stories of impact...that is why universal traders sacco society has come to fill the gap and assist...
TRANSCRIPT
THE NEWSLETTER OF UNIVERSAL TRADERS SACCO SOCIETY LIMITED
STORIES OF IMPACT Loans that are transforming farming
MACHAKOS JULY 2015
TOGETHER WE PROSPER
2 UTS Today Together we prosper
CHAIRMAN’S MESSAGE
MISSION STATEMENT: ―To empower
members economically by efficiently
providing affordable financial services,
meeting their obligations‖
VISION STATEMENT: ― To be leading
sacco providing quality financial ser-
vices in Kenya‖
U niversal Traders
SACCO (UTS)
star is on the
arise. The SACCO which
started in 1991 as a small
outfit has grown to a gi-
ant Institution with
Branches traversing the
entire Ukambani Coun-
ties viz Kitui, Machakos
& Makueni and our
neighbouring County of
Embu.
With membership in-
creasing by leaps and
bounds every day, thanks
to the sound management
policies, well focused
Board of Management
and a cheap and fast loan
facility, the sky is the
limit for the growth of
UTS.
The sky is the limit for Universal Traders Sacco
BY KITHEKA S. KIOKO –CHAIRMAN
Many of our famers and
businessmen have sound
and focused entrepre-
neurial minds but their
enterprises have been
bogged down by lack of
cheap and efficient finan-
cial services. Whereas
banks have opened many
branches in the region,
their interest rates and
requirements are too
high and beyond the
reach of the ordinary
farmer and businessman.
That is why Universal
Traders Sacco Society
has come to fill the gap
and assist the unbanka-
ble population. While
Banks are charging inter-
ests as high as 23% per
annum, our SACCO has
many low interest rate
loan products. In deed
rates go as low as 9% per
annum
UTS is ready to work
with development part-
ners to increase credit to
our famers at very low
interest rates. Partners
such as Rabo Bank of the
Netherlands and the Mi-
croenterprise Support
P r o g r a m m e T r u s t ,
(MESPT) among others,
continue to give support
to our farmers and the
Sacco.
As we continue to lead
the way in providing
cheap financial services,
we will soon be looking
forward to opening
branches in other areas
such as Mwingi and Mlo-
longo.
UTS Today 3
Together we prosper
CHIEF EXECUTIVE OFFICER’S MESSAGE
F ocus is the most im-
portant aspect of
the Universal Trad-
ers Sacco. Since its for-
mation in 1991, the Sacco
has been focused on ex-
panding its membership
and empowering them fi-
nancially.
And over the years, we have
seen our membership grow
from a handful of the origi-
nal founders crammed in a
small room to more than
40,000 members spread in
all Ukamba counties and in
Embu County.
What is special about Uni-
versal Traders Sacco (UTS)
is that it isn’t employee-
based, using a check-off
system. Our members are
business men and women
coming from all sectors of
the economy. They are unit-
ed by only one thing—a de-
sire to improve their condi-
UTS Today is published by Investment News
Limited, P. O. Box 20257 –00100 GPO, Nairo-
bi, Kenya, Tel: 0773 –991820 on behalf of Uni-
versal Traders Sacco Limited P.O. Box 2119 –
90100, Machakos, Kenya. Tel: 044-20571
COORDINATOR: Emma Muli
EDITORIAL AND DESIGN: Investment News
Focus: Our Most Important Asset
The Editor appreciates the invaluable contri-
bution to this publication made by SERAH
NZAU of Microenterprise Support Programme
Trust (MESPT) Wote, NOAH MUOKA, Univer-
sal Traders Sacco Society Limited (UTS) Head
Office, Machakos, SYLVESTER KOMU of (UTS)
Kathiani branch, MARY SYOMBUA of UTS,
Wote branch and LEONARD WAMBUA of
MESPT, Wote.
tions of living. And they
know that goal can easily
and best be achieved
through pooling together
their financial resources
and thus created a fund for
loaning themselves money
at affordable rates. With
such facilities, they can
move forward to achieve
their goals.
Today UTS boasts of many
achievements, including sta-
bility and a rising capital
base. But best of all, we are
happy that UTS is making
real change in the lives of
its members, their families
and their home areas.
In this issue of the UTS, we
present to you stories that
demonstrate what the UTS
is doing for its members in
the farming sector. They are
stories of real members that
we hope will gladden you,
motivate you and make you
even more committed to the
vision of your sacco because
you have not only made this
happen, you too stand to
benefit and to create posi-
tive change in your life.
UTS will continue to lead
the way so that we, togeth-
er shall continue to proper.
- DOMINIC MUTUNGA
Chief Executive Officer
4 UTS Today Together we prosper
The Growth Story of
Universal Traders Sacco
U niversal Traders
Sacco was start-
ed as a merry-go
round by a group
of businessmen in Machakos.
Their desire was to pool to-
gether resources so that they
could create a fund from
which they could lend each
other money to improve their
businesses.
The chairman of the group
kept all the group’s collec-
tions in his office where the
meetings and transactions
were carried on.
In 1991, the group was regis-
tered as a sacco to offer fi-
nancial services to the busi-
ness community, thus becom-
ing one of the earliest saccos
targeting non-salaried mem-
bers.
As the founding members
later said, it was not easy be-
cause most saccos at that
time were on the check-off
system. Members of the Uni-
versal Traders Sacco (UTS),
then known as the Masaku
Traders Sacco, were united
MESPT: One of the Most Active UTS Partners Micro-Enterprises Support Programme
Trust (MSPT) is one of the key partners of
UTS. Through the UTS, MESPT offers soft
loans to assist small and medium size en-
terprises within the areas where UTS oper-
ates.
MESPT’s mission is to ―support the growth
of micro, small and medium enterprises by
providing integrated business solutions for
sustainable development.‖
Among those that have benefitted are
farmers in Lower Eastern Kenya whose
perennial twin problems are lack of capital
to buy farm inputs and lack of water in the
drier areas. MESPT also helps the farmers
solve marketing problems and provides
them with skills on profitable farming tech-
niques in the following value chains: man-
go, passion, indigenous chicken and export
vegetables.
―Farmer reports will indicate the impact of
our work in partnership with the UTS,‖
says Serah Nzau, the MESPT Business De-
velopment Officer in charge of Machakos
and Makueni counties. Cont’d Page 15
MESPT helps in training farmers on grad-
ing here seen at an SMEs pack house
UTS Today 5
Together we prosper
Machakos Cooperative Union - the umbrel-
la organization for coffee farmers in
Machakos and Makueni counties - takes
great pleasure in being associated with Uni-
versal Traders Sacco in serving farmers in
South Eastern Kenya. Coffee is a seasonal
crop, and therefore we appreciate the im-
portant role you are playing in providing
bridging loans.
With the help of the Union, the Lower East-
ern Coffee Mill, which is owned by members
of the Union, individuals and corporates,
has installed a coffee milling plant in
Machakos town in order to help coffee farm-
ers add more value to their coffee. One of
the important things the mill has done is to
reduce the distance farmers’ travel to have
their coffee milled. Shorter distance reduces
costs and wastage that occurs in travel.
Secondly, farmers are milling their coffee at
rates lower than those charged by any other
miller in Kenya while at the same time
eliminating wastage and thefts that occur
in milling. In their own milling plant, farm-
ers are sure to get the same amount of cof-
fee as they brought for milling.
Finally, we would like to mention that
plans are already at an advanced stage for
roasting, packaging and selling our own
branded coffee, both locally and globally. As
the CEO Mr. Martin Malila says, ―The coop-
erative mood in this region is full of excite-
ment following the installation of the mill.‖
Hongera UTS for Excellent
Service to Farmers!
only by their desire to im-
prove their businesses with
the help of easily accessible,
low interest rate finances.
Today, the UTS has grown to
a giant financial institution
with membership of over
40,000 strong. Its loan portfo-
lio has increased to over Shs
403,855,548 as at December
2014
The sacco’s share deposits
stood at Shs 181,039,647
with a turn over of Shs
92,201,949.
UTS, which is headquartered
in Machakos town, now has
spread its branch network to
seven towns –Machakos,
Wote, Kitui, Tala, Nzaikoni,
Kathiani and Embu.
It offers sophisticated bank-
ing services such as ATM,
mobile banking and money
transfer. And recently, it has
introduced its own cheque
book to enable its members
and clients make smooth
business transactions.
Over the years, the UTS has
increased its loan products to
cater for the diverse needs of
its members.
In addition to the ordinary
sacco loans - normal loan
and emergency loans—UTS
has Biashara, Growth orient-
ed, Asset Finance, Mwangaza
and Tuinuke loans all aimed
at improving businesses.
Loans which are designed to
specifically assist farmers
include Rabo, Horticulture,
Mkulima Bora, NRM and
Chai Loans among others.
But as the sacco grows and
expands, we stay true to the
dream and vision of our
founders - to support the
growth of businesses and
thus to positively impact the
lives of our members and the
communities in which we op-
erate.
6 UTS Today Together we prosper
F arming is the most
important occupa-
tion both for sub-
stance and earning income
in Ukambani and Embu.
But these areas are classi-
fied as semi-arid because
they receive little and errat-
ic rains.
Efforts to assist farmers in
the area started as early as
1952 when Katumani Agri-
Stories of Impact How UTS loans are transforming farming in Ukambani and Embu
cultural Research Station
was set up by the colonial
government to develop
maize varieties that could
thrive in the region.
However the efforts have
not been successful because
although the land is fertile
and good for farming, water
and capital for farm inputs
have been major stumbling
blocks. That is why the
Universal Traders Sacco
has targeted farmers as a
major part of its loaning
system.
Together with its partners
such as Micro Enterprises
Support Programme Trust,
MESPT, the sacco has
rolled out easy to access,
and affordable loans to as-
sist the farmers to solve the-
se perennial twin problems
of finance and water. The
results are a clear confirma-
UTS Today 7
Together we prosper
tion of the common asser-
tion: If only water were
available, Ukambani could
feed Kenya and create a
surplus for export. Vast are-
as have been turned into
lush green farms with vari-
eties of crops that include
French beans, fruits, vege-
tables and grains.
And this has led to an in-
flux of educated people re-
turning home from cities to
take up farming. These ed-
ucated farmers are conver-
sant with modern technolo-
gy, farming techniques and
how to use credit.
The result of all these is
that farmers are earning
money in millions of shil-
lings in a year with the
least that a serious farmer
can expect going to more
than Shs 800,000.
Success has created enthu-
siasm among farmers and
encouraged others, includ-
ing the youth, to take up
farming.
And UTS, together with its
partners, is in the lead,
providing finance, advising
on proper ways of farming
as well as helping farmers
find markets for their pro-
duce.
The following narratives
show the exact impact
UTS and its partners are
making.
FACING PAGE: Good farming methods and skills are enabling
farmers to increase mango production and ABOVE: French
beans in one of the many large farms in Makueni where
UTS and its partners are transforming farming.
8 UTS Today Together we prosper
Proud and Happy Fruit Farmer in Nzaui „I am 200 per cent ahead since I got empowered‟ Sixty year old Peter Mwaka Kamu will proud-ly tell you that his expansive fruit farm stretches over 2 kilometers. And with equal excitement, he shows us the pixie, tangerines, oranges and minora that he plants—heavy and overladen with succulent fruits. Then he tells us about the twin problems that had be-deviled his farming—water and markets. When he joined UTS several years ago, he hoped to get solutions to these problems. “I joined UTS because I needed money for water and to find markets. Middlemen exploited us!
“UTS told me that they could give me a loan based on my production with a grace period of six months. That was something I had nev-er heard of from a bank.”
The first loan for Mwaka who says he left teaching to pursue his passion for farming, was a Shs 1 million NRM loan— a partnership between UTS and Microenterprise Support Program Trust (MESPT) “I sank a borehole and did piping for irrigation. Now I have two sources of water—a borehole and a dam. That means I have water and can plant throughout the year.”
The result is that Mwaka‟s production and income have increased in geometrical pro-gression. By the last harvest, his income in-creased by Shs4.3 million (See percentage increases below). Beaming Mwaka now has his eyes fixed on improving his marketing system. And he believes UTS and its partner, MESPT will help him achieve this dream, too.
Showing the depth of Mwaka’s fruit farm
His irrigation system around every tree
The healthy fruits he produces
W hen Paul M u t i s y a Kioko de-
cided to retire from emploment early, his eyes were set on farming. “I was interested in farming since I was young. Even as a young school boy, I was keen on farming.”
When he started working and bought a bigger piece of land near Kathiani town, he realized that lack of water presented a big challenge. He wanted to be free from his dependency on erratic rains.
“I tried getting loans from regular banks but their terms were impossible,” he says.
The problem was compounded by the fact that there was no bank in Kathiani.
A local financial insti-tution would under-stand local famers needs, Paul believed.
The
Sweet
Taste of
Banana
Farming
His irrigation system around every tree
Paul in his banana plantation near Kathiani town
addition to dairy farming. “I don‟t know about rains any more.” he says. When all the income is combined, Kioko can only say, ”I have no complaints. I am very, very happy with UTS.”
For example, a harvest of his tomatoes currently brings him more than Shs350,000/- while a har-vest of the sugarcanes brings him more than
Shs100,000/-.
Now he plans to in-crease his income by more than 70% - with the help of the sacco,
“What I can tell farmers wanting to get loans is have a vision. Money helps only those who have a vision!”
Inspecting tomato seedlings
He was excited when he heard that Universal Traders Sacco was setting up a branch in Kathiani.
“It was my wish answered. I was excited.” And he was not disappointed when UTS fi-nally set up a branch office.
Loans from UTS have ena-bled him to bring water to his farm where he grows bana-nas, maize and tomatoes in
10 UTS Today Together we prosper
Sahelian Solutions (SASOL)
Foundation has over 20 years
experience in Food Security
interventions in Kitui Kenya
and selected countries in Africa
- Ethiopia, Tanzania, Uganda
and Burkina Faso reaching
over 400,000. SASOL has been
in the forefront in development
of water structures for food
production, building capacities
of local community manage-
ment structures, diversifica-
tion of production, promotion
of best dry land Agricultural
practices and linkage to mar-
kets. SASOL believes that fo-
cusing on Agribusiness value
chains such as green grams,
sorghum and livestock is the
way to go for local economic
development.
The organization is headquar-
tered in Kitui town.
Kathiani coffee
farmer, Peter Muin-
di was helplessly
watching the dis-
ease that had infest-
ed his crop spread
and his income
dwindle. The income
from his 500 coffee
trees had dropped
from 600,000 to Shs
200,000/- which
could hardly cover
his needs.
His first loan when
he became a member
of UTS was used to
buy sprays and ferti-
lizer. Now , Peter is
a happy farmer, ex-
pecting to harvest
10,000 kilos of coffee
beans this season, up
from 6,000 kilos that
he harvested last
year.
And Peter is sure
now his return will
exceed Shs600,000,
he had been getting,
He showed us
neighboring farms
with plants that
had not even flow-
ered. ―My farmer
colleagues are now
beginning to see the
advantage of getting
loans to improve
their farms.‖ Peter
is a member of
Mukuyuni Coffe
Farmers Coopera-
tive Society where
he says he has be-
come a passionate
promoter of UTS. ―I
have been urging
my fellow farmers to
join UTS so that
they too can benefit.
Some10 farmers, he
says have joined as
a result.
Alluring
Aroma of
Coffee is
in the Air
Again Peter Muindi can now smile again after his coffee trees have
been revived, thanks to a soft loan from UTS
UTS Today 11
Together we prosper
Success Begets Others Groups form to access funds
Sarah Ndunge Kimolo of Utangwa in Mbooni is one of the farmers who have taken ad-vantage of the Horticulture Loan—a product of UTS in collaboration with MESPT. She col-lected other horticultural farmers and formed a group, Kyabee and they all became mem-bers of UTS.
“We got our first loan when we were 2o mem-bers. Now we are 50.”
Success of Sarah‟s group has influenced other farmers to form groups, with every group‟s members joining UTS. Sarah estimates that there are now more than 10 groups covering much of the Mbooni hills. And she further estimates that the minimum savings per group is Shs 500,000.
Sarah stresses a point as she talks
about her horticultural farming at her
home in Utangwa, Mbooni
12 UTS Today Together we prosper
Supporting the Future Youth are now appreciating that ‘Wealth is in the soil’
Wycliffe Kyalo Waema (pictured) is a young man of 23 years. But he is also a very serious farmer. When he completed his secondary edu-cation in 2009, he decided to stay home and do farming.
“All my brothers had gone to Nairobi, leaving behind a good piece of land,“ he says.
Due to lack of funds, he start-ed planting French beans on only a quarter of an acre us-ing a generator. Then he be-came a member of Kimwango Horticultural Farmers Associ-ation which enabled him to get seeds and advice on farm-
ing and m a r k e t -ing. It also e n a b l e d him to ac-cess loans.
Kamwan-go, which is sup-ported by
MESPT, requires all mem-bers to become members of Universal Traders Sacco so as to access loans for farming.
Titus Mbai is the chairman of the Association which co-vers a sizeable area of Ma-kueni County. Like Kyalo,
Mbai, now 60, was interested in farming but he had no cap-ital. Unlike Kyalo, when he completed school, he went to Nairobi and found work.
He raised some money from his employment, bought a generator to pump water and returned home.
“I wanted to be a farmer, and with water now I was ready.”
When he started farming, however, he realized that gen-erators were very expensive to run.
“I needed Shs4,500 every week for diesel alone.”
UTS Today 13
Together we prosper
That is when he learned that he could get an NRM loan to lay pipes and con-struct storage to get free flow water to his farm.
In his farm which was lush with tall healthy maize plants nearly ready for har-vesting, Mbai plants French beans, water melon, green grams, tomatoes, cabbages and passion.
The association is encouraging the youth like Kyalo to take up farming. So far, more than a
quarter of its mem-bers are youth.
Kyalo‟s is a success story that has influ-enced other youth.
Before he started get-ting UTS loans, his income was only Shs10,000 a month. Now his monthly in-
come is Shs120,000. He plants sukuma, French beans and maize.
“Water is very im-portant for horticul-ture crop farming. Some crops such as water melons have demand when it is hot and there is no rain,” says Kyalo.
He plans to increase his farm size from the current five acres to 10 acres.
And he is hoping to influence more youth to realize that “wealth is in the soil”.
Titus Mbai shows his free flow water irri-
gation in his flourishing maize farm (above)
while Kyalo Waema takes a visitor through
his French beans farm (Facing page)
14 UTS Today Together we prosper
P ositive dissatisfaction is
something we read about
in books but Joan Mutua
of Kathonzweni in Makueni lives it.
According to her, she was so poor
that her daughter was always sent
back home to collect school fees ar-
rears.
―Our situation got worse when our
three daughters joined the same sec-
ondary school—one after the other! I
lived in dread of seeing them all back
home to collect school fees arrears.‖
But it happened. ―One day they came
Dairy Farming RABO LOANS HELPING JOAN
UPGRADE HER MILK COWS
Joan Mutua at her farm: “ My
immediate goal is to have six
milking cows”
back home. The door opened and I counted:
One, Two, Three! I cried! ‖
But it was that near total collapse that put
Joan to action She and her husband, a long
time honey merchant, went to work to change
their situation.
UTS Today 15
Together we prosper
So she took a Rabo loan - a joint effort
between UTS and Rabo Bank Founda-
tion of Netherlands to upgrade her dairy
cows. ―I wanted my cows to produce at
least 15 to 20 litres each,‖ she says To-
day Joan, 47 and her husband are
thriving dairy farmers.
And now Joan is ready to move to her
dream. ―I will be the happiest person
when I will have at least six cows each
producing at least 20 litres.‖
MESPT: UTS Partner From Page 4
MESPT was established in November
2002 by the Government of Kenya
and the European Union to assume
and continue with the activities of the
Micro-Enterprises Support Pro-
gramme (MESP), previously imple-
mented by the Government of Kenya
and the European Union.
So far,MESPT has used Shs3.7 bil-
lion in loans to support micro, small
and medium enterprises throughout
Kenya. Over 20,000 enterprises have
benefited from MESPT programs
nationwide.
―MESPT is committed to expanding
the impact of our products and ser-
vices across the micro, small and me-
dium enterprise sector,‖ says Serah.
―We believe that in that way we can
cascade innovation, enterprise and
market-building strategies. This will
in turn advance our vision and mis-
sion which is to alleviate poverty by
creating employment in micro-
enterprises.‖