usually a %of total share deposits, usually available on a cash/current account, in a bank, or in the saccos front office (safe, etc), meant for use forwithdrawals, loans and other emergency pay-out. The cash reserve may consist of cash in hand, the current account, the society's savings account, and any fixed deposits.

Commissioner

Means the commissioner for co-operative development and marketing.

Common Seal A rubber stamp, separate from ordinary rubber stamp, in that it hasthe words, "seal of the XXX sacco", which is kept securely under lock andkey by the Treasurer and used only by, and in the presence of, the officers authorized to sign documentson behalf of the society.

CooperativePrinciples

Aset of seven principles which guide saccos, namely (i) Voluntary and openmembership; (ii) Democratic member control; (iii) Economic participationby members; (iv) Autonomy and independence; (v) Education, training


Successful Saccos (Ojijo) and information; (vi) Co-operation among co-operatives and vii) Concern for community in general.

Credit Committee

Group of three to five members who inquire carefully into the character and financial conditions of each applicant for a loan, and of his guarantors, if any, to ascertain his ability to repay to assess loan fullyand promptly the obligations incurredby him; and to determine whether the loan is applications for a worthy purpose and will be of probable benefit to the borrower. The credit committee endeavors diligently to assist members to solve their financial problems.

Deposit Means an amount that a member saves with the society in excess of the minimum shares.

Emergency Loan

Means a loan whose reasons for request by a member would demand immediate settlement.

Executive Officers

Consists of the chairman, vice-chairman, treasurer and secretary of the society elected from amongst the members of the management committee.

Entrance Fee

Means fee paid by an applicant for membership of the society whether or not admission is granted

Financial Year

Means in relation to the society, theperiod in respect of which its profitand loss account laid before it in general meeting is made up, whether that period is a year or not.

Financial Services

Financial Services include investmentin shares, saving deposits, credit,


Successful Saccos (Ojijo) payments services, etc.

Guarantor Means a person or persons who supporta member’s application for loan and undertake to contribute an agreed portion of their own shares in the society to make good any default by the member to repay the loan in full.


A group offficials, made up of chairman, vice chairman, treasurer, finance secretary, and general secretary, who direct the affairs of the society. The management committeemay appoint other committees, such asan education appointment committee, abudget committee, a loan collection committee, etc, consisting of personsdrawn from the general membership of the society.

Member Means an applicant whose name is entered in the register of members inaccordance with by-laws.

Nominee Means a person or persons appointed by a member in accordance with by-law

Original Members

Members who signed the application for registration.

Overdue Loan

Any loan more than three months lat ein payment.

Primary Societies

co-operatives formed at grass root where the members are individuals.

Quorum The minimum numberof members requiredfor a meeting to be held, and a decision in that meeting to be considered binding on even the members who did not attend. It is usually 1/3 of the total people who are meant to attend the meeting.

Refinancing Is when a loanee applies for


Successful Saccos (Ojijo) additional loan, in order to help in repayment of the loan. The loan balance shall be approved only on thesame terms and conditions on which the principal loan was granted, as tointerest rate and repayment period, so that the repayment period shall not exceed the remaining period of the original loan.

Register OfMembers

Means an official list of bonafide members of the society.

Reserve Fund

Means a fund maintained in accordancewith by-law. Reserve fund is to be credited with % of the net surplus ofeach financial year as well as % of entrance fees.

SACCOs Savings and Credit Co-operative Societies (SACCOs) are primary cooperatives which specialize in providing financial services to theirmembers. Financial Services include investment in shares, saving deposits, credit, payments services,etc.

Security Is the asset, or title to asset, required to be surrendered by a loan recipient, to guarantee the repaymentof the loan. The shares and deposits of a member may be taken as security.

Share Means a share in the share capital ofthe society with a nominal value and does not include entrance fee, cash reserve, reserve fund, dividends, deposits or other surpluses.

Special General Meeting

Meeting for all members, held when convened by the Management Committee,or within 15 days of receipt of a


Successful Saccos (Ojijo) written request from at least 50, or one-fifth of the members, whichever is less.

SupervisoryCommittee

Is a group of three to five members, elected by the general meeting, and not members of credit committee, management committee, or any other committee, who hold office only for one year, and make, or cause to be made, at least once every three months, an investigation into the affairs of the society, including an audit of its books and report thereofto the next meeting of the ManagementCommittee, the AGM, and commissionerfo cooperatives.

Transfer When a member gives his shares or deposits to another member or any person whose membership has been approved by the management committee.A member proposing to transfer must have cleared debts due to the society, whether such debt is due forpayment or not, at the time of transfer or transfers.

Transfer Fee

Money paid by a member transferring shares or deposits, to the society.



Collecting,Protecting,Investing,Lending,

Supporting .

-Ojijo