1 Strategic Plan

KANISA SAVINGS AND
CREDIT CO-OPERATIVE
SOCIETY LIMITED
Strategic Plan
2015 to 2019
Building Our Economic Base Through

Saving and Borrowing
Kanisa SACCO
Strategic Plan for
2015 to 2019
Kanisa SACCO Strategic Plan for 2015 to 2019 3
Foreword
The Kanisa SACCO Limited strategic plan for 2015 to 2019 is the second formal framework
to be developed since the SACCO’s establishment in 1981. The plan is well-timed as it
endeavours to provide guidance to the leadership and management and staff in offering
efficient services to members within the continuously changing and competitive economic
environment.
The economic landscape, in general, and the cooperatives sector, in particular, is likely
to continue experiencing significant changes over the lifespan of this plan. Members’
expectations as well as the market in which Kanisa operates will undoubtedly shift against
the expected changes. There is no doubt, whatsoever, that responding to and meeting the
expectations of members, in this milieu, while ensuring that Kanisa SACCO remains
competitive, requires development of well-defined time-bound strategic actions against the
backdrop of a critically analysed environment. This also requires a clear and widely shared
vision and mission which is soundly owned by members and all stakeholders.
In order to ensure that the above scenario is captured, the management adopted a
consultative process in developing the plan. Several working sessions that also realized
direct and indirect participation of members as well as other stakeholders were convened.
A questionnaire, that sought to collate members’ feelings and expectations, was developed,
disseminated and feedback analysed, the outcome of which were used in the realization
of this plan. Situational analysis was done and strategic agenda developed taking into
cognizance the challenges, risks and opportunities that exist. This plan, therefore, defines
how Kanisa SACCO will be successful within a challenging cooperatives sector and the
ever-changing social-economic environments.
The plan has been developed with a focus to harmonize synergies; enrich experiences;
and challenge all (the society membership, leadership and all stakeholders) into action. In
order to do this, the plan outlines the need of integrating research and continuous learning
into day to day improvement of internal business processes as well as investments and
improvement of the capital base.
The SACCO has great aspirations to be the leading one-stop financial institution providing
diverse products and services for members’ economic empowerment. This can be
confirmed by the numerous products and services already in use and the endeavours, by the
management, to develop (new) and review the existing products and services. This is done
to respond to members’ expectations.
While the ultimate implementation of the plan rests on the shoulders of the management, it
is our expectation that all stakeholders including the society’s membership, will participate
in the process. We look forward to fulfilling this plan together.
Bernard Okok Obuoga
Chairperson, Kanisa SACCO Society Limited.
4 Kanisa SACCO Strategic Plan for 2015 to 2019
Acknowledgement
The development of the Kanisa SACCO strategic plan for 2015 to 2019 has been possible
through the active participation of all stakeholders including: members, staff, the Central
Management Committee (CMC), Supervisory Committee (SC), Cooperative Development
Department of Nairobi City County and collaborating and strategic partners.
The valuable contribution and insights of all stakeholders during the strategic planning process
is greatly appreciated.
Abbreviations
AACC All Africa Conference of Churches
AGM Annual General Meeting
BOSA Back Office Savings Activities
CAK Cooperative Alliance of Kenya
CMC Central Management Committee
CRB Credit Reference Bureau
CSR Corporate Social Responsibility
IEC Information, Education and Communication
ICT Information Communication and Technology
KES Kenya Shillings
KHL Kanisa Holdings Limited
KUSCCO Kenya Union of Savings and Credit Cooperative Societies
LPO Local Purchase Order
MFIs Microfinance Institutions
MOU Memorandum of Understanding
NGOs Non-Governmental Organizations
PESTEL Political, Economic, Social, Technological, Environmental
and Legal
SACCO Savings and Credit Cooperative Society
SASRA SACCO Societies Regulatory Authority
SC Supervisory Committee
SMEs Small and Medium Enterprises
SMS Short Messaging Services
SWOT Strengths, Weaknesses, Opportunities and Threats
Contents
Foreword...................................................................................................................... 2
Acknowledgement....................................................................................................... 3
Abbreviations............................................................................................................... 4
1 Introduction .............................................................................................................. 7
1.1 Organizational Background................................................................................... 7
1.2 Products and Services............................................................................................ 7
1.2.1 Products.............................................................................................................. 7
1.2.2 Services............................................................................................................... 9
1.3 Rationale for the Strategic Plan............................................................................. 9
1.4 Methodology of Developing the Strategic Plan..................................................... 10
1.5 Organization of the Strategic Plan......................................................................... 10
2 Institutional Review.................................................................................................. 11
2.1 Identity Statement.................................................................................................. 11
2.2 Vision..................................................................................................................... 12
2.3 Mission................................................................................................................... 12
2.4 Core Values............................................................................................................ 12
2.5 Motto...................................................................................................................... 12
Building our economic base through saving and borrowing....................................... 12
3 Situational Analysis.................................................................................................. 13
3.1 Evaluation of Past Performance............................................................................. 13
3.1.1 Members’ Deposits............................................................................................. 13
3.1.2 Loans Portfolio................................................................................................... 14
3.1.3 Interest on Members’ Deposits........................................................................... 15
3.1.4 Membership........................................................................................................ 16
3.1.5 Income and Expenditure Analysis...................................................................... 16
3.1.6 Key Performance Benchmarks........................................................................... 18
3.2 External Environment ........................................................................................... 19
3.2.1 Political Environment......................................................................................... 19
3.2.2 Economic Environment...................................................................................... 20

3.2.3 Social Environment ............................................................................................ 21
3.2.4 Technological Environment................................................................................ 23
3.2.5 Environmental Factors........................................................................................ 23
3.2.6 Policy/Legal Environment.................................................................................. 23
3.3 Internal Environment............................................................................................. 24
3.4 Stakeholder Analysis............................................................................................. 27
4 Strategic Analysis..................................................................................................... 29
4.1 Strategic Issues, Objectives and Strategies............................................................ 29
4.1.1 Strategic Issue 1: Marketing of the Society........................................................ 30
4.1.2 Strategic Issue 2: Investments............................................................................. 30
4.1.3 Strategic Issue 3: Research and Development.................................................... 30
4.1.4 Strategic Issue 4: Internal Business Processes.................................................... 31
4.1.5 Strategic Issue 5: Strong Capital Base................................................................ 31
4.1.6 Strategic Issue 6: Credit Management................................................................ 31
5 Implementation Plan................................................................................................. 32
5.1 Implementation Matrices....................................................................................... 33
5.1.1 Marketing of the Society..................................................................................... 33
5.1.2 Investments......................................................................................................... 35
5.1.3 Research and Development................................................................................ 36
5.1.4 Internal Business Processes................................................................................ 38
5.1.5 Strong Capital Base............................................................................................ 40
5.1.6 Credit Management............................................................................................. 42
6 Institutional Structure............................................................................................... 43
6.1 Organizational Structure ....................................................................................... 43
6.2 Annual General Meeting (AGM)........................................................................... 44
6.3 Central Management Committee (CMC).............................................................. 44
6.4 Supervisory Committee (SC)................................................................................. 44
6.5 Secretariat ............................................................................................................. 44
7 Monitoring and Evaluation....................................................................................... 46
1 Introduction
This section presents the background of Kanisa SACCO, the rationale for the strategic
plan, the methodology of developing the strategic plan and its organization.
1.1 Organizational Background
Kanisa SACCO was established in 1981 by the staff of the All Africa Conference of
Churches (AACC) to promote the welfare of members by enabling them to mobilize
savings and facilitate lending. The SACCO has since opened the common bond
and has membership from other organizations, corporate institutions and individual
contributors.
At the time of establishment, Kanisa SACCO had a membership of 18 and a financial
base of Kenya Shillings (KES) 200,000. This has since grown to over 1,222 and a
financial base of over Kenya Shillings 165 Million as at the end of 2014. It has also
diversified its products and services to members. The number of products and services
has increased from 3 in 1981 to over 11 loan and loan-related products and over 5
services as at the time of development of this plan.
1.2 Products and Services
The current products and services comprise of Back Office Savings Activities
(BOSA) as outlined below:
1.2.1 Products
The following is the products portfolio of the society:
• Principal/development loan;
• Emergency loan;
• Mjengo loan;
• Motor vehicle loan;
• Instant loan;
• Elimu (Scholar’s) loan;
• Sukuma Mwezi loan; and
• Interest on Deposits loan.
The loan-related products are:

• Refinancing;
• Factoring; and
• Consolidation
Table 1: presents the society’s products and some of their key features.
Table 1: Kanisa SACCO Products
Maximum
Loan Amount
Repayment
Product (KES) Interest (%) Loan Related Products
Period
Per Per Period
Refinancing Factoring Consolidation
Month Annum (Month)
Principal/
Development 1 to 3,000,000 Yes
1 12 48 Yes Yes
Loan
Emergency Loan 400,000 1 12 12 No No Yes
Mjengo Loan 4,000,000 1.125 13.5 72 Yes Yes No
Motor Vehicle
1,000,000 1.167 14 36 No No Yes
Loan
Instant Loan 100,000 3 6 No No No
As per the
Elimu
provided fee 0.83 10 24 Yes Yes Yes
(Scholar’s) Loan
structure
Sukuma Mwezi
10,000 10 1 No No No
Loan
50% of
projected
Interest on
undeclared 5* No No No
Deposits Loan
interest for the
year
* One off interest of 5%. Loan available in the month of February.
Source: Kanisa SACCO Documents.

1.2.2 Services
The following is the current services portfolio of the society:

• Jiokoe savings scheme; and
• Mwanangu (Children’s) savings scheme
The following services are offered through strategic partnerships with other corporate
bodies:
• Personal motor vehicle insurance;
• Water tanks;
• Solar lighting;
• Pure it water purifier; and
• Telecommunication devices
More details on the products and services are available in the society’s brochure and
website. In the implementation of this plan, efforts will be made to constantly diversify
the products and services on offer and to improve existing ones in order to ensure
the society remains competitive and provides members with adequate opportunities of
improving their welfare.
1.3 Rationale for the Strategic Plan
The strategic plan for 2015 to 2019 intends to enable Kanisa SACCO deal with emerging
challenges in the business environment for the next 5 years and to also re-examine
its mandate and core functions. It assists in anticipating changes in the operating
environment and determining how to best position the society for continued growth and
profitability. The major achievements and performance of the SACCO since inception
are highlighted and a road map for future growth is charted.
The strategic plan takes into consideration the external environment in which the
SACCO operates and identifies appropriate strategies of utilizing its resources to
achieve its objectives. Current and future challenges are identified and addressed
including the increased competition in the cooperatives and financial services sectors.
1.4 Methodology of Developing the Strategic Plan
This strategic plan was developed in a participatory process that involved: members,
staff, the Central Management Committee, Supervisory Committee, Cooperative
Development Department of Nairobi City County and collaborating and strategic
partners.
A survey tool was developed and shared with all members to elicit their input into
the planning process. Members’ responses were analysed and this informed the
deliberations in the strategic thinking workshop. A one day strategic thinking workshop
which kick-started the planning process was held and brought together all the named
stakeholders.
The staff, the Central Management Committee, and the Supervisory Committee held
further brainstorming sessions to develop the strategic plan. It is anticipated that the
participatory strategic planning process will foster ownership of the strategic plan
among all stakeholders.
1.5 Organization of the Strategic Plan
This strategic plan consists of seven chapters.
provides the introduction and covers the background of Kanisa SACCO, the rationale for
Chapter one
the strategic plan and the methodology of developing the strategic plan.
Chapter two presents mandate, vision, mission, core values and motto of the society.
provides an evaluation of the past performance of Kanisa SACCO, an analysis of the
Chapter three
internal and external environment and a stakeholder analysis.
presents the strategic issues, objectives and strategies the society will focus on during the
Chapter four
strategic plan period.
provides the implementation plan and matrices that cover for each of the strategic
Chapter five objectives the strategies, activities, timeframe, performance indicators and the responsible
actors in the implementation process.
Chapter six provides the institutional structure within which the strategic plan will be implemented.
outlines the mechanisms for monitoring and evaluation of the implementation process of
Chapter seven
the strategic plan.
2 Institutional Review
This section presents the mandate, vision, mission, and core values of Kanisa SACCO.
2.1 Identity Statement
Kanisa SACCO was established in 1981 by the staff of the All Africa Conference of
Churches (AACC) to provide an opportunity for members to accumulate their savings
and in turn create a source of funds for providing affordable credit. The SACCO
has grown and currently has membership from many international and local non-
governmental organizations, private sector companies and individual contributors. The
membership has grown from 18 in 1981 to over 1,222 as at the end of 2014.
Kanisa SACCO is registered under the Cooperative Societies Act, 2004. The SACCO
derives its mandate from its By-Laws, the Cooperative Societies Act, 2004 and the
Rules. The objectives for which the society is established are:
• To promote thrift among members by affording them an opportunity for
accumulating their savings and deposits and to create thereby a source of funds
from which loans can be made to them exclusively for providence and productive
purposes at fair and reasonable rates of interest;
• To provide an opportunity for each of its members to improve his/her respective
economic and social status;
• Carry out investment activities, under the authority of General Meetings, which
should increase the volume of output of the society; improve and sustain a healthy
liquidity position; increase the level of surplus to the society; and benefit members
and their families;
• Offer members complementary savings and credit services and other financial
products and services or withdrawable savings/deposits accounts as may be
required by members from time to time;
• Ensure safety and security of members’ funds through risk management programme
or any other appropriate insurance scheme;
• Ensure progress of its members by educating them on proper methods of credit
administration;
• Perform all those functions and exercise those powers designated for savings and
credit cooperative societies under the relevant laws for the benefit of members; and
• Cooperate with other cooperatives and be affiliated to apex cooperative bodies like
the Kenya Union of Savings and Credit Cooperative Societies (KUSCCO) and
Cooperative Alliance of Kenya (CAK). (Section 2.3 of Kanisa SACCO By-Laws).
2.2 Vision
To be the leading one-stop financial institution providing diverse products and services
for members’ economic empowerment (Section 2.1 of Kanisa SACCO By-Laws).
2.3 Mission
To promote thrift, prudent management, member participation, regular education,
development of dynamic systems that will ensure growth, security of funds and
encourage a positive organizational culture (Section 2.2 of Kanisa SACCO By-Laws).
2.4 Core Values
In addition to the cooperative values and principles, Kanisa SACCO adheres to the
following core values:
Integrity: The society’s operations are characterized by mutual respect and openness;
impartiality, independence and honesty and upholding of the highest ethical and
professional standards in an open and consistent way;
Transparency: The society remains committed to serve members with openness in all
her transactions while maintaining good communication links and adherence to rules
and regulations;
Professionalism: The society maintains high standards and adequate level of knowledge
and skills to enable the provision of quality services; and
Teamwork: The society harnesses synergies of members to realize set goals through
commitment towards organizational goal attainment and ensuring that interests of the
society supersede those of individuals and that everyone’s contribution and participation
is valued (Section 2.4.3 of Kanisa SACCO By-Laws).
2.5 Motto
Building our economic base through saving and borrowing
3 Situational Analysis
This section presents an evaluation of past performance of Kanisa SACCO, an
analysis of the internal and external environment and a stakeholder analysis. Strengths,
Weaknesses, Opportunities and Threats (SWOT) analysis and Political, Economic,
Social, Technological, Environmental and Legal (PESTEL) analysis are used to discern
the factors that may influence the attainment of the society’s objectives.
3.1 Evaluation of Past Performance
3.1.1 Members’ Deposits
This refers to the total contributions made by members to the society at the end of
a particular financial year. Table 2 and figure 2 below show the trend in the last 6
financial years.
Table 2: Growth in Members’ Deposits
Financial
2009 2010 2011 2012 2013 2014
Year
Deposits
67,977,833.30 83,533,563.22 100,605,478.19 118,919,068.77 135,588,314 165,438,319
(KES)
Growth
22.9% 20.4% 18.2% 14.02% 22.02%
(%)
Figure 2: Growth in Members’ Deposits
Kanisa Members' Deposits Growth

KES 180,000,000.00 22.02%
M
KES 160,000,000.00
E 14.02%
M KES 140,000,000.00
18.20%
B KES 120,000,000.00 17.00%
E KES 100,000,000.00 23.40%
R
KES 80,000,000.00
D KES 60,000,000.00 Percentage Increase
E KES 40,000,000.00
P
KES 20,000,000.00
O
S
KES -
I 2009 2010 2011 2012 2013 2014
T
YEARS
S

Kanisa SACCO has reported a significant increase in members’ deposits. This may
be attributed to, among others, increase in membership over the six year period. The
average increase in the members’ deposits is 18.9% per year. Of note is the significant
percentage increase in 2014 as compared to the other years.
3.1.2 Loans Portfolio
Between 2009 and 2014 loans to members increased from Kenya Shillings (KES) 71.9
Million to KES 220.6 Million. This is illustrated below.
Table 3: Growth in Members’ Loans
Financial Year 2009 2010 2011 2012 2013 2014
Loans
Disbursed 71,964,847.25 99,381,371.41 108,392,446.42 125,622,300 193,834,295 220,665,001
(KES)
Growth (%) 37.59% 22.89% 14.17% 9.98% 19.59%
Outstanding
71,964,847.25 99,019,998.81 121,681,564.14 138,920,117.80 152,786,536 182,712,582
Loans (KES)
Figure 3: Growth in Members’ Loans

Kanisa SACCO reported an increase in the loans portfolio, with an average increase of
20% per year over the last six years. In 2014, there was an increase of 19.59%.
3.1.3 Interest on Members’ Deposits
The interest paid to members for their deposits is summarized in Table 4.

Table 4: Growth in Interest on Members’ Deposits
Financial Year 2009 2010 2011 2012 2013 2014
Interest (KES) 5,695,000 6,388,800 8,200,000 10,000,000 10,350,000 13,400,000
Growth (%) 12.2% 28.3% 22% 3.5% 29.5%
Income (KES) 8,717,496.40 9,965,009.95 13,548,900.73 16,329,548.60 17,354,930.10 20,506,693

Interest as a
65.3% 64.1% 60.5% 61.2% 59.6% 65.3%
% of Income
Figure 4: Growth in Interest on Members’ Deposits
Interest on Deposits Earnings Trend

10.00%
O 8.20% 8.40%
8.10% 7.60% 8.10%
N 8.00% 7.40%
I
N 6.00%
D
T
E 4.00%
E
P Interest on Deposits Earnings
R 2.00%
O
E
S
S 0.00%
I
T 2009 2010 2011 2012 2013 2014
T
S YEARS
During the last six year period under review, the society maintained an average interest
on deposits of 8% per annum. The highest declared interest was in 2012, when the
interest paid out stood at 8.4%.
Cumulatively, amounts paid out as interest on deposits have been increasing year on
year. A significant drop was noted in the percentage increase of amounts paid out in
2013 - at 3%. However, the amounts paid out in 2014 increased by 29.5%.
3.1.4 Membership
Table 5 and figure 5 summarize the society’s membership growth.

Table 5: Growth in Membership
Financial Year 2009 2010 2011 2012 2013 2014
Membership 299 414 537 746 947 1, 222
Growth (%) 38.4% 29.7% 38.9% 26.9% 29%

Figure 5: Growth in Membership
Kanisa Annual Membership Growth

1400
29.04%
1200
26.94%
1000
38.92%
800
MEMBERS
600 29.71% 1222
38.46% Percentage Increase
947
400 746 KANISA Membership
537
200 414
299
0
2009 2010 2011 2012 2013 2014
YEARS
There has been a steady membership growth averaging at 32% per annum. This
membership growth is a positive sign that the business plan of the SACCO is on the
right course.
3.1.5 Income and Expenditure Analysis
Table 6 and figure 6 present an analysis of society’s income and expenditure.

Table 6: Analysis of Income and Expenditure
Financial Year 2009 2010 2011 2012 2013 2014
Growth Rate in Income (%) 14.3% 36% 20.5% 6.3% 18.2%
Growth Rate in Operating Cost 15% 22.6% 16.7% 32.2% (2.4%)
Growth Rate in Interest on

12.2% 28.3% 22% 3.5% 29.5%
Members’ Deposits
Income, Expenditure and Interest on Members'

40.00%
Deposits Analysis
35.00%
30.00%
25.00% Growth Rate in Income

Growth in Percentage
20.00%
Growth Rate in Operational
15.00% Cost
Growth Rate in Interest on
10.00%
Members' Deposits
5.00%
0.00%
-5.00%
2010 2011 2012 2013 2014
Years
Figure 6: Analysis of Income and Expenditure

Between 2011 and 2013, there was an increase in the operational costs year on year,
and this translated to reduced percentage growth on the income and thus, a reduced
percentage in the interest paid to members’ deposits. However, a notable change
occurred in 2014 and this can be attributed to increased efficiency.
3.1.6 Key Performance Benchmarks
The following table shows the current performance indicators for the society.
Table 7: Kanisa SACCO’s Current Key Performance Indicators
Year 2009 2010 2011 2012 2013 2014
Performance
Indicator
Number of
299 414 537 746 947 1, 222
Members
% Growth in
Members per 38.4% 29.7% 38.9% 26.9% 29%
Annum
Loan Portfolio 71,964,847.25 99,019,998.81 121,681,564.14 138,920,117.8 152,786,536 182,712,582
% Increase in
37.6% 22.9% 14.1% 10% 19.6%
Loans
Number of
Products and 7 7 7 8 10 13
Services
% Increase in
products and 0% 0% 14% 25% 30%
services
In general, there has been a significant increase in the performance of Kanisa SACCO.
This is greatly attributed to the increase in membership and introduction of new products
and services. During the period under review, efforts were made to mobilize resources
from other sources that increased the society’s income and enhanced marketing and
public relations and timely service delivery to members.
3.2 External Environment
3.2.1 Political Environment
Kenya’s political landscape is defined by the current constitutional dispensation (as per
the Constitution of Kenya (2010)). In addition to this, various developments including
the 2007/8 post-election violence and subsequent events such as the on-going cases at
the International Criminal Court (ICC) have implications on business and investments.
The devolved system of governance creates two levels of government: National and
County Governments as per the provisions of the constitution. While the overall
regulation of Cooperative Societies still lies in the hands of the National Government,
the County Governments, as per the Fourth Schedule of the Constitution of Kenya
(2010), have authority over those societies that operate within their respective
jurisdictions. While the new system of governance creates opportunities for business
and investments, power struggle within and between the two levels of government as
well as poor legislation, are some of the challenges that hinder investments. Emergence
of power elites and rent-seekers at the County government level, on one hand, and
political dynamics including the current push for referendum by a section of politicians
including some governors, on the other hand, have contributed to an environment of
political anxiety.
The role and place of negative ethnicity and balkanization of the country into ethnic
blocks (which have also been perpetuated by the devolved system of governance)
creates fear in people from investing in places other than ‘their own areas’. This fear is
embedded in the past experiences where people have ended up losing all investments
during political electoral contests.
The country’s Vision 2030 which aims at transforming Kenya into a prosperous and
middle income country in which all Kenyans enjoy a high quality life by 2030 offers
a framework through which savings and investment institutions can contribute to the
overall economic and political development. This is clear when the three pillars -
economic, social and political - are taken into the context of planning. The political
pillar, in particular, aims at achieving a democratic political system that is issue based,
people cantered, results based and accountable to the public. On the other hand, the
economic pillar seeks, through the use of formal and informal approaches, to generate
economically-self-sufficient communities. However, the smooth implementation of

the development framework faces myriad challenges including increasing levels of
national insecurity, high cost of doing business, unfavourable loan terms from banks
and other financial institutions and fear of borrowing.
While the above come as political challenges expected to face the operations of
Kanisa SACCO, they also offer opportunities for engagement and growth. During the
implementation of the strategic plan, efforts shall be taken to engage closely with the
relevant ministries of County governments and to influence policy formulation and
enactment of favourable legislation for the cooperatives sector by County Assemblies.
Further, the society endeavours at taking advantage of the increased development
and implementation of regulatory frameworks that seeks to improve governance
in the cooperatives sector. This includes legal reforms to encourage the use of non-
conventional collateral and the introduction of Credit Reference Bureaus (CRB) which
comes as positive developments for SACCO operations in the country. To this extent,
the society, in implementing the strategic plan, intends to strengthen its credit control
by introducing the services of the CRBs. Additionally, keen and cautious strategies will
be developed and implemented to ensure that members’ savings and investments do
not suffer especially as a result of political turmoils with particular case of those which
come during the elections and electoral contestations.
3.2.2 Economic Environment
The World Bank has identified African countries as among the fastest growing
economies in the world today. Kenya has been identified as among the three fastest
growing economies and ranked third after the Philippines and China. In a recent study1,
the bank notes that the continent’s economies have been experiencing annual growth
rates well above 5% in the last decade and there is optimism and prospects for steady
growth despite general global economic challenges. The study also points out some
serious challenges that include the failure of translating this high economic growth into
better living standards for the people. This implies that poverty reduction efforts by
different countries have not benefited from such growth.
Improved macro-economic conditions, micro-economic reforms, rapid growth of
1 World Bank (2013) ‘An Analysis of Issues Shaping Africa’s Economic Future’. Africa’s Pulse 8 (October 2013), Washington, D.C:
World Bank
information and communication and development and/or strengthened informal sector

which subsequently stimulates local entrepreneurship are among factors that have
contributed to the improved economic situation in the country.
Kenya’s Vision 2030 identifies economic development as a key pillar in driving towards
a newly industrialized ‘middle-income country providing quality life for all citizens by
the year 2030’. The government recognizes the role of cooperative societies when it
states, in the document, that it ‘will streamline informal finance and savings and credit
cooperative organisations, as well as micro-finance institutions’ as part of the pathway
to overall national development.
The Medium Term Plan of 2013 to 2017 of Vision 2030 provides for attainment of
high economic growth and the provision of quality services for Kenyans. It also
focuses on improving and modernizing the country’s infrastructure and achieving long
overdue structural transformation from a factor based economy to a knowledge based
economy. Kanisa SACCO will seek to benefit from the dividends that accrue from this
infrastructural development. The society also considers County governments as new
spaces for economic investments and opportunities.
Kanisa SACCO has a big part of its membership being either employed by Non-
Governmental Organizations (NGOs) or self-employed. Non-governmental
organizations rely heavily on unreliable funding from foreign agencies. A re-emergence
of the global financial crisis could affect the society greatly. The society will need to
determine how to take advantage of regional and continental economic opportunities to
cushion it against such eventualities.
Increased drought and unpredictable weather patterns due to the effects of climate
change will continue to affect food security in the country. This will lead to increase in
the cost of living and the inflation rate, which may affect the society’s growth due to
reduced savings and borrowing by members.
3.2.3 Social Environment
According to the Socio-Economic Atlas of Kenya, 20142, inequality and poverty

are still prevalent among the people of the country. The realities of inequality and
poverty manifest in increased infant mortality, malnutrition, unemployment, teenage
2 Kenya National Bureau of Statistics (2014) Socio-Economic Atlas of Kenya Nairobi: Kenya National Bureau of Statistics.
pregnancy, illegal drug use, criminality, alcoholism, gangsterism and associated social
ills. The Socio-Economic Atlas of Kenya, 2014, also highlights an increase in women-
headed households especially in urban areas. This presents a challenge and opportunity
for Kanisa SACCO to study the needs of its members and seek to meet them through
strategically designed products and services.
The prevalence of non-communicable diseases such as diabetes, hypertension and
cancer has led to an increase in household expenditure in healthcare. This could,
with time, result in reduced savings, low productivity of members and an increased
level of members withdrawing from the society. This is likely to impact negatively on
the society’s profitability and growth. To mitigate this, the society will need to hasten
its health education to members and also institutionalize the provision of affordable
medical insurance services and promote the savings scheme to cushion members from
social challenges that need not be addressed through loans.
From the above, it can be noted that increased social responsibility will continue to
dictate members’ saving and borrowing patterns. This could lead to a growth in demand
for loans to meet the emerging responsibilities. While this may be good for loans’
growth, it calls for a constant needs assessment to design products and services that
meet members’ emerging needs.
Consumerism and a sense of boundless accumulation, that is, the endless expansion
of wants on which capitalism rests is already having its effects on the Kenyan society.
This is evident in high levels of personal indebtedness mostly from unsecured lending
from unscrupulous and exploitative lenders that continues to shackle the middle class
and the poor and drive them into the abyss of poverty. Kanisa SACCO will seek to
enhance its education outreach to members to liberate them from the yoke of poverty
and perpetual indebtedness.
Over 60% of the Kenyan population is youth with 33% of the population aged between
25 and 64 years. Kanisa SACCO has a big percentage of its membership in this age
bracket. This challenges the society to design attractive products and services for the
various age groups in the society.
The pressure for the society to undertake corporate social responsibility activities that
also enhance its visibility and corporate image will contribute to a limited drain on its
capital base.
3.2.4 Technological Environment
Technology is central to business and development. Therefore, Kanisa SACCO should

keep abreast of technological advancements and changes. Some technological factors
that have a bearing on Kanisa SACCO’s strategic plan are the impact of internet
connectivity (which includes access to and use of the social media) and the mobile
telecommunications revolution. Besides investing in these technological innovations,
Kanisa SACCO will also need to upgrade its software, build the capacity of the users
of the software and invest in computer hardware. The society will need to develop an
interactive website and will stand to benefit from these technological advancements
through enhanced service delivery and timely engagement with its membership.
However, technology has its challenges. It entails initial high costs in procuring
and maintaining the acquired technology. The rate of obsolescence is also very high
and there is need for regular updating. The society will need to constantly put secure
measures against hacking, fraud, computer viruses and information theft. The society
will also acquire software that will meet its current and the future needs.
3.2.5 Environmental Factors
The effects of climate change are being felt in the country in the increased drought and
unpredictable weather patterns and flooding. These will continue to affect food security
in the country and will in turn lead to an increase in the cost of living and the inflation
rate. This may affect the society’s growth due to reduced savings and borrowing.
Unchecked pollution especially in urban areas will continue to affect the health and
well-being of the society’s membership and could, with time, result in reduced savings,
low productivity of members and an increased level of members withdrawing from the
society.
3.2.6 Policy/Legal Environment
Cooperative societies contribute to poverty eradication, social cohesion and national

integration. The government has therefore endeavoured to create a conducive
environment for the growth of the sector. It has developed and continues to develop and
strengthen the existing laws and regulations to ensure that all the cooperative societies
adhere to a common system and standards of management. These laws and regulations
include the Cooperative Societies Act, 1997 (amended in 2004), Cooperative Societies
Rules, 2004 and regulations and other policies and legal frameworks developed and
applied by government departments concerned with the affairs of the cooperative
movement in the country.
These laws and regulations provide the government with powers to direct, control and
oversee the affairs of the cooperative societies sector. These powers, nonetheless, do
not remove the control of SACCOs from the hands of the membership but only ensure
that there is a centralized coordination and principles of conducting the affairs of the
SACCOs. The government, in addition to the existing frameworks, also recently,
established the Sacco Societies Regulatory Authority (SASRA) under the Sacco
Societies Act, 2008 to regulate deposit-taking SACCOs. This is in appreciation of the
dynamism and growth in the sector.
Kanisa SACCO has in place By-Laws that are compliant with the government
policies and regulations and a leadership and management system that conforms to the
requirements of the Constitution of Kenya (2010). In addition, the society has developed
and put in place various policies to ensure that it does business in accordance with
the laid down procedure. The society will endeavour to closely monitor the legislative
processes at the County Assemblies in order to influence the enactment of enabling
legislation for the cooperatives sector through the apex bodies. Similar vigilance will
also be applied to legislative processes of the National Assembly and Senate.
During the strategic plan period, the society will seek to closely evaluate the effects of
the Public Benefit Organizations (PBO) Act, 2013 on its member organizations and
take appropriate advocacy actions to ensure it does not affect the growth of the society.
The society will also examine the effects of the capital gains tax and other tax regimes
that may be introduced during the strategic plan period.
3.3 Internal Environment
This section outlines issues within and without the society that can positively or
negatively affect its performance.
3.3.1 SWOT Analysis
Strengths Weaknesses
• Long history and identity (the Kanisa brand); • Low capital base;
• Diverse membership (different age groups with • Low membership base;
25 to 35 year olds as majority; and diverse • Inadequate and non-structured marketing;
income levels); • Poor savings culture;
• Informed membership; • Members’ conformity with the existing loan
• Online presence and accessibility; products and services;
• Open membership that is not tied to a common • Inadequate systems for follow up of loan
bond; defaulters (absence of database of positive credit
• Quality and stable leadership; history of members);
• Kanisa Holdings Limited as a vehicle to • Failure to retain and document institutional
diversify the society’s business; memory (managing transition in the CMC);
• Share capital and deposits so far mobilized; • Weak communication;
• Operational tools and physical assets; • Members not paying full attention especially on
• Competent human resources; guarantorship;
• A continuous learning society (regular • Members limiting their guarantorship pool;
training and education to members, staff and • Poor attendance of the society’s events (for
management committee); example, AGM, Education Day and Charity Day);
• Positive organizational culture (of engagement, • Lack of proper member stratification and
dialogue, transparency and honest dealings); categorization (absence of member database with
• Internal control systems, structures and key variables such as age that determine preferred
policies; products and services);
• Financial stability leading to timely processing • Lack of a ‘know your member’ strategy;
and disbursement of loan products and • Some loan products have short repayment periods;
services; • Underutilization of the website and the social
• Quality and efficient service delivery; media (website not regularly updated and not
• Embracing of information, communication and interactive);
technology (ICT) for efficient communication • Recovery of defaulted loans from guarantors
and service delivery (Sacco Plus Software; that eats into the capital base (failure to have
MPESA Paybill; electronic communication; guarantors pay out of payroll);
SMS; website, social media); • Unequal representation of individual members in
• Affordable lending rates; the society’s leadership and management;
• Accessible SACCO office; • Low interest on deposits;
• Prompt loan processing; • Lack of consideration of unique needs of members
• Cohesion and togetherness of members; who are not based in Nairobi; and
• Youthful membership; and • Inadequate human resource (understaffing).
• Diverse loan products and services portfolio.
Opportunities Threats
• Availability of credit facilities from External Threats

other financial institutions; • Insecure political environment;
• The name Kanisa SACCO is easy • Unfavourable government policies, regulations and
to sell; structures;
• Existing information • Strained diplomatic relations;
communication technology • Unstable monetary policies;
infrastructure that is easy to adopt; • Donor dependency of corporate organizations associated with
• Membership growth and emerging the society;
formal and informal investment • Economic competitors such as Microfinance Institutions
groups; (MFIs), Small and Medium Enterprises (SMEs) and other
• Improved diplomatic relations; SACCOs;
• Potential for product diversification • Poor saving culture;
based on changing trends in • Upsurge of lifestyle diseases and other health challenges;
the market (for example, Local • Urban-rural migration;
Purchase Order (LPO) financing • Upsurge of social welfare groups such as chamas;
and asset financing); • Emerging alternative savings schemes such as mobile
• Existing mechanisms of addressing banking and lending (M-Shwari, M-Kopa, M-Solar and
loan default (Credit Reference others);
Bureaus and debt collectors); • Cyber-crime, fraud and money laundering;
• The unreached market, for example, • Changing technology;
the Diaspora; and • Exorbitant legal fees;
• Existing investment opportunities • Unprofessionalism of service providers; and
(Kanisa Holdings Limited). • Environmental factors that can negatively impede on the
society’s affairs.
Internal Threats
• Poor savings culture;
• Delay in remittances from employers;
• Late submission of members’ contributions;
• Membership withdrawal;
• Limited funds for lending to members; and
• Increasing rate of loan default.
3.4 Stakeholder Analysis

Stakeholders Expectations
Members • Open, appropriate and targeted communication (business loan information targeted to
members in business);
• Timely, regular and relevant communication;
• Service beyond satisfaction;
• Good return on deposits, shares and savings;
• Education, empowerment and advice;
• Investment opportunities; and
• Prudent financial management
Staff • Better remuneration;
• Better working environment;
• Better terms for access to the society’s products and services (a subsidized rate for
staff);
• Branded attire for special days, occasions and events; and
• Career growth and advancement
Central • Branded attire for special days, occasions and events;
Management • Adequate compensation;
Committee (CMC) • Training and capacity development;
• Feedback from and strong interaction with members;
• Cooperation among cooperators; and
• Enhanced relations with corporates, apex bodies and strategic partners
Supervisory • Good record keeping;
Committee • Compliance and adherence to the society’s By-Laws; and
• Prudent financial management
Strategic Service • Prompt payment; and
Providers • More business opportunities
Employers • Support;
• Efficient communication;
• Prudent management of the society;
• Enhanced bilateral relations; and
• Comfortable staff whose welfare has been addressed
Regulatory • Compliance;
Authorities • General welfare of members;
• Timely communication and updates;
• Invitation to events; and
• Education to members
Government • Compliance; and
Agencies • Education to members
Banks and • Use of their products and services;

Other Financial • Good working relationship; and
Institutions • Growth in the society leading to increased uptake of services from them
Researchers and job • Information;
seekers • Opportunities for research and development; and
• New ideas and insights
Training Institutions • Job/placement opportunities for their trainees;
• Internship opportunities;
• Good working relationship; and
• Career enhancement
Apex Bodies • Communication;
• Cooperation;
• Good working relationship; and
• Patronizing of their products and services
4 Strategic Analysis
This section presents the strategic issues, objectives and strategies the society will focus
on during the strategic plan period.
4.1 Strategic Issues, Objectives and Strategies
From the review of the society, the following issues have been identified as the critical
areas of focus for the strategic plan period:
1. Marketing of the Society;
2. Investments;
3. Research and Development;
4. Internal Business Processes;
5. Strong Capital Base; and
6. Credit Management.
Critical Issue/Key
Problem Strategies
Area of Focus
• Capitalize on the Kanisa brand;
• Marketing to Small and Medium Enterprises (SMEs) and other
corporate bodies;
Low brand awareness Marketing of the
• Innovative Corporate Social Responsibility (CSR);
and low membership Society
• Strengthening communication and information dissemination
systems; and
• Enhancing membership development and retention
Low return on
Investments Diversification of investments
investment
• Product diversification;
Research and • Benchmark with other SACCOs and financial institutions;
Limited products and
Development • Exploring product diversification based on changing trends in the
services offering
market (for example, LPO financing and asset financing); and
• Research on members
• Leveraging on online presence;
Low members Internal Business • Strengthening use of ICT;
satisfaction Processes • Continuous staff development; and
• Strengthening governance structures
• Increasing share capital;
Strong Capital Base
Low capital base • Increasing the statutory reserve; and
• Building and strengthening members’ saving culture
• Mitigating loan default rate;
Financial risk Credit Management • Enhancing members’ knowledge about guarantorship; and
• Strengthening credit risk management systems
4.1.1 Strategic Issue 1: Marketing of the Society

Strategic Objective: To increase membership by at least 30% annually and reduce
withdrawal rate by 25% annually by 2019.
Strategies:
• Capitalize on the Kanisa brand;
• Marketing to Small and Medium Enterprises (SMEs) and other corporate
bodies;
• Innovative Corporate Social Responsibility (CSR);
• Strengthening communication and information dissemination systems; and
• Enhancing membership development and retention.
4.1.2 Strategic Issue 2: Investments
Strategic Objective: To increase return on investment by at least 5% at the end of 2019.

Strategy:
• Diversification and strengthening of investments.
4.1.3 Strategic Issue 3: Research and Development
Strategic Objective: To continuously innovate and review the society’s products and
services offering by 2019.
Strategies:
• Product diversification;
• Benchmarking with other SACCOs and financial institutions;
• Exploring product diversification based on changing trends in the market (for
example, LPO financing and asset financing); and
• Research on members and the cooperatives sector.
4.1.4 Strategic Issue 4: Internal Business Processes
Strategic Objective: To improve internal business processes and systems for efficient
and effective service delivery by 2019.
Strategies:
• Leveraging on online presence;
• Strengthening use of ICT;
• Continuous staff development; and
• Strengthening governance structures.
4.1.5 Strategic Issue 5: Strong Capital Base
Strategic Objective: To increase the society’s capital base by 20% annually by 2019.
Strategies:
• Increasing share capital;
• Increasing the statutory reserve; and
• Building and strengthening members’ saving culture.
4.1.6 Strategic Issue 6: Credit Management
Strategic Objective: To maintain a growing and quality loan portfolio by 2019.

Strategies:
• Mitigating loan default rate;
• Enhancing members’ knowledge about guarantorship; and
• Strengthening credit risk management systems.
5 Implementation Plan
Successful implementation of the strategic plan depends on the communication of the
plan to all stakeholders. Annual operational plans will be developed and resources
mobilized to support the proposed activities as per the implementation matrix. Annual
budgets of the society will seek to keep track and prioritize activities in light of
anticipated changes in the operating environment.
The Central Management Committee (CMC) will determine and facilitate the required
financial and human resources for the implementation of the strategic plan. The
Committee, in addition, will be charged with the responsibility of ensuring that the
implementation of designed actions are not only actualized but also adhere to the
approved budget. To this end, the Members’ General Meeting, which is the supreme
authority of the Society (Section 6.1 of Kanisa SACCO By-Laws), such as the Annual
General Meeting, while receiving reports and status of the plan implementation will
approve budgetary allocation for the plan as part of the financial expenditure of the
society.
The investments functions of the society under this strategic plan will be undertaken
through the Kanisa Holdings Limited (KHL), a fully-owned subsidiary company of
the society. To facilitate this, the Board of Directors (leadership) of KHL may form an
investment committee. The Board of Directors (leadership) of KHL will report to the
society’s CMC.
The following section presents the implementation matrices.
5.1 Implementation Matrices 34
5.1.1 Marketing of the Society
Objective 1: To increase membership by at least 30% annually and reduce withdrawal rate by 25% annually by 2019.
Timeframe
Strategies Activities Performance Indicators Responsible
2015 2016 2017 2018 2019
Continuous member • Increased member and brand loyalty;
education and Education Committee and Staff
Enhancing • Enhanced public image of the society
membership Regular updates to members Increase in received feedback from
Executive Committee and Staff
development and members
Kanisa SACCO Strategic Plan for 2015 to 2019
retention Exploration of other

• Increased loan uptake; and Central Management Committee; Staff; and
acceptable collaterals and Q3
• Reduced member withdrawal Members
modes of guarantorship
Institutionalize the society’s
• Designated corporate days; Central Management Committee; Staff; and
corporate days; and Q2
• Increased visibility of the society Members
Use of branded items
• Increased members and brand loyalty;
Develop Information, • Increased public awareness of the
Education and society;
Communication (IEC) Q2 • Number of public inquiries and Central Management Committee; and Staff
promotional materials feedback on the society; and
Capitalize on the • Level of content developed and aired
Kanisa brand through the mass media
• Increased visibility of the society; and
Engagement with the media
Q2 • Number of public inquiries and Executive Committee; and Staff
feedback
Documentation and
• Number of feedback received; and
dissemination of the history
Q4 Q4 Q4 Q4 Q2 • Increased patronage of the society’s Executive Committee; and Staff
and achievements of the
products and services
society
Development of a framework
for corporate membership Number of desks set up in open days of
Q4 Central Management Committee; and Staff
prospective corporate organizations
Marketing
to Small and
Medium Facilitation of member • Increased visibility of the society; and
Executive Committee; Education
Enterprises recruitment/care desks at Q3 • Number of public inquiries and
Committee; and Staff
(SMEs) and other identified locations feedback
corporate bodies Participation in exhibitions • Increased visibility of the society; and
Central Management Committee; Staff; and
and forums of SMEs to Q2 Q3 Q1 Q4 Q2 • Number of public inquiries and
Members
market the society feedback
• Number of updates disseminated; and

Regular members’ update • Number of feedback received from Executive Committee; and Staff
members
Strengthening Continuous review of • Vibrant discourse on the society’s

communication the society’s website and Q3 website; and Executive Committee; and Staff
and information brochure • Number of brochures distributed
dissemination
systems
• Number of ‘likes’ on the society’s
Active engagement with Members; Staff; and Central Management
Q2 page in the social media; and
members on the social media Committee
• Vibrant discourse in the society’s
social media pages and twitter
Innovative • Number of members participating in

Undertake Charity Day visits
Corporate Social Charity Day visits; and
and activities in needy social Q4 Q4 Q4 Q4 Q4 Education Committee; Staff; and Members
Responsibility • Press coverage of the charity day
Institutions
(CSR) activities
35
5.1.2 Investments
36
Objective 2: To increase return on investment by at least 5% at the end of 2019.
Timeframe
2015 2016 2017 2018 2019
• Number of projects initiated and realized;
• Number of projects advertised and
Kanisa purchased;
Holdings • Amount/increase in returns obtained; Staff; KHL Board
Limited (KHL) • Feedback and expression of satisfaction of Directors; and
and/or suggestions from members and the Shareholders
public; and
• Operations of full-fledged Kanisa Holdings
Limited office
• Increased returns from existing portfolio;

• Number of investment institutions brought
on board;
Diversification and • Number of agreements or MOUs signed
strengthening of Investment and implemented; Staff; Board of
investments in the Money • Amounts of funds invested in the Directors; and
Market Fund institutions; Shareholders
• Amounts of returns or profits obtained in
the new investments; and
• Records of meetings or discussions with the
investment institutions
• Number of new investment opportunities;
• Number of new MOUs and agreements
signed;
Other KHL Board of
• Additional funds and profits to the
investments Directors; and Staff
company; and
• Records of meetings with (and list of) new
institutions enrolled
5.1.3 Research and Development
Objective 3: To continuously innovate and review the society’s products and services offering by 2019.
Strategies Activities Time frame Performance Indicators Responsible
2015 2016 2017 2018 2019
Product • Introduction of new Q2 • Number of new products and services Education Committee;
Development products into the developed; KHL Board of Directors;
existing market; and • Number of products appealing to the existing and Staff
• Development of market (membership); and
new competencies • Product and services innovation
(Human Resource)
• Selling existing
products into existing
and new markets;
• Venturing into new
geographical markets; • Number of new markets established /new
• Market penetration geographical markets segments established;
Market Central Management
through aggressive Q3 and
Development Committee (CMC)
promotional • Number of new members/ customers taking
campaign to secure products
dominance over
competitors; and
• Introduction of
loyalty schemes
Product • Loaning strategies • Number of products and services reviewed; Education Committee; and
diversification and products • Number of loan products developed to attract Credit Committee
promotions different customers; and
(advertising) to • Increased uptake of loans and
increase the market • patronage of product and services by members
Q4
share of the current

products as well as
new products; and
37
• Development of new
loan products
• Identifying best 38
practices within the • Number of best practices in SACCOs
industry; identified;
• Analyse emerging • Number of reviews and analysis done;
trends in the industry; • High quest for a competitive position among
Benchmarking • Forecasting on similar SACCOs / businesses Education Committee;
with other technologies in • High payoff in terms of quality and customer Credit Committee;
SACCOs the market and satisfaction; KHL Board of Directors;
and financial determining what • High awareness of industry good practices; and Staff
institutions breakthroughs • Improved financial performance and
exist among these profitability of the SACCO and its subsidiary;
technologies; and • Improvement in various areas at the
• Product, financial operational level within the SACCO; and
and operational • Members’ retention and growth
benchmarking
• Undertake needs
assessment;
• Gather information on
• competitors and
Education Committee;
members’ needs; • Number of studies conducted;
Research on Credit Committee;
• Review By-Laws and • Feedback received from members;
members and KHL Board of Directors;
policies; • High member satisfaction;
the cooperatives and
• Conduct surveys on • Low member withdrawals; and
sector Staff
members and the • Increased loyalty and patronage
industry;
• Create an online
feedback form;
• Create a suggestion
box
5.1.4 Internal Business Processes
Objective 4: To improve internal business processes and systems for efficient and effective service delivery by 2019
Timeframe
2015 2016 2017 2018 2019
Leveraging on Upgrade website

online presence Q3 Number of visits to the website Education Committee; and Staff
Interactive use of Increased enquiries and responses from

Education Committee
social media current and potential members
Timely and
Increased enquiries and responses from
continuous updates Education Committee
current and potential members
of the website
Develop Kanisa
Ease of access of statements, loans and
SACCO Web portal Q3 Q2 Executive Committee and Staff
guarantorship status by members
Strengthening use
of ICT Continuous upgrade • Reports that meet the user’s
of SACCO Software expectation; and Executive Committee and Staff
System • User friendly software and reports
Continuous training
Competent and informed staff Executive Committee and Staff
and education
• Improved service delivery; and
Provision of good
• Number of positive feedback received Executive Committee and Staff
working environment
Continuous staff from members
development
Facilitate linkage
Increased participation in professional
with professional Executive Committee and Staff
forums and workshops
bodies
39
Offer competitive
Staff retention Executive Committee and Staff
remuneration
Enhance 40
management • Strong internal control systems; and Central Management Committee
capacity • Timely and quality decisions (CMC)
Nurture good
• Number of MOUs entered with
working relation
strategic service providers and member
with strategic Central Management Committee
organizations;
service providers (CMC)
• Improved business relations; and
and member
• Timely and consistent remittances
organizations
Strengthening
governance
structures
Timely statutory Timely payment of statutory dues and Central Management Committee
compliance returns (CMC)
• Adequate, well equipped and well-

Allocate adequate Central Management Committee
furnished office; and
resources (CMC)
• General business growth
5.1.5 Strong Capital Base
Objective 5: To increase the society’s capital base by 20% annually by 2019.

Timeframe
2015 2016 2017 2018 2019
Increasing share
capital Central Management
Implement the dividend policy Percentage increase in share capital
Committee (CMC)
• Increased savings mobilization

Education Committee;
Educate members on importance of share base; and
and Members
capital enhancement • Number of members educated
• -Number of new members Staff; and Central

Implement revised share capital
Q2 Q2 Q2 Q2 Q2 meeting revised share capital Management Committee
requirement
requirement (CMC)
• Percentage increase of retained

Staff; Central
Increasing the earnings; and
Increase retained earnings Q1 Q1 Q1 Q1 Management Account
statutory reserve* • Status of Reserve Fund
(CMC)
Account
• Number of members attending
education day;
Central Management
• Feedback received from
Education to Members Q3 Q3 Q3 Q3 Q3 Committee (CMC); and
educational articles shared; and
Members
• Increased uptake of products
and services
Building and
strengthening
• Percentage increase in
members’ saving minimum monthly contribution; Central Management
culture Encourage members to increase monthly
Q2 Q2 Q2 Q2 Q2 and Committee (CMC);
41
contributions
• Percentage growth in members’ Staff; and Members
deposits
42
* Rule 37 (1) of the Cooperative Societies Rules, 2004 provides that ‘Every cooperative society shall pay into the reserve fund maintained in pursuance to the provisions of section 47 of the Act, one-
fifth of any net surplus resulting from the operations of the society during a financial year.
5.1.6 Credit Management
Objective 6: To maintain a growing and quality loan portfolio by 2019.
Timeframe
2015 2016 2017 2018 2019
• Increased savings mobilization base; Central Management
Prudent loan appraisal
and Committee (CMC); and
• Performing loan portfolio Staff
Mitigating loan
Use of alternative security • Enhanced loan recovery Credit Committee and Staff
default rate
• Increased member education; Credit Committee;
Know your customer • Increased member savings; and Education Committee; and
• Performing loan portfolio Staff
Enhancing members’ Credit Committee;
knowledge about Performing loan portfolio Education Committee; and
guarantorship Staff
Increase use of alternative

Increased loan recovery rate CMC; Members; and Staff
security
Engage the services of debt Members; Staff; and Debt

Increased loan recovery rate
Strengthening credit collectors Collectors
risk management
systems
Registration with Credit • Number of defaulters referred to

Reference Bureaus (CRBs) Credit Reference Bureaus; and CMC; and Staff
• Increased loan recovery rate
43
6 Institutional Structure
This section presents the institutional structure covering the Annual General Meeting
(AGM); the Central Management Committee (CMC), the Supervisory Committee (SC)
and the Secretariat. It further outlines the place of the leadership of KHL, a subsidiary
and fully owned Investment Company of the Society.
6.1 Organizational Structure
The following is the current organizational structure:-
Annual General
Meeting (AGM)
KHL – Board Central Management Supervisory

of Directors Committee (CMC)
Committee (SC)
Ad hoc Education Executive Credit

Committee(s) Committee Committee Committee
Finance and
Administration
Manager
Assistant Finance and Intern

Administration Manager

The current organizational structure is important for the successful implementation of

the strategic plan.
6.2 Annual General Meeting (AGM)
The supreme authority of the society is vested in the general meeting at which members
have the right to attend, participate and vote on all matters (Section 6.1 of the Kanisa
SACCO By-Laws).
6.3 Central Management Committee (CMC)
The Central Management Committee (CMC) is the governing authority of the society
and is subject to the directions from general meetings. It directs the affairs of the society
following the procedures, powers and duties prescribed in the Cooperative Societies
Act, 2004 and Rules and the society’s By-Laws (Section 8.2 of the Kanisa SACCO
By-Laws).
The Central Management Committee (CMC) discharges its responsibilities through
delegation to sub-committees made up of its members. The sub-committees are:
executive, credit and education committees. The CMC forms ad hoc committees from
time to time as need arises.
6.4 Supervisory Committee (SC)
The Supervisory Committee is the watchdog of the society. It is responsible in ensuring

that the society is compliant with all rules, regulations and internal controls of all
applicable laws and the society’s By-Laws. The committee ensures that the society’s
internal controls and financial matters are maintained in a safe and sound manner.
6.5 Secretariat
The Kanisa SACCO secretariat is headed by the manager who reports directly to the
Central Management Committee (CMC) and is ultimately responsible for implementing
all management policies, procedures, budgets and business plans. Section 10 of the
Kanisa SACCO By-Laws outlines the duties and responsibilities of the manager.
Current Staff Establishment
The staff establishment as at 31st December 2014 is as shown below:-

Position Number of Staff Gender
Finance and Administration Manager 1 Male
Assistant Finance and Administration
1 Female
Manager
Intern 1 Male
Total 3
7 Monitoring and Evaluation

The proposed activities shall be closely and continuously monitored and the stated
performance indicators used to verify the progress of each activity and determine if the
process is on course or not. This process will involve, on one hand, information and
feedback from the members, organizations and corporate bodies associated with the
society and other stakeholders and, on the other hand, regular management meetings
and other events such as education days, charity occasions and Annual General
Meetings (AGM). Tools such as newsletters, committees and auditors’ reports; and
visits to organizations and corporate bodies associated with the society shall be utilized
to analyse the progress in achieving the intended objectives. Monitoring will involve
routine data collection and analysis on the success of the implementation of the strategic
plan.
Evaluation will entail assessment of overall performance of the society. Annual and
half-term evaluation shall be undertaken in addition to the end term comprehensive
evaluation. The outcome of these evaluations shall be taken into consideration when
drawing the next strategic plan of the society.
The purpose of monitoring and evaluation is to ensure that the strategic plan is
implemented in accordance with the schedule and to take timely action to deal with
any deviations.

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KANISA SAVINGS AND

Building Our Economic Base Through

3.2.2 Economic Environment...................................................................................... 20

The following is the products portfolio of the society:

The loan-related products are:

Emergency Loan 400,000 1 12 12 No No Yes

Mjengo Loan 4,000,000 1.125 13.5 72 Yes Yes No

Instant Loan 100,000 3 6 No No No

Source: Kanisa SACCO Documents.

The following is the current services portfolio of the society:

1.4 Methodology of Developing the Strategic Plan

This strategic plan consists of seven chapters.

3.1.1 Members’ Deposits

Kanisa Members' Deposits Growth

Source: Kanisa SACCO Documents.

Table 3: Growth in Members’ Loans

Financial Year 2009 2010 2011 2012 2013 2014

Growth (%) 37.59% 22.89% 14.17% 9.98% 19.59%

Figure 3: Growth in Members’ Loans

Source: Kanisa SACCO Documents.

The interest paid to members for their deposits is summarized in Table 4.

Interest (KES) 5,695,000 6,388,800 8,200,000 10,000,000 10,350,000 13,400,000

Growth (%) 12.2% 28.3% 22% 3.5% 29.5%

Income (KES) 8,717,496.40 9,965,009.95 13,548,900.73 16,329,548.60 17,354,930.10 20,506,693

Figure 4: Growth in Interest on Members’ Deposits

Interest on Deposits Earnings Trend

Source: Kanisa SACCO Documents.

Table 5 and figure 5 summarize the society’s membership growth.

Membership 299 414 537 746 947 1, 222

Growth (%) 38.4% 29.7% 38.9% 26.9% 29%

Figure 5: Growth in Membership

Kanisa Annual Membership Growth

Source: Kanisa SACCO Documents.

3.1.5 Income and Expenditure Analysis

Table 6 and figure 6 present an analysis of society’s income and expenditure.

Financial Year 2009 2010 2011 2012 2013 2014

Growth Rate in Income (%) 14.3% 36% 20.5% 6.3% 18.2%

Growth Rate in Operating Cost 15% 22.6% 16.7% 32.2% (2.4%)

Growth Rate in Interest on

Income, Expenditure and Interest on Members'

25.00% Growth Rate in Income

Figure 6: Analysis of Income and Expenditure

3.1.6 Key Performance Benchmarks

Loan Portfolio 71,964,847.25 99,019,998.81 121,681,564.14 138,920,117.8 152,786,536 182,712,582

3.2 External Environment

3.2.1 Political Environment

economically-self-sufficient communities. However, the smooth implementation of

information and communication and development and/or strengthened informal sector

According to the Socio-Economic Atlas of Kenya, 20142, inequality and poverty

3.2.4 Technological Environment

Technology is central to business and development. Therefore, Kanisa SACCO should

Cooperative societies contribute to poverty eradication, social cohesion and national

3.3.1 SWOT Analysis

• Availability of credit facilities from External Threats

3.4 Stakeholder Analysis

Banks and • Use of their products and services;

4.1.1 Strategic Issue 1: Marketing of the Society

Strategic Objective: To increase return on investment by at least 5% at the end of 2019.