Insider Lending: A dilemma for Saccos and financial sector

Insider lending is a process where a Savings and Credit Co-operative Society (Sacco) or a financial services institution advances loans to its officers or directors. However, in some developed countries, such as the United States, it is a requirement that such loans are charged at the same interest rate, repayment terms and credit evaluation criteria…

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Why financial agencies need to invest in professional managers

The financial landscape in Kenya is characterized by a diverse array of institutions like banks, insurance companies and Saccos that cater to the financial needs of individuals and businesses. At the heart of the effective functioning of these organizations lies the crucial element of professional management.  This article explores the unique characteristics of banks, insurance…

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How digitization is changing the financial landscape of Saccos

In recent years, Kenya’s Savings and Credit Cooperatives (Saccos) have undergone a revolutionary transformation, thanks to the advent of internet banking. This technological leap has not only modernized financial services but has also brought about a myriad of benefits for Saccos. Traditionally, Sacco members had to navigate long queues within limited operating hours to access…

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Stakeholders should devise measures to ensure timely remittances to Saccos

One major hindrance to efficient service delivery among Saccos in Kenya is delayed remittances from some employers. Unfortunately, delayed remittances happen despite the fact that under Section 35 of the Cooperative Societies Act, Cap 490, there are clear legal provisions intended to ensure recovery of delayed remittances upon expiry of seven (7) days of the…

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Why financial agencies need to invest in professional managers

The financial landscape in Kenya is characterized by a diverse array of institutions like banks, insurance companies and Saccos that cater to the financial needs of individuals and businesses. At the heart of the effective functioning of these organizations lies the crucial element of professional management.  This article explores the unique characteristics of banks, insurance…

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SACCO

All you need to know about retirement

Retirement can mean leaving employment to pursue other interests or businesses. According to my personal analysis, upon retirement, 47 percent of retirees depend on relatives, 3 percent go back to working, 16 percent depend on state pension and only 34 percent have financial independence. Interestingly, 82 per cent of those with financial independence (the 34…

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