IS KMA SACCO RELEVANT AND VALUE ADDING TO

IS KMA SACCO RELEVANT AND VALUE ADDING TO TODAY’S DOCTOR? Dr. Boniface M. Mativa KMA SACCO Chairman

The comparative uniqueness of SACCO… SACCO COMPARISON PARAMETER BANK As a cooperative society Registration As a limited company Members Ownership Shareholders (owners of capital) Members/owners Customer/Borrower Non-owners (Open) Member savings/Borrowed from banks Source of liquidity Borrowed from cheaper sources/Non-owner savers From among members Governance From owners of capital Under the Co-operatives Act Regulation Under the banking Act Returns to members Profit beneficiaries Paid out to owners of capital Cost of Credit Market driven to optimize return to investors (Customer the milking cow) Transaction costs Variable and significantly higher Lower, determined by source of financing. Nominal, non-variable, below market

Value delivery model of SACCO… RETIREMENT BENEFITS HOUSING KMA SACCO LTD INVESTMENT OPTIONS SAVINGS OPTIONS LAST EXPENSE ACCESS TO CREDIT INSURANCE SOLUTIONS

Growing the pie… • Increased membership. • Patronage and product uptake. • Loyalty through regular savings and extra. • Loyalty through diligent loan repayment. • Participation in value creation through constructive feedback. • Participation in governance – AGM attendance, vie for board position, give improvement ideas and suggest new products and services. • Participation in SACCO activities – SACCO education activities.

Karibuni…