Thursday, October 10, 2013 / The Standard

ADVERTISERS ANNOUNCEMENT / Page 25

Egerton University SACCO Society Limited

Together We Prosper

Ofcial Opening of Egerton University SACCo Plaza

oN 11TH OCToBeR 2013
members are provided with required services. As resolved in the last Annual General Meeting-2013, members approved the increase of share capital from a minimum of 2,000 to 10,000. Members are encouraged to update their share capital accounts to enjoy full status and benets of being a Sacco member. The new share capital is also a requirement by SASRA standards and it not only shows the seriousness of a Sacco but makes the Sacco attain a rm ground. Besides it will enable the Sacco to do many things and stand rm withstanding unpredictable nancial uncertainties. As we move closer to the Kenyas Vision 2030, Egerton University SACCO committed to attaining it by empowering people around us. Together with the government channelling the youth and other enterprise funds through the Sacco is an effective way of ensuring efcient ow of nances to the target citizens. as attainment of the vision of the SACCO. The success of Egerton SACCO is not only a result of the laid down policies and strategies but the sanity brought by Sacco societies Regulatory Authority (SASRA). SASRA requirements and set standards that govern the cooperative Sacco have been a big impact in ensuring effective management and rmness of the Sacco. The new complex building will in a great way, make Egerton University SACCO prosper and full its vision of being a leading SACCO locally and globally as well as its corporate social responsibility. This is a sound investment that opens Egerton University SACCO to the outside world, with a strength and stability through straight forward strategies. The new complex will improve our services and ensure compliance set standards. Our staff will have a promising environment to carry out their responsibilities with ease and efciency to ensure that all our

MESSAGE FROM THE CHAIRMAN

MESSAGE FROM THE CEO

passed the initial strategic plans by 2015 after membership increase of 150% therefore a need for review of the strategic plans. To meet the ratios required by SASRA, increase of share capital from2000 to 10000 will enable Egerton University Sacco to raise share capital from over 8.2 Million to over 30 Million to meet the minimum requirement. The new policy will also assist to improve liquidity and future expansions. The Sacco is now focusing on increasing the marketing team by adding members that will ensure the Sacco gets outside recognition and become the strongest university SACCO. Egerton University SACCO has seen its success throughh supportfrom various partners such as Co-operative bank, CIC insurance, KUSSCO and Computer Castles.

AGGREY TSHOMBES EU SACCO BOARD CHAIRMAN gerton University SACCO Ltd complex building is a new venture that shows the Saccos move in the right direction. It reects the Saccos exemplary performance for the past 38 years and a guide towards success as well

VICTOR RUTTO EU SACCO CEO gerton University SACCO Ltd has been on a rapid growth despite the initial location at Egerton University compound which was not a strategic position. With the new complex, the growth of membership has sur-

SIMIYU MATETE SUPERVISORY BOARD CHAIRMAN

inally the time has come and I am pleased to witness the opening of the Egerton University SACCO banking plaza after many years of self-denial by members who ensured funds were made available to complete the project. It is important to note that today does not just mark the completion of the banking plaza but also a complete fulllment of the requirement by the SASRA having been awarded a certicate of operation as a deposit taking Sacco in May 2012. I wish to encourage the members

MESSAGE FROM CHAIRMAN SUPERVISORY BOARD

of the public to join EU SACCO and enjoy a wide range of products and other services. The Sacco enjoys high caliber of professional (management staff ) and high technical capacity that have made the Sacco offer a wide range of services, loans and also dividend and interests ranging between 13 to 14 percent. In conclusion, I wish to congratulate the general membership elected leaders, staff and various stake holders for team work, persistence and commitment that nally made the completion of the project possible.

ooperatives are based on the values of self-help, self-responsibility, democracy, equality, equity, and solidarity. Good performance of co-operative enterprises strengthen capacity to access markets, create jobs, generate income, reduce poverty, provide social protection and give their members a voice and representation in society just like Egerton University SACCO has done.

MESSAGE FROM CO-OPERATIVE ENTERPRISES

Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their cooperatives. They inform the general public particularly young people and opinion leaders - about the nature and benets of co-operation. I therefore congratulated Egerton University Sacco for this great achievement of building a magnicent building. Xavier Lugaga Njoro Sub-County Co-operative Ofcer

Society now has a one-stop shop facility for members

Egerton University SACCO Ltd is proud to officially commission the new Sacco Building office situated in Njoro, near Egerton University. The new complex is among the greatest steps that Egerton University Sacco has over the years successfully achieved. It is a new venture that shows the Saccos commitment to its mission and objectives and as well as a move in the right direction. The complex provides a standardized banking hall as required by the Sacco Societies Regulatory Authority (SARSA). The two storey building complex has a provisional space for a cafeteria and small businesses in the first floor and a supermarket at the basement and the rest houses Sacco bank and offices. The complex cost about 110 Million and is situated 4km from Njoro trading centre. The complex also targets over Kshs 300,000 per month from the business premises to be leased for other businesses within the complex. About half of the building, measuring 10,000 square feet, will be leased out and its revenue used to pay various monthly bills. Egerton University Sacco Ltd was formed and registered in March 1975 under the operative Act Cap 490. Its initial membership was 40 but currently stands at 4500 with an Asset base of over Kshs 1.3 Billion. It was first licenced by SASRA on June 2012 to carry out deposit taking business to operate business in Kenya. With the operation of Front Office Services Activity (FOSA), Egerton University SACCO Ltd has taken its rightful position in the community by introducing MICRO-LENDING activity and strategically positioning itself to guide the community in dealing with poverty to help them prosper. Since its inception Egerton University SACCO has experienced growth in its membership, share capital, members and advances. The share capital by the year 2012 was Kshs 7.4 Million with over Kshs 723million members deposits and a loan portfolio of Kshs 955 Million. The favourable business environment that Egerton SACCO is operating in has

Board Members

George Maranga Vice Chairman

Kepha Orina Hon. Secretary

Joseph Mwangi Treasurer

Tims Kerry Member/ Kisii Univ. Rep

Samuel Owidi Member /Laikipia Univ. Rep

Joyce Ondieki Member

Prof. Anthony Kibe Member

Chester Alivitsa Member

Augustine Ndenda Supervisory Board Secretary

Abraham Koech Supervisory Board Member

Page 26 / ADVERTISERS ANNOUNCEMENT

Thursday, October 10, 2013 / The Standard

Egerton University SACCO Society Limited

Together We Prosper
enabled it to maintain favourable interest rates of between 12% and 16% for its various loan products. Most members have taken advantage of this opportunity to take Sacco loans which resulted in an increased overall credit uptake in the society, while others who were lured into taking other financial institutions loans are bearing the pain of servicing loans with high interest rates of up to25%. Egerton University SACCO, as a result, has continued to register growth performance in most of its areas of operations and by September 2013, total loans issued stood at 64 Million up from 54.6 Million by May2013. The turnover performance for the previous year was 215.9 Million up from 187.7 in 2011 whereas the turnover performance in 2010 and2009 was 128.6 Million and 99.5 Million respectively. Whereas the dividend rate is 14%, interest on deposit rate is 13%. Other investments are currently at 34.6 Million. Members are encouraged to increase their shareholding in the Sacco to reap more dividends for 2013 from the 14% rate. Share Capital Account- In order to become a member of Egerton University SACCO each member must purchase a minimum of 100 obligatory shares of Kshs 100 each worth ksh.10,000 for both category A and B. The deposit is of a minimum amount and is non-refundable. The rate of Dividends on these shares is higher than the returns paid on other savings accounts. The dividend earned on these accounts will be prior to the payment of regular savings. Shares shall not be refundable or assignable as collateral for a loan, but a member may transfer his shares to other members on leaving membership of the Society. Non-withdrawable deposits accounts-This is the primary saving savings account offered to the membership. This account attracts competitive interest payment (13 % for 2012). Higher interest will be paid on accounts with larger balances. The funds in this account may be used to secure loans. A member may be refunded the amount saved in his nonwithdrawal deposit account within 60 days after giving a written notification. Salary/Regular savings Account- Salary/savings help you settle financial obligations conveniently. Members also channel salaries through these accounts. Features include opening of Kshs 500,minimum account operating balance of Kshs 1000 only, SACCOLINK ATM card, free deposits to account, salary processing , act as the receiving account for loan disbursement, earn interest on savings, no account maintenance fees, minimal cash withdrawal fees, bankers cheques, cheque clearance and standing orders. Micro lending/Business Accounts and Welfare/Group

Egerton University Transport Welfare Bus

account and benefit through savings and acquiring credit. Features include a minimum account operating balance of Kshs 500 only. Fixed Term Deposit (MediGold) Account- The deposits in this account are for a stated amount, until a stated maturity, for a stated interest rate. The longer the maturity period of the deposit the higher the interest return. The SACCO offers 3 months, 6 Dividend capitalization is the process of retaining dividends earnings in order to boost your Sacco share or deposits. It involves reinvesting part or whole of your dividends/interest to Sacco share capital or deposits for higher returns in the future. Jenga Juniour Account- This account is designated to provide a savings facility for parents/Guardians to save for their children who have not attained the age of 18 years. The accounts will cultivate and encourage the culture of the saving and financial awareness in your child. It will also help you to plan for your childs future financial needs. The account will be in the name of the child but the parent is the sole operator of the account.

maximum period of 12 months, interest rate of 1.25% reducing balance and maximum amount deposits multiplied by 3. Instant /Overdraft- maximum periods of 10 months, interest rate of 4% per month reducing balance and maximum amount of deposit multiplied by 4. Product loan- Maximum period of 20 moths, interest rate of 10% to 25% straight line based on period and maximum amount deposits multiplied by 4. Business/Welfare loansmaximum period of 12 months to 36 months, 15% straight line and maximum amount deposits multiplied by 3.

SHARED SUCCESS EMMAH SCHOOL

Major (Rtd) Martin Wandahwa and Mrs Mary Wangare Wandahwa also retired major, proprietors of Emmah School shares the success of Emmah School attributed to the loans from Egerton University SACCO. As the Proprietors of St. Emma school, we approached Egerton SACCO for a loan to complete various projects that had been difficult for us some time. Egerton SACCO processed the loan within 3 weeks and we were able to complete the school projects within a month. Emmah school, with a population of 300 pupils, now enjoy the facilities including ablution blocks. As technology becomes a household in primary education, we are in a process of seeking for more loans from Egerton SACCO, at least 0.5Million to finance the school computer lab facility, and other modern facilities that comes with digital world. The government looks forward to issuing laptops to every pupil in public schools using tax payers money which is also contributed by the private school owners and we want to provide the same services to the learners in our school. Egerton University SACCO loans flexibility with friendly rates is what has kept our projects going and our school growing. We feel that the 15% interest rate flat line, 14% dividends and 13% rate for profits is much better than bank rates. Absence loan insurance and of 10% hidden charges which are common with banks is fair to small and medium enterprise and businesses.

OUR SAVINGS PRODUCTS

The accounts will cultivate and encourage the culture of saving and nancial awareness in your child
Accounts-These accounts give Business people (Class B) opportunity to transact financial obligations while they give businesses attention. Any Group, Welfare, association, club, or similar organization is eligible to open Group months and1year maturities. These funds may be used to secure a loan. The loan maturity shall match the deposit maturity. The Interest and rate is fixed until maturity will be paid upon for all the deposits. Dividends Capitalization-

OUR CREDICT PRODUCTS

Normal Loan- Maximum period of 48 months, interest rate of 1.25% per month, reducing balance and maximum amount deposits multiplied by 3. E-Loans (Emergency Education)-

ARC Hotel, Egerton

Beautifully serene situated within the Egerton University, Njoro Campus with expansive grounds, the ARC Hotel is an ideal venue for Seminars, Team Building Activities, and Weekend Retreats. For sumptuous meals, healthy work-outs at our Gym and Swimming Pool will crown your stay with us.

We congratulate Egerton University SACCO for their official Launch of New Plaza

>> Egerton University SACCO loans exibility with friendly rates is what has kept our projects going and our school growing.

EGERTON UNIVERSITY TRANSPORT WELFARE

Egerton University Transport Welfare Buses is a celebrated success by Egerton University staff in Transport department. The transport welfare venture started with an initial membership of 58. Members thought it wise to increase the transport availability for students and staff travelling between Nakuru Town and the University and also for Egerton University Students trips. Being members of the Egerton University SACCO, the welfare approached the SACCO for a total of 3.8 Million to purchase a 61 seater bus. From the members savings of 730,000, the welfare was able to access more funds to finance

For Reservations: Tel: 020 2588772 Email: archotel@egerton.ac.ke

Thursday, October 10, 2013 / The Standard

ADVERTISERS ANNOUNCEMENT / Page 27

Egerton University SACCO Society Limited

Together We Prosper
the procurement of the first bus and with the increasing demand; the welfare approached the Sacco for more funds which they used to purchase a second bus within a period of 1 year. The welfare now looks to purchase a third bus while repaying about 8.6Million for the first two buses. Welfare transport Buses offers a subsidized cost of transport compared to Public Service Transport vehicles (Matatus) in the association currently enjoys a share capital of Kshs 60,000 with projections to raise them to Kshs 200,000 by the year 2015.Njokerio Self Help Group started in 2011 with a membership of 7 and a total savings of Kshs 20,000 only in its SACCO account. The group approached Egerton SACCO loan officers for advice on how to make a profit from their savings which had risen to 300,000 by last year. They were given a Kshs 1.5

SACCO registers tremendous growth

Who we are Egerton University SACCO Ltd was formed and registered on 10th March, 1975 under the Cooperative Act Cap 490. Registration No. CS/2314, with an initial membership of 40. Egerton SACCO was rst licensed on 15/06/2012 by the Sacco Societies Regulatory Authority, (SASRA) to carry out deposit taking business in Kenya. We have already renewed our license to operate business for the year 2013. The SACCO draws its membership from diverse institutions namely Egerton, Kisii, Laikipia, Kabarak, Masinde Muliro, Narok, Chuka, Kabianga, Karatina, Pwani and Mount Kenya universities, RVIST, Nakuru County, AMU press limited, Individual business people, Welfares and groups, several primary and secondary schools and members of the community. MANAGEMENT AND GOVERNANCE The SACCO affairs are governed by the Co-operatives Societies Act, the SACCO Act, its by-laws, policies and procedures. We have 9 board members and 3 supervisory members. The SACCO has 32 staff members lead by the CEO and a management team of 6 management staff who are also head of departments. The Board of Directors are responsible for policy decisions while the Supervisory Committee (SC) ensures provisions of the governing Acts, Society by-laws, policies and procedures are adhered to. The board of directors has in place 4 (Four) major subcommittees namely:The Finance & Investment Committee: Which works closely with the Chief Executive Ofcer to offer policy direction in the day to day affairs of the society; The HR & Administration Committee: which is responsible for governing and directing HR & Administration fuction of the society; The Business, Strategy & Technology: Which is responsible for ensuring that all members are kept up to date on relevant issues, products and services, and educated on their roles within the Society; Audit & Risk Management Committee: Review the nancial position of the Sacco, the adequacy and effectiveness of its risk management and internal control systems. The board of directors has appointed a Chief Executive Ofcer who is responsible for the day to day running of the Society. To operationalise its functions the Society has established several departments which include; the Administration department, Finance department, Credit department, Marketing department, ICT department and Internal Audit department. FUTURE PLANS AND STRATEGIES A. Growth in members To Increase membership to 10,000 by 2014 Open common bond Strengthen members recruitment Increase members retention B. Product development and marketing To increase patronage of SACCO products and services Diversify SACCO products and services Enhance awareness of SACCO products and services to existing and potential members Strengthen marketing operations Financial sustainability C. To increase institutional capital to above 10% of the total assets by 2014 Ensure maximum return to the SACCO Enhance loan recovery Increase the available funds for lending / Investments D. Operational efciency To reduce and maintain operational costs to below 3% total assets by 2014 Enhance proper use of ICT Implement cost reduction measures Review business processes E. To increase members participation Enhance members education Increase member attendance F. Governance in SACCO & operations of AGMs To enhance corporate governance Adherence to code of ethics and best practices Staff empowerment G. HR management To attract, develop and retain a highly skilled, motivated and disciplined human resource Enhance staff motivation Strengthen staff skills Enhance staff welfare H. Performance management To enhance performance management in the SACCO. Implement a performance management system (performance contract). We highly appreciate the cooperation and support from various stakeholders who made this supplement possible, namely Coop Bank, KUSCCO, CIC Insurance, Merica Hotel-Nakuru, Egerton University, ARS Hotel and Imarisha Sacco, among others.

Njokerio Self-Help Group Members outside the groups building in Njokerio Village near Egerton University same root charging only a fare of Million loan to purchase a parcel of Kshs 50 between the Nakuru town Land (100m by 50m) near Egerton and the University. The buses are University in December 2012 at a cost also hired to local community for of Kshs 500,000 and construct transport services as well as building with several rental rooms students and staff. It is an effort that which currently provides has been appreciated by Egerton accommodation to the increasing University management due to its Egerton University students. wide outreach. The hostel currently fetches over Kshs 70,000 per semester and the NJOKERIO EGERTON GATE SELF HELP group looks forward to investing in GROUP real estates by utilizing its membership and low interest loans from Egerton Njokerio Egerton Self Help University SACCO. The groups Group is happy with Egerton strategic plans ending 2015 is to raise University SACCO loans for its Kshs 4 Million to expand the hostels growth and success. Each individual targeted at the increasing number of member from the 22 member University students.

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Tuesday, October 8, 2013 / The Standard

Egerton University SACCO Society Limited

Together We Prosper
Society performance The society has realized tremendous growth over the years. The favorable business environment in which Egerton Sacco is operating in has enabled us to maintain favorable interest rates for our various loan products. Most members have taken advantage of this opportunity to take Sacco loans which resulted in an increased overall credit uptake in
MEMBERSHIP SHARE CAPITAL MEMBERS DEPOSITS LOAN PORTFOLIO

special purpose savings. The rate paid will be slightly higher than the regular Deposits rate paid. This is the incentive given to the members because these funds are nonrefundable and are the principal investment for members. Members who resign from the Sacco can retain share capital as an investment and continue earning dividends on them for a life time or sell them to existing members.
2011 3130 6,959,113.03 652,901,815.86 905,077,667.10

and update their Nominees with the Sacco. In case of more than one nominee, indicate percentage allocation to each nominee. For polygamous marriages kindly ensure that all the dependents are catered for to avoid a tussle when you are gone. Sacco Assurance Egerton Sacco has extended its partnership with CIC Insurance Group with an intention of adding
2009 2648 5,296,000.00 497,695,829.60 535,713,159.60

2012 3234 7,386,753.25 723,625,865.48 955,224,481.43

2010 2654 6,108,155.35 564,393,800.15 625,509,502.75

the society. As a result the society has continued to register growth performance in most of its areas of operations. Share capital review As resolved in the last AGM-2013, members approved change of value per share from Kshs. 20.00 to Kshs 100.00 per share and increased the minimum share capital from Kshs. 2,000.00 to Kshs. 10,000.00. This simply means that for you to become a full member of Egerton Sacco, you need to subscribe at least 100 shares worth Kshs. 100.00 each, totaling to Kshs. 10,000.00 worth of shares. Members have been given a timeline of at most 20 months to upgrade their share holding to be in line with the amendments. The dividend earned on share capital will be paid prior to the payment of regular Deposits or

Welfare services All Sacco loans apart from the Business loans are fully insured against death and permanent disability. The insurance premiums are paid for by the Sacco and members are exempted from paying that fee. Upon death or permanent disability of a member all his/her outstanding loan balances will be paid by the insurance company. Also upon death of a member, the SACCO pays a last respect contribution of Kshs. 20,000 to his/ her next of kin for burial arrangements. Finally after clearance of the outstanding loans, the members next of kin is refunded the deceased member entire Share deposit contributions. Members are therefore encouraged to frequently conrm

value to our members by offering affordable and need based insurance products. Under this concept Egerton Sacco is an agent of insurance products to Sacco members at subsidized premiums as compared to the market rates. The Sacco is also developing an insurance premium nancing product to cater for those members who cannot afford to pay premiums at once. The product will enable you pay your premiums in installments and with ease. Products under the partnership: Competitive comprehensive motor insurance at a rate of 3.75 %. This is a great discount from 7.5% which is the market rate. Domestic Package Personal Accident Cover Life and Disability Cover Fire & Perils:, Burglary

Road Show ag off.

Biashara Salama Funeral Expense Cover Individual Medisure (In-Patient only) Jipange Pension Individual Life (Education & Investments policies) Students on industrial attachment covers. SACCO LINK ATM VISA CARD and Mobile banking Egerton Sacco in conjunction with Co-op Bank now operates an ATM link. Our members can withdraw cash at any Co-op Bank ATM and at all other Visa branded points in Kenya and abroad. It enables one to shop from supermarkets and make utility payments among other facilities. Members can also withdraw and deposit money using the ATM card through Co-op kwa Jirani agency. Egerton Sacco is on M-banking platform. M-banking is a state of the art banking system that enables members to transfer money to and from their Sacco Account, send enquiries, pay for utilities and other banking transactions through their mobile phones. Our members are now able to access their funds & our Sacco facilities regardless of geographical location and beyond the conventional business hours. Services under mobile-banking. Depositing from Sacco account to M-pesa . Transferring funds from M-Pesa to Sacco account. Loan repayments. Airtime purchase. Payment of utility bills e.g. electricity and water. Balance enquiry and mini statements.