Kenya and Pennsylvania Meet Again

Rick Myxter, Pennsylvania Credit Union Association Senior Planning Consultant, recently returned from his third trip to Kenya, where he’s been working with World Council of Credit Union (WOCCU) officials to educate SACCO (credit union) staff and volunteers and establish a regulatory system.

Myxter participated in the Strathmore-World Council of Credit Unions African Management Institute (SWAMI) at Strathmore University in Nairobi. The Institute provides three-tiered training for certified professionals and board members of the SACCO movement. The first class graduated in November, 2005.

The June class included 80 participants in the three tiers, representing seven African countries: Kenya, Ghana, Uganda, Malawi, Republic of South Africa, Botswana, and Swaziland.
Myxter says the majority of students are young professionals (25-40), who realize they will be the future SACCO leaders. This group readily accepts the necessity of regulation and the development of operational standards (PEARLS) to develop SACCOs into full-service financial institutions.

Myxter spent some time with the Tier 3 class and participated in discussion on the development of a budget and business plan. At the end of the week-long institute, a graduation ceremony was held. The highlight was an appearance by Patrick Khaemba, Permanent Secretary of the Ministry of Cooperative Development and Marketing, who congratulated the class and assured them that the SACCO Act would be passed. Seeking Regulatory LegislationDuring the week, Myxter and WOCCU officials met with Khaemba concerning SACCO regulation. It has taken three years to get legislation ready for Parliament, however, it’s unlikely to get passed this year because it is not considered a priority. Next year will pose even more hurdles for passage as it is an election year for Parliament.
Passage of the Act is critical as SACCOs are beginning to be considered a threat to banks. Because of the growth and success of SACCOs, banks are likely to oppose the legislation to give more financial powers to them.

“SACCOs are the mainstay of the vast majority of people in Africa,” says Myxter. “Banks don’t recognize 80 percent of the people.” Making Positive ChangesMyxter and WOCCU staff also met with the United States Agency for International Development (USAID) to discuss funding for training; and IRNet Coop Kenya LTD, regarding the money transfer program. During discussions with the General Manager of IRNet Kenya, the group learned that more than 4 million Kenyans live in the United States, with the Philadelphia/New Jersey area considered one of the “hot spots” for Kenyan immigrants. Remittances in Kenya are estimated at $600 million ( U.S.) per year. Peak transaction periods are at the start of school (January, April, September) and Christmas (December).

Khaemba, who visited Pennsylvania in April to meet with Association staff and the Pennsylvania Department of Banking officials, values the partnership of WOCCU and the Pennsylvania Credit Union Association. Following graduation ceremonies, he invited Myxter and the staff from WOCCU and Strathmore University to dinner at a local restaurant. Khaemba and his wife expressed appreciation for the hospitality during their visit to Pennsylvania.

“This is a great experience and it is apparent that the Pennsylvania Credit Union Association’s WOCCU Partnership is reaping great rewards for SACCOs and the Kenyan population,” states Myxter. “While positive change has been slow, our endeavors will be the blueprint for credit union success throughout Africa.”

Content taken from Keystone Extra, a publication of the Pennsylvania Credit Union Association.

Connecticut and Trinidad to expand Credit Union to Credit Union Partnerships

Eight Connecticut Credit Union professionals and volunteers visited credit unions in Trinidad. Visitors included Kathy Chartier and Kelly Becker of Members Credit Union, Carol Bayreuther of Hartford Healthcare Credit Union, Larry Hertell and Pete Brochu of Charter Oak Federal Credit Union, Robyn Swanson and Joe Szumowski of Seasons Federal Credit Union and John Keet of Personal Care Federal Credit Union.

This trip was a next step in continuing the partnership between CCUA and the Cooperative Credit Union League of Trinidad and Tobago (CCULTT). The visit was planned to renew and expand upon current relationships, and to identify potential credit union - to - credit union partnerships, or twinning, as they call it in T&T.

Text and Picture provided by Kathy Chartier. Picture taken at San Fernando Community Credit Union.

Costa Rica and Alabama Sign Partnership Agreement

The Alabama Credit Union League (ACUL) recently hosted leaders from its partner credit union association, the Costa Rican Federation of Credit Unions (FEDEAC). The exchange built upon and reinforced the connections established during last November's League visit to Costa Rica and culminated with the signing of an international partnership agreement between the organizations. This partnership enables both sides to share best practices, strategies, and plans for member services and education.

During the visit, direct credit union to credit union partnerships were also started. Each participant made a presentation that included the history of the credit union, field of membership, services offered, and the unique attributes of each. The partnering credit unions met individually to explore issues and areas for the continued mutually beneficial exchange of ideas. This included such ideas as an employee exchange program, sharing marketing materials, financial literacy, youth programs; and tackling such large issues as shared branching and information technology. The partnered credit unions are Alabama Teacher’s Credit Union and Coopeande No.1; Legacy Credit Union and Coopalianza; Mutual Savings Credit Union and Coopemex; and Community Credit Union and Coopenae.

Written by Thomas Belekevich