Zvi Galor

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last update: December 25th 2003

Stanley Kamuti Njue,
P. O. Box 18034,

September 24, 2001


ZVI Galor, Academic Director,
International Institute &endash; Histadrut,
Beit Berl, Kfar saba,
P. O. Box 44905,


Dear Zvi Galor,


Your reference letter ZG/LM/1767 dated September 11, 2001 refers.

Attached hereto, please find a copy of our Annual Report and Financial Statements for the year ended December 31st 2001. In the report your notice that:-

(i) We have introduced ownership and participation concept in all our major projects.

(ii) Eventual surplus and the 25% statutory reserve fund was wholly distributed among all members.

(iii) Our rate of interest policy imposed on members is currently under review in order to provide the members with best possible services, and at the lowest possible costs

With warm regards.

Yours sincerely,

Stanley Kamuti Njue
Chairman &endash; Kingsize Sacco Society


Ladies and Gentlemen,

Once again, it is my pleasure to present to you our Annual Report and Financial Statements for the year ended 31st December, 2000. In a year full of challenges and the world becoming increasingly competitive, our society has taken a more challenging reality. It is in line with this background that my committee has endeavoured to develop and maintain an effective system of internal controls, which will safeguard the member's shares, ensure accuracy in accounting records and monitor management policies and systems. To achieve this, Coca-Cola Sabco Internal Auditors have regularly reviewed our accounting and financial policies in order to strengthen financial discipline and ensure continued profitability and healthy balance sheet.

The outlook for the year 2001 continues to be an aggressive one. My committee has continued to map new strategic approaches of growth in order to increase the value of member's shares and also create financial independence. Some of our strategic undertakings in the year directed towards this goal are: -

q Staff canteen.
q Kingsize Sacco Bus.
q Laundry Services.
q Mobile Phones, Coca-Cola Radios and plastic water tanks.

I am pleased to report that Nairobi Bottlers Management has accepted in principle our plea to run staff canteen. This venture is a definite business potential. My committee has the potential, ability and skills in administration and would appreciate the opportunity when modalities of setting up the kitchen and dinning facilities are finalised.


The co-operative is probably one of the means by which poor individuals can escape their poverty and go on to develop themselves and their families. When individuals come to the co-operative and recognise that alone they cannot achieve their goals, they become ready to give up part of their independence and, most importantly, to co-operate with others who have the same need. The most important goal of members who have reached this insight is to get the best and most economic services from the co-operative they have established.

The member is the one who finances the co-operative society and is financially responsible for its activities. Today, many societies assets such as buildings do not belong to the members. Members have effectively been alienated from the true ownership of the society. Members focus is now our priority . My committee will seek to understand your needs and meet your expectations by introducing ownership and participation concept in our society.

The ownership and participation of the society takes the form of shares held by every member. The society equity is therefore equal to the combined value of share capital. The share of the member should express the real value of fixed assets of the society. Each member should have only one share and the value of share is decided purely on mathematical principle.
Value of fixed assets
Value of share = ------------------------
Number of members

The ownership and participation concept can bring success to this society. It will ensure democratic, functioning of the society including management. This will also encourage non-members to become members of the society.


The statutory reserve fund is generally created out of surplus to support economic disaster or when at the end of fiscal year, the society has ended with deficit and the reserve fund is utilised to cover it. In 1999, the society created a 25% statutory reserve fund equal to Kshs 1,061,658/= out of 4,246,632/= annual surplus. This means that the profit was not wholly distributed to the members but was accumulated in the statutory reserve fund.

Our society is financially strong and solid and it has demonstrated that it can thrive even in difficult times. In 1999, the society paid dividends of 6.10% equal to Kshs 3,000,000/=. The management committee is pleased to recommend an interest payment at the rate of 9.0% equal Kshs. 4,910,000/= based on members' share deposits of Kshs. 54,368,708/= in the issue at the balance sheet date, less 5% withholding tax to members whose names appear on the register at the close of financial year ended 31st December 2000. This payment represents 47.5% increase on the prior year. If this interest payment is approved in this Annual General Meeting, the payment will be made in the first week of May, 2001.


Each year it is my pleasure to acknowledge to you members the efforts of the management committee and staff who are collectively responsible for the results documented in this report. Without their efforts individually and as a group, I can honestly say we would not be where we are today. As management committee, we are thankful to you members for your support and sharing our positive long-term vision to be one of the most dynamic societies in the country.

Thank you.


APRIL 29, 2001.


Ladies and Gentlemen,

I am pleased to report yet another year of excellent performance during the year ended December 31, 2001 despite the enormous economic challenges in the Country. Notwithstanding these challenges, the Society has pursued with determination its goal to become one of the most dynamic societies in the Country. The success of the Society is not gauged by the surplus collects at the end of the year, but how satisfied the members have been in the range of financial needs that the Society has provided. Our members are the greatest assets and focus on their developments will continue to be explored. This is the key to our future and the challenges now lie in exploiting the opportunities that lie ahead.
Great opportunities are not seen with our eyes. They are seen with our minds.

I would like to re-state what I said last year that our Society is strong and very solid. I am therefore confident that with prudent provisions that we have, we are now placed to turn this to the path of profitability, but this would require innovation and dynamic leadership.


In a Co-operative Society the members are the owners and consequently also have the right of control. Clearly therefore, it is in the members interest that they have the rights of control and provide the capital which will give them the rights of ownership, control and receive all the profits. The members of a Co-operative are its owners and ownership takes the form of a share held by every member. A Co-operative equity is therefore equal to combined value of member's shares. The share of the member should express the real value of the fixed assets of the Co-operative and each member should have only ONE share and the value is decided purely on mathematical principle.

Value of share = Value of fixed assets
Number of members

The ownership and participation concept can bring success to this society. In line with this background and with a view of turning round the society profitability, my committee is ready to undertake two important initiatives and capital investments all designed to bring the need of our members into a sharper focus and to make our promise a reality. A significant progress directed towards this endeavour has been made . The society had already built a reserve of Kshs.9.5 million in treasury bills at the end of February 2002, for one of the following capital investments and for future business expansion. However, the on-going retrenchment might impact negatively on prospects for this initiative due to a substantial capital withdrawal.


The purchase of 3 Isuzu MV 118 semi-luxury buses with luxurious ample spares to sit 62 passengers and luggage with all round comfort would cost this society a sum of Kshs. 16,791,067. My committee has also negotiated with National Industrial Credit Bank (NIC) for hire purchase finance of Kshs. 5,704,751 at the rate of 11.7% and payable in 12 instalments at Kshs. 504,261 per month. This approval is valid for 90 days from February 19, 2002.

The value of share, which the member pays to the Co-operative, will be calculated on basis of fixed assets divided by number of members. Value of share = Kshs. 16,791,067 = Kshs.44,657

Demand for road transport continues to grow each year and the acquisition of 3 Isuzu semi-luxury buses amply demonstrates our confidence in growth prospects for this Society. This also underlines our commitment to create financial independence for our members. The anticipated growth in the Society and an additional monthly revenue of Kshs.1,000,000 accruing from transport investment will contribute to the bright future for the society. Success is achieved by those who are thoroughly imbued with belief that they can attain it and they are convinced of this fact.


As I reported last year, Nairobi Bottlers Management has agreed to set up a staff canteen. The Performance Finance, as Financial Advisory and Human Resources Competency as employees champion fully supports this initiative and modalities of setting the kitchen and dinning facilities are at a very advanced stage. The value of share will also be calculated on the basis of fixed assets divided by the number of members.

For capital investment of this magnitude to succeed, it would require a lot of effort and commitment. It is therefore prudent that the managing committee should appoint the society manager , an essential member of the managing committee, who will be responsible for-

q Providing administration over the security of members funds and
Assets of the society.

q Updating members deposits and loans and ensuring accuracy and
Payments of the same.

q Advising and guiding the managing committee and other committees
in framing society's policies and programmes.

q Handling overall planning and coordination of the society programmes to genuine implementation and completion.

q Providing continuity of administration of books and records of accounts in respect of income, expenditures, liabilities and assets of the society.

q Supervising the work of all staff and ensuring that the business of the society is conducted in a proper manner


Each year it is my pleasure to acknowledge to you members the efforts of the management committee and staff who are collectively responsible for the results document in this report. Without their efforts, individually and as a group I can honestly say we would not be where we are today. As management committee, we are thankful for your support and sharing our positive long-term vision to be one of the most dynamic societies in this country.


April 7, 2002.


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