Tag: Co-op Bank Kenya News

Co-op Bank Rolls Out Affordable Housing Loans for Aspiring Home Owners

Posted on by Kibaki Muthamia

Co-op Bank customers are now one step closer to their dream of owning their own homes. In a partnership with Kenya Mortgage Refinance Company (KMRC) signed on March 23rd, Co-op Bank has rolled out an affordable housing financing scheme.

Customers now have access to mortgage financing for either a complete, newly-built residential house or purchase and build on a plot of their choice.

How does a Customer become Eligible for the Mortgage?

It’s quite straightforward. As long as you have a Salary or Savings Account with Co-op Bank, you are good to go. The other specifics are:

  • Six (6) months’ banking with Co-op Bank
  • A maximum household gross income of Ksh150,000.
The Head of Legal Services at Kenya Mortgage Refinance Company Elisha Nyikuli, the Director, Corporate & Institutional Banking at Co-op Bank Jackie Waithaka & the CEO National Co-operative Housing Union Mary Mathenge at the stakeholder’s meeting.

What are the Eligible Products?

  • Purchase of a ready-to-use residential house.
  • Purchase a plot: Buy and build arrangement.

What are the Terms of the Loan Units to be financed?

This is what you need to know about the housing mortgage financing package:

  • A loan financing for one (1) unit property under purchase is offered with a considerate interest of 9.9% per annum on a reducing balance.
  • The loan attracts a one-off facility fee of 2% of the loan amount.
  • The maximum loan tenure is 15 years for employed applicants, and 10 years for self-employed applicants.
  • For properties around the Nairobi Metropolitan, minimum loan amount is Ksh.500,000 and maximum limit at Ksh.6 Million.
  • For customers looking to invest in real estate outside the Nairobi Metropolitan, they have a maximum loan limit set at Ksh.5 Million.

Besides, Co-op Bank offers flexibility in financing through loan top ups. A loan top-up under the commercial rate is allowable for a customer upon repaying the initial loan for at least 12 months.

Apply now via goodhome.co.ke or visit and speak with bank representatives at your nearest Co-op Bank branch.

Co-op Bank Announces a Ksh29.4B Profit before Taxes for Year 2022

Posted on by Kibaki Muthamia

Co-op Bank Group is pleased to report a Profit before Tax of Kshs.29.4 Billion for Full Year 2022, a commendable 30% growth compared to Kshs.22.6 Billion recorded in Full Year 2021. This represents a strong Profit after Tax of Kshs.22.0 Billion compared to Kshs.16.5 Billion reported in 2021.

The strong performance by the Bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility.

Dividends

The strong performance has led to a sustained increase in shareholder value as reflected in the competitive Return on Equity of 21.2%. The Board of Directors has recommended a dividend of Kshs1.50 per share, subject to approval by the regulators and shareholders. The proposed dividend represents a 50 per cent enhancement on the Kshs1.00 per share paid out last year.

A virtual Annual General Meeting will be held on Friday, 19th May 2023.

Key Performance highlights:

 Financial Position:

The Group has registered sustained growth as follows:

  • Total Assets grew to Kshs.607.2 Billion, a 4.7% growth from Kshs579.8 Billion in the same period last year.
  • Net loans and advances grew to Kshs.339.4 Billion, a 9.4% growth from Kshs.310.2 Billion in 2021. Customer deposits grew to Kshs423.8 Billion, a 3.9% increase from Kshs.407.7 Billion.
  • External funds from development partners stands at Kshs48.1 Billion from Kshs.42.9 Billion in 2021.Shareholders’ funds have grown to Kshs.107.7 Billion, a 7.4% increase from Kshs.100.2 Billion in 2021.

Comprehensive Income

Total operating income grew by 17.9% from Kshs60.4B to Kshs71.3B. Total non-interest income grew by 32.7% from Kshs19.4B to Kshs25.7B.

Net interest income grew by 10.9% from Kshs41.0B to Kshs45.5B. Total operating expenses increased by 10.9% from Kshs38.1B to Kshs.42.2B.

Cost Management

The Group reports excellent efficiency gains from the various initiatives to record a Cost-to-Income Ratio of 47.1% in FY2022 from 59% in FY2014 when we began our Growth & Efficiency journey.

Credit Management

This remains a key focus area, with the Group prudentially making provisions of Kshs.8.7B which has enhanced the Bank’s Loan Loss Reserve/Coverage levels to 74% from 69% in 2021.

A Strong Digital Footprint

Through our digital channel strategy, the Bank has successfully moved 92% of all customer transactions to alternative delivery channels, a 24-hour contact center, 542 ATMs, mobile & internet banking and over 17,000 network of Co-op Kwa Jirani agents.

We have successfully migrated our customers to the Omni-channel, integrating accessibility and user experience. Our Omni-channel interfaces online banking through personal computers, mobile phones and USSD availing our services to all customers through their preferred channel yet retain the same experience from wherever they are.

Key focus on digital banking, with the all-telco MCo-op Cash Mobile Wallet continuing to play a pivotal role in the growth of non-funded income with 5 Million customers registered and loans worth Kshs84.2 Billion disbursed year-to-date, averaging over Kshs.7B per month.

Over 170,000 customers have taken up the MSME packages that we rolled out in 2018, and 33,673 have been trained on business management skills.

Year to date, we have disbursed Kshs.25.4 Billion to MSMEs through our Mobile E-Credit solution. MSMEs are a critical part of economic recovery post-Covid and contribute up to 16.9% of our total Loan Book.

Our unique model of retail banking services through Sacco FOSAS enabled us provide wholesale financial services to over 484 FOSA outlets.

Subsidiaries

  • Co-op Consultancy & Bancassurance Intermediary Ltd posted a Profit Before Tax of Kshs1.01 Billion in FY2022, riding on strong penetration of Bancassurance business.
  • Co-operative Bank of South Sudan that is a unique joint venture (JV) partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) returned a profit of Kshs132.7 Million in FY2022 compared to a loss of Kshs421.7 million in FY2021, a 131% growth.
  • Co-op Trust Investment Services contributed Kshs. 208.1 Million in Profit Before Tax in FY2022, with Funds Under Management of Kshs.196.6 Billion compared to Kshs.189.2 Billion in December 2021.
  • Kingdom Bank Limited (A Niche MSME Bank) has contributed a Profit before Tax of Kshs. 803.8 Million in FY2022.

Environmental Social and Governance (ESG)

In 2022, the Bank embarked on an enhanced ESG roadmap to integrate ESG considerations into its operations with several key milestones achieved. These include:

  • Enhanced ESG governance to ensure that the Bank has effective policies, procedures, and practices in place to identify, manage, monitor, and report on environmental, social, and governance (ESG) matters that may impact the Bank’s operations and stakeholders.
  • Appointment of an ESG Champions Committee and establishment of a dedicated ESG Unit.
  • Appointment of ESG champions across the entire Group, representing all Divisions, Subsidiaries and Control Functions.
  • Approved ESG policy framework.

The Co-op Bank Foundation, the Group’s social investment vehicle, continues to provide Scholarships to gifted but needy students from all regions of Kenya. The sponsorship includes fully paid secondary education, full fees for University education, Internships and career openings for beneficiaries.

The foundation is fully funded by the bank and has supported 9553 students since the inception of the program.

Accolades

The Bank was recognized as ‘Best Overall in Satisfactory Customer Experience’ following a customer survey conducted by the Kenya Bankers’ Association (KBA).

This Award was based on a survey where 33,000 customers of all 38 member banks of KBA were asked to rank overall experience with their main bank. In addition, the Bank was similarly recognized with the ‘Excellence in Customer Experience in Digital Banking’ award at the Digibanking Event held in Nairobi.

The two awards re-affirm the bank as the financial institution offering the most fulfilling customer experience in the industry.

Co-op Bank meets Key Stakeholders to Launch the Smallholder Potato Development Program

Posted on by Kibaki Muthamia

It may be recalled how shocked Kenyans became when reports began filtering in the media last year January 2022 that the multinational food giant KFC has run out of ‘fries’ for customers following non-delivery of potatoes from their overseas suppliers.

That potatoes for consumption by Kenyans had to be imported was a major surprise amidst the perennial woe and cry by potato farmers especially in the potato-glut zone of Nyandarua for lack of market.

KFC was equally shocked by the sharp public rebuke, and together with other stakeholders have been working quietly behind the scenes to put in place mechanisms for a farmer-anchored sustainable supply chain for potatoes.

((From left) Esther Kariuki (Co-op Bank), Carol Mumo MUMO (Yara EA) and Dr. Kiarie Moses (Gvn. Nyandarua)

The project formed the ‘Potato Consortium’ that’s made of experts in the critical industry. This is to ensure that the value chain right from quality of seed to the farmer, financing and eventually to the food plate is consistent with the highest quality standards.

On Tuesday, March 7th, 2023, Co-op Bank met with key stakeholders to launch the Smallholder Potato Development Program.

The journey towards full local production for Kenya’s favorite meal, the potato fries, has begun!

Stakeholders present at the MOU signing

  • The Governor, Nyandarua County HE Kiarie Badilisha
  • Co-operative Bank Head of Agriculture Business Esther Kariuki
  • Agrico’s Corien Herweijer
  • Bayer East Africa’s Eunice Waithaka
  • Simplifine Ltd’s Steven Carlyon
  • Yara East Africa’s Carol Mumo

Objective: Transforming lives of potato farmers in Kenya

The consortium of likeminded companies that play within the potato value chain, is addressing current barriers that potato farmers face, by enabling access to affordable and quality inputs, credit and sustainable markets.

The partners within the consortium have developed modular solutions that will help farmers increase potato yields though the use of appropriate input packages;

  • Yara crop nutrition and soil testing solutions
  • Agrico PSA- provision seed varieties that are high yielding and appropriate for various uses
  • Bayer crop protection solutions.
  • The Co-operative Bank of Kenya will provide capacity building support to County Governments and Co-operative Societies to enable them form and run strong, efficient and well-governed potato Co-operatives. The bank will also provide affordable financing options for the farmers to ensure timely access to quality inputs, water, mechanization and post-harvest solutions.
  • Simplifine Ltd on the other end shall provide market access for the financed farmers by buying their produce.

The backbone of this will be capacity building on good agronomical practices, financial literacy, contractual literacy, et al, with agronomy support provided to assist farmers farm correctly.

The end of result of this is higher yields experienced by farmers, creating sustainable incomes for the farmers.

(From left) Esther Kariuki (Co-op Bank), Steve Carlyon (Simplifine) and Dr. Kiarie Moses (Gvn. Nyandarua)

Role of potato in Kenya’s Agricultural sector

Potato plays a key role and is among the top 5 important crops in Kenya, with approx. 450,000 acres of potato planted per year. The average productivity from studies conducted is 3 tons /acre, making it a loss making venture for farmers; industries within the potato value chain have growth limitations.

However, with the joint efforts of the partners in the consortium, the productivity can improve to average 14 tons per acre. With this contributing to food security and through consistent supply of potatoes, industries can grow.

Also Read: https://www.ghafla.co.ke/sponsored/my-campus-hustle-how-greed-for-smokies-made-my-business-fail/

Counties approached are:

Four (4) counties in the first half of 2023

  • Nyandarua
  • Nakuru
  • Elgeyo Marakwet
  • Nyeri

Target Estimate of Farmers:

It is our desire that by 2026, this partnership will benefit 30,000 potato farmers in Kenya, improving yields by 50% and reducing post-harvest losses by at least 50%, to spur prosperity for farming communities.

Key gaps will be addressed including agronomy, commercial and digital knowledge, access to finance and market.

Update on Co-op Bank’s strategic involvement in Agri-Business/Agri Co-operatives sector

Co-operative Bank is the leading Food & Agriculture financing bank in Kenya and working closely with like-minded partners and Agriculture value chain players is committed to significantly support the Agriculture and food systems transformation in Kenya.

Co-op Bank named ‘Most Customer Friendly Bank’ in the 2022 Customer Satisfaction Survey

Posted on by Kibaki Muthamia

The Co-operative Bank of Kenya has emerged as the Overall Winner of the Customer Satisfaction Survey conducted by the Kenya Bankers’ Association (KBA).

The survey was conducted by interviewing over 33,000 customers of all member banks of KBA. The results of this survey were released this morning at a media briefing hosted by KBA at the Sarova Stanley Hotel in Nairobi, where Co-op Bank was presented with a certificate of recognition for excelling in customer service based on the survey’s findings.

This award comes only two weeks after Co-op Bank was also recognized with the “Excellence in Customer Experience in Digital Banking” award at the Digibanking Event held recently, and re-affirms our position as the financial institution offering the most fulfilling customer experience in the industry.

The annual Customer Satisfaction Survey was initiated in 2018 as part of efforts being spearheaded by KBA towards enhancing customer experience in the banking industry.

Related: https://www.ghafla.co.ke/sponsored/co-op-bank-marks-38-profit-growth-with-ksh22-7-billion-profits-before-tax-in-3rd-quarter/

The 2022 survey was conducted amid the clamor for enhanced support towards economic recovery. Although the impact of COVID-19 on the economy had abated significantly in the year under review, the pandemic’s adverse effects continued to linger in the economy, necessitating individual and collective strategies towards maintaining high product and service standards.

With its high response rate, the 2022 survey provides invaluable insights that will undoubtedly inform policies towards enhancing financial inclusion for the country’s highly dynamic and diverse banking public through fact-based innovation.

Dilemma: How do I Apologize to My Parents for Missing Top Grades?

Posted on by Kibaki Muthamia

My 14-year-old niece is the firstborn in my brother’s family. She feels immense pressure to excel in academics, due to an overly-achieving family.

Both parents are pursuing doctorates in their respective fields.

Her father is a physician, and her mother has built a solid reputation in law and governance. Both teach part-time at public universities.

She’s called Naomi, and has just received her 2022 KCPE results. She missed the elusive ‘400 mark’ by 45 points.

Man, she is devastated. I’d understand why.

My brother is stern, strict and pushes for excellence in everyone around him. Lots of times at the cost of personal freedom and friendship.

Burdened with a busy schedule, Naomi’s parents would miss most of her school’s parent-engagement events.

I’d often be the parent at Naomi’s top-rated private boarding school. It did not come cheap. Often, her father would remind her of ‘How expensive that school is’ and, ‘Set a good example to your brother’.

The younger brother is in 6th grade – and cared little if she scored A’s or E’s.

Poor Naomi performed well throughout, but this kind of pressure robbed her of her dream marks at her final exams.

At this point, she was not overly anxious of the kind of high school she’d attend, but struggling under an overwhelming feeling of failing her successful parents.

Worse, her cousin in a derelict, poorly-staffed and equipped day school had beaten her by 20 marks – at a fraction of the cost!

Naomi had a shocker question for me: How do I apologise to my parents for failing my exams? 

I stuttered a little, and thought of three possible answers:

  • You Come First

Please congratulate yourself. You are mature enough to know that a personal failure may affect other people. Like, not attaining a grade may hurt your parents. That’s something.

Apologise to yourself, too – for messing up your peace of mind.

It’s all about you, not other people. This is a personal milestone, the first – and the success of shortcomings do not overly affect other people. Just their expectations of you.

At this point, you come first. Are you happy with the results? Sad or disappointed? The lessons lie in what you feel about the results – not the actual results. If you gave your best, walk tall and be proud.

If not, there will be new opportunities to make amends.

  • Failing is Part of The Journey

It’s ok to fail. We don’t always succeed. Sometime we fail also.

But we should never lose our hope. Failing a test doesn’t mean that you are an idiot and know nothing or haven’t studied anything.

You studied but you still failed in the test only means that your mind couldn’t grab the things easily like the other people. Just a little more hard work and focus than before turns it around.

Failing at something gives you some kind of boost to do much better than before. But some people don’t think like that. We should have positive thoughts regarding things. Then only, we can live this life happily.

You will be fine.

  • Parent’s Love Can Be Stern-Faced 

Your parents are the only people in the entire world who actually want you to be better than they are. They love you unconditionally, no matter how strict they are.

They are concerned about you, and perhaps upset and could mistake a low grade with irresponsibility. Go talk to them.

Face this situation with pride, it’s your life, you are responsible for it. Even if you struggle because of the results or because of your mistakes, it’s still you who will suffer, so ultimately the words from your parents should not affect you.

Say: “I failed, not because I didn’t do enough, or because, what I did wasn’t enough. It’s my life’s failure on one front, I will come back stronger and better.”

Show them some commitment to improve, and be better.

Now, fellow parents – listen up.

These situations are not solved with one-off pep talks. Students need constant assurance by deeds and overall commitment to their wellbeing.

One sure way, is timely payment of school fees and upkeep for them besides demanding job schedules.

Co-op Bank avails a convenient way of paying school fees directly into the school’s account through MCo-op Cash, M-Pesa PayBill 400222, or a Co-op Kwa Jirani Agent near you.

Immortal Teacher: How a Simple Trick led to Straight A’s in Math

Posted on by Kibaki Muthamia

There is a ‘Word of the Day’ feature on my phone’s Dictionary App that pops up a random English word.

Today, the algorithm gods said: “Dyscalculiais“. Is that even English?

It’s a medical term for a learning disorder that affects a person’s ability to do math. It affects brain areas responsible for math- and number-related skills and understanding.

I was floored by this revelation, but also a tad skeptic.

A memory from a particular math lesson in my school days came up. An episode that thawed my very complicated relationship with math from pure torture and terrible grades to a likeable disposition with good grades.

I had never before attained ‘Average’ in math.

My high school had a progress evaluation system. Basically, exams and more exams: Opener, Mid and the Final Exams. The Openers’ served the biggest challenge.

A nasty jolt to slap us out of the holiday moods. This episode happened in Form Two, after the Easter holiday.

We started with the dreaded math paper. It’s a tough fifty-question paper rounding off to a hundred marks. I breeze through it with trepidation, like a pirate condemned to walk off the plank at sea.

I knew I would flunk it, and I did. What with much of the holiday reading novels and watching TV?

The results were out by the evening preps. As was custom with our math teacher, quite empathetic and insanely patient – he’d read the top and the lowest score, but not mention the names. Morale, I think.

Someone had punched in an incredible 98%, and the lowest came in at a partly 19%.

I didn’t know who led but I knew I the 19% was mine. But, for a minute there, we giggled in the back rows speculating on which idiot had probably scored 19%.

My desk mate had managed a 76%, and said he felt dumb. Really? Dumb with a 76%? What adjective would I use to describe my 19%?

I was pretty miserable.

Did I mention that our math teacher also doubled as our class teacher? He had absolute powers, first among them – to shuffle us around the class.

Who sat where, and with whom?

He announced that the top would be paired with the lowest scorer. Before I could say Abracadabra, I had moved from the back to the front row. It was the least favorite position. If you dozed off in the back row, most teachers would chuck a piece of chalk at you.

The front row? That’s within slapping distance!

Barely do we settle in, than the teacher unleashes the next shocker.

Henceforth, each pair would tackle math problems on the board. The top grade, would lead the lowest in a step-by-step tackle. What?

In the history of my schooling, I had never volunteered to work out a math problem on the board.

I had a problem, but, hey – a pirate has to walk the plank, right?

What followed was an agonizing few weeks, each a degree worse than the other.

I realized that I was ‘dragging’ my partner. She was kind, but I was fast wearing down her patience. Eventually, we worked out a system.

Each night, we’d use half an hour of preps going over the following day’s assigned math problems.

I started getting correct answers on the board. The kids would clap, for everyone – but the claps were louder for me. I was getting better in math!

Who could have thought it’s possible? My confidence grew, I grew bolder and opened up to math.

I’m eternally grateful to my math teacher and my tag-team partner. I have no clue where they are, or doing presently but I still feel indebted to them.

Besides math grades, they helped me develop a positive mindset towards tackling obstacles in life.

As we prepare to get back to class, do your kids struggle with math? Focus less on the mountain of homework and more on attitude.

Also, a conducive study environment, and especially not having to worry about the safety of their pocket money.

Take advantage of Co-opPay, a pre-paid Visa Card from Co-op Bank tailored for use by students.

With Co-opPay, a parent loads pocket money remotely, and access instant tracking of the spending.

The student can shop with the card at their canteen, malls – or, withdraw money at ATM’s. Besides, being safe and convenient, it attracts no extra charges.

Christmas Blues: Father-in-Law’s Text Message That Broke My Heart

Posted on by Kibaki Muthamia

I married the firstborn in a huge family. My wife is often the de facto parent. The uncelebrated head of a chaotic chain of command.

Always, she’s either an emissary of good tidings or a benevolent, tireless mediator when conflicts arise between her siblings and their folks.

Firstborns deserve an automatic spot in heaven.

Beginning of December, she received a text message from her father. The old man rarely texts – or calls. He’d often delegate such minor roles to my mother-in-law.

If he did, chineke – the mountain has shifted. Or, about to shift.

“Hello Mama. I hope the city is kind to you all. Kindly tell everyone not to bring us any Christmas gifts this year. Kujeni tu tupige sherehe mama.”

‘Everyone’ meant my wife’s six siblings, and their children. Tradition over the years meant a family get-together over Christmas season.

Like clockwork, we’d descend on the village laden with gifts and rental cars. A desperate attempt at redemption for missing out for most of the year.

I recalled random conversations with my father-in-law. After every trip, old man’s remarks branded it all as ‘unnecessary’.

At the time, I thought it was a modest reference to a stable retirement. I was wrong.

The text was a cryptic message. They loved gifts, sure – but, not the kind we brought!

Like, of what need are decorative things? They no longer needed, or had space to display fancy, Chinese crockery!

A dozen grandkids would bring food. Boxes of roast ham, goat ribs and even pizza! Poor parents would be tired of meat and processed foods in a few days.

Crates of fruit arrived once. Mzee held an orange with a grocer sticker on it, and said:

“If this wasn’t so perfectly colored orange, I’d swear it came from our shamba”.

We had laughed it off as a joke, and missed the message. They had an orchard, for crying out loud!

A granddaughter would bring Grandma bouquets of flowers. They made her sneeze, so she’d lock them up in a spare bedroom till they died so she could throw them out.

We need to do different gifting this year.

While elderly parents can be picky, get something they like, or actually need. A thoughtful gift need not be large, or expensive.

I have some suggestions.

Perhaps, pay off one of their bills for a few months in advance. That’s great. It spares a bit of their own money to spoil themselves.

Or, why not take them shopping? That’s a treat – have mum pick groceries and pay it off. Or, treat your father to a jersey of his favorite football team.

Do they like a drink on their patio to watch the sun set? Get a bottle of something premium.

I logged online and paid an annual subscription for my father-in-law’s favorite magazines, and daily newspapers.

The old man’s favorite hobby is filling cryptic crosswords – I bought a 365-page puzzle booklet. A crossword puzzle a day, year round. I paid it all easily, with my Co-op Bank ATM card.

I saw once saw mother-in-law knit, by the fireplace. I asked my wife if we could buy her some knitting thread.

No, she says. She lost interest in that hobby.

“All she does is nag my dad, all day on Dolby Surround……”

I burst out laughing.

As you prepare to travel upcountry and other places for the festivities, there’s no need to carry cash around. That’s risky, and you’ll be more likely to spend on unnecessary stuff.

A Co-op Bank ATM Card or payment via MCo-op Cash App gives access to fast and secure payments at no extra cost.

Anything from fuel to travel and accommodation bookings or grocery shopping treats – anything is possible.

Merry Christmas. Bring thoughtful gifts!

Adults and Food: Embarrassing Moments at an All-You-Can-Eat Buffet

Posted on by Kibaki Muthamia

I got my first buffet experience when I was twelve. It was mildly embarrassing, but served serious lessons on humanity and social skills.

My father took us for a Chrismas Day treat at a fancy restaurant along Banda Street. It was a kid’s affair – my five cousins and I.

My cousins thought it would be fun. I knew my father well enough, but I kept mum.

The restaurant was decked out in colored lights, a gigantic Christmas tree with a flashing replica of the Star of David at the peak. It was not faux cedar. I still recall it’s aromatic smell to this day.

We waltz in. Father is up ahead, with us in a single file behind him. Think of mother duck and her ducklings. He raises his hand – the STOP signal.

He turns – and, beckons us closer. Like a soccer coach’s last minute prep talk to his players before a crucial match.

In a conspiratorial half-whisper, father says:

“Hey, kids – we don’t eat chicken in restaurants. Your mums are cooking at home. Ok? Pick what I pick, and nothing more.”

Turns out that the restaurant had a special All-You-Can-Eat buffet offer for Christmas Day. For a standard price, a guest could eat all they could.

Already, there was a line at the buffet table – open dishes with silver tongs. We joined the line, father up ahead.

Except, it seemed that father didn’t have his usual appetite. At the start of line, he picked a slice of watermelon, and pineapple. A single scoop of Pilau, skipped the bowl half-filled with diced Chapati – dipped for a single scoop of meat stew.

Father made sure we skipped the Chapati.

The line was not moving. Father wheeled us around the bottleneck, a couple of adults – visibly agitated to the end of the line. Some seriously spicy Kachumbari.

We found an empty table. We were disappointed. Who skips Chapati? At that moment, father scored dismally in the popularity ratings.

Father spent a few minutes watching us nibbling at fruit slices. He tapped his plate – signal for LOOK UP – and pointed with his lips at the buffet line.

“Listen up, kids. Do not be that, when you grow up.” Father says.

The buffet line’s bottleneck. A couple of guests were mobbing a few bowls like a pack of seagulls.

The bowls had the best offerings of the buffet: Chicken wings, grilled ribs and pork chops. We watched.

A lady, quite well-dressed with an handbag clutched under an armpit, shouldered away two men to emerge – with an overloaded plate.

She had a plate balanced high with chicken wings, meat stew dripping off the side – and, two grilled ribs in her spare hand.

“Kids, the buffet shall always test your self-discipline. A buffet can easily show a person’s lack of shame or compassion for one another.” Father says.

We soon lost appetite, the more we watched how people behaved on the buffet table. Every so often, we saw somebody grab something from the tray with their hands instead of the tongs.

Or, someone in the line sneezing – no handkerchief.

The Chapati bowl – a dude picked a few pieces, decided they are taking too much space on plate and chucked them back.

Suddenly, father called for the bill. He offered to pay using his Co-op Bank ATM card. He rarely carried cash.

This festive season restaurants, family and corporate events will have a buffet-style food layout. It’s a prudent learning opportunity for the young.

As you go out for meals and trips, have an eye for money-saving tips and offers to save money.

Like father, for instance.

He rarely spent money he didn’t plan for. In end-month shopping trips, he would ask mother to prepare a shopping list, and they’d discuss it against their budget.

And, always – used his Co-op Bank ATM Card to pay.

Father would always insist on eating first in the house before these shopping trips. It’s a trick to avoid spending money on snacks, if we went shopping hungry.

To make the most of this Christmas season, visit the nearest Co-op Bank branch – open an account and receive your ATM card.

It is a Visa Debit card and you can use it for cashless shopping at no extra cost.

Merry Christmas!

Co-op Bank marks 38% Profit Growth with Ksh22.7 Billion Profits Before Tax in 3rd Quarter

Posted on by Kibaki Muthamia

Co-op Bank Group is pleased to report a Profit Before Tax of Kshs. 22.7 Billion for the third quarter of 2022.

That’s a commendable 38% growth compared to Kshs. 16.5 Billion recorded in the third quarter of 2021.

This means, Co-op Bank has a strong Profit after Tax of Kshs. 17.1 Billion compared to Kshs. 11.6 Billion reported in 2021. The performance delivers a competitive Return on Equity of 23% to our shareholders.

The strong performance by the Bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility.

Support to the Fundraising Appeal to Fight Hunger

Co-op Bank Group wishes to join other Kenyans and indeed the global community of goodwill in fully supporting the Fundraising Appeal initiated by His Excellency the President, with a key contribution of Kshs.150 Million.

This is in support of relief efforts aimed at assisting families affected by the severe drought ravaging various parts of the Country.

Key Performance highlights;
1. Financial Position:

The Group has registered sustained growth as follows;

  • Total Assets grew to Kshs. 622.1 Billion, a 5% growth from Kshs 592.9 Billion in the same period last year.
  • Net loans and advances grew to Kshs. 335.2 Billion, a 9.4% growth from Kshs.306.3 Billion in 2021.
  • Customer deposits grew to Kshs 432.0 Billion, a 3% increase from Kshs.420.4 Billion.
  • External funds from development partners stands at Kshs 41.9 Billion from Kshs.43.8 Billion in 2021.
  • Shareholders’ funds have grown to Kshs. 100.9 Billion, a 6.2% increase from Kshs. 95.0 Billion in 2021.

2. Comprehensive Income

This is a 3-pronged approach:

  • Total operating income grew by 17.6% from Kshs 44.4 Billion to Kshs 52.2 Billion.
    Total non-interest income grew by 28.3% from Kshs 15.7 Billion to Kshs 20.2 Billion.
  • Net interest income grew by 11.7% from Kshs 28.7 Billion to Kshs 32.00 Billion.
  • Total operating expenses increased by 6% from Kshs 28.0 Billion to Kshs. 29.6 Billion.

3. Cost Management

Excellent gains from our various initiatives with a Cost to Income ratio of 45.8% in Q32022 from 59% in FY2014 when we began our Growth & Efficiency journey.

4. Credit Management

This remains a key focus area that has achieved key milestones. The Group prudentially provided Kshs. 5.7 Billion compared to Kshs 6.0 billion provided in 2021, pointing to an improvement in the quality of the asset book.

5. A Strong Digital Footprint

Through our digital channel strategy, the Bank has successfully moved 94% of all customer transactions to alternative delivery channels, a 24-hour contact centre, mobile banking, 550 ATMs, internet banking and a wide network of Co-op kwa Jirani agents.

We have successfully migrated our customers to the Omni-channel, integrating accessibility and user experience.

Our omnichannel interfaces online banking through personal computers, mobile phones and USSD availing our services to all customers through their preferred channel yet retain the same experience from wherever they are.

6. Subsidiaries

A great part of the success story arises from subsidiaries across the region:

  • Co-op Consultancy & Bancassurance Intermediary Ltd posted a Profit Before Tax of Kshs 772 Million in Q32022, riding on strong penetration of Bancassurance business.
  • Co-operative Bank of South Sudan that is a unique joint venture (JV) partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) returned a profit of Kshs 190 Million in Q32022 compared to a loss of Kshs.104 million in Q32021.
  • Co-op Trust Investment Services contributed Kshs. 141 Million in Profit Before Tax in Q32022, with Funds Under Management of Kshs. 202.6 Billion compared to Kshs.187.1 Billion in September 2021.
  • Kingdom Bank Limited (A Niche MSME Bank) has contributed a Profit before Tax of Kshs.609.2 Million in Q32022 compared to Kshs. 413.1 Million reported last year representing a 47% Growth year-on-year.
    Environmental Social and Governance (ESG).

The Group was named Overall Winner at the Kenya Bankers Association Catalyst Awards held in September 2022.

The awards recognize organizations that exemplify their sustainability prowess though promoting catalytic finance that impacts industry, economy and society.

This latest win is the third in five years, having won in 2017 and 2019, ranking Co-op Bank as Industry Leader in Sustainable Finance in Kenya.

Co-op Bank Foundation, the Group’s social investment vehicle, continues to provide Scholarships to gifted but needy students from all regions of Kenya. The sponsorship includes fully paid secondary education, full fees for University education, Internships and career openings for beneficiaries.

The foundation is fully funded by the bank and has supported 9553 students since the inception of the program.

7. Accolades

The Group Managing Director & CEO Dr. Gideon Muriuki was honoured with the award of a third Doctorate degree by the Africa International University in November 2022.

The Citation for the degree award noted his illustrious career in banking, his historic turnaround of Co-op Bank, his destiny-defining contribution to the co-operative movement and an enduring commitment to sustainable finance in Africa.

Trade Finance: The Secret to Grow, Revive a Struggling Business!

Posted on by Kibaki Muthamia

Trade Finance refers to an external source of working capital finance. It is a form of short-term credit typically used by companies that export or import goods.

It’s usually secured against goods, or backed by an insurance policy.

In Kenya, Co-operative Bank has demystified trade finance for their business customers, by availing various instruments.

These instruments are:

  • Bid Bonds
  • Letters of Credit
  • Performance Bonds
  • Custom Bonds
  • Advance Payment Guarantees
  • Credit Guarantees

What business solutions does Co-op Bank offer?

  • LPO Financing
  • Bills Discounting
  • Invoice Discounting
  • Post Import Finance/Import Duty Finance
  • Supply Chain Finance/Distributor Finance

What benefits does Co-op Bank clients enjoy

  • Quick processing time
  • Manage risk and negotiate credit terms
  • Flexible repayment period
  • Secure work permits for foreigners working for your business
  • Unsecured Trade Facilities

What Requirements are needed to secure Trade Finance with Co-op Bank?

  • Duly filled application form
  • Tender advert (where applicable)
  • Copies of the Company Directors’ IDs and KRA PIN Certificates
  • Company’s KRA PIN Certificate, Tax Compliance Certificate, Articles of Association and MOU, and Certificate by Registrar of Companies (CR12).
  • Latest bank statements (minimum 12 months) for other Bank Accounts held by the company and related companies.

There are alot of opportunities up for grabs. This facility is available to customers, at all Co-op Bank branches countrywide. Visit to talk to an agent, or check online to learn more.

My Hustle: To Quit High-Salary Job to Almost Starve in a New Business

Posted on by Kibaki Muthamia

What’s your opinion on the perfect job?

While people desire and actively chase different jobs it’s all grounded on the premise of stability and financial goals.

How do you explain a scenario where a well paid employee in a stable career suddenly quits to found a start up? It’s crazy.

Take the case of Nduta, now in her mid-30’s.

She’s married, with two kids in primary school. She’s spent a decade, climbing up the ladder in the human resources department of a middle-tier firm.

The job pays well – the family lives in the suburbs, good schools, drives a decent sedan and an annual vacation.

It’s an easy job. What makes it easy is that she walks out of the office exactly at 4pm. She works Monday to Friday, accumulates leave days.

She doesn’t get work emails and texts over weekends, or asked to attend any Zoom meetings. She can call in sick, if need raises – which is often for a young parent.

Nduta is content and happy at her workplace. But, suddenly, an uncontrollable itch bites.

She wants to brand herself differently. There’s more to life than just a 8 to 5, right? She starts to believe, inspired by her earlier challenges to refurbish and decorate her house. She had imported all her materials.

Could I not bridge the gap, with the importation of cutlery and interior decor fittings?
Nduta does some basic internet search on requirements, then quietly registers a firm.

Then, she quits her job.

Her husband thought she was bat crazy. How could you? It didn’t help much that she had little to support her business idea, well – other than a ‘gut feeling’.

To her, it felt much getting a new baby. In every aspect, it was exactly like having a baby. She gave alot of hours, weekends, late night calls and texting….

It took alot to get the new business going. Sometimes, she’d even forget her children’s birthdays!

There were lots of dry spells, zero business.

Nduta would use these spells to invest in herself. She started attending business forums and building networks. She learnt the skills and tricks of trade.

It’s in a trade forum, Nduta gained the solution for her major headache – CAPITAL. She learned about trade finance.

Now, she’s in a position to handle large orders, and has gainfully started seeking big tenders with county governments.

Trade Finance refers to an external source of working capital finance. It is a form of short-term credit typically used by companies that export or import goods. It’s usually secured against goods, or backed by an insurance policy.

In Kenya, Co-operative Bank has demystified trade finance for their business customers, by availing various instruments.

These instruments are:

  • Bid Bonds
  • Letters of Credit
  • Performance Bonds
  • Custom Bonds
  • Advance Payment Guarantees
  • Credit Guarantees

In this regard, Co-op Bank has made local and international business flow easier, by offering crucial business solutions.

These include:

  • LPO Financing
  • Bills Discounting
  • Invoice Discounting
  • Post Import Finance/Import Duty Finance
  • Supply Chain Finance/Distributor Finance

Well, trade finance business solutions is available to Co-op Bank customers at all branches countrywide.

Visit a Co-op Bank branch, or click here to learn the benefits and requirements needed to secure this funding for your business.

Co-op Bank Named Best Overall at Kenya Bankers’ Association Award Gala

Posted on by Kibaki Muthamia

Co-operative Bank celebrates winning a prestigious award, recently being named Overall Winner at the Kenya Bankers Association (KBA) 2022 Sustainable Finance Catalyst Awards.

The Awards were created to recognize institutions that practice sustainable finance which has a direct positive impact on the financial sector, the economy, the environment and the society at large.

Sustainable Finance Principles require financial institutions to balance their quest for financial returns with the economy’s future priorities and social-environmental concerns.

In addition to scooping the overall title, Co-op Bank also won in specific award categories that include being named as the Most Innovative Bank in Sustainable Finance and the Best Bank in Financing Commercial Clients.

Equity Bank emerged second overall and KWFT third. The selection exercise took three and half-months, with 43 entries submitted by 16 financial institutions.

This is the third time in five years that Co-op Bank has emerged victorious in the sustainable finance awards, having won the overall title again in 2017 and in 2019.

The latest award adds to other recent recognition Coop Bank has received for the strong credentials in Sustainable Finance and related sustainability practices.

The bank was named as Best Bank in Sustainable Finance in Kenya at the 2019 Energy Management Awards hosted by the Kenya Association of Manufacturers and also named Overall Winner in Environmental Sustainability Report at the 2019 East African Financial Reporting (FiRe) Awards.

Businesses were appraised on whether they have covered the essential indicators which included the impact to the Gross Domestic Product (GDP), the growth of the business, job creation and support of minority groups including women and the youth.

In respect of the award, Co-op Bank has released a citation:

Co-op Bank emerged winner as a result of building a sustainability strategy that enables people, businesses and society to grow in a way that is sustainable in the long-term.

The awards showcase firms that demonstrate a progressive stance in integrating sustainability practices in their respective institutions.

Commenting on the recognition, the Group Managing Director & CEO Co-operative Bank, Dr. Gideon Muriuki;

“Sustainability is fully integrated in our business model that stands on the three pillars of Economic sustainability, Social sustainability and Environmental stewardship.”

“As a bank that is predominantly-owned by the 15 million-member Co-operative Movement, we are inclusive by design that has not only enabled us to deliver shared prosperity today, but also helped us build an awareness and prudence to avoid putting future generations in jeopardy.”

Co-op Bank awards in other categories include;

1. Most Innovative Bank
2. Best in Financing Commercial Clients
3. 1st Runners up – Best Sustainable Finance
4. 1st runners up – Best in Covid-19 Response
5. 2nd runners up – Best in MSME Financing.

Meanwhile, Co-op Bank has unveiled an ambitious 100% financing loan package for used cars.

Car Shopping: Do you Pick Manual or Automatic Transmission?

Posted on by Kibaki Muthamia

When making the choice to purchase a particular car, the gear set up plays a huge role. The choice plays between a manual and automatic transmission.

Each choice has advantages driving it, but it largely depends on the buyer.

Automatic transmission do the engagement and dis-engagement of the clutch on its own. It selects the appropriate gear according to the driving conditions. The driver just has to select whether he has to go forward, reverse or park his car.

In a manual transmission car the driver has to engage and dis-engage the clutch on his own and has to select the gear according to the way he drives.

There are different forward gears rated for different speed. Most modern car have 5 forward gears and 1 reverse gear.

Most car brands in Kenya have either modes in each of their models. What, then, influences the choice between the manual and automatic versions for the buyers?

Presently, the automatic car has gained popularity. It presents lots of advantages – but, not necessarily better.

Automatics cars are comparably easier to drive, demands less driving experience. Moreso, in city scapes with frequent traffic jams, and in the hills – it’s not a walk in the park driving bumper to bumper on a slight incline.

Besides, automatics are extremely reliable with minimal maintenance – no clutch to fry or wear out with inconsistent shifting.

Manual cars build up a strong counter attack in analysis. Manual car driving is definitely more fun. There’s more of a “driver feel”.

You can control shifting better, presenting an ‘all-round feeling of control’ – which, incidentally – appeals to car fanatics and first time car owners.

Besides, the convenience factor comes into play. Manual cars can be started even with a dead battery, by a method referred to as jumpstarting.

Manual car drivers brag of a slightly better fuel economy, and with enthusiasts with access to engine tuning and mods – a better acceleration.

The latter argument (acceleration) depends with the model, though – and, nature of the build – a sports car presents better acceleration than a family van, for example.

Manual cars pale in popularity by the virtue of human skill and experience needed to perform well.

Like, city driving is an hassle. Unlike an automatic, the mental work that your mind does for understanding and deciding what gear to keep the car in to prevent stalling weighs on the driver.

Also, getting the best mileage on fuel economy is dependent on the driver’s experience.

Automatic cars absolves the driver of that headache, especially on long, tiring drives.

For what it’s worth, either transmission in a car doesn’t overly affects performance. This bears on the driver’s experience, and aptitude. It’s prudent to practice on both types of transmission before making a purchase.

The dream of owning a car is now so much easier, thanks to a financing deal on pre-owned cars unveiled by Co-operative Bank.

It’s quite simple – anyone with an income can walk into a second-hand car dealership and make a choice – then, source financing from Co-op Bank.

It’s a loan with a flexible repayment period between 60 and 96 months and targets pre-owned cars less than 8 years old.

It attracts only 13% interest, and the vehicle being purchased acts as the security.

Requirements include:

  • Applicant’s ID and KRA PIN Certificate
  • Letter of Introduction from the employer
  • Latest 3 months’ certified Pay slips
  • Latest 6 months’ bank statements (if you’re not banking with us)
  • Copies of employment contract, or letter of appointment
  • Motor Vehicle Sales Agreement/Proforma Invoice
  • Copy of Logbook/Import Documents/NTSA search records
  • Original valuation report from approved valuer in the Bank’s panel

Once you visit a Co-op Bank branch, you’ll get an application form – fill it and attach necessary documents.

Click here, to learn more about Co-op Bank pre-owned car financing loan. It’s time to fulfill that dream to own your car!

Buying a Secondhand Car? The 10 Key Points to Check Before Purchase

Posted on by Kibaki Muthamia

Let it be that time comes – as it always will – that you get to own a car. It’s a milestone of sorts, often achieved with great sacrifice and meticulous planning.

A bit of research gets you settled on a relatively used model, instead of a brand new one. It makes better financial sense.

In a sea of used-car options, it get mind boggling picking the right one. It doesn’t help that dealers and salesmen hover around a buyer like sharks angling for a kill.

It’s easy to be led into buying a rust bucket.

Once you identify a prospect, it’s prudent to seek the expertise of a certified mechanic for the particular brand, with enough experience for the test drive.

Here’s a tentative list of 10 vital boxes to tick in your car quest:

  • Registration Documents

First check if all the papers are cleared, and owner have all the papers. Insist on hard copies – not just virtual copies. A lot of times, the car may have financing terms attached, be sure to verify any loans are cleared.

  • Engine

Every car’s heart is the engine, so first start with the engine. Try to check it early morning while the engine is cold. At this time, any problems with starting are easy to spot.

How much time or trials does it take to start the engine, Then, turn off engine and restart again. Do it at least 4–5 times. If there’s a hard start, take note of a dying starter or battery.

  • Engine Noise

Is there a noticeable noise in the engine? Here’s a good reason to seek opinions of a experienced mechanic.

Take the engine to the extreme – like, press acceleration to the 3000–4000 RPM mark. Listen for engine noises, rattling or shaking. An engine with worn mountings easily shows.

  • Smoke

Check if engine emits a black or white smoke. White smoke – possibly due to turbo failure or other reasons as well, black smoke – engine repairing need.

In some cases, fuel sensor failures manifest in irregular smoke emissions. So check with the owner if engine is tuned well and all sensors are working perfectly.

  • Oil Leaking

An oil leak speaks lots about an engine. Perhaps, it’s been opened up, or replaced. Also, gaskets and oil seals may need replacement if oil leaks from any part of engine or inside the hood.

Does the engine show signs of a recent scrub? That could be a sign of hiding an oil leak.

  • Electrical Parts

It’s prudent to check every electrical component of the vehicle. Whether they are working, or needs replacement.

This includes: Headlights and indicators, seat belt warning sensors, windshield wipers, power windows, side and rear view mirror adjusters, sunroof mechanism, and so on.

  • Instrument Cluster

Turn on the key, check the instrument cluster for any warning lights. Probable warnings to look out for include: Battery sign (low or defective battery), Defective alternator, Engine oil sign, ABS (Anti lock breaking system), Airbag Sign, EPS (Electronic Power Steering), and so on.

It may require a computerized diagnosis done to resolve some of these pop ups.

  • Interiors

How is the interior? This is the easiest sign to show an abused car. An astute owner keeps a clean, well kept interior devoid of torn seats and linings.

Is the dashboard, seat fabrics, door liners, seat covers in good condition? Stained? Torn? That gives an overall care acumen of the previous owner.

  • Exteriors

Does the car show dents and scratches? Are their parts of the car that need paintwork? Is there a color difference on some body parts?

If there is, take note of undeclared accidents, and abuse. If the car has been overly exposed to weather elements, be mindful of costly paintwork a few weeks down the road.

While at it, examine headlights and tail lamps. In what condition are they, do they need replacement, cleaning or complete restoration to optimum condition? That means extra costs.

  • Tyres

Depending on type of car, and intended usage tyre condition is a vital area. Tyres should be in relatively good condition. Do they have noticeable treads? What’s the brand? Generally, generic brands means replacement a few weeks later on.

How are the rims, and their sizes? It depends – urban usage may do fine with smaller rim sizes, while offroad requires bigger sizes. If the car has alloy rims, be keen to spot possible cracks or bends.

You don’t want a situation that gets you purchasing costly alloy rims after you take ownership.

Purchasing a car is quite financially exhausting, and has been beyond reach for many people.

Previously, bank financing has been confined to brand new cars. Co-op Bank has unveiled an incredible financing package on Pre-Owned Cars.

The bank offers to fund you up to 100% for a pre-owned motor vehicle. It’s a low-interest loan, at 13% interest with a flexible repayment period of between 60 and 96 months.

What’s more? One doesn’t need to be a Co-op Bank client to access the pre-owned car financing facility.

As soon as you make your choice of model in a second-hand car dealership, walk into a Co-op Bank branch and speak to a representative.

Follow this link to learn more about Co-op Bank Pre-owned car financing terms.

Thrown From the Nest: Moving out Ignited Business Spark for Car-wash Entrepreneur

Posted on by Kibaki Muthamia

While human beings are generally wired differently, Tony believes the Creator went a yard further on him. From childhood, his mother would often remark of him ‘being too grown up’ for his age. He was different.

Tony didn’t like playing estate soccer or hang out with his peers. He couldn’t find anyone in his circle who liked crossword and jigsaw puzzles enough to make a friend.

Despite growing in a relatively comfortable middle-class household, the urge to move out hit as soon as Tony did his high school papers. His mother flat out refused. He couldn’t explain why, but – to be honest – he didn’t know why.

To her chagrin, he moved out – to a tiny bedsitter on the outskirts of town.

The house was quite bare – his old mattress, a kerosene stove, two pots and a few bowls. He’d picked a few oranges off his mother’s fruit rack. As Tony sprawled on the mattress, chewing an orange – he realized it’s the freedom! He was an adult, finally!

Well, just a week in – it dawned on what adulting is all about.

See how people learn to swim, starting slow? Some exercise on dry land – breathing exercises – starting on the shallow end to polish skills till you can strike out on your own? Moving out is nothing like that.

It’s more like jumping in a pool without being able to swim, but you don’t know you can’t swim until you hit the water. You thought you had it all figured out (I mean, how hard can it be, right?), and before you know it, you’re waving your arms around not knowing what to do.

Tony needed stuff. Food to eat. Soap for laundry. Some oranges not from his mother’s fruit rack. While he’d never liked TV in his family home, he started missing the background noise. To walk back home was not an option. No, he couldn’t face the silent I-told-you-so’s in his mother’s eyes.

Tony walked to a car wash lot in the neighborhood, asked for the manager – and asked for work.

“Ah, alright. You start tomorrow…” Says the guy, sitting on a tall wicker chair.

The car wash was ran on an interesting business structure. Tony wouldn’t earn a salary, or wages – instead, he’d solely source for his clients. He’d work on their cars – and, he’d pay a modest Ksh100 to the manager for every car.

No one cared how much he charged per car. There were a few other guys hanging around.

Tony was new. He didn’t have any ready clients. That’s where his mother came in. He called her, broke the news and asked to clean her car. Trust maternal love, she drove across town – his son’s first client.

As she paid and tipped – perhaps, too heavily – Tony coaxed her to bring him her friends.

Tony was shoddy at first, but as he gained experience so did his client base grow. He built a reputation for his consistency, and honesty. Suddenly, he had too many clients to handle.

At this point, Tony had to learn something new: Polish his people skills – as the need to outsource labor arose.

As soon as the car wash opened, he’d approach a few friends – and coax them to accept some of his clients. He’d be getting a cut, acting as the car-wash agent. It worked. The idea flourished, money started flowing in.

He’d throw in client bait like wax polish and car interior scents at no extra cost to the client, on their 3rd visits.

It certainly felt good earning money. There’s such excitement buying new stuff! A few weeks back, Tony wouldn’t think of himself running a bank account. Now, he had an active personal and business account at Co-op Bank account.

For a budding entrepreneur, a Co-op Bank account works perfectly – thanks to MCo-op Cash, their innovative banking app. It’s much easier to deposit money direct to bank account, and to track daily spending.

Oh, checking account balances via the app is free!

MCo-op Cash brings convenience to transfer money from account to account or from bank account to a mobile money accounts. Besides, one enjoys access to other global money transfer solutions like Pesalink, Remitly and others.

To register dial *667# or download MCo-op Cash app on Playstore for Android, or Applestore for IOS.

My Campus Hustle: How Greed For Smokies Made My Business Fail

Posted on by Kibaki Muthamia

My first business venture came around in campus, second year. It was nothing meticulous, or well thought-out. I just chanced upon a couple of seniors disposing stuff weeks to their final exams. It’s a regular comrade thing, to pass off campus ‘survival tools’.

Assorted comrade stuff was on sale, from weathered printers, dart boards, blenders to some quite ageless Pentium 4 computers.

I’d purchase a Smokie trolley – for a side hustle. The trolley was functional, and guaranteed to make campus stay easier with good weekly returns. Plus, I’d inherit business goodwill: a coveted spot at the hostels entrance.

I’d be at my spot every evening after classes, selling Smokies and Kachumbari. The Smokie business was, and is still great. The capital was quite low; just buy a fairly used trolley – at, say Ksh4,000.00. Besides, it didn’t attract other expenses like county permits, rent or utility bills.

Easy enough, right? Wrong! I didn’t last a week – selling Smokies!

I largely blame it on my background – I didn’t grow up around Smokies! I simply found them irresistible! As an investor, I’d often blur the line to become the client.

It’d depend on the day; campus traffic was heavier on Mondays and Tuesdays. On these days, I’d handle three or four dozens of Smokies, daily. The hostels are deserted over weekends.

Once I got the first batch roasted, I’d have one Smokie, to ‘kufungua biashara…’

After a few minutes, I’d have another Smokie, to ‘kuskia kama ziko sawa…’

I’d prepare the hallowed kachumbari, the must-have accompaniment. No one, absolutely no one enjoys Smokies without kachumbari.

I’d have another Smokie, to ‘make sure kachumbari iko sawa…’.

In the first quarter of an hour of the business opening, the investor has consumed three Smokies – before the first client has made a purchase. Hey, they were irresistible. I first came face to face with a Smokie in my 20’s!

In the village, we ate leftover Ugali for breakfast – not Smokies, bacon or assorted meats!

Then, friends will either make or break your business. I learnt that business tip, the hard way.

A friend comes, he’d ask to have a Smokie to ‘kufungua biashara, nitakuwa customer wa daily’. In my naivety, I’d fall for the lie. I suddenly had lots of friends! I was popular!

In my first week, I made little from my Smokies gig. The profit was negative, at an almost 100% loss rate. I had to call long-suffering mother to boost my capital. I couldn’t admit it, but I had literally eaten my stock! I loved Smokies! Before you judge, who doesn’t?!

Luckily, the novelty with Smokies had started to wear off into my second week of campus business. It’s like working in a bakery, the smell of bread is revolting. Or, working as a butcher – meat no longer calls the shots.

I started getting weary of Smokies. The smell turned repugnant and the sight revolting.

Unbelievably, that’s when the Smokie business turned around.

As an investor, I was my own worst enemy. I started recording good daily sales and building a solid reputation with clients. Gradually, I’d start a network – adding a series of trolleys and recruiting staff.

Towards my third year in campus I had become a business don, running a miniature Smokie empire! I’d hire a fleet of trolleys to freshers, make supplies and make rounds in the evening making collections.

I opened a Co-op Bank account at a local branch. I wanted more flexibility, so I downloaded MCo-op Cash app from Playstore. I had banking services at my fingertips. Campus environment is quite volatile, I didn’t want the risks that came with handling cash.

As I made collections, I’d immediately send them to my account, via MCo-op Cash. It helps alot that checking Co-op Bank account balances is free. I learnt an easy way to transfer money between bank accounts.

As my safety net, I’d make weekly deposits to my mother’s Co-op Bank account as savings.

Besides making deposits and money transfers easier locally, MCo-op Cash offers a rich boutique of money transfer solutions offered by Co-op Bank on a global level. For Android users, click here to download MCo-op Cash app from Playstore. For IOS users, MCo-op Cash app is available here on Applestore.

Or, just dial *667# to register.

The Kenya Airlift Program: How We’ve Sent over 50 Kenyan Students Abroad on Scholarship

Posted on by Kibaki Muthamia

A relatively rural ward with an easy-to-forget name is rapidly becoming an household name, thanks to the stellar exploits of her representative at the Meru County Assembly. This is Abogeta West Ward, made global by her MCA – Hon. Dmk Kiogora – one of the brains behind the highly successful Kenya Airlift Program.

The Kenya Airlift Program is an award-winning program structured to alleviate financial challenges Kenyans face when pursuing dreams of furthering their studies in the US.

Hon. Dmk Kiogora in an undated image with two of his students (file image)

Not only does the program enable access to affordable American schools to study, but also facilitates funding for Masters’ Degree programs. This includes tuition, living and relocation expenses in the US.

The other person of interest in The Kenya Airlift Program is Bob Mwiti, the mercurial Managing Director of a US-based consulting company known as Appstec America. This firm is committed to helping immigrants secure education & IT job opportunities in the USA.

Both are Meru natives, but this partnership was borne of their experiences abroad.

Bob Mwiti moved to the USA in 2009, for college – and faced lots of challenges securing employment as an immigrant. He’d later land a job as a Systems Analyst/Consultant in a Fortune 500 company in the US – and later found the organisation to help ease transition for other immigrants.

Dmk Kiogora would become an MCA in Abogeta West, and join a bench marking trip to the US – ends up meeting Bob Mwiti. They’d agree on a partnership, make an effort to Airlift brilliant Kenyans who wish to study IT-related master’s programs at select Universities in USA.

Kenya Airlift Program Co-founder Bob Mwiti (file image)

The prolific politician has since become the face of the Kenya Airlift Program.

To help finance the program, he facilitated registration of The Airlift Sacco (TAS). The program has since weathered teething problems, and as at August 2022, managed to secure sponsorship – tuition, accommodation, travel and Visa – for over 50 scholars recruited across the republic to the USA.

There’s an autonomous application process via the program’s portal, with a detailed qualification and vetting process.

Minimum academic requirement to join this program is an aggregate of a B (plain) in KCSE and a Bachelor’s degree in any field. You must be willing to study an IT-related master’s degree in USA regardless of your Bachelor’s major.

It’s never been easier to study on scholarship, secure work and live in the USA.

An upsurge of global affiliations in education and business circles has prompted local stakeholders in banking and finance industry to adjust with relevant money transfer solutions.

To plug this demand, Co-op Bank has led the pack by unveiling a rich bouquet of money transfer solutions. Co-op Bank has built a solid reputation with fast, secure, affordable money transfer solutions.

For instance, Remitly is fast and secure to send money to Kenya from US, Canada and other European countries. With a Co-op Bank account, you also have access to MoneyGram and Western Union to receive or send money from anywhere in the globe.

In-country, money transfer is easy with Pesalink that links Co-op Bank accounts, or externally transact with other banks. Business deals are easier to deal!

Click here to sample lots of other options on the Co-op Bank money transfer solutions bouquet.

KWS Surgeons Save Iconic Lion Injured in a Warthog Attack From Jaws of Death

Posted on by Kibaki Muthamia

Like a fruit that doesn’t fall far from the family tree that delighted in a generational line of teachers – I studied education in college.

However, on the hustling trail that precedes formal employment, I stumbled into the tours and travel industry – purely by chance. I was hooked.

A tour guide, a profession that largely mirrors my passions: travelling, wild living and culture.

The Masai Mara Reserve would be my on-job-training hub and career launch pad.

Tour guiding came easily to me. It’s a bit of a craft, and mostly an innate personality-driven vocation. Are you a good storyteller, passionate about a place you are showing? That’s a thing.

A cropped image of the Mara lion Sikio Kali, showing his nipped left ear (file images)

For example, the Mara Reserve enjoys huge coverage online –  visitors would probably have read the text. As their guide, my job is to give stories and anecdotes they won’t learn from the web.

Don’t be boring. Do not roll off facts like a robot – throw in a joke to break the ice.

As a rule, try to learn everyone’s name. Make new networks, new friendships. I have made lifelong friends from abroad, through our excursions in the Mara.

These friendship bonds have been made bolder through human-wildlife interactions.

In June 2021 as a newbie, I was assigned a group of tourists from the United States. They’d been following a pride of lions in the Mara known as The Four Musketeers, for years.

Tragically, one member of the lion pride – Scarface – had then just died, from natural causes on 11th June, 2021.

Scarface, the lion – had earned the moniker by a slash across his right eye – from a territorial fight.

That episode cemented in me the seriousness of my job. Locally, few people knew about a lion pride that ruled Mara like a kingdom, named “The Four Musketeers”.

Fewer still, cared that a lion had died. Yet, I’d meet a bunch of Americans visiting to commemorate the passing of the “World’s Most Famous Lion”.

That pride had three other lions: Sikio Kali, Hunter and Morani.

I’d make life-long friends in that expedition. They’d keep in contact from the USA, checking up on me – and, of course, keeping tabs with the surviving members of The Four Musketeers.

Fast forward, to June 2022 – I was at the coast on my annual leave.

Sikio Kali, the surviving leader of The Four Musketeers lion pride – is in trouble. Oh, wait. Sikio Kali was born in 2005, and earned the name due to his most distinguishing feature – a severed left ear. He lost most of it in a territorial fight.

I got a call from one of the American friends, from the initial 2021 expedition. He’d learnt from a park ranger’s social media page that Sikio Kali was in trouble.

It’s a dangerous life for a predator in the Mara, even for a lion. It’s a life or death affair catching dinner.

Now, Sikio Kali had got on the wrong business end of a warthog’s tusks in a dinner operation gone awry. He’d suffered nasty gushes from the warthog’s tusks.

Warthogs, alongside buffalo and wildebeest – are very dangerous prey – tusks and horns.

Luckily, hawk-eyed Masai Mara rangers spotted the ailing lion, in the nick of time. Sikio Kali’s wounds had already gone septic, filled with maggots.

The Kenya Wildlife Service (KWS) Mara Mobile Unit found the lion. The team manually cleaned, disinfected, sewn him up and administered antibiotics.

Sikio Kali is well on the way to recovery.

The lion’s friend in the US couldn’t travel to witness the operation. He’d asked me to chronicle the whole process for his collection on The Three Musketeers pride.

As I was on leave, he’d offered to facilitate my movement back to Nairobi, and purchase basic video equipment. A flight ticket, and a few day’s stay in an hotel in the city.

I felt like a global photographer!

I realized it’s as easy as ABC to send money globally, instantly and safely through a Co-op Bank account, via Wave.

Wave is a fast, safe and affordable way to send money from the United States into your Co-op Bank account. The Wave App is available for download on Google Play Store or the App Store.

Besides Wave, Co-op Bank has other equally safe and instant money transfer solutions either locally or globally, suited for different regions.

Check here for the full Co-op Bank Money Transfer solutions bouquet.

Co-op Bank celebrated as East Africa’s Regional Bank of the Year

Posted on by Kibaki Muthamia

The 16th edition of the African Banker Awards Gala Ceremony took place on 25th May 2022 at the Kempinski Hotel, in Accra, Ghana.

The event was held under the High Patronage of the African Development Bank, being part of the programme of the Bank’s Annual Meetings.

Two women won two of the most prestigious awards: the African Banker Icon and Finance Minister of the Year.

Ms Vera Songwe, United Nations Under-Secretary-General and Executive Secretary of the Economic Commission for Africa, was awarded the African Banker Icon Award for her tireless work in providing governments with the fiscal ammunition to deal with the impact of COVID-19.

Angola’s Finance Minister, Hon Vera Esperança dos Santos Daves de Sousa, was recognised as the Finance Minister of the Year for her stand-out work in restoring stability and market confidence to her country.

Another notable recognition was for Michael Atingi-Ego, the Deputy Central Bank Governor, Uganda, who won Central Bank Governor of the Year.

In his speech, Omar Ben Yedder, Chair of the African Banker Awards Organising Committee and Publisher of African Banker magazine, said that it is time we focused our efforts on strengthening our domestic capabilities to finance growth.

“We need strong institutions and we need to start with our commercial and development banks. If we have learnt anything from the past two years, and even more so these last two months, it is that we need to achieve financial sovereignty if we are to own our growth agenda.”

Other winners include legendary Nigerian banker Atedo Peterside, founder of IBTC Bank, which he merged with Stanbic 15 years ago, who won Lifetime Achievement Award for his contribution to banking.

The Regional Bank of the Year Award for East Africa was given to the Co-Operative Bank of Kenya for overall excellence in banking in the region.

This is the breakdown on main winners of the African Banker Awards 2022:

Energy Deal of the Year Temane Thermal Power Station – Absa Mozambique and International Finance Corporation

Agriculture Deal of the Year – US $200 Million corporate facility (the “Facility”) to BUA Industries Limited (“BIL”)
Africa Finance Corporation

Infrastructure Deal of the Year – The Luanda Bita Water Supply Project African Trade Insurance Agency

Deal of the Year : Debt – Bank of Industry €750 Million Debut Senior Note Participation Notes due 2027 Bank of Industry

Deal of the Year – Equity Prosus’ c. US$15 Billion Accelerated Equity Offering in Tencent Citi

Sustainable Bank of the Year – Trade and Development Bank

FinTech of the Year – Interswitch

Award for Financial Inclusion – Tugende Uganda

SME Bank of the Year – Ecobank

DFI of the Year – Trade and Development Bank

African Bank of the Year – The Standard Bank Group

African Banker of the Year – Benedict Oramah

Yaw Kuffour Award for Trade Finance – Coris Bank

Central Bank Governor of the Year – Michael Atingi-Ego (Deputy Central Bank Governor, Uganda)

Minister of Finance of the Year – Hon. Vera Esperança dos Santos Daves de Sousa, Angola

African Banker Icon – Dr. Vera Songwe (Executive Secretary of the United Nations Economic Commission for Africa)

Lifetime Achievement – Atedo Peterside CON, Founder of IBTC Bank

Best Regional Bank – North Africa National Bank of Egypt

Best Regional Bank – Southern Africa Mauritius Commercial Bank

Best Regional Bank – West Africa Fidelity Bank, Ghana

Best Regional Bank – East Africa Co-op Bank of Kenya

Best regional Bank – Central Africa Raw Bank, DRC

Breakdown of Co-op Bank’s virtual 14th Annual General Meeting

Posted on by Kibaki Muthamia

Co-operative Bank of Kenya today virtual held its 14th Annual General Meeting.

This is the third time the meeting has been held virtually following amendments to the law governing annual general meetings, following the Covid-19 epidemic.

Co-op Bank Group Managing Director Gideon Muriuki during the virtual meeting

The overwhelmingly successful meeting was attended by over 16,000 shareholders from across the globe.

Share holders welcomed the dividend payment scheduled to hit their accounts on 17Th June 2022.

The shareholders were appreciative of the Board of Directors’ divided policy that balances between the need for additional capital and shareholders immediate interest for earnings.

They particularly commended the Group Board for the kes 100billion retained earnings the bank has accumulated for future growth through this policy.

Kingdom Bank – one of the best performing Co-op Bank’s subsidiaries.

Speaking at the meeting the Group Managing Director, Dr. Gideon Muriuki pointed out to the shareholders that the bank was confident of a good performance in 2022 full year.

The MD estimated that the bank will surpass the over 22Billion profit registered in 2021, “ already in the first quarter of 2022 the bank has registered a profit before tax of kes 7.8Billion which is an indication of better days ahead.”

The meeting was chaired by the Bank Chairman Mr. John Murugu and was also attended by the Vice Chairman Mr. Macloud Malonza among other board members who attend virtually.

Co-op Banks records a 56% Growth with Ksh7.7B Profit in First Quarter

Posted on by Kibaki Muthamia

Co-op Bank Group is pleased to report a Profit Before Tax of Kshs. 7.78 Billion for the first quarter of 2022, a commendable 56% growth compared to Kshs. 4.98 Billion recorded in the first quarter of 2021.

This represents a strong Profit after Tax of Kshs. 5.8 Billion compared to Kshs. 3.5 Billion reported in 2021. The performance delivers a competitive Return on Equity of 23.8% to our shareholders.

The strong performance by the Bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility.

Key highlights;

Financial Position: The Group has registered sustained growth as follows;

Total Assets grew to Kshs. 597.0 Billion, a +8% growth from Kshs 552.9 Billion in the same period last year.

Net loans and advances grew to Kshs. 324.5 Billion, a +9% growth from Kshs.298.2 Billion.

Investment in Government securities grew to Kshs. 183.4 Billion, a +10% rise from Kshs. 166.2 Billion in 2021.

Customer deposits grew to Kshs 410.8 Billion, a +4% increase from Kshs. 393.8 Billion.

External funds from development partners stood at Kshs 43.3 Billion from Kshs.46.9 Billion in 2021.

Shareholders’ funds grew to Kshs. 102.7 Billion, a +10% increase from Kshs. 93.7 Billion in 2021 enabling us to continue pitching for big ticket deals.

Comprehensive Income

Total operating income grew by 17% from Kshs 14.4 Billion to Kshs 16.8 Billion.

Total non-interest income grew by 41.7% from Kshs 4.5 Billion to Kshs 6.4 Billion.

Net interest income grew by 6% from Kshs 9.8 Billion to Kshs 10.4 Billion.

Total operating expenses declined by 3% from Kshs 9.3 Billion to Kshs. 9.0 Billion.

Cost Management

Excellent gains from our various initiatives with a Cost Income ratio of 44.6% in Q12022 from 59% in FY2014 when we began our Growth & Efficiency journey.

Credit Management remains a key focus area by way of the following interventions;

The Credit Risk Adaptation Project dubbed ‘Project Kilele’ supported by a Global consulting firm, now in the implementation phase.

The Decentralization of Loan Portfolio Management to the Branches, Lending Units and Relationship Management teams. The successful project, aimed at enhancing collection activities, has advanced to Project Connect & Build (CB). The project is aimed at:
Identifying more business opportunities for loan book growth.

Engaging existing & potential customers with a view to establishing/enhancing their needs and co-create solutions.

Increasing customers’ product holding.

Sustaining the best practices learnt under the Decentralization of Loan Portfolio Management and Project Kilele above.

The Group prudentially provided Kshs. 1.5 Billion compared to Kshs 2.3 billion provided in 2021 indicating improving quality of our asset book as businesses and households continue to recover from the impact of Covid-19 pandemic.

Our Gross Non-Performing Loan (NPL) Book has reduced by 5% from last year, with our NPL ratio improving to 13.3% against 15.2% in a similar period last year. This affirms our Credit Quality and Growth strategies and will continue to improve to single digit pre-pandemic NPL levels.

A Strong Digital Footprint

Through our digital channel strategy, the Bank has successfully moved 94% of all customer transactions to alternative delivery channels, an expanded 24-hour contact centre, mobile banking, 541 ATMs, internet banking and over 27,000 Co-op Kwa Jirani agency banking terminals.

We have successfully migrated our customers to the Omni-channel, integrating accessibility and user experience. Our omnichannel interfaces online banking through personal computers, mobile phones and USSD availing our services to all customers through their preferred channel yet retain the same experience from wherever they are.

A successful Universal Banking model and the implementation of Sales Force Effectiveness has seen the Group serve 9 million Account holders across all sectors.

Key focus on digital banking, with the all-telco Mco-op Cash Mobile Wallet continuing to play a pivotal role in the growth of non-funded income with 5 Million customers registered and loans worth Kshs 19.9 Billion disbursed year-to-date, averaging over Kshs. 6.6 Billion per month.
Over 151,500 customers have taken up the MSME packages that we rolled out in 2018, and 23,363 have been trained on business management skills.

Year to date, we have disbursed Kshs. 4.3 Billion to MSMEs through our Mobile E-Credit solution. MSMEs are a critical part of economic recovery post-covid and contribute up to 16% of our total Loan Book.

Our unique model of retail banking services through Sacco FOSAs enabled us provide wholesale financial services to over 464 FOSA outlets.

Subsidiaries

Co-op Consultancy & Bancassurance Intermediary Ltd posted a Profit Before Tax of Kshs 316.9 Million as at 31st March 2022, riding on strong penetration of Bancassurance business.

Co-operative Bank of South Sudan that is a unique joint venture (JV) partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) returned a profit of Kshs 43.9 Million in Q12022 compared to a loss of Kshs 89.1 million in Q12021.

Co-op Trust Investment Services contributed Kshs. 53.7 Million in Profit Before Tax in Q12022, with Funds Under Management of Kshs. 190.2 Billion compared to Kshs. 128.4 Billion in March 2021.

Kingdom Bank Limited (A Niche MSME Bank) has contributed a Profit Before Tax of Kshs. 199.3 Million in Q12022 compared Kshs. 126.7 Million reported last year representing a 57% Growth year on year.

Long Term Financing: MSME, Sustainable Agriculture & Health sectors.

In 2020 the Group secured a long-term financing facility from the IFC (International Finance Corporation) amounting to Kshs. 8.25 Billion for on-lending at affordable terms to MSMEs involved notably in climate-smart projects, sustainable agricultural practices, and clean energy.

Partnered in the US$ 300 million IFC-led Africa Medical Equipment Facility and Philips (a leading health technology company) to support Africa’s health sector operators purchase essential medical equipment and strengthen their response to COVID-19 and other medical technology needs.

The Group secured a US$ 10 Million credit line in partnership with Eco.business Fund to finance Sustainable Agriculture.

Environmental Social and Governance (ESG)
The Bank has a dedicated ESG Unit that will see the enhancement of our ESG strategies as we take up emerging opportunities and manage ESG risks.

ESG remains a critical pillar of our strategic focus and the Group is determined to make positive contributions to the Economy, Society and Environment.

Co-operative Bank Foundation, a key social investment vehicle, has provided Scholarships to gifted but needy students from all regions of Kenya.

The sponsorship includes fully paid secondary education, full fees for University education, Internships, and career openings for beneficiaries.

The foundation is fully funded by the bank and has supported 8,368 students since the inception of the program.

Conclusion

The Co-operative Bank Group continues to execute a proactive mitigation strategy anchored on a strong enterprise risk management framework, to enable uninterrupted access to banking services.

We shall, riding on the unique synergies in the over 15 million-member co-operative movement that is the largest in Africa, continue to pursue strategic initiatives that focus on resilience and growth in the various sectors as the economy continues to recover.

National Schools in Kenya with the Most Creative Motto Phrases

Posted on by Kibaki Muthamia

Is it possible that a school’s motto has an impact in the overall turnout of its alumni? Oftentimes, this slogan is drilled into young entrants every morning at parade.

It’s like an indoctrination phrase into the school’s culture. It’s plastered in bold on every available space from school’s entrance, stationery, to blazers and shirts.

A school’s motto is an organ of pride, in every alumni association meet. It creates an addictive euphoria that stirs fond memories! Here’s a random list of 10 most creative motto phrases!

Meru School entrance in a past photo (file image)

Meru School: In Understanding, Be Men

A cursory perusal of history books sheds some light to the origin and relevance of this motto. Meru School is presently commands mention as on the country’s glorious institutions.

But, it’s grown from a humble existence, since inception in 1956. It’d grow, from learning under trees – drawing male students from the larger Meru and North Eastern Provinces – regions known for volatile temperaments.

They’d often be protests, due to harsh learning and living conditions. To counter this, the missionaries coined the phrase: In Understanding, Be Men!

Machakos School: ‘Ui wi Mbee’

The phrase ‘Ui wi mbee’ is an ode from the local language Kamba, which loosely translates as ‘Wisdom ahead’. The school is central to the regions cultural and social dynamics, and has historically produced some of the country’s most iconic figures straddling politics, academia, industrial and other fields.

The phrase is unique, as it’s a derivative from a local language, as opposed to schools with phrases from foreign languages.

Mang’u High School: Jishinde Ushinde

The name Mangu rolls off the tongue as a strong bragging high school favorite. Their motto, in Swahili – “Jishinde Ushinde” is simple, catchy. It loosely translates to “Conquer Yourself to Conquer” in English.

This is an ideal demonstrated in the school’s stellar performances, over several decades. It also helps that the school only admits the country’s best performers in KCPE.

Nairobi School: To the Uttermost

Well, in everything you wish to do, do to your uttermost. Give all it takes. There’s no holding back. I’d imagine the phrase ‘To the Uttermost’ would be an apt rallying call for an advancing army, and would be very encouraging to high school students.

Beyond high school, Nairobi School’s alumni would still find power and resolve, as they face cut-throat corporate and entrepreneurial sectors. It defines excellence.

Nairobi School – To the Uttermost (file images)

Kenya High School: Servire est Regnare

The Latin Phrase ‘Servire est Regnare’ is shared by Groton School, a private boarding school in USA. The English translation, as often occurs with complex Latin, several outcomes. But, in essence – “To serve is to rule”, or “For whom service is perfect freedom”

Kenya High is one of the best performing national schools in Kenya, and has very tight admission requirements. Only the country’s top KCPE performers attain admission.

Whichever high school your child attends, they all face the same challenges. Top of this agenda, is handling cash.

Luckily, digital banking has taken over and it’s much easier, and safer.

Co-op Bank has availed an innovative, safe and easy way to safeguard your child’s pocket money from risk of loss to marauding bullies – or wayward street-level thieves

The Co-op Bank Pre-paid card allows a parent to load cash into a card which a student carries to school.

Whichever your choice of bank is, all one has to do is walk into the nearest Co-op Bank branch and sign up for the card, and your child’s needs are handled.

What are the benefits of a Co-op Bank Prepaid card?

  • No need for your child to carry loads of pocket money as they head to school, you can simply load it in the Co-op Prepaid card which is safer than carrying cash.
  • The student will be able to pay for items at their school canteens at No Extra cost.
  • Parents will be able to track their students sending by getting a Mini statement of the card at a Co-op Kwa Jirani agent or via SMS alerts
  • You no longer need to travel all the way to the school to hand over money to your child, you can simply load the card at any Co-op Kwa Jirani agent.
  • The students are also able to withdraw money using the card from any Co-op ATMs or Co-op Kwa Jirani agents outside school.
  • You don’t need an account with Co-op bank to enjoy the benefits of the card
  • No extra charges will be incurred in transactions using the card.

It’s a good idea to visit the nearest Co-op Bank branch to learn about Co-op Pre-paid card, or click here.

No Stress for Parents! Six easy and safe ways to pay school fees for your kids!

Posted on by Kibaki Muthamia

As learners report back to their respective institutions, parents are under pressure to set all systems right. The kids have to report back to school on time. There are several hurdles.

How do they raise the required school fees? Yet again, how do they remit the needed school fees effectively, safely and conveniently to various learning institutions?

Co-op Bank has laid down various well-oiled mechanisms to see that parents have easy access to funds to cater for their children’s shopping and school fees. In addition, parents can conveniently remit school fees for their children to various institutions across the country and cater for their upkeep while they are in school.

Co-op Bank has revamped a range of online banking solutions to ensure that parents shop and remit fees for their children as schools reopen.

Below are effective online solutions from Co-op bank that are effective and convenient for parents to ensure that they access and remit school fees for their children.

  1. M-Pesa PayBill

To pay your child’s school fees conveniently via M-Pesa PayBill:

  • Go to Lipa na M-Pesa (PayBill)
  • Enter Business Code 400222
  • Enter Account Number as the School Code, next press # followed by the student number, for example, 1469#10023478989 (NB: Click hereto confirm your school’s coordinates)
  • Enter amount
  • Enter your M-Pesa PIN
  • Confirm transaction

Receive SMS confirming a successful transaction.

  1. MCo-opCash

While paying for school fees via MCo-opCash:

  • Log into your MCo-opCash App
  • Select Other Payments
  • Select School Fees
  • Enter your school business number or school code/; click here to confirm your school’s coordinates
  • Enter the account to transact from
  • Enter the student number
  • Confirm your transaction

Receive SMS notification confirming the transaction is complete.

  1. Co-op Internet Banking

If you have registered for Co-op internet banking, you

  • Log in to Co-op Internet Banking
  • Select ‘Bank Transfer’
  • Enter the school’s account and student details
  • Confirm the transfer
  • Confirm transaction and print out the receipt
  1. PesaLink

If you’re paying school fees from your Co-op Bank account to a different bank account, you can link your bank account to access the following PesaLink services:

  • Co-op Kwa Jirani Agents
  • Co-op Bank ATMs
  • Co-op Bank Mobile Banking (MCo-opCash)
  • Different Co-op Bank branches

To gain access to PesaLink services, here is a quick guide:

– Launch the MCo-opCash App or dial *667# to access MCo-opCash from your phone

– Select PesaLink

– Link your mobile number to your Co-op Bank account

PesaLink is a free service with zero charges when linking your bank accounts.

  1. Co-op Kwa Jirani

If you don’t have a Co-op Bank account, you can deposit your child’s school fees directly to the school account at the nearby Co-op Kwa Jirani agent. You no longer have to send your children to school with liquid cash. So be on the safe side.

Co-op Kwa Jirani services are available at your nearest local market or town.

  1. Co-op Student’s Card

Long gone are the days of broken boxes and stolen pocket money. Your child does not need liquid cash while in school. We all know how it goes in schools; things can get nasty.

With Co-op Student’s Card, your child is issued a pre-paid Visa card that can mean a lifeline while in session. Your child can purchase goods from the school canteen via a Process Data Quickly (PDQ) machine.

In addition, you can cap a monthly or weekly limit to a specific figure as per your budget. If your child needs access to liquid cash during school breaks, they can withdraw funds from any co-operative Bank ATM or a nearby Co-op Agent.

To access a Co-op Student’s Card, visit any Co-op Bank branch with the following documents for processing:

  • Student’s school ID
  • Student’s Birth Certificate
  • Parents ID
  • Parents KRA Pin

Parents can top up their children’s Co-op Visa Cards via Co-op Kwa Jirani, Mpesa PayBill or direct transfer from their accounts.

Why risk sending your child to school with loads of cash for shopping? Students can use the Co-op Student Card to pay for their shopping as they head to school. Either way, you can pay for their shopping using your Co-op Visa Credit or Debit Card at zero cost.

School fees payment has never been much more straightforward. Are you still stuck up in the analogue era?

Sign up with Co-op Bank today to enjoy these fantastic and convenient services.

Is homework really necessary for kids in kindergarten?

Posted on by Kibaki Muthamia

Do you have a kindergartner in your house? Parental protocols demand that at some point, homework sessions shall take up a section of your evening. Hey, those booklets have a blank space for the parent’s signature!

Have you tried teaching the new phonetic alphabet?

Let me tell you, Maina. It’s easier for the proverbial rich man to squeeze through the eye of a needle.

The new phonetic alphabet is messing up that innate, regal awe kids have for their parents. Suddenly, daddy is no longer fit for the Superman cape – he doesn’t have a clue of basic ABC’s!

 

So, heads up to new dads whose kids are joining school, in May. Brace for a few evenings, which will have you looking like a total fool in the eyes of your kid. As it is, day one in school stamps the teacher as an all-knowing deity, so anything you teach your kid has to measure up.

You schooled in the archaic A – for apple, B – for boy days. Your kid will smirk with glee for catching you wrong for the first time. “No! Teacher didn’t say that!”

They’ll scream at you. In their eyes, you can read ‘What a blithering idiot’ in a billboard size font.

Ah, Buh, Cuh, Du, Fff……

At this point, you’ll call for your house manager. In that household, she’s the closest to solving this riddle. You’d better pray she can scribble a ‘parental’ signature on that homework booklet.

At the end of the first week, your kindergartner shall bring home their weekend CBC project. They are supposed to make a scarecrow.

Teacher Ann, really? What happened to simple dolls or basic game boards for projects?

You have seen scarecrows in millet farms swaying in the breeze on occasional drives out of town. But, you’ve never taken a moment to think of what it takes to make one. Do you nail rods together, and then dress that frame in old clothes?

Ah, well, let’s search online. The requirements and tools needed guarantee a rather hectic weekend ahead.

What never subsides even for a moment, is your kid’s energy. At 0400hrs, Saturday morning – kid is tagging at the foot of your bed.

“Daddy, let’s go make scarecrow. Teacher Ann said you help me!” You’ll groan and turn, but it is what it is.

Well, as new parents prepare for their kid’s first day in school there’s a lot of businesses that make it easy. They provide basic requirements. There’s need for several pairs of uniforms in the school’s specifications. A need several pairs of shoes – it’s not uncommon for a new scholar to return home without a shoe – or different shoes. New parent, prepare mentally for such an occurrence.

For business owners, it’s easy to cash in on this flurry of purchases by accepting online card payments via Chapa Pay, Co-op Bank’s eCommerce solution.

Chapa Pay eCommerce solution allows you to receive online card payments from your customers directly into your Co-op Bank account. The best part is that a business does not need to have a website to receive online card payments. In this case, the business owner receives a unique link (Pay-By-Link) which is used to invoice their customers.

It attracts no extra costs and it’s very secure. To learn more ways to build your business with Chapa Pay, click here. Alternatively, walk into the nearest Co-op Bank branch and speak to a bank representative.

This is the first step to joining the best financial partner for hassle-free business growth, and going global.

Co-op Bank reports an hefty Ksh22.6B Profits before Tax for the year 2021

Posted on by Kibaki Muthamia

Co-op Bank Group is pleased to report a Profit Before Tax of Kshs. 22.6 Billion for the full year 2021, a strong 59% growth compared to Kshs. 14.3 Billion recorded in Full Year 2020.

This represents a commendable Profit After Tax of Kshs. 16.5 billion compared to Kshs. 10.8 Billion reported in 2020.

Co-op Bank CEO Gideon Muriuki in a past press conference

Key Highlights:
Financial Position:

The Group has registered sustained growth as follows;

  • Total Assets grew to Kshs. 579.8 Billion, a +8% growth from Kshs 536.9 Billion in year 2020
  • Net loans and advances book grew to Kshs. 310.2 Billion, a +8% growth from Kshs.286.6 Billion in year 2020
  • Investment in Government securities grew to Kshs. 184.1 Billion from Kshs. 161.9 Billion in 2020, a +14% growth.
  • Customer deposits grew to Kshs 407.7 Billion, a +8% growth from Kshs. 378.6 Billion.
  • Borrowed funds from development partners stood at Kshs 42.9 Billion from Kshs.46.0 Billion in 2020.
  • Shareholders’ funds grew to Kshs. 100.2 Billion (+10%) from Kshs. 90.7 Billion in 2020 enabling us to continue pitching for big ticket deals.

Comprehensive Income

  • Total operating income grew by 12% from Kshs 53.8 Billion to Kshs 60.4 Billion.
  • Total non-interest income grew by 11% from Kshs 17.5 Billion to Kshs 19.4 Billion.
  • Net interest income grew by 13% from Kshs 36.3 Billion to Kshs 41.0 Billion.
  • Total operating expenses improved by 3% from Kshs 39.4 Billion to Kshs. 38.1 Billion.

Increased Market Dominance

A successful Universal Banking model and the implementation of Sales Force Effectiveness has seen the Group serve over 9 million Account holders across all sectors.

Through our multi-channel strategy, the Bank has successfully moved 94% of all customer transactions to alternative delivery channels, an expanded 24-hour contact centre, mobile banking, 561 ATMs, internet banking and over 26,000 Co-op Kwa Jirani agency banking terminals.

Key focus on digital banking, with the all-telco Mco-op Cash Mobile Wallet continuing to play a pivotal role in the growth of non-funded income with 5.3 Million customers registered and loans worth Kshs 71.2 Billion disbursed year-to-date, averaging Kshs. 6 Billion per month.

Over 144,000 customers have taken up the MSME packages that we rolled out in 2018, and 19,963 have been trained on business management skills.

To date, we have disbursed Kshs. 42.5 Billion to MSMEs through our E-Credit solution.

Our unique model of retail banking services through Sacco FOSAs enabled us provide wholesale financial services to over 464 FOSA outlets.

Proactive Credit Management remains a key focus area supporting Loan Assets growth;

The Credit Risk Adaptation Project dubbed ‘Project Kilele’ supported by a Global consulting firm, now in the implementation phase.

The Decentralization of Loan Portfolio Management to the Branches, Lending Units and Relationship Management teams.

The successful project, aimed at enhancing collection activities, has advanced to Project Connect & Build (CB). The project is aimed at:
Identifying more business opportunities for loan book growth.

Engaging existing & potential customers with a view to establishing/enhancing their needs and co-create solutions.

Increasing customers’ product-holding.
Sustaining the best practices learnt under the Decentralization of Loan Portfolio Management and Project Kilele above.

The Group prudentially provided Kshs. 7.9 Billion in loan loss provisions compared to Kshs 8.1 billion provided in 2020 indicating improving quality of our asset book as businesses and households continue to recover from the impact of Covid-19 pandemic.

Subsidiaries

Co-op Consultancy & Bancassurance Intermediary posted a Profit Before Tax of Kshs 803.9 Million as at 31st December 2021, riding on strong penetration of Bancassurance business.

Co-operative Bank of South Sudan that is a unique joint venture (JV) partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) returned a monetary loss of Kshs 421.7 Million in FY2021 attributable to hyperinflation accounting due to currency devaluation of the South Sudanese pound.

Co-op Trust Investment Services contributed Kshs. 140.4 Million in Profit Before Tax in FY2021, with Funds Under Management of Kshs. 189.2 Billion compared to Kshs. 127.5 Billion in December 2020.

Kingdom Bank Limited (former Jamii Boar Bank) has contributed a Profit Before Tax of Kshs. 512.4 Million in FY2021.

Long Term Financing: MSME, Sustainable Agriculture & Health sectors.

In 2020 the Group secured a long-term financing facility from the IFC (International Finance Corporation) amounting to Kshs. 8.25 Billion for on-lending at affordable terms to MSMEs involved notably in climate-smart projects, sustainable agricultural practices and clean energy.

Partnered in the US$ 300 million IFC-led Africa Medical Equipment Facility and Philips (a leading health technology company) to support Africa’s health sector operators purchase essential medical equipment and strengthen their response to COVID-19 and other medical technology needs.

The Group secured a US$ 10 Million credit line in partnership with Eco.business Fund to finance Sustainable Agriculture.

Corporate Social investment

Co-operative Bank Foundation has continued to provide annually over 650 Scholarships to gifted but needy students from all regions of Kenya.

The sponsorship includes fully paid secondary education, full fees for University education, Internships and career openings for beneficiaries.

The foundation is fully-funded by the bank and has so far supported 8,842 students since the inception of the program.

Accolades
The Group appreciates the recognition and Awards received in 2021, notably the following EMEA Awards (African Banking Awards);

The Best Bank CEO in Africa Award, awarded to Dr Gideon Muriuki, Group Managing Director & CEO, Co-op Bank with the following citation;

The Board of Directors’ bold decision to sustain the same level of dividend payments to shareholders despite the Covid-19 crisis offered a most timely relief, especially to the over 15 Million-Member Co-operative Movement, whose livelihoods would have been severely impaired had the dividend been withheld.

The Bank notably also sustained a relentless focus on Staff Wellness with the unprecedented challenges occasioned by the Covid-19 pandemic; notably it undertook a bank-wide analysis to identify and address manpower inefficiencies spurred by the disruption, with a critical focus on staff redeployment/retention other than redundancies.

The Best Bank in Kenya Award, and as Best Bank in Financial Inclusion -Africa, with the citation;

Bank subsidiary Co-optrust Investments Services was named Best Asset Manager in Kenya; now has an Asset Base of over Kshs. 189.2 Billion under management.

Co-op Bank changing the business landscape with innovative MSME Business Loans

Posted on by Kibaki Muthamia

Are you a business owner running a Micro, Small and Medium Enterprises (MSMEs)? Do you want to boost your business, but you’re falling short of funds?

Worry no more. Co-op Bank MSME business plus loans has you covered.

In partnership with International Finance Corporations, Co-op Bank has conducted numerous research to understand the Micro, Small and Medium Enterprises (MSMEs).

The bank has developed a solution to help these entrepreneurs meet their needs and align with existing and new opportunities.

MSME Term Loan: What It Is?

An MSME term loan is the funds your business can secure to raise supply operations or expand your business.

The loans come with a repayment period between 12 to 60 months, depending on your business scale.

The bank offers both unsecured term loans and partially secured term loans.

According to Arthur Muchangi, the Director Retail & Business Banking at Cooperative Bank,

“Our message to MSMEs is simple; we have heard you. We have made available a substantial kitty of Sh15.2 Billion for a package of loans that include an unsecured business loan, a first of its kind in Kenya.

E-Credit through our MCo-op Cash App, where businesses can borrow up to Sh2 million via their mobile phone packaged insurance cover, which is handpicked and specifically negotiated to suit various segments under MSME, revised and pre-approved limits on overdrafts and loans.

The loans will be supported by trade services that include Letters of Credit, guarantees, supply chain financing, among others.”

What Are the Key Features of Co-op Bank MSME Current Account?

Co-op Bank MSME’s current account offers custom-tailored features that range from mobile loans, secured and unsecured overdrafts, insurance solutions, payment solutions, supply chain financing, credit cards, cheque book, internet banking, debit cards,

Mobile banking, dedicated relationship manager and non-financial services like training and networking.

Co-op Bank MSME solutions address the needs of entrepreneurs by providing three MSME account packages that address different requirements for their customers:

  • Gold: Offers a maximum of Ksh 10 million unsecured and Ksh 15 million for partially secured loans
  • Silver: A maximum loan of Ksh 6 million unsecured and Ksh 8 million for secured loans
  • Bronze: A maximum of Ksh 600,000 unsecured and Ksh 3 million secured loans

Unsecured loans have a repayment period of 24 months, while secured loans have a repayment period of up to 60 months.

In addition, all account holders get the following services from Co-op Bank:

  • Free monthly e-statements
  • Access to MSME asset solutions and daylight overdrafts
  • Free In-house standing orders
  • Bargainable FX conversion rates
  • SMS and Email alerts
  • Access to trade finance services.

What Are the Interest Rates Charged on Co-op Bank MSME Loans?

Co-op Bank charges MSME loans in two different ways; a customer can opt for any two.

Flat Rate MSME Loans

The loan attracts an interest rate of 13% per year with 2.5% appraisal fees. The loan comes with a maximum of 36 months and attracts no negotiation or application fees.

Reducing Balance MSME Loans

Loans attract an interest rate of 13% per annual with application fees of between Ksh 3 million to 15 million depending on the amount. The loan also attracts an appraisal fee of 3% and comes with a maximum tenor of 36 months.

Who Can Qualify for Co-op Bank MSME Loans?

Customers operating business accounts with Co-op Bank as individuals are eligible to apply for the MSME loans if they meet the following criteria:

  • A customer should have an account linked to MCo-op Cash
  • A customer should have zero non-performing loans with the bank
  • A customer should not be blacklisted by the CRB or on the bank’s blacklist
  • Should hold an account with Co-op Bank for at least six months.
  • Should be between the age of 18-65 years
  • Must hold accounts not overdrawn over the approved limit
  • Must not hold any arrears with the bank at the time of application
  • Should not have any blocked funds in their accounts
  • Should not have any of their loans with the bank written off

How to Apply for MSME Loan From Co-op Bank

If you’re not a Co-op Bank member, visit the local bank to open an account and start transacting to enjoy the benefits of MSME loans after six months.

For existing Co-op Bank members, use your MCo-opCash App or dial *667# and register to start the application if you qualify.

You can Download the MCo-opCash App from the google play store.