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Kenya Bankers Sacco
Background
Kenya Bankers Sacco was
officially registered in February 14th 1975 as a Savings and Credit
Co-operative Society. It however didn’t
start its operations immediately because there was resistance from the banks
that this was another union. It took
several discussions, meetings with the management of the founding bank
employees to convince them that the Sacco was mainly to complement their
services to their staff, e.g. issue personal loans to complement what the bank
was giving.
Vision
To be the financial
services provider of choice that empowers it members.
Mission
To provide affordable
financial services to our members and customers for wealth creation through
deposits mobilization and prudent management.
Core
Values
Why
the Sacco was started?
At that time, most if not
all banks were only giving staff loans to senior management team, and thus, the
middle and lower management felt they
were not financially progressive and this prompted a few straight forward
thinking employees to consider coming together to pull resources for their own
benefits. At that time, Harambee, Mwalimu and Nacico Sacco were gaining ground,
and hence the bankers also wanted something of their own.
It then started off with
nine members who were mainly officials at the time until the first election was
held about the same year, and Mr. Benjamin Nzioka was elected as its first
Chairman. The initial founding members were mainly drawn from Central Bank of Kenya (CBK).
Membership
The first members of the
Sacco as earlier advised were mainly drawn from Central Bank of Kenya (CBK).
The membership then spread to KCB and finally to all financial institutions.
For several years since its inception, membership was strictly from the banking
industry. However, in the late 1990s, especially when the banking industry
employment was undergoing turmoil with a series of retrenchments, the
membership was opened to other financial intuitions like micro finance,
building society insurance firms and a few corporates like NSSF, Multi choice
etc. In the recent past the Sacco has expanded to accommodate chamaas and
members’ spouses and children above 18 years, who are in gainful employment.
The current membership is over 25,000 members.
Office
operations
The Sacco’s first office
was at Tusker house, along Ronald Ngala Street where we shared space with a
shoe shiner at the entrance next to the stair way, before we got an office on
2nd floor. We then later moved to Afia house, next to Globe cinema round about. From Afia House, the Sacco office moved to
four way towers, next to Jevanjee gardens. The Sacco then acquired its own
building at Kenbanco house where it then relocated. At Kenbanco, the Sacco
occupied one wing on a floor, and leased out the rest of the space. The demand
for office space to lease increased, and thus the Sacco opted to lease out the
entire building and moved to ICEA Building where it occupied two floors.
In a rather twist of
events, original Sacco members started claiming ownership of Kenbanco and moved
to court where after several court battles, the ownership was bestowed to the
original members. The move was mainly to cut off new members from benefiting
from what they didn’t contribute for.
After occupying ICEA
Building for several years, the Sacco acquired land in upper hill and
constructed the Kenya Bankers Sacco center at 3rd Ngong Avenue in
upper hill. In 2005, the Sacco moved to its new building in upper hill and has
been there to date. This is its head office.
Staff
Establishment
The Sacco started off
without employees and most of the errands were run by the Sacco officials. The
first employee was recruited in 1978, and during the same year a total of three
employees recruited. The Sacco has grown to a total of 97 employees.
Branch
Network
As the initial members
continued to go for aggressive marketing in other banks in other regions
outside Nairobi, there was need to open up offices in those areas for seamless
and efficient service delivery. It is for this reason that Mombasa, Nakuru,
Meru, Kisumu and Nyeri branch were opened in the late 1980s. Later on, the
Sacco has opened more branches including Nairobi, Eldoret and the most recent
branch in Kakamega. In total, there are 8 branches.
KBSACCO
Portfolio
The Society’s core business
is to mobilize savings from the members and thereafter lend it to them at an
affordable interest rate.
At inception, the member
contribution was kes 5. This was then increased in the following sequence, to
kes. 20, 50, 300, 1,000, 2000, and finally to kes. 3,000 which is the current
minimum monthly contribution. Additionally, the Sacco also introduced a risk
fund in early 2000 to act as an internal insurance scheme. The risk fund which
is contributed by each member monthly has grown from kes. 200 to kes 400.
All Members are required to
own 1000 shares of Kes 20 each at a minimum share capital of Kes 20,000/=
The total membership
contribution as at 31st December 2018 stood at Kes 5.79 B, whereas
the current Sacco asset base stood at Kes. 7.58B
KBSACCO
Annual events
The most important events
at the Sacco are as follows:
1.
Annual Delegates Meeting (A.D.M)
2.
Annual General Members Meeting (A.G.M)
3.
Member Education Seminars
4.
Co-Operative Day (Ushirika )-1st
Saturday of July
Product
and Services
Achievements
1.
Education
and Training
The Board lays a lot of emphasis on education and
training its members which is conducted annually.
2.
ICT
(Information And Communication Technology)
The Sacco has modern technology which is upgraded
continuously.
3.
M-Banking
It has enabled members to access their funds and our
Sacco facilities regardless of geographical location and beyond the
conventional business hours.
4.
1st Tier Sacco
The Sacco is ranked as a
first tier Sacco; from its roots it has made a tremendous achievement.
Conclusion
The Sacco has made a tremendous growth in the industry over the years. From a
membership of 9 in 1975 to over 25,000 members as at December 2018, from a
small office sharing space with a shoe shiner to a magnificent office building
in the high end region of upper hill. The Sacco has served its members over the
years and still makes sure the members are satisfied. With all this, the Sacco
is proud to be rated as a billion shilling Sacco.