KMA SACCO strategy: New thinking to actively engineer

growth of the medical ecosystem.Dr Wahome Ngare

Chairman – KMA SACCOMember education day: 27th September 2014

By necessity is an introvert – works independently. Top cream in school BUT most of us are financially illiterate! Highly placed in society. Deals with life – very big responsibility, must remain ethical. We have a potential for high earning – family used to good life

style. We invests many years in education – wealth comes later in

life. We are employers – clinic, home, farm etc. We are technician – can only earn by personally getting

engaged in work! Disability is worse than death! We need to invest in independent income generating activities

to ensure financial safety for self and family in case of disability or death.

We generally don't have time to adequately supervise investments and can ends up loosing significate sums of money.

The Doctor

We want to borrow more than we have saved. We want to borrow at the lowest possible rate We want to repay over the longest period

possible. Ironically: We save the minimum - only what we can

borrow x 3 We want the loans released quickly. We want high dividends at the year end. THESE EXPECTATIONS ARE INCOMPATIBLE!

Liquidity: Greatest challenge of the SACCO

The saver is KING: Borrower is the customer!

Company Income

ExpensesProfit or loss

Individual not focused on investing:IncomeExpensesSavings or borrowing

Individual focused on investing – living within own means:

IncomeSavings (ideal would be % of income)Expenses

Profit and loss: Saving and borrowing

Controlled by the same person

Controlled by the different people

House worth 10 million in Nairobi would earn about 20 – 30 thousand per month.

Total of about 240,000 or 360,000 per year. 10 million invested in the SACCO at 8% per

annum would earn 800,000 per year or 66,000 per month!

You can borrow against it or convert it into a fixed asset like a house - as need arises.

SAVING, not borrowing, is a PREREQUISITE to WEALTH CREATION.

Saving as an asset

To proactively mobilize savings and provide innovative products, services

and solutions to encourage and facilitate investments in

the healthcare sector while utilizing available resources efficiently

and effectively for the ultimate benefit of the community

and healthcare professional.

Our Mission

To be the leaders in provision of financial products, services and solutions

to the health care professional and health care sector.

Our new Vision

INVESTMENT OF CHOICE

INDEPENDENT OF SACCO

GENERIC SACCO MODEL

MEMBER SACCO

SAVINGS

PRINCIPAL AND INTEREST

LOAN

INTEREST ON DEPOSIT AND DIVIDENDS

INVESTMENT OF CHOICE INDEPENDENT

OF MEMBER

INVESTMENT OF CHOICE INDEPENDENT OF THE MEDICAL ECOSYSTEM

Propose KMA SACCO MODEL

OWNER AND INVESTOR

INVESTING AND

MANAGING AGENT

BORROWER AND

CUSTOMER

SAVINGS LOAN

PRINCIPAL AND INTEREST

INTEREST ON DEPOSIT AND DIVIDENDS

INVESTMENT TAILOR MADE BY THE SACCO TO EXPAND THE MEDICAL ECOSYSTEM.

THANKSQ & A.