Tag: Co-op Bank news

Have you got kids in school? Here’s seven great reasons why a Co-op Pre-paid Card is a good idea!

Posted on by Kibaki Muthamia

The Co-op Prepaid Card is a new revolutionary cashless way to escape the perils of handling hard cash.

Despite the health risks cash brings, there’s also a myriad of other risks: loss due to theft or misplacement, it’s harder to account for or track expenses, et al.

For students going back to school, the risks are doubled. This card solves the perennial stress of constantly worrying about your kids in college and high school.

The pickle in the pie is that one doesn’t require to be a Co-op Bank client to enjoy the benefits of the Pre-paid card.

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 witph Co-op bank to enjoy the benefits of the card
  • No extra charges will be incurred in transactions using the card.

Visit the nearest Co-op Bank branch to learn more about the Prepaid card, or, click here.

Why do men patronize the car wash as the ladies stick to the salon?

Posted on by Kibaki Muthamia

The car wash with an outdoor sitting set up is the modern masculine version of the ladies’ favorite hang out spot, the salon.

This brings to light the fundamental difference between the genders is that Sons of Adam easily compartmentalise their issues, unlike the ladies.

Ladies want a safe space to talk about their issues – love life, mother-in-law tribulations, kids….

Gentlemen want a safe space to think and worship their objects of desire.

That’s the reason the salon has the chatter reputation and energy of a busy newsroom. On the other hand, the car wash is largely cool.

A man parks in line, joins a gang on a table outdoors, asks for a drink. He’ll sit facing the cars getting the spray on the ramp.

A man makes new acquaintances at the car wash, valuable networking. But, first, usually by expressing adoration for some funky ride. Random questions will tumble out.

“Who does your paint work, man? He’s good”

“That scratch on the rear door? The kid from next door?” They’ll laugh a little.

“I don’t care if it costs me a kidney, but I’ll have to get that new Subaru Forester…..how long have you had it?”

Men won’t talk about their mothers-in-laws. Or, their demanding spouses. Or, the dishonest farm hand. They are not here for therapy.

The talk lingers on engine ratings, shocking petrol prices, conniving mechanics, and the hottest graffiti artist in town.

The biggest deal as an hang out spot is the networking angle. All sort of professionals will be trading banter here – lawyers, journalists, insurance agents, medics, street artists, name it.

It’s a blessing to own a ride, and besides the major opportunities it affords one – there’s lots of other benefits when you join the motoring fraternity.

What’s more there’s now an easy way to acquire a brand new moti…..

There’s a friendly financing partnership from Co-op Bank, after a groundbreaking partnership with World Navi – global leaders in vehicle acquisition and importation.

The campaign is dubbed Shika Dinga na Co-op, and here’s some of the perks attached:

  • 80% asset financing.
  • Access to high-end vehicles.
  • 100% safe & reliable vehicle importation to your doorstep.
  • 3 months warranty on engine & transmission.
  • A privilege of choosing from a wide choice of cars from various source countries.
  • All cars come with accident-free and genuine mileage certificates.
  • No risk of stolen parts or non-performance.

This is a chance to bring good tidings to your life and family. To learn more of the Shika Dinga na Co-op Campaign, click here.

Want to experience terror? Riding in a fisherman’s dug-out canoe beats bungee-jumping!

Posted on by Kibaki Muthamia

You haven’t lived if you haven’t sunk your toes in the white sands and gulped for breath in the ocean surf on the Kenyan coast.

People tell awesome stories of their coastal retreats, albeit generously peppered with hyperbole.

This story is neither awesome, nor laced with additives. My first solo trip had lots of fun moments, but Son of Adam is wired to record the outrageous. Normal is boring.

Well, cue in my first semester break. I had decided to backpack to the coast. Backpacking is the fall-back option for travel enthusiasts on a budget. None of my mates was crazy enough to join, so I had to travel solo.

I had pored over a tourist map detailing exquisite spots to visit. I couldn’t miss a visit to Wasini Island.

Wasini Island is an idyllic tourist island on South Coast. It’s the far most island, and a quick perusal online described a land of positivity, friendly people with a mixed heritage.

Wasini is a few nautical miles to Tanzania, or Zanzibar. That’s why ‘mixed heritage’ tagged at my heart strings – I’ve always liked to meet people from these lands.

A shoestring budget notwithstanding, I landed at Shimoni. This is a small town, that’s serves the island. There’s a dock, with all sorts of boats – fishing boats, passenger boats to the island and beyond, tanker boats, and other sorts.

The locals are drawn like magnets to visitors. A lone, backpacking student got noticed in an heartbeat. Even less to recognise a budget traveller!

The boat fees to cross to the island are varied. I chose the lowest. Turns out that I chose a dug-out canoe. This was a fisherman from the island who had delivered his day’s catch to the mainland.

My prior sailing experience was limited to a few rounds in a boat at Uhuru Park. I was then five or six, on a family day out over Christmas. It wasn’t exactly sailing, those boats have pedals!

The canoe is long and narrow. A lot like the biblical path to heaven. We squeezed in, the fisherman and I facing each other on opposite ends.

He hands me a container, a jerry can cut in half. Says nothing. He grabs a pair of oars and pushes off the pier.

When you make a bad decision, the universe is ruthless. I realised, immediately. The canoe started filling up. Am trying to lift up my back pack. The fisherman points at the half-container with his lips. He’s rowing.

I have to keep throwing out water with the container! My backpack is getting wet! The sea is tossing us in the air like balloons! Am literally inches away from the water!

It was dusk – at some point all I could see were tiny dots of light across an endless expanse of black water!

If you’ve watched ocean documentaries, then you’d know the horrors that abound in the deep sea.

I was shaking. Half from the chilling cold, and the other from the fear of the unknown! I found myself praying – even calling on my ancestral gods!

Some how, we made it across. I could have voted that nonchalant fisherman the greatest sea captain that ever sailed.

In retrospect, I discovered that in times of uncertainty, my default setting is deeply religious. Thankfully, the people and the general ambience on Wasini Island gifted me with an incredible holiday.

Presently, it’s an easy choice of pocket friendly options available for travel enthusiasts – courtesy of a partnership between travel magnates Bonfire Adventures and Co-op Bank.

Co-op Bank has negotiated a deal for clients wishing to book a Easter holiday retreat through Bonfire Adventures.

There’s a major discount up for grabs if payments are done with Co-op ATM cards, Co-op Credit cards or Co-op pre-paid cards.

Bonfire Adventures have an amazing array of travel packages covering the Kenyan coasts in its entirety. All exclusive resorts and spots from the North to the South Coast, it’s a once-in-a-lifetime Easter offer.

To learn more about the Co-op Easter travel discounts, click here.

Happy Easter!

For a business owner, how does using the E-commerce solution from Co-op Bank help grow a business?

Posted on by Kibaki Muthamia

The ravaging Covid-19 pandemic has dictated a rather drastic change to our livelihoods if we have to check its spread.

The business owners have had to embrace cashless means of payments, to lower their risk levels presented by use of hard cash. There’s need, therefore, for a reliable E-commerce platform.

To address that concern, The Co-operative Bank has heavily invested in E-commerce to guarantee safety and quick flow of payments to their clients – Merchants and their customers.

Here’s a preview of various advantages a merchant enjoys:

  1. Convenience to their customers consequently an increase in sales: Customers do not need to be physically present. Payments can be transacted at any time from any location in the world and delivery is done.
  2. Outstanding real-time processing speed with average authorisation response times typically below 2 seconds: quicker service delivery as payments reflect instantly.
  3. A customer enjoys a variety of card: International VISA credit and debit cards, pre-paid cards – which doubles safety and convenience on both ends.
  4. There’s more sales, as E-commerce allows flexibility for multiple currencies – Kes, USD, GBP and Euro
  5. The E-commerce solution gives unparalleled processing scalability and security – as it’s instant, and avoids the risks fraught with using hard cash.
  6. The merchants and their customers enjoy exceptional service reliability that’s backed by 24/07 operations support. In case of any hitch, there’s real-time assistance.
  7. E-commerce allows advanced fraud prevention solutions, on both the merchants’ and customers’ end.
  8. The ease of integration. A merchant using the E-commerce has accounting and book balancing cut out, as opposed to tedious paperwork occasioned by hard cash sales.
  9. Real-time reporting on payments and account statuses for trading partners.

Most importantly, with the E-commerce solution, merchants are now be able to receive payments not only from Co-op Bank card holders but also card holders from other banks.

Co-op Bank also offers other Cashless solutions to merchants. For instance:

  1. Lipa Na M-Pesa: The bank assists you get a till number so payments can be directly deposited into your Co-op bank account.
  2. POS/PDQ terminals: Customers do not need to handle hard cash. They can use their cards to make payments, and money is deposited directly into the merchant’s account.
  3. MCo-op Cash: Co-op bank customers with the mobile banking solution can conveniently transfer money directly from their Co-op account into the merchant’s Co-op account using the USSD number *667# or via the MCo-op Cash app.
  4. Lipa Na M-Pesa Paybill number 400200: Customers can use their phones to send money directly into the merchant’s Co-op bank account using the M-Pesa Paybill number 400200.

Merchants are encouraged to contact Co-op Bank for details and assistance.

How to avoid landlord drama during the festive season

Posted on by David Kingsley

Some landlords can be a nightmare and you should be wary of them now that the festive season is around the corner because quite a number of them won’t think twice before adding a huge padlock on your door.

If you ask me, there’s nothing worse than being locked out of your house in December. It just ruins your mood and it is likely that you won’t even enjoy Christmas or New Year’s.

December is only two days away and that means that bills are about to start piling up. From rent, electricity, garbage, internet, insurance, you name it.

To add to that, you still have to set aside some money to make merry because it is the festive season after all. Even if you had planned on how you would spend your money, you might still find yourself in a tight financial spot.

This is where Co-op Bank comes in, to give you that financial boost that you desperately need or else you’d have to fake an out-of-town vacation or default on your rent.

You can get an instant loan at friendly interest rates on the MCo-op Cash app and relieve yourself from the pressure that comes with the festive season, including having run-ins with your landlord for not paying your rent.

To access the loan, you need to be a Co-op Bank customer and install the MCo-op Cash application from Google Play Store or the iOS App Store.

After signing up, you can borrow anything between KSh. 1000 and a maximum of KSh. 200,000. For businesses, the limit is KSh. 500,000.

There you go. That’s how you avoid landlord drama and enjoy yourself during the festive season. Happy holidays!

Have you had the sorry tragedy of losing your school fees and getting eternally grilled for it?

Posted on by Kibaki Muthamia

In modern times, back-to-school days are less stressful for the parent. In the days of yore, parents would have lots of choices to make on such days. Do they have to skip work to accompany their kids to school, specifically to pay school fees? Can I trust my wayward son whose seemingly sole ambition in life is ‘to be cool?’

It was akin to playing poker, and the roll of the dice sometimes came short.

A traumatising episode in my early high school days still haunts me. I was blessed with noble parents, but I doubt they’ve let it go, to this date. Take a seat, grab some popcorn.

Oh, this story involves your favorite salad fruit, the avocado. Did you know Mexican recipes refer to the avocado as the ‘guacamole’?

On the material day, it was decided that I would be reporting back to school unaccompanied. None of my parents or elder sibling had a day to spare. I was a strapping lad of 15, with a brimming cauldron of teenage hormones. I was glad my folks had finally given me an ‘adult-stamp’, despite a turbulent few weeks of holiday.

I received the crumpled bundle of notes from my dad, with the solemnity of Biblical Moses receiving The Ten Commandments. Then, my pocket money in an assortment of coins neatly tied up in an old handkerchief. My dad then said it was my second term’s fees in full. It was a little over five thousand, but I broke out in a hot sweat. It had the weight of the national treasury.

At the time, I was also a budding entrepreneur in school. On opening days, I would pick a pack of fresh avocado from home to hawk off to my classmates. I had to boost my pocket money. I had a dilemma: where do I hide my treasury? The bag didn’t seem a good idea – in those days, brats from neighbouring schools would often mug their counterparts for the-hell-of-it.

I chose to hide my school fees in my socks.

At the bus terminus, there is the usual shoving and pushing for the few matatu available. In the midst of it, my school bag had the misfortune of bursting at the seams. I hadn’t factored in the weight of my avocado stock. It also didn’t help, that the terminus has a gentle slope. My guacamole salad started rolling down the hill on the tarmac.

It was mighty embarrassing sprinting after avocados, in my school uniform. In the melee, my Cash-In-Transit socks lost their elasticity, and dropped their cargo. I tasted Murphy’s Law before they taught me about it. To date, my folks haven’t believed I lost my school fees chasing avocados down the hill.

No need for that nowadays, with PesaLink. All Coop Bank customers with MCoopCash app, for instance, are already registered to PesaLink. This allows any parent to easily and safely pay school fees to multiple schools from the convenience of their homes. Coop Bank customers can access PesaLink by dialling *667# on their phones, or via MCoopCash app.

Even Non-Coop Bank customers can still send money instantly to a Coop Bank account via PesaLink. All they need is the details of the school’s Coop Bank account, and pay school fees directly.

Discerning business people use PesaLink to conveniently pay their suppliers instantly into their bank accounts, at very affordable rates. For other personal business transactions, Coop bank customers can send money instantly to any local account at very friendly rates – like, Ksh.10 up to Ksh.200,000 at an extremely low cost between Ksh.0 to Ksh.152 – depending on the amount due for transfer.

 

Co-op Bank and Super Group deepen leasing partnership

Posted on by David Kingsley

The Co-operative Bank of Kenya together with leading leasing company Super Group of South Africa have reiterated their commitment to deepen the partnership in the local leasing business, through the joint venture firm owned by the two institutions named Co-op Bank Fleet Africa Leasing Limited.

(L-R) The Chairman, Co-operative Bank John Murugu, Fleet Global Chief Operating Officer Super Group, Philip Smith and Group Managing Director and CEO Co-operative Bank Dr. Gideon Muriuki sign-off the joint venture strategic partnership arrangement in leasing business, witnessed by Company Secretary Co-operative Bank Samuel Kibugi (standing).
(L-R) The Chairman, Co-operative Bank John Murugu, Fleet Global Chief Operating Officer Super Group, Philip Smith and Group Managing Director and CEO Co-operative Bank Dr. Gideon Muriuki sign-off the joint venture strategic partnership arrangement in leasing business, witnessed by Company Secretary Co-operative Bank Samuel Kibugi (standing).

The strategic partnership between Co-op Bank and Super Group is intended at penetrating and growing a modern leasing business aiming at market leadership, securing long-term partnerships and joint ventures to sustainably support growth, building on world-class competencies in the supply chain, fleet management, and dealerships, and providing customers with innovative leasing solutions.

Co-op Bank Fleet Africa Leasing Limited, known in short as ‘’Co-op Bank Fleet’’ has within a short time since its establishment moved to stamp its presence in the leasing space, is a joint venture of two major players who bring to the table complementary capabilities in leasing.

Super Group of South Africa delivers its proven expertise in customer screening, product structuring, and risk management as Co-op Bank makes available it’s excellent client base to whom leasing is critical such as SMEs, Co-operatives and the Public Sector.

A truck branded with Supergroup logo
A truck branded with Supergroup logo

“Co-op Bank Fleet’’ already got off to a roaring start by concluding its first leasing deal worth over Ksh890 million in January of this year. This maiden transaction, which is part of a larger Ksh2.2 billion deal, entails the financing and delivery of a fleet of 125 vehicles to the Ministry of Interior.

Also read: 5 reasons why the MCo-op Cash app is the best first resort when you’re in a tight financial spot

The Co-operative Bank was the financier, with Co-op Bank Fleet arranging the leasing in collaboration with motor vehicle dealers Isuzu East Africa Limited who are to deliver the fleet made up of trucks, pickups, and buses.

“Super Group Limited is an established global leader in leasing business operating in three continents and is listed on the Johannesburg and Sydney stock exchanges. This partnership between Co-op Bank and Super Group continues to deliver mutual benefits as it taps the synergies created by the joint venture,” said Co-operative Bank Group Managing Director and CEO Dr. Gideon Muriuki.

Co-op Bank CEO Gideon Muriuki
Co-op Bank CEO Gideon Muriuki

“Co-op Bank Fleet enables the bank to better support customers to acquire the assets, technologies, and equipment they require at the same time enable the bank to diversify its income streams,” added Dr. Muriuki adding that Co-op Bank Fleet enables the bank to better support customers to acquire the assets, technologies, and equipment they require at the same time enable the bank to diversify its income streams.

Co-op Bank partners with WorldRemit for quick digital money transfers to Kenya

Posted on by David Kingsley

Co-operative Bank of Kenya has partnered with leading digital money transfer company WorldRemit to enable digital money transfers to over 6 million Co-operative Bank accounts and 150 new cash pickup locations nationwide.

Using the WorldRemit app or website, Kenyans living in over 50 diaspora countries can now send money directly to their loved ones personal Co-op Bank accounts in over 150 branches. The transfers can be made directly from the senders mobile phones, and the receiver can withdraw the funds from a nearby Co-op Bank Agent, ATM or Branch.

Co-operative Bank Retail and Business Banking Division Director Arthur Muchangi (left) and Head of Business Banking Moses Gitau
Co-operative Bank Retail and Business Banking Division Director Arthur Muchangi (left) and Head of Business Banking Moses Gitau

WorldRemit saves customers time and money, enabling them to send funds home in a few taps from their phones without having to visit a bricks and mortar agent. Customers sending to Kenya can choose from a variety of convenient pay-out options including bank transfer, cash pickup, mobile money and mobile airtime top up.

Over 3 million Kenyans live abroad, with top senders to the country including the United Kingdom, the United States, and Australia. The World Bank estimates that in 2018 the Kenyan diaspora sent $2.7 billion in remittances, now the countrys top foreign exchange earner exceeding tea, coffee, and tourism.

Many Kenyans in the diaspora support family and relatives here at home to fund basic needs including education, food, housing and access to healthcare. According to recent WorldRemit research based on national household survey data, Kenyans abroad contribute over $300 million to childrens education nationally. Receiving remittances halves a Kenyan childs chances of being out of school.

Mr. Arthur Muchangi, Director Retail Banking at Co-operative Bank of Kenya confirmed the banks commitment to support remittances.

“As a bank that handles some of the largest volumes of remittances to Kenya, Co-op Bank will continue to invest in partnerships that provide Kenyans in the diaspora with the most affordable and secure means of transferring their funds home for domestic support, savings and investment.

“Co-operative Bank has a dedicated Diaspora Banking Center that is available 24/7 to serve diaspora clients irrespective of time zones, the first of its kind in Kenya,” he explained.

Sharon Kinyanjui, Head of East and Central Africa at WorldRemit said, “Kenyans around the world make WorldRemit their top choice when it comes to sending money home.

“We are delighted to partner with Co-operative Bank of Kenya, a trusted household name with strong ties to the diaspora and a shared commitment to financial inclusion, to further expand our network in the country and make our convenient service accessible to all.”

Visit the WorldRemit or Co-operative Bank websites for more information on how to send money to Kenya.

Co-operative Bank CEO/Managing Director Gideon Muriuki

Co-op Bank registers Ksh5.1 billion profit in first quarter of 2019

Posted on by David Kingsley

Co-operative Bank Group has registered a pre-tax profit of Ksh. 5.1 billion for the first quarter of 2019 compared to Ksh. 4.9 billion recorded in the first quarter of 2018.

This is a steady growth of 4.4 per cent against the backdrop of a challenging economic environment in the period. Profit after tax was Ksh 3.6 billion compared to Ksh 3.4 billion in the previous year.

The group continues to leverage on the benefits of the “Soaring Eagle” Transformation Agenda that has re-tooled and equipped the business with added competitive edge as reflected in the sustained growth in market share across all market segments and Counties; which has progressively deepened the Financial Inclusion model rooted in the over 15 million-member co-operative movement, that is the face of Kenya.

Cooperative Bank Group MD Gideon Muriuki (right) and Chairman Stanley Muchiri

The total non-interest income increased by 19.1 per cent from Ksh. 3.5 billion to Ksh. 4.2 billion with interest income from government securities increasing by 39.6 per cent from Ksh. 2.0 billion to Ksh. 2.8 billion.

The operating income grew by 1.7 per cent from Ksh. 10.9 billion to Ksh. 11.1 billion while total operating expenditure decreased by 1.2 per cent from Ksh. 6.1 billion to Ksh. 6.0 billion as a result of prudent cost management strategy and enhanced efficiency.

Assets grew by Ksh. 27.9 Billion (+7 per cent) to Ksh. 425.7 billion compared to Ksh. 397.8 billion in the same period last year.

Net loans and advances book remained relative stable at Ksh. 251.6 billion.

Investment in government securities grew by Ksh 29.0 billion (+38.6 per cent) to Ksh. 103.9 billion compared to Ksh. 75.0 billion in first quarter of 2018.

Customers’ deposits grew by 7.4 per cent from Ksh. 295.9 billion to Ksh. 317.8 billion.

Borrowed funds from development partners grew by Ksh. 3.1 billion (+14.9 per cent) to Ksh. 23.7 billion compared to Ksh. 20.7 billion in the same period the previous year.

Shareholders’ funds grew from Ksh. 67.9 billion to Ksh. 72.8 billion.

The bank closed the quarter with a sound capital base, with adjusted total capital against total risk-weighted assets standing at 16.5 per cent, which is 2.0 per cent above the statutory minimum of 14.5 per cent.

Also read: 5 reasons why the MCo-op Cash app is the best first resort when you’re in a tight financial spot

Through its multi-channel strategy, the Bank has successfully moved 88 per cent of all customer transactions to alternative delivery channels that include self-service kiosks in 155 branches, an expanded 24-hour contact centre, mobile banking, 585 ATMs, internet and over 11,600 Co-op Kwa Jirani banking agents.

A successful universal banking model and the implementation of sales force effectiveness has seen the Group serve 8.2 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 over 4.3 million customers registered and 1.2 million loans worth over Ksh. 5.1 billion disbursed as at the close of Q1 2019.

Over 26,800 customers have taken up the rolled out MSME packages that Co-op Bank launched in 2018 and 1600 have been trained on business management and planning.

The bank has earmarked Ksh. 15.2 billion for MSME lending and to date we have disbursed Ksh. 3.2 billion under the program.

These include 24,167 mobile unsecured business e-loans and 450 supply-chain loans disbursed in Q1 2019 alone.

Co-op Bank’s unique model of retail banking services through Sacco FOSAs has enabled it to provide wholesale financial services to over 464 FOSA outlets, and issue over 1 million Sacco-Link cards.

Co-operative Bank of South Sudan that is a unique Joint Venture (JV) partnership with Government of South Sudan (Co-op Bank 51 per cent and GOSS 49 per cent) made a profit before tax of Ksh. 1.7 million in Q1 2019, which was 28.7 per cent higher than Ksh. 32.4 million posted in 2018.

Co-op Bank Foundation has also provided scholarships for 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 7,689 students since the inception of the program.

Co-op Bank Headquarters
Co-op Bank Headquarters

Co-op Bank organizes workshop for CEOs to discuss technology and innovation for sustainable development

Posted on by David Kingsley

Co-operative Bank, through its subsidiary, Co-op Consultancy & Insurance Agency on Thursday concluded its Annual National Co-operatives workshop where CEOs from across the country deliberated key issues concerning the industry.

The workshop themed Co-operatives Tomorrow: Technology and Innovation for Sustainable and Inclusive Development was presided over by the PS State Department for Co-operative Development, Mr. Ali Noor Ismail, who in his keynote speech highlighted the importance of leveraging technology in Co-operatives to spur innovation.

Speaking at the workshop, Mr. Noor Ismail explained that co-operatives are operating smarter today than they did in the past due to the adoption of technology.

“With adoption of technology in Co-operatives, we have seen new types of products introduced that meet more specific needs of members, improve liquidity in Saccos and even yield better margins for Co-operatives,” he stated.

Co-op Bank Director, Co-operatives Division, Mr. Vincent Marangu (left) with Mr. Noor Ismail, Principal Secretary State Department for Co-operative Development

The three-day workshop focused on engaging the CEOs on how to revolutionize their societies and operate within the competitive business environment with the constantly changing market dynamics. The bank’s subsidiary Co-op Consultancy’s main role is to enhance the institutional capacities of co-operative societies, who are the core stakeholders of the bank.

Speaking at the workshop, Coop Bank Director Co-operatives Division, Mr. Vincent Marangu stated that the bank facilitates such workshops every year to create an environment where co-operatives can  deliberate, share learnings and build each other.

“We understand that organizations are faced with numerous institutional challenges which they must address in order to attain their goals in the dynamic business environment in the country,” he said.

This year’s workshop covered a wide range of topics such as building technological capabilities in Co-operatives which will help the participants think strategically about technology beyond adoption and managing the associated risks. It had a panel discussion focusing on three key areas, building capacity in terms of strategy, governance and security.

It also covered demystifying digital transformation in Co-operatives; many Co-operatives have carried out system changes and adopted new technologies but they are not fully digital. The session gave a breakdown what digital transformation is and demonstrate what the Co-operatives need to do to achieve it. They also covered management and expansion of the Agricultural value chain, this session challenged the participants to think further on what they can do to expand their value chain and introduce new alternatives to their existing business models.

The Co-operatives CEOs  also covered managing technology partnership, leadership and coaching and the Impact of the Proceeds of Crime and Anti Money Laundering Act (PoCAMLA) to bring on board Deposit-taking SACCOs into mandatory reporting of large transactions in respect to prevention of money laundering and combating the financing of terrorism.

This workshop is one of several trainings offered to Co-operatives by Co-operative Bank, through Co-op Consultancy & Insurance Agency, to help them in capacity building, development and growth.

The vibrant and dynamic co-operative movement in Kenya is a key player in the economy, controlling about over 40 per cent of Kenya’s gross domestic product (GDP).

The Co-operative Societies in Kenya employs more than 500,000 people, besides providing opportunities for self-employment to many more. Savings and credit societies (SACCOs), the fastest growing sub-sector in the movement, controls over 30 percent of national savings.

Co-operative House, Headquarters of the Co-operative Bank of Kenya

Co-op Bank sponsors its customers to China for business exposure

Posted on by David Kingsley

Co-operative Bank, through its MSME offering, has taken customers to Shanghai and Yiwu in China for a business networking trip. The trip will enable customers to create linkages for overseas business and build partnership opportunities as well as purchase various items at a highly discounted costs which will enable them to pass the discounts to their customers making their products competitive.

Also read: Isuzu East Africa & Co-operative Bank announce ‘daily repayment’ asset finance scheme

The customers, drawn from across the country, will tour China, specifically Shanghai and Yiwu. In Shanghai, they will visit one of the world’s busiest shopping streets, Nanjing and in Yiwu, they will visit Futian Market which is the biggest hub in China for all kinds of products. It is divided into 5 districts, each with various sections selling specific products. In this trip, the customers will get to meet suppliers of electric appliances, electronics, hardware tools & fittings, telcom equipment, vehicles and many others.

They will further visit markets for office supplies, sports equipment, stationery, cosmetics, beauty/salon equipment, fashion accessories, beddings, curtains, fabrics, auto & motorcycle accessories, hair ornament & jewellery, festival arts and decorative arts.

Speaking about the business trip, Coop Bank Head of Business Banking, Mr Moses Gitau said it will be instrumental to all the business customers who will travel as they will create linkages for overseas business and partnership opportunities.

Co-operative Bank's Arthur Muchangi and Moses Gitau
Co-operative Bank’s Arthur Muchangi and Moses Gitau

“From our engagement with various business customers, we know that their business needs go beyond finance; they also need exposure and networking opportunities with business practitioners, in Kenya and beyond the border especially in successful countries like China,” he stated.

Later this year, in October, the bank will organize another business networking trip to Guangzhou for the 126th Canton Fair. This is the largest trade fair in China with the largest assortment of products, largest attendance and with the largest number of deals made at a fair. It is a unique experience where participants get to mix business with leisure. This trip is open for all business customers looking to travel to China for business.

Also Read: Co-op Bank will finance and help you import your dream car, here’s how

Co-operative Bank recently revamped its MSME offering and now has an arm in the bank which deals specifically with non-financial services for its MSME business banking customers. The bank retooled and refreshed the product offering to make it more responsive to the needs of MSMEs. They have made available a substantial kitty of Ksh. 15.2 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 are able to borrow up to Ksh. 2 million via their mobile phone, packaged insurance cover which are 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. These services are available at all Cooperative Bank branches across the country. The vision for this revamped MSME offering from Coop Bank is to grow world class entrepreneurs beyond the Kenyan borders.

Cooperative Bank Group MD Gideon Muriuki (right) and Chairman Stanley Muchiri

Co-op Bank will finance and help you import your dream car, here’s how

Posted on by David Kingsley

Co-operative Bank has formed a joint partnership with World Navi Co. Ltd, a leading Japanese exporter of used units to Africa and Europe, launching a financing scheme to enable Kenyans to import second-hand cars.

Co-op Bank’s Moses Gitau with World Navi Co. Ltd Managing Director Yoshifumi Sawada during the signing of the deal

The partnership guarantees a 100pc safe and reliable vehicle importation including three months warranty on the engine & transmission, accident free & genuine mileage certificates and zero risk of stolen parts or non-performance.

In line with the Bank’s efforts to build a strong offering, this service will help customers to import quality second-hand vehicles at affordable prices through a secure platform from key source markets in Japan, UK and Thailand as well as secure up to 80% financing for the purchase.

With this service, the Bank will also finance approved motor vehicle dealers to enable them to import vehicles on behalf of their customers.

Co-op Bank’s Moses Gitau with World Navi Co. Ltd Managing Director Yoshifumi Sawada during the signing of the deal

Speaking during the agreement signing with World Navi at a Nairobi Hotel on Friday, the Head of Business Banking at Co-operative Bank, Mr Moses Gitau said the partnership creates a end-to end solution for people to import quality second hand vehicles at affordable prices.

“Majority of Kenyans depend on the import second-hand vehicle market to own a car but one of the prevailing issues plaguing the public is the anxiety of finding a reliable agent who will ensure they get what they are paying for,” he stated

Speaking at the same event, World Navi Co. Ltd Managing Director, Mr Yoshifumi Sawada said the partnership intends to meet the local market’s needs on used vehicles which will reach out to the majority of the market areas across the entire country through its 150 branches.

“Our company is offering its 20 years’ experience in the business of exporting used cars globally with the assurance of every customer receiving high quality cars through the unique: 3 months warranty on engine and transmission which no other exporters can offer,” he said.

The service is open to both Co-op Bank customers and non-customers wishing to import vehicles using either their own funds or looking to be financed by the bank.

For customers purchasing the vehicle using their own funds, they would identify the car on the World Navi’s website, place the order then receive a general pro-forma invoice.

The customer will then deposit the whole amount into an internal account with the bank, where it will be held until the car is shipped and delivered to them.

Co-op Bank’s Moses Gitau shakes hands with World Navi Co. Ltd Managing Director Yoshifumi Sawada after signing the deal

Customers seeking financing from the Bank to buy the vehicles, would follow the same process in identifying and ordering the car, however on receipt of the general pro-forma invoice they would start the loan application process with the bank.

Once approved, the customer will receive an indicative offer letter and would then proceed to deposit their own contribution (at least 20%) into an internal account and the Bank will cover the rest, enabling the import agent to ship and deliver the vehicle.

The vehicle purchase will be handled wholly by World Navi; they will purchase the vehicle on behalf of the customer, carry out quality checks and ship the car to Kenya.

The documents will be consigned to the bank, who will release them to the clearing agent to facilitate clearing and registration following which the vehicle is delivered to the customer. Once the customer receives the vehicle they will execute a delivery note confirming receipt. The minimum car purchase amount is Ksh. 500,000/-.

Co-operative Bank firmly believes that forming partnerships that benefit the customer is key to success. Before providing a financial solution, Co-op Bank will ensure that they weigh the business need and the prevailing market situation versus the opportunity and customers needs. This ensures that the partnership deal meets the customer needs and keeps up with the ever changing market.

 

3 things that will help you spice up your Easter weekend

Posted on by David Kingsley

The Easter is break finally here and with it, a majority of Kenyans are set to enjoy a four day break from their usual busy schedules. So, the question is: how are you planning to spend the holiday?

Maybe you are going on a trip out of town with your significant other, maybe you are travelling upcountry to spend time with your relatives, maybe you’ll treat yourself to a sumptuous meal at your favourite eatery and call it a day.

However you choose to spend your Easter holiday, rest assured that you can access your funds at Co-operative Bank and transact wherever you are and at whatever time you feel like.

Co-operative Bank

You have a wide range of options at your disposal. This is so as to ensure that you continue to enjoy uninterrupted services and have stress-free holiday.

Let’s take a look at some of the services that you’ll continue to enjoy during the Easter period and how each of them can come in handy wherever you will find yourself during this festive period.

1. Co-operative Bank Card – If you are travelling out of town or out of the country, don’t forget to carry your Co-op Visa Card because it will help you in so many ways.

With the card, you can pay for goods and services at merchants who accept Visa cards, you can even pay at fuel stations.
What’s more is that you will transact at no extra cost. You’ll just bear the costs of the items that you are purchasing or the services that you are getting.

While using your Visa Card, it’s important to remember that you should not share your PIN with anyone, write it down anywhere and keep your card safe.

2. Co-op Kwa Jirani Agents – Co-operative Bank ATMs are all over the country. However, let’s say you are facing challenges accessing an ATM machine, this is something that should not give you a reason to worry. You can still access a number of services and transact through the Co-op Kwa Jirani Agents which are open 7 days a week, including public holidays.

Some of the services that are available at Co-op Kwa Jirani Agents include; withdrawing and depositing money, transferring money to another account, paying fees and utility bills checking your balance. You can even access a mini statement which will help you track your expenses.

Co-operative Bank

3. MCo-op Cash Services – This can be accessed by downloading the MCo-op Cash app from Google Play Store or the iOS App Store. You can also dial *667# on your phone.

Some of the services you can access include; loan facilities, withdrawing cash, bank transfers, paying utility bills and what have you.

As you enjoy your Easter Holiday remember that the services that are offered by Co-operative Bank will still be accessible through this period. You can access them using any of the three options above.

Isuzu East Africa & Co-operative Bank announce ‘daily repayment’ asset finance scheme

Posted on by David Kingsley

Wednesday 27th March 2019, Nairobi: Leading local vehicle assembler Isuzu East Africa (Isuzu EA) and Co-operative Bank of Kenya, have today announced a daily repayment asset finance partnership that seeks to address financial challenges faced by customers who reconcile their profits and losses daily.

The partnership, which is the first ever in Kenya, offers customers an option to repay their loans on a daily basis and is expected to take away the anxiety of an expected huge amount payment required at the end of the month, making it of the easiest and most affordable way to own Isuzu pickups and trucks.

Speaking on this development, Isuzu EA Managing Director Rita Kavashe noted that this program provides an opportunity for daily reconciliation customers to invest and grow their businesses.

“Our decision to partner with Coop Bank was informed by their business DNA, dealing with our customer base, the SMEs, their deep understanding of customer cash generation; and experience with SME customers’ business cycles. Today, we are happy to announce to a partnership that will see SMEs enjoy a raft of benefits,” said Rita.

“We strongly believe that this partnership will enable SMEs grow their business without affecting their cash flow,” added Rita.
Co-operative Bank Director for Retail & Business Banking, Mr. Arthur Muchangi emphasized the need for SMEs to take this opportunity to re-tool and renew their motor vehicle fleet at very affordable terms.

“Our message to customers is simple; if you desire to purchase an Isuzu bus, an Isuzu truck or a pick-up such as the famous D-Max, this is the best time. Through this partnership between Isuzu and Co-op Bank, customers will get up to 95% financing to purchase the vehicle of their choice, and in addition be given a whole two months to use the vehicle before they begin repaying the loan. This will give customers space to generate cash to service the loan, which is to be repaid over an extended period of five years every day. For those Isuzu customers who also wish to boost the working capital of their business, we are providing an additional loan of Ksh 300,000 to be repaid in 12 months,” said Mr. Muchangi.

Mr. Muchangi added that the offer comes with a most reasonably-priced comprehensive insurance package priced at 4.75% of vehicle value (that includes Political Violence & Terrorism). In addition, Insurance Premium Finance is available to allow customers pay insurance premiums in easy instalments.

Isuzu EA Managing Director Rita Kavashe noted that the partnership with Co-op Bank was crucial, adding that Isuzu EA aims to make it easier for SMEs to access financing for their Isuzu products that SMEs strongly rely on to build, grow and sustain their businesses.

“Last year, we ran a series of ground activations to understand customer needs and expectations. And we took note of a group of customers that have a different business operation system that runs on a daily reconciliation system. We therefore took it upon ourselves to develop an innovative partnership that will benefit them and enable them to grow their business exponentially. For example, with 95% financing and 60 months repayment period, the daily repayment for an Isuzu D-Max pick-up is only Ksh 2,577,” explained Rita.

This new and innovative partnership is targeted to help farm produce traders at Marikiti, meat traders from Burma market, hardware store owners, mitumba traders, upholstery traders from Kamukunji and Gikomba market areas.
In the partnership, Isuzu customers are set to enjoy Ksh 300,000 working capital to empower their business payable in 12 months, a 60-day repayment holiday that will allow SMEs to generate monthly instalments, the lowest market negotiation fee of one per cent and the longest re-payment period of 60 months in the market.

Co-operative Bank records Ksh 18.2 billion profit in 2018

Posted on by David Kingsley

The Co-operative Bank Group is delighted to report a Profit before Tax of Kshs 18.2 billion for Full Year 2018 compared to Kshs 16.4 billion recorded in 2017, an impressive growth of 11% against the backdrop of a challenging operating environment in the period. Profit after Tax was Kshs 12.7 billion compared to Kshs 11.4 billion in the previous year.

Our operating model has equipped the business with added resilience to achieve the set strategic objectives, as reflected in the commendable performance in the period under review.

The Group continues to leverage on the benefits of the “Soaring Eagle” Transformation Agenda that has re-tooled and equipped the business with added competitive edge as reflected in the sustained growth in market share across all market segments and Counties, which has progressively deepened our celebrated Financial Inclusion model rooted in the over 15 million-member co-operative movement, that is the face of Kenya.

Key financial highlights include;-
1. Profit & Loss
• Total interest income improved by 7% from Kshs 40.37 billion to Kshs 43.02 billion on account of; Interest income from government securities increasing by 19% from Kshs 8.21 billion to Kshs 9.79 billion and Interest income from loans & advances increasing by 3% from Kshs 31.94 billion to Kshs 32.95 billion.
• Total interest expense remained under tight control, falling by Kshs 300 million from Kshs 12.27 billion to Kshs 12.24 billion. This was despite a 7% growth in deposits indicating improved management of the cost of funds.
• Total operating income grew by 5% from Kshs 41.6 billion to Kshs 43.68 billion.

2. Balance sheet
• Total assets grew by Kshs 26.5 billion (+7%) to Kshs 413.41 billion from Kshs 386.86 billion recorded at the close of year 2017.
• Net loans and advances book declined marginally (-3%) to stand at Kshs 245.41 billion compared to Kshs 253.86 billion in 2017.

• Investment in Government securities grew by Kshs 11.03 billion (+16%) to Kshs 80.27 billion compared to Kshs. 69.24 billion in 2017.
• Customers deposits grew by 7% from Kshs. 287.37 billion to Kshs 306.12 billion
• Borrowed Funds from development partners grew by Kshs 2.79 billion (+13%) to Kshs 23.95 billion compared to Kshs 21.16 billion in 2017.
• Shareholders’ funds grew to Kshs 69.86 billion in 2018 that enables the bank to continue to pitch for big ticket deals.

3. Innovative Customer Delivery Platforms
• Through our multi-channel strategy, the Bank has successfully moved 91% of all customer transactions to alternative delivery channels that include self-service kiosks in 155 branches, an expanded 24-hour contact centre, mobile banking, 580 ATMs, internet and over 11,000 Co-op Kwa Jirani banking agents.
• A successful Universal Banking model and the implementation of Sales Force Effectiveness has seen the Group serve over 8 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 4 Million customers registered.
• Our unique model of retail banking services through Sacco FOSAs enabled us provide wholesale financial services to over 464 FOSA outlets, and issue over 1 million Sacco-Link cards.

4. Regional Expansion
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%) made a Profit before tax of South Sudanese pounds (SSP) 897.3 Million in 2018 which was 368% higher than SSP 192 Million posted in 2017. This performance however translated to a monetary loss of Kshs 16.4 million in 2018 attributable to hyperinflation accounting occasioned by currency devaluation of the South Sudanese pound.

5. Corporate Social Investment
Co-operative Bank Foundation has provided Scholarships for 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 7,002 students since inception.

6. Accolades
The Group was recognised by Banker Africa, East Africa Awards 2018 with three key awards, namely the Best Retail Bank in Kenya, The Best SME Bank in Kenya and the Best Investment Institution in Kenya. This is a re-affirmation of the bank’s unique position as a bank that positively influences the lives of the majority of Kenyan citizens.

The Group was also recognized by Europe Middle East & Africa Finance (EMEA Finance) – African Banking Awards 2018 as the Best Bank in Kenya and Best Product Launch in Africa (MCo-op Cash v4.0 update) while International Finance recognized the bank with Best Retail Bank in Kenya and Best Banking CEO, Kenya for Dr. Gideon Muriuki.

7. Dividend

The Board of Directors has recommended for approval by the AGM the payment of a dividend of Kshs. 1.00 per every ordinary share held subject to approval by the Capital Markets Authority. This will represent a growth of 25% compared to a dividend of Kshs 0.80 paid in 2017.

Conclusion

The Co-operative Bank Group will continue to deliver strong performance as we focus on the growing 8 million account-holder base, digital banking, the basket of innovative financial solutions, efficient delivery of services and multichannel access to retain market position and deliver business growth and profitability in the days ahead.

DR. GIDEON MURIUKI – CBS, MBS
GROUP MANAGING DIRECTOR & CEO

Reasons why the MCo-op Cash app is the best first resort when you’re in a tight fix

Posted on by David Kingsley

When you are in a tight financial spot, you can feel like you are drowning. You struggle to clear your child’s school fees and before the end of the day, you receive a text from your internet service provider that bill is due. When you get home, you are plunged into darkness because you forgot to buy electricity tokens.

When you look at the calendar, it dawns on you that pay day is still far away so you are forced to cut down costs. Soon enough, you realize that cutting expenses won’t work, you need things like electricity to get around, so you decide to reach out to some friends to bail you out.

Unfortunately, your friends inform you that their hands are tied so they can’t help you even if they wanted to. When you are on the verge of giving up, you remember the MCo-op Cash salary loan adverts that you have been seeing on TV and social media.

You decide to give it a try since you’ve heard so many good things about the MCo-op Cash app. It exceeds your expectations when you use it for the first time. After using it for a while, you can attest that it’s the best first resort when your money is that tight because of many reasons including;

1. High loan limit – the MCo-op cash salary loan allows you to apply for up to KSh. 200,000 i.e. you can access 1.5 times of your net salary. For example, if your net salary is KSh. 30,000, you can apply for up to KSh. 45,000. The higher your salary, the higher the loan limit.

2. Flexible repayment schedule – you can pay the loan at once in one instalment or spread it over three months and pay a small part of it every month. i.e. if you owe 45,000, you can pay it in 3 monthly instalments of KSh. 15,000.

3. Low interest rate – the loan has a one-off fee of 8% of the amount that you have requested for. The interest is deducted from the loan before the money is deposited into your MCo-op cash account.

4. Instant crediting to your account – when your loan is approved it’s deposited into your MCo-op cash account instantly. This means that you can access the funds immediately and get rid of the expense that has been bugging you.

5. It’s hassle-free – all you need to do is to register for MCo-op Cash, which is free of charge, and link your salary account at the branch that is closest to you. After this, you are all set to apply for a loan. You don’t need approvals from your employer or guarantors.

The next time you find yourself in a tight spot,  remember MCo-op Cash salary loan has your back. You can access the service dialling *667# on your phone or downloading the app from Google Play Store or the iOS App Store.

Co-operative Bank rolls-out MSME forums to counties, starting with Nakuru

Posted on by David Kingsley

Co-operative Bank has kicked-off a countrywide campaign of engaging Micro, Small & Medium-sized Enterprises (MSMEs) in the counties, beginning with Nakuru County. The forums focus on training and equipping business clients with the skills and strategies to grow their businesses in the changing operating environment in the economy.

These forums are part of the US$150 million (Sh15.2 Billion) partnership program between Co-op Bank and the International Finance Corporation (IFC) launched in mid-2018 to provide Affordable Financing and Business Training to Kenyan MSMEs.

In partnership with IFC, Co-op Bank has expended substantial resources on customer engagement and research work to understand the dynamics of this critical business segment. The MSMEs are the bedrock of wealth creation in Kenya as they account for over 90 per cent of Kenya’s private sector, employing over 15 million Kenyans in both the 1.7 million registered and 7 million unregistered businesses.

Simon Mungai of Rivanas Supermarket Nakuru (centre) with Ms. Loise Ngugi of Gold Front Ltd (left) and Moses Gitau, Head of Business Banking at Co-op Bank at Co-op Bank’s SME Customer Engagement Forum at Sarova Woodlands Nakuru on Friday 8 March 2019.

Speaking during the Nakuru County MSME Customer Networking Forum at the Sarova Woodlands, Nakuru today, the Head of Business Banking at Cooperative Bank, Mr Moses Gitau said,

“In 2017 the Bank decided to revamp our MSME offering, ensuring we are flexible to meet the ever changing business needs. We have made available the Sh15.2 billion kitty for a package of loans that include an unsecured business loan, a first of its kind in Kenya, E-Credit through our MCo-opCash App where businesses are able to borrow up to Ksh. 2 million via their mobile phone, packaged insurance cover which are 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.”

Speaking on key learnings from his entrepreneurship journey, David Kahura of Lanet Flour Mills said,

“There is need for business people to have a hands-on approach to their business, training is key; always seek to better yourself, know how the industry works, understand government regulations especially the ever changing quality requirements and most importantly get a good financial partner who can walk the journey with you, one who understands your needs.”

Following the networking forum, Ms Loise Ngugi of Gold Front Ltd, one of the panellists said,

“My experience on the ground aligns with trends shared by the bank; the under-40 customers are the ones who control the market and as entrepreneurs we need to keep up with the trends.”

The Customer Networking Forums are a key part of Co-op Bank’s MSME program as it is widely acknowledged that MSMEs need the insights and training on economic matters that have a direct bearing on their business, and which they have little or no control over.

The forums will be held across the country, and feature a detailed presentation by the bank economist on the opportunities in and out of the country that MSMEs can tap into and the ways the bank is working to enable customers to seize them. This is followed by a panel discussion with bank representatives and successful entrepreneurs, concluding with a networking session.

In line with the Bank’s efforts to build a strong offering for the MSMEs and their customers in general, Co-operative Bank recently launched a partnership with Isuzu East Africa Ltd that offers an affordable means of purchasing Isuzu vehicles that are very popular with MSMEs. Through the partnership, customers will get upto 95% financing to purchase the vehicle of their choice, and be allowed a whole two months to use the vehicle before they begin repaying the loan. This will give customers the space to generate cash to service the loan, which is to be repaid over an extended period of five years.

For those Isuzu customers who also wish to boost the working capital of their business, an additional loan of Ksh 300,000 to be repaid in 12 months will be provided. A comprehensive insurance package priced at 4.75% of vehicle value (that includes Political Violence & Terrorism) and Insurance Premium Finance is also available to allow customers pay insurance premiums in easy instalments.

To effectively engage this target the bank has trained its staff at the branches to identify the different needs customers have and correctly match them to relevant financial solutions. The vision for the Bank’s MSME offering is to grow world-class entrepreneurs beyond the Kenyan borders.

Buying Isuzu has just become easy as Co-operative Bank and Isuzu East Africa announce asset finance partnership

Posted on by Martin Oduor

If you ever dreamed about owning Isuzu double cabin such as the famous D-Max, or any Isuzu pickup, bus or truck, then you dream has just been made a reality by Co-operative Bank and Isuzu East Africa (Isuzu EA) asset finance partnership.

Today Wednesday 30th January 2019, Isuzu East Africa (Isuzu EA) and Cooperative Bank of Kenya announced an asset finance partnership that seeks to address Small and medium-sized enterprises’ (SMEs) challenge of access to finance and acceleration for business growth.

Isuzu customers are now set to enjoy Kes 300,000 working capital to empower their business payable in 12 months, a 60-day repayment holiday that will allow SMEs to generate monthly instalments – the lowest market negotiation fee of one per cent and the longest re-payment period of 60 months in the market.

95% financing

Co-op bank Director for Retail & Business Banking Mr. Arthur Muchangi stressed that through the partnership Kenyans seeking to buy Isuzu models will get up to 95% financing to purchase the vehicle of their choice.

“Our message to customers is simple; if you desire to purchase an Isuzu bus, an Isuzu truck or a pick-up such as the famous D-Max, this is the best time. Through this partnership between Isuzu and Co-op Bank, customers will get up to 95% financing to purchase the vehicle of their choice, and in addition be given a whole two months to use the vehicle before they begin repaying the loan. This will give customers space to generate cash to service the loan, which is to be repaid over an extended period of four years. For those Isuzu customers who also wish to boost the working capital of their business, we are providing an additional loan of Kes 300,000 to be repaid in 12 months,” said Mr. Muchangi.

Co-op bank and Isuzu East Africa top honchos during the signing of the partnership
Co-op bank and Isuzu East Africa top honchos during the signing of the partnership

Mr. Muchangi added that the offer comes with a most reasonably-priced comprehensive insurance package priced at 4.75% of vehicle value (that includes Political Violence & Terrorism).

Isuzu EA Managing Director Rita Kavashe noted that the partnership will enable customers invest back in their business without affecting cash flow growing their business.

“SME businesses in Kenya have suffered for the last 18 months due to the prolonged election cycle and slow-down of financing to this sector by banks. This has drastically affected the SMEs’ cash flow and ability to invest in their business,” said Rita.

 

 

 

 

 

Co-op Bank Fleet gets off to a roaring start with a Kes 890 million government fleet deal

Posted on by Martin Oduor

Co-operative Bank’s joint leasing venture with South African logistics firm Super Group is set to deliver a fleet of 125 vehicles to the Ministry of Interior, the National Police Service and the Prisons Department.

The The new leasing firm known in short as ‘Co-op Bank Fleet’ inked its first leasing deal with the government which is worth over Kes 890 million.

The Co-operative Bank is the financier, with Co-op Bank Fleet arranging the leasing in collaboration with motor vehicle dealers Isuzu East Africa Limited who are to deliver the fleet of 125 vehicles. The fleet comprises of trucks, pickups and buses.

Support customers to acquire assets

Leasing is gaining traction in Kenya with the government setting the pace notably by opting to re-tool, equip and modernize the National Police Service by way of leasing.

Experts say the availability of leasing implies that it does not make commercial sense any longer to buy assets to own, whereas you can hire to use them as and when you need them.

Co-operative Bank Group Managing Director and CEO Dr. Gideon Muriuki said that the leasing business provides an opportunity for the bank to better support customers to acquire the assets, technologies and equipment they require at the same time enable the bank diversify its income streams.

Experts also point out that sale and lease-back allows organisations to shed heavy cost of carrying assets in their balance sheets, but still have access to use those assets. This is by selling off the assets they already own, and then simultaneously lease them back to use.

 

 

 

Paying school fees made easy by Co-op kwa Jirani agent

Posted on by Martin Oduor

‘Back to school’ is usually a nightmare for parents. Smart parents are however avoiding the long queues at the banking hall to pay school for their children using other convenient means.

Co-op kwa Jirani has provided an avenue for parents to pay school fees without making the trip to bank branches. Banking at a Co-op Kwa Jirani agent is as good as banking at a Co-op bank branch.

The good thing about Co-op kwa Jirani is that it offers several services including common payments like NHIF and county government payments.

Over 7 services

Co-op kwa Jirani services include:

1.School / College / University Fees payments (You can pay via cash or a Co-op Visa Card)

2. Cash Deposits (To Co-op Account / SACCO Account / Fethalink)

3. Cash Withdrawals (From Co-op Account / SACCO Account / Fethalink)

4. Funds Transfer (To Co-op Account / SACCO Account / Fethalink)

5. Making utility bill payments

6. Checking your account balance (Co-op Account, Sacco Link account, and KenSwitch affiliated banks)

7. Accessing your account mini-statement (Co-op Account, Sacco Link account, and KenSwitch affiliated banks)

Other payments that you can make at a Co-op Kwa Jirani agent include:
NHIF Payments
County Payments
Other Government Payments, e.g. KRA

10 things to note about Co-operative Bank’s 4.9 billion profit for the first quarter of 2018

Posted on by Martin Oduor

The Co-operative Bank has made a profit before tax of 4.9 billion shillings between January and April 2018,  a 9 per cent rise.

The profit was made as a result of strong growth in earning assets and cost control. The bank’s customer numbers continue to grow, now standing at 7.2 million

There are several other factors to note about Co-operative Bank’s 4.9 billion profit for first quarter of 2018, take a look below:

1. Co-op Bank closed the quarter with a good capital base, with adjusted total capital against total risk-weighted assets standing at 17.3%, which is 2.8% above the statutory minimum of 14.5%.

2. Co-op Bank’s total assets is fast approaching Kes 400 billion mark, now standing at Kes 397.8 billion.

3. Then bank continues lending to customers, with Net loans and advances growing by Kes 6.97 billion to Kes 252.8 billion.

4. Co-op Bank’s total operating income grew by 8.4% to Kesh 10.9 billion.

5. Co-op’s customer deposits continue to grow to stand at just under Kes 300 billion.

Alternative delivery channels

6. Up to 87% of all customer transactions now being done at  Co-op Bank’s alternative delivery channels (MCo-op Cash, Co-op visa cards, Co-op mVisa and Kwa Jirani Agent)

7. The Co-op Bank’s Mco-op Cash mobile wallet continues to be popular, with over 3.7 Million customers registered, and growing.

8. Co-op Bank’s partnership with Saccos enables the bank to serve customers through over 560 FOSA outlets, and issue over 1 million Sacco-Link cards.

9. Co-operative Bank of South Sudan has turned around and made a profit of Kshs 32.4 million compared to a loss of Kshs 34.7 in quarter 1 of 2017.

10. Co-op Bank through the Co-op Bank Foundation continues to offer full education scholarships to gifted but needy students throughout Kenya, and has so far supported 6,303 students since the inception of the program in 2007.

 

48 days to world cup kick-off! Co-operative bank offers lucky Kenyans an all expense paid trip to Russia

Posted on by Martin Oduor

The world’s attention is shifting to Russia as world’s most loved football tournament is set to start in just 48 days time. Russia will host the 2018 World from 14 June to 15 July.

The Co-operative bank of Kenya has offered to sponsor Kenyan football fans to travel to Russia for the the global showpiece. Co-operative bank has partnered with Visa International, which has sponsored rights for the Fifa World Cup 2018, to take Kenyans to Russia.

Co-op Visa cardholders stand a chance to win an all expense paid trip to Russia to watch the world cup by just using their cards for any transaction.

A draw will be done and one lucky winner will get 2 tickets to the World Cup. The lucky winner will get to watch a match in Russia 2018 FIFA World Cup right in the stadium, as well as get access to match day hospitality events.

How to participate

Use your Co-op Visa Card to pay for any goods and services. The transaction details will be captured in the bank system, therefore there is no need to complete any forms.

Winners will be randomly picked in weekly draws. The more times a cardholder participates, the more their chances of winning. Tuendeni Russia!

 

 

 

Top 7 Kenya’s most loved companies in 2018 – according to mSurvery

Posted on by Martin Oduor

mSurvey is a platform that allow businesses to measure their Net Promoter Score (NPS) using SMS conversations with their customers.

mSurvey compiles a quarterly report on customer loyalty in Kenya which shows NPS scores by companies. Over 100 companies operating in Kenya are using the NPS score to have access to industry standards they can work towards or exceed.

A report by mSurvey for the first quarter of 2018 lists companies that are most loved by Kenyans based on customer loyalty.

NPS is the most recognized measure of customer loyalty, the score is based on the answers to the question. The survey covered different sectors including: energy, telecommunication, digital TV providers, banking, retail trade, insurance, and health facilities.

Co-op banks leads in banking

In banking, the Co-operative Bank of Kenya emerged as the leading financial institution in customer loyalty. Transaction fees, customer service and accessibility are some of the factors that made Co-op bank emerge with most loyal customers in the banking category.

In energy sector Total is has the most loyal customers, while in telecommunications Telkom Kenya carried the day. In TV and Cable services DSTV has the most loyal customers, Chandarana supermarket leads in retail, in insurance UAP Old Mutual has the most loyal customers while in health facilities sector Aga Khan hospital is the leader in customer loyalty.

 

 

 

 

 

 

This is the easiest way to travel to Russia for 2018 World Cup without paying a single coin

Posted on by Martin Oduor

The 2018 FIFA World Cup is scheduled to take place in Russia from 14 June to 15 July 2018. Traveling to Russia is extremely expensive but there is a promotion to take Kenyan football fans to world cup.

Visa International has sponsored rights for the Fifa World Cup 2018 which they have extended to Co-operative bank of Kenya as a key business partner.

Co-op Visa cardholders now stand a chance to win an all expense paid trip to Russia to watch the world cup. Co-op bank will reward one lucky winner with 2 tickets to the World Cup.

The lucky winner will get to watch a match in Russia 2018 FIFA World Cup right in the stadium, as well as get access to match day hospitality events.

How to participate

Use your Co-op Visa Card to pay for any goods and services. The transaction details will be captured in the bank system, therefore there is no need to complete any forms.

Every entry will generate an SMS message confirming that the customer has been entered into a draw.Winners will be randomly picked in weekly draws.

The more times a cardholder participates, the more their chances of winning. Tuende Russia wasee!

 

 

 

 

 

Co-op Bank records Kes 16.4 billion profit amidst a challenging economic environment

Posted on by Martin Oduor

2017 was generally a bad year for business in Kenya. Co-op Bank managed to record a profit before tax of Kes 16.4 billion for full year 2017 in a very challenging economic environment in the period.

The 16.4 billion is however a drop in the bank’s profit. Co-op Bank reported a Sh17.7 billion profit in 2016, therefore the Sh.16.4 billion profit for 2017 is a marginal 7.3% drop.

The bank is therefore pleased with the 2017 performance against the backdrop of one of the most challenging operating environments that business had to contend with in the year, with interest rate caps and lower economic growth in an election year.

The good performance represents the tangible benefits arising from the bold ‘Soaring Eagle’ Transformation Project that the bank has been implementing since 2014 with a clear focus on improving operating efficiencies, sales-force effectiveness and innovative customer delivery platforms.

Notably, the cost-to-income ratio has progressively improved from a high of 59% in 2014 to 52% in 2017.

Notable performance highlights include the following;-

· Total assets grew by Kshs 35 billion (+10%) to Kshs. 386.9 billion.

· Lending to customers continues, with loans growing by Kshs 17 billion (+7%) to Kshs. 253.9 billion.

· Customer deposits grew 9% to Kshs 287.7 billion.

Capital base

· The bank closed the year with a solid capital base, with total capital against total risk-weighted assets at 22%, 7.5% above the statutory minimum of 14.5%.

· 87% of all customer transactions have been migrated to alternative delivery channels, allowing bank staff to spend more time serving customers critical needs as opposed to punching routine transactions.

· The Group now serves 7 million account-holders across all sectors.

· Key focus is on digital banking, with the Mco-op Cash mobile wallet enrolling 3.6 Million customers.

· The Bank continues to grow partnership with the co-operative movement that has expanded the retailing of bank services through 560 Sacco FOSAs and issued over 1 million Sacco-Link cards.

· The Bank Board has recommended the payment of a dividend at the rate of 80 cents per every ordinary share, subject to approval by CMA.

Social causes

· The Bank continues to support worthy social causes through the Co-op Bank Foundation, which has so far supported 6,303 gifted but needy students from all regions of Kenya since the inception of the program in 2007.

The Co-operative Bank Group was a big winner at the Kenya Bankers Association Sustainable Finance Catalyst Awards 2017 where the bank emerged Overall Winner as a result of building a sustainability strategy that enables people, businesses and society to grow in a way that is most sustainable in the long-term.

“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,” said Dr. Gideon Muriuki, Group Managing Director & CEO Co-operative Bank on the award.

8 ways to sort your cash transfers at Co-op Kwa Jirani

Posted on by Martin Oduor

Banking and payments in general have been made easy by Co-op Kwa Jirani agents who are located in estates and villages across the country.

For starters, Kwa Jirani is agency banking by Co-operative Bank which is a convenient and simple banking model that suit your lifestyle.

Thinking of sending money from one Co-op Bank account to another, or making NHIF payments? There is no need to go all the way to a Co-op Bank branch because all these services are offered at Co-op Kwa Jirani.

Easy banking

Banking at a Co-op Kwa Jirani agent is as good as banking at a Co-op bank branch.  Below are eight cash transactions that can be done at Co-op Kwa Jirani:

1.Cash Withdrawals (From Co-op Account / SACCO Account / Fethalink)

2. Cash Deposits (To Co-op Account / SACCO Account / Fethalink)

3. Funds Transfer (To Co-op Account / SACCO Account / Fethalink)

4. School/College/ university Fees payments ( You can pay via cash or using a Co-op Visa Card)

5. You can pay utility bills Utility Bills Payment

6. You can check your Account balance ( Co-op Account, Sacco Link account, and KenSwitch affiliated banks)

7. You get your account mini-statement ( Co-op Account, Sacco Link account, and KenSwitch affiliated banks)

8. Other payments that you can make at a Co-op Kwa Jirani agent include: NHIF Payments, County Payments and other government payments e.g. KRA

Visit the nearest Kwa Jirani agent for easy and convenient services.