uts newsletter - july 2015

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


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.


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.


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


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


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)


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.‖

uts newsletter - july 2015

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