Co-operative Societies especially those that operate Deposit-Taking business, are changing the business models and encouraging members to use available online and mobile platforms.
“We have optimized all our ICT platforms to reduce number of members in our banking halls. Our customer support services are also available round the clock with all cash handling staff using gloves,” said Mr John Mwangi, CEO Tai SACCO Society Limited, based in Githunguri, Kiambu County.
He added that the Society is adhering to all Government advisories and has postponed all meetings, including those held by the board unless it is absolutely necessary to hold one.
“Apart from the advisories, we have devised our own business continuity program to ensure we survive through this challenge. We have employed a flexi- working schedule to ensure business
continuity,” said Mr Mwangi.
SACCOs are being encouraged to use electronic money transfer as much as possible to eliminate the risk of physical contact and overcrowding in the banking halls.
” Societies are hereby allowed to pay Dividends and Interest on Members’ deposits as long as their financial statements have been audited and submitted as per Section 25(7) of the Co-operatives Act,” said Mr Geoffrey Nyan’gombe, Acting Commissioner for Co-operatives in a circular dated 26th March, 2020.
But not all deposit taking SACCOs have the capacity to move their transations to electronic platforms.
“Covid 19 has really affected us bearing in mind that we depend on members who are either farmers, business people, salaried employees, churches and so on. As we speak, we are experiencing cashflow problems and while we have introduced members to mobile banking, the uptake is still slow due to a huge technology gap,” said Dorothy Makena, Marketing Manager, Southern Star SACCO, based in Chuka.
With all AGMs cancelled, directors on the Board of these Societies, who are usually re-elected by members each year, have been told to continue holding office until the next Annual General Meeting.
Mr Nyan’gombe has also directed that all dividends and rebates paid out to members will still need to be ratified when the AGMs eventually take place.
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