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…