Cooperatives in Kenya
With Over 43.91% of the adult population in Kenya belonging to a cooperative, cooperatives are a powerful tool for economic transformation of the entire population. Despite 50% of these cooperatives operating at less than 50% of their potential, cooperatives still control over 43% of the Country's GDP with deposit in excess of KES 732 Billion, loan portfolio of over KES 700 Billion and asset base of over KES 1 Trillion
What is needed
There is an overarching need for Training on how a cooperative operate and financial literacy to cooperative members. This will ensure that the members understand and practise the 3 main cooperative Principles of 'Save Regularly', 'Borrow Wisely', 'Repay Promptly'. With an enlightened membership the next phase of intervention involves putting in place best business practise to govern operations of cooperatives. This is then enacted and enforced in daily operations through robust Technology Solutions
Key Challenges
Most Cooperatives in Kenya lack professionalism in their operation and are characterized by manual business processes that are inefficient and subject to human interference. This has led to mismanagement and financial loss leading to loss of trust and minimal savings by existing members. Most cooperatives are also lagging behind in the adoption of Technology leaving them with low update of their products and services
What we are Doing
Through Partnership with Development Partners, County Governments, National Governments, Apex Regulatory Bodies or Banks; we conduct intensive capacity building to beneficiary cooperatives. The measures implemented includes Training, business process reengeneering and streamlining. This is followed by implementation of robust technology solutions to ensure the Cooperatives automate most of the business process for efficiency and optimal return and extensive support
How it Works
Partner
We partner with Development Partners, Banks, County or National Governments, Apex bodies like regulatory authorities with interests in Transforming the Cooperative movement in a given geographic location. The Partnership can be done to cooperatives in a given economic sub sector or to all sub sectors for the Geographic area covered.
Train
To enforce best business practise in the operations of cooperatives, we start empowering the beneficiary cooperatives with a training on the cooperative movement. The set of training will be done for Cooperative members, staff and officials. This is followed through with a financial literacy training. Our trainings are delivered by our inhouse team as well as our partners.
Automate
After training, we empower the cooperatives with a fully fledged Cooperative Core Banking System that automates over 80% of the business Processes of a cooperative. This ensures streamlining of business processes to best practise as well as optimal efficiency. Our team of experts also guides the cooperatives in curation of Loan and Saving products for optimal uptake.
Some of Our Partnership
The following are some of our existing Ushirika Partnerships
Uasin Gishu County
We are partnering with Uasin Gishu County to digitize and automate the Cooperatives that are accessing the County Enterprise Fund. The project entailed onboarding cooperatives on a Centralized Multi Tenancy Core Banking system. We are also involved in Training and capacity building for the beneficiary Cooperatives. Our Team of Experts also gets involved in Product Curation and appraisals for Continued relevance and consumption by the cooperative members. Subsequent phases will involve the onboarding of additional Cooperatives
Kisii County
Our partnership with Kisii County is to benefit all Cooperatives registered with the County Cooperative Department. We are involved in Cooperative business process streamlining, Member/Staff/Official Training, Provisioning of a Centralized Multi Tenancy Core Banking system. The Partnership started with implementation for a 'Boda Boda' (Transport Rider) Union of Cooperatives where each member cooperative was onboarded and aggregation at the union level. Other Cooperative including farmer, traders, worker cooperatives will be onboarded in subsequent phases
Uasin Gishu County CEDF
The County Cooperative Department provides a Fund (County Enterprise Development Fund - CEDF) for Cooperatives to get working capital Loan. We were involved in digitizing and automating the entire fund to cover the life cycle of any loan advanced to a cooperative from application to clearance. Our Solution also provide a Management System for registration, details management and appraisal of all beneficiary cooperatives. With over 100 Cooperatives accessing the fund, Our Solution offering provides a Rich set of Reporting on the status of the Fund both to the CEDF Staff and the Beneficiary Cooperative
Our Impact
Increased Savings Mobilization
Our Solution ensures that the trained member have access to cooperative service at any time from anywhere and as such can deposit savings promptly using ubiquitous channels. Coupled with Social Capital Measures that we put in place, each cooperative we've partnered with has experienced growth of upto 4 times in the first Year of Partnership. Our involvement in the Saving Product Curation has also led to an increased uptake of saving products for members including health insurance and social fund contribution
Loan Book Growth
With a trained membership and increased savings, cooperatives are able to advance more loans to members. The Financial Partners in Ushirika partnerships have also greatly increased the working capital available for lending to members through grants and working capital Loans. We enforce in the system a Robust lending policy and security measure during Loan product curation. This ensures that the default rate is kept low. The measures have led to a 50% decrease in overall loan default in some cooperatives
Transformed Lives
With Regular Saving, wise borrowing and prompt Loan Repayment, cooperatives are able to experience better financial performance and growth. Being a member owned enterprise, earnings realized benefits the same members and their families. The Financial discipline imparted during the training coupled with robust and ubiquitous saving solutions availed allows members access to better loan facilities for economic advancements and improved livelihoods
Impact Stories
“With a daily saving of KES 50 am on my way to buying a cow worth KES 20,000. My other daily saving of KES 20 also ensures my family is covered with a health insurance”
Cooperative Member
“The daily KES 200 saving has transformed my life from a job seeker to a Boda Boda Transport Business man earning KES 1,500 a day and also an employer of 2 more people”
Cooperative Member
“Using the Aggregated Solution, am able to get real-time report on all the cooperatives we are funding at any time in a centralized platform. This has made my oversight role effective and timely ”
Director, UG CEDF
Partner with Us
Address
Pesatech Centre, No 10 Off Korongo Road, along Ndege Road - Karen, Nairobi
P.O. BOX 17856 - 00100, Nairobi Kenya
Phone
Email Address
Office Hours
8.00 AM - 5.00 PM on Monday to Friday