Tag: Coop Lipa na Mpesa Till number news

Co-op Bank declares Ksh11.6 billion as profits for the third quarter

Posted on by Kibaki Muthamia

Co-op Bank Group is pleased to report a Profit Before Tax of Kshs. 16.5 Billion for the third quarter of 2021, a commendable 20% growth compared to Kshs. 13.8 Billion recorded in the third quarter of 2020.

This represents a strong Profit After Tax of Kshs.11.6 billion compared to Kshs. 9.8 Billion reported in third quarter of 2020.

The strong performance by the Bank exceeds pre-pandemic performance and is in line with the Group’s strategic focus that supports growth, resilience and agility.

Co-op Bank Group Managing Director Gideon Muriuki during a past press conference (file image)

Key highlights; –

Financial Position; The Group has registered sustained growth as hereunder;

Total Assets grew by Kshs 82 Billion (+16%) to Kshs. 592.9 Billion compared to Kshs 510.9 Billion in the same period last year.

Net loans and advances book grew by Kshs 22.1 Billion (+7.8%) from Kshs.284.2 Billion to Kshs. 306.3 Billion.

Customer deposits grew by 12% from Kshs. 375.5 Billion to Kshs 420.4 Billion.

Borrowed funds grew by Kshs. 17.7 Billion (+67.6%) to Kshs 43.8 Billion from Kshs.26.2 Billion in 2020.

Shareholders’ funds grew to Kshs. 95 Billion (+16%) from Kshs. 82.0 Billion in 2020 enabling us to continue pitching for big ticket deals.

Comprehensive Income

Total operating income grew by 19.2% from Kshs 37.2 Billion to Kshs 44.4 Billion.

Total non-interest income grew by 15.6% from Kshs 13.6 Billion to Kshs 15.7 Billion.

Net interest income grew by 21.3% from Kshs 23.6 Billion to Kshs 28.7 Billion.

Total operating expenses grew by 19.2% from Kshs 23.5 Billion to Kshs. 28 Billion on account of a 50% prudential growth in loan-loss provisions.

Credit Management remains a key focus area aimed at supporting a return to pre-pandemic NPL levels 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 to enhance collection activities.

The Group prudentially increased loan loss provisions to Kshs. 6.0 Billion in the third quarter of year 2021, in appreciation of the challenges that businesses and households continue to face due to the effects of the ongoing pandemic.

A total of Kshs. 49 Billion in loans was restructured during the CBK restructure window that ended on 31st March 2021, with the restructured facilities largely performing as per the realigned agreements.

A Strong Digital Footprint

Through our multi-channel strategy, the Bank has successfully moved 93% of all customer transactions to alternative delivery channels; an expanded 24-hour contact centre, mobile banking, 589 ATMs, internet banking and over 23,000 Co-op Kwa Jirani agency banking terminals.

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.

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 51.3 Billion disbursed year-to-date, averaging Kshs. 5.7 Billion per month.

Over 139,299 customers have taken up the MSME packages that we rolled out in 2018, and 14,665 have been trained on business management skills.

To date we have disbursed over Kshs. 25 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 479 FOSA outlets.

Subsidiaries

Co-op Consultancy & Bancassurance Intermediary Limited posted a Profit Before Tax of Kshs 648.0 Million as at 30th September 2021, riding on strong penetration of Bancassurance business.

Co-operative Bank of South Sudan, a joint venture (JV) partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) returned a monetary loss of Kshs 104 Million in Q32021 attributable to hyperinflation accounting due to currency devaluation of the South Sudanese pound.

Co-op Trust Investment Services contributed Kshs. 92.3 Million in Profit Before Tax in Q32021, with Funds Under Management standing at Kshs. 187.1 Billion compared to Kshs. 123.7 Billion as at Q32020.

Kingdom Bank Limited (formerly Jamii Bora Bank) has contributed a Profit Before Tax of Kshs. 413 Million in Q32021. This is compared to 2020 full year loss of Kshs. 124 Million.

Co-op Bank holds a controlling 90% equity interest in Kingdom Bank, a fully-fledged commercial bank regulated by the Central Bank of Kenya with over 444,000 customers and 17 branches.

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-op Bank Foundation 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 so far supported 8,368 students since the inception of the program.

What are the benefits of exploiting payment options offered by the Co-op Bank e-Commerce platform?

Posted on by Kibaki Muthamia

Co-op bank has greatly revamped their e-Commerce platform to assist businesses meet the increased demand from customers in going cashless.

Going cashless has a lot of benefits. Besides being a vital prop in the fight against Covid-19 which has higher chances of spread in the exchange of cash, there are other benefits.

What’s on offer on the e-Commerce platform?

Online card payments

Boost your sales by integrating into our online card payment solution to receive card payments from customers from different banks and from anywhere in the world. These are Coop Bank ATM’s, Debit or Credit Cards. All payments for purchases or goods delivered can easily be checked off by swiping these cards.

With card payments, it’s easier to track stock levels, and enjoy an easy check out flow.

PDQ/POS

Forget the fancy jargon. This refers to a device which interfaces with payment cards to make electronic funds transfers. They are very popular in malls, supermarkets and fuel stations.

It’s basically a payment terminal. POS stands for Point Of Sale in a business outlet. PDQ stands for ‘Process Data Quickly’.

Coop Bank avails PDQ/POS machines to their clients. These machines greatly boost sales by enabling them receive card payments from customers from different banks.

A trader enjoys timely reports, easier tracking of income and expenses.

Lipa Na M-Pesa Till Number

Co-op Bank takes pleasure in service, as seen by the offer to process a till number for their client’s businesses, at no charge.

This helps a business to receive cashless payments via Lipa na M-Pesa Till Number. The money received through the Till number is deposited directly into the client’s Co-op Bank account.

The payments paid into the account can be accessed anytime via Co-op Bank’s mobile banking platform, ATMs, Co-op Kwa Jirani agents, Internet banking or at any branch across the republic.

M-Pesa Paybill 400200

The M-Pesa Paybill number 400200 enables a trader to receive payments directly into their Co-op Bank account. The money reflects into the account immediately.

One can also check for the payment confirmation via our mobile banking or internet banking platforms. Alternatively, one can receive notifications via text if they have subscribed to the MCo-op Cash SMS notifications.

The funds are accessible anytime via our mobile banking platform, Co-op Kwa Jirani agents, ATMs, Internet banking or at the branch.

M-Coop Cash

This feature is not limited to business owners, but to everyone with a Co-op bank account.

It’s applicable to all needs that require exchange of money. Encourage colleagues, family members, clients or business associates who have Co-op Bank accounts to send money directly account using the MCo-op Cash App or via USSD *667#.

How does a business boost sales?

  • Easier tracking of expenses.
  • Timely business reports.
  • Easy check out flow.
  • Instant payment confirmation via SMS notifications or via internet banking platform.
  • Payments are deposited into Co-op Bank account – easy access anytime via mobile banking platform, ATMs, Co-op Kwa Jirani agents, internet banking and at the branch

Visit the nearest Co-op Bank branch to learn more on e-Commerce, or check online by clicking here.

To dads making selfless sacrifices for their families – Happy Father’s Day!

Posted on by Kibaki Muthamia

My third floor balcony overlooks a fish market. It’s nothing fancy, just a smattering of polythene paper stalls. The smell of fish sometimes is overwhelming, and the view is an eye-sore. But it’s the people in the market that are close to my heart. I like watching the vendors call out to their customers – each lady has a characteristic call – sometimes a whistle, a screech.

The most intense moments happen when the fishermen bring in their catch. This trade calls for a level of roughness, some bit of violence. A lot of the fishermen are usually tipsy, and will likely head back to the drinking dens after the sale.

Over time, I’ve noticed the rough, tipsy fishermen never sell all their catch. There’s always a bunch of fish sewn over their gills set aside from the sale. This is meant for their families. However carefree these men may appear to be, they always have their families in mind.

Their wives and kids come first.

This is what being a father means. From my balcony, I can see the pride and purpose in their steps as they first head home to deliver the daily bread, then stroll out for a stiff drink with their peers.

Back in the days, festive seasons would bring me a heavy cloud of sorrow. Christmas, Easter, occasional birthdays…name them all. I’d dread them. Because we always had to slaughter some animal. In the village, we’d be close to the animals we kept – and it’d take days before I got over it.

This ceremony was a masculine affair, and I still think of the chilly mornings. It was always early, before the children woke up. As the eldest son, sleeping in was a luxury. My father would rap on my door (my brothers and I lived in a separate house) – and whisper hoarsely:

“Ken! Ken! Go get the goat!”

I didn’t like it, but I’d jump out of bed. In those days, you’d be teased for days for a sign of weakness. In those days, it was deemed manly to show no fright at the sight of blood.

I’d grab the chosen goat and disappear into the semi-dark banana grove behind the main house. For a few minutes, I’d kneel with the goat’s head in my arms. I’d try to explain to the goat why it had to go down this way. I always felt like Judas Iscariot, with his 30 pieces of silver.

Shortly, father would appear with a knife and a small bucket. He’d wrestle the goat to the ground, and tie up his feet. He’d ask me to kneel on her back – to hold her down. Then, time would slow down…..

The overpowering smell of blood would hit me first. Then, the smell of sweat, and dung on father’s khaki overalls would join in. Nausea almost always overran me, and I would retch and vomit.

Father would look at me softly, and sometimes pat me on the head.

“Don’t worry, Ken. They die so that we may live”.

It’s been several decades, and these sacred memories never leave me. Memories of these solemn words, told over a bleeding goat.

Father is now retired, and no longer wrestles goats on festive days.

He now runs a butchery, albeit from home. He’d used a section of his pension, and I had acquired a Coop Bank loan – we jointly own this venture. His role is to source for live animals from the community – he’s gifted with amazing people skills. I take over from the slaughterhouse – distribution to various retail outlets and institutions, like hospitals and hotels.

It’s easy business, thanks to the New Co-op Internet Banking that allows me to manage my Co-op Bank account from one place. It allows real-time monitoring of payments to the butchery account through the Co-op Bank M-Pesa pay bill number 400200, and direct cash transfers via M-Coop Cash App.

I can also access banking features like statements, buying airtime and internet data direct from my account. The New Co-op Internet Banking allows convenient fund transfers to M-Pesa or any local bank account.

Towards dusk, I send the old man a message on his phone: Happy Father’s Day.

Fatherhood is a tricky responsibility and there’s no handbook, yet. A big part of who we are is a reflection of the fatherhood we grew up with…

Celebrating innovative businesses that enable masses to work from home to beat the ravaging pandemic

Posted on by Kibaki Muthamia

The Work-from-Home clarion call due to the Covid-19 curfew and movement restrictions is no longer new. It’s palatable for a tiny fraction of the working group that had foreseen the lockdown, or live and work in the same county. That didn’t go down well for a large number, though.

The sudden announcement by the government caught a major section of the public by surprise. Quite a few had even travelled from the city to their rural homes.

Suddenly, there’s no access to their offices in the city, or even to their homes in within the city.

Working from home entails quite a set up. For instance, a decent internet connection – stable, and at a reasonable cost. It’s important, too, a good computer and other accessories. Good processing speeds, decent memory levels and security capabilities.

The pandemic has dealt a death blow to many businesses. There’s been a need to reinvent the wheel in more ways than one. One way for businesses to thrive is embracing digital transformation.

Digital-based businesses that seek to solve remote working experience issues have been thriving since – especially away from the city.

One such business, is Chestus Computer Consultants Ltd – Meru Town.

Chestus Computer Consultants is a vibrant digital-based firm in the heart of Meru County, providing quality products and services in the IT sector. The premise outlines their aim as helping clients adapt to technology change and streamline their operations.

The firm has steadily established a niche in the Eastern region as they serve walk-in individual clients and tendering organizations with dedicated commitment. Working with other technology partners, the firm has a vision to bring IT innovations and excellence to business operations – offering tailored solutions to different needs.

The Founder and CEO, Mr. Mugambi cites a significant rise of a new social media client base with related inquiries: laptops, Wi-Fi routers, Wifi-extender gadgets and other accessories.

On business challenges in the Covid-19 times, the CEO gives credit to a few financial decisions that were standard even before the crisis. The firm encourages cashless payments – which doubly acts as a means to curb the spread of the virus. This has been made easier by their all-present banking partner, Co-op Bank.

The bulk of their orders is made through social media and items are shipped after payment. Such payments are made via the firm’s M-Pesa till number which enables direct payment to a Co-op bank account.

Two things distinguish Co-op Bank as a partner: One, the bank assists their clients get M-Pesa till numbers fast, at no charge. Two, the payments to the account reflect instantly to allow fast delivery. This leads to more business.

At the shop premises, walk-in clients sanitize by the door – and get a free surgical mask.  All round, conspicuous signage show Co-op Bank’s M-Pesa pay bill number 400200. This, too, makes direct payment to the firm’s bank account. Some clients also transfer payments from their account via the M-Coop Cash App on their phones.

To get assistance in acquiring an M-Pesa till number for your business at no cost, visit the nearest Co-op Bank branch. One can also click here, to learn more about Co-op Bank’s E-commerce Business Solutions.

#StaySafe

The chilly mornings in the countryside inspire thoughtful reflections on eventual retirement

Posted on by Kibaki Muthamia

If it doesn’t presently hog your mind, the thought of retirement is a pensive moment for a lot of people. What is it like to have no work deadlines, board meetings and back-to-back meetings every morning? How does it feel to know one is living the last third of one’s life?

In the wake of the Covid-19 lockdown, working from the village has been an inspiring period. The countryside is full of energy, for the conscious one. Open your eyes, soak it in.

They say, to know an area you have to study the natives.

In my case, I had a perfect study subject, my elderly father – now gracefully retired and approaching his sunset. Perhaps, that’s why he has a thing for sprightly, early mornings and lazy sunsets.

From the wide veranda below the grass eaves of his Thingira, Papa watches the sun rise. The compound is wide, and green with dewy grass. Icy cold droplets of dew catch the early rays of the sun, and reflect it in a glassy show of purity. The lone Ayrshire cow, off leash, grazes silently along the Kei Apple fence.

He sits alone, pensive, in his aged lawn chair. On the first days of the lockdown, I’d wake up early and join him. I’d quickly learn it’s not his favorite time for chit chat, and we’d sit silently staring over the beautiful valley – bespoke with rising plumes of early morning fires from the conical huts on the countryside.

The chilly mornings, we’d think. While I’d think of my colleagues, the antiseptic smell of stationery in the office and the incessant ruckus of hawkers and hooting cars, I’d wonder what the old man was thinking about.

I asked once.

Well, the new pandemic was troubling him. While Papa had lived through some of the most iconic moments in the country’s history, nothing had prepared him for this pandemic. Some were ecstatic, happy moments – like November 17th, 2006 when the Maasai Mara Game Reserve was declared one of the Seventh Wonders of the World.

For a retired game warden, it was a good moment to be alive.

On the political front, August 27th 2010 had dawned with his beloved country checking in a new constitution.

The old man was pensive, for most of his family lived in the city, and am the only one who had managed to leave the city before the lockdown. He didn’t seem pacified when I mentioned his granddaughter and son in the city would be alright, as they’d certainly follow government directives.

My kids were college students in the city, and lived together in a rented flat. I’d speak to them often, and had asked them not to worry the old man with details of the lockdown.

One chilly morning, as the orange orb of light oozed its rays over the valley, Papa had demanded to know how I knew his grandkids were okay.

I slowly explained that banking had come full circle, since then. It was slow, but it helped that he was a Co-op Bank member too, channeling tea and coffee payments through his account there.

In that chilly morning, with the Ayrshire cow grazing only a few feet away, I had taught him about MCo-op Cash App – and how that seamlessly allowed me to pay bills for my kids directly.

“What bills?” He’d demanded.

“All of them. Rent, KPLC bills, DSTV bills, water bills….” I’d told him.

Naturally, he wanted to help. He still had tea bonuses in his Co-op Bank account.

I showed him how MCo-op Cash App allowed me to check account balances, withdraw funds, get account statements and even apply loans. There is also the MCo-op Cash Paybill number 400200 that allows direct deposits to a Coop Bank account.

Papa didn’t have a ‘city phone’ as he refers to smart phones. However, his phone can still handle Co-op Bank’s USSD number *667#, for a similar banking menu, but…..

“Get the rope, she’s about to get a calf!” He shouts, pointing at the cow.

Visit the nearest Co-op Bank branch or click here, to learn about Mobile banking (M-Coop Cash) and its ingenious ways that eases up banking.

#StaySafe.

An interesting account of the tense moments at the Nairobi County lockdown barrier on Thika Road

Posted on by Kibaki Muthamia

Have you travelled to Nairobi City from other counties, lately?

Well, the lockdown road blocks are a thing – to stem the rapidly spreading Covid-19 pandemic. The tension, the uncertainty as one waits for clearance to leave or enter the city is almost tangible.

The Thika Road block, for instance.

This road block has been mounted off Thika Town, at the Del Monte Factory point. It’s meant to stem the flow of humanity to and from Eastern and Central region. Its perhaps one of the busiest, round the clock.

This is where I am, on a cool Wednesday afternoon seeking to re-enter the city after a few weeks working from the rural home.

A mile or so to the actual block, we join the queue of cars. There are a smattering of armed police officers on foot patrol, holding brief conversations here and there. Presently, a smiling officer asks passengers in our van to alight and walk towards the front of the queue.

The policy is that only the driver stays in a vehicle, to the road block. It’s a work staff van, and everyone has permits. But, still, everyone is silent and nervous.

We alight and start the walk.

The slow mile to the check point feels weird. It’s laden with dreadful feelings. Will I pass the test once again? Have I interacted with a risky person of late?

Dear Lord, I know I’ve sinned and fallen short …. You get it, right? It’s ok to be prayerful.

The walk to the road block testing point reminds one of the 999 steps to the famous Heaven’s Gate. No, not that heaven. We talking of one of the world’s most spectacular locations – a stunning tourist attraction in Hunan, China.

The 999-step stairway to Heaven’s Gate is an architectural wonder, winding up a stunning piece of landscape around Tianmen Mountain. Global tourists have made iconic challenges climbing, hiking and even driving up the steps. It commands a Mecca-kind of reverence for wanderlusts.

Well, the testing tents have a long queue.

It’s easy to ignore the happenings in the tension leading up to the tests, but there’s a lot happening – especially on the business level.

While the pandemic has slowed down and closed up lots of businesses, it has also spawned a couple. At the Thika Road check-point, there’s a lot of personnel around the clock – and this has attracted entrepreneurs.

The road block has security officers, medical officers, charity organizations’ staff and elements of administration. This obviously needs welfare planning from refreshments, feeding and other essential services.

On our queue as we await our turn on the test, a lady in a smart orange apron comes along. She’s balancing colorful, blended juice in tumblers on a tray, selling at Kes. 50/- a piece. They seem tantalizing.

Anything to make us release the tension of the looming tests.

“Have some juice, brother. You are sweating”, she tells me.

“Ok, what’s in it?” I ask, pointing to a reddish-yellow tumbler on her tray.

“Oh, that’s mango juice blended with guava…Its delicious” She says, handing it to me.

“Sina cash, tutalipa vipi?” I ask.

I also want to treat my colleagues. The bill comes to Kes.200.

“I prefer cashless payments. Cash ni risky sana kwa hii road block”. She says. Her name is Naomi.

Naomi visibly lights up. She’s well spoken.

She informs us that she has a Co-op Bank account, and the bank recently assisted her get a till number at no cost on which clients can send money straight to her account. Alternatively, we could also pay through Coop Bank’s M-Pesa pay bill number 400200 straight to the account.

In my case, though, I opted to pay via M-Coop Cash app on my phone. It was easy and convenient – to send money from my Coop Bank account straight to hers – via M-Coop Cash app.

For a minute, we forgot the tension leading up to the test.

For startups or established business owners, learn more on E-commerce Business Solutions or visit the nearest Co-op Bank branch. The bank shall also assist you acquire M-Pesa till numbers to facilitate cashless payments at no cost.

#StaySafe.

The various types of boda boda riders, from interesting to the irritating!

Posted on by Kibaki Muthamia

What’s it with the boda boda guys?

They are sometimes a deplorable lot, morally decadent and vulgar loudmouths. Yet, an integral part of the social fabric that holds communities together.

It’s no wonder then that everyone has a favorite boda boda guy.

Like apples in a barrel, they come in a variety. While the group largely has outstanding, morally upright individuals, a barrel of apples definitely won’t lack a pair or so of rotting specimen – and, this is what tarnishes an otherwise good past time.

There are several types in this barrel.

The Talkative Fellow will not let you settle on the bike seat properly, before he starts talking. It doesn’t matter if you are listening or not….he’ll rat out on which of his colleagues takes a shower or doesn’t. He’ll remind you of the day the beer truck tipped over at the market. They are conniving bastards – he calculates his speed based on the distance to your destination, so that every story doesn’t hang off halfway.

Sometimes, the talkative fellow hasn’t brushed his teeth, for days. Now, that’s a bad day for you!

The Political Rider keeps tabs on the political trends of the day.

“Hey, unaona huyu jamaa wetu akipata hii kiti tena?” He asks, wind blowing spittle backwards into your face.

You don’t like politics, but he keeps turning his head to catch your reply.

“Hapana, hajafanya kitu – huoni hii bara bara inataka repair?” You answer, timidly.

You realize it’s a mistake the minute you let the words fly out. He skids to a halt, dust flying. He turns to face you. Oblivious of time, the political rider then lurches into a 10-minute monologue on why the incumbent is still his candidate of choice. After a while, getting fidgety, you remind him that the next elections are still three years short.

“Maisha ni siasa, rafiki”, He says, sighing in exasperation at your apparent ignorance. Mercifully, he fires up his rickety bike.

The rider that puts your inner strength and fortitude to the test, is The Filthy, Dirty Rider. This guy hasn’t had a change of clothes in recent times. Sometimes, he’s dreadlocked and God-knows-what lives in those dreadlocks.

In a twist of irony, this type is usually very popular around bus termini, and their bikes? Oh, man. Their bikes are spotless, shiny and kitted out with fancy gadgetry.

The filthy guy lets the bike market itself. He doesn’t sit on it as he waits for clients. You’ll point the parked shiny bike – and the rider shall emerge from the shed. Since you’ve already made your pick, you’ll have to endure the ride.

You’ll suffer a mixture of disgusting body smells.

The Professional Rider.

This is the most likeable guy. He’s punctual and well-dressed in jeans, boots and heavy jackets. Unlike his peers above, he has a functional cell phone, and most clients call for services. Before the lockdown, business would run well past the night as he’s created a trustworthy client base.

One such professional is challenging his boda boda peers in my locality.

When Covid-19 pandemic struck, he’s had to change with the times. He’d invested in masks and sanitizers. The social distance directive that advises one client on a bike? He takes it seriously.

On payments, he’s turned to cashless payments. He has a Co-op Bank account. Recently, he learnt that Co-op Bank assists business owners to get M-Pesa Till numbers for their businesses, he didn’t waste time. The bank assisted him get one for his bike business at no cost!

A boda boda guy with an M-Pesa till number sticker on the fuel tank! That’s ingenious!

Now, his clients pay his bills via the M-Pesa till number on the bike’s tank, and the money is deposited straight into his Co-op Bank account.

Business owners can learn more on E-commerce Business Solutions or visit the nearest Co-op Bank branch. The bank shall also assist you acquire M-Pesa till numbers to facilitate cashless payments at no cost.

#StaySafe.

The Co-operative Bank jolts banking sector by a record Kshs. 5.1 Billion profit in first quarter 2020

Posted on by Kibaki Muthamia

The Co-operative Bank Group has an encouraging winning angle against the obstacles occasioned by the ravaging pandemic to report a Profit before Tax of Kshs 5.1 Billion for the first quarter of 2020, a performance closely reflecting last year’s 2019 first quarter results. Profit after Tax was Kshs 3.6 Billion.

The Group has a comprehensive mitigation strategy to cancel out an unpredictable working environment demanded by the Covid-19 pandemic. They have a strategy intended to ensure full banking services continue being accessible to customers in a safe environment consistent with the Ministry of Health guidelines. Most attention has been thrust to digital channels, and branches remain open albeit with constant attention to detail to keep clients safe.

The report has a few highlights;

  1. Profit&Loss
  • Total operating income grew by 12.5%from Kshs 11.1 Billion to Kshs 12.5 Billion
  • Total non-interest income increased by 19% from Kshs 4.2 Billion to Kshs 5.0 Billion
  • Net interest income increased by 8.5% from Kshs 6.9Billion to Kshs 7.5 Billion

Total operating expenses grew by 20.6% from Kshs 7.3 Billion on account higher loan loss provision and staff expenses.

  1. Balance sheet
  • Total assets grew by Kshs 44.7% (+10.5%) to Kshs 470.4 Billion from Kshs 425.7 Billion recorded in the first quarter 2019.
  • Net loans and advances book grew by 24.5 Billion (9.8%) to stand at Kshs 276.2 Billion compare to Kshs 251.6 Billion in 2019.
  • Investment in government securities grew by Kshs 22. 9 Billion (+11.5%) to Kshs 115.9 Billion compared to Kshs 103.9Billion in 2019.
  • Customer’s deposits grew by 6.9% from Kshs 317.8 Billion to Kshs 339.6 Billion.
  • Borrowed funds from development partners grew by Kshs 3.7 Billion (+15.5%) to Kshs 27.4 Billion compared to Kshs 23.7 Billion in 2019.
  • Shareholders’ funds grew from Kshs 82.0 Billion (+12.7) from Kshs 72.8 Billion in 2019.This has enabled the bank to continue to pitch for big ticket deals.
  1. Innovative customer delivery platform.
  • Through our multi-channel strategy ,the bank has successfully moved almost 90% of all customers transactions to alternative delivery channels ,an expanded 24-hour contact center ,mobile banking ,584 ATMs, internet and over 16,700 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 all -telco MCo-op Cash mobile wallet continuing to play a pivotal role in the growth of non-funded income with 5.6 Million customers  registered  and loans with over Kshs. 16 Billion disbursed in quarter 1 2020
  • Over 85, 252 customers have taken up the MSME packagers that we rolled  out in 2018, and 5,000 have been trained on business management and planning .We have earmarked  Kshs 15.2 Billion to MSME lending ,with Kshs 12.4 Billion disbursed to date.
  • Our unique model  of retailing  banking services  through Sacco FOSAs enabled us provide  wholesale financial services to over 479 FOSA outlets and issue over 1.8 million Sacco -link cards.

In a press release, Dr. Gideon Muriuki, Group Managing Director & CEO, also gave credence to the bank’s subsidiaries, like The Co-op Bank of South Sudan with a profit before tax of Kshs.20.7 Million before tax in first quarter 2020. Another major one is the Co-op Consultancy and Insurance Agency with a Kshs.250.5 Million contributed as at 31st March, 2020; and Co-op Trust Investment adding Kshs.20.5 Million.

In addition, the Group has re-aligned close to Kshs.15 Billion to cushion their clients servicing loans from the effects of the pandemic. Co-op clients have had loan repayment periods lengthened, adjusted interest moratorium periods and additional funding if need be to ride out the difficult period.

The Board of Directors have also approved the talks leading to 100% acquisition of Jamii Bora Bank Ltd, which has an asset base of Kshs.20.5 Billion. Due diligence for the acquisition is ongoing.

The Co-op Bank foundation also reports providing scholarships to a tally of 7,657 gifted but needy students across the country since inception. These scholarships cover includes full fees from secondary too university level, internships and later job openings.

Recently, Co-op Bank also boosted the Covid-19 Emergency Response Fund with a cash donation of Kshs.100 Million.

In light of these details, it’s not a surprise that Co-op Bank was named Overall Winner of the Kenya Banker’s Association (KBA) 2019 Sustainable Finance Catalyst Award.

The saying ‘Good Old Days’ is outdated, and this is why the new times are hundred times better!

Posted on by Kibaki Muthamia

Good riddance to the good old days.

It’s debatable if the past days indeed merit the ‘Good Old Days’ tag. If you flinch whenever you hear that line, you ain’t alone. Everything new is better.

Old days versus new days, which is better?

The progressive amongst us would fight tooth and nail for new times. Healthcare is better. Roads and rail systems are better. In the so-called ‘Good Old Days’, simple mail would take ages to reach the intended party. There’s been huge strides in human rights activism and community awareness on topical issues like gender equality, FGM or even cattle rustling.

New is certainly better.

In urban and rural landscapes, a shopping center would have an influential, family-run business. This business would occupy an imposing building middle of the settlement, or a major street. The major flaw with such family-ran businesses, is that they’d be named after the family patriarch, and tag the sons.

Like, Mungai & Sons Textiles. Or, Mutisya & Sons Enterprises.

It didn’t matter if that family had a single son and several daughters, they’d be ignored. In some cases, the sons in a family would be useless drunks in that society, they’d still be tagged beside the founding father in the business.

Luckily, thanks to a spirited gender equality campaign, things have changed. The feminine gender has proved to be better entrepreneurs and better business minds to not run generational investments to the ground.

Bang in the middle of Kericho Town’s business district, nestled in a behemoth of a glass building, runs a girl-run business that’s the envy of other family-owned businesses.

We celebrate Jebet & Daughters Bakers Ltd, in Kericho Town.

Jebet is a robust, brilliant lady – perhaps in her early 60’s – who founded and grew a baking business from a modest, cramped corridor-shop in the late 90’s. While it’s hard to picture her humble beginnings considering her current level, Rebecca intimates a difficult start. She’d dropped from school and found employment as a house girl, but quit after a few months to follow her passion. She’d rent a tiny shop off a corridor.

She’d bake tea cakes, then popularly known as Kaimati – and deliver to other businesses within her street.

Over the years, Jebet would grow from a tiny shop, rent bigger space, and hire staff. Besides, she’d juggle this motherhood as she was blessed with twin daughters one year into the business. However, the father to the twins passed away in a road crash. She’d chosen to remain strong and focused to keep her business afloat, and raise her daughters.

Those were the hard days. The business has grown to command a huge section of the bread industry in the Rift Valley. She’d incorporate her daughters, after college. Jebet and Daughters Ltd was born, and has since landed contracts to supply bread and confectionery to government establishments, NGO’s and learning institutions.

During this interview, the business mogul shuns formalities – insists to be addressed simply as ‘Jebet’. She’s quick to credit their success to a good working relationship with their banking partner, Co-op Bank.

Becky tells us that Coop has heavily invested in the convenient e-Commerce solution. It allows her to easily and safely make transactions with institutions, and receive instant updates on payments.

All payments are made to her business’s Co-op bank account, and the e-Commerce solution has an outstanding real-time processing speed. For NGO’s clients, the solution also allows payments in any currency – GBP, USD, EURO, or KES, which is convenient for both parties.

On her shop network in various streets, which used to run 24 hours before the Covid-19 pandemic, she insists on cashless payments. The Co-op Bank M-Pesa Paybill number 400200 is displayed conspicuously – allows direct payments to her Co-op Bank account. This is the same case with outlets in neighboring towns – the bank had assisted her get M-Pesa Till numbers for each outlet. All this is done free of charge.

It’s fascinating to learn how this business lady runs her business from a central office, and still find time for chit chat. Her business template would be a good starting point for other business owners with a desire to survive the harsh economic state in the country.

Visit the nearest Co-op Bank branch to learn about the e-Commerce solution for your business, or log into the online banking platform. The bank shall also assist you acquire M-Pesa till numbers to facilitate cashless payments.

Long live Jebet & Daughters Bakers Ltd, Kericho.

Does your neighborhood have that oddly-paired, yet popular couple that would break your heart if they moved away?

Posted on by Kibaki Muthamia

Every apartment block, or neighborhood has that one couple. That one couple that defines the life of that settlement. It’s usually a couple of seemingly mismatching partners – either in temperament or physical parameters.

The husband may be a dark, menacing, unsightly beast, while the wife comes off as fragile, beautiful and comely. The Beauty and the Beast fairy tale scenario. In other instances, the wife may be a landmine always waiting to explode, often in cross-balcony angry altercations – perhaps, even physical tussles. The hubby, though, contrasts as a living teddy bear, hard to irritate and always smiling.

Yet, they live happily.

I have been a Ruaka resident ever since I landed in Nairobi. Everyone knows everyone in my neighborhood – akin to an Ujamaa Village in pre-independence Tanzania.

Presently, I live in an apartment block off the main street, Munyeki Street. This section is hailed as Ruaka’s main artery in grocery and cereals.

This neighborhood has that one interesting couple.

Nyawira is a pleasant, bubbly, middle-aged light-skinned lady with a ground floor shop selling cereals and general household goods. She is always smiling and her infectious laughter rings along the busy street all day long. As expected, her shop is always ringed with customers – some haggling just for haggling’s sake.

Directly across the street, there’s Nyawira’s husband with a wholesale and retail charcoal outlet. He’s not a man of many words. He’s fondly known amongst resident college students as Mr. Grumpy. Stacked along his shop’s veranda, there are rows and rows of metallic tins brimming with charcoal. Unlike his chatty wife across the street, Mr. Grumpy’s premises is a No-Haggling Zone.

“Nipe makaa ya fifty”, a client says. Mr. Grumpy points at the relevant metallic tin.

The regulars know Mr. Grumpy’s work ethics. No one offers cash. There’s a colored poster on his door with a Lipa Na Mpesa Till Number 400200. All clients pay via the number, and Mr. Grumpy checks his battered phone. The number allows direct deposits to their Co-op Bank account.

Across the street, it sounds like a fun fair. Nyawira is juggling business with a couple of women and a little bit of good-natured banter.

“Mi staki mniletee Corona hapa!” Nyawira shrieks. “Keep distance. I still have a husband to look after!”

They entirely turn to look at Mr. Grumpy lounging in his seat across the street. Mr. Grumpy adds a new brow line to his usual scowl, for effects.

“Na staki pesa cash hapa.” Nyawira is at it again. “If pesa zenu ziko kwa bank account, piga transfer direct to my Co-op Bank account.”

“What if I don’t bank with them?” Asks Lucy, new at the shop.

“Usijali mamaa,” Nyawira soothingly assures her. “Co-op Bank iko na solution noma sana. Wana accept payments even from other banks. Ama vipi bwanangu?” She teases her husband scowling across the street.

“Inaitwa the e-Commerce solution by Co-op Bank.” Mr. Grumpy growls. “Ata ukiwa na Dollars ama Pounds wako sawa”.

Legend has it that Mr. Grumpy has a definite number of daily words, and perhaps such a statement may have exhausted it. No worry, his cheery wife will make up for it.

Real comedy comes when a customer wants items form both shops. They pick a tin of charcoal from Mr. Grumpy and cross the street to pick groceries from Nyawira. Since it’s the same till number, there’s a comical exchange between them as they confirm the bills and payments.

If this couple ever decides to move from this street, a lot of us shall weep, and grieve in sack cloth. That unlikely couple is the life of our neighborhood.

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