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.
(Photo: Credit union visit to Arizona Federal. Back row: Arturo Dorado, Raúl Martinez, Laura Lowe Edgar, Front Row: Ruben Toledo, Susana León, Tricia Drexel)
