MWALIMU NATIONAL | i
Member Driven Experience. Opportunities. Convenience.
The Official Newsletter 2016
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Editorial
Welcome to the inaugural issue of the Mwalimu National Newsletter under the new Brand identity.
The Society has operated under that comprised of the Board of Directors highlight new ways through which the the old identity since inception and staff members - who ascribe to Society is handling her resources and and there was need for a rebrand Performance Management System tools. investments through the new arm called to realign with the ambitious It is with this in mind that the National Treasury and investments. plans already rolled out. Chairman sheds light on the present Society performance as well as milestones To wrap it up, we have compiled a list of Mwalimu National mandated Brand achieved through roll out of key projects key questions members have been asking Strategy Design (BSD) to bring out under the guidance of the Society more frequently. We even go further to meaning from both the old and new Strategic plan 2014 – 2018. enlighten them on essence of investments identities. Some of the merits to be and time management as well as realized but not limited to include, to get In our 2015 education programmes, we inspirational nuggets that are found a grasp on the competitive environment, managed to reach out to members from nowhere else but in this issue. enhance Society growth, reach out to new various parts of the country. This was markets as we appeal to existing ones and through arranged meetings with their James N. Mugandah so forth. The Society also rolled out a new representation (delegates), who were Marketing Research & Corporate Affairs Management Information System (MIS) educated on various concerns to do with alongside the rebranding exercise. leadership and healthy living.
Our intention is to build an enlightened Members can as well get to read through Society Membership whose expectations this edition to understand how they are exceeded upon by our dedicated team benefit from prorata. We go further to
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From the National Chairlady
It is my great pleasure to extend heartfelt greetings to the readers of Mwalimu National Newsletter.
We hope you enjoy reading the local, personalized service that is the about the recent activities and hallmark of Mwalimu National. It is this achievements of your great Sacco personalized service that set us apart and all its subsidiaries. from other Saccos.
So far, this year has been very exciting We believe in a transparent, holistic and fascinating for us. Our noble mission approach ensuring that key stakeholders of growing this Sacco to exceed the are kept informed whilst issues are dealt expectations of our members as we reach with immediately by our experienced out to more members. Is still on course. Board of Directors and staff. For sure we could not have achieved this kind of growth without the dedication of Our products and services are member and all our current members. Our heartfelt industry-driven, meaning they are designed congratulations and appreciation go to to meet the unique requirements of our you for all the excellent work you have members’ opportunities and markets done and the support you have given. whilst providing them with a convenient and cost effective experience. That is the Since establishment in 1974, we have reason as to why I find this as a great always been fortunate that our aspirations honor for me to present to you numerous are fulfilled. But as with any expanding initiatives that we believe will enable us Teresa Mutegi, HSC organization, Mwalimu National requires achieve important milestones spelt in National Chairman more resources, both financial and human. the five year strategic plan document the We believe in helping our members Society currently runs under attain superior long-term profitability and growth by delivering the depth and Having said that, it is my pleasure to breadth of resources and experience only report on the current society performance a national firm can provide along with as below:
Our Since establishment in 1974, we have always been fortunate that our aspirations are fulfilled. But as with any expanding organization, Mwalimu National requires more resources, both financial and human.
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1. Financials The figures below relating to 2015 are audited based on our management accounts.
STATEMENT OF COMPREHENSIVE INCOME
AUDITED 2014 AUDITED 2015
Turnover/Total Income 3,878,013,976.00 4,228,000,127
Interest Rebate 2,026,228,064.00 2,323,233,024
Interest on Withdrawable deposits 56,157,336.00 77,034,351
Interest on borrowed funds 40,004,351.00 223,349,398
Operating Expenses 1,188,633,796.00 1,231,895,908
Net Surplus before Dividend and Tax 566,990,429.00 372,487,072
Proposed Dividends 133,949,793.00 141,825,128
STATEMENT OF FINANCIAL POSITION Deposits portfolio
AUDITED 2014 AUDITED 2015
BOSA –Deposits 18,305,735,707.00 20,409,305,588
FOSA – Savings 1,472,361,459.00 2,140,337,289
Business Loans - savings 125,037,240.00 149,692,000
Total 19,903,134,406.00 22,699,334,877
Loans portfolio
AUDITED 2014 AUDITED 2015
BOSA 19,691,023,811.00 19,681,198,468
FOSA 1,963,497,065.00 2,247,258,285
Business Loans 363,715,934.00 446,421,923
Total 22,018,236,810.00 22,374,878,676
2. Strategic Plan 2014 -2018 To ensure continuity in growth, profitability and development agenda, the Society developed 8 (Eight) Strategic Objectives anchored on 4 (four) pillars of the balanced score card that are to be pursued in a five years period 2014 to 2018. These Strategic objectives include: i. To increase the Society’s Membership from 57,277 in 2013 to 87,585 by 2018. ii. To increase Society’s Saving Portfolio from Ksh18.56billion in 2013 to Ksh32.6 billion by 2018. iii. To increase the Society’s Loan Portfolio from Ksh.20.96 billion in 2013 to Ksh31.9 billion by 2018. iv. To increase the Turnover from Ksh3.5 billion in 2013 to Ksh10 billion by 2018. v. The society membership withdrawal reduced from 3% in 2013 to 2% in 2018. vi. To Manage Risk Exposure in the SACCO. vii. To strengthen Information Management Systems in the Society over the Plan period. viii. To improve Service Delivery to our Customers.
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Our 2015 Performance contract was derived from the above and our performance subject to conclusion of the 2015 audited was as below:
OBJECTIVE % ACHIEVEMENT
1 Customer Focus – Membership 109%
2 Savings portfolio 83.9%
3 Loans portfolio- Net growth 20%
4 Turnover 100.4%
5 Membership retention 101.5%
6 Risk Management 86.8%
7 MIS 51%
8 Service Delivery 64.2%
Total 616.80%
Average Achievement 77.10%
Key Projects: As part of the strategy, key projects included: • Construction of Mwalimu Head Office • Bank and brokerage investment • Housing Scheme at Kisaju • Management Information System. • Rebranding the Society i). Construction of Mwalimu Headquarters Let me update you on the progress so far made in your Mwalimu Towers head office construction. The works are in advanced finishing stages and right now the contractor is working on office spaces to be occupied by the Society and her subsidiaries.
This year’s ADM was held at the new Headquarters and occupation subsequently follow as below: • Society- Phased move June 2016 • Subsidiaries i.e. ECB, EIB –Phased move June –July 2016 ii). Banking and Brokerage Investment ECB Insurance Brokers Ltd (EIB) has performed well for the year 2015, it has returned a profit for the 4th year since inception. I would like to urge us all to support the EIB by directing all our institutional and personal insurance needs to them.
Equatorial Commercial Bank (ECB) has had a year of settling and this year we have: i. Increased provisions for bad debts to ensure going forward we have adequate provisions ii. Approved the rebranding from ECB to Spire Bank and from EIB to Spire Insurance Brokers. iii. Recruited Mr. Timothy Gitonga formerly a Director with HF group as the Banks New MD to drive our strategic agenda forward. iv. Increased capital by further 500M (375M by MNH and 125M by Sameer group).
We firmly believe by 2018 as agreed this institution will be making a significant return contributing to our bottom-line. iii). Mortgage In January 2015 we started our pilot housing project in Kisaju. Significant progress has been made as far as construction works are concerned with all structural units up and roofing done on all units. Structural works are at over 80% with finishing now ongoing on the units.
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In terms of uptake of the houses from our members in last 9 months below has been the progress:
HOUSE TYPE NUMBER OF UNITS UPTAKE OF UNITS
I Bedroom Apartment 200 73
2 Bedroom Apartment 350 206
3 Bedroom Apartment 250 110
3 Bedroom Townhouse 46 14
3 Bedroom Townhouse +DSQ 25 13
TOTAL 871 416
(Figures as at end of May, 2016)
So far in terms of deposits for the houses we have collected Kshs 36,714,400. iv). Management Information System Migration You are all aware of the challenges we have had with the current system and the resolution to migrate to a new system which can accommodate our current transactions.
I am glad to inform you we successfully migrated to Navision from CMIS in the month of October 2015. Together with this migration we moved from our previous mobile banking solution MSACCO to our new systems Mwalimu GO mobile.
We have had minimal teething problems with the new systems, with all challenges being handled between the vendor Coretec and our ICT department to ensure full benefits of the systems change are realized. v). Rebranding Our society transitioned into a new visual identity through a rebranding process that was officially launched in October 2015. Since 1974, little or no change at all had been attempted on our visual identity. With bold and fresh new colors, our new brand is a simple but modern identity that we know will represent our society adequately.
Future projects 1. Housing schemes: Housing remains a key concern for many Kenyans including our membership. We are poised to commence our Juja Housing Project which will embrace technology and affordable solutions to yield much more affordable housing for our members. We have also heeded calls from our membership to partner in identifying land and housing schemes in areas where they operate, especially outside the cities. Through our asset management arm Mwalimu Asset Management (MAM) members can now join hands, identify land in their locales and achieve their dreams.
2. Academia investment: The society also plans to invest in education. There are ambitious plans to build a high school and a university with the same excellence and diligence that has propelled our society. This is an easy choice for us given that an overwhelming majority of our membership is in the education sector.
3. Technology and innovation: For us to remain relevant and to run our operations sustainably, we have to continually improve and innovate. That is why we intend to introduce mobile/online loans (lending) in 2016. This will improve efficiency in the lending process as well as convenience to our members at their hour of need.
May your coming months be happy, fulfilling and prosperous.
THANK YOU AND MAY GOD BLESS YOU.
Teresa Mutegi, HSC National Chairman
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2015 Milestones
Mwalimu National has taken care of members-owners since 24th October, 1974.
That is a 40 years legacy of representatives (delegates). Among the service that we are so proud of regions reached out to include: and that we see as a huge asset. We equally reached out to members in But taking care of members is just the Turkana/Trans Nzoia/West Pokot regions start... and being friendly is just another 7th – 11th March, 2015 and Kitui/Mwingi part. What we strive for is total member from 14th – 18th July, 2015 in an exercise satisfaction. Our goal is to meet the that saw numerous schools visited in a requirements of our members each and door to door marketing drive. every time we interact with you. While perfection is unattainable, we believe we We understand that the business might attain exceptionalism if we set our environment is very dynamic and goal at complete member satisfaction. But competition demands efficiency and to achieve this goal, there are a multitude constant adjustment to new social norms, of systems that must be in place to new products, and to new technology. support our efforts. The speed of change in technology is very demanding and quite expensive. We Mwalimu National focuses on what must constantly evaluate the cost of new is best for members, not on what is products versus the cost of doing business most profitable or the most glitzy or the same way. popular. This helps in focusing on Mrs. Constance Wasike what is most important over the long With the current system change from EBD Committee Chairlady / National vice Chairlady run for the organization to prosper. CMIS to Navision, we are glad to declare In the just concluded year, we made that the Society is headed for complete significant strides that saw us reach automation of Customer Care Centre, out to more members all in the wake of which will allow us growth in several educating them through their regional of our support service groups such as
Mwalimu National focuses on what is best for members, not on what is most profitable or the most glitzy or popular. This helps in focusing on what is most important over the long run for the organization to prosper.
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NO. REGIONS BRANCHES VENUE / DATE
Nakuru Kericho/Bomet Laikipia/Nyandarua/Samburu Turkana/Transnzoia/Westpokot Nakuru – 9th May 1. Central/South Rift & North Rift Uasin Gishu/Nandi Baringo/Koibatek/Marakwet Malava/Lugari Bungoma/Mt. Elgon
Kisumu/Nyando Vihiga 2. Lake/Nzoia Kakamega/Butere/ Mumias Kisumu - 30th May Siaya/Bondo Busia/Teso
Gucha Kisii central 3. Southern Nyanza Nyamira Kisii - 13th June Migori/ Kuria Homabay/Rachuonyo
Meru Central Meru North Meru South Isiolo/Marsabit/Moyale 4. Upper Eastern & Aberdare Embu/Mbeere Meru – 11th July Nyeri Murang’a Maragua Kirinyaga
Taita Taveta Mombasa/Kwale 5. Coast Mombasa – 17th October Lamu/TanaRiver Kilifi/Malindi
Nairobi Kiambu Thika TSC Nairobi – 7th November 6. Metropolitan & Lower Eastern Narok/TransMara/Kajiado Kitui/Mwingi Machakos Makueni Garissa/Wajir/Mandera
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2015 Milestones (continued)
direct deposits, collections, ATM cards, growth in services and membership. other social causes. Our Society’s team and even Member Support Center (call If our members are opening more knows that our members are our biggest center.) accounts and bringing in more deposits, asset. We know our members can move that indicates some form of satisfaction. their business to other providers. We Our digital savvy group of members can Likewise, if our members are taking know that member satisfaction is the now contact us through email (mwalimu@ out more loans, getting ATM cards, and most important goal to achieve long term mwalimunational.coop) and our new opening up more lines of credit, that success for our organization. online Facebook (mwalimunational) and also indicates member satisfaction. twitter (@mwalimunational) Chat services. We are committed to meeting your needs We believe this area of operations will We added additional staff during the year so we can be your preferred financial continue to grow at a very fast rate. to increase capacity in key departments. provider through all stages of your life We closely watch our wait times in both and your families’ lives. Member satisfaction as a goal requires the branches and on our phone system. that we set up systems of measurement to This is very important to our long term We appreciate your support and your know if we are meeting our goal. So the success and member service. business. Society towards the end of 2015 rolled out Balanced Score Card planning tool Many companies and organizations have Respectfully submitted, to monitor success both at Board and discontinued or reduced their focus on Mrs. Constance Wasike Staff levels. Many of the things on the customer/member satisfaction and are EBD Committee Chairlady. balanced score card have to do with focused on profitability or growth or
Our Society’s team knows that our members are our biggest asset. We know our members can move their business to other providers. We know that member satisfaction is the most important goal to achieve long term success for our organization.
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Direct Marketers’ Regions & Contacts
NO. NAME REGION CONTACT 1 Stellah M. Kivala Kitui/Mwingi 0711404713 2 Janeffer K. Chelagat Eldoret (Uasin-Gishu, Nandi) 0721705390 3 Michael M. Maithya Meru North/Central 0720635440 4 Alice Wanza Nzwili Nairobi 0725462348 5 Lilian Betty Amoor Nakuru 0705954493 6 Tabitha A. Odeny Homabay/Rachuonyo 0711424667 7 Pamela Akinyi Owira Busia/Teso 0720606891 8 Phebrone Charity Muma Kisumu/Vihiga 0727504461 9 Jacinta Moraa Manyaga Kisii/Gucha 0725382819 10 Teresia Wamuyu Macharia Nyeri/Murang’a 0734596979 11 Mercy Anyango Ogolla Mombasa/Kwale 0724093708 12 Rachael Anusu Kagali Migori/Kuria 0724107880 13 Martha Mwelu Mbolonzi Makueni 0722228381 14 Keziah Kamanda Nyaboe Nyamira 0725053859 15 Susan Wanja Ngari Embu/Mbeere 0710800356 16 Jacklyne Ashiali Ameyo Kakamega/Butere/Mumias 0720294460 17 Ruth Wambui Ndung’u Kitale/Transnzoia 0720065737 18 Margaret Kadzo Kilaka Kajiado/Narok/Transmara 0721233708 19 Dancan Ouma Okong’o Siaya/Bondo 0790134042 20 Isaiah Kirioba Nairobi/TSC 0722445676 21 Peter Kimani Njenga Thika 0718583125 22 Mohamed Khamisi Mzee Kilifi-Malindi/Taita-Taveta 0722939649 23 Phylis Wangui Mwega Meru South 0726172734 24 Getrude Chepng’eno Kericho/Bomet 0710468659 25 Evelyn Wangari Waitiki Kiambu 0719440499 26 Jackline Njeri Njoroge Maragua 0720855045 27 - Bungoma/Webuye/Mt. Elgon
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From the CEO’s desk
It is with great pleasure that Mwalimu National together with her subsidiaries reach out this year to partner with Kenya Secondary Schools Heads Association (KSSHA) in enabling the 41st Heads’ conference held at Wild Waters in Mombasa.
engages in co-operative principles and member activities like Kenya Secondary practices; economic and social inclusion Schools Sports, Drama and Music taking for all members; strong and resilient the golden opportunity to reach out to institutions as well as environmental and her members as a sponsor. The society sustainability leadership. has for a long time focused on supporting learning and exchange of good practice in We all know that Mwalimu National’s administration of public schools. membership is drawn mainly from the employees of the Teachers’ Service Today, our education system faces Commission, public secondary school numerous challenges that include among institutions, parent ministry, existing others strained budgets and creating a members’ spouses in formal employment, globally competitive workforce. members’ children above 18 years who are Our educational outreach efforts have in formal employment and employees of the the capability to make a real and lasting Sacco and her subsidiaries. difference for all players involved.
Mwalimu National through her Corporate The Kenya Secondary School Heads Social Responsibility programme is Association conference offers a good committed to supporting the education platform to engage and share ideas and Mr. Robert L. Shibutse sector play its rightful role in supporting the challenges faced by our educational CEO. country’s development agenda. institutions in various parts of the country.
A move seen as promoted growth Education is an important part of As I conclude, I want to commend the by staying in sync with the Mwalimu National since the need exists association for the commendable work it changing lives of current and in all geographic areas that we operate in. has been doing over the years to improve potential members. Mwalimu National and ECB are committed the education sector. to supporting the education sector play Let me begin by appreciating the fact its rightful role in supporting the country’s I take this opportunity to wish you a that education is very core to our development agenda. Mwalimu National successful conference. business and this year’s partnership has been focused on supporting learning is motivated by Mwalimu National and and exchange of good practice in the ECB’s desire to support development of administration of public secondary schools. the education sector. We are glad that through Childhope Mwalimu National is a financial co-operative Foundation, Mwalimu National pays school that seeks to work closely with organizations fees for needy orphans in Secondary School that support the values of accountable and University as part of her CSR program. and sustainable business leadership that The Society also sponsors a number of
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Human Resources Management
Mwalimu National implements Performance Management System for staff.
staff targets are set based on each pillar which include: Financials, Customer and Market, Internal Processes and, Learning and Growth, all with a total score of 80%. The remaining 20% consist of eight (8) Society key competencies which employees are evaluated against during appraisal.
A Staff scoring above 100%, means he or she has exceeded the Expectations and is rated 5. To meet the expectations, employees are required to score minimum 80% - 100% (rated 4). If an employee scores between 60 – 80% one is said to have met some expectations (rated 3), and if one scores 60% and below, he or she has performed below expectations (2).
This goes a long way in motivating staff to work harder because the final scores Mwalimu National has are used for reward system contributing implemented work culture to annual staff salary increments and that is based on Performance bonuses. Management System for its staff across the country with a main The Society hopes that this will in turn objective of ensuring that the lead to increased level of performance Society builds a positive culture and productivity. To achieve the Society’s of measuring individual as well strategic objectives, the Performance as overall Sacco performance, Management System tool (BSC) addresses managing staff performance the Sacco’s eight key objectives through with a view for continuous the Society’s Performance Contract. These improvement, improve Society’s objectives includes: Society Membership, general performance and at the Savings portfolio, Loans portfolio, same time reward performance. Turn over, Membership retention, Risk Management, MIS and Service delivery. This will definitely put the giant Sacco at another level equaling to reputable and To effectively implement performance leading Organizations in Kenya and Africa management system in the Society, the at large where employees’ performance management with Board’s approval and productivity is measured against set engaged Altima Africa Limited who after targets using a tool called the Balance carrying out a staff online survey, trained Score Card (BSC). This tool has two (2) all the 325 employees on performance sections of measuring staff performance. management with a view of ensuring better The first Section has four (4) pillars and understanding of the Society’s Strategic
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Human Resources Management
Objectives, target setting and appraisal evaluation system, culture change and performance reward based system.
To ensure fair staff appraisal and The first ever appraisal using the BSC effective monitoring and reporting of tool was done last December 2015 and the system, the CEO has appointed a team of senior staff who are competent so far the highest target score achieved and professionals who are part of the Performance Moderating Committee by staff was a rating of 4 (i.e. 80 – 100%) (PMC). The first ever appraisal using the BSC tool was done last December 2015 and with no employee scoring above 100% to so far the highest target score achieved by staff was a rating of 4 (i.e. 80 – 100%) achieve a rating of 5. with no employee scoring above 100% to achieve a rating of 5. We have full hope these will have a positive impact on culture and general performance in the Society for better revenue generation in the years ahead. From Human Resource Department 80-100% The minimum percentage that employees are required to score to meet the expectations during appraisal
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Mwalimu National rolls out a New Management Information System (MIS)
A dependable information and communications system is essential for efficient management of any business in today’s competitive environment.
Mwalimu National has invested in a new Information and Communication Technology (ICT) infrastructure to enhance her competitiveness in customer service delivery and also as part of a strategy aimed at restructuring key operations.
The Society has over the years relied on • Efficient generation of SASRA and user CMIS platform in transacting countless customizable reports. business activities. But out of increased • Ability to facilitate ‘Branchless’ operations volume of work that came by as a result of and decentralization of services. market expansion, need for faster and more • Allows for SACCO horizontal and vertical efficient service delivery to the members growth (i.e. Branch consolidation, prompted us to change over to Navision and branch network expansion and product CRM. The New MIS went live on 21st October diversification) 2015 replacing the legacy system that has • Great improvement in account been in operation for over 20 years. reconciliations. • Easy extraction of data and audit trails In order to assure a successful go live, the for regular / spot reviews. project went through the following phases: • Efficient interface with other services 1. Business Requirements Definition e.g. ATM service providers, Mobile 2. System development and banking, Internet banking etc. customizations • Soon to be rolled out – ability to 3. User Acceptance Testing provide online interface to improve 4. Staff training interaction with members Sammy M. Nyambu 5. Data migration Head ICT. We are monitoring the performance with Among the notable benefits of the new keen interest to stabilize system uptime, system include: improve and review system controls and • A consolidated, consistent and secure security as well as reengineer (optimize) member register. business processes. • Automated posting of loan repayments & apportioning of interest and principal By accordingly. Sammy M. Nyambu • Reduction in process turnaround times Head ICT.
The New MIS went live on 21st October 2015 replacing the legacy system that has been in operation for over 20 years.
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Mwalimu National Sacco – Bosa Delve into Prorata World over Saccos are formed with a clear purpose of enabling members pool their resources together to create a pool of resources that can be ploughed back into the society with a measurable impact on the livelihoods of members and the society at large.
This is the core mission that of a common factor that can be exactly founders of the Sacco movement calculated. In Mwalimu, members are intended when laying down the encouraged to save a proportionate ratio foundations for Savings & Credit of the credit they receive depending on Cooperative Societies. the savings bracket they belong to. The higher the savings one has, the lower the The primary object of cooperatives is proportionate ratio and vice versa. This to inculcate a savings culture among savings culture has enabled Mwalimu members and to assist them accumulate avail credit on demand to members all tangible savings that can earn them year round. returns or be borrowed for investment purposes. Members are encouraged Pro-rata has enabled members quickly to save since savings are essential for grow their deposits with the Sacco and economic empowerment. Savings depends graduate to take bigger loans within a on the individuals’ willingness to save that shorter period. It provides a new avenue By Jairus O. Ounza is affected by the culture/education and for savings in a culture where majority are Head BOSA / Business Loans. the facilities/incentives/products that are unwilling to save. This has also resulted made available by the financial sector that in high dividend pay outs and has availed entice members to save. money to lend because every time one borrows he/she ensures that savings Mwalimu National holds strongly the keep flowing to mwalimu for others to core values of the Sacco movement benefit. With pro-rata every member has and has designed programs that assist the capacity to save and good a safety members grow their savings so as to rip is thereby set in advance for retirement. the benefits thereof. Anyone with serious Pro-rata is hailed for its long term positive investment goals gives savings a priority. results by moderating consumption However, the million dollar question is, activities in the short term and availing do you have the capacity to save? Pro- sufficient credit for investment later. rata stands out clearly as a product that is specific towards enabling members LONG LIVE PRO-RATA. of Mwalimu national improve on their By Jairus O. Ounza saving culture. Whenever dividends are Head BOSA / Business Loans. declared, every shareholder gets an equal proportion for each share held. Pro-rata is the proportionate allocation of the quantity of shares on the basis
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Treasury and Investment
This is a new department in Mwalimu Convenient mortgage arrangement are National Sacco (MNS). Treasury and in place between MNS and Spire Bank to investment deals with the following:- enable the members acquire these houses at affordable rates. 1. Mwalimu National holdings (MNH) (b) Low Cost Housing Project at Juja This is a subsidiary of MNS. It is a holding MAM has already acquired 35 acres of land Company of Mwalimu National Sacco’s in Juja. This is for construction of low cost Investments. It derives its main activities highrise units for MNS. from those of the investee companies i.e. Mwalimu Asset Management (MAM), Development of this project is slated to kick Equatorial Commercial holding (ECH): Spire off next year. Bank and Spire Insurance Brokers. Through Share issuance MNH anticipates to raise (c) Land buying for Mwalimu additional share capital of Kshs 800 Million. Branches This is where the branches are identifying 2. Asset management land and then MAM funds the acquisition. Under Mwalimu asset Management we Such land is then subdivided into plots for have the following projects sell to those respective branch members. So far Kakamega and Kisumu branches (a) Kisaju housing project have identified parcels of land they wish to Rose Muiruri. This is a pioneer project for MNS that acquire and they have been funded. Treasury and Investments commenced on 02/01/2015 and is expected to be completed by June, 2017. It 3. MNS Liquidity involves construction of low cost housing Treasury & Investments department is units at Kisaju in Kitengela. The Houses also tasked with ensuring that the Sacco have been constructed especially for MNS maintains adequate liquidity in order members. The units are as follows: to be able to carry out its activities. The department also invests any excess funds in viable investments.
4. Revenue Collection HOUSE TYPE NUMBER OF UNITS UNIT PRICE (KSHS.) The department also carries out revenue I Bedroom Apartment 200 2.8 M collection from TSC, Ministries, Counties, other government institutions and private 2 Bedroom Apartment 350 3.6 M institutions. 3 Bedroom Apartment 250 4.1 M We take this earliest opportunity to wish 3 Bedroom Townhouse 46 7.4 M well our beloved members and long live 3 Bedroom Townhouse +DSQ 25 8.6 M Mwalimu National.
TOTAL 871 By Rose Muiruri. Treasury and Investments
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A New Look Society:
2015 was an eventful year for our Society. Despite the many important projects and events, something fundamental changed - our brand identity.
Since 1974, our identity remained the preeminent teacher’s sacco as we the same with little or no change. remain rooted to the vision/mission This situation failed to capture that we exist. The budding green color the dynamism and growth of denotes freshness, and growth while the our Society, especially when we grey color roots us in stability and focus. consider the digital age. 3. Our tag line (motto): “Shaping Before the rebranding journey, the society tomorrow. Together”. Because of our acquired the services of an advertising influence in the lives of many, now and and communication agency called Brand in the future, this brilliant tagline is Strategy Design (BSD) which has played appropriate in capturing aspirations. a key role so far. The main task for BSD was to define the meaning and identity Having a new identity is just the one of our old identity and chart a path in the step in building brand equity (the development of a new identity. commercial value that derives from consumer perception of the brand The process began in late June, through name of a particular product or service, focus group discussions, which involved rather than from the product or service staff, members and the general public. itself), however the consistent and There were phone calls made to members effective application of the identity is outside Nairobi to derive feedback which the next most important step. Any brand formed the basic data for crafting our (including Mwalimu National) has to be Joseph H. K. Okumu plan. The resounding sentiment from all intentional and purposeful in order to Head Marketing, Research & Corporate Affairs the interviewed groups was that Mwalimu build brand equity. National Saving and Credit Co-operative (SACCO) Ltd needed a new identity to For us to enjoy the benefits of rebranding, propel it into its ambitions. we have to understand that rebranding is not simply a change of name and After almost a month of crafting and visuals but an overhaul of our attitudes, creating, we finally arrived at a fresh new focus and DNA, that should reflect on the identity. Described as current, inviting, outside too. fresh and rooted, Mwalimu National’s new identity has at its core 3 important features. What are the benefits of rebranding for our 1. Our new emblem: which represents the society? fountain of knowledge and inspiration that describes the bulk of our Competitive advantage members, the teachers. Our brand is the public face of our society. As the economic climate 2. Our new name: Mwalimu National, changes, it must change along with it. A is a shorter representation of our well planned and executed rebrand will previous moniker. We are still a Sacco enable our society to reflect current but we wish separate ourselves as market dynamics and thereby gain
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A New Look Society (continued)
competitive advantage, accelerate Innovation = Profitability who consistently rebrand their products performance and become a leading voice Just as a society’s brand must reflect and services—even those competitors of the industry. We can Side step the changes in size and market position, it who have yet to achieve your company’s competition and increase our market must also reflect changes in technological level of technological acumen—will likely share through an updated image. innovation. Constantly evolving at an outperform you in terms of reputation exponential rate, technology and business and/or economic profitability. Stimulate growth prosperity are often inseparable from Rebranding can serve to reduce the cost one another. Any brand associated with The cool factor of operation and to cater more efficiently technology or technological advancement, When we conducted research before our to current customer demands. In markets must keep pace with the industry of which rebranding process, the feedback we got where complex and confusing mixes of it is a part. Therefore, tech-dependent from majority of youth was that our old product portfolios frequently undermine businesses, such as those associated with visual was not “cool” and saccos are not brand impact via advertising clutter and the internet or with computer hardware “cool”. This is simply because in the financial media proliferation, a rebrand can combat or software, might need to consider more space where we exist, including banking, incongruence and audience fragmentation frequent revitalization and rebranding. If it emerged that until recently Saccos have to regain customer impact and promote a company’s production line is subject struggled to entice younger members. growth. As the society continues to grow, to a constant, rapid rate of change, Our new brand identity now competes subsequent rebranding will ensure that the wise owner and/or manager will effortlessly when matched with all industry customers hungry for change will keep subsequently revitalize his or her brand at players locally and internationally. coming back to see “what’s new.” In this a commensurate rate. Again, your brand is sense, the rebrand becomes a public the public face of your business. When it As you reflect on your new brand, we can expression of the society’s evolution and a fails to reflect the level of innovation your only hope you will carry your brand with constant check to potential outgrowth. business has achieved, your customers pride and as a badge of honor. will quite naturally assume that you have Long terms market expansion fallen behind the times. Competitors When a small business prospers and expands, they and/or their products frequently require a rebrand or revitalization to reflect the larger, more sophisticated business it has become. Any As the society continues to grow, emergent company not employing this essential business strategy will subsequent rebranding will ensure that inevitably be dwarfed by its competition. The modest brand offerings typical of customers hungry for change will keep the small company and its contingent budget restrictions will ultimately prove coming back to see “what’s new.” inadequate as that company grows and evolves. However, budding economic prosperity and subsequent operational expansion are not the only facets of business growth and evolution that necessitate revitalization and rebranding.
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Frequently Asked Questions.
1. Membership Question: What is the remedy of Question: What do I need to join Mwalimu guarantors who are still paying defaulter National SACCO Society Ltd? loans yet the members are still in active employment. Answer: To join the Society, you need the following documents: Answer: Guarantors can seek legal redress. • A filled out application form • An original current payslip Question: What is the Sacco doing to • A copy of your national Identity Card assist guarantors? (Both sides) • Three recent passport size photographs Answer: We have listed all defaulters with • A certified copy of your bank statement Credit Reference Bureau. At the same or a clear copy of bank plate / ATM time, before we attach guarantors we first offset the loan with the defaulters shares 2. Guarantorship and in the event they are not sufficient we Question: What is the minimum number of attach guarantors. We also do reminders guarantors required for a loan? to the defaulters to pay up the debt.
Answer: There is no minimum or maximum 3. Loans number of guarantors. What is required is Question: How do I qualify for a Loan? the total guarantor shares together with the applicant’s shares to fully cover the Answer: To qualify for a loan, you have to: loan amount. However we do encourage • Be a registered Mwalimu National members to have many guarantors in SACCO Society Limited member Kenneth Ngatia Customer Care Manager order to spread the risk. • Be an active member • Have sufficient guarantors to cover the Question: Can one guarantee himself/ amount of loan borrowed herself while applying for a loan? Question: Can I apply for more than one Answer: Yes. Provided the applicant has Loan? not guaranteed anyone else with his/her savings and the amount applied is equal Answer: A member is allowed to take any to or less than his/her shares. loan products from different categories on offer so long as all lending conditions Question: At what point is the guarantor are met. attached a loan? Question: How much can I Borrow? Answer: The guarantor is attached a loan when it falls into arrears for 3 months. Answer: You can borrow three times your However before the attachment is done deposits (for Normal loan) Four times your we send a notification to the guarantors deposits (for Development loans) and five that the loan is not being serviced. times your deposits (for super, vision and Emergency loans). Question: Can a guarantor be refunded when the defaulter pays back his /her loan? Question: Must I have guarantors when applying for a Loan? Answer: Yes. But this is subject to the defaulter making all payments Answer: If the loan applied is equal to outstanding to the loan. or less than a member’s shares, he/she does not require guarantors (the member
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Frequently Asked Questions (continued)
should state in writting that the loan is self Burial Benevolent Fund guaranteed. Question: What is BBF?
However, if amount borrowed is more than Answer: This is a fund in which members one’s shares, he/she will require sufficient contribute Kshs. 150 per month to help guarantors to cover the amount of loan them with burial arrangements once borrowed. death occurs.
Question: How long does it take for Question: Who is covered under BBF? a member to get the cash after Loan application? Answer: The fund covers spouse, children (up to a maximum of 6), parents and Answer: Loan processing takes a maximum parents in law. of four working days which is dependent on availability of all necessary documentations Question: What are the amounts payable as lodged by a member upon application in the event of death? and the type of loan applied. • Emergency (medical/school fees) loans Answer: The below table outlines the take up to a maximum of two days. benefits.
Question: Can I offset my deposits against By my Loan? Kenneth Ngatia Customer Care Manager. Answer: A member is only allowed to offset his/her deposits against his/her PERSON ENTITLEMENTS loans if he/she is ceasing to be a member. Self 60,000.00 He / She must then pay off the balance immediately if any. Offsets are only done Spouse 55,000.00 when a member has asked those he/ Children 35,000.00 (up to a she has guaranteed to seek for guarantor maximum of 6) replacements. Own Parents 20,000.00
Parents In Law 15,000.00
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“Time & Investment”
A new car advert reads: “This car accelerates from 0 - 60 times…!” Which we can equate to human life here on earth.
Do you sometimes sit down to wonder what happened to your life? One minute you’re a school kid, then seemingly overnight 20 years fly by and you wake up to find a wife or husband, kids, and all kinds of responsibilities!
Remember when we were young and your children, your wife or husband, your could not wait to be adults? It seemed like brothers and sisters, and your parents. forever before we would finally grow up We should also spend our time on the and be on our own. Then before we know many people all around us each day to it we are already 40 and our life is more help make their lives happier. Spending than half over! And the older we get, the your time on people gives you wealth and faster the years race by. So we need to happiness that you can never lose. treasure and live every day to the fullest. Someone once said today is a “gift,” that is The second kind of investment worth why it’s called the “present.” your time is setting aside a few shillings from your hard earned cash in a Sacco. James N. Mugandah As you wake up every morning, try and Yes, Saccos have become more popular Marketing Research & Corporate Affairs imagine of somebody putting Kshs.86, nowadays especially amongst people 400 in your bank account. Then, every who’ve had few successes while acquiring midnight whatever you didn’t spend that loans from commercial banks. Such day is taken out of your account and persons could be employees on contract, thrown away for good. Some of us would beginners in life’s journey to freedom want to withdraw every cent of the Kshs. (newly employed), new upcoming business 86,400 and spend it elsewhere so that people etc. You may want to know just none of it is wasted or thrown away. how Saccos are worth a mention and what benefits they offer. This bank account called TIME is at our disposal. Every morning our time bank We all concur that the underlying principle gives us 86,400 seconds. Then, every of any SACCO is to save and provide credit night the time we did not use that day facility to members. So what are some of is erased. So we must use it all up or the gains realized from being a member of lose the time each day we do not spend Mwalimu National? well. You use it or lose it. Then what are the best bargains and deals in life which 1. Savings are worth our valuable time? Would you All our members develop through saving. like to know the three best investments of As a member you are usually required to your time that will bring you real success contribute a certain amount of money and wealth in your life? towards your savings every month. We all know how it’s hard to save especially The first smart investment of your time if you don’t have a specific goal in mind. is people. Spend your time with your But with Mwalimu National you can family. At the end of your life, you will continuously keep on saving until that never be sorry for the time you spent with day that you’ll come up with an idea of
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“Time & Investment” (continued)
something. It could be a business, buying 4. Retirement and building houses where necessary for land, a house etc. Are you planning on saving for retirement members from across the 40 branches but don’t have a concrete idea as to where countrywide… interested members can 2. Loans to save? Why not start with a Mwalimu purchase such parcels or houses at It’s much easier to secure a loan from National membership? If you can save affordable prices. Mwalimu National as opposed to other let’s say Kshs 5,000,000 by the time financial institutions. As a member you are you’re retiring and the Mwalimu National The third, yet by far most important, usually entitled to a loan that is usually declares a 11.15% dividend rate that would investment of your time is to spend it worth a certain number of times the value translate to Kshs 557,500 which when with your own Maker. He is the Person of your deposits. This can be three, four or divided by twelve months would earn you Who Himself gives you every second you even five times your current accumulated not less than Kshs.46,000 every month. receive to keep living. deposits. In addition to the ease of acquiring a loan the interest charged on 5. Housing James N. Mugandah such loans is usually much cheaper than Mwalimu National today is rolling out Marketing Research & Corporate Affairs commercial banks. an initiative of acquiring parcels of land
3. Dividends At Mwalimu National member are co- owners of the Sacco and are entitled to dividends annually. Last year we paid dividends at the rate of 12.15% while the Every morning our time bank gives us interest on deposits was at 11.15%. Imagine if you had Kshs 1,000,000 worth of savings 86,400 seconds. Then, every night the and Mwalimu National declares a dividend rate of 11.15%. That’s a whooping Kshs time we did not use that day is erased. 111,500 in your pocket. Seriously, how So we must use it all up or lose the time better can it get? each day we do not spend well.
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Inspiration: Find Your Inner Sympathy
Freedom is the only worthy goal in life. It is won by disregarding things that lie beyond our control.
• Be unselfish: Every day you encounter people you know and even individuals you meet for the first time. Every encounter is the opportunity to connect and love; with a smile, Lending your ear, offering advice. Just connect and love. As a result, you will feel better about yourself and your life, transformation is the result of small and mindful acts. If you do something good for other people, it will make you feel good about yourself. • Express your hurt as soon as you can: This will help you settle your pain and hurt hence setting your feelings free. • Think greatness about yourself: Our thoughts condition the quality of our emotions. Being positive always will Zipporah M. Mwedwa Marketing, Research & Corporate Affairs. help you feel good about your life. • Never say ‘I can’t’: Choose your words wisely… this will build your confident If someone is annoying you and How to Magic your Self- • Watch your thought: Feed your mind causing you to feel stressed Esteem. with positivity. good technique is to feel sorry Sometimes we all need a positive • Overcome your fears: This will make you for them. affirmation. What then happens to stronger. those other times when we need to find • Believe in yourself: Trust yourself with If you can, find a space away from that inspirational from within us but end up whatever you do person where you say out loud, or in your feeling empty, lonely and insecure?.The head, “I feel sorry for you because you following tips will help you feel good Always feel good about yourself no matter must have an unhappy life.” By making about yourself. what life brings on your system. Each time yourself feel sorry for them rather than • Love yourself: Other people will love you wake up, you have another chance to feeling angry, it puts you in sympathy you to the degree you love yourself. make things better so don’t waste it. mode, which then helps you calm down • Don’t try to be perfect: Perfection is an and feel like you’re helping that person. It unrealistic and unobtainable ideal. Who you are and what you do with your puts you more in control of your emotions • Find out what you love to do and do it: life is important. and helps you find instant calm. Success will only come to you when you do something you love. By • Focus on your mission and set yourself Zipporah M. Mwedwa attainable goals: Know that you are Marketing, Research & Corporate Affairs. unique and unrepeatable. This will help you to achieve your goals and move forward.
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Childhope Foundation
At Mwalimu National, we believe that Corporate Social Responsibility (CSR) is not just a definition; it is a foundational element for how we conduct business in the communities in which we serve.
The idea of initiating Childhope This brought about the need to improve The programme is spearheaded by the Foundation in 2011 was borne out of the academic program to cater for Education and Marketing Committee (EMC) need from deserving members’ children University studies beginning year 2015 board members under the stewardship of who could not afford to continue with of students who excel at KCSE level and the Society’s National Vice–Chairperson their studies. now we have 6 beneficiaries already as the sitting Foundation’s Chairperson. enrolled in different universities around Other leaders include three (3) directors This program was inspired by our shared the country. The objective is to give who equally sit in the Education and dream and conviction that the destiny of academically talented children from Marketing Committee (EMC). young people left behind by our devoted vulnerable backgrounds an equal members after their demise is not tied opportunity to access secondary school The current leadership includes: to their current circumstances of lucking. and university education. • National Vice-Chairlady, Mrs. Constance They should be able to continue with Wasike – Who serves as the Foundation’s their studies through Secondary and now The program, which started with an initial Chairperson; University level, just like before while their 24 students way back in 2011 worth Kshs. • Board Director, Mr. Joel Mungai Gachari parents lived. 751,303.00 has grown to 63 secondary – Committee member; students and six University students in the • Board Director, Mrs. Nancy Koech We can attest to the fact that some of just ended year 2015 worth a total of Kshs. – Committee Member and these students have proved so successful 4,403,070.00. The students have maintained • Board Director, Ms. Rose Mwende out of the performance seen in the few exemplary academic performance while – Committee Member. years we have sponsored them. The also demonstrating leadership capability program has benefitted over 223 high through the internship programme we have school scholars out of who 53 have in place for those who are through with already cleared their form 4 studies. their fourth form or University.
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Education and Business Development Committee Members
EBD Chairlady (National Vice Chairlady) - EBD Member (Board Director) Constance Wasike (Mrs.) - Nancy Koech (Mrs)
EBD Member (Board Director) - Rose Mwende (Mrs.) EBD Member (Board Director) Mr. Joel Mungai Gachari
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Feet Up. Fingers working.
Mwalimu GoMobile Do all your banking from wherever you are through our new downloadable App or via short code *286*51# Visit or call any Mwalimu National or ECB branch. Shaping tomorrow. Together. Website is: mwalimunational.coop for more information
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BRANCH CONTACT DETAILS
Nairobi - Head office Kisii Nakuru Mwalimu Co-op house Ouru Complex Vickers House Tom Mboya street Kisumu road Kenyatta avenue 020 295 6000/ 0709 898000 020 295 6760/ 0709 898760 020 295 6800/ 0709 898800 [email protected] [email protected] [email protected]
Kisumu TSC hqs Eldoret Reinsurance Plaza TSC hqs - Upper Hill Zion Mall Oginga Odinga road Kilimanjaro road Uganda road 020 295 6720/ 0709 898720 020 295 6770/ 0709 898770 020 295 6810/ 0709 898810 [email protected] [email protected] [email protected]
Nyeri Kitui Kakamega Mwalimu Co-op House Winlo Complex Cannon Awori Street Kanisa road Kilungya street 020 295 6830/ 0709 898830 020 295 6730/ 0709 898730 020 295 6790/ 0709 898790 wsfkakamega@mwalimunational. [email protected] [email protected] Coop
Webuye Meru Machakos Afro Fancy House Stemuki Plaza- opposite BBK Mbolu Malu road Kenyatta street kirukuri street 020 295 6820/ 0709 898820 020 295 6740/ 0709 898740 020 295 6780/ 0709 898780 [email protected] [email protected] [email protected]
Mombasa Arrow Plaza Jomo Kenyatta avenue 020 295 6750/ 0709 898750 [email protected]
www.mwalimunational.coop Design/Layout: Edaman Group
The Official Newsletter of Mwalimu Sacco 2016