Cooperatives & CommunitiesEast Africa

Kenya: Top SACCOs named

NAIROBI - Kenya National Police Deposit-Taking [DT] SACCO was picked as the best managed SACCO in the country during the 101st International Day of Cooperatives celebrations, marked as Ushirika Day in Kenya.

According to an analysis report on the Ushirika Day awards, adjudication conducted by the Coop Consultancy and Bancassurance Intermediary Limited [CCBI], a subsidiary of Co-operative Bank Limited, Kenya Police DT SACCO, emerged in the top position.

CCBI used a combination of 7 pillars to arrive at this award after the adjudicator distributed questionnaires through email to 823 societies. 

Out of these, 107 responded and submitted their questionnaires electronically. The list of participants included 74 licensed Deposit-Taking SACCOs, 25 authorised Non-Withdrawable Deposit-Taking Saccos, 4 Non-SASRA regulated SACCOs, three housing and investment cooperative Societies and one Marketing Cooperative Society. 

This marked an increase of two cooperative societies from 105 who participated in the adjudication process in 2022.

Kenya Police DT SACCO emerged as the best managed SACCO countrywide after CCBI looked at its membership, financials, credit administration, products and services, governance, ICT status, and human resource management.

In the best managed SACCO Countywide category, Kenya Police DT SACCO- which scored 72.08%, was followed by United Nations DT SACCO [71.35%], Cooperative Bank Non-Withdrawable DT SACCO [71.13%], Simba Chai SACCO [70.77%], Hazina DT SACCO [70.67%], Safaricom DT SACCO [70.47%], Kenpipe DT SACCO [70.30%], Ollin DT SACCO [69.89%] and Tembo DT SACCO [68.95%].

In the best managed Non-Deposit Taking SACCOs Countywide, Coop Bank emerged winner, followed by Balozi, AMREF, Communication, Ukaguzi, SHOFCO, Shelloyees, Banki Kuu, Mhasibu and BAT Regulated Non-Withdrawable Deposit Taking SACCO Society Limited.

Kenya Highlands DT SACCO was the best managed in the agriculture-based SACCOs category, followed by Ndege Chai, Bingwa, Yetu, Muki, Nawiri, Kimbilio Daima, K-Unity, Tai and GDC SACCO Society Limited.

The best managed community-based DT SACCO category was led by Acumen, followed by Times U, Dimkes, Kingdom, Universal Traders and Centenary SACCO Society Limited.

The top 10 best in capitalisation DT SACCOs Countrywide category were led by Bingwa, followed by Muki, Mombasa Port, Jamii Yetu, Reli Non-Withdrawable DT SACCO, NACICO, Kenya National Police, Nawiri, Nyati and K-Unity SACCO Society Limited. In this category, the adjudicators considered SACCO’s total shareholders’ funds, which comprise share capital and reserves as a percentage of total assets.

It also looked at the society’s retention rate of surplus, as reflected in the institutional capital. These parameters encourage SACCOs not only to grow their share capital but also to retain more of their earnings to build on their institutional capital for growth.

The top 10 best in Capitalisation Non-Withdrawable DT SACCOs were led by Reli, followed by KAG, SHOFCO, Kewisco, Co-operative Bank, Unga, Shelloyees, Ukaguzi, Kentours, and Ketepa regulated Non-Withdrawable DT SACCO Society Limited.

The top 10 best SACCOs in deposits management category were led by Shelloyees NWDT SACCO Limited, followed by Coop Bank NWDT SACCO, Kenpipe DT SACCO, Balozi NWDT SACCO, Ukaguzi NWDT SACCO, Banki Kuu SACCO, Communication NWDT SACCO, Kimisitu DT SACCO and AMREF non-withdrawable DT SACCO Society Limited.

In this category, the adjudicators considered a combination of average deposits per member, the growth in deposits over the last year and deposit utilisation. The scoring on average deposits was based on the average of all SACCO participating in the adjudication. Deposit utilisation focused on the ratio of loans to deposits, with employer-based SACCOs scoring the highest.

The top 10 Best SACCOs in credit management countrywide were led by Simba Chai, followed by Ngárisha, Tabasamu, Faridi, Co-op Bank NWDT SACCO Society Limited, Ukaguzi NWDT SACCO, Kenya National Police DT SACCO, Cosmopolitan DT SACCO, Communication NWDT SACCO and Ushuru DT SACCO Society Limited. 

In this award category, SACCOs of various sizes, types, and categories were scaled based on their growth in loans, loans-to-deposit ratio, sources of funding [external and internal], percentage of members with loans, default rate, and the loan processing period.  

Equity NWDT SACCO Society Limited emerged as the top countrywide as Most Efficient in terms of its cost-to-income ratio, loan processing efficiency and budget utilisation. It was followed by Ukaguzi NWDT SACCO, Coop Bank NWDT SACCO, Hazina DT SACCO, Tembo DT SACCO, BAT NWDT SACCO, UN DT SACCO, Law Society of Kenya SACCO and Shirika DT SACCO Limited.

The top 10 best SACCOs countrywide in risk management was led by Mentor, followed by Mwalimu National, Yetu, UN SACCO, Kenya Highlands, Safaricom, Tower, Ukulima, which tied with Stima and Bandari, which tied with Bingwa, Nawiri and Magadi, DT SACCO Society Limited. 

The best risk management parameter considers a society’s Insurance coverage, business/operating policies in place and Information security.  

Safaricom DT SACCO Society Limited emerged top in the Best in technology optimisation category countrywide after it led was declared to be the best in management information system in place, website services, technologically enabled communication and technologically enabled products and services.

Safaricom was followed in this category by United Nations SACCO, Stima DT SACCO Society, Mwalimu National SACCO Society, Jamii SACCO Society, Trans Nation SACCO, Yetu DT SACCO, Nafasi DT SACCO Society, Kimisitu SACCO Society and Kenpipe DT SACCO Ltd. 

The societies that excelled in this category were noted to have technologically enabled products such as mobile banking, ATM services, Electronic Funds Transfer [EFT], Real Time Gross Settlement [RTGS, pay bill services, international funds transfer services such as money gram and loans through the mobile phones. 

They had also embraced modern methods of communication such as bulk SMS, WhatsApp, Facebook, Twitter and teleconferencing. Their members were also able to access information and services through their web services, such as the members’ portal.

The top 10 most improved SACCOs were led by Karura Community SACCO, followed by SHOFCO SACCO, Kenya USA Diaspora SACCO, Ollin SACCO, Ngárisha SACCO, Telepost, Communication NWDT SACCO, Balozi NWDT SACCO, Umoja Wendani Community-based NWDT SACCO and NSSF SACCO. 

The most improved parameter considered growth in membership, shareholders’ funds, deposits, assets, income, loans disbursed and loan portfolio balance.

Source: Coop News

https://thecooperator.news/kenya-real-estate-takes-biggest-share-of-sacco-loans/

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