Annual Reports - LSK Sacco › LSKSACCO › LSKS-2019-AGMBooklet.pdf4 LSK Sacco Annual Reports and Financial Statements for the year ended 31st Dec 2018 NOTICE FOR THE AGM 2019 TO

LAW SOCIETY OF KENYA SACCO LTD

Annual Reports& FINANCIAL STATEMENTS

www.lsksacco.co.ke CS/4676

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TABLE OF CONTENTS

SOCIETY INFORMATION 3

NOTICE FOR THE AGM 2019 4

MINUTES OF 2018 LSK SACCO AGM 5

CHAIRMAN’S REPORT 14

SUPERVISORY COMMITTEE (SC) REPORT 19

FINANCIAL REPORTS 21

STATISTICAL INFORMATION 22

REPORT OF THE INDEPENDENT AUDITORS 23

STATEMENT OF COMPREHENSIVE INCOME 24

STATEMENT OF FINANCIAL POSITION 25

STATEMENT OF CHANGES IN EQUITY 26

STATEMENT OF CASH FLOW 27

NOTES TO THE FINANCIAL REPORTS 28

BUDGET 2018 ANALYSIS AND 2019 - 2020 PROPOSALS 36

LSK SACCO BY-LAWS AMENDMENTS SCHEDULE 38

LSK Sacco Annual Reports and Financial Statements for the year ended 31st Dec 2018

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Joseph MakumiSecretary

SOCIETY INFORMATIONAS AT 31ST DECEMBER 2018

THE MANAGEMENT AND SUPERVISORY COMMITTEE MEMBERS

Supervisory Committee

Registered office LSK Sacco LimitedCrawford Business Park 3rd FloorState House RoadP. O. Box 6740-00100Nairobi

Auditors

Victor Mutisya & Company Certified Public Accountants (K)P. O. Box 28421-00200Nairobi

Principal Bankers Co-operative Bank of Kenya Kimathi Street BranchAcc Name: LSK Sacco LtdA/c No: 01100001711200 P. O. Box 7512-00200Nairobi

Justus Munyithya Chairman

Salome MuhiaMember

Collins WanderiChairman

Kellen Njue Secretary

Lawrence MugambiTreasurer

Caleb NadebuVice Chairman

Jackson AweleMember

Boniface MutwiriMember

Gad GathuMember

Gladys WamaithaMember

Samuel MwanikiMember

Management Committee

The Manager Michael N. Wang’ang’aP. O. Box 6740-00100 Nairobi


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NOTICE FOR THE AGM 2019

TO ALL MEMBERS

ANNUAL GENERAL MEETING

Notice is hereby given that an Annual General Meeting (AGM) of LSK Sacco Ltd is convened and will be held on Saturday 9th March 2019 at The 680 Hotel, along Kenyatta Avenue starting at 9.00 a.m.

AGENDA:

1. To note attendance and apologies.

2. To note and adopt the minutes of the last Annual General Meeting held on Saturday, 10th March 2018.

3. To consider the Chairman’s report for the year 2018.

4. To consider the Supervisory Board report for the year 2018.

5. To receive and note a list of loan defaulters.

6. To receive, consider and adopt the Financial Reports for the period ended 31st December 2018.

7. a) To approve payment of interest on deposit at the rate of 9% per annum on weighted average and dividends at 15%.

b) The interest and dividend to be paid as per member election SUBJECT to other obligations to the Sacco.

8. To appoint Auditors for the year 2019 – 2020 and fix their remuneration.

9. To consider and approve the estimates of income and expenditure for the year 2019-2020

10. To increase the borrowing ceiling to a maximum of Kshs. 30,000,00011. To approve payment of sitting allowance of Ksh 10,000 for Board meetings and Ksh 5,000 for Sub-Committee

meetings plus the tax thereof.

12. To authorize/grant the Sacco borrowing powers to a Maximum Kshs. 1,000,000,000.

13. To approve payment of honorarium of Ksh 2,151,626 to the members of the Management and Supervisory Board as a token of appreciation.

14. To amend LSK Sacco by-laws as per the attached proposal.

15. To elect three retiring members of the Management Board pursuant to Rule 23 of Co-operative Societies Act to the effect that three members retire each year by rotation. Mr. Caleb Nadebu, Mr. Boniface Mutwiri and Ms. Kellen Njue are retiring and OFFERING themselves for re-election. A member desiring to offer himself/herself for election(except one seeking re-election) should pick and return a dully filled up Nomination Form to the Sacco office at least seven (7) days before the AGM.

16. To elect one member of Supervisory Board following the retirement on rotational basis of Salome Muhia who IS OFFERING herself for re-election. A member desiring to offer himself/ herself for election (except one seeking re-election) should pick and return a dully filled up Nomination Form to the Sacco office at least seven (7) days before the date of the AGM.

17. To transact any other business whose notice will have been given to the Secretary fourteen (14) days prior to the date of the Annual General Meeting.

By the order of Management Board

KELLEN G. NJUEHON. SECRETARY

CC: County Co-operatives Officer Nairobi Province P.O. Box 30202 NAIROBI


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MINUTES OF LSK SACCO AGM HELD ON SATURDAY 10TH MARCH 2018 AT SIX EIGHTY HOTEL, NAIROBI.

MIN 1/10/03/2018: Preliminaries

The Chairman called the meeting to order at 9.50am and confirmed that there was quorum. The AGM started with a word of prayer led by the Vice-Chairman Mr. Caleb Nadebu Member Number 1336.

The meeting observed a minute of silence for four (4) Sacco members who had passed away in 2017.

MIN 2/10/03/2018: To note attendance and apologies

The meeting was attended by the following 313 Sacco members;

Member No. Member Name

55 Joshua W. Ogutu

69 Mary Wekhocha

210 Maurice Omuga

231 Gacheche Wa Miano

240 Alice Kimani

246 Gladys Wamaitha

391 Margaret Ndwiga

470 Lawrence Mugambi

471 Maryanne Wanjiru

478 Leonard Kimathi

482 Chrispin Wainaina

483 Samuel Mwaniki

507 Mercy Muli

517 Charles Mwongela

523 Mathias Kamau

529 Collins Wanderi

557 Justus Munyithya

576 Cecilia Mwangangi

604 Christine Kipsang

611 Callen Masaka

636 Haron Gitonga


646 William Githara

716 Njaramba Gichuki

724 Benson Mbuthia

732 Lucy Kamau

754 George Ngala

773 Mary Rebecca Olotch

775 Japheth Mwalimu

787 Martin Machira

801 Noah Kiptoo

817 Francis Maina

821 Pamela Okotch

857 Joash Onyanda

860 Solomon Mugo

862 Antony Miringu

919 Tim Mweseli

925 Gladys Gichuki

951 Daniel Mutinda

965 Ben Sihanya

971 John Kimathi

973 Wangalwa Oundo

978 Samuel Maina

979 James Joroge

995 Kellen Njue

999 Francis Maina

1003 Andrew Ombwayo

1025 Catherine Kawira

1027 Mercy Waithira

1036 Luciah Maina

1043 Esther Kinuthia

3109 Oscar Aredi

1089 Ronald Nzaga

1091 Gilbert Kariri

1094 Joseph Irungu


1115 Nixon Muhatia

1117 Rehema Mbula

1130 Joseph Otieno

1147 Sospeter Mwangi

1167 Joyce Mukururi

1175 Wilson Gathogo

1221 Andrew Mutune

1225 Christine Kioko

1255 Jane Wairimu

1262 Johnstone Keti

1284 John Akado

1336 Caleb Nadebu

1338 Huddah Ogeto

1354 John Githinji

1359 Joseph Makumi

1401 John Mungatia

1450 Daniel Kinyanjui

1478 James Wafula

1508 Catherine Kinya

1516 Salome Beacco

1530 Stephen Okello

1535 Philomena Kimeu

1561 Jane Miregi

1578 Paul Omanga

1590 Daniel Maithya

1602 Mary Opembe

1605 Andrew Gachoka

1608 Ann Kamau

1635 John Abwuor

1641 Samson Kutwa

1680 Geoffrey Tele

1712 Emmanuel Mutuku

1717 Walter Omoke


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1757 Caroline Gichuki

1770 Njeru Ithiga

1772 Samuel Kinyua

1778 Johnstone Nzive

1786 Boniface Mutwiri

1818 Kennedy Mugo

1842 Florence Waithaka

1854 Racheal Karanja

1863 Felix Adero

1894 Mgoya Ambayi

1906 Susan Wanja

1938 Elizabeth Kiarie

1970 Emma Wanza

1975 Lydia Wanderi

1982 Christopher Kinoti

1988 Andrew Makundi

1993 Rashid Makoti

2006 Richard Kamotho

2016 Walubengo Waningilo

2021 Joseph Mutua

2022 Alex Keli

2046 Jackson Omwenga

2064 Peter Okelo

2070 Joseph Njoroge

2084 Antony Mulekyo

2124 David Matwetwe

2159 Brown Kairaria

2179 Patrick Okongo

2234 Theodore Ogutu

2259 Joseph Otieno

2264 Irungu Samuel

2318 Ruth Wanyoonyi

2339 Eva Wambugu

2348 Paul Biage

2359 Nicholas Malonza

2366 Hadijah Hamisi

2379 Lucy Njeri

2389 Wangu Wambugu


2396 Emily Omuga

2480 Michael Ngugi

2483 Margaret Ngigi

2503 Milka Wahu

2535 Phelistus Komu

2540 Julius Kimani

2549 Joel Kabaiku

2579 Judith Akelo

2590 Getrude Langat

2606 Charles Gatumuta

2626 Mary Njagi

2636 Antony Njoroge

2665 Pamela Khayemba

2806 Lenah Nzioki

2843 Jessica Mmbetsa

2851 Jabu Abdulrazak

2865 Alexander Musungu

2884 Elphas Tendwa

2917 Beatrice Mwaura

2918 Arthur Muiru

2945 Christine Ndolo

2956 Beatrice Ogwang

2974 John Omuddanga

3000 Helen Githinji

3004 James Karanja

3045 Peninah Mutungi

3046 Nicholas Kilonzo

3057 Felix Kioko

3061 Gad Gathu

3076 Joel Mugambi

3083 Richard Onsero

3088 Mary Maina

3108 Sophie Cherono

3216 Agnes Ndung’u

3228 Esther Mathenge

3246 Viona Ochola

3260 Samuel Mwaniki

3309 Kevin Njoroge


3396 Ibrahim Kiboo

3401 Kiprono Siele

3404 Jackiline Muthoni

3450 Julius Maingi

3451 Nyambura Chege

3452 Mureithi Ndirangu

3472 Kennedy Juma

3515 Jane Jambukira

3524 Joyce Mwaniki

3525 James Mungai

3544 Simon Kioko

3596 Brenda Were

3606 Margaret Osure

3607 Juma Ogendi

3611 Paul Njoroge

3646 Jane Wairungu

3650 Martin Wambu

3651 Mathias Mboya

3731 Nickson Aketch

3752 Krystal Muindi

3798 Elias Gitonga

3834 Josephine Oyombe

3843 Cecilia Muhoro

3853 Michael Nderitu

3895 Faith Kioko

3930 Lydia Chebiwott

3934 Robinah Akoth

4019 Della Mwihaki

4050 Boniface Kyalo

4052 Elizabeth Mumo

4064 Jemimah Keli

4085 Neville Maina

4141 Jackson Awele

4153 Ambrose Mulandi

4155 Yvonne Achitsa

4189 Mumo Kimeu

4190 Jacqueline Mula

4249 Bob Bwana


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4260 Nornael Okello

4261 Asila Kedogo

4285 Caroline Mumbi

4289 Felix Otieno

4312 Charity Kathurima

4359 Mary Nyanguka

4399 Peter Muthoni

4405 Caroline Mwangi

4444 Moses Kenyanchui

4463 Esther Wanga

4485 Mwangi Kariuki

4506 Rahab Njuguna

4553 Sarah Okimaru

4563 Bradrick Mwangu

4564 Norbert Jude

4565 Paul Kiranga

4583 Margaret Kariuki

4596 Job Ngeresa

4638 Hilda Muia

4639 Joseph Batari

4686 Anne Mungai

4695 Joyce Musuu

4703 Moses Wambua

4706 Juma Isaiah

4709 Nicholus Bichange

4754 Jaffer Markus

4797 Dr. Nathaniel Tum

4887 Mary Mutuku

4902 Brigid Njuguna

4917 Daniel Gichuki

4962 Lillian Opiyo

5000 Cyrus Oichoe

5040 Lenah Mwangi

5051 Ruth Nafula

5090 Ritah Wangari

5166 Ethel Atieno

5230 Jesse Owoko


5255 Edith Onyango

5264 Elizabeth Mweu

5391 Walter Aderi

5411 Grace Mbulula

5431 James Gichia

5442 Benson Njuguna

5460 Samuel Odhiambo

5557 Samuel Gichuki

5607 Lisa Wairimu

5616 Martha Kiilu

5737 Phyllis Kabura

5757 Githii Mweru

5759 Terry Waluwengo

5819 Wilkister Ominde

5846 Steve Mogaka

5888 Samuel Ogosi

5894 Daniel Ndung’u

5908 Irene Mbuvi

5913 Jairus Nduru

5914 Lopez June

5929 Christine Musau

5961 Nadebu Charles

5988 Christine Kimani

5989 Keziah Elmad

6004 Vivian Ochola

6053 Emma Wanjiru

6054 Muchoki Macharia

6076 Jane Otieno

6093 Danish Rayola

6102 Morris Kinoti

6108 Nyarenda Nyandemo

6221 Patrick Muthomi

6251 Elizabeth Ndung’u

6256 Christopher Wafula

6268 Edwin Wanyonyi

6287 Sheila Kennedy

6301 Damba Kennedy


6352 Stephen Saenyi

6362 Victor Akanga

6438 John Bosco

6449 Benjamin Mutua

6473 Margaret Maina

6497 Caroline Wanjiru

6568 Ogetto Omwonga

6635 Terry Wambui

6663 Wilkister Oduor

6677 Thomas Oriwa

6680 Hannah Kiarie

6681 Alice Mulee

6682 Loise Kiuri

6738 Martin Sirili

6849 Phobe Mwaniki

6891 Apollo Hillary

6928 Humphrey Kairu

6929 Japheth Kalali

6944 Tracy Vivian Odipo

7051 Bernadette Ochieng

7070 Joy Gitahi

7088 Billy Radido

7155 Tracy Kwanzu

7198 Mafrick Munene

7212 Odinga Stephen

7269 Doris Wanza

7269 Mercy Ndunge

7323 David Mwakio

7354 Patrick Tongu

7361 Jenifer Wairimu

7377 Richard Mumo

7383 Veronica Ndululu

7393 Manasses John

7418 Celestine Opiyo

7428 Margaret Mutinda

7476 Maureen Kaloki

7486 Fredrick Ragui


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Absent with apology


334 Beuttah Siganga

2028 Simon Peter Mutugi

776 Richard Ongegu

1953 Beatrice Kamau

3558 Ardeline Kaari

45 Dedan Muriithi

In attendance

Name Organization

Dolphin Narembu Nairobi County Director of Co-operatives

Lucy Kimani Westlands Sub-county Co-operatives Director

Njoroge Mwangi Westlands Sub-county Co-operatives Officer

Victor Mutisya External Auditor.

MIN 3/10/03/2018: Adoption of agenda

The agenda was adopted as proposed.

MIN 4/10/03/2018: To note and confirm the minutes of last AGM held on 18th March, 2017

The Chairman read through the previous minutes and the following was noted for correction;

a) In the list of attendance Member Number 6093 Danish Rayola’s name had been omitted.

The minutes were confirmed to be a true record of the meeting after being proposed by Cecilia Mwangangi Member Number 576 and seconded by Nicholas Malonza Member Number 2359.

MIN 5/10/03/2018: Matters arising from minutes of the previous AGM

There were no matters arising from minutes of the previous meeting.

MIN 6/10/03/2018: To note and Confirm the minutes of last Special General Meeting held on 8th July, 2017

The minutes were confirmed to be a true record of the meeting after being proposed by James Joroge Member Number 979 and seconded by Joshua Ogutu Member Number 55.

MIN 7/10/03/2018: Matters arising from minutes of the previous SGM

There were no matters arising from minutes of the previous Special General Meeting.

MIN 8/10/03/2018: Acknowledgement of and comments from the Nairobi County Co-operatives Director, Mrs. Dolphin Narembu

The Director gave a brief background on the devolution of the Co-operatives sector which had been placed under the Commissioner of Co-operatives in the Ministry of Industry, Trade and Commerce as well as under the Nairobi County Ministry of Trade, Industrialization, Commerce and Tourism.

She appreciated all the members for their attendance and welcomed all the new members. She also encouraged the Sacco to schedule the AGM as early in the year as possible. The Director commended the Sacco on its great achievements and appreciated the members for their attendance and active participation.

MIN 9/10/03/2018: To consider the Chairman’s Report for the year 2017

The Chairman welcomed members to the AGM. He thanked them for turning out in large numbers and showing great interest in the Sacco.

The following were highlights of the achievements and challenges in the year 2017;

a) Revenue: 22% increase on total income to Kshs. 141,712,653/- from Kshs. 116,346,612/-

b) Membership: The Sacco had grown to 7,308 members

c) Assets: The Sacco’s total assets had grown by 22% to Kshs. 1,316,391,855/- as at 31st December 2017 from Kshs. 1,077,553,964 in 2016

d) Core Capital: increased to Kshs. 82,503,999 from Kshs. 55,742,618 in 2016 an increase of 48%. The ratio of core capital to the total assets is 6.3% against the Strategic Plan of 10%.

e) Deposits: Deposits had grown by 26% from Kshs 934,119,547/- in 2016 to Kshs. 1,124,280,103/- in 2017.

f) Loans:

i) The Sacco advanced loans to members totaling to Kshs. 607, 507,000/- in 2017.

ii) The total loan portfolio increased by 8% to Kshs. 1,069,097,178 from Kshs. 986, 462,349 in 2016.

iii) The Sacco had managed to reduce its non-performing loans to 4% which was below the industry recommendation of 5%.


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iv) The Sacco was also inviting the defaulters who were in distress and willing to pay, to have their loans rescheduled.

g) ICT: The Sacco had made great strides in leveraging on ICT to enhance efficiency and convenience in service delivery.

The Chairman launched the Sacco Portal which would enable members access their accounts online.

h) LSK Sacco Benevolent Fund: The Management Committee had during the year actualized the Benevolent Scheme.

i) Strategic Plan 2017-2021: This was developed during the year to address medium to long term objectives to steer the Sacco to the projected growth in the following 5 years.

The Strategic Plan would focus on the following six objectives and priorities;

• Financial performance

• Operational efficiency and infrastructure

• Human Resource management

• Membership, marketing & education

• Product and services

j) Flexi-Cheti Practicing Certificate Loan: The Sacco partnered with LSK and the Young Lawyers Committee to launch a practicing certificate for advocates below 5 years of practice. This would aid Advocates with difficulties financing their practicing certificates.

• He especially thanked the members of staff for working tirelessly during the year to realize impressive results.

• He then appreciated the Management Committee for the support they had accorded him as the Chairperson of the Society.

• He acknowledged and appreciated the Ministry of Industrialization & Enterprise Development, KUSCCO, CIC, Co-operative Bank, legal Advisors and the Auditors Victor Mutisya for the institutional support that they had given the Sacco. He also gave special recognition to the Law Society of Kenya and to all branches of the Law Society for their tremendous support. We also wish to appreciate our

He thanked all the members, staff and board members for their continued loyalty, support in steering the Sacco to greatness.

The Report was adopted after being proposed by Walubengo Waningilo Member Number 2016 and seconded by Julius Kimani Member Number 2540.

MIN 10/10/03/2018: To consider the Supervisory Board Report for the year 2018

The Chairman thanked the Management Committee and the Secretariat for their prudent fiscal management of the Sacco and made the following recommendations on areas of concern;

a) Acquisition of Paybill Number:

The Sacco was yet to acquire its own pay bill number pursuant to lessen the intermediary risk and any disconnect that may be experienced between Co-operative Bank and Safaricom.

b) Loans issuance:

It was noted that there was great improvement in the turnaround times for loans disbursement but urged MC to find modalities of processing the loans faster considering that competitors in the market had gone a notch higher to issue loans within minutes.

With the proposal to increase the lending limit to Kshs. 25Million, the MC needed to consider increasing the repayment period to 15 years to make it affordable to members.

c) MIS:

The Committee appreciated that the Management had made progress towards the completion of the MIS system and recommended enhanced security protocols, a Business Continuity Plan (BCP) and a Disaster Recovery plan (DRP) in case of any disaster.

d) Benevolent Fund:

The MC was commended for actualizing the benevolent fund for members. The Super visor y Committee recommended extensive education to the members, on its benefits.

e) Outstanding issues from previous reports:

The issue of the lost files was yet to be addressed conclusively. Being that deposits are liabilities to the Sacco, the exposure caused by the lost files was too risky. The MC was urged to conduct data clean up and try to ascertain the amounts in the lost files.

f) Legal matters:

The Committee recommended the recruitment of a legal officer to inter alia prosecute and supervise tribunal cases.


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g) Membership:

The membership grew by 42% of the target and there were 81 withdrawals. The MC was urged to put more effort in recruiting members and not to only focus on Advocates in order to grow the membership.

h) Dormant members:

He encouraged members to contribute monthly to be able to access bigger loans. This would also make the Sacco more vibrant.

The Report was adopted after being proposed by Nicholas Bichanga Member Number 4709 and seconded by Ruth Mabele Member Number 5051.

Reactions to the Supervisory Board’s Report

i) Jemimah Keli Member Number 4064 commended the Supervisory Committee for being the Sacco’s watchdog. She concurred on the need for a Legal Officer to follow up on defaulters. She further inquired on the steps taken against defaulting Committee members noting that it is not good practice.

The Supervisory Committee Chairman answered that the Management Committee had issued the requisite Notice to the defaulting board member, as provided for in the By-laws.

ii) Christine Kipsang Member Number 604 inquired on the status of the lost files. She also proposed need for mediation for debt recovery where members could be asked to offer pro-bono services.

The Sacco Chair explained that these are not newly lost files but are outstanding issues since 2008; the same were lost fraudulently and were being dealt with by the banking fraud department.

The Supervisory Committee Chairman noted that they were not exactly debt files, just liabilities for the Sacco and that the matter had been reported to the police but needed to be hastened.

iii) Daniel Ndungu Member Number 5894 inquired on the deadline for the paybill since 2014 insisting that there needs to be a deadline for the Management to implement the same.

The Treasurer explained that the Sacco has a Paybill that is working but the one recommended by the Supervisory Committee would be tackled with time.

iv) Walter Aderi Member Number 5391 inquired on the delay for the check off system for Judiciary and other administration of justice employees. The Treasurer replied that check off provides its own

unique challenges which makes it unrealistic and unsustainable since they involve long repayment periods. The Sacco was therefore implementing it gradually.

v) Anthony Kungu Member Number 862 inquired on the type of loans would be over Kshs. 15 Million. The Supervisory Committee Chairman noted that most loans above Kshs. 5Million are usually development loans

Samuel Mwaniki (Member Number 483), a member of the Credit Committee replied that the Sacco would through Policy consider higher repayment periods for the long-term loans after assessment of the member’s savings and conducting a study on how the long borrowing periods would affect the cash flow at the Sacco.

MIN 11/10/03/2018: To receive and note the list of defaulters

The list of defaulters was presented to members. Members were notified that the list was for internal consumption and not for circulation to general public. They were requested to note the members in the list and assist in collection of defaulted amount.

MIN 12/10/03/2018: To receive, consider and adopt the Financial Reports for the period ended 31st December 2018

The Treasurer took the members through the financial reports highlighting;

a) Revenues for the year 2017 grew to Kshs. 141,712,652 from Kshs. 116,346,612 in 2016

b) Total expenditure for the year rose to Kshs. 130,710,652 compared to Kshs. 112, 931,308 in the previous year. This included interest expense on member deposits of Kshs. 95,362,033 paid at the rate of 9% on weighted average compared to Ksh 76,791,065 paid out in 2016.

c) The net surplus for the year was Kshs. 11,002,000 from which 20% was transferred to statutory reserve, dividends on share capital of Kshs. 5,246,703 would be paid out at the rate of 15%.

d) Total member capital had grown to Kshs. 82,257,296 from Kshs. 55,742,618 in the previous year

e) Total assets grew from Kshs 1,077,553,964 in 2016 to Kshs. 1,316,330,626 in 2017.

f ) Loan book grew from Kshs. 986,462,349 in 2016 to Kshs. 1,069,097,178 in 2017.


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g) Member deposits increased by 17%, closing at Kshs. 1, 124,280,103/-up from Kshs. 934,119,547/- at the close of our previous financial year.

h) As at 21st February 2018, there was over 168 Million in CIC Money Markets

Report by the Independent Auditor

The Auditor Mr. Victor Mutisya confirmed that the financial accountS gave the true state of the society financial status as at 31st December, 2017 save for the suspense accounts of Kshs. 4,268,896/- (compared to Kshs. 4,434,624/-) in respect of unanalyzed standing orders and direct bankings by members. He also confirmed that the accounts had been approved and registered with the Co-operative Commissioner.

The Report was adopted after being proposed by Anthony Muthoka Member Number 2084 and seconded by Hillary Apollo Member Number 6891

Reactions to the Financial Report

i) Christine Kipsang Member Number 604 and Mary Muli Member Number 507 sought clarification on the suspect accounts and the way forward.

The Treasurer explained that the unexplained bankings were not 2017 transactions, but money that had accumulated for more than 10 years of which some had been resolved over the years as individual members presented receipts for authentication. The Sacco had also written to the Bank requesting that they capture basic details to address the issue.

ii) Tim Mweseli Member Number 919 inquired on the written off debt

The Treasurer explained that the debt was for an IT system procured years back which was partly paid for. The Vendor did not complete the customization for the Sacco. The Management engaged the Vendor to write off the debt which he agreed to in 2016 and that amount was converted into income.

iii) Jemima Keli Member Number 4064 inquired on why the Sacco had issued less loans which could only translate to less interest earned by the members.

The Management promised to market the loans more.

MIN 11/10/03/2018: To approve payment of interest on deposit as at 9% per annum (on weighted average) and dividends at 15% on fully paid share capital and the same be credited in each member’s deposit account

The Chairman explained that the agenda would be split

into two parts being that there was a Motion raised in relation to the agenda. The Agenda was split as follows;

a) Approving payment of interest on deposit at 9% per annum (on weighted average) and dividends at 15% on fully paid share capital

Members unanimously agreed on this first part of the agenda. The resolution was passed after being proposed by Alice Kimani Member Number 240 and seconded by Felix Kioko Member Number 3057.

b) The issue of crediting the dividends and interest into members’ accounts or members being allowed to elect how they wish to dispense with their dividends

The Chairman explained that for the second part, the Management proposed capitalization of the dividends and interest as had been done previously to increase members’ deposits. The Chairman then invited Mr. Nicholas Malonza Member Number 2359 to present his Motion. 89

Mr. Malonza explained that his Motion proposed 4 resolutions;

i) That members be allowed to make an election between crediting the amounts into their respective accounts and receiving pay outs

ii) That the above resolution be effected immediately and to apply to the 2018 AGM declared interest and dividends

iii) That within 30 days of passing the above resolutions, members instruct the Sacco in writing, failure to which the monies shall automatically be capitalized.

iv) That the respective members’ election to remain in force until subsequent years.

After much deliberation, the members passed the Motion with the following amendments;

1. The Sacco be allowed a maximum of 75 days to pay out the interest and dividends

2. The Management Committee was mandated to find modalities of implementing the Motion considering various dynamics.

This was passed after being proposed by Sarah Amoit Member Number 4553 and seconded by James Joroge Member Number 979.

MIN 12/10/03/2018: To authorize Members of the AGM to appoint auditors for the year 2018-2018 and fix their remuneration

The Treasurer explained to the members that the Sacco


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had invited tenders from the pre-qualified list of Auditors approved by the Ministry. Only 5 firms responded with 1 firm not attaching any documents.

After deliberations the Firm of Victor Mutisya & Associates appointed and the remuneration fixed at Kshs. 208,800/- after being proposed by Maurice Omuga Member Number 210 and seconded by Andrew Ombwayo Member Number 1003.

MIN 13/10/03/2018: To consider and Approve the estimates of income and Expenditure for year 2018-2018

The Treasurer presented the budget for 2018-2019 with the following highlights;

a) There was provision for bad debts to cater for discrepancies between decreed amounts –v- the interest charged by the Sacco

b) There was going to be more emphasis on the ICT infrastructure

c) The staff salaries and medical expenses had increased as the number of staff had also increased.

This was adopted after being proposed by Nicholas Bichanga Member Number 4709 and seconded by John Kimathi Member Number 971.

MIN 14/10/03/2018: To increase the borrowing ceiling to a maximum of Kshs. 25,000,000

After deliberations, the resolutions was passed after being proposed by Maurice Omuga Member Number 210 and seconded by Johnstone Kioko Member Number 1778.

M I N 1 5 / 1 0 / 0 3 / 2 0 1 8 : To Au t h o r i z e / G r a n t Sacco borrowing powers to a maximum of Kshs.1,000,000,000

After deliberations, the resolutions was passed after being proposed by Japheth Mwalimu Member Number 775 and seconded by Christine Kipsang Member Number 604.

MIN 16/10/03/2018: To approve payment of honorarium of 2% on profit before tax to the members of the Management Board and Supervisory Board as a token of appreciation

After deliberations, the resolutions was passed after being as proposed by Maurice Omuga Member Number 210 and seconded by Jane Gitau Member Number 1255.

MIN 17/10/03/2018: To authorize the Sacco to acquire/lease/build additional office space

After deliberations, the resolutions was passed after being

proposed by Maryanne Wanjiru Member Number 471 and seconded by Kimeu Mumo Member Number 4189.

MIN 18/10/03/2018: To amend LSK Sacco By-laws as per attached proposal

The Secretary took the members through the proposed amendments to the By-laws and explained that the changes were made to align Sacco operations to best practices and the By-laws to the Ministry’s Model By-laws.

The following amendments were passed after deliberations;

a) Membership be expanded to include selected members of the public, approved by the Management Committee

b) The minimum share capital was increased to Kshs. 30,000/- which transfer would be staggered up to 2021. This is to enable the Sacco grow its core capital to 10% of the total assets as per the Strategic Plan 2017-2021.

c) At the time of withdrawal, share capital is only transferrable and not refundable

d) The required majority for amendment of By-laws was set at a simple majority

e) Rescheduled loans to be charged an interest determined by the Management Committee.

These Resolutions were passed after being proposed by Gad Gathu Member Number 3061 and seconded by Johnstone Kieti Member Number 1262.

MIN 19/10/03/2018: To elect four members of the Management Board following the retirement of Justus Munyithya, Lawrence Mugambi, Gladys Wamaitha, who are offering themselves for election and resignation of George Akoto

The four positions were declared vacant and the elections presided over by the Co-operative officers Lucy Kimani and James Mwangi.

Members were informed that only 2 members had applied by sending in their nomination forms. One of the nominees however, was not present for the AGM. Therefore, only the following four candidates were available and qualified for the positions;

a) Justus Munyithya, proposed by James Joroge Member Number 979 and seconded by Johnstone Kioko Member Number 1778

b) Lawrence Mugambi; proposed by Maurice Omuga Member Number 210 and seconded by Ruth Mabele Member Number 5051


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c) Gladys Wamaitha; proposed by Andrew Gachoka Member Number 1605 and seconded by Alice Kimani Member Number 240

d) Gad Gathu; proposed by Bradrick Mwangu Member Number 4563 and seconded by Paul Kinyua Member Number 4565

The four were elected unanimously and unopposed.

The newly elected officials thanked the members for their confidence in them and vowed to work hard to take the Sacco to greater heights.

MIN 20/10/03/2018: To elect one member of the Supervisory Committee following the retirement of Joseph Makumi who is offering himself for re-election

Members were informed that only one person had applied for the vacant position thus being the only one available and qualified for the elections;

a) Joseph Makumi

He was re-elected unopposed. This was proposed by Mercy Njeri Member Number 1027 and seconded by Japheth Mwalimu Member Number 775. The newly elected official noted that it had been an honour to serve and he would continue to do so.

MIN 21/10/03/2017: Any Other Business

The Secretary confirmed that no notice had been received.

The Chairman thanked all the members of the Management and Supervisory Committees for their tireless efforts. He once again thanked the members for their patience and participation and invited them for lunch.

There being no other business, the meeting ended at 2:05pm with a word of prayer from the Callen Masaka Member Number 611.

Confirmed By

Justus M. MunyithyaChairman

Kellen G. NjueHon. Secretary


www.lsksacco.co.ke

CHAIRMAN’S REPORT FOR THE YEAR 2018

Justus M. Munyithya Chairman, Management Committee

LSK Sacco Ltd

On behalf of the LSK Sacco Management Committee, it is my great pleasure to welcome you all to this very important occasion in our Society’s calendar;

our Annual General Meeting 2019. Thank you for attending the meeting in large numbers and for having interest in your Sacco. We have converged here on this day in order to review our performance and to project our future. I wish to thank my fellow Management Committee members, the Supervisory Committee members, staff, you members, the Ministry of Industry, Trade & Co-operatives and everyone else for the support in making LSK Sacco what it is today. Let me take this opportunity to make some remarks and observations regarding our society’s performance in the year 2018.

1. MembershipOur membership grew to 8,236 members as at 31st December 2018; up from 7,308 members in 2017 a total of 928 new members. The Management Committee is continuing to invest resources in recruitment of new members to meet our annual target of 1,500 members.

Extension of Common BondIn the 2018 AGM, members approved extension of the common bond to include members of the public vetted by the Management Committee. The Sacco in 2018 continued to invest in systems and operations upgrade to enable it achieve this reality while paying close to attention to the risk associated with general membership. The Sacco will in the year 2019 operationalise the admission of other members beyond the current bond.

Figure 1-Membership growth

2010 2012 20142011 2013 2015 2016 2017 2018

9000

8000

7000

6000

5000

4000

3000

2000

1000

0

26233100

38004287

52225809

6434

7308

8236

Members

2. Sacco RevenueThe total revenue in 2018 increased to Ksh 169,002,675 from Kshs. 141,712,653 realized in 2017 an increase of 19%. Our main income which is interest on loans income grew by 11% from Kshs. 117,976,772 in the year 2017 to Ksh 131,088,784.

3. Share CapitalEvery society member is required to own the society by holding a certain number of shares as prescribed by the Sacco by-laws. It is a long term source of finance and represents a unit of ownership Minimum shareholding per member is 1,500 shares and each share is worth Kes 20. Shares are not refundable but are transferable and they can NOT be used as collateral for loans. All SACCO’s are required by law to have minimum share capital.

The Minimum share capital per member is Kshs. 30,000. Shares earn dividends depending on the society ’s performance.

Members passed a resolution in last year’s AGM to have share capital per member at a minimum of 1,500 shares each valued at Ksh. 20 having a total value of Ksh. 30,000. The management Committee is to implement this resolution in parts such that by the year 2021, when our


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current Strategic Plan expires each member will have met the minimum required share capital. This will ensure that LSK Sacco, as a financial institution has safety and soundness and attains adequate capital that is required to promote public confidence.

LSK Sacco Capital analysis

Ratio Current status

Required/Statutory status

Deficit /Surplus

*Core capital/ Total Asset

5.7% 10% -4.3%

Core capital/Total Deposit

6.7% 8% -1.3%

**Institutional Capital/ Total Asset

3% 8% -5%

Liquid Asset/ Total Deposits

18% 15% 3%

*Core Capital = fully paid up members’ share capital + statutory reserves + retained earnings.

**Institutional Capital= Core capital less Members’ share capital.

4. Interest on deposit and dividendsThe Management Committee in the current year has proposed payment of interest on deposits at the rate of 9% on weighted average and dividends on share capital at 15% which is very rewarding to members. Members will be allowed a window to choose how they would want their interest and dividends paid out. However, in making that choice the management committee considers the members other obligations owed to the Sacco e.g. loan repayments, unremitted deposits and shares. The choices available are cognizant of the above member obligations and will be taken into account when approving a choice.

This year we propose to pay Kshs. 117,794,279 as interest on members deposits compared to Kshs 95,362,033 paid in 2017 at a rate of 9%. We also propose to pay Ksh. 6,811,376 in 2018 as dividend on share capital compared to 5,246,703 in 2017 which is a rate of 15%.

Cash-flow Analysis Being a non-check off Sacco, we have to maintain a very close on our cash-flow position at all times. This is to ensure that we are able to meet our lending obligations and other operational needs. The increase in the loan repayment period means that more members are borrowing and we need to be ready to meet their expectations on time.

We are also in a situation where we need to make intensive capital investments which will require us to have liquid cash.

Cash-flow trends

2014 2015 2016 2017 2018

1,000,000,000900,000,000800,000,000700,000,000600,000,000500,000,000400,000,000300,000,000200,000,000100,000,000

0

Deposits Collections Loan Repayments Loan Disbursements

The Management Committee has over time proposed to members to capitalise interest and dividends and this year the Management proposes that we maintain that tradition for the following reasons:

i) Members will be able to borrow more since their deposits will increase,

ii) The interest paid will be compounded when paying interest for the current year,

iii) When we retain the cash flow within the Sacco system, we are able to pay higher interest and dividends since the Sacco does not need to borrow to disburse loans and or pay dividends,

iv) The Sacco does not have a FOSA and it will be therefore very difficult and tedious to process individual member payment to all individual member accounts,

v) It’s one of the best ways to accumulate wealth,

vi) It will enable us achieve our strategic goals especially in growing capital and;

vii) Consultants have strongly advised as such.

5. Member DepositsTotal member deposits increased by 303,529,335 an increment of 27% from Ksh. 1,124,280,103 in 2017 to Kshs 1,427,809,438 in 2018. We continue to appeal all members to make regular monthly savings and enhance their monthly deposits. This way they can qualify for higher loans and earn more interest from their deposits.

Figure 2- Members Deposits

Total Deposits (in ‘000,000)

2011 2013 20152012 2014 2016 20182017

1600

1400

1200

1000

800

600

400

200

0221

311408

565

743

934

1,124

1,427


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6. Loans to Members

a) Loans Issuance Our core business is lending to members. During the year, the Sacco advanced loans to members totaling to Ksh. 922,291,207 in 2018. The total loan portfolio increased by 27% to Kshs. 1,353,855,006 from Kshs. 1,069,097,178 in 2017. The Sacco financed all the member loans from its internal sources. However, the Sacco has accumulated savings with KUSCCO of Ksh. 26,269,873 to cushion it in case the cash flow fluctuations demand external financing.

The Management Committee will also be seeking for a resolution form the members to increase the maximum lending per member from Ksh. 25,000,000 to Ksh 30,000,000.

b) Extension of loan repayment periods.As promised in the 2018 Annual General Meeting, the Management Committee reviewed the maximum loan repayment period from 84 months to 120 months. The review is expected to make the monthly instalment affordable to a borrower and hence more members can borrow and repay more comfortably.

Figure 3 159

317428

604

743

986

1,069

1,353

Total Loans (in ‘000,000)

2011 2011 2013 20152012 2014 2016 20182017

1600

1400

1200

1000

800

600

400

200

_221

c) Non – performing loansLSK Sacco has over the years managed to reduce our non-performing loans from highs of above 7% to about 3.5 % which is below industry recommendation of below 5%.However, the management committee remind members of their obligations to repay their loans on time to maintain their positive credit profile with the Sacco and avoid being listed negatively with the Credit Reference Bureaus. A list of all loans in default is shared with the members for discussion and noting. Let us all remind our friends and colleagues to meet their obligations to enable other members and the Sacco realize its income.

7. Review of Sacco By-LawsWe have accumulated amendments to the By-laws approved in the AGM which are pending registration with the Commissioner. In the year 2018, the Commissioner advised us to table the various amendments in this AGM and forward them for registration. The amendments will be tabled as approved earlier for your ratification and onward transmission to the Commissioner.

Additionally the Management Committee proposes a further amendment on By-law 43(b) (iv) to have anyone

seeking an elective position in the Management or Supervisory Committee to have contributed deposits of at least Ksh. 2,000,000 for advocate members and Ksh. 600,000 for Non-advocate members.

8. Information and Communication Technology (ICT)

Last year we launched a Self-care member portal https://www.webportal.lsksacco.co.ke designed to allow members access certain reports and such as;

i) Access and download their account statements;

ii) Check the performance of loans they have guaranteed;

iii) Communicate and upload documents to the Sacco;

iv) Check interest and dividend earned and choose allocation; and

v) View account status and recent payments done to the Sacco.

The Sacco will continue making more investments in the ICT infrastructure and resources to ensure the growth and operations of the Sacco are enhanced and safeguarded. We shall continue to leverage on IT to improve service delivery to members.

9. LSK Sacco Benevolent Fund.In 2017 the Sacco established a benevolent scheme to support members upon demise by doing the following;

a) Member with a loani) Pay outstanding loan;

ii) Pay an equivalent amount of deposits held by the member to the beneficiaries;

iii) Pay a last expense cover of Ksh. 100,000 and

iv) Cover to a limit of 30% of the sum assured (loan balance) and Ksh. 1,000,000 for a first time diagnosis of critical illness.

b) Member with no loan i) Pay an equivalent amount of deposits held by the

member to the beneficiaries;

ii) Pay a last expense cover of Ksh. 100,000

The premium is covered by a variable monthly contribution from the member and a fee of 0.25% of any loan issued to a member.

10. Office SpaceIn 2012 when we acquired our own office space at Crawford


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Business Park, we were a total membership 3,175 of and had total assets of Ksh. 362,369,106. Currently we are have a total membership of 8,236 and total assets of Ksh. 1,663,102,331 which means we have outgrown the space we currently occupy. We have therefore proposed a budget of Ksh. 160,000,000 for acquisition of office space for use by the Sacco.

11. Human ResourceArising from the growth that the Sacco continues to experience, we will be making investment in our existing human resource capacity as well as continue to hire key competencies as the need arises. To this end our human resource budget has increased as you will note in the Budget estimates for 2019 to be tabled later.

12. Capacity BuildingTo enhance service delivery, the Sacco will be making investments aimed at capacitating members of the Board members and Staff to a higher level of training and exposure to be able to address the changing needs of the Sacco.

13. Corporate Governance The Management Committee of LSK Sacco Ltd is responsible for the governance of the society and is accountable to you as the members of the society. We ensure that the society complies with the Co - operative Societies Act and our by – laws. We attach great importance to the need to conduct the Sacco’s business with integrity and as such members of the Committee are not allowed to engage in any business with the Sacco, guarantee loans to members and default in their loan repayments.

The Supervisory Committee, being the watchdog committee of the Sacco, has executed their duties without undue influence from the Management Committee. This is in effort to ensure that there are sufficient and effective internal controls and that the Sacco is run in the best interest of the members without exposing the members’ contributions to uncontrollable risks.

a) Committee sitting allowances. We last did a review of the committee sitting allowances in 2016 to Ksh. 5,000 for Management Committee and 3,000 for Sub-committee meetings. A comparative study shows that we pay one of the lowest allowances to committee members for organisations of similar size. We will therefore, be seeking your approval for a resolution to increase the committee sitting allowance to Ksh. 10,000 and Ksh 5,000 for Management committee and Subcommittee meetings respectively.

b) HonorariaSince 2015 we introduced a performance based method of deciding the Honoraria payable from the surplus to the Committee members as a token of appreciation. Members approved a rate of 2% of the profit before tax and interest on deposit. This meeting will be seeking for your approval to pay honoraria of Ksh. 2,609,918 which is equivalent to 2% of the profit before tax and interest on deposit.

14. Strategic Plan

a) Trends for the past five year Despite the challenges in the operating environment over the years and cut-throat competition in the market, the Sacco has continued to post impressive results. The growth experienced by the Sacco over the years is as a result of proper planning. Key highlights of this growth over the 5 years are as below;

i) Member deposits grew by 252% from Ksh, 565,641,665 in 2014 to Ksh. 1,427,809,438 in 2018;

ii) Loans to members grew by 224% from Ksh. 604,238,044 in 2014 to Ksh. 1,353,855,006 in 2018;

iii) Total Assets grew by 256% from Ksh. 648,718,306 in 2014 to Ksh. 1,663,102,331 in 2018;

iv) Total revenue grew by 254% from 66,494,313 in 2014 to Ksh. 169,002,675 in 2018 and

v) Core capital grew by 288% from 32,956,215 in 2014 to Ksh. 94,962,168 in 2018

Member Deposit, Loans & Asset analysis

2014 2015 2016 2017 2018

1,800,000,0001,600,000,0001,400,000,0001,200,000,0001,000,000,000

800,000,000600,000,000400,000,000200,000,000

0

Member Deposits Loan to members Total Assets


www.lsksacco.co.ke

b) Strategic Plan 2017-2021 Priority Areas Objectives and Performance As an outcome, six priorities and objectives were established as follows:

Pillar Objectives STATUS

1 Financial performance • Objective 1: To increase the Core Capital from 6.3% to at least 14% of the total assets by 2021 (10% within two years and to at least 14% by 2021)

• Currently the core capital is at 5.7% of the total assets. The ration will rise as we implement the resolution on share capital and retain more reserves.

• To increase share capital from Kes. 10,000 to Kes 30,000 by 2022

• The resolution to increase passed in 2018 AGM. The Sacco is implementing this resolution gradually.

• To increase member deposit from

• Kes. 1 Billion to Kes. 3 Billion by 2021

• Our deposit are Ksh. 1,427,809,438 which is 48% of the target.

• To grow profits by 50% annually • Our profits grew by 20% in 2018.

2 Operational

Efficiency and Infrastructure

• To enhance the efficiency levels of the Sacco operations to 100% from 2017 and annually thereafter;

• The Sacco has invested greatly in IT systems and infrastructure that have increased our efficiency.

• To continuously enhance the security of members funds and the Society assets

• We continue to give utmost prudence to member’s fund.

3 Human Resource Management and Administration

• To recruit and retain professional , competent, productive, dedicated and loyal staff members

• We have continued to fill Human resource positions professionally.

4 Membership, Marketing & Education

• To grow membership by 1,500 members annually

• We recruited 926 members in 2018 which is 62% of the annual target

• To ensure all members are trained annually • In 2018, we did member education in Nairobi and Eldoret. We also partnered with LSK branches to reach out to more members.

• To retain active membership at 100% of total members at all times

• Out of 8,236 members, 5,306 (71%) are active.

5 Product and services • To undertake continuous diversification of products

• We have rolled out new products and repackaged exiting ones to make them.

• To increase patronage of Society products

• To increase efficiency in service delivery • Our turnaround time in disbursing loans has reduced from averages 21 days to 14 days.

• Our Customer relationship program and customer service department have enhanced our efficiency in delivering our services.

• Our customer service department

The projected growth cannot be achieved without the support of all of us. Therefore, I call upon each one of us as shareholders to give maximum support to the Management Committee and staff to enable us realize these goals. When achieved all of us shall be beneficiaries.

Conclusion I want to thank all the members for their continued loyalty, support and for choosing LSK SACCO as their investment vehicle. Special thanks to members of staff for working tirelessly during the year to realize impressive results. I also want to thank the Management Committee for the support they have given me as the Chairperson of the Society.

I also want to acknowledge, recognize and appreciate the Ministry of Industrialization & Enterprise Development, KUSCCO, CIC, Co-operative Bank for the institutional support that they have given us. Special recognition to the Law Society of Kenya and to all branches of the Law Society for their tremendous support. We also wish to appreciate our legal Advisors, our Auditors victor Mutisya and Associates, members of the Supervisory Committee and everyone else who have contributed to our success.

Justus M. Munyithya Chairman, Management Committee LSK SACCO LTD


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SUPERVISORY COMMITTEE (SC)SUPERVISORY REPORT FOR 2018

This is the Supervisory committee’s report on the affairs of the Sacco.

The committee has reviewed the processes, transactions and overall performance of the society for the period under review and we commend the board and management for prudent fiscal management of the Sacco.

We however wish to make the following recommendations on areas of concern which in our considered opinion require improvement.

1. Membership

The SC notes and commends great progress in recruitment of new members which from in 2018 stands at 8,236 members as compared to 7,307 in 2017. The committee further noted that the number of members who exited the Sacco in the year were 70 compared to 64 in 2017.

a) Member clustering We note that one of the reasons given by members in exiting is lack of guarantors. To resolve this the SC had recommended that members be further clustered within regions using data such as years in regions, years of practice, age, gender, etc. Clustering on the basis of regions will enable members manage the affairs of the Sacco through the delegate system and control costs of AGMs in the future a case in point being 2017’s AGM which cost the members Kshs 790, 473/=. In 2018 the costs rose to Kshs 852, 300/= .To defray the increase part (25%) of those costs were apportioned to LSK HOUSING.

We urge the management to hasten the process of clustering members into specific categories based on age, region, gender and other unique features for more pointed marketing. This would assist members in seeking guarantee-ship as well as enable us to define and design our products around these clusters.

b) Dormant members The committee notes that there are still a huge number of dormant members in the Sacco. Out of the total 8,236 members, 2330 members are dormant representing a 28% of the membership. The SC recommends to the Management to find ways of activating them.

c) Extension of the common bond. The AGM approved extension of the common bond in 2018 for the qualification of membership. Currently our membership is restricted to Advocates; their immediate family members, employees and other persons in the administration of justice sector. We note that the MC is yet to operationalize this resolution and we urge them to work on it on a priority basis and finalize the membership policy.

2. Loans Issuance

2.1 Turnaround time. The SC notes and commends the improvement in turnaround times for loans disbursement whose average turnaround time for normal loans is 19 days and emergency loans are 3 days. The SC believes that the Sacco can do better and advises the MC to look into ways of disbursing loans even faster.

The Committee notes that with effect from mid-July 2018 the Credit Committee has been meeting weekly as opposed to fortnightly as was the case previously. We commend this resolution as it will go a long way in improving service delivery.

2.2 Adoption of technology in funds disbursement. The SC notes that the Sacco is yet to re-engineer its business model to meet the needs of a very tech-savvy population. For example, the MC needs to consider issuing short term loans guaranteed by own deposits and applied and disbursed electronically through electronic payment platforms.

In addition, the Sacco needs to adopt the use of technology to auto approve loans depending on one’s deposits and liabilities to the Sacco.

2.3 Extension of loan repayment period.The SC notes that the loan repayment has been extended to 120 months. This will enable borrowers meet their monthly scheduled payments and therefore increase loan uptake and reduce default. The SC commends the MC for the decision to extend the loan repayment period and recommends that members take advantage of the same & consider rescheduling their loans.


www.lsksacco.co.ke

2.4 Costs of refinancing. We note that the costs of refinancing a loan is prohibitive as the costs sometimes run into over 20% of the amount borrowed. We urge the MC to look into this with a view of making it easier and cheaper for members who have borrowed and are repaying well to refinance their loans.

3. MIS System

The SC notes that progress has been made towards completion of the MIS system but the secretariat is yet to document an I.T. governance framework.

It is also noted that a Business Continuity Plan (BCP) and Disaster Recovery Plan (DRP) are being drafted and the SC recommends that this process be prioritized.

The SC’s concern is that in the last one year only customization of the system has been done and there are fears that by the time the system is fully rolled out it may be redundant. There is only one person assigned to manage the system. This is a risky situation considering that access controls and user access rights are held by the same person. We recommend that the MC creates additional capacity for succession planning and proper security of the system.

4. Staff Matters

We note that there are many vacant key positions in the Secretariat that are yet to be filled substantively. We note further that for over 2 years the Management Committee has taken no steps to fill these positions. We recommend that these position be filled as soon as possible. This will create a sense of ownership and commitment by staff who are holding positions in acting capacity and are yet to be confirmed.

The SC notes that there are departments where there is total dependency on one or two persons. This gives rise to personnel risks since there in no succession mechanism. The SC recommends that the MC looks out into the issue and address it thoroughly.

5. Office Space

The SC notes that the Sacco has outgrown the current premises it occupies on 3rd floor of Crawford Business Park. Our SACCO has grown exponentially from an asset base of Ksh. 362 Million in 2012 when the office space at Crawford Business Park was purchased, to Ksh. 1.66 Billion in 2018. The SACCO is also liquid enough and the SC recommends that members consider directing the Management Committee to take steps to look for space for the development of a home for the SACCO.

CONCLUSION

The Supervisory committee (SC) commends Board and staff for the diligent stewardship of the Society resources and promising overall policy and direction for prudent management of Society.

Confirmed: -

Collins Wanderi Chairman

Joseph Makumi Secretary

Salome MuhiaMember


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21

STATEMENT OF THE BOARD OF DIRECTORS RESPONSIBILITIES

FINANCIAL REPORTS

The SACCOs Act, No 14 of 2008 requires the Management Committee to prepare financial statements for each year which give a true and fair

view of the state of affairs of the Society as at the end of the financial year and of its operating results for that year in accordance with International Financial Reporting Standards (IFRS.) It also requires the Management Committee to ensure that the Society keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the Society. The Committee is also responsible for safeguarding the assets of the Society and ensuring that the business of the Society has been conducted in accordance with its objectives, by-laws and any other resolutions made at the society’s general meeting.

The Management Committee accepts responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with IFRS and in the manner required by the SACCO Societies Act No. 14 of 2008. The Management Committee is of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the Society and of its operating results in accordance with the IFRS. The Management Committee further accepts responsibility for the maintenance of accounting records which may be relied upon in the preparation of financial statements, as well as adequate systems of internal financial control.

Nothing has come to the attention of the Management Committee to indicate that the Society will not remain a going concern for at least twelve months from the date of this statement.

Approved by the Management Committee on 20th February 2019 and signed on its behalf by:

Justus Munyithya Chairman

Lawrance Mugambi Treasurer

Kellen G. NjueSecretary


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STATISTICAL INFORMATIONFOR THE YEAR ENDED 31ST DECEMBER 2018

2018 2017

MEMBERSHIP

Active 5,906 5,129

Dormant 2,330 2,179

Total 8,236 7,308

Dormant Members are those members who have not made any payments to the Society over twelve (12) consecutive months.

FINANCIAL KSHS KSHS

Total Assets 1,663,102,331 1,316,330,626

Members Deposits 1,427,809,438 1,124,280,103

Loans to Members 1,353,855,006 1,069,097,178

Investment 2,137,626 2,137,626

Share Capital 45,409,170 39,179,646

Interest on Members Deposits 117,794,279 95,362,033

Dividends 6,811,376 5,246,703

Institutional Capital 49,352,998 43,080,650

Core Capital 94,962,168 82,257,296

Total Revenue 169,002,675 141,712,652

Total Loan Interest Income 131,088,784 117,976,772

Total Expenses 153,109,033 130,710,652

Employees of the Sacco 23 25

Key Ratios

Capital Adequacy Ratio

Institutional Capital/Total Assets 3.0% 3.7%

Core Capital / Total Assets 5.7% 6.3%

Liquidity Ratio

Liquid Assets/Total Deposits & Long Term Liabilities 18.0% 16.8%

Total Expenses/Total Revenue 91% 92%

Interest on Members Deposits/Total Revenue 70% 67%

Interest Rate on Members Deposits 9.0% 9.0%

Dividends 15% 15%


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23

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF LAW SOCIETY OF KENYA CO-OPERATIVE SAVINGS AND CREDIT SOCIETY LIMITED FOR THE YEAR ENDED 31ST DECEMBER 2018

We have audited the accompanying financial statements of Law Society of Kenya Co-operative Savings and Credit Society Limited set out on

pages 6-19 which comprise the Statement of Financial Position as at 31st December 2018, and the Statement of Comprehensive Income, Statement of Changes in Equity, and Statement of Cash Flows for the year then ended, and a summary of significant accounting policies and other explanatory notes.

The Management Committee’s Responsibility for the Financial Statements The Management Committee is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and the requirements of the Kenyan Sacco’s Societies Act. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement

Auditors’ Responsibility Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the Auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the Auditor considers the internal control relevant to the society’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of society’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the

reasonableness of accounting estimates made by the Management Committee, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Limitation of Scope The Accounts reflect a Suspense Account item (credit) of Kshs 5,690,460 in respect of unanalyzed standing orders and direct bankings by members as at 31st December 2018 (2017 figure was Kshs 4,268,896). The standing orders and bankings could not be analyzed into their various components- share capital, Sacco Deposits, loan and interest repayment – because of lack of vital information including names of the members who had placed such standing orders or had carried out the bankings and what the payments were in respect of.

OpinionExcept for the above observations, in our opinion, the financial statements give a true and fair view of the state of the Society’s financial affairs as at 31st December 2018 and of its operating results and cash flows for the year then ended in accordance with the International Financial Reporting Standards and the requirements of the Kenyan Sacco Societies Act.

Report on other Legal Requirements As required by the Kenya Sacco Societies Act, we report to you based on our audit that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion, proper books of account have been kept by the Society, so far as it appears from our examination of those books.

VICTOR MUTISYA & CO.

Certified Public Accountants (K)Date: 20th February 2019


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STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST DECEMBER 2018

2018 2017

NOTES KSHS KSHS

REVENUE

Interest on Loan to Members 131,088,784 117,976,772

Other Interest Income - -

Total Interest 131,088,784 117,976,772

Interest Expenses (3) (117,794,279) (95,362,033)

Net Interest Income 13,294,505 22,614,739

Other Operating Income (4) 16,779,588 15,054,739

Administration Expenses (5) (22,701,116) (26,425,505)

Other Operating Expenses (6) (12,613,638) (8,923,114)

Other Comprehensive Income for the year, net of Tax (7) 21,134,303 8,681,141

Net Operating Surplus/(Deficit) Before Income Tax (8) 15,893,642 11,002,000

Income Tax Expense (9) - -

Net Surplus/(Deficit) for the Year 15,893,642 11,002,000


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25

STATEMENT OF FINANCIAL POSITIONAS AT 31ST DECEMBER 2018

2018 2017

NOTES KSHS KSHS

ASSETS

Cash and Cash Equivalent (10) 260,918,242 204,079,226

Loans to Members (11) 1,353,855,006 1,069,097,178

LSK Housing Advances /Debts (12) 13,813,088 2,986,630

Sundry Debtors (13) 2,169,505 2,710,474

Fixed Assets (2) & (14) 30,208,864 35,319,492

Other Non-Current Assets (15) 2,137,626 2,137,626

Total Assets 1,663,102,331 1,316,330,626

LIABILITIES

Members Deposits (16) 1,427,809,438 1,124,280,103

Current Income Tax Payable (9) - -

Accrued Expenses (17) 118,687,667 95,669,465

Sundry Creditors (18) 15,952,599 9,854,866

Suspense Account: Unanalysed Bankings &Standing Orders (19) 5,690,460 4,268,896

Total Liabilities 1,568,140,164 1,234,073,330

EQUITY

Share Capital (20) 45,409,170 39,176,646

Reserves (21) 49,552,997 43,080,650

TOTAL EQUITY 94,962,167 82,257,296

TOTAL LIABILITIES AND EQUITY 1,663,102,331 1,316,330,626

The notes on pages 29 to 35 form an intergral part of these accounts

The financial statements set out on pages 24 to 35 were approved by the Management Committee on 20th February 2019 and were signed on its behalf by:

Justus Munyithya Lawrence Mugambi Kellen G. NjueChairman Treasurer Committee Member


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STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31ST DECEMBER 2018

2018 Share Capital Statutory Reserve

Revenue Reserve

Total Members Capital

KSHS KSHS KSHS KSHS

As at 01.01.2018 39,176,646 11,000,121 32,080,529 82,257,296

Shares Paid 6,232,524 - - 6,232,524

Unpaid Interests Written Back - - - -

Surplus/(Loss) for the Year - - 15,893,642 15,893,642

Provision for Tax - - - -

20% Transfer to Statutory Reserve - 3,178,728 (3,178,728) -

Provision for Dividends - - (6,811,376) (6,811,376)

Provision for Honorarium - - (2,609,918) (2,609,918)

As at 31.12.2018 45,409,170 14,178,849 35,374,148 94,962,168

2017 Share Capital Statutory Reserve

Revenue Reserve

Total Members Capital

KSHS KSHS KSHS KSHS

As at 01.01.2017 16,265,640 8,799,721 30,677,258 55,742,618

Shares Paid 22,911,006 - - 22,911,006

Unpaid Interests Written Back - - - -

Surplus/(Loss) for the Year - - 11,002,000 11,002,000

Provision for Tax - - - -

20% Transfer to Statutory Reserve - 2,200,400 (2,200,400) -

Provision for Dividends - - (5,246,703) (5,246,703)

Provision for Honorarium - - (2,151,626) (2,151,626)

As at 31.12.2017 39,176,646 11,000,121 32,080,529 82,257,296


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STATEMENT OF CASH FLOWFOR THE YEAR ENDED 31ST DECEMBER 2018

2018 2017

NOTES KSHS KSHS

Cash Flows from Operating Activities

Interest Receipts 131,088,784 117,976,772

Accrued Interest Paid (17) (95,241,983) (76,791,065)

Payments to Employees and Suppliers (135,419,263) (33,058,962)

Other Operating Income 16,779,588 15,054,739

(82,792,874) 23,181,484

(Increase)/ Decrease in Operating Assets

Net Loans to Members (284,757,828) (82,634,829)

Payment of Advances to LSK Housing (12) (10,826,458) (2,220,234)

Sundry Debtors 540,969 (780,676)

Increase/(Decrease) in Operating Liabilities

Deposits from Members 303,529,335 190,160,556

Accrued Expenses Paid (17) 95,549,415 (162,610)

Sundry Creditors (18) 6,097,733 (1,934,923)

Unanalyzed Bankings 1,421,564 (165,728)

Honorarium Paid 2,151,626 (1,912,040)

Net Cash from Operating Activities Before Income Taxes 30,913,482 123,531,000

Income Tax Paid - -

Net Cash from Operating Activities 30,913,482 123,531,000

Cash Flow from Investing Activities

Purchase of Fixed Assets (1,441,292) (1,194,496)

Purchase of Investments - (12,933)

Dividends Received 21,134,303 8,681,141

Net Cash From Investing Activities 19,693,011 7,473,712

Cash Flow from Financing Activities

Share Capital Contributions 6,232,524 22,911,006

Net Cash from Financing Activities 6,232,524 22,911,006

Net (Decrease)/Increase in Cash & Cash Equivalent 56,839,017 153,915,718

Cash and Cash Equivalent at the Beginning of the Year 204,079,226 50,163,508

Cash and Cash Equivalent at the End of the Year 260,918,243 204,079,226


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NOTES TO THE FINANCIAL REPORTSFOR THE YEAR ENDED 31ST DECEMBER 2018

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.

The principal accounting policies adopted in the preparation of these financial statements are set out below:

a) Statement of compliance & basis of preparationThe financial statements are prepared in accordance and comply with International Financial Reporting Standards (IFRSs). These financial statements are presented in the functional currency, Kenya shillings (Kshs) and prepared under the historical cost convention as modified by revaluation of certain assets a s prescribed by IFRSs.

b) Revenue recognition Revenue as reflected in the accounts is recognized on cash basis.

c) Fixed Assets i) All fixed assets are stated at historical cost less

accumulated depreciation and impairment losses.

ii) Depreciation is calculated using the Reducing Balance method to write down the cost of each asset to its residual value over its estimated useful life. The annual depreciation rates in use are:

Furniture & Fittings - 12.5%

Computers and accessories - 30%

Software - 30%

Office Space - 2.5%

Partitions - 12.5%

iii) The assets’ residual values and useful lives are reviewed, and adjusted if appropriate at each reporting date. Gains or losses on disposal of property, plant and equipment are determined by reference to their carrying amount and are taken into account in determining operating profit. On disposal of a revalued asset, amount in the revaluation reserve relating to that asset is transferred to retained earnings.

iv) Depreciation on SoftwareDuring the year the Society fully customized the software acquired in 2015 and the Board resolved to

allocate its cost between the Society and LSK Housing Limited, with whom they were sharing the software, in the ratio 60: 40 respectively and start amortizing it in 2018.

d) Classification as debt or equity Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement.

e) Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Sacco are recorded at the proceeds received, net of direct issue costs. The capital comprises primarily of minimum share capital prescribed under the By-laws of the Sacco.

f ) Tax Current tax is provided on the basis of the results for the year, as shown in the financial statements, adjusted in accordance with tax legislation.

Deferred income tax is provided, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability. Currently enacted tax rates are used to determine deferred income tax.

Deferred income tax assets are recognized only to the extent that it is probable that the future taxable profits will be available against which temporary differences can be utilized.

g) Statutory reserves Co-op Act Transfers are made to the statutory reserve fund at a rate of 20% of net operating surplus after tax in compliance with the provision of section 47 (1& 2) of the Co-operative Societies Act, Cap 490.

h) Trade and Other PayablesTrade and other payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method.


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29

i) ReceivablesReceivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate. A provision for impairment is recognized in the profit or loss account in the year when the recovery of the amount due as per the original terms is doubtful. The provision is based on the difference between the carrying amount and the present value of the expected cash flows, discounted at the effective interest rate. Receivables not collectible are written off against the related provision. Subsequent recoveries of amounts previously written off are credited to the profit or loss account in the year of recovery

j) Cash and cash equivalents Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments that are readily convertible to a known

amount of cash and are subject to an insignificant risk of changes in value net of bank overdrafts

k) Provisions for liabilities and other charges Provisions are recognized when the Sacco has a present obligation (legal or constructive) as a result of a past event, it is probable that the Sacco will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation.

l) InvestmentsInvestments are stated at cost less provision for any permanent diminution in value.

NOTE 2: FIXED ASSETS & DEPRECIATION SCHEDULE

Property (Office Space)

Office Partitions

Computers &

Accessories

Furniture & Fittings

Software Total

2018 KSHS KSHS KSHS KSHS KSHS

COST

As At 01.01.2018 25,933,752 1,452,800 5,712,426 2,529,095 7,781,418 43,409,491

Additions During the Year

- - 466,892 - 1,624,000 2,090,892

(Disposals) During the Year

- - - - - -

40% Software Cost Allocated to Housing

- - - - (3,762,167) (3,762,167)

As At 31.12.2018 25,933,752 1,452,800 6,179,318 2,529,095 5,643,251 41,738,216

DEPRECIATION

As at 01.01.2018 3,226,448 730,932 3,227,833 904,759 - 8,089,972

Charges for the Year 567,683 90,234 885,446 203,042 1,692,975 3,439,380

(Disposals) During the Year

- - - - - -

As at 31.12.2018 3,794,131 821,166 4,113,279 1,107,801 1,692,975 11,529,352

NET BOOK VALUE

As at 31/12/2018 22,139,621 631,634 2,066,039 1,421,294 3,950,276 30,208,864

As at 31/12/2017 22,707,304 721,868 2,484,566 1,624,336 7,781,418 35,319,492

During the year the Society fully customised the software acquired in 2015 and the Board resolved to allocate its cost between the Society and LSK Housing with whom they were sharing the software in the ration 60: 40 and to start amortizing it.


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NOTE 3: INTEREST EXPENSE

2018 2017

KSHS KSHS

Interest on Members Deposits

117,794,279 95,362,033

117,794,279 95,362,033

Interest on members deposits has been provided at 9.0% (2017 rate was 9.0%) per annum on members deposit balances each month .

NOTE 4: OTHER OPERATING INCOME

2018 2017

KSHS KSHS

Membership/Entrance Fees 926,000 865,000

Deposit Refund Processing Fees 99,700 99,000

Lumpsum Payment Charges 1,292,998 586,667

Loan Clearance Commission 3,434,744 2,722,753

Loan Offsetting Fees 2,656,883 4,398,974

Loan Application Processing Fees 5,022,826 3,467,069

Penalties on Dishonoured Cheques 54,750 16,200

Other Incomes 310,350 349,821

Loan Insurance Fees 2,215,716 1,524,396

Loan Rescheduling Fees 765,621 -

LSK Housing Hosting Charges - 1,024,859

16,779,588 15,054,739

NOTE 5: ADMINISTRATION EXPENSES

2018 2017

KSHS KSHS

Salaries and Wages 13,027,042 16,560,798

Other Staff Costs 2,252,033 2,754,335

Travelling & Subsistence 411,975 412,255

Electricity 355,438 323,322

Printing & Stationery 316,924 353,156

Consultancy Fees & Training 76,125 152,700

Office General Expenses 478,404 727,532

Telephone, postage and Email/Internet 1,064,782 793,149

Repairs and Maintenance 152,306 807,395

Rent & Rates/Service Charges 420,829 420,829

Subscriptions 10,000 35,000

Legal Fees 245,370 151,995

Minor Office Eqipment 193,392 181,000

Bad Debts Written Off 1,638,636 139,912

Strategic Plan - 419,300

Insurances 1,815,660 2,013,971

Recruitment Commission 44,000 -

Audit Fees & VAT 180,000 164,477

Audit Supervision Fees 18,200 14,379

22,701,116 26,425,505

NOTE 6: OTHER OPERATING EXPENSES

2018 2017

KSHS KSHS

Members & Committee Expenses

Committee Sitting Allowances 1,666,988 1,485,765

Committee Travel & Subsistence 708,158 393,294

Education and Seminars 1,046,383 422,250

A.G.M Expenses 639,225 790,473


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31

Advertising, Marketing and Promotion 2,052,068 2,568,512

Team Building 98,250 128,760

6,211,072 5,789,054

Finance Expenses

Bank Charges and Commissions 1,137,439 1,151,835

Software Expenses

Annual System Support 417,600 -

Annual Enhancement 828,000 -

Continuous Development 278,400 -

Data Back-up & Replication 301,748 -

1,825,748 -

Depreciation Expense

Charges for the Year 1,746,404 1,982,225

Armotisation Expense

Charges for the Year 1,692,975 -

TOTAL OTHER OPERATING EXPENSES 12,613,638 8,923,114

NOTE 7: OTHER COMPREHENSIVE INCOME, NET OF TAX

2018 2017

KSHS KSHS

Dividends Income

Ken-Gen Co. Ltd - -

Equity Bank Limited 19,000 19,000

East African Breweries Limited 2,090 2,090

Kenya Commercial Bank 43,098 32,325

Scan Group Limited 1,710 1,140

Housing Finance Company 1,745 2,494

Co-operative Bank of Kenya 921,846 -

Kenya Reinsurance 2,429 2,286

Co-operative Insurance Company 13,919 33,037

Nation Media Group 2,069 3,448

Stanbic Bank Uganda - -

Safaricom Limited - -

Access Kenya Limited - -

KUSCO Shares - 12,933

Total Dividends Income 1,007,906 108,753

Interest Income

Interest from Savings Account - -

Interest from CIC Money Markets 17,665,400 6,557,735

Interest from KUSCCO Fixed Deposit 2,460,997 2,014,653

Total Interest Income 20,126,397 8,572,388

TOTAL OTHER COMPREHENSIVE INCOME NET OF TAX 21,134,303 8,681,141

NOTE 8: NET OPERATING SURPLUS BEFORE INCOME TAX

The following items have been charged in arriving at net operating surplus before income tax:

2018 2017

KSHS KSHS

Depreciation/Amortizaton 3,439,379 1,982,225

Salaries & Wages 13,027,042 16,560,798

Other Staff Costs 2,252,033 2,754,335

Operating Lease Rentals Expense 420,829 420,829

19,139,283 21,718,187


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NOTE 11: LOANS TO MEMBERS

2018 2017

KSHS KSHS

Opening Balance 1,069,097,178 986,462,349

Issued During the Year 922,291,207 609,844,558

Repaid During the Year (637,533,379) (527,209,729)

Closing Balance 1,353,855,006 1,069,097,178

NOTE 12: LSK HOUSING ADVANCES/DEBTS

The SACCO operating expenses are refunded by LSK Housing Co-operative Society where applicable as per the MOU between LSK SACCO Ltd and LSK Housing Society Ltd.

2018 2017

KSHS KSHS

Balance Brought Forward 2,986,630 766,396

2018 Transactions:

LSK Sacco Funds Deposited in LSK Housing A/c - 1,618,375

LSK Sacco 2018 Hosting charges to LSK Housing 8,681,636 1,024,859

40% Share of Software Cost 3,762,167 -

Less: Net Payments in 2018 (1,561,345) -

13,869,088 3,409,630

Less: LSK Housing Funds Deposited in LSK Sacco A/c (56,000) (423,000)

Balance Carried Forward 13,813,088 2,986,630

NOTE 9: INCOME TAX

2018 2017

KSHS KSHS

Current Tax - -

Deferred Tax - -

Tax Expense /(Credit) - -

No tax has been provided. Most of the Income for the Society was from dealings with members while income from taxable sources was taxed at source. Tax liability arising from this second category of income is as follows, and details of these are in Note 7.

2018 2017

KSHS KSHS

Gross Taxable Income 20,782,824 7,714,982

Tax @ 50% of Gross Taxable Income x 30% 3,117,424 1,157,247

Less: Tax at Source (3,117,424) (1,157,247)

Tax Due - -

NOTE 10: CASH AND CASH EQUIVALENTS

2018 2017

KSHS KSHS

Current Account 6,341,231 5,075,450

Savings Account 13,266,038 7,870,886

KUSCCO Central Finance (Savings) 419,909 1,294,297

Petty Cash 3,675 11,306

Housing Finance Co. 17,583 17,583

CIC Money Market Account 214,599,933 166,934,535

KUSCO Fixed Deposits 26,269,873 22,875,169

260,918,242 204,079,226


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33

NOTE 13: SUNDRY DEBTORS

2018 2017

KSHS KSHS

Co-operative Bank 19,000 19,000

Valere 20,000 20,000

Pre-paid Staff Medical Insurance 1,602,365 2,259,475

Interest Receivable from KUSCCO Fixed Deposit 473,140 411,999

Staff Imprest 55,000 -

2,169,505 2,710,474

NOTE 14: PROPERTY (OFFICE SPACE)

The Society purchased office space at Crawford Business Park (3rd Floor, Offfice No. 23), L.R. No. 209/1519, State House Road, Nairobi in 2012. Total cost of the property was Kshs 25,933,752. Detailed analysis of this asset is in Note 2.

NOTE 15: OTHER NON-CURRENT ASSETS

This represents investments in the following companies:

2018 2017

Quoted KSHS KSHS

900 Ordinary Shares Held in Access Kenya Limited 9,000 9,000

5119 Ordinary Shares Held in Kenya Commercial Bank 234,874 234,874

2,000 Ordinary Shares Held in Scan Group Limited 53,108 53,108

2,579 Ordinary Shares Held in Kenya Re-Insurance Co. 36,137 36,137

5000 Ordinary Shares Held in KENGEN 132,366 132,366

26900 Ordinary Shares Held in Safaricom 170,280 170,280

1,100 Ordinary Shares Held in EAB LTD 144,600 144,600

1,100 Ordinary Shares Held in Nation Media Group 147,843 147,843

10,000 Ordianry Shares Held in Equity Bank Ltd 142,548 142,548

32,000 Ordinary Shares Held inStanbic Uganda Ltd. 189,441 189,441

3500 Ordinary Shares Held in Housing Finance Co.(K) 87,569 87,569

Unquoted

420,000 Ordinary Shares Held in Co-op Bank (K) Ltd. 420,000 420,000

13,800 Ordinary Shares Held in CIC Insurance Co. Ltd 312,800 312,800

550 KUSCCO Shares 57,060 57,060

2,137,626 2,137,626

NOTE 16: MEMBERS DEPOSITS

2018 2017

KSHS KSHS

Savings Deposits at Start of Year 1,124,280,103 934,119,547

Deposits During the Year 301,950,785 199,494,248

Transfer from Interest on Deposits Payable 60,395,111 72,850,645

Withdrawals/Refunds/Offsets During the Year (58,816,561) (82,184,337)

1,427,809,438 1,124,280,103


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NOTE 17: ACCRUED EXPENSES

2018 2017

KSHS KSHS

Interest on Members Deposits 117,914,329 95,362,033

Audit Fees & VAT 108,000 164,477

Supervision & Recoverable Fees 18,200 14,379

Committee Sitting Allowances 401,445 128,576

Other Accrued Expenses 121,740 -

Safaricom 123,953 -

118,687,667 95,669,465

NOTE 18: SUNDRY CREDITORS

2018 2017

KSHS KSHS

Savo Enterprise Limited - 135,605

Provision for Honorarium 2,609,918 2,151,626

Contigent Liability 34,800 34,800

Holiday Savings Account 157,054 100,000

Junior Savings Account 1,359,337 720,300

Coretec Systems 1,300,000 1,300,000

Asterisk - 69,600

Co-operative Consultancy 65,000 65,000

Sundry Creditor - 31,232

Provision for Dividends 6,811,376 5,246,703

Dynamics NAV System 1,682,000 -

Benevolent Fund Contributions 1,563,214 -

Other Sundry Creditors 369,900 -

15,952,599 9,854,866

NOTE 19: SUSPENSE ACCOUNT: UNANALYZED BANKINGS & STANDING ORDERS - KSHS 5,690,460

This represents bankings and standing orders into the Society’s bank accounts which could not be analyzed into their various components- share capital, deposits and loan and interest repayemnts - because of lack of vital information including names of the members who made the payments and what the payemnts were in respect of. The payments could therefore not be analysed (2017 figure was Kshs 4,268,896). The Board is trying all it can to educate members on importance of presenting banking slips to the office for receipting.

NOTE 20: SHARE CAPITAL

2018 2017

KSHS KSHS

Balance Brought Forward 39,176,646 16,265,640

Contributions for the Year 6,232,524 22,911,006


NOTE 21: RESERVES

Transfers are made to the Statutory Reserve Fund at a rate of 20% of net operating surplus after tax in compliance with the provisions of Section 47 (1 & 2) of the Co-operative Societies Act (Cap 490).

The following is the composition of the Reserves account and detailed analysis of these is in the Statement of Changes in Equity on page 8:

2018 2017

KSHS KSHS

a) Statutory Reserve


Transfer for the Year 3,178,728 2,200,400


b) Revenue Reserve


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35


Increase for the Year 3,293,619 1,403,271


Total Reserves 49,552,997 43,080,650

Detailed analysis of these is on page 8 to the accounts.

NOTE 22: CURRENCY RISK

The Society operates wholly within Kenya and its assets and liabilities are reported in the local currency. There was,therefore no currency risk as at 31st December, 2018

NOTE 23: EMPLOYEES

The number of employees of the Society during the year was twenty three (23)

NOTE 24: CURRENCY

The financial statements are presented in Kenya Shillings (Kshs.)


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,000

.00

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ME

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M M

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4,18

9,73

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8,44

6,66

1 15

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013.

63

TO

TAL

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ME

141

,712

,652

1

84,9

60,5

69

169

,002

,676

(1

5,95

7,89

3) 2

39,9

98,7

39

217

,408

,810

.90

268

,723

,513

.63

B.EX

PEN

DIT

URE

1A

GM

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ENSE

S 7

90,4

73

1,0

00,0

00

639

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3

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0 1

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RS E

DU

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ION

422

,250

2

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1

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9

53,6

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1,5

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0 1

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3AU

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77

300

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1

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00

120

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5

00,0

00

300

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50,

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S 1

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00

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00

1,0

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0 1

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.00

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NK

CH

ARG

ES 1

,151

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1

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1

,137

,439

(1

37,4

39)

1,0

00,0

00

1,5

00,0

00.0

0 1

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,000

.00

7CO

MM

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SIT

TIN

G A

LLO

WA

NC

ES 1

,485

,765

2

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1

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,988

3

33,0

12

2,0

00,0

00

3,1

00,0

00.0

0 3

,100

,000

.00

8CO

MM

ITEE

TRA

VEL

& SU

BSIS

TAN

CE

393

,294

1

,000

,000

7

08,1

58

291

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1

,000

,000

1

,000

,000

.00

1,0

00,0

00.0

0 9

CORP

ORA

TE S

OC

IAL

RESP

ON

SIBI

LTY

125

,000

2

00,0

00

- 2

00,0

00

300

,000

1

00,0

00.0

0 1

00,0

00.0

0 10

EMA

IL &

INTE

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S 3

49,8

59

500

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5

52,0

70

(52,

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500

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5

00,0

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00,0

00.0

0 11

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REST

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DEP

OSI

TS 9

5,36

2,03

3 1

22,9

25,8

86

117

,794

,279

5

,131

,607

1

59,8

03,6

51

140

,000

,000

.00

177

,629

,086

.35

12EL

ECTR

ICIT

Y 3

23,3

22

400

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3

55,4

38

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562

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0 4

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0 13

LOA

N IN

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E 1

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2

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1

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2

39,2

80

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00

3,0

00,0

00.0

0 3

,000

,000

.00

14BA

D D

EBTS

WRI

TTEN

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139

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3

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1

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1

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3,0

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0 15

GEN

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SURA

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300

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5

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60

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00.0

0 3

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00.0

0 16

LEG

AL

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& R

ECO

VERY

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S 1

51,9

95

1,5

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00

245

,370

1

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,630

2

,000

,000

2

,000

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.00

2,0

00,0

00.0

0 17

REPA

IRS

AN

D M

AIN

TAN

CE

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807

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5

00,0

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152

,306

3

47,6

94

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1,0

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0 1

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NT

& RA

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SERV

ICE

CH

ARG

E 4

20,8

29

500

,000

4

20,8

28

79,

172

500

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5

00,0

00.0

0 5

00,0

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0 19

PRIN

TIN

G A

ND

STA

TIO

NER

Y 3

53,1

56

500

,000

3

16,9

24

183

,076

5

00,0

00

500

,000

.00

500

,000

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20A

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RTIS

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,MA

RKET

ING

& P

UBL

ICIT

Y 2

,468

,512

2

,000

,000

2

,194

,318

(1

94,3

18)

2,5

00,0

00

2,5

00,0

00.0

0 2

,500

,000

.00

21ST

AFF

REC

RUIT

MEN

T -

250

,000

-

250

,000

2

50,0

00

250

,000

.00

250

,000

.00

22ST

AFF

SA

LARI

ES 1

6,56

0,79

8 2

0,00

0,00

0 1

3,02

7,04

2 6

,972

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2

5,00

0,00

0 2

3,00

0,00

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2

5,00

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0.00

23

OTH

ER S

TAFF

CO

STS

512

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1

,000

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1

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,933

(9

60,9

33)

1,5

00,0

00

1,5

00,0

00.0

0 1

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,000

.00

24TE

ND

ERIN

G &

PRO

CU

RMEN

T -

200

,000

-

200

,000

2

00,0

00

200

,000

.00

200

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.00

25CO

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LTA

NC

Y 2

81,4

60

500

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7

6,12

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23,8

75

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500

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500

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26TR

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00.0

0 27

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FF T

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12,2

55

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4

11,9

75

88,

025

1,0

00,0

00

500

,000

.00

500

,000

.00

LSK Sacco Annual Reports and Financial Statements for the year ended 31st Dec 2018 37

28TE

LEPH

ON

E A

ND

PO

STA

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594

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4

00,0

00

512

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600

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600

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29G

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S 7

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700

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AN

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00)

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828

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NO

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) 4

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2

50,0

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0 2

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0 37

AM

ORT

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ION

- 2

,000

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1

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0 2

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38D

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2

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1

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0 2

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419

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2

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00

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0 41

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0 43

CON

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T LI

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128

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240

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SURP

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222,

526

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453,

683

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643

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www.lsksacco.co.ke

LSK SACCO BY-LAWSAMENDMENTS SCHEDULE

By law number

Current reading Proposed reading Justification

2013 AMMENDMENTS

1. [currently 79]

Not provided for Provided that the Management Board in its discretion by itself and or through any of her agents or servants may lawfully publish in any media or share with any person or institution the indebtedness of any member, with a view to enhance the recovery of that debt or generally improve debts recovery levels, strategies and or measures.

2014 AMMENDMENTS

1. 2 The registered office of the society shall be at Hughes building 4th Floor – Kenyatta Avenue and its postal address shall be P.O. Box 6740-0100 Nairobi. Notice of any change of address shall be given to the Commissioner for Co-operative Development and Marketing and all members of the society.

The registered office of the society shall be at Crawford Business Park, Suite 23 – State House Road P.O. Box 6740-0100 Nairobi. Notice of any change of address shall be given to the Commissioner for Co-operative Development and Marketing and all members of the society.

2017 AGM AMMENDMENTS

1. 3 Not provided for INTERPRETATIONS ADDITION

Where the provisions of the by-laws are set out in the masculine gender they apply equally to the feminine gender.

To include other definitions as per the Model By-laws

2 27 SHARES

Add b)

SHARES

Insert:

b) Every share certificate shall specify the denoting number of the shares in respect of which it is issued and the amount paid thereon.

To provide for share certificate


www.lsksacco.co.ke

39

3 42 Not provided for ELECTIONS

a) I n e ver y not ice o f the General Meeting called in accordance with these by-laws, where elections will be held, the Committee shall notify the members of the vacancies arising in both the Management Committee and the Supervisory Committee.

b) A member desiring to offer himself/ herself for election (except one seek ing re -election) shall pick and return a dully filled up Nomination Form to the secretariat offices at least seven (7) days before the date of the AGM

c) At the elections, members shall decide, by a simple major ity the method of voting.

d) No member shall be entitled to vote by proxy.

e) Irrespective of the number of shares held by him no member shall have more than one vote.

f ) Within fourteen (14) days after the elections, the Honorary Secretary shall forward the names and addresses of all person elected to the Commissioner.

g) A new committee elected at the General Meeting shall not assume office unless they have sat i s f ied the requirements of the Act, Rules and these by-laws

To provide for election procedure as per the Model By-laws.


www.lsksacco.co.ke

4 43 MANAGEMENT COMMITTEE

The Management Committee shall be elected by and from the Membership and shall consist of a minimum of five and a maximum of nine

To delete and substitute with the following:

a) The management committee shall be elected annually by and from the membership and shall consist of a minimum of five and a maximum of nine.

b) One third of the members or the number nearest thereto shall retire annually on a rotational basis.

To advise on specific number of Management Committee members as per the Ministry’s recommendations.

To provide for annual retirement of a third of the Management Committee.

5 44 (formerly 43)

ELIGIBILITY OF COMMITTEE MEMBERS

(b) (vi) Does not hold deposits of at least Kshs 500,000 for advocate members and Kshs 100,000 for non-advocate members contributed through monthly contribution.

delete in entirety and substitute with:

(b) (vi) Does not hold deposits of at least Kshs 1,000,000/- for advocate members and Kshs 375,000/- for non-advocate members contributed through monthly contribution.

To ensure that the Management Committee are well invested in the Sacco.

6 48 RECORDS OF MANAGEMENT COMMITTEE MEETING

Not provided for

delete the sub-title and substitute with:

MEETINGS AND RECORDS OF MANAGEMENT COMMITTEE MEETINGS

Insert the following text to the By-Law:

a) The Management Committee shall meet at least once every month with the exception of the month of December. The decisions of the MC shall be a by a simple majority.

To provide for the meetings and the mode of decision-making

7 48 SUB-COMMITTEES To add the following sub-section (b) after the By-Law;

b) The Sub-committees shall be reconstituted within seven (7) days after the Annual General Meeting.

To adopt the best practice and incorporate new members to the committees.

2017 SGM AMMENDMENTS

1 71(a)

LOANS TO MEMBERS

All loans shall be approved by the Management Committee and shall be restricted to members.

a) All loans shall be approved by the Management Committee and sha l l be rest r ic ted to members save for the emergency and flexi-cheti which shall be approved by the General Manager and the Loans manager which approval shall be ratified by the Credit Committee.

To fasten emergenc y loans processing by permitting approval by the secrea


www.lsksacco.co.ke

41

2 71(b)(iii) & (iv)

Not provided for iii) The rate of interest on education loan shall be 1% per month, or any other rate agreed upon by the General meeting while at the same time taking into account the prevailing interest in the market.

iv) The rate of interest on Flexi-Cheti loan shall be 1% per month, or any other rate agreed upon by the General meeting while at the same time taking into account the prevailing interest in the market.

To include the education loan which had been omitted in our previous by-laws and to provide for our new product (flexi-cheti).

3 71(h)(i) A loan may not be granted if: -

i) The conditions of Membership or Savings are not met

i) The conditions of Membership or Savings are not met save for members applying for the Flexi-Cheti loan.

To establish and/or provide for an exclusion clause for the new flexi-cheti product with regard to savings requirement(s)

4 71(h)(ii) i) A member has not completed a t l e a s t s i x m o n t h s i n membership

A member has not completed at least six months in membership save for members applying for the Flexi-Cheti loan

To establish and/or provide for an exclusion clause for the new flexi-cheti product with regard to membership requirement(s)

5 15 MEMBERSHIP OBLIGATIONS

Insert (i) & (j)

a) Pay a non-recurrent fee for registration, which shall also cater for the benevolent fund registration.

b) Contr ibute towards the benevolent fund monthly

To establish and/or provide for the benevolent fund and the obligation to contribute thereto.

2018 AGM AMENDMENTS

1 8 Membership eligibility

Is a member of the immediate family of the primary member

(d) Is a selected member of the public approved by the Management Committee

To expand the common bond to admit other members in line with the Strategic Plan 2017-2022.

2 10 Admission into membership

An applicant shall be admitted into membership on being accepted by a majority vote of the Management Committee but shall not qualify for the rights and privileges of membership until he/she has paid an entrance fee of Ksh.1, 000 and paid in full for at least Five hundred (500) shares of Ksh. 20/= each or such other

An applicant shall be admitted into membership on being accepted by a majority vote of the Management Committee but shall not qualify for the rights and privileges of membership until he/she has paid an entrance fee of Ksh.1, 000 and paid in full for at least One Thousand Five hundred (1,500) shares of Ksh. 20/= each or such other

In line with the Strategic Plan 2017-2022, to grow our core capital to 10% of the total assets. Currently, our core capital is at 6.7 %

The transfer will be staggered up to 2021.


www.lsksacco.co.ke

minimum shares as shall be fixed by the General Meeting from time to time. Upon admission to membership, the Secretary shall cause the name and relevant particular of qualified applicant to be entered in the register of members.

minimum shares as shall be fixed by the General Meeting from time to time. Upon admission to membership, the Secretary shall cause the name and relevant particular of qualified applicant to be entered in the register of members.

The share capital will be earning dividends. The proposed rate on dividends to share capital in 2018 is 15%

3 18 Notice of voluntary withdrawal

A member may at time withdraw from the Society by giving 60 days written notice to the Society during which time the Society will settle the members’ accounts and refund the members shares, deposits and any other amounts due to him/her

A member may at time withdraw from the Society by giving 60 days written notice to the Society during which time the Society will settle the members’ accounts and refund the members deposits and any other amounts due to him/her excluding share capital.

To avoid reduction on the paid up share capital.

The Management Committee will develop a Policy to enable transfer of shares instead of refund.

4 21 P a y m e n t r e s u l t i n g f r o m withdrawal terminations or expulsion from membership

a) A member who withdraws or is suspended shall be repaid the following amounts after deduction of any debts owed by him/her to the Sacco Society as borrower, endorser, and guarantor or otherwise.

i) T h e n o m i n a l o r b o o k value of shares whichever is less, provided that the Management Committee may require a maximum of 60 days written notice of intention to withdraw shares.

Delete (b)(i) To avoid reduction on the paid up share capital.

The Management Committee will develop a Policy to enable transfer of shares instead of refund.

5 27 (a) Shares

The nominal value of each share shall be Ksh.20 and every member shall hold at least five hundred (500) shares in the Society, of each Ksh. 20/= or such other minimum as shall be fixed by the Annual General Meeting from time to time.

The nominal value of each share shall be Ksh.20 and every member shall hold at least One Thousand five hundred (1,500) shares in the Society, of each Ksh. 20/= or such other minimum as shall be fixed by the Annual General Meeting from time to time.

1. In line with the Strategic Plan 2017-2022, to grow our core capital to 10% of the total assets. Currently, our core capital is at 6.7 %

The transfer will be staggered up to 2021.

The share capital will be earning dividends. The proposed rate on dividends to share capital in 2017 is 15%.


www.lsksacco.co.ke

43

6 29 (b) Transfer of shares

With approval of the Management Committee a member may at any time transfer his/her shares to another member but not to any other person. Such transfers must be in writing and at nominal value.

All transfers of share must be registered with the secretary, and no transfer shall be valid unless so registered. A transfer fee of Ksh. 200 shall be payable.

With approval of the Management Committee a member may at any time transfer his/her shares to another member but not to any other person. Such transfers must be in writing and at nominal value.

All transfers of shares must be registered with the Secretary, and no transfer shall be valid unless so registered. A transfer fee of shall be charged as set by the Management Committee from time to time.

The Management Committee will develop a Policy on share transfer to ease the process of transferring.

7 34 (b) (ii) Disposal of surplus

Paying an interest to members on the register of members at the close of financial year in proportion to the interest paid by them during the financial year.

delete This is because interest on deposits i s a l ready expensed before calculating the surplus.

8 39 Required majority

Amendments of these By-laws shall be approved by at least a quarter of the total number of members present at the meeting.

Move to Bylaw 79 (c) and amend as below:

Amendments of these By-laws shall be approved by at least a simple majority of members present at the meeting.

For ease of reference and better flow of the document

To increase the threshold for amendment in line with common practice.

9 70 Loans to Members

The rate of interest on all loans shall be 1% per month or any other rate agreed by the General Meeting while at the same time taking into account the prevailing interest rate in the market.

The rate of interest on all loans shall be 1% per month or any other rate agreed by the General Meeting while at the same time taking into account the prevailing interest rate in the market save for rescheduled loans whose interest will be set by the Management Committee.

To take care of members who are in default and would like to reschedule their loans on different terms.

2019 AGM AMENDMENTS

44

(formerly 43)

ELIGIBILITY OF COMMITTEE MEMBERS


delete in entirety and substitute with:


To ensure that the Management and Supervisory Committee are well invested in the Sacco.


www.lsksacco.co.ke

Tel: 020 5146300Mobile: 0707-762 516/ 0739 747 891Email: [email protected]

Crawford Business Park,3rd Floor, Office Suite 23,

State Hse Rd, Nairobi

For sales and reservations, call : 0707 762 516 / 0739 747 891 For viewing, call : 0773 0523 46

LSK HOUSING KIBOS GREEN PROJECT

Price Categories Paid in 6 monthlyinstallments

Paid in 12 monthlyinstallments

LSK Housing Members Kshs 650,000 Kshs 700,000

LSK & LSK Sacco Members Kshs 700,000 Kshs 750,000

General Public Kshs 750,000 Kshs 800,000

Booking fee: Kshs 100,000

PROPERTY FEATURES1. 132 residential and 12 commercial plots

2. Ideal for quiet residential settlement

3. Water and electricity nearby

4. 10 Kms from Kisumu CBD

5. 1 Km from Kisumu-Muhoroni road and neighbouring Great Lakes University

6. Scenic view of Kajulu hills

Plots Status:RESIDENTIAL

15 plots remainingCOMMERCIAL

Sold out

AFFORDABLE50 X 100PLOTS IN

KISUMU CITY

Prices:

Notes


www.lsksacco.co.ke

45

Tel: 020 5146300Mobile: 0707-762 516/ 0739 747 891Email: [email protected]

Crawford Business Park,3rd Floor, Office Suite 23,

State Hse Rd, Nairobi

For sales and reservations, call : 0707 762 516 / 0739 747 891 For viewing, call : 0773 0523 46

LSK HOUSING KIBOS GREEN PROJECT

Price Categories Paid in 6 monthlyinstallments

Paid in 12 monthlyinstallments

LSK Housing Members Kshs 650,000 Kshs 700,000

LSK & LSK Sacco Members Kshs 700,000 Kshs 750,000

General Public Kshs 750,000 Kshs 800,000

Booking fee: Kshs 100,000

PROPERTY FEATURES1. 132 residential and 12 commercial plots

2. Ideal for quiet residential settlement

3. Water and electricity nearby

4. 10 Kms from Kisumu CBD

5. 1 Km from Kisumu-Muhoroni road and neighbouring Great Lakes University

6. Scenic view of Kajulu hills

Plots Status:RESIDENTIAL

15 plots remainingCOMMERCIAL

Sold out

AFFORDABLE50 X 100PLOTS IN

KISUMU CITY

Prices:

Crawford Business Park,3rd Flr, Office Suite 23,State House Rd, Opp. State House Girls,

P.O. Box 6740 – 00100, Nairobi.Tel: 020 – 261 2013/ 020 – 221 4992,

Mobile: 0728 788 [email protected] | www.lsksacco.co.ke

VISION To be an exemplary Sacco

MISSIONTo provide innovative financial products and services at affordable and competitive rates

CORE VALUES (ATICE)Accountability

TeamworkIntegrity

InnovationCommitment

Excellence

Documents

Annual Reports - LSK Sacco › LSKSACCO › LSKS-2019-AGMBooklet.pdf4 LSK Sacco Annual Reports and Financial Statements for the year ended 31st Dec 2018 NOTICE FOR THE AGM 2019 TO