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,
RE: COURSE GRADUATE UPDATE
Your reference letter ZG/LM/1767 dated September 11, 2001
Attached hereto, please find a copy of our Annual Report
Financial Statements for the year ended December 31st 2001. In the
report your notice that:-
(i) We have introduced ownership and participation concept
our major projects.
(ii) Eventual surplus and the 25% statutory reserve fund
wholly distributed among all members.
(iii) Our rate of interest policy imposed on members is
under review in order to provide the members with best possible
services, and at the lowest possible costs
With warm regards.
Stanley Kamuti Njue
Chairman &endash; Kingsize Sacco Society
CHAIRMAN'S REPORT 2000
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
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
OWNERSHIP AND PARTICIPATION CONCEPT
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
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
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.
STATUTORY RESERVE FUND AND DIVIDENDS
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
STANLEY KAMUTI NJUE
APRIL 29, 2001.
CHAIRMAN'S REPORT 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
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
THE SHARE, OWNERSHIP AND PARTICIPATION CONCEPT.
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
1. PURCHASE OF 3-ISUZU MV 118 SEMI LUXURY
The purchase of 3 Isuzu MV 118 semi-luxury buses with
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
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.
2. STAFF CANTEEN
As I reported last year, Nairobi Bottlers Management has
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
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
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.
STANLEY KAMUTI NJUE.
April 7, 2002.