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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