Kenya National Police DT Sacco: Setting Standards In the Co-operatives Space

Boasting of over half a century of competitive financial solutions to its members through effective mobilization and management of resources, the Kenya National Police DT Sacco continues to break barriers with many firsts in the co-operatives sector. Under the stewardship of a multifaceted board of directors and a management team dedicated to prudential supervision of resources, the society recorded versatile growth during its 51st Annual Delegates Meeting which reviewed the Sacco’s performance in the year 2023, as narrated by Corporate Watch Magazine’s Catherine Muema.

Over the years, the Kenya National Police DT Sacco has continued to showcase virtuous corporate governance attributes that has kept it a cut above the rest.

In the year 2023, the Sacco was ranked the best managed Sacco countrywide during the 2023 National Ushirika Day celebrations.

It equally emerged winner under the Sacco category in the 2023 FiRe (Financial Report) awards themed utilizing technology and innovation to enhance sustainability, governance and financial information transparency.

The society’s Global Credit Rating maintained the Sacco’s national scale long term issuer rating at A- (KE) in 2023 with a stable outlook and affirmed the short term issuer rating of A2 (KE).

In October 2023, a surveillance audit was undertaken to ensure that the Sacco continues to comply with the requirements of the ISO 9001-2015 Quality Management Standard (QMS).

As part of an upgrade program, the Sacco intends to integrate the society’s QMS with an information Security Management System as well as a Business Continuity Management System to enhance the society’s security and resilience.

Sacco Performance in 2023…
Despite harsh economic times witnessed last year, the Sacco’s asset base grew from Ksh.48.9 billion in the year 2022, to Ksh.54.2 billion in 2023 marking a 10.8% increase.

According to the Chairman’s report read at the Annual Delegates Meeting, Non-withdrawable deposits grew by 10% from Ksh.25.9 billion in the year 2022 to Ksh.28.5 billion at the end of the year 2023.

The Sacco’s loans and advances grew by 11.7% in 2023 to Ksh.45.6 billion, up from Ksh.40.8 billion recorded in 2022.

The Sacco’s revenue grew by 10.1% from Ksh.7.9 billion in 2022, to Ksh.8.7 billion in the year 2023. Kenya National Police DT Sacco’s core capital increased by 14% to Ksh17.9 billion from Ksh.15.7 billion recorded in 2022.

The Sacco thus recommended a dividend payout to members on share capital at the rate of 17% amounting to Ksh.599 million and an 11% interest on member deposits equal to Ksh.3.6 billion up from the 10.8% paid out in the financial year 2022 which translated to Ksh3.2 billion.

“The Board of Directors wish to recommend payment of dividends on share capital at a rate of 17% amounting to Ksh.599 million and Interest on deposits at a rate of 11% amounting to Ksh.3.0 billion making a gross total of Ksh.3.6 billion compared to Ksh.3.2 billion in the year 2022, recording an 11% increase.

The Board also proposes to pay honoraria to Directors and Supervisory committee, Staff bonus and annual Delegates allowance amounting to Ksh.235 million compared to Ksh.181 million paid out in the year 2022,” announced Kenya National Police DT Sacco Chairman Mr. David S. Mategwa. The proposals were unanimously approved by delegates.

Chief Guest at the ADM, Cabinet Secretary Ministry of Co-operatives, Micro, Small and Medium Enterprises, Mr. Simon Chelugui, praised the institution’s resilience, hard work and dedication of the board of directors as well as management. He said the institution’s consistency in innovation and products development stands out as a key factor to the Sacco’s success.

“The Kenya National Police DT Sacco stands out as one of the best because of its tailor-made products and services that effectively meet the financial needs of members and contribute positively to their socio-economic welfare. As a Ministry, we believe the Sacco has the potential of setting the standards in running and management of all Saccos in Kenya.” Noted CS Chelugui in his speech at the ADM.

The CS remarked that the Sacco needs to set high standards to be and remain on top adding that it needs to look beyond Africa in its quest to grow to the next level.

The Cabinet Secretary added that the 2023 Co-operative Bill is aimed at enhancing the growth of the co-operative movement in Kenya (ranked the best in Africa and seventh globally).

The Bill also intends to strengthen the governance framework for co-operatives and to safeguard the members’ funds through enhanced regulation and supervision.

He further noted that the establishment of the Central Liquidity Facility through which Saccos will be admitted into the National Payment System is part of the government’s financial inclusion agenda.

Product Review and Technological Advances
In his presentation, Mr. Mategwa, National Chairman reported that the society shall be conducting a comprehensive review of its products and services with a view of making them more competitive while meeting and exceeding member expectations.

“The society has consciously decided to tap into the diaspora market,” he proclaimed. In the year 2023, according to the Chairman, the society conducted a webinar for the diaspora membership and in the year 2024, Kenya National Police DT Sacco will intensify the initiative to empower the diaspora membership and those from within the country to further grow the membership.
“As we look forward to the comprehensive review of products and attracting new members, one area of concern has been the share capital. Following internal discussions and extensive consultations, the Board reviewed the minimum share capital from Ksh.50,000 to Ksh. 500 for new members joining the society,” declared the Chairman.

The Kenya National Police DT Sacco continues to leverage on technology as a driver and business enabler. The Sacco’s mobile banking platform for instance, accounts for about 40% of the society’s transactions.

Due to rapid technological obsolescence, the challenge of keeping technology future proof is an ongoing concern. The society therefore looks forward to upgrading its systems in the year 2024 to make them more robust and secure.

“I wish to reiterate the society’s commitment to empowering members for quality life. Our focus remains on the members through the provision of quality products and stellar customer experience leveraging on innovative technology. I look forward to the continued support of our members through the patronage of products,” the Kenya National Police DT Sacco Chairman affirmed.

Top Savers 2023 and Strategic Plan 2020-2024
In the year 2023, the Sacco conducted the ‘National Top savers’ conference that was followed by a countrywide member education drive in its effort to build the capacity of members, delegates, board and staff.

“In the year 2024, the society will organize for enhanced financial literacy and coaching for members besides undertaking top savers programme at the national, regional and international levels,” the Chairman said.

During the ADM, top savers in the year 2023 were recognized under the Michael Arum awards.

The Society’s current strategic plan comes to an end this year. The strategy whose thematic areas are good governance, membership and service excellence as well as institutional capacity building has seen the DT Sacco make wonderful progression.

“To further build on this growth, the society will immediately begin the process of formulating the next strategy that will run from the year 2025 to 2029,” said the Chairman.

The strategic plan the society intends to rollout next year, is expected to propel the Sacco to the next level of greatness.

International Collaborations
Kenya National Police DT Sacco National Chairman Mr. David Sohelo Mategwa has continuously benchmarked within and beyond the continent. Mr. Mategwa was part of the Kenya Delegation to Washington DC, USA, under ACCOSCA together with Hon. Simon Kiprono Chelugui, EGH Cabinet Secretary, Ministry of Co-operatives and MSMEs Development, his PS Patrick Kilemi and African Confederation Of Co-operative Savings and Credit Associations Executive Director George Ombado.

The delegation held consultative roundtable with Doug O’Brien, President and CEO of National Cooperative Business Association CLUSA International, and a one-on-one interaction with America’s Credit Unions President Jim Nassle. Timothy L. Anderson, President and Chief Executive Officer at United States Senate Federal Credit Union to reaffirm ACCOSCA’s unwavering commitment to guiding Sacco’s in Africa towards adopting liquidity risk systems to guard members’ investments.

The representatives from Kenya also had a consultative engagement with Larry Fazio, Executive Director of the National Credit Union Administration (NCUA), in Supporting and Enhancing Establishment of SACCO Specific Regulatory Framework in Africa.

Corporate Social Responsibility…
The board of director’s report presented by the chairman noted that the Sacco’s flagship children education program had 237 students in various secondary schools and universities in the year under review.

The Sacco also planted 10,000 tree seedlings at the DCI headquarters expected to go a long way in lessening the effects of climate change and increasing environmental conservation efforts. Further, as part of its CSR the society handed over a gate to Utumishi Boys Academy in January 2024.