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KABARAK UNIVERSITY
SACCO LIMITED
STRATEGIC PLAN FOR THE
PERIOD 2018-2022
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TABLE OF CONTENT LIST OF ABBREVIATIONS AND ACRONYMS ...................................................................................... 4
FOREWORD ................................................................................................................................................ 5
1.0 INTRODUCTION .................................................................................................................................. 8
1.1 Background ......................................................................................................................................... 8
1.2 Ownership and Governance .................................................................................................................... 8
1.3 Products and Services ......................................................................................................................... 9
1.5 The Planning Process ........................................................................................................................ 10
2.0 SITUATIONAL ANALYSIS ............................................................................................................... 11
2.1 Economic Environment .................................................................................................................... 11
2.2 Regulation of the Financial Sector .................................................................................................... 12
2.3 Co-operative sector in Kenya ............................................................................................................ 13
2.4 Technology and Infrastructure .......................................................................................................... 13
2.5 Challenges Faced and Lessons Learnt .............................................................................................. 13
2.6 Strategic Performance Indicator ........................................................................................................ 14
2.7 SWOT ANALYSIS .......................................................................................................................... 15
2.9 Statement of Strategy ........................................................................................................................ 18
3.0. STRATEGIC FOCUS .......................................................................................................................... 19
3.1. Vision ............................................................................................................................................... 19
3.2. Mission Statement ............................................................................................................................ 19
3.3. Motto/Slogan.................................................................................................................................... 19
3.4. Core Values ...................................................................................................................................... 20
3.5. Guiding Principles ........................................................................................................................... 21
3.5.1 The Members ............................................................................................................................. 21
3.5.2 The Environment........................................................................................................................ 21
3.5.3 The Community ......................................................................................................................... 21
3.5.4 The Workplace ........................................................................................................................... 22
3.5.5 Corporate Governance ............................................................................................................... 22
3.5.6 The State .................................................................................................................................... 22
4.0 STRATEGIC PRIORITIES AND OBJECTS ....................................................................................... 23
4.1 Strategic Priorities ............................................................................................................................. 23
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4.2 Strategic Objectives .......................................................................................................................... 24
4.3 Actionable Strategies ........................................................................................................................ 25
4.3.1 Financial Management Actionable Strategies ............................................................................ 25
4.3.2 Membership Actionable Strategies ............................................................................................ 26
4.3.3 Products and Services and Marketing Actionable Strategies ..................................................... 26
4.3.4 Governance and Human Resource Actionable Strategies .......................................................... 26
4.3.5 Information Technology Actionable Strategies ......................................................................... 27
4.3.6 Operations Actionable Strategies ............................................................................................... 27
4.4 Cross-Cutting Issues ......................................................................................................................... 28
4.4.1 Corporate Social Responsibility (CSR) ..................................................................................... 28
4.4.2 Governance ................................................................................................................................ 28
4.4.3 Gender Issues ............................................................................................................................. 28
4.4.4 Youth Issues ............................................................................................................................... 28
4.5 Assumptions ...................................................................................................................................... 29
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LIST OF ABBREVIATIONS AND ACRONYMS
GM -General Meeting
BOD- Board of Directors
CAK- Co-operative Alliance of Kenya
CBK- Central Bank of Kenya
CIC- Co-operative Insurance Company of Kenya Limited
CSR- Corporate Social Responsibility
HIV- Human Immune-Deficiency Syndrome
ICT -Information Communication Technology
IS- Information System
ISO -International Organization for Standardization
IT- Information Technology
MIS- Management Information System
MMEU -Management Monitoring and Evaluation Unit
MIED -Ministry of Industrialization and Enterprise Development
MOU- Memorandum of Understanding
ROI- Return on Investment
SACCO- Saving and Credit Co-operative
SWOT -Strength Weaknesses Opportunities and Threats
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FOREWORD
KABARAK UNIVERSITY SACCO was registered in 2003 as a Co-operative Society to cater
for the members of the Kabarak Community and beyond for the savings and loaning of its
members. This has been possible due to commitment of the Board members, dedicated staff, and
total support by members.
We appreciate the support accorded to KABARAK UNIVERSITY SACCO LTD by the Ministry
of Industrialization and Enterprise Development and other partners. We expect the Strategic Plan
2018-2022 to take KABARAK UNIVERSITY SACCO to the level of expectation of the Co-
operative movement in Kenya and the African Region in line with the country’s Vision 2030.
Paul Rono
Chairman
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KABARAK UNIVERSITY SACCO LTD
EXECUTIVE SUMMARY
In today’s highly competitive business environment, the traditional planning methods are
insufficient for organizations to survive and prosper. Organizations in the Cooperative Movement
must therefore engage in strategic planning to be able to clearly define their objectives and assess
both their internal and external situation. This would enable them to formulate, implement, and
evaluate their strategy, and make adjustments and realignments so as to stay on course.
There are three strategic scenarios for future organizations in a liberalized competitive
environment. They include, cost cutting where the guiding principle of the planning process and
methodology is reducing costs by cutting down the number of staff or reducing operations. The
second strategic scenario is re-engineering, where the organization tries to make major
improvements in its performance. The organization makes continuous improvements and can
manage to satisfy its members. The third strategic scenario for the strategic planning is
organizational transformation. This is a strategy that redefines and re-conceptualizes the
organization. The organization re- positions itself in a new context of members and markets and
tries to project itself with more responsibilities, more tools and becomes more proactive.
Transformative strategies try to re-create organizations by making them more accommodative of
massive changes taking place in the global economy.
This Strategic Plan recommends a transformative strategy and provides the framework for
implementing KABARAK UNIVERSITY SACCO’s strategies and reforms in the long-term while
at the same time assisting the society make decisions on the operational priorities and resource
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allocation. The Strategic Plan is a living document which can be updated over time to reflect the
changes in the business environment.
In order to formulate realistic strategic objectives, a strategic analysis of the current and future
environment was conducted. The purpose of this assessment was to ensure that the plan addresses
the environmental and organizational factors that influence the performance of the society.
During the consultative forums, strategic objectives were consolidated around six underpinning
pillars of the Sacco Organization namely; Financial Management, Membership, Information
Technology, Operations, Marketing and Products and Services, and Governance and Human
Resources. The performance objectives and actionable strategies were subsequently designed to
enable the society realize its goal within planning timeframe (2018-2022).The implementation
of these actionable strategies will ensure improved economic empowerment of the members in
the next five years.
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1.0 INTRODUCTION
1.1 Background
KABARAK UNIVERSITY SACCO LTD is a Co-operative Society that was incorporated in
Kenya in 2003 under the Cooperative Societies Act. This was necessitated by the need to coalesce
the members of staff under the common bond in terms of collecting funds from members of staff
who had excess funds and borrowing the same for those in need of the funds. The Sacco has grown
in stature and membership over the years with members’ shares and deposits reaching Kshs
68,632,233 as at 31st Dec 2017.
Objective
Our primary objective is to promote the interest of members through provision of loans and also
providing an avenue for saving and encouraging thrift. In this regard KABARAK UNIVERSITY
SACCO is supposed to be the leader in provision of loans and financial intermediation as well as
providing a reasonable return on deposits/shares made by its members.
Ownership
The Sacco is wholly owned by members.
1.2 Ownership and Governance
KABARAK UNIVERSITY SACCO is managed by nine (9) Board members with a Supervisory
complement of three (3) members, as at 31 December, 2016.
The Board members are elected from among the members at the general meeting.
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The current elected board members are:
No Name Position
1 Paul Rono Chairman
2 Philip Ragama Vice Chairman
3 Caroline Olali Secretary
4 Stella Korir Treasurer
5 Jonathan Boswony Member
6 John Karani Member
7 Levy Mabonga Member
8 William Mundui Member
9 Gabriel Oguttu Member
10 Stephen Cherop Supervisory
11 Joseph Lowei Supervisory
12 Charity Gundi Supervisory
1.3 Products and Services
Savings Products
a. Holiday Savings -This is a monthly contribution of which the Society provides for a
minimum amount. The cumulative sum is used as security for loans.
b. Children-The savings scheme is meant to assist members to save regularly for the
Christmas holidays. It is normally payable in the month of December at an interest of 3%.
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Loan Products
a. Emergency Loans -These are loans that are considered to arise from unforeseen events
such as hospitalization, funeral expenses, and court fines. The eligibility is tied to ones
shares/deposits and ability to pay through the credit evaluation and payable within 12
months at an interest rate of 1%p.m or as determined from time to time.
b. School Fees /college fees loan-Repayable in 12 months at an interest rate of 1% p.m has a
maximum amount pegged of Sh. 500,000
c. Normal Loan-36-48 Months-This is a loan for development that is charged at 1 % per
month. Charged on reducing balance method for recovery purposes. Members are eligible
to access up to three times their shares/deposit
1.5 The Planning Process
A sound strategic plan should serve as a framework for making decisions, a basis for more detailed
planning and a building block for stimulating change.
The Strategic Plan covering the five-year period 2018-2022 has been developed in a participatory
approach. The process started with consultative meetings where information relating to the
operations of KABARAK UNIVERSITY SACCO was gathered. This was followed by a critical
review of past performance conducted by the Board of Directors and Management staff.
The basic tenets observed during the review and writing process included focus on matters of
strategic importance, being realistic, detached and critical that the plan would be reviewed
periodically
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2.0 SITUATIONAL ANALYSIS
2.1 Economic Environment
Kenya’s economy has continued to experience growth over the last five years, the main drivers of
the growth were the manufacturing and service sectors, in particular; financial services and
intermediation, wholesale and trade, and mining and quarrying.
Annual average inflation eased to 6.3 per cent in 2016 compared to an average of 6.6 per cent in
2015. This was mainly due to decline in prices of transportation; housing and utilities; and
communication. The Shilling strengthened against the Pound Sterling, South African Rand,
Ugandan Shilling, Tanzanian Shilling and the Rwandan Franc but weakened against the US Dollar,
Euro, and the Yen in 2016. The capping of interest rates to a maximum of 4.0 per cent above the
Central Bank Rate (CBR) resulted in a significant decline in interest rates during the month of
September to 13.84 per cent compared to 16.75 in a similar month in 2015.
Domestic credit slowed from a growth of 20.8 per cent in 2015 to 6.4 per cent in 2016 mainly on
account of a decline in credit to the private sector.
In 2016, the monetary policy adopted was aimed at supporting a non-inflationary credit expansion
to key sectors of the economy and continued anchoring of inflation expectations, while promoting
stability in the foreign exchange market. The Kenya Shilling (KSh) weakened against major
currencies and averaged KSh 101.5 per USD in 2016 compared to KSh 98.2 per USD in 2015. The
period witnessed the amendment of the Banking Act which introduced capping of interest rates on
credit facilities. The amendment aimed at protecting borrowers from high interest rates, thus
making loans affordable. In the review period, the CBR, was revised downwards twice, to 10.50
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per cent in June and 10.00 per cent in December. However, it remained at 11.50 per cent during
the first half of the year.The 91 day Treasury bill rate dropped from 9.81 per cent in December
2015 to 7.25 per cent in June 2016 and rose to 8.44 per cent in December 2016. The overall
inflation stood at 6.35 per cent in December 2016 compared with 8.01 per cent in the same period
of 2015.
The Nairobi Securities Exchange (NSE) 20-Share Index increased to 3,982 points in the first
quarter of 2016 but declined through to the fourth quarter to 3,186 points in December 2016.
Total liabilities of life insurance increased by 11.8 per cent to KSh 260.1 billion in 2016 from KSh
232.7 billion in 2015, while total assets grew by 13.5 per cent to KSh 305.4 billion in
2016. Gross premium income grew by 19.3 per cent to KSh 73.1 billion in 2016 compared to
8.4 per cent growth recorded in 2015. Net premium income registered an accelerated growth of
19.6 per cent in 2016 from an increase of 7.4 per cent in 2015. In the pensions sub-sector, the
retirement benefit assets grew from KSh 800 billion in June 2015 to KSh 830 billion in
June 2016. Overall growth of the financial sector decelerated from 9.4 per cent in 2015 to 6.9 per
cent in 2016. Banking sector including other monetary intermediation declined from a growth of
10.1 per cent in 2015 to 7.1 per cent in 2016. The insurance sector recorded a growth of 5.3per
cent in 2016 compared to 5.0 per cent in 2015.
2.2 Regulation of the Financial Sector
To harmonize the financial sector and institute controls, the government has enacted two crucial
Legislations, the Microfinance Act and SACCO Societies Act 2008. It is expected that these will
regulate and create a condusive environment that will enable these institutions to run more
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professionally. These laws allow MFIs and SACCOs to take deposits thereby increasing the
product range and income.
The need for enhanced ICT shall be in greater demand. The environment presents an opportunity
for the Society to take advantage of the regulation as well as increased competition from the MFI’s
and Sacco’s of similar nature to that of KABARAK UNIVERSITY SACCO.
2.3 Co-operative sector in Kenya
The Co-operative sector in Kenya continues to play a central role in the development of the country
and financial systems in particular. The challenge would be to reorganize their business
methodology to cope with changing environment particularly meeting the prudential regulatory
requirements.
2.4 Technology and Infrastructure
The rate of technological changes in the country and globally is very high and challenging the
survival of small and medium sized businesses. There is increasing pressure to drive business
through technology. The introduction of automated teller machines (ATMs), e-banking and use of
mobile phones to transact has revolutionized service delivery. The future of service delivery lies
with investment in technology-adaptive facilities and Open systems.
2.5 Challenges Faced and Lessons Learnt
In pursuit of its objectives, KABARAK UNIVERSITY SACCO LTD has had to contend with
several challenges and concerns. These include competition from other service providers, changing
member expectations, and technological advances, legal and regulatory changes, employees
changing employers among others.
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The need to reinvent a new strategic plan was therefore realized in order to create a shared
understanding and common vision among members of the co-operative sector. The Strategic Plan
is intended to facilitate improved service delivery to members, enhance the market position of
KABARAK UNIVERSITY SACCO LTD, and achieve sustainable growth.
2.6 Strategic Performance Indicator
Strategic performance indicators are the major determinants of financial and competitive success
in a particular industry. Strategic performance indicators highlight the specific outcome crucial to
success in the market place and the competences and capabilities with the most bearing on cost
effectiveness.
The above growth and achievements have positioned KABARAK UNIVERSITY SACCO LTD
in the co-operative movement as a model and as one of the leading Sacco’s in the country in the
provision of financial services products to cope with the dynamics of business environment.
The performance growth of KABARAK UNIVERSITY SACCO Limited over the past five years
is summarized as below:
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ACCOUNT
TITLE
2013 2014 2015 2016 2017
Shares Capital
(000s)
962 998 1.022 1,028.365 1,178.000
Shares Deposits
(000s)
39,816.393 43,198.419 50,315.883 59,411.969 68,632.233
Loans Disbursed
(000’s)
44,645.728 47,240.346 55,521.870 64,279.589 82,230.051
Interest Income
(000’s)
3,283.964 3,789.270 4.974.499 5,684.611 6,369.859
KABARAK UNIVERSITY SACCO LTD will place emphasis on the following performance
drivers:
Quality
Speed and flexibility
Innovation
Sustainable growth
2.7 SWOT ANALYSIS
SWOT analysis is involved evaluating KABARAK UNIVERSITY SACCO internal strengths and
weaknesses and its external opportunities and threats. It is an easy-to-use tool for getting a quick
overview of a firm’s strategic situation. It underscores the basic point that strategy must produce
a good fit between an organization’s internal capability and its external situation.
The results of the KABARAK UNIVERSITY SACCO Limited SWOT analysis are as shown in
the table below:
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Strengths
1. Ready market for the vast Co-operative movement
2. Diversified products and services
3. High demand for products and services
4. Strong positive image
5. Fair representation of Board members
6. Qualified and committed staff
7. Supportive stakeholders
8. Growth of the Kabarak community
9. Low interest rates
10. Competent staff
Weakness
1. Lack of operational marketing plan
2. Low core capital
3. Low active member participation in general meeting and member education events
4. Limited active members and stagnating membership
5. Lack of collaborative networking with other cooperatives.
6. Lack of front office service
7. Loan defaulters
Opportunities
1. Mobile hub for members to access financial product
2. Enrolment of more members
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3. Continuous development of new products and services
4. Developing marketing strategies
5. Rebranding of products and services
6. Product and service diversification in order to counter the competition
7. Networking with other Co-operatives
8. Inefficient service delivery by other financial service providers
9. Uncertain political environment
10. Employment of qualified and experienced personnel
11. Embracing Sound Corporate Governance Practices
12. Rapid changes in technology
13. Expansion of Kabarak family
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Threats
1. High inflation
2. High cost of borrowed funds
3. Changes in legislation and government policies
4. Compliance with new labor laws
5. Specific threats on ICT in the industry
6. Losing staff to competitors
7. Interest rate caps
2.8 Strategic position for KABARAK UNIVERSITY SACCO LTD
The Strategic Planning process, uses SWOT analysis to aid planners arrive at a strategic position
as a preparatory point for discussion on what should be the type of strategy the organization should
take after its own SWOT analysis. The aim is to maximize strengths and opportunities and
minimize weakness and threats.
2.9 Statement of Strategy
In next five years, KABARAK UNIVERSITY SACCO LTD will be geared to remove the
overriding internal weaknesses by strengthening financial resource base, physical working
facilities, governance and human resources capacity, products and services development and
marketing, and operations functionality. To consolidate its position, KABARAK UNIVERSITY
SACCO LTD will address the issues outlined above.
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3.0. STRATEGIC FOCUS
The future of any organization is governed by its vision, mission and values. In order to better
understand an organization, clarify its mandate and strategic direction, its vision, mission and
values have to be defined. Setting the vision, mission, and motto and core values is a very important
thing a leader does for an organization.
3.1. Vision
The vision of KABARAK UNIVERSITY SACCO LTD is to be the leader in provision of financial
services, offering high quality financial products and services to members.
3.2. Mission Statement
The mission sets out the purpose of an organization. Stipulates the business of an organization,
where the business will be done and how it will be done. The Mission of KABARAK
UNIVERSITY SACCO Limited is:
To provide the best quality and timely financial services in order to uplift the socio-economic
status of the members in a biblical perspectives.
3.3. Motto/Slogan
A slogan/motto is a statement that captures the Society’s philosophy, culture and norms.
KABARAK UNIVERSITY SACCO Motto/Slogan is:
Partnering in Meeting your Financial Needs.
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3.4. Core Values
Values clarify how an organization goes about doing its work. They give an indication of what
constitutes good governance for the society. They also form the basis of developing a corporate
culture. KABARAK UNIVERSITY SACCO is guided by the following values:
Team work-the success of the SACCO in pursuit of its mission will be ensured by close
collaboration among its members and the Management.
Accountability-The Sacco is accountable to its members, the government and other stake
holders. It ensures that the culture of accountability is embodied in its internal stakeholders
both individually both individually and collectively.
Customers focus-in developing its product s/service as well as in provision of its service,
the SACCO ensures that these are customers-driven so as to satisfy diverse members and
their changing needs.
Transparency-The SACCO endeavors to ensure transparency at all the times when
dealing with its stakeholders. The internal stakeholders are also expected to be sincere and
transparent in their dealing with the SACCO.
Professionalism-The SACCO adheres to impeccable and beyond reproach professional
and personal standards in the conduct of its affairs. The Society offers its services
effectively and efficiently to all members. The SACCO upholds a high degree of honesty
and integrity in serving its members and other stakeholders.
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3.5. Guiding Principles
3.5.1 The Members
We will work together to enhance the quality of our members’ lives by offering competitive
services.
We will not discriminate against any member on the basis of race, colour, religion, age,
sex, marital status, disability or any other protected status.
We are committed to fostering teamwork and to providing an environment that values,
empowers and respects individuals.
3.5.2 The Environment
We believe in environmental protection as the responsibility of every member.
We are committed to maintaining a safe, healthful and efficient working environment for
all our members and employees.
We will actively pursue energy programs that will minimize environmental impacts.
3.5.3 The Community
We are committed to using financial and human resource of the society to help the
community learn, grow, acquire new skills and better their lives.
We will encourage members’ involvement in community programs and socially
responsible activities.
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3.5.4 The Workplace
We are committed to dealing with all suppliers and customers with integrity and ethical
manner that supports and encourages the aspirations of diverse groups.
We are committed to recruiting, retaining and promoting a diverse and professional
workforce.
3.5.5 Corporate Governance
We are strongly committed to the highest standards of corporate governance.
We shall put in place a decision making framework that promotes ethical values,
professionalism and efficient service.
3.5.6 The State
We shall comply with all the laws and regulations of the land.
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4.0 STRATEGIC PRIORITIES AND OBJECTS
4.1 Strategic Priorities
Strategic issues are fundamental challenges affecting an organization’s mandate, mission,
products, services or customers/members. Identifying such issues enables an organization to focus
on key challenges facing it. Not all issues facing an organization are strategic. The key ones are
those that an organization is compelled upon. It is vital for strategic issues to be dealt with
expeditiously and effectively if the organization is to survive and to prosper. An organization that
does not respond to strategic issues can expect undesirable results from a threat, weakness or a
missed opportunity.
Once strategic issues have been identified, objectives, strategies and action plans are developed
around them. The issues should always be consistent with the vision and mission of the
organization. They should be such that an organization can take action on them. After extensive
analysis of KABARAK UNIVERSITY SACCO, the following six Key Strategic Result Areas/
Pillars were identified for action.
Financial Management Pillar
Membership Pillar
Products, Services and Marketing Pillar
Governance and Human Resource Pillar
Information Technology Pillar
Operations Pillar
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4.2 Strategic Objectives
The establishment of objectives is an essential pre-requisite of the planning process. The future
operations must be directed towards achievement of specific objectives. The Board of Directors
and staff must clearly understand what KABARAK UNIVERSITY SACCO is trying to achieve.
An organization’s vision and mission alone would not add value unless translated into measurable
performance objectives, and managers are prevailed upon to show progress in reaching the targets.
Objectives specify what an organization expects to achieve within a given period. They give a
clear indication of “what” and “how much” to be accomplished. Objectives are needed for each
key area that the society considers crucial to its success. Two key results areas are crucial: those
relating to financial performance and those relating to strategic performance. In carrying out its
mandate, KABARAK UNIVERSITY SACCO will pursue the following broad objectives: The
strategic issues and objectives deliberate under each pillar and action plan during 2018-2022
Strategic Plan periods are as follows:
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a. Financial Management Pillar -Grow in a financially stable and sustainable manner
b. Membership Pillar -Position KABARAK UNIVERSITY SACCO as a financial service
intermediary of choice for our present and potential members. Ensure membership growth
by 20% annually (100% by 2022)
c. Products and Services and Marketing pillar -Provide products and services that meet
the needs of the members in an efficient and cost effective way. Improve marketing of the
products and services.
d. Governance and Human Resource Pillar -Enhance the capacity of the Board to direct
and oversee the business strategies. Improve the technical and management capacity of the
management and staff to effectively implement business strategies as approved by the
Board
e. Information Technology Pillar -Enhance and optimize use and management of
information systems to provide reliable, timely and quality reports to aid decision making
for improvement of services to members.
f. Operations Pillar-Improve operational efficiency and effectiveness by strengthening the
internal control systems.
4.3 Actionable Strategies
Achieving acceptable financial performance is a must; otherwise the society’s survival would be
at risk. Achieving acceptable strategic performance is essential to sustaining and improving the
society’s long term market position. The actionable strategies deliberated to realize each Strategic
objective during the 2018-20122 Strategic Plan periods are as follows:
4.3.1 Financial Management Actionable Strategies
Build institutional capital
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Develop appropriate policies including internal control and risk management, dividend
policy, assets liability management, Liquidity Policies and Capacity building of Board
and management
4.3.2 Membership Actionable Strategies
Build corporate image
Mainstream Corporate Social Responsibility in the operations.
Expand area of Operation by use of information technology.
Enhance service delivery monitoring system to ensure quality service to members.
4.3.3 Products and Services and Marketing Actionable Strategies
Enhance product development capacity
Development of competitiveness of products and services
Identify, develop and implement appropriate marketing strategies for new products
Enhance customer care activities
Exposure/study visits to successful Sacco enterprises
4.3.4 Governance and Human Resource Actionable Strategies
Strengthen corporate governance.
Amend KABARAK UNIVERSITY SACCO By-Laws to be in-line with changes in the
business environment.
Adapt performance management system between the members and Board, Board,
Senior Management and Staff.
Ensure education and training of the Board.
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Review and/or development of Human Resource Policies and administration Manual.
Develop adequate Succession plan and Scheme of service.
Review of Terms & Conditions of services.
Review of Job Descriptions and Specifications.
Develop and implement suitable training policies and programs.
Strengthening the capacity of members and staff to collectively respond to challenges
and changes.
Attract and retain highly skilled and motivated staff.
Review organizational structure and develop job descriptions and skills to positions.
Develop and implement the performance based system.
4.3.5 Information Technology Actionable Strategies
Ensure Operations to be fully online.
Develop and Adopt clear IT policy.
Conduct operational process and information technology audit for the organization.
Acquisition of relevant software and hardware.
Put in place Disaster Recovery and Business Continuity Plans
4.3.6 Operations Actionable Strategies
Ensure development of effective operation policies and procedures.
Ensure adherence to policies and procedures.
Enhance internal control practices.
Ensure member satisfaction for attraction and retention of members.
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4.4 Cross-Cutting Issues
4.4.1 Corporate Social Responsibility (CSR)
KABARAK UNIVERSITY SACCO will not only improve the social and economic lot of its
members, but also to contribute to the social well-being of the communities where it operates.
4.4.2 Governance
Corporate governance will deal with the issues of governing the behavior of the Board of Directors
and Management staff; to check whether they are truly running the operations in a way that
maximizes the members’ shares and investments.
In order to realize corporate excellence, KABARAK UNIVERSITY SACCO pivotal attributes
will include a bias for action; staying close to the members; productivity through staff; hands-on
and value-driven management; simple organization structure and lean staff.
4.4.3 Gender Issues
KABARAK UNIVERSITY SACCO will address issues pertaining to gender balance in respect to
Board members and staff. The Sacco will also advocate for effective policies and practices that
ensure gender sensitivity and balance.
4.4.4 Youth Issues
Youth comprise the majority of the population. To this end KABARAK UNIVERSITY SACCO
will address issues pertaining to youth integration and employment through offering internship
and engagement where possible. Additionally, it will design products and services for youth and
children.
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4.5 Assumptions
In order to meet the strategic objectives and outlined activities, the following assumptions form
the basis of the projections and activities:
i. The economy will stabilize to grow at a rate above 4% and the government will be
committed to implementing Vision 2030.
ii. The government will continue with national healing and maintain peace and tranquility.
iii. The Sacco will compete favorably in the market and grow moderately.
iv. Staff costs are projected to rise as the Sacco expands its operations.
v. Administrative expenses will moderately increase annually
vi. Governance expenses will increase moderately after rationalization of the Board
members and staff operational activities.
vii. Financial expenses will rise moderately given the rationalization initiative to
streamline activities.
viii. Fixed assets will be replaced as they get used and per their expected life. Depreciation
is calculated as per policy guideline.
ix. Membership will grow by 20% per annum given that the focus will be on expansion in
the area of operations.
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KABARAK UNIVERSITY SACCO
PROPOSED STRATEGIC BUDGET 2018-2022
YEAR 2018 2019 2020 2021 2022
INCOME KSHS KSHS KSHS KSHS KSHS
Interest from Memebers
loans 7,325,338
8,424,139
9,687,759
11,140,923
12,812,062
Other income 79,320
95,184
114,221
137,065
164,478
Total income 7,404,658
8,519,323
9,801,980
11,277,988
12,976,540
EXPENDITURE
AGM Expenses 135,000
153,900
175,446
200,008
228,010
Audit fee 10,100
10,100
10,100
10,100
10,100
Consultancy 25,000
25,000
30,000
30,000
30,000
Bank charges 150,000
195,000
195,000
195,000
195,000
Committee Sitting
allowance 288,000
288,000
288,000
345,600
345,600
Board members'
education 65,000
84,500
109,850
142,805
185,647
Travelling and
subsistance 20,000
22,000
22,000
25,300
29,095
Members education &
Marketing 50,000
70,000
98,000
137,200
192,080
Postage and Telephone 12,000
12,000
12,000
12,000
12,000
Salary 522,000
563,760
608,861
657,570
710,175
Printing and Stationery 21,000
21,000
21,000
22,050
23,153
Ushirika day
celebrations 30,000
31,500
33,075
34,729
36,465
Depreciation 18,500
15,725
13,366
11,361
9,657
31
NSSF 4,800
4,800
4,800
4,800
4,800
Web Hosting 5,500
5,500
5,500
5,500
5,500
Website maintanance 7,000
12,000
12,000
12,000
12,000
System maintanance 16,200
16,200
16,200
16,200
16,200
Licence & Permits 12,000
12,000
12,000
12,000
12,000
Rent 48,000
48,000
72,000
72,000
72,000
Electricity 12,000
12,000
13,800
15,870
18,251
Miscelleneous Expenses 5,000
5,000
5,000
5,000
5,000
Interest on Holiday
savings 16,992
16,992
16,992
16,992
16,992
MCRB -
-
-
-
-
TOTAL
EXPENDITURE 1,474,092
1,624,977
1,774,990
1,984,085
2,169,724
SURPLUS 5,930,566
6,894,346
8,026,990
9,293,903
10,806,816