Tower Sacco October Issue Final Sunday HP

MAGAZINE
EDITION 2 THE OCTOBER EDITION 2018
THEME:
SACCO GROWTH AND
SUSTAINABILITY
The Pride of Tower
TOWER SACCO LIMITED

A Basket For All Your Financial Needs
BOARD OF DIRECTORS
John Peter Mwangi Gitundu - Chairman
John Peter Mwangi Gitundu -

(CHAIRMAN)
Benson Chege Ruhang'a - Vice Chairman Gabriel Njihia Waweru - C.E.O Peter Mainah Ngugi - Hon. Secretary
Benson C. Ruhang’a Gabriel Njihia Waweru Peter Maina Ngugi Samuel Kuria
(VICE CHAIRMAN) (TREASURER)
Samuel Kuria - Treasurer ( CHIEF EXECUTIVE OFFICER)
James Mwangi Kiiru - (HON
Director-Audit SECRETARY)
Anthony Gichure Mariga - Director-Credit
Joseph Maina Waigwa - Director-Audit Francis Gichuki Wanjau - Director-Credit George Kamau Kamau - Director -Finance
SUPERVISORY COMMITTEE MEMBERS
Joseph Maina Waigwa Francis Gichuki Wanjau George Kamau Kamau James Mwangi Kiiru
(DIRECTOR INCHARGE AUDIT) (DIRECTOR INCHARGE CREDIT) (DIRECTOR INCHARGE FINANCE) (MEMBER - AUDIT)
Josephine Wanjiru Muriithi - Peter Njenga Kuria Lukas Kinyanjui Wamwara

Chairperson Secretary Member
P.O. BOX 259-20303; OL'KALOU: TEL: 051-8000822: TELE-: 0733-416492: 0723-836421

E-mail: info@towersacco.co.ke
www.towersacco.co.ke
Antony Gichure Mariga - Josphine W. Muriithi Peter Njenga Kuria Lukas Kinyanjui Wamwara - Patrick K. Njenga -
(CHAIRPERSON SUPERVISORY (SECRETARY SUPERVISORY (MEMBER SUPERVISORY (FINANCE MANAGER)
(SECRETARY FINANCE)
COMMITTEE) COMMITTEE) COMMITTEE)
THE TOWER
MAGAZINE
OCTOBER- 2018 - 2 4
CONTENTS
TOWERCASH
USSD Dial *276*20#
* Withdaw Cash * T- Loan Request
* Transfer Funds * Airtime Purchase
* Mini statement * KPLC Tokens
* Loan Repayment * Deposit to Account
Paybill No: 506900
TOWER SACCO BODBODA GROUP LOAN PAGE 9
Download the Tower Sacco App from Google
EDITORIAL BOARD Editorial 3

Benson Ruhanga Roles of Supervisory Committee 3
George Kamau
Peter Ngugi Dividends /interest/rebates paid on TOWER SACCO
Products Pg 14
CHIEF EDITOR prorata basis 7

Peter Ngugi Tower sacco mortgage financing. 8 Effects Of Delocalization
PHOTOGRAPHY Alternative banking channels. 14 On Saccos. Pg 25
VINCENT MUNGA
Pms as a management tool. 15
CONTRIBUTORS Real life experience. 23
Daniel Wanyoike
Catherine Mathenge Movements in kenya. 22
James Gitau
George Kamau Mortality rate and its effect to sacco 25
Peter Wanjuki Affirmative action 27
Peter Ngugi
Francis Mugo Regulation in sacco movement. 29
Patrick Njenga
James Kiiru Trade Financing and qualifying criteria. 31
Teddy Understanding
Tower Sacco
inflation.
offers
PUBLISHED & PRINTED Agribusiness
BY:
Satimes East Africa Nairobi Lifeline.
Page 30
MAGAZINE
EDITION 2 THE OCTOBER EDITION 2018
THEME:
SACCO GROWTH AND
SUSTAINABILITY
The Pride of Tower
The cooperative principle of education,

tower sacco limited training and information. Pg 22 THE TOWER
MAGAZINE
SEPTEMBER 2018 - 3 34
OCTOBER- 2018
EDITORIAL
From the
Editors’ desk
Dear Reader!
Welcome to another edition of

Tower Magazine, a publication that
highlights about our Sacco, how it
performs, its different project among
others in every financial year.
In this October 2018 Edition, we begin

with the remarks from the chairman
where he appreciates and attributes Our Editorial has not forgotten the Chief
members commitments and contri- executive Officer (CEO) Mr. Waweru who
bution to the success of the Sacco reminds members that dividends, interest
since it started its business in the year and rebates are paid on prorata basis
1977. Other stories making our headlines
include Tower sacco mortgage financing,
According to the Chairman, the Sac- Alternative banking channels, Pms as a
co that was founded by only ten reg- management tool, Real life experience,
istered members today has clocked Movements in Kenya, Mortality rate and
beyond seventy thousand members its effect to sacco, Affirmative action,
with equity of above seven billion shil- Regulation in sacco movement and Trade
lings and the board’s main endeavour financing and qualifying criteria.
is to continue educating members on
finances, financial integrity and finan- Members, those are just but highlights,
cial independence. grab a copy of Tower Magazine and read
for yourself the success of Tower Sacco.
We have also featured the vice chair-
man recognizing that the Sacco Many Thanks and Enjoy your reading
Business model involves mobilization
of deposits and disbursement of loans
to members and for these activities to Compiled by:
happen the SACCO has established a Peter Maina Ngugi
strong marketing arm which actively
involved in day to day strategies for-
mulation to bring on board new
THE TOWER
MAGAZINE
OCTOBER 2018 4
CHAIRMANS NOTE
Chairman’s
Address
I
t is our forty second year since birth of
Tower Sacco and the board salutes our
members. It is with great happiness to
see our society grow from strength to
strength. Founded by only ten registered
members today we have clocked beyond
seventy thousand members with equity of
above seven billion shillings.
The board’s main endeavour is to contin- Universal health coverage.

ue educating our members on finances, This is a very important aspect of life. It is high
financial integrity and financial inde- time the NHIF recognise power held by SACCOs
pendence. We wish to see our members and decide to work with them in capacity build-
continue growing economically as well as ing as well as funds collection. This would help in
socially. health promotion.
The board also supports the big four agen- Affordable housing :
da by the president. We are out to support For a long time the SACCO has helped in land
our clientele in the following endeavours. acquisition and building. We are going a notch
higher by starting mortgage financing and collab-
Promoting manufacturing industry. orating with Kenya Mortgage Refinance Company
This will be possible by availing affordable (KMRC) for finances to enable our clientele pur-
credit to our youth wishing to go to manu- chase homes in prime areas of our republic.
facturing industry as well as cottage indus- Lastly and not least let us support our organisa-
tries and value addition. This will hence tion by paying our loans in time.
create employment improving livelihood
Happy time for all of us. Let us keep up.
of more needy Kenyans.
Food security and nutrition.

Fifty-five years since independence and a
number of times Kenya facing famine hun-
42
ger and droughts is quite sad. Perhaps this
is why president is concerned with food
security. The Sacco is ready to help the
members and Kenyans to make sure they
are able to grow and secure their food
e.g. Cooling stations of potatoes and milk
pasteurising.
THE TOWER
MAGAZINE
OCTOBER 2018 5
Vice Chairman’s
Message
Compiled by:
Benson C. Ruhang’a
Vice Chairman
T
he SACCO Business model involves other
mobilization of deposits and dis- key
bursement of loans to members. players in
For these activities to happen the the economy.
SACCO must have a strong marketing arm The sure way
which will be actively involved in day to day is first to create confidence by giving the
strategies formulation to bring on board new members what they ask for and receive it on
members. In the process of recruiting mem- time. People nowadays hate going long distance
bers, they come hand in hand with deposits. to look for financial services. The trend now
is the financial institution going to the people.
Tower SACCO growth is grounded on the That’s the trend!
number of members it has recruited and how
they are motivated to remain royal to the With an experience of 42 years in this sector,
organization. As the SACCO works towards Tower SACCO has transformed the lives of many
achieving its vision of being universal entity Kenyan by creating an avenue for them to save,
of choice for vibrant economic growth. This invest and also access cheap credit facilities for
can only be achievable through extensive members economic growth. The SACCO intends
member recruitment drives in various parts to be a house name for most Kenyans through
of the country and beyond the boundaries. efficient services and products tailored to suit
As a matter of fact, the SACCO has a nation- different people.
al exposure of over 60,000 members from
different part of Kenya and the diaspora. The Technology is now the way to go! Tower
capital base in about Kshs.7 billion. SACCO is now investing heavily in the sector
so as to sustain its membership growth. The
With the expansive membership of that SACCO intend to expand its accessibility by 80%
magnitude Tower SACCO had stretched its through online SACCO Agency. By the end of
wing to bring services closer to the people for this year the SACCO plans to have opened 60
efficient services delivery. As at today Tow- new outlets using the Agency model.
er SACCO has managed to have a national
outlook by setting up branches in 5 counties This now ease the site construction of
which include Nyandarua, Nakuru, Laikipia, branches and other offices. The conducted
Samburu and a marketing office at Mtwapa in survey revealed that by the end of year 2019.
Kilifi. The branch network is 16 well estab- The membership will have grown by 40% of the
lished in major towns and small satellites of- existing figures and capital base to around 15
fice in the interiors part of Nyandarua County. Billion.
For any financial institution to survive the This is achievable with the right
stiff competition in the money market, it must strategies in place!
have a clear strategy on how to outshine the
THE TOWER OCTOBER 2018 6

MAGAZINE
CEO’S NOTE
DIVIDENDS /INTEREST/ REBATES PAID

ON PRORATA BASIS
Compiled by: G. N. WAWERU
CHIEF EXECUTIVE OFFICER
P
rorata is a Latin term
meaning “in propor-
tion.” So when you
see it you know that
something is being distributed
or done in equal or fair propor-
tions. The term has commonly
been used in legal and economic
context. CAPPING OF
INTEREST RATES
In the SACCO industry the
term has been used whenever In our last edition, I indi-
there is payment of dividends, based on your deposits contribu- cated the impact of interest
interest, rebates and bonus. For tion per month and which mon- capping in our economy. The
example: ey was used to trade with the interest on loans from com-
SACCO for that particular month. mercial banks were capped
1. Dividends have always It therefore implies that you will at 13.5% and the interest on
been paid on prorata basis in only qualify for rebates for the deposits at 6.5%.
proportion to your shares contri- period the money has been in the
bution out of the total dividends SACCO unlike in the past where The commercial banks
declared. rebates were paid on flat rate opted to trade on treasury
basis. bills and government bonds
2. Interest/Rebates/Bonus other than loan disburse-
has always been paid on pro- The following table illus- ment to the members of the
rate basis in proportion to your trates the computation of public.
deposits contribution. Rebates.
Most SACCO’s have adopted This had a serious effect
The higher the contribution of this method to prevent those in the business especially
your shares/deposits the higher members who deposit large sums the SMES and Micro groups
the divided/interest paid. of money towards the end of the since they could not access
The SACCO Industry has year and once they have been top-up loans to boost their
introduced the payment of in- paid their rebates, they withdraw merchandise (Stock).
terest/ Rebates on prorate basis only to reappear at the end of the
year again. Currently the law is
being reviewed and it is in
the floor of the parliament
EARNING INTEREST INTEREST
CONTRIBUTION PERIOD RATE EARNED WHT PAYABLE
Balance b/f
from 2016 350,000 12 0.1205 42,175.00 2,108.75 40,066.25 and among the proposals
JAN
CONTRIBUTION 2,300 11 0.1205 254.05 12.70 241.35 is to remove the capping of
FEB 2,300 10 0.1205 230.96 11.55 219.41 interest on deposits which
MAR 2,300 9 0.1205 207.86 10.39 197.47 implies that the customers
APR 2,300 8 0.1205 184.77 9.24 175.53 will have to negotiate for
MAY 2,300 7 0.1205 161.67 8.08 153.59 interest rates with their
JUN 2,300 6 0.1205 138.58 6.93 131.65
respective banks.
JUL 2,300 5 0.1205 115.48 5.77 109.71
AUG 2,300 4 0.1205 92.38 4.62 87.76

The other proposal is that
SEP 2,300 3 0.1205 69.29 3.46 65.82
the CBK will absolutely play
OCT 2,300 2 0.1205 46.19 2.31 43.88
no role in regulation of the
NOV 2,300 1 0.1205 23.10 1.15 21.94
interest charged on loans by
DEC 2,300 0 0.1205 - - 0
the banks.
TOTAL 43,699.33 2,184.97 41,514.36
THE TOWER
MAGAZINE
OCTOBER 2018 7
MORTGAGE
TOWER SACCO
Compiled by : Daniel Wanyoike
Head of Operations MORTGAGE FINANCING
T
his is a product Features:
developed to give • This product allows you to purchase your own residential property.
you and your fam- • Property may be ready or under construction.
ily shelter and security.
The products enable you Benefits:
to acquire already devel- • We have a flexible repayment term of up to 15 years.
oped property or acquire • We have competitive variable interest rate on reducing balance method.
and develop a property.
•Customers can access more than one Mortgage subject to repayment ability
This product eases the
•Projected and existing Rental income will be considered subject to
burden of acquiring your
dream home and frees qualification
you from tenancy and • No penalty for lump sum or early payments of loan
easily transforms you • Swift processing of applications.
into a landlord. • A dedicated account manager assigned to each
customer.
Mortgage lending is the REQUIREMENTS FOR MORTGAGE FINANCING:
primary mechanism used
to finance private own-
• Customer to raise 20% of value of property.
ership of residential and • Duly completed loan application form
commercial property. • National ID/ Valid Passport and KRA pin certificate
As with other types of • Copy of spouse ID and KRA pin certificate
loans, mortgages have • Marriage certificate or affidavit of single status
an interest rate and are • Letter from employer confirming terms and
scheduled to amortize conditions of employment(employee)
over a longer period of
time. All types of real
• Residential address confirmation
property can be, and • Copies of the latest 3 months pay slips
usually are, secured with • Latest 6 months bank statements
a mortgage and bear an • If in business copy of audit financial report for last 3 years
interest rate that is sup- • Latest 12 months bank statements
posed to reflect the • Copy of sales agreement
lender’s risk. • Copy of Title deed or lease.
• Valid valuation report.
MAGAZINE
Motorcycle Operators receive Motorcycles from Tower Sacco in a Past Function. Tower
Sacco Offers Loans to facilitate the Purchase of a Motorcycle(BodaBoda Loan)
THE TOWER
MAGAZINE
OCTOBER 2018 9
AN EXTRACT FROM 2006 NEWSLETTER
BIRTH OF TOWER SACCO SOCIETY
Let me quote here that as the founding generations
being faced off by natural attrition, which of course will
befall every one of us the young generation should
remain cursed anytime they allow mismanaging this
golden gift.
From their predecessors, who toiled and toiled spending
their time, energy, and financial resources to make their
future, social, Professional and economic life a dream
come true.
Once again, let us hopefully join hands to continue

upholding same spirit of togetherness in handling the
affairs of this society and not forgetting that our God will
always be placed first in all our endeavors.
His Mercy, Guidance and Blessings will always be the Tool

of Those who entrust everything in his hands.
LATE GEORGE NDATHO MUCHIRI,

FOUNDER MEMBER NO 129
’
Join hands to continue upholding same spirit of togetherness
in handling the affairs of this society and not forgetting
that our God will always be placed
first in all our endeavors
LATE NDATHO MUCHIRI

MAGAZINE
A BASKET TOWER SACCO LTD
FOR ALL YOUR HEAD OFFICE: OL’KALOU
OL’Kalou/Nyahururu Road, FOSA Building, : P.O Box 259-20303,OL’KALOU
FINANCIAL NEEDS TEL: 051-8000822, Fax 020-2071205 CELL: 0723-836421;0733-416492 Hotline: 0731638930
E-mail: info@towersacco.co.ke / Website: www.towersacco.co.ke
WHY CHOOSE US? VISION:

To be accessible, universal SACCO of choice for excellent
and vibrant economic growth.
FINANCIAL PARTNER MISSION:

We always have Financial To mobilize, offer diversified sustainable financial products and
services at competitive rates to uplift social-economic standards
Solutions to all our of members within the republic of Kenya and beyond.
customers
TOWER SACCO PRODUCTS AND SERVICES
FINANCIAL SOLUTIONS REFINED PRODUCTS ACCOUNTS

. Normal Loan . Salary Account
We a basket for all your . Emergency Loan . Premium Account
Financial needs (36 Months)
. Mapato Loan
. FDR Accounts
. Asset Finance . BOSA Accounts
. Fosa Flex . Investment Group
GROWTH . Karibu Loan Accounts
By choosing to save . Group Boda Boda Loan . Micro credit Group
. Investment Loan Account
with us your growth . Current Account
ASSET FINANCE
is guaranteed . Trade Finance
. Education Accounts
. Mortgage . Stop Gap Account
. AgriBusiness Retirement
FRIENDSHIP (Mavuno Fertilizer) . Sacco Junior Account
We are friendly and ensure AgriBusiness Financing

Tower sacco has invested in ensuring the growth of Agribusiness through
that our Loan products offering products which entail both crop and livestock production. Some of
will grow you! the products offered to farmers include farm inputs like: -Mkulima maziwa loan,
Farm implements loan.Mkulima bora loan and Mfugaji daima loan;
BRANCHES: ENGINEER BRANCH, NYAHURURU BRANCH, MARALAL BRANCH, NDARAGWA BRANCH, MIHARATI BRANCH, GILGIL BRANCH,NAIVASHA BRANCH, NAKURU BRANCH, HARAKA BRANCH,MTWAPA,
THE
SATELLITE OFFICES Ngano – 0732-355871, Miharati – 0728-818251, Shamata – 0731-427978, 0702-319069, Wiyumirire – 0713-030843, Geta – 0728-516724, TOWER
Mirangine
MAGAZINE
SEPTEMBER 2018 11
– 0751-536544, Rumuruti- 0743514643
Pictorial
Tower
Sacco
CEO
in his
Office
Tower Sacco Marketing committe in a group photo
Tower Sacco Board of directors
Pride of Tower Sacco

Tower Sacco staff.
12 THE TOWER OCTOBER 12

MAGAZINE
Pictorial
CEO’s Personal Assistant
Tower Sacco Agronomist
Tower Sacco Marketing Van
Tower Sacco Headquarters Ol’kalou

THE TOWER OCTOBER 13
MAGAZINE
OUR PRODUCTS
NORMAL LOAN
TRANSFERING FROM
OTHER Normal loan is granted to Bosa members (TSC
SACCOS and other civil servants) four (4) times their
deposits. The member is required to have saved
A member/client, who wishes for three (3) months through check off from the
to join Tower Sacco from employer.
other Saccos, follows the process of writing to
their current Sacco a withdrawal from member- Security for the loan can either be collaterals like
ship notice of not less than sixty (60) days. He/ title deed or three (3) qualifying guarantor. The
she is required to clear any outstanding loan maximum repayment period is five (5) years at an
balances with the current Sacco through our JA- interest rate of 6.5% per annum.
HAZI LOAN product.
EMERGENCY 36; (E36)
In the case where the member has guaranteed
loans with the Sacco, they can look for alterna- This is an emergency loan that is granted five (5)
tive guarantors (by filling alternative guarantor times member’s deposits. It is tailored to cater for
forms). The customer then gets clearance with eventualities/emergencies that can be fall a mem-
the TSC and gives a stop order for deposits. ber.
The client transfers deposits to Tower Sacco and The maximum repayment period is now three (3)
is considered like an old member with us, quali- years or 36 months. The member’s salary should
fies for various loans and dividends/rebates. be processed through Tower Sacco where a mini-
Tower Sacco will be in a position to feed the mum salary of Kenya shilling 3,200 is left for the
members deposits and loan through the client’s member after loan deductions. Three guarantors
pay slip. are required for the security of the loan.
KARIBU LOAN
This loan is granted to new salaried members who have not accumulated deposits. The mem-
ber can qualify for a Karibu loan once the salary has been processed through Tower Sacco.
We consider the ability of the member through the pay slip. 20% of the loan is recovered to
the deposits account.
STOP GAP ACCOUNT

T his is an account designed for members to save for their retire-
ment. A member opens this account free of charge and saves
as little as they can afford.
The account attracts interest at the rate of 12% for amounts above
75,000 which, is ploughed back to the account. This money is ac-
cessible upon a customer giving the Sacco a retirement letter.
The customer can take lump sum amount or place a monthly
standing order to the savings.
These monthly payouts acts like the monthly salary the customer
was getting before retirement. The accounts helps the member
bridge/stop the gap between the last salary payment and when
the monthly pension starts coming in , hence STOP GAP. One can
start saving as early as they are employed.
15 THE TOWER OCTOBER

MAGAZINE
PMS AS A
MANAGEMENT
TOOL:
Compiled By : CATHERINE MATHENGE
HR MANAGER
P
erformance Management is
not a company’s way of em-
ploying “micro-managing” standing of a company as well as the in- provide their employees with specific feed-
techniques that stunt the profes- dividual success of its employees. back, which is greatly beneficial because it
sional growth of its employees. But In a nut shell performance manage- potentially increases job satisfaction.
rather, it is a strategic approach to ment is; - Whether in writing or delivered verbally,
ensuring the efficiency and effective- •A process that links organizational performance standards are enforceable. It
ness of an organization. Whether at goals and strategies to team and individ- is, however advisable that they are captured
the organizational, departmental or ual performance in writing to avoid questions in the future.
employee level, the goal of perfor- •Involves identification of common There should be a set standard for every as-
mance management is to make sure goals/objectives which relate to the pect of one’s position.
all business goals are being met in a higher goals of organization There are several factors to keep in mind
satisfactorily manner. •Results in establishment of written when developing this model. Performance
The effectiveness of an organiza- expectations, which are later used as an standards should:
tion in terms of whether or not it is appraisal measure and feedback •Be realistic in terms of whether or not
meeting its mission or goals can be it can be attained as well as whether or not
determined by engaging in perfor- How Does Performance Manage- employees have adequate training.
mance management. Performance ment Work?
management consists of five com- The drive to implement a perfor- Annual Employee Appraisal
ponents: “Planning work and setting mance management system is not suf- Document: While employers monitor
expectations, continually monitoring ficient. Management as well as employ- employees’ performance throughout the
performance, developing the capaci- ees must put forth the effort necessary year and provide feedback and coaching
ty to perform, periodically rating per- to make it happen. Organizations can during that interval, employers are also re-
formance in a summary fashion, and therefore build a successful program by; sponsible for conducting an employee ap-
rewarding. - praisal, which is generally done on month-
•Clearly identifying the job’s purpose ly/quarterly or annual basis. The appraisal
What is Performance Manage- as well as the duties associated with it. allows the employer to summarize the em-
ment? •Determine goals and how to meas- ployee’s performance, gauge job satisfac-
The phrase “Performance Man- ure outcomes. tion, as well as prepare for the future.
agement” was coined in the 1970s •Rank job priority.
by Dr. Aubrey Daniels, a clinical psy- •Characterize the standard of perfor- Coaching: Once the standard has been
chologist. At the time, he used it mance for critical aspects of the position. set and performance feedback has been pro-
to describe technology and the im- •Discuss employee performance and vided to the employee, it is critical that the
portance of managing behavior and provide feedback. This should at least be employer offer some type of coaching. The
the result of the behavior. Effective done on a quarterly basis. purpose of coaching is to strengthen areas
management would ensure proper •Keep track of performance records. of improvement as well as enhance areas
behaviors are being executed, which •If necessary, create an improvement where the employee is currently successful.
would in turn produce favorable re- plan to better employees’ performance. In order to accomplish this, coaching must
sults. He later associated this ap- Tools be done in a positive manner. The words
proach to the interactions of people It is unrealistic to expect employees used must build and not destroy. Coaching
whether in a formal or informal set- to perform at an optimal level without promotes employee motivation as well as
ting. providing them with the tools to suc- continued success.
ceed. The following tools are crucial to
With the proper training, man- the achievement of the system. Performance Management system is only
agement can manipulate the condi- as good as its evaluation process. It is not
tions of the workplace (e.g. policies Model of standards: Creating a enough to implement an effective program
and procedures, available skills to model that clearly defines employee per- that covers all the basics, but you must be
train and motivate employees) in or- formance standards helps the company able to measure its success via assessments
der to measure the true success of and employees avoid ambiguities in what and performance reviews.
the business – that is the financial is expected. It also enables employers to >>Turn to Next Page>>>
THE TOWER
MAGAZINE
OCTOBER 2018 16
PMS AS A MANAGEMENT TOOL:
<<From Page 15>>> ideas of what a performance review should Goal Setting
This will in turn allow you to see include, Every successful business plan requires
where modifications need to take place •Preparation: Both the employer and goals and objectives. Goals show the
(e.g. in the performance management employee must be adequately groomed strengths and weaknesses of plans and pro-
system itself, performance of the com- for the review. This may involve reviewing cedures. Implementing regularly evaluated
pany as a whole or specific employee any notes, engaging in a one-on-one dis- goals allows leaders to understand where
performance). cussion with the employee beforehand or performance is and what needs to be im-
simply making the employee aware of the proved. When managing performance, make
Assessments review in advance. sure that you implement SMART goals.
There are a variety of assessments
that can be utilized to determine skill, •Prioritize the meeting: To show SMART Goal Setting
knowledge, and ability. These assess- the employee that this review is a top pri- People often fail to reach their goals.
ments can be administered when the ority, there should be a formal agenda that This usually indicates that the wrong goals
individual is a prospective employee or is adhered to. There should also be as few are being chosen. SMART goals will improve
an actual employee. interruptions as possible. the chances of achieving both personal and
•Encourage positivity: When speak- business goals.
Types of Assessments ing to the employee, invoke positive re-
Pre-Screening: A Pre-Screening As- sponses by communicating in a positive SMART goals:
sessment can be used to find out in- manner. •Specific: Goals should have specific
formation on a prospective employees •Clarity: Be sure the purpose of the instructions.
skills and knowledge before committing meeting is clear from the beginning. •Measurable: It should be clear when
to hire them and this can save the em- •Expectations: Review the job de- goals and objectives are met.
ployer costly mistakes down the road. scription, why it is needed, and the stand- •Attainable: Impossible goals are not
360-Degree Review: As its name ards of performance. motivating.
implies, this type of assessment takes •Realistic: Goals need to be something
a comprehensive look at an employee •Explain employee’s perfor- people are able to work towards.
with regard to their work performance. mance: Discuss the employee’s actual •Timely: Goals need specific time-
This information can be attained by performance, whether it fell below, met frames.
involving a diverse pool of individuals, or exceeded expectations. Give specific
with varying levels of interaction with examples. Monitoring Results
the employee (e.g. supervisor, peers, Once goals are established, it is impor-
clients, etc.) •Employee feedback: Allow the em- tant to monitor their results. This will deter-
ployee to express their concerns or sug- mine how effective a plan or strategy is. Use
Knowledge: This type of assess- gestions. a basic evaluation to determine what chang-
ment generally takes on a question- •Goal-setting: Discuss goals for areas es need to be made in a plan and reevaluate
naire format. It allows the employer to that require improvement. If there are no your goals.
ask specific questions on topics relating “areas for improvement”, create goals to
to the business, usually in the form of enhance the knowledge and skills of the What to evaluate:
multiple choice questions. employee for personal development as •Were the goals and objectives achieved?
well as bettering the department / compa- •Were they achieved in the established
Performance ny as a whole. time frame?
•What is the feedback from employees
Reviews •Follow-up: Determine the appropri- and leadership?
This is an analysis of an employ-
ate method and or time for follow-up. •What are the financial gains or losses?
ee’s work habits undertaken at a fixed
Closing: The meeting should end pos-
point in time to determine the degree
itively. Review the contributions the em- Establishing Performance Goals
to which stated objectives and expecta-
ployee is making to the company. Inform Performance goals require strategic ac-
tions have been reached.”
employee that you are willing to help tion. To be effective, these goals should not
While each company has its own
be handed down to employees. It is impor-
tant to include employees in the goal setting
process and encourage them to meet their
individual performance goals. This will im-
prove individual and company performance.
Strategic Planning
A strategic plan determines where em-
ployees are, where they want to be, and
how they will get there. It should embrace
the values of the organization and align with
the following company information. The or-
ganization must create a strategic plan be-
fore creating performance goals.
>>Turn to Next Page>>>

MAGAZINE
Motivating Tips
•Lead by example: Motivate yourself
before you can motivate others.
•Meet with individuals: Communicate
with employees directly to find out what
motivates them.
•Reward employees: Find motivating
rewards for individuals.
•Delegate: Do not micromanage employ-
ees.
<<From Page 16 >>>
•Inform: Inform people about how they
are making a difference in the organiza-
Company Strategic Plan: Vision, tion.
Mission, Goals, Objectives •Celebrate: Pay attention to achieve-
ments and celebrate with employees.
Employee performance goals need to consider the com-
pany’s strategic plan. Individual performance goals must be Feedback
SMART goals that include strategies and actions for employees 360 degree feedback is an alternative
to take. method of reviewing employees. It is
useful for evaluating performance and
Job Analysis provides evaluations from different
A job analysis determines what is required to do a specific
job. It will help determine which skills and attributes an employ-
sources to paint a clear picture of how
ee needs to complete a job successfully. A job analysis will help well an individual performs. Identifying
determine who to hire, how to train, and what compensation a strengths and weaknesses will allow em-
job should receive. Job analyses are instrumental in determin- ployees to continually improve how they
ing performance. perform.
The evaluations will help improve perfor-
Setting Goals
Performance goals need to be SMART goals. They need to mance by:
address behavior, competency, and results. Remember to in- •Identifying and enhancing strengths
volve employees in their performance goals. •Identifying areas that need develop-
Motivation ment
Performance is related to motivation. Motivation is the job •Helping Employees set goals
of every leader. People have different personal motives, and
leaders must meet the needs of individuals.
•Creating action plans
THE TOWER
MAGAZINE
OCTOBER 2018 17
ALTERNATIVE
BANKING CHANNELS Compiled By JAMES GITAU
A
number enter 20*31 fol-
s the name sug- (USSD) as well as a mobile appli-
lowed by amount and your
gests this is the new cation. The channel allows members
M-PESA pin.
method of carrying to transact to their accounts at their
This means mem-
TOWERM-LOAN
out banking opera- comfort because all they need is their
tions without physically visiting mobile phone.
bers can get loans without USSD Dial *276*20#
physically visiting a branch
banking halls to access services. Services accessible on this select option 9 choose mobile loan code
as the appraisals are done
Technology has been evolving channel include account deposits, enter 00 repayment period enter
via the system.
and this has led to the adoption loan repayments, loan guarantor-ship, 1 enter any value between 1000 and 5000.
of the channels because they utility bill payments account with-
The channels are
enhance good performance of drawals and loan requests as well. To repay
of great advantage to the
banking services and increases Go to M-PESA > Lipa na M-PESA
members because If we
levels of customer satisfaction 3. Sacco Link ATM cards enter bill 506900 account number
think about convenience,
by providing anytime, anywhere This is a channel that allows enter 20*31 followed by amount and your
agents are closer to clients’
and multi way banking services members to transact at any VISA M-PESA pin.loan code enter 00 repayment
homes or place of business
including varieties of services, branded ATM point members can period enter 1 amount enter
and are trusted members in
convenience, speed, efficiency, check their account balances, de- any value between 1000 and 5000.
their communities. They
security and cost effectiveness. posits funds to their accounts and as
can establish a personal and
withdraw funds from their account.
lasting relationship with
The technology in use clients, assisting them with
plays a vital role in terms of pro- product information.
viding a near-to-branch experi-
ence to the customer and secu-
rity of the member funds should
always be guaranteed.
At Tower Sacco the
following alternative channels
are in place.
1. Tower Sacco Agency
This channel enables
member transact directly to their 4.Tower M-loan
Sacco account at a Tower Sacco This is a loaning channel TOWERM-LOAN
and it is accessible via a USSD code
Agent close to them. The chan-
nel allows account deposits to whereby members can access the ser- USSD Dial *276*20#
loan, savings, deposits accounts, vice by dialing *276*20# and request select option 9 choose mobile loan code
funds transfer services between for emergency loans and salary in enter 00 repayment period enter
member accounts, loan repay- advance loans the funds are usually 1 enter any value between 1000 and 5000.
ments, account withdrawal ser- credited on the members m-pesa ac-
vices, mini-statement requests. counts instantly. To repay
Go to M-PESA > Lipa na M-PESA
Our Mobile Loan is now up. enter bill 506900 account number
To access dial *276*20# select option enter 20*31 followed by amount and your
9 choose mobile loan, loan code enter M-PESA pin.loan code enter 00 repayment
00 repayment period enter 1 amount period enter 1 amount enter
enter any value between Ksh1000 and
any value between 1000 and 5000.
Ksh5000.
NB
You must have deposits equal
2. Tower Cash or greater than Ksh 20,000.
This is an Unstructured To repay Go to M-PESA > Lipa na
Supplementary Service Data M-PESA enter bill 506900 account
18 THE TOWER OCTOBER 2018 4

MAGAZINE
HIGHEST SAVERS 2018 CHART
S/NO. AMOUNT REGION
S/NO. AMOUNT REGION
1 18,550,650.90 GILGIL
2 12,097,250.00 SOUTH KINANGOP
3 10,772,600.00 NAIVASHA 99 2,114,830.00 KINAMBA
4 10,203,150.00 NAKURU 100 2,108,560.00 SOUTH KINANGOP
5 10,160,000.00 OL-KALOU 101 2,104,000.00 MIHARATI
6 10,026,000.00 OL-KALOU 102 2,101,047.70 NORTH KINANGOP
7 9,023,200.00 MIHARATI 103 2,094,194.43 OL-KALOU
8 8,600,901.00 OL JORO OROK 104 2,087,685.10 OL-KALOU
9 8,600,901.00 OL JORO OROK 105 2,075,621.00 NYAHURURU
10 8,477,486.12 NAIROBI 106 2,074,500.00 NAIVASHA
11 7,809,600.00 OL-KALOU 107 2,068,747.16 UNITED KINGDOM
12 7,485,695.50 NAKURU 108 2,065,700.00 NYAHURURU
13 7,355,000.00 RUIRU 109 2,056,726.18 SUBUKIA
110 2,043,314.00 KINALE
14 7,034,000.00 NYAHURURU
111 2,035,160.00 NAIROBI
15 6,573,000.00 GILGIL
112 2,025,161.00 OL-KALOU
16 6,289,659.74 NYAHURURU
113 2,024,315.00 CAYMAN ISLAND
17 5,892,500.00 KAHEHO
114 2,015,900.00 OL JORO OROK
18 5,819,800.00 NAKURU 115 2,010,300.00 MIHARATI
19 5,624,594.54 SOUTH KINANGOP 116 2,007,087.47 NYAHURURU
20 5,300,000.00 KIAMBU 117 2,004,000.00 SOUTH KINANGOP
21 5,180,800.00 NYAHURURU 118 2,002,250.00 NAIVASHA
22 5,040,000.00 GILGIL 119 2,000,500.00 NYAHURURU
23 5,032,500.00 KINALE 120 2,000,000.00 MIRANGINE
24 5,000,000.00 KISERIAN 121 2,000,000.00 NORTH KINANGOP
25 4,961,000.04 OL-KALOU 122 1,983,048.84 NAIVASHA
26 4,768,849.00 NAIVASHA 123 1,973,200.00 NYAHURURU
28 4,504,378.00 NYAHURURU 125 1,945,000.00 NAIROBI
30 4,154,529.60 AUSTRALIA 127 1,913,027.50 NAIVASHA
128 1,900,000.00 NAKURU
31 4,080,450.00 NAKURU
129 1,897,500.00 NAIVASHA
32 4,066,096.00 NYAHURURU
130 1,897,400.00 OL-KALOU
33 4,035,350.00 NORTH KINANGOP
131 1,885,400.00 NAKURU
34 4,004,000.00 NAIROBI
35 3,841,900.00 NYAHURURU 133 1,869,900.00 KAHEHO
36 3,650,000.00 NAIROBI 134 1,860,800.00 OL-KALOU
37 3,595,500.00 NAKURU 135 1,857,229.96 NAIROBI
38 3,552,800.00 NAIROBI 136 1,851,000.00 NYAHURURU
40 3,459,320.00 SOUTH KINANGOP 138 1,818,725.00 OL-KALOU
41 3,441,000.00 NORTH KINANGOP 139 1,812,000.00 NAIROBI
42 3,368,000.00 NAIVASHA 140 1,761,000.00 UNITED KINGDOM
43 3,320,600.00 GILGIL 141 1,748,766.00 SOUTH KINANGOP
45 3,215,000.00 OL-KALOU 143 1,733,836.00 NAIROBI
46 3,212,850.00 OL-KALOU 144 1,729,500.00 NAKURU
47 3,073,601.10 MARALAL 145 1,728,500.00 MARMANET
48 3,068,600.00 GILGIL 146 1,718,000.00 NAIROBI
147 1,702,300.00 NAIROBI
148 1,700,600.00 NAKURU
50 3,004,076.32 NAKURU
149 1,692,615.50 GILGIL
51 2,999,212.31 OL-KALOU
151 1,670,000.00 OL-KALOU
53 2,913,111.00 NORTH KINANGOP 152 1,657,350.00 NAKURU
54 2,908,000.00 SOUTH KINANGOP 153 1,651,952.26 SOUTH KINANGOP
56 2,879,597.00 MIHARATI 155 1,641,905.00 OL-KALOU
57 2,772,634.00 OL-KALOU 156 1,638,000.00 MOMBASA
58 2,731,350.00 NYAHURURU 157 1,634,760.00 MARALAL
59 2,706,400.00 MOMBASA 158 1,626,769.00 SOUTH KINANGOP
60 2,688,220.00 MARALAL 159 1,624,600.80 OL-KALOU
61 2,673,000.00 NYAHURURU 160 1,620,000.00 NAKURU
62 2,646,309.31 OL-KALOU 161 1,620,000.00 GILGIL
63 2,644,200.00 NAIVASHA 162 1,605,320.66 OL-KALOU
64 2,642,000.00 NAIROBI 163 1,594,981.00 NORTH KINANGOP
65 2,583,394.00 MARALAL 164 1,589,599.26 NAIVASHA
66 2,572,000.00 NAKURU
67 2,523,014.00 NYAHURURU
167 1,558,762.79 NYAHURURU
68 2,522,990.91 NYAHURURU
168 1,554,798.50 GILGIL
69 2,518,286.20 GILGIL
169 1,553,732.41 MARALAL
70 2,509,980.00 NYAHURURU 170 1,541,000.00 MARALAL
71 2,464,200.00 WANJOHI 171 1,540,300.00 OL-KALOU
72 2,461,480.00 MIHARATI 172 1,532,152.49 SOUTH KINANGOP
73 2,457,100.00 NAKURU 173 1,530,911.67 NORTH KINANGOP
74 2,419,400.00 MAKUMBI 174 1,527,770.65 NYAHURURU
75 2,411,000.04 OL-KALOU 175 1,523,634.15 NYAHURURU
76 2,383,100.00 MARALAL 176 1,521,559.00 NORTH KINANGOP
77 2,332,800.00 NAIROBI 177 1,519,685.73 OL JORO OROK
78 2,320,000.00 NAIROBI 178 1,518,200.00 NAKURU
79 2,295,300.00 OL-KALOU 179 1,509,800.00 NAVASHA
80 2,292,500.00 NAKURU 180 1,506,184.86 NORTH KINANGOP
81 2,282,449.00 NYAHURURU 181 1,500,500.00 OL-KALOU
82 2,273,680.00 OL-KALOU 182 1,500,000.00 NAIROBI
83 2,262,659.00 KINALE 183 1,475,869.58 NAKURU
184 1,468,550.00 NYAHURURU
84 2,261,314.82 OL-KALOU
185 1,466,972.00 NAKURU
186 1,460,021.06 NAIROBI
86 2,231,600.00 NYAHURURU
187 1,460,000.00 NYAHURURU
87 2,224,997.60 NYAHURURU
188 1,454,661.70 KINALE
89 2,207,765.51 UNITED KINGDOM 190 1,435,800.00 NAIVASHA
90 2,205,818.77 OL-KALOU 191 1,434,750.00 MARALAL
91 2,198,194.00 MARALAL 192 1,433,843.50 OL JORO OROK
92 2,169,987.00 NAKURU 193 1,430,000.00 SOUTH KINANGOP
93 2,158,000.00 NORTH KINANGOP 194 1,427,489.32 NAIROBI
97 2,137,985.00 NAKURU 198 1,402,000.00 NAIVASHA
98 2,117,992.98 NYAHURURU 199 1,387,540.00 KAJIADO
THE TOWER
MAGAZINE
OCTOBER 2018 19
HIGHEST SAVERS 2018 CHART
S/NO. AMOUNT REGION
S/NO. AMOUNT REGION
200 1,384,000.94 SOUTH KINANGOP 300 1,138,000.00 NORTH KINANGOP
203 1,381,721.19 NYAHURURU 303 1,135,904.00 OL JORO OROK
204 1,376,750.00 NAKURU 304 1,135,580.00 OL-KALOU
305 1,132,980.00 WANJOHI
205 1,376,530.00 OL-KALOU
306 1,130,600.00 OL-KALOU
206 1,371,300.00 NYAHURURU
307 1,129,958.42 OL JOROK
208 1,368,700.00 NAIVASHA 309 1,128,000.00 NAIROBI
209 1,358,198.50 NYAHURURU 310 1,127,913.00 NYAHURURU
210 1,352,200.00 NDARAGWA EAST 311 1,127,099.00 NYAHURURU
211 1,350,286.08 NAIVASHA 312 1,124,341.90 MIHARATI
212 1,350,225.00 OL JORO OROK 313 1,122,196.73 NYAHURURU
214 1,344,324.00 NAIROBI 315 1,120,000.00 NAIROBI
316 1,118,770.32 NYAHURURU
317 1,116,569.53 OL-KALOU
216 1,339,375.36 NYAHURURU
318 1,114,939.00 OL-KALOU
217 1,338,500.00 NORTH KINANGOP 319 1,113,500.00 GILGIL
220 1,333,600.00 NDARAGWA 322 1,111,500.00 OL KALOU
221 1,322,388.00 GILGIL 323 1,110,100.00 NAIVASHA
223 1,318,075.02 SUGUTA 325 1,108,800.00 MIHARATI
224 1,313,880.00 MIHARATI 326 1,108,782.25 GILGIL
327 1,108,000.00 GILGIL
225 1,310,750.00 KISERIAN
328 1,104,600.00 NAIVASHA
226 1,306,987.00 WANJOHI
329 1,103,551.15 MIHARATI
227 1,302,261.11 MATATHIA
330 1,102,228.55 SUBUKIA
228 1,302,034.25 IGWAMITI 331 1,101,636.91 NYAHURURU
229 1,298,545.00 MATATHIA 332 1,100,867.32 SOUTH KINANGOP
232 1,281,694.00 OL-KALOU 335 1,098,600.00 GILGIL
234 1,276,755.10 OL-KALOU 337 1,096,980.00 NYHURURU
235 1,272,079.00 NDARAGWA 338 1,096,559.55 SOUTH KINANGOP
339 1,095,569.00 OL JORO OROK
236 1,269,630.00 ELDORET
340 1,095,495.18 NYERI
237 1,260,000.00 OLKALOU
341 1,094,000.00 MARALAL
240 1,254,000.00 OL-KALOU 344 1,087,852.00 MOLO
241 1,253,490.01 NYAHURURU 345 1,085,691.14 KAHEHO
243 1,245,420.00 SUGUTA 347 1,083,886.00 MUKEU
244 1,240,000.00 MARALAL 348 1,083,410.22 MIHARATI
245 1,239,790.83 MIHARATI 349 1,082,980.00 NAIVASHA
350 1,082,500.00 MIHARATI
246 1,231,347.40 WANJOHI
247 1,229,148.50 MARALAL
352 1,080,026.50 OL-KALOU
248 1,228,500.00 OL JORO OROK 353 1,079,860.00 WANJOHI
250 1,228,134.45 SOUTH KINANGOP 355 1,076,750.00 NORTH KINANGOP
253 1,224,880.00 NAIVASHA 357 1,075,800.00 NAKURU
255 1,216,400.00 KINALE 359 1,074,730.00 NYAHURURU
257 1,213,000.00 MIHARATI 361 1,070,000.00 NORTH KINANGOP
362 1,065,380.00 NYAHURURU
258 1,212,934.43 NGARUA
363 1,065,000.00 NAIVASHA
364 1,062,103.19 OL-KALOU
261 1,209,000.00 NAKURU 366 1,061,000.00 GILGIL
262 1,208,000.00 NAIROBI 367 1,060,235.00 NYAHURURU
263 1,206,700.00 NORTH KINANGOP 368 1,059,868.12 NYAHURURU
264 1,206,639.00 GILGIL 369 1,056,702.00 OL-KALOU
266 1,204,920.00 NYAHURURU 371 1,055,776.66 SOUTH KINANGOP
267 1,201,900.00 NYAHURURU 372 1,055,500.00 NAKURU
373 1,055,346.00 NYAHURURU
268 1,201,571.55 KERICHO
374 1,055,200.21 OL JORO OROK
269 1,200,000.00 NYAHURURU
375 1,055,000.00 NAIVASHA
270 1,198,567.86 NYAHURURU 376 1,054,894.94 OL JORO OROK
272 1,197,801.45 SOUTH KINANGOP 378 1,052,500.00 NAIVASHA
274 1,188,500.00 OLKALOU 380 1,052,133.00 NYAHURURU
276 1,187,532.00 IGWAMITI 382 1,047,504.00 MARALAL
277 1,180,000.00 NAKURU 383 1,047,000.00 NAKURU
384 1,046,665.00 OL JORO OROK
278 1,179,720.00 OL-KALOU
385 1,046,172.21 NYAHURURU
279 1,177,100.00 MIRANGINE
386 1,044,800.00 NYAHURURU
280 1,175,000.00 THIKA
387 1,043,656.10 MIHARATI
281 1,173,394.06 OL-KALOU 388 1,041,300.00 NAKURU
282 1,172,679.05 NYAHURURU 389 1,040,800.00 MAKUMBI
283 1,172,679.00 RUMURUTI 390 1,040,287.03 OL-KALOU
285 1,170,000.00 NAIVASHA 392 1,037,800.00 MIHARATI
286 1,169,709.50 KAHEHO 393 1,034,800.00 SOUTH KINANGOP
288 1,164,000.00 NORTH KINANGOP 395 1,033,955.00 OL-KALOU
396 1,033,198.50 GILGIL
289 1,159,980.00 NYAHURURU
397 1,032,476.93 OLKALOU
290 1,158,500.00 OL-KALOU
398 1,030,500.00 NDARAGWA
292 1,154,562.40 NAIVASHA 400 1,030,000.00 NAKURU
293 1,152,772.33 NORTH KINANGOP 401 1,029,000.00 MARALAL
294 1,152,438.36 SOUTH KINANGOP 402 1,028,000.00 NAIVASHA
295 1,151,845.00 SOUTH KINANGOP 403 1,028,000.00 NAKURU
296 1,151,234.31 OL-KALOU 404 1,025,088.50 MIHARATI
297 1,148,000.30 KISII 405 1,024,660.00 NYAHURURU
298 1,147,675.50 GILGIL 406 1,024,601.41 NORTH KINANGOP
407 1,023,829.94 OL-KALOU
299 1,147,500.00 KARURI
408 1,022,685.00 NDARAGWA EAST

MAGAZINE
HIGHEST SAVERS 2018
ROLE OF SUPERVISORY BOARD 410 1,021,775.00 NYAHURURU
411 1,021,000.00 NYAHURURU
Compiled By JOSPHINE WANJIRU MURIITHI 412 1,020,000.35 NYAHURURU
CHAIRPERSON SUPERVISORY COMMITTEE.
413 1,018,650.00 BARAGOI
T
he right of members to 414 1,017,750.00 NYAHURURU
supervise the opera- 415 1,016,313.00 OL-KALOU
tions of the Board and
management derives from 416 1,015,500.00 NAIVASHA
the extensive potential lia- 418 1,015,000.00 NAKURU
bility and losses to members
both as owners and users of 417 1,015,000.00 NDARAGWA
the services of the SACCO. 419 1,011,435.80 NYAHURURU
As it is not practical for all the
members to participate in 420 1,011,350.00 SOUTH KINANGOP
the supervision of the board, 421 1,010,309.00 SOUTH KINANGOP
a Supervisory committee of
not more than three people 422 1,010,005.00 NYAHURURU
elected by members, is as- 423 1,010,000.00 NORTH KINANGOP
signed this role.
424 1,008,048.00 GILGIL
ternal audits of operational areas
The members of the super- throughout the year. 425 1,007,068.16 SOUTH KINANGOP
visory committee should not - To submit reports of its findings
be employees or individuals 426 1,007,015.00 NYAHURURU
to the Board.
serving in the Board or per- 427 1,007,000.00 MIRANGINE
sons related to them. This -To represent reports of its find-
committee is completely in- 428 1,006,300.00 NAIVASHA
ings to the AGM.
dependent from any control - Receive complains from mem- 429 1,006,000.00 WANJOHI
of the board. bers. 430 1,005,995.50 OL JORO OROK
The duties of the commit- We wish to thank the members 431 1,005,992.79 NYAHURURU
tee include: for their continued support and 432 1,005,900.00 OL-KALOU
their loyalty to the Sacco. We af-
-To verify all transactions firm the stability of the SACCO 433 1,005,072.65 MASINGA
affected on behalf of every and Pray May God walk with us
member. 434 1,005,003.23 NAIVASHA
to preserve the future of our gen-
eration. 435 1,004,697.03 NYAHURURU
- To undertake periodic in-
436 1,003,956.41 NAIROBI
TOWER SACCO LIMITED 438 1,003,114.80 NAIROBI
439 1,003,000.00 OL-KALOU
440 1,002,509.00 NAIVASHA
ENGINEER 0725 562 016 SHAMATA 0731427978 441 1,002,500.00 NYAHURURU
NDARAGWA 0711 727 714
GILGIL 0754 507 679 WIYUMIRIRIE 0713030843 442 1,002,400.00 OL-KALOU
MIHARATI 0727 172 775 MIRANGINE 0702319069
0736 500 971 NGANO 0732355871 443 1,001,000.00 GILGIL
NAKURU 0740 852 490
0775 131 098 GETA 0728516724 444 1,001,000.00 NYAHURURU
NAIVASHA 0731 028 088
MARARAL 0707 805 818
MURUNGARU
RUMURUTI
0700883310
0743 514 643
445 1,000,476.98 NAKURU
0788 975 698
KWA HARAKA 0727 072 991 MTWAPA MARKETING
446 1,000,320.00 GILGIL
NYAHURURU 0788 975 724 OFFICE
OL’KALOU 0723 836 421 0737070655
0707 937 575
THE TOWER
MAGAZINE
OCTOBER 2018 21
Review Of The Sacco Act
THE SEVEN PRINCIPALS
The Cooperative Principle Of
Education, Training And Information
Compiled By George Kamau Kamau- Secretary, Marketing Committee.
T
he cooperative movement was Identity, which defines the val-
started in Britain as early as ues that motivate cooperators to
the year 1844 by the Rochdale organize and operate their busi-
pioneers. nesses. The Statement calls the
cooperative principles “the guide-
It later spread to the rest of the lines by which cooperatives put
world. The movement is anchored their values into practice.” Since
on seven pillars commonly known cooperatives can only function if
as the principles of cooperatives. members understand the theory
These are; and practice of cooperatives, it is
vital to educate them. Seen in this
•Open and Voluntary Mem- context, education is both a value
bership and a practice!
• Democratic Member Control
• Members’ Economic Partic- The fifth principle is now called Ed-
ipation ucation, Training and Information.
•Autonomy and Independ- It states:  “Cooperatives provide
ence education and training for their
•Education, Training, and members, elected representatives,
Information managers, and employees so they
•Cooperation Among Cooper- can contribute effectively to the
atives development of their cooperatives.
•Concern for Community. They inform the general public
- particularly young people and
opinion leaders - about the nature Why conduct members educa-
In 1995 the International Coopera-
and benefits of cooperation.” tion?
tive Alliance (ICA) revised the princi-
1.To educate members on products
ples which had guided cooperatives
It is therefore of paramount impor- and services Provided by their Sacco.
since 1966. They are now couched
’
tance for any cooperative society To educate members on the impor-
within a Statement of Cooperative
worth its salt to conduct education tance of savings
to all its stakeholders. 3.To update members on emerging
At TOWER SACCO the issues in the cooperative movement
Board ensures that the Who Should be educated? 4.To equip staff with current knowl-
1.Members of the cooperative edge and skills for day to day running
above principle is strictly of the SACCO business
2.Elected representatives
adhered to as attested to 3.Senior staff/ managers 5.To keep the Board updated on Gov-
by various education fo- 4.Employees of the cooperative ernance issues
rums held. So far this year 6.To equip the board members with
How is education conducted relevant knowledge and skills for bet-
there has been Education ter management of their organization.
to the above target groups?
forums at Engineer, a) Through education days
Kwa Haraka, Nyahururu organized per electoral zones 7.To enable the stakeholders contrib-
b)Through seminars and work- ute effectively to the development of
and Ndaragwa West. More
’
shops their cooperatives
is planned for other areas c)Through in house trainings 8.To inform the general
in the coming year. d)Through electronic and print public about the nature
media platforms and benefits of cooperation.

MAGAZINE
REAL LIFE ACT genuine insurance companies. I preach
REAL LIFE EXPERIENCE

Tower SACCO like a preacher to many
new members. On village level, I con-
cur that Tower SACCO had not reached
Compiled By:By PETER WANJUKI BONIFACE,Formerly of Kanyagia Primary School many neural savers especially ‘welfare
groups’. Let the management send field
I wish to notify Tower SACCO that I officers where these groups are meet-
other services. In support of other mem-
have retired from teaching profes- ing every month. I am a witness when
bers, I am a beneficially of my Tower ser-
sion on 1st July, 2018 after teach- Hon. Peter Ngugi was overwhelmed
vices. It had saved many from going bank-
ing for more than thirty-four years. by some people’s enquiry about Tower
rupt. Emergency loans, school fees loans
Part of my memoir won’t skip the SACCO during a fund-raising occasion.
and investment loans have saved many
role played by SACCO concerning my from the agony of cruel life of stress and
entire individualistic financial obliga- However, it is important that our
depression.
tion covering the large part of my life SACCO needs members of integrity. I
Opening doors to other non-teach-
both as a bachelor and my marital am excited that teachers are competing
ing members and business investors is a
success. well in the world of investment today.
true testimony it had contributed towards No demeaning of teachers. Poverty,
meeting financial obligation to our com-
In most cases, I have discov- borrowing like beggars from friends
munity. Without Tower SACCO my life
ered that most retirees disappear and neighbours is now at the bottom
could have landed me to a problematic
into the oblivion forgetting to com- of the grave. However, they are a few
life. Thanks for rescuing members from
ment anything positive on financial critics who only spread unfounded ru-
institutions which demanded skyrocket
contribution by our SACCO in their mours concerning our SACCO. They
interest rates. Despite some challeng-
lives. Some feel they have gone should volunteer to assist our SACCO in
es facing Tower SACCO, it is the duty of
home to rest. An old man of ninety positive ideas that we will make it more
all members to contribute positively to-
years recently completed a business dynamic and impressive to old and new
building worth two million in our vil- clients.
These quotes are good
lage. It is true that teachers of yester to other members.
years lived as condemned, frustrat- SACCO has come to encourage
ed, humiliated and demeaned indi- and save international clients (Kenyans
1.A dream needs sacrifice, living abroad) to trust Tower SACCO in
viduals by convectional banks which devotion, dedication,
took them as financial dwarfs. You completing their projects and invest-
courage and trust in God. ments rather than relying on unreliable
can imagine they queued long lines
snaking outside banks while being relatives and institutions which bring
2. Impatient dreamers will look agony to them.
addressed using loudspeakers. for shortcuts in success. Special thanks once again go to
Rarely would teachers access the C.E.O Mr. Njihia for organising his
3.Failure is never final staff to work as a team for the benefit
the services of a manager unless they
undergo a long bureaucratic appoint- of the members. The staff solves myriad
4.Success never ends. financial problems affecting members
ment. Only super rich gained access 5.Lack of money is a big
to his office. Nobody believed that and subsequently they leave Tower
challenge to our lives. SACCO with smiling faces and hope.
the same teacher could form a giant
Tower Sacco which could tailor needs 6.Impossibility thinking and
of members and challenge other The recent retiring teachers, I in-
procrastination kill our cluded, deserve a quick financial advice
banks. SACCO is like a successful hap- dreams.
py married couple. to avoid landing on wrong investments
7.Visualise your dreams and financial quacks. Some start living
The birth of Tower SACCO for- through mental binoculars.
merly Nyandarua Teachers SACCO luxury lives and within a short span, all
was the brain child of all enslaved is gone. Learning and interacting with
8.Listen to many but the final financial experts from Tower SACCO is
teachers under visionary manage- decision is yours.
ment by past and present manage- the solution. Advice given to retirees
ment. The management and staff by non-financial organisations which
deserve a credit for their exemplary only give counselling, only build fear on
wards the SACCO to be a giant SACCO in
service. I look forward as nobody them.
the country. It started as a tiny institution
would believe that any loan can be but now spreading like a bush fire. You can
processed by a touch of button. It is May I take this opportunity to
deposit or withdraw money from several
really a miracle. thank Tower SACCO for its contribu-
branches as you criss-cross our county tion to my personal life. Some exam-
and its environs.
My thanks also go to our ples are, paying my Teachers college
honorary secretary Mr. Ngugi, staff fees and upkeep (Mosoriot TTC 1985
My experience with some insur-
Ndaragwa branch for according me -1987) my savings, Egerton University
ance companies is very worrying. They
good services all time of my career. (2003 – 2008) children fees in college
talk very sweet words but deliver half-
Bravo! God bless you! The Tower and university, investment in Rumuruti
baked promises. It is time I advise teach-
SACCO is my pride when I see its town. I am looking forward to join busi-
ers to save with Tower SACCO or else they
expansion, employing our sons and ness community and my dream will be
face their wrath. I commend only health,
daughters, giving good dividends and fulfilled by Tower SACCO, my financial
motor vehicle and fire insurance from assistance.
MAGAZINE
INFLATION
UNDERSTANDING INFLATION
Compiled by: SAMUEL KURIA - TREASURER
I nflation means a trend of rapid rise become more and more rich price level.
in price level. That is, an excess of and poor persons become more
anticipated expenditure over the ac- and more poor. Inflation can be Social evils such as
tual prices of the available output. Infla- compared with robbery. It also hoarding smuggling create the
’
tion is the main problem these days and stimulates social evils. It dis- artificial shortage.
most of the countries of the world are turbs the proper working of any
facing this problem. economy.
Inflation is
When prices and wages push one Inflation is caused by
another upwards and there is a contin- the following: harmful to the
uous expansion in the supply of money, A rapid increase in the
then this situation is described as creep- demand for goods and services economic,
ing or persistent inflation. which lead to rise in price level.
Rapid increase is as a result of social and
The most serious type of inflation change in taste and preference.
is known as run away or galloping in- political stability
flation where the currency in circulation Increase in cost of pro-
becomes unacceptable and in the end, a duction. The cost of production of any country. It
may rise due to higher wages
new currency is to be issued.
levels, higher cost of raw mate- results in unfair
rials or more taxes on the pro-
Inflation is harmful to the eco-
nomic, social and political stability of any duction of commodities. distribution of
country. It results in unfair distribution
of income. During inflation, rich persons Shortage of goods also
income.
results in the rise in price lev-
el. This shortage may be due to
During inflation,
decrease in production. rich persons
Increase in invest- become more
ment by the government. The
amounts which are invested and more rich
by the government on the de-
velopment projects like dams, and poor persons
power houses, irrigation pro-
become more
’
jects do not increase national
income in the short period. The
money spent by the govern- and more poor.
ment on these projects comes
into circulation.
This greater supply of
money also results in the rise in Samuel Kuria
MAGAZINE
DELOCALIZATION
’
There are more fortunes to the
delocalized as opposed to the natives. Those
delocalized are exposable to widened opportunities
in terms of investment just like Abraham in Genesis
12:1-4. He was delocalized by God at his 75 years
and he prospered drastically.
Peter Ngugi
Effects Of
Delocalization
On Saccos
Compiled by: Peter Ngugi
Hon Secretary
channels of service delivery like ATM,
T
he term delocalization has Agencies and mobile banking models. There are all chances of doing heavy
repeatedly featured in the One can comfortably deposit, withdraw investments in those new areas than in
social media, cyber world and get account balances and enquire for mi- any other. About 45% of the GDP is de-
in the internet for the last six months. ni-statements while resting on one’s bed rived from the co-operative movement
When it was focused to the teachers or on watching world cup. and through delocalization there are high
and TSC geared on the same, a chill of chances of the same growing to 50 or
cold rans down their spine. Those in Samburu will access servic- 55%.
es from our branch in Maralal, those in
The policy on delocalization is Nakuru may opt for Nakuru town branch, In deed SACCOs contribute a lot to
meant to fulfil the National Cohesion Mirangine or Gilgil while those in either the financial and economic growth and I
and integration as outlined in the Ken- Naivasha or Murungaru which is a good would urge all the teachers to embrace
yan constitution which is quite circum- diversity. The most encouraging thing delocalization for new SACCO market.
stantial. is that the board had foreseen delocali- This is a journey that we have to walk
zation some five years ago and decided together and turn around the economy of
In my own view and opinion, the to delocalize Tower SACCO. “If at all you our people and more so our loving coun-
whole idea on delocalization is good embraced this why hesitate now?” try KENYA.
and of good intentions in the sup-
port of the government agenda. The Delocalization to SACCO’s simply
only challenge is the fear of the un- means more business more accounts,
known poor timelines and resistance to more members and more opportunities Delocalization to
change. The fear so pronounced has
led many to pejorative thoughts.
to business adventures. SACCO’s simply
Those going to Kieni, Ol-jabet, Sipili, means more business
I know many may differ with me Kinamba and Rumuruti would find lands more accounts, more
but the truth of the matter is there are
more merits than demerits particularly
and plots half price of that in Nyandarua.
Substantial earnings may be realized by
members and more
when we look at it as business entre- the same people from maize growing opportunities to
preneurs. Delocalization broadens our
cope and removes us from our comfort
wheat and Rhode grass. business adventures.
locality to a more generous world.
Surely there are more fortunes to

the delocalized as opposed to the na-
tives. Those delocalized are exposable
to widened opportunities in terms of
investment just like Abraham in Gen-
esis 12:1-4. He was delocalized by
God at his 75 years and he prospered
drastically.
As a SACCO, our members should

worry the least since the directors
have prudently come up with modern
THE TOWER
MAGAZINE
OCTOBER 2018 25
Mortality Rate and its Effect to
SACCO Movements in Kenya
Compiled by: Peter Kuria. cess by SACCOs marked in the last
their own ignorance could withdraw ten years can be attributed to the
T
all the inherited deposits and shares ren- low mortality rates.
he World Health Organization dering the commitment to the SACCO null
places the death rate in Ken- and two, it becomes a source of dispute. In addition, most SACCOs, mostly
ya at 6.7 deaths per every a Family wrangles from inheritance is not a checkoff, have their members as part
thousand. This number does not ac- new comportment in Kenya when a mem- of the working force in the country.
curately point out the mortality rate in ber failed to leave a proper will or where A high mortality rate would mean low
the country but it gives a rough esti- there is no cooperation and harmony in workforce and low collection of mem-
mation of the same. The impact of this a family. ber deposits monthly. This would mir-
mortality rates to financial institutions ror in the amounts available for ser-
is a noteworthy subject that touches Insurance is another vibrant organ vices offered by the SACCOs.
on various concepts such as savings, of any financial institution. For instance,
insurance and investment. We will look in the case of loans offered t0 members, This said the comparison made in
at the effect of mortality rate in Ken- there is an insurance cover. If a region re- this article is severely dependent on
ya and the effect it has on the SACCO cords a high mortality rate, then the pre- many other factors. Most important
movement in Kenya. miums by the insurance company will be take away would be the paramount
brutally high which means more cost on importance of large membership of
SACCOs are institutions that rely the members and more cost for the SACCO SACCOs.
heavily on numbers. The larger the and the effect is spread out to the whole SACCOs are on the rise and it
member the better a SACCO per- system. would be vital to be aware of all the
forms if factors such as governance, factors that could build or break this
education, training and risks are kept Nevertheless, the country has recorded imminent success.
constant. It is for these reasons that a decline in mortality rate than ever be-
Tower SACCO and many other SACCOs fore. In 1950, the mortality rate was
diversify their products in various ways 20.2% while in 2015 it had dropped
as attempts to attract more members down all the way to 5.8%.
against the already existing competi-
tion from Commercial Banks.
It would be a long shot
to associate this decline
with the rise of SAC-
TOWER
SACCO
As already established, population COs in the county
plays an important role in the day to owing to factors
day activities of any SACCO. A re- with even bigger
search article submitted to the Univer-
sity of Nairobi identified the mortality
impacts such MORTGAGE BODA BODA
as growing
rate of the country from factors that
technologies This is a product developed GROUP LOAN
include; poor technology, low income, or easy to give you and your family
HIV/AIDs and poor health as one of access to
the major problems associated with infor-
shelter and Security. The product
low performance in SACCOs. mation enables you to acquire property,
It would be important to under- but all acquire and develop or develop
stand how SACCOs work in order to these
comprehend some of these tertiary already acquired property. This product
effects of mortality. SACCOs receive
member saving and deposits into an
eases the burden of acquiring your dream
aggregate pool, from which, the insti- home and frees you from tenancy and easily transforms you into a
tution is able to lend out or invest in landlord. All you require is save with us for at least six months.
authorized instruments such as bonds,
shares and treasury bills. Returns, as
in the case of Tower SACCO is usually SPECIAL LOAN
high and incomparable to what banks
offer.
Granted to purchase products e.g. motor bikes, lap tops, water tanks,
Member can identify the products and supplier, the cheque is drawn
If any member of the SACCO dies, in favor of the supplier.
the pool becomes a little smaller and
so does the money to invest or lend Maximum amount is Kshs.150,000.Which is
and so does the dividends to members Repayable within 36 months.
and under the same breath, so does
the growth of the SACCO. And Competitive interest rate
There is the concept where de- Maximum amount is Kshs. 50,000 at a
posits and shares are inherited to the
named next of kin at the moment that Competitive interest rate. Maximum repayment
a member passes on. This comes with period of 12 months.
two challenges; lack of knowledge of
the beneficiaries who in none withstand- A Basket For All Your Financial Needs
ing, a percent-
26 THE TOWER OCTOBER 2018 age of the THE TOWER OCTOBER 2018 4 27
MAGAZINE MAGAZINE
suc-
AFFIRMATIVE ACTION
The Third Gender Representation

In Tower Sacco Management And
Supervisory Boards
I
Compiled by FRANCIS B.H MUGO - MWIHOKO PRIMARY SCHOOL
wish to comment on the whatsoever. I am on the opinion that has changed and the members
third gender representa- the current membership in the two Deposits has gone up to more
tion in all public organi- Boards should be retained in the fu- than seven Billion Kenya shillings
zations as per the Kenya ture as presently constituted in the to date.
Constitution in our belov- By-laws.
ed ‘BABA NA MAMA’ – THIRD BUT NOT LEAST:
TOWER SACCO LTD. What I would venture to suggest The prospective candidate should
is that all the Board posts Aspirants have saved more than Five Hun-
The same has been raised irrespective of their genders should dred Thousand Kenya shillings
in the previous Special Gener- be given a level playing ground to as Deposits in the Back office. I
al Meetings. The movers of the campaign and sell their policies and am on the opinion that the same
Agenda have been arguing that may the best candidates win. Gender should be raised to one million to
the women-TOWER SACCO LTD issues should not be criteria for being deter Jokers who may take a SAC-
shareholders should be given a elected to the two SACCO Boards. CO Loan and boast one’s Deposit
third Gender representation in in order to be cleared to stand as
the two Boards. I am on the opinion that what we a candidate.
as shareholders want from the peo-
With reference to the afore ple in the two SACCO Boards is bet- I am of the opinion that TOW-
mentioned, I would like to com- ter services, good customer relations ER SACCO should be led by savers
ment as here under: - and rising dividends rates at the end who know the pain of saving and
of each year. who can set a good example of
It is my humble submission a saving culture since good lead-
that the third Gender representa- Lastly, I would venture to com- ers are elected to lead and not
tion in the TOWER SACCO by ei- ment on the qualifications for one to be led. It is not prudent for a
ther gender will not benefit the to be cleared to contest for the two saver with Deposits worth Kenya
SACCO in any way whatsoever Boards posts as here under. shillings five hundred thousand to
nor will it add more monetary FIRTS: The candidates for the two lead another one who has saved
value to our shares. We do not Boards posts must have been active over One million Kenyan shillings
stand to benefit more with higher members for three years. I am on the in the Back Office.
returns at the end of the year as opinion that in order to ward off Jok-
a result. ers the same should be raised from We the shareholders have
the current there to ten years. outmost confidence in the two
The addition of more mem- SACCO Boards plus our wonderful
bers to the two boards will make SECONDLY: The pro- and understanding C.E.O and we
the TOWER SACCO to incur more spective candidates should file an believe that they will stir TOWER
unnecessary expenditures in indemnity of one million with the SACCO LTD so that on or before
terms of Allowances and Hono- nominating committee. I am on the year 2030 it will become the lead-
raria and the same will not ben- opinion that the same should be ing Saving and Credit cooperative
efit the shareholders in any way raised to five million since the time in the Republic of Kenya.
THE TOWER
MAGAZINE
OCTOBER 2018 - 27
IFRS
IMPLEMENTATION
OF IFRS 9
Compiled by: Patrick K. Njenga -
Finance Manager
I
FRS 9 is effective for fi-
nancial periods com-
mencing on or after 1st
January 2018 with early i) Amortised cost
adoption permitted. IFRS International affected financial assets.
– a financial asset is
is a short form of International Financial Re-
measured at amortised
Financial Reporting Standard. porting All financial liabilities
Standards,
cost if both of the follow- are measured at amor-
ing conditions are met. tised cost, except for finan-
IFRS 9 specifies how an enti- usually called
ty should classify and measure IFRS, are cial liabilities at fair value
a) The asset is held through profit or loss. Af-
financial assets, financial liabili- standards
within a business mod-
ties and some contracts to buy issued by the ter initial recognition, an
el whose objective is to entity cannot reclassify
or sell non-financial items. IFRS Founda-
hold assets in order to
tion and the any financial liability.
collect contractual cash
IFRS 9 requires an entity to International
flows; and
recognise a financial asset or a Accounting Impairment
financial liability in its statement Standards Impairment of finan-
b) The contractu- cial assets is recognised in
of financial position when it be- Board (IASB)
al terms of the financial
comes party to the contractual to provide a stages:
asset give rise on speci-
provisions of the instrument. common global
fied dates to cash flows
At initial recognition, an entity language - Stage 1 –
that are solely payments As soon as a financial
measures a financial asset or a for business
of principal and interest
financial liability at its fair value affairs so instrument is originated
on the principal amount or purchased, 12 month
plus or minus, in the case of a that company
outstanding.
financial asset or a financial li- accounts are expected credit losses are
ability not at fair value through understandable recognised in profit or loss
ii) Fair value and a loss allowance is es-
profit or loss, transaction costs and
through other compre-
that are directly attributable to comparable tablished.
hensive income- finan-
the acquisition or issue of the across
cial assets are classified
financial asset or the financial international - Stage 2 –
and measured at fair If the credit risk
liability. boundaries.
value through other increases significantly
comprehensive income and is not considered low,
FINANCIAL ASSETS if they are held in a busi- full lifetime expected cred-
ness model whose objec- it losses are recognised in
When an entity first recognis- tive is achieved by both
es a financial asset, it classifies it profit or loss.
collecting contractual
based on the entity’s business cash flows and selling fi-
model for managing the asset - Stage 3 –
nancial assets.
and the assets contractual cash
flow characteristics as follows: If the credit risk of a fi-
iii) Fair value nancial asset increases to
through profit or loss – the point that it is consid-
any financial assets that ered credit- impaired, in-
are not held in any of terest revenue is calculat-
the above models are ed based on the amortised
measured at fair value cost.
through profit or loss. Financial assets in this
stage will be assessed indi-
When, and only vidually. Lifetime expected
when, an entity changes credit losses are recog-
its business model for nised on these financial
managing financial as- assets.
sets it must reclassify all
29
28 THE TOWER
MAGAZINE
OCTOBER 2018 4
FINANCIAL REPORT
REGULATION IN
SACCO MOVEMENT ’
Compiled by: JAMES KIIRU
depositors of a collapsed Sac-
co. These and many others have
been met by Tower Sacco to the
extent of classifying to 1st tier.
R
Other Act may be found in
egulate is to control by means responsibilities and objec-tives county government e.g.
of rules and restrictions. The namely: Nyandarua County Co-opera-
activities of credit compa- Operational independence tive Societies Act 2017 however
nies are regulated by law. The other Complete and unfettered access to the county Act does not affect the
meaning is to adjust an apparatus or all aspects of the business of Sac- DTB as they (DTB) are governed
a mechanism so that it functions as cos and the ability to enforce ac- and regulated by SASRA. How-
desired. cess where this is de-nied. ever, and of most importantly no
Deposit Taking Business can strive
In Saccos, regulation has the Transparent process without the good-will of the coun-
statutes i.e Build and strengthen its reg- ty government.
1.The Co-operative Act 1997 which ulatory and supervisory capacity
was amended in 2004 also referred to through a qualified and independ- Sacco is very fast-growing
as the co-operative societies Act. ent staff. business and therefore more and
Sound governance more regula-tions are being draft-
The Sacco Societies Act 2008. Significant resources. ed for example under the National
Under the above the Regula- Assembly Bills 2018 there is the
3.The recent enacted. The Sacco tory Authority has the process to Sacco Society (Amendment)Bill
(Deposit -Taking Business) Regula- issue appro-priate legal orders, 2018 which has a lot of inser-tion
tions 2010 referred to as Sacco Soci- revoke license, impose restrictions to the “Principal Act”. Key note is
eties Act regulation. Not to mention on activities and op-erations of our the adaption of “DT Sacco” De-
the Sacco So-cieties (Amendment) Bill Sacco, administer directives. Evi- posit Taking Sacco” as Tom, Dick
2018. dences of the above can be seen and Harry have adapted the word
whereby several Saccos have been SACCO to the extent of abusing it.
The main reason for the above is deregistered. E.g. T.K. Sacco (Tumbo Kumbwa
for the protection of deposits and sav- Sacco). If it becomes a law Tower
ings of members-Prudential regulation SASRA also encourages Sacco SACCO will be Tower D.T.SACCO.
more emphasise will be on the current or DTB on key components of pru-
SSAR or the Sacco (DTB)2010 which dential Regulation namely: As the challenges spring up,
created a regulatory body known as - Capital adequacy more and more regulation would
SASRA – Sacco Societies Regulatory - Risk management be drawn natural, governmental
Authority which entity is to enable and Credit risk- Emphasis would be and the members driven.
undertake effective regulation and su- on Deposit guarantee fund which
pervision of Saccos by giving it clear guaran-tees reimbursement to
THE TOWER
MAGAZINE
OCTOBER 2018 29
AGRIBUSINESS
Tower Sacco
offers Agribusiness
a Lifeline
Compiled by: TEDDY TOBIAS EKISA-
AGRONOMIST
T
ower sacco being a financial
institution, has the opportunity
of improving the living stand-
ards of the population within its area
of jurisdiction and beyond. This is by
investing on agribusiness products
which entail both crop and livestock
production. Some of the products of- Potato root tubers indicating mavuno impact
fered to farmers include farm inputs
like: -  Another unique feature of
mavuno is it’s incorporation of mac- the farmer can see the impact of the input.
Mavuno fertilizer. ro, secondary and micronutrients.
This a farm input that’s very vital  Macro includes; NPK i.e Ni- New products
for agronomy because it ensures a trogen, phosphorous and potassium These includes;
bumper harvest for the farmers. This  Secondary nutrients; calci- Mkulima maziwa loan;
is one of the products tower Sacco um, magnesium and Sulphur. This is for dairy production improvement,
adapted as an initiative on agri-busi-  Micronutrients include; purchase of dairy cows, dairy production
ness. The fertilizer is sold to farmers zinc, boron, molybdenum, copper, management other dairy business needs i.e.
who are both members and non-mem- manganese, chlorine etc feeds structures.
bers. It can either be through cash A case study is being conduct- Loan term: has 2 options; maximum of
payments or a loan advancement. ed with green silver cooperative on 12 months or maximum of 36momnths
mavuno and also on Agri lending.
Mavuno impact Mavuno crop development; Mfugaji daima loan;
Mavuno is a high nutrient fertilizer. It increases crop vigor and tuber Targets farmers who invest in livestock,
It has the following benefits: expansion. beef cows, goats, sheep, poultry, bee keep-
 Neutralizes soil acidity being to include production management,
cause it has high soil postive exchange Soil analysis feeds, structures.
capacity which improves soil bonding. For the farmers to have a bump- It has loan term of 24 months maximum.
 It has a double feeding ca- er harvest, its crucial for them to
pacity where both the plant and the understand the status of their soils. Mkulima bora loan:
soil benefit This is service soon to be offered by To facilitate agribusiness including, seeds
tower Sacco to assist the farmers to fertilizer, farm preparation, management and
achieve a bumper harvest. harvesting.
Farmer and farmer group train- It has a loan term of 12 months maxi-
ings. mum repayment period or the crop harvest
These are services offered to cycle whicheverS is earlier.
Tower Sacco members and those Farm implements loan.
who intend to join. They include in- • Help farmers to increase their pro-
dividual farmer visits/ groups. It also duction capacity by acquiring Agribusiness
involves farmer mobilization for spe- Inputs, Tools and Equipment
cialized trainings.
Market and market linkages.

Being agribusiness-product of-
fering institution, we link our farm-
ers to markets along their value
chains. This enables them sell their
produce at favorable prices, hence
prompt repayment of the loans. The
farmers are also linked to certified
input suppliers i.e. seeds, chemicals,
etc.
Demo plots establishments

Mavuuno fertilizer as one the
Training of farmers on mavuno and input Tower Sacco is promoting; Potaotoes grown applying
demoplot establishment demo plots are established so that mavuno fertilizer
MAGAZINE
TRADE FINANCING
TRADE FINANCING AND

QUALIFYING CRITERIA
Compiled by: DANIEL WANYOIKE
’ It is designed for businesses
that do not have enough capi-
tal or cash.
Qualifying criteria:
T
Valid LPO from the County/
his is the financing and Used by wholesalers and National government or
facilitation of Trade.: The distributors to get goods on parastatals.
Sacco facilitates trade credit from manufacturers. Pro forma invoice or
through issuing of Sacco quotation of items of
undertakings iv. Advance Payment purchase from the supplier
Trade Facilitation Products: Guarantees: Valid business registration
We offer the following types of Used by contractors to ac- and permit documents.
Trade facilitation products at Tow- cess advance cash from procur- Valuation report where
er Sacco. ing entity to enable them start applicable.
working. Copy of the proposed
1. Bank Guarantees: collateral
This is the undertaking by Tow- 2. LPO FINANCING:
er Sacco to pay the beneficiary This is allowing businesses that Benefits of LPO financing:
where the applicant has defaulted have obtained purchase or- Quick processing time: With
on their obligations. The following ders/letter of awards to deliver in 24 hrs.
are the types of Guarantees avail- goods and services or carry out  Flexible security/Collateral.
able at Tower Sacco: contractual works.  Competitive interest rates.
i. Tender/Bid Bond:
 Normally required when tender-
ing
Issued on an official letter head.
 We can give unsecured loan of
up to ksh 3 Million.
ii. Performance Bond:

Used when a customer is award-
ed a contract and gives the bene-
ficiary confidence that the suppli-
er will meet their obligations.
iii. Credit Guarantees:

Used by applicants to get goods
on credit
THE TOWER
MAGAZINE
OCTOBER 2018 32 31
SACCO FINANCING
SACCO opened to the general public.
The opening of the common
bond had a great advantage
TRANSFORMATION to the SACCO. The SACCO has

grown in all spheres ranging
from membership to branch
network.
COMPILED BY PATRICK K. NJENGA
After opening the common
bond, the society rebranded
and changed its name from
Nyandarua Teachers SACCO
to Tower SACCO. This has led
to significant growth in mem-
bership and branch network.
The SACCO has set up a mar-

keting and education depart-
ment to ensure that all the
members of the Society are
well informed about products
and services. The SACCO has
also transformed its customer
service experience by setting
I
n an organisational context, ing banking services in the com-
up a website where the public
transformation means a pro- mercial banks.
can source information about
cess of profound and radical The banks account operating min-
the SACCO. The SACCO has
change that orients an organiza- imum balance and the transaction
adopted social media plat-
tion in a new direction and takes charges were set too high that the
forms where members con-
it to an entirely different level common person could not bear.
cerns are also addressed on a
of effectiveness. Unlike ‘turna- This fact led to the introduction of
real time basis.
round’, (which implies incremen- FOSA’s by most of the Co-opera-
tal progress on the same plane), tives. Tower SACCO was not left
In the year 2006, the SACCO
transformation implies a basic behind since it opened its FOSA
opened its first branch in En-
change of character and little or section in the year 1999 when the
gineer town with an objective
no resemblance with the past members started enjoying services
of taking services closer to
structure. of salary processing, issuance of
the members. Presently the
banker’s cheques, access to salary
SACCO has got ten branches
Since inception, in an effort to re- advances, funds transfers, cheque
and nine satellites located in
alise its vision, Tower Sacco has clearing, among others.
various parts of the country.
undergone tremendous trans- During the SACCO’s formation
Before the SACCO opened
formation. The economic envi- stage, the Sacco members had a
the front office services, all
ronment, technological change, common bond. The people who
records were maintained on
legal framework and diversified would join the SACCO, referred
manual system members
members’ needs have been great to as the Co-operative Society by
statements were maintained
catalysts in the Sacco’s transfor- then were only teachers. The SAC-
on manual records whereby a
mation process. CO retained the common bond
until the year 2009 when it was
>>Turn to Next Page>>>
During the last two decades,
there has been a remarkable rev-
olution in the co-operative sector.
Since the year 1999 most of the
SACCOs have established front
office Sacco activities common-
ly referred to as FOSA to accord
their members banking services
at affordable rates. The idea of
establishing FOSA was conceived
due to difficulties that the co-op-
erative members faced in access-
32 THE TOWER SEPTEMBER 2018 4

MAGAZINE
<<< From Previous Page
lot of time was spent to update re-

cords. In the year 1999, the SACCO
computerised its system which great-
ly enhanced efficiency in member’s
service delivery.
The SACCO has since then upgraded

the management information system
and embraced emerging techno-
logical advancement. Presently, the
SACCO has fully computerised all its
systems. The SACCO started offering
ATM services to the members in the itially, the Sacco was governed by
year 2007. munication has enabled the
the Co-operative societies Act Cap society to reach Kenyans in the
490. The act was amended on var- diaspora.
This was a great stride in ensuring ious occasions due to emerging is-
that the members accessed their sues in the co-operative sector. In
money through VISA branded ATM In conclusion, the Sacco in pur-
2008, a SACCO bill was introduced suit of its vision has embarked
machines at their convenience. in Parliament which bore the Sacco
There after the SACCO launched Mo- on a transformation process
Societies Act No. 14 of 2008 which that will really change the pro-
bile banking services to the mem- governs deposit taking SACCOs.
bers. The members started accessing cesses in the organisation for
The Act introduced a SACCO’s reg- better and effective service de-
their money through a mobile phone ulating organ, the Sacco Societies
platform in addition to the ATMs. livery to the members.
Regulatory Authority.
In an effort of taking services closer Quote:
The Authority supervises all SAC-
to the members, the SACCO has set CO operations, a fact that has
up satellite branches in various loca- a) Nothing gets transformed
strengthened the SACCO sector. in your life until your mind is
tions. In the Satellites, the members The general public has built con-
can make cash transactions like cash transformed.
fidence in Sacco operations due to
deposits, cash withdrawals, cheque the government supervision.
deposits alongside other services. b) Transformation is an on-go-
ing process that tends to ap-
The SACCO transformation has led pear ordinary, when in fact,
Legislation of the co-operative sector to people in the Diaspora to learn
is changing as the sector grows. In- something extraordinary is tak-
about the society. Improved coming place.
TOWER SACCO LIMITED

Our Products
Loan Products: Savings Products
. Mortgage . Current/Business Account . Save as you Borrow:
. Normal loans . School Fees Account
. Boda Boda Group Loan . Stop Gap Account
. Emergency loans . Ordinary Savings . Fixed Deposit Account
. Fosa loan
. School Fees loan Account: . Premium Scheme Account
. Fosa Flex Loan
Head Office CONTACTS
Reach Us
OL’KALOU FOSA Building,
OL’Kalou/Nyahururu Road: info@towersacco.co.ke
P.O Box 259-20303,OL’KALOU; CELL: 0723-836421;0733-416492,
Hotline: 0731638930 careers@towersacco.co.ke
TEL: 051-8000822, Fax 020-2071205
THE TOWER
MAGAZINE
OCTOBER 2018 33
for
for aa STEP GAPACCOUNT
STOP GAP ACCOUNT With
With Tower
Tower Sacco
Sacco
This is an account designed for members to save for their retirement. A member opens this ac
count free of charge and saves as little as they can afford.
The account attracts interest at the rate of 12% for amounts above
Ksh20,000 which, is ploughed back to the account.
TEL: 051-8000822,
Fax 020-2071205
CELL: 0723-836421;0733-416492
Hotline: 0731638930
SUDOKU PUZZLE Jokes
1. Life is about making an impact, not making an

income. --Kevin Kruse
2. Whatever the mind of man can conceive and

believe, it can achieve. –Napoleon Hill
3. Strive not to be a success, but rather to be of

value. –Albert Einstein
4. Two roads diverged in a wood, and I—I took

the one less traveled by, And that has made all
the difference. –Robert Frost
5. I attribute my success to this: I never gave or

took any excuse. –Florence Nightingale
6. The mind is everything. What you think you be

come
Fill in the puzzle so that every row across, every column

down and every 3 by 3 box contains the numbers 1 to 9. EDITION 2 THE OCTOBER EDITION 2018
THEME:
SACCO GROWTH AND
SUSTAINABILITY
Brain Teasers The Pride of Tower
1. I am heavy and hard to pick, but backwards I am not

What am I?
2. If you have me you want to share me. If you share me

you dont have me. What am I?
3. If Am holding a bee what do I have in My Eye?

TOWER SACCO LIMITED
4. What is the ancient invention that allows people to A Basket For All Your Financial Needs
see through walls?’ -

Answers
5. Whoever Makes it tells it not. Whoever takes it knows
it not.whoever knows it wants it not. What is it?
6. ‘What can you hold in your right hand, but not in your
left?’,
7. Which room is the safest out of one full of raging fires,

another with assassins with loaded guns and another
with lions who haven’t eaten in years?’,
8. 16, 06, 68, 88, ?, 98, What is the ‘?’ ?
Answers
8. ALL OF THE NUMBERS COUNT DOWN FROM 91 WHEN TURNED UPSIDE 7.
THE THIRD ONE, AS THE LIONS DIED OF STARVATION. 6. YOUR LEFT HAND
5. COUNTERFEIT MONEY. 4. WINDOW 3. BEUTY 2. SECRET 1. ATOM
THE TOWER OCTOBER 2018 4 35
MAGAZINE
A Basket For
All Your Nee
TOWER SACCO
ds
JUNIOR
ACCOUNT
Securing
our Giving Children
Childrens’
Future
A Firm
Foundation
For Children Under the Age of 18
Requirements for opening the account:

Parent’s I.D. Card. Child’s birth certificate (Optional)
Fill in application form (Parent) No account opening fee.
ACCOUNT DETAILS ACCOUNT FEATURES
Free Cheque for School fee Free Birthday cards.
A free Birthday Card for the Child Free entertainment and banking day for the kids.
Free home banking piggy Parent must open a different account for each child
Banking day for children every two years. Competitive interest rates earned.
Withdrawals are 3 times a year Minimum interest earning balance is Kshs.2,000.
Earns interest at a competitive rate Free home banking.
Account can only be withdrawn 3 times a year.
TALK TO US TODAY >>> CELL: 0723-836421;0733-416492 Hotline: 0731638930

Tower Sacco October Issue Final Sunday HP

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MAGAZINE

EDITION 2 THE OCTOBER EDITION 2018

TOWER SACCO LIMITED

John Peter Mwangi Gitundu - Chairman

John Peter Mwangi Gitundu -

SUPERVISORY COMMITTEE MEMBERS

Josephine Wanjiru Muriithi - Peter Njenga Kuria Lukas Kinyanjui Wamwara

P.O. BOX 259-20303; OL'KALOU: TEL: 051-8000822: TELE-: 0733-416492: 0723-836421

EDITORIAL BOARD Editorial 3

CHIEF EDITOR prorata basis 7

The cooperative principle of education,

Welcome to another edition of

In this October 2018 Edition, we begin

The board’s main endeavour is to contin- Universal health coverage.

Food security and nutrition.

THE TOWER OCTOBER 2018 6

DIVIDENDS /INTEREST/ REBATES PAID

AUG 2,300 4 0.1205 92.38 4.62 87.76

Once again, let us hopefully join hands to continue

His Mercy, Guidance and Blessings will always be the Tool

LATE GEORGE NDATHO MUCHIRI,

LATE NDATHO MUCHIRI

THE TOWER OCTOBER 2018 10

WHY CHOOSE US? VISION:

FINANCIAL PARTNER MISSION:

FINANCIAL SOLUTIONS REFINED PRODUCTS ACCOUNTS

We are friendly and ensure AgriBusiness Financing

Tower Sacco Marketing committe in a group photo

Tower Sacco Board of directors

Pride of Tower Sacco

12 THE TOWER OCTOBER 12

CEO’s Personal Assistant

Tower Sacco Agronomist

Tower Sacco Marketing Van

Tower Sacco Headquarters Ol’kalou

STOP GAP ACCOUNT

15 THE TOWER OCTOBER

>>Turn to Next Page>>>

18 THE TOWER OCTOBER 2018 4

20 THE TOWER OCTOBER 2018 4

22 THE TOWER OCTOBER 2018

REAL LIFE EXPERIENCE

Surely there are more fortunes to

As a SACCO, our members should

The Third Gender Representation

Market and market linkages.

Demo plots establishments

TRADE FINANCING AND

ii. Performance Bond:

iii. Credit Guarantees:

TRANSFORMATION to the SACCO. The SACCO has

The SACCO has set up a mar-

32 THE TOWER SEPTEMBER 2018 4

lot of time was spent to update re-

The SACCO has since then upgraded

TOWER SACCO LIMITED

1. Life is about making an impact, not making an

2. Whatever the mind of man can conceive and

3. Strive not to be a success, but rather to be of

4. Two roads diverged in a wood, and I—I took

5. I attribute my success to this: I never gave or

6. The mind is everything. What you think you be

Fill in the puzzle so that every row across, every column