NCBA Group’s Post

For us to have hygienic politics, there is need for a moral revolution in Africa, and especially in Kenya - first in private spaces, then in the governance space by extension. Much as we demand accountability from our leaders, can we stand the same test in our private spaces?

NCBA Group advocates for collaboration between banks and Savings and Credit Cooperative Organizations to enhance Kenya's economic growth. SACCOs play a crucial role in financial inclusion by facilitating savings, borrowing, and investment for members, NCBA says. They offer lower interest rates on loans and pay dividends, fostering a sense of ownership and loyalty among members. Banks, including NCBA, provide essential economic services such as clearing and settlement systems. NCBA believes that collaboration between banks and SACCOs is vital for meeting increasing consumer demands and improving efficiency. To address challenges faced by SACCOs, particularly in managing member contributions, NCBA offers automated reconciliation solutions. These include pre-validation of collections, real-time API notifications, and customized transaction reports. These offerings aim to enhance operational efficiencies and allow SACCOs to focus on their core functions. #Kenya #Economy #SACCOs #BankingCollaboration #FinancialInclusion #EconomicGrowth

Our beloved country is always an extreme sport - drama after drama. The Auditor General has raised key issues in Hustler Fund audit: 💸 KES 464M was disbursed to non-registered persons. 📈 KES 200M in loans were disbursed above set limits. 🆔 Duplicate loan IDs were used to process loans. 🚫 KES 81M in loans were closed before repayment. 🏦 KES 16M was disbursed to borrowers with outstanding loans. ⚙️ The loan system is not properly configured. 📇 Loans were issued to customers without national IDs. 📊 The authenticity of balances remains unconfirmed. 🔍 There are undisclosed customary signatories’ interest earnings. 📉 The recovery of KES 8B in loans is in doubt. 💵 Irregular charges were made to customers by banks. With approximately Ksh 10 billion borrowed, the Auditor General notes the government has little to no chance of recovering the borrowed amount. Do you know how many hospitals we can build with that kind of money?? Is doing the right thing this difficult in Africa!?

Well done bro, keep doing what you know how to do best

In a recent interview on Desert FM (The Namibian) our CEO, Brian Katjaerua spoke to John-Colin Namene and Chè Ulenga about the importance of the Code of Banking Practice. Brian detailed the following important points: • Bankers Association of Namibia (BAN) mandate, which is to promote a sustainable banking environment in Namibia • BAN’s stakeholders, which including regulators, Bank of Namibia, Ministry of Finance and business • What the code hopes to achieve, which is to encourage banks to treat customers fairly and improvement of service standards • Dispute resolution, encouraging consumers to do this through the bank of Namibia or via the helpdesks in individual banks For the full interview, you can listen to Brian’s insights here: https://lnkd.in/divHKySg #bankingmatters #bankingcodeofpractice #bankinginsights

Execllent work, Kenya!! Although not very popular in Namibia, I believe SACCOs have the potential to make a difference in the lives of rural and informal businesses in Namibia. With the right mix of policy support, increased education and strategic implementation, SACCOs can significantly enhance financial inclusion and empower local communities. The opportunity to integrate digital technologies into the SACCOs framework could also revolutionize their operations, making them more accessible and efficient. Optimistic! #financialinclusionpolicy #meaningfulimpact #humancenteredpolicy #accesstocredit

Here are a few key reasons why Saccos have excelled in loan disbursements: 1. Member-Centric Approach: Unlike banks, which are profit-driven, Saccos such as Stima Sacco Society Ltd prioritize the needs of their members. This model enables them to offer more flexible and accessible loan products, tailored to the specific requirements of their members, making it easier for individuals to qualify for credit. 2. Lower Interest Rates and Favorable Terms: Saccos often provide lower interest rates on loans compared to commercial banks, making them an attractive option for borrowers. For example, Normal Development loan at Stima Sacco Society Ltd is priced at 1% per month on reducing balance. 3. They also offer flexible repayment terms, which are more accommodating for small businesses, farmers, and individuals who may struggle with the stricter terms of banks. #BestSacco #SaccoYanguMaishaYangu #Loans

If well managed, SACCOs can thrive in liquidity hit financial markets characterized by collateral based lending like ours with innovations. I have witnessed this as some emerging SACCOs are already luring key personnel from established private commercial banks while in their under two years of operatoon. The future looks really bright for SACCOs.

Couldn't agree more. The same is true for the Ugandan market. It's sad that banks have successfully failed to read and respond to the ever evolving market dynamics. Borrowers demand affordable and conveniently available products while the 5 Cs (character, collateral, capacity, capital, conditions) credit script which banks follow religiously makes loans too expensive hence negatively impacting Ugandans' Economic empowerment. #financialinclusion #empowerment #equity #sacco

Saccos (Savings and Credit Cooperatives) have outperformed banks in loan disbursements over an 8-month period, showcasing their growing importance in Kenya’s financial landscape. This trend highlights the crucial role Saccos play in expanding access to credit for many Kenyans. Key points: 💰 Saccos issued more loans than commercial banks in the first eight months of the year 🧑🧑🧒🧒 Borrowers are increasingly choosing Saccos over traditional banks 🚀 Credit growth by Saccos stood at 9.3 percent year-on-year in August ⬇️ Saccos typically offer lower interest rates, averaging 12 percent on reducing balances Saccos often serve communities and individuals who may have limited access to traditional banking services. Their success demonstrates the power of cooperative financial models in meeting the diverse credit needs of Kenyans. What are your thoughts on this? How might it impact economic growth and financial empowerment for more Kenyans? #FinancialInclusion #Kenya #Saccos #EconomicEmpowerment