21 – 22 September 2006, Kuala Lumpur21 – 22 September 2006, Kuala Lumpur

Savings Banks and Foundations as supporters of communities, municipalities

and local authorities

Ms Nyambura Koigi, Managing Director, Kenya Postal Bank

“Savings banks: the retail gateway to a global market. Driving sustainable development”

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SAVINGS BANKS AND FOUNDATIONS AS SAVINGS BANKS AND FOUNDATIONS AS SUPPORTERS OF COMMUNITIES, SUPPORTERS OF COMMUNITIES, MUNICIPALITIES AND LOCAL AUTHORITIESMUNICIPALITIES AND LOCAL AUTHORITIES

A PRESENTATION BYA PRESENTATION BYA. Nyambura KOIGI [MRS] A. Nyambura KOIGI [MRS]

Managing DirectorManaging DirectorKenya Post Office Savings BankKenya Post Office Savings Bank

September 2006September 2006

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Summary of Presentation

Kenya: Country Profile, Postbank at a glance, Support to local communities as

part of Postbank’s Corporate Social Responsibility (CSR) approach,

Conclusion.

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Kenya: Country Profile Population: 32.8 million (UN, 2005), Capital: Nairobi, Area: 582,646 sq km (224,961 sq miles), Major Languages: Swahili and English, Currency: Kenya shilling, Main exports: Tea, coffee, horticultural

products, petroleum products GNI per capita: US $390 (World Bank,

2004).

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The Kenyan Economy

Kenya's economy is diversified, agriculture, contributes 2 percent of GDP.

The GDP expanded by 4.3% in 2004, 5.8% in 2005 and is expected to expand by 6.8% in 2006.

Although the industrial sector is still small, it is a growing source of East African exports.

The horticultural and tourism industries are growing and are key sources of foreign exchange.

About 56% of the population live on about 1US$ a day.

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Financial Sector [May 2006] At the apex is the Central Bank of Kenya, 45 commercial banks, 3 non-bank financial institutions, 2 mortgage finance companies, 4 building societies, One savings bank (KPOSB-Postbank), 3,925 SACCOs of which 70 are FOSA's, and Several MFIs some like KWFT, Faulu,SMEP

are big in terms of client and loan book.

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KPOSB [Postbank] At A Glance The savings services were

started in 1910 in the then East Africa protectorate.

Kenya Post Office Savings Bank (KPOSB) was incorporated in 1978 by an Act of Parliament, KPOSB Act CAP 493 B of the laws of Kenya.

Mandate of KPOSB Encourage thrift and

inculcate savings culture among Kenyans,

Provide affordable savings facilities and instruments,

Pool personal savings for national development.

Provide savings and payments products and services

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Vision, Mission And Values Vision “To be an efficient and

sustainable bank of choice.”“

Mission “To provide accessible and

sustainable banking, financial and non-financial services, through innovative delivery systems for wealth creation for the benefit of customers and other stakeholders.”

Values We provide quality service to

all our customers: Professionally Diligently Promptly HonestlyTo exceed their expectations. We uphold teamwork and

respect to our customers and all stakeholders.

We are socially and environmentally responsible.

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Support to local communities as part of Postbank’s CSR approach As savings and postal banks

we have to come into terms with this dispensation and get actively involved in supporting community initiatives touch and create a positive change in communities

Gone are the days when profit alone was the sole reason firms were considered successful.

Today, without a solid track record in social responsibility, companies will loose out in the race to win the hearts and minds of consumers.

Necessary to identify a course that you have a passion about and which resonates well with your business.

This way, it is easy to merge your “profit centre” with your “passion centre” and build a business that reflects your values, beliefs and integrity.

It is for this reason that KPOSB has embedded a CSR policy.

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Targeted initiatives in favour of local communities Postbank has for example been involved

in: Savings education among the fishermen along Lake

Victoria Book donation to schools in semi arid areas, Investment training for athletes Street lighting projects, Feeding the hungry in ASAL areas and orphaned children

particularly those orphaned through HIV and AIDS, Promoting entrepreneurial skills among university

students (through global SIFE competition) and Beautification of Market street in conjunction with the

Nairobi Central Business District Association (NCBDA).

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A Graphical Presentation to the Communities on the Importance of Saving, Given the Social Economic Environment in Which they Live and Work

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Investment and Savings Education Symposium for Athletes in Kenya- 24-10-2004

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Donation of Textbooks to Primary Schools

Donation of 21,200 Textbooks to Primary Schools in North Eastern Province, Kenya 2004

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MD Postbank Mrs.Koigi Present a trophy to SIFE Kenya Competition Winning Team -2005

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Characteristics of effective internal strategic communication

Postbank Western Union foodstuff Distribution Initiative to a Children's Home in a Sprawling Korogocho Slum in Nairobi City (2007).

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Postbank Staff forfeited Their End of Year Family Fun Day Celebration to Donate Foodstuff to Famine Stricken Families in Kenya.

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A Postbank Sponsored a Light Mast to Light and Shine in Mathare Slums, Nairobi City

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The Light is a Life Initiatives. A part of the Long Term Government Plan to Upgrade and Improve Housing and Security in the Slums. Postbank Light Mast to Light and Shine in Mathare Slums, Nairobi City

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Postbank Sponsored Street light . Showing Postbank Corporate/Product Identity and Shinning to the Kenyan in Sub-urban Areas in Nairobi City.

KPSBPostbank Sponsored City Clock in Nairobi City

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Postbank Sponsored City Clock. Showing Time and Shinning to the Kenyans.

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Support to local communities as part of Postbank’s CSR approach KPOSB believes that business and the

wider community are interdependent and like a chain, the strength or weakness of one affects the other.

That is why we go an extra mile to be involved in activities that benefits the communities around us.

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CONCLUSION Indeed members of WSBI provide proximity

banking and affordable financial services to local population who would not find a place in the mainstream financial institutions. This is a form of social responsibility.

To continue empowering local communities and endear them to our business, we must merge our “profit centers” to our “passion centers”.

This way we generate goodwill and brand loyalty from communities we work with.

THANK YOU