Business Plan 2022 2026

KAMU-SACCO STRATEGIC BUSINESS PLAN FOR THE PERIOD 2022 -2026
KAMUSIIMECO-OPERATIVE SAVINGS & CREDIT SOCIETY

LIMITED
(KAMU-SACCO)
STRATEGIC BUSINESS PLAN: 2022–2026
PREPARED BY:BOARD & MANAGEMENT OF KAMUSIIME

SACCO
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TABLE OF CONTENTS
LIST OF ABBREVIATIONS..........................................................................5
FOREWARD...........................................................................................6
EXECUTIVE SUMMARY............................................................................6
CHAPTER 1: INTRODUCTION.....................................................................9
1.1 STRATEGIC DIRECTION............................................................................................................9
1.1.1 Vision.........................................................................................................................................9
1.1.2 Mission.......................................................................................................................................9
1.1.4 Core Values.............................................................................................................................10
1.2 CORE OBJECTIVES...................................................................................................................10
1.3 WHY STRATEGIC PLANNING FOR NYAKAYOJO PEOPLE’S SACCO..........................10
CHAPTER 2: SITUATIONAL ANALYSIS........................................................11
2.1 AN OVERVIEW OF THE STRATEGIC PLANNING PROCESS...........................................11
2.1.1 The Strategic Planning Process.......................................................................................11
2.2 PROFILE OF KAMUSIIME CO-OPERATIVE SAVING AND CREDIT SOCIETY
LIMITED.............................................................................................................................................12
2.2.1 Historic Background of KAMUSIIME-SACCO..................................................................12
2.2.2 Organizational Structure and Governance...........................................................................12
Figure 1: The SACCO governance structure.........................................................................................13
2.2.3 Membership............................................................................................................................14
2.2.4 SACCO Income.......................................................................................................................14
2.2.5 Expenses..................................................................................................................................15
2.2.6 Loans to Savings Ratio...........................................................................................................16
2.2.7 Compliance ratios.......................................................................Error! Bookmark not defined.
2.2.8 Types of Loans........................................................................................................................17
2.2.9 Challenges faced by KAMUSIIME SACCO Limited..........................................................17
CHAPTER 3: AN OVERVIEW OF THE CO-OPERATIVE SECTOR..........................18
3.1 HISTORICAL BACKGROUND..................................................................................................18
3.2 FORMALIZATION......................................................................................................................18
3.3 THE BIRTH OF SACCOS...........................................................................................................19
3.4 THE PLACE OF SACCOS IN THE FINANCIAL SECTOR IN UGANDA............................20
3.5 CO-OPERATIVE PRINCIPLES.................................................................................................21
1. Voluntary and Open Membership..........................................................................................21
2. Democratic Member Control..................................................................................................21
3. Economic Participation by Members.....................................................................................21
4. Autonomy and Independence.................................................................................................21
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5. Education, Training and Information....................................................................................21
6. Co-operation among Co-operatives........................................................................................21
7. Concern for Community in General.......................................................................................21
CHAPTER 4: ENVIRONMENTAL SCAN/SWOT ANALYSIS..................................22
4.1 Strengths.........................................................................................................................................22
4.2 Weaknesses/ Challenges................................................................................................................22
4.3 Opportunities.................................................................................................................................22
4.4 Threats............................................................................................................................................22
4.5 STAKEHOLDERS’ ANALYSIS..................................................................................................24
CHAPTER 5: STRATEGIC ACTION PLAN - KEY RESULT AREAS.........................25
5.1 HUMAN RESOURCES KEY RESULT AREA (KRA)..............................................................25
5.2 OPERATIONS KEY RESULT AREA........................................................................................25
5.3 FINANCE KEY RESULT AREA................................................................................................25
5.4 PRODUCTS & SERVICES KEY RESULT AREA....................................................................26
5.5 GOVERNANCE KEY RESULT AREA......................................................................................26
5.6 MEMBERSHIP KEY RESULT AREA.......................................................................................26
CHAPTER 6: STRATEGIC OBJECTIVES........................................................26
6.1 KEY RESULT AREA 1: HUMAN RESOURCES......................................................................27
6.2 KEY RESULT AREA 2: OPERATIONS & INFRASTRUCTURE..........................................27
6.3 KEY RESULT AREA 3: FINANCE/FINANCIAL PERFORMANCE.....................................27
6.4 KEY RESULT AREA 4: MARKETING AND PRODUCTS & SERVICES............................27
6.5 KEY RESULT AREA 5: GOVERNANCE..................................................................................28
6.6 KEY RESULT AREA 6: MEMBERSHIP...................................................................................28
CHAPTER 7: STRATEGY IMPLEMENTATION MATRIX....................................30
7.1 KEY RESULT AREA 1: HUMAN RESOURCES MATRIX....................................................30
7.1.1 Objective 1: Enhance SACCO organization structure for maximum efficiency................30
7.1.2 Objective 2: Enhance continuous staff capacity building....................................................30
7.1.3 Objective 3: To enhance staff productivity by 2023.............................................................31
7.2 KEY RESULT AREA 2: OPERATIONS & INFRASTRUCTURE MATRIX.........................32
7.2.1 Objective 1: Expand SACCO office space, premises and branding....................................32
7.2.2 Objective 2: To enhance ICT level in the SACCO for increased efficiency by 2024.........33
7.2.3 Objective 3: Enhance risk management in SACCO by 2023........................................34
7.2.4 Objective 4: To ensure continuous exemplary customer service..................................36
7.3 KEY RESULT AREA 3: FINANCIAL PERFORMANCE MATRIX.......................................36
7.3.1 Objective1: Grow institutional capital (statutory reserves +retained earnings) to 10% of
total assets by 2023..........................................................................................................................37
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7.3.2 Objective 2: Maintain expense at 50%-60% of total income...............................................37
7.3.3 Objective 3: To grow SACCO income by 20% each year....................................................38
7.3.4 Objective 4: Grow Savings and Loan portfolio at 10%.......................................................39
7.4 KEY RESULT AREA 4: PRODUCTS AND SERVICES MATRIX.........................................40
7.4.1 Objective 1: To introduce five new products by 2024..........................................................40
7.4.2 Objective 2: To enhance SACCO marketing strategy by 2023...........................................40
7.4.3 Objective 3: To enhance SACCO service delivery...............................................................41
7.5 KEY RESULT AREA 5: GOVERNANCE MATRIX................................................................42
7.5.1 Objective 1: Ensure full compliance with statutes and SACCO policies by 2023..............42
7.5.3 Objective 3: To enhance stakeholder relationships by 2026................................................43
7.6 KEY RESULT AREA 6: MEMBERSHIP MATRIX.................................................................44
7.6.1 Objective 1: Enhance continuous member education..........................................................44
7.6.2 Objective 2: Ensure 95% member retention rate.................................................................44
7.6.3 Objective 3: To maintain dormancy rate below 1%...........................................................45
7.7 IMPLEMENTATION OF THE STRATEGIC PLAN................................................................46
CHAPTER 8: INSTITUTIONAL STRUCTURE..................................................47
8.1 THE GENERAL MEETING........................................................................................................47
8.2 THE BOARD.................................................................................................................................47
8.3 SUPERVISORY COMMITTEE (SC)..........................................................................................47
8.4 THE OFFICE OF THE GENERAL MANAGER.......................................................................47
8.5 DEPARTMENTS...........................................................................................................................48
CHAPTER 9: MONITORING AND EVALUATION PLAN......................................51
9.1 MONITORING SYSTEM AND EVALUATION STRATEGIES.............................................51
9.1.1 Strategy Implementation Team.............................................................................................51
9.1.2 Supervisory Committee...................................................................................................52
9.1.3 Board of Directors...........................................................................................................52
9.1.4 Members of staff..............................................................................................................52
9.1.5 Key Performance Indicators...........................................................................................52
9.2. FINANCIAL PROJECTIONS.....................................................................................................53
9.3 STRATEGIC BUSINESS PLAN REVIEW.................................................................................57
9.4 CONCLUSION..............................................................................................................................57
9.5 STRATEGIC PLANNING TEAM...................................................Error! Bookmark not defined.
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LIST OF ABBREVIATIONS
(In Alphabetical Order)
AGM - Annual General Meeting
MB - Management Board
Cr. Comm - Credit Committee
CSR - Corporate Social Responsibility
EFT - Electronic Funds Transfer
FOSA - Front Office Service Activity
GDP - Gross Domestic Product
ICT - Information, Communication Technology
IT - Information Technology
KPOs - Key Performances Outputs
KRA’s - Key Result Areas
MOTIC - Ministry of Trade, Industry & Cooperatives
PEARLS - Protection, Earnings, Assets, Returns, Liquidity, Signs
PEST - Political, Economic, Social Technological
PESTEL - Political, Economic, Social Technological, Environmental,
Legal
SACCO - Savings & Credit Cooperative
SASA - SACCO Savings Account
SC - Supervisory Committee
SMART - Specific, Measurable, Attainable, Realistic, Timely
SWOT - Strengths, Weakness, Opportunities, Threats
TAT - Turnaround Time
UCUSCU - Uganda Cooperative Savings and Credit Union
MFSC - Microfinance Support Centre
UCA - Uganda Cooperative Alliance
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FOREWARD
KAMUSIIME SACCO operates in a business environment that is undergoing constant change.

In the course of our daily operations we have responsibility to our stakeholders; to hold ourselves
to the highest ethical standards and to comply with the applicable laws and regulations.
Moreover, the society’s stakeholders rely on us to run the business on their behalf and accurately
report financial performance and protect their assets by operating in a safe, effective and efficient
manner.
It is critical to have a strategic plan in place so that we are able to define our business through a
clear vision, mission and core values that provide a clear road map for the society’s activities.
Uganda’s Vision 2040 recognizes SACCOs as particularly important within the context of
demand for economic competitiveness, sustainable development and equity concerns.
Consequently development and sustainability of vibrant SACCOs cannot be overemphasized.
Good corporate governance practices must be nurtured and encouraged to evolve as a matter of
practice. In this regard, we expect all the board members and every staff of the SACCO to
commit themselves and ensure the full implementation of this strategic plan. The SACCO shall
also ensure that during the implementation period, constant monitoring and evaluation also take
place.
EXECUTIVE SUMMARY
KAMUSIIME Sacco is a registered Savings and Credit Cooperative society Ltd that was
officially registered on 28th May/2007 Reg.no RCS/8354 in line with provisions of section 6(2)
of Co-operative Act CAP 112, 1991 And Co-operative Society Regulations 1992.
The Head office is situated at Rutoto T/C - Rubirizi District. The SACCO owns its headquarter
premises. It has two outreaches i.e Katerera and katunguru
The main business of the KAMUSIIME Co-operative Savings and Credit Society Ltd is to
PROVIDE MEMBERS with the opportunity to ACCESS LOANS to develop and improve their
economic and social status (Saving and Credit).
The Board of KAMUSIIME SACCO decided to initiate the process of developing a five (5) year
strategic plan in order to put the SACCO in a better position to succeed in a fast changing
financial environment.
The needs of the members change on a daily basis and the services offered by the SACCO have
to conform. Secondly, the SACCO has grown from strength to strength, and this growth has
come with various challenges and created enormous opportunities that need to be tapped. For a
long period, the SACCO has operated without clear strategies to take advantage of these
opportunities and mitigate emerging challenges and threats. Thirdly, the board of KAMUSIIME
SACCO felt the need to develop a strategic plan so as to redefine its vision and mission. This is
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aimed at creating unity of purpose amongst the board, supervisory committeeand other
committees of the board and staff of KAMUSIIME SACCO in striving to achieve its objectives
by concentrating its resources in the core function of the SACCO.
The planning team strived to get the most out of the strategic planning process by appreciating
the fact that the real benefit of the strategic planning process is the process which is as important
as the plan document. There's doing your best at strategic thinking and implementation, and
learning from what you're doing to enhance what you are doing the next time around. It's like the
management process itself which is in itself a series of small moves that together keep the
organization doing things right as it heads in the right direction. That, in strategic planning,
things usually are not as bad as one’s fear or as good as you would like.
KAMUSIIME SACCO identified strategic key result areas in which to focus its financial, time
and human resources within the next five years. These areas concerning policies and procedures,
membership, investment and returns, information and communication technology, products and
services, corporate social responsibility, management, supervisory, finances, staff, loans and
loaning process, competition and internal control procedures.
In order to implement its strategic plan effectively and efficiently, KAMUSIIME SACCO has
identified several strategic steps that it intends to undertake as manifested in its 5-year plan of
action below. These include enhancing its liquidity, concentrating in its core functions, and
strengthening its human resource capacity.
The SACCO understands that, developing a strategic plan is a good thing, but achieving the set
goals comes with a consideration. Management believes that it has the capacity to implement this
strategic plan using its resources, but welcomes any external financial or technical support.
Management has identified various areas that it may require assistance. These include product
development, policy formulation and human resource and board capacity building.
The success of this strategic plan will depend on the commitment, teamwork and determination
of all the implementing officers, members and stakeholders. We therefore call upon each one of
us to support this strategic plan and move KAMUSIIME SACCO Limited to greater heights.
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AUTHORIZATION
We, the undersigned, approve the contents, and support the implementation of this strategic plan.
1. Name: _______________________________
Chairman Board of Directors
SIGN________________________________
DATE_______________________________
2. Name: _______________________________
Treasurer
SIGN ________________________________
DATE: _______________________________
3. Name: _______________________________
General Secretary
SIGN ________________________________
DATE: _______________________________
4. Name: _______________________________
Chairman Supervisory Committee
SIGN ________________________________
DATE: _______________________________
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CHAPTER 1: INTRODUCTION
1.1 STRATEGIC DIRECTION
KAMUSIIME-SACCO has identified priority areas over the next five (5) years, and this plan
aims at addressing these current and foreseen challenges and sets up a road map for the planned
growth of the SACCO by the year 2026guided by the following vision, mission, goal and core
values;
1.1.1 Vision
The Vision is: “A sustainable Cooperative Financial Institution where members’ satisfaction and
economic empowerment is a priority”
1.1.2 Mission
To provide affordable, reliable and sustainable financial services to its members to improve their
livelihood”.
1.1.3 Goal 2022 – 2026
The OVERALL GOALof the SACCOis to promote a SAVING CULTURE among the
members and PROVIDE MEMBERS with the opportunity to ACCESS LOANS to develop
and improve their economic and social status.
KAMUSIIME-SACCO growth strategy will be leveraged on members’ mobilization, products

and service offering as well as improved efficiency in service delivery.
To achieve the set overall goals, KAMUSIIME-SACCO will seek to develop and implement
strategies to facilitate the SACCO penetrate the competitive financial services sector. The
SACCO shall develop innovative financial products and services that will encourage uptake
among the members and be attractive to potential SACCO members.
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1.1.4 Core Values
In implementing the strategic plan, KAMUSIIME-SACCOwill be guided by the following core

values:
 Transparency
 Accountability
 Quality services
 Teamwork
 Honesty
 Customer focus and commitment.
 Integrity
 Professionalism
 Reliability
 God fearing
1.2 CORE OBJECTIVES
i. To provide members with a safe and convenient avenue where they can
accumulate their savings regularly.
ii. To enable all its members access loans for individual economic and social
development.
iii. To do all other things/actions that are permissible under the law, for the
promotion of members’ economic and social interests. These may include:
Education, wise use of credit, importance of savings and project ideas, insurance
programmes on savings and loans
1.3 WHY STRATEGIC PLANNING FOR KAMUSIIME’SSACCO

In view of the aforementioned, the SACCOresorted to formulating a participatory strategic plan
to focus on strategic activities that would improve the management of the SACCO as well as
ensure good returns to her members.
Amongst the benefits that the SACCO expects to accrue from strategic planning include, clear
objectives of the SACCO, communication of the set objectives to members and other
stakeholders, provision of a base from which progress can be measured, to build strong teams in
the management, board, supervisory committee, the committees of the board, staff and to
increase productivity through operational efficiency. The strategic plan will provide the strategic
direction or path the SACCO will take for the next five years.
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CHAPTER 2: SITUATIONAL ANALYSIS
2.1 AN OVERVIEW OF THE STRATEGIC PLANNING PROCESS
The strategic planning activity for KAMUSIIME-SACCO adopted a very participatory approach
of self-introduction, brief remarks and leveling of expectations, the facilitators: -
i. Took the participants through an overview of the co-operative sector,
ii. Took the participants through the historical background of KAMUSIIME.
iii. Introduced the concepts of strategic planning, management and their applications to
business practices in the SACCO sub-sector,
iv. Facilitated the analysis of the Strengths, Weaknesses, Opportunities and Threats (SWOT)
of the institution, and
v. Facilitated the development of the five-year strategic management plan (2022 to 2026) -
implementable action plan.
2.1.1 The Strategic Planning Process
Formulation of the KAMUSIIME-SACCO strategic plan took three distinct phases.

Phase 1: Development of the strategic plan direction. That is to guide the participatory
development of this strategic plan.
Phase 11:Determine your strategic position.This preparation phase sets the stage for all work
going forward. You need to know where you are to determine where you need to go and how
you will get there.
Phase111:Develop a strategic plan.This phase is about the time to create a strategic plan to
successfully reach your goals.
Purpose of the Strategic Plan:
This five (5) year strategic plan is designed to enable KAMUSIIME-SACCO effectively design
and implement products and services that are meaningful and responsive to the contextual
situation, ensure proper utilization of the available resources,establish a basis for measuring
progress and outcomes of the overall goals set. It will be used as a means or tool for resource
mobilization.
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2.2 PROFILE OF KAMUSIIME CO-OPERATIVE SAVING AND CREDIT SOCIETY

LIMITED
2.2.1 Historic Background of KAMUSIIME-SACCO

KAMUSIIME Sacco is a registered Savings and Credit Cooperative society Ltd that was
officially registered on 28th May/2007 Reg.no RCS/8354 in line with provisions of section 6(2)
of Co-operative Act CAP 112, 1991 And Co-operative Society Regulations 1992.
The Head office is situated Rubirizi District. The SACCO owns its headquarter premises. It has
two outreaches i.e Katerera and katunguru
The main business of the KAMUSIIME Co-operative Savings and Credit Society Ltd is to
PROVIDE MEMBERS with the opportunity to ACCESS LOANS to develop and improve their
economic and social status.
2.2.2 Organizational Structure and Governance

KAMUSIIME-SACCO is governed by the general assembly of its members which elects the
board of directors for a term of four of years and it’s responsible for policy guidance. Day to day
activities of KAMUSIIME-SACCO are coordinated by management headed by a GENERAL
MANAGER and supported by other staff members.
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Figure 1: The SACCO governance structure
Annual General Meeting,

AGM
Board
Vetting Committee
Supervisory Committee
General Manager
Accountant Credit supervisor
Branch Managers
Banking Marketing officers Credit Officer

Assistants/
Cashiers
Driver Office
Attendant/Support
Staff
As of today, KAMUSIIME is a registered SACCO, with an office and staff. And share capital
was at Ushs 600,282,941/= as at Aug 2022. The members’ savings were at Ushs
631,747,474.86/=, while the loan portfolio was at Ushs 1,058,737,686/=. The SACCO needed to
grow members saving by more-times to finance the loan portfolio and it was also the basis for
formulation of the 5 year strategic plan to address this challenge.
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Given that background the board and management of KAMUSIIME-SACCO reviewed the
tremendous achievements made over the previous years by the SACCO with the objective of
finding out: whether members are comfortable with the current situation and the journey so far
walked, to find out where KAMUSIIME is heading, what should be done for it to grow, prosper,
consolidating the achievements attained, and also to find out the purpose and role of a strategic
plan in the whole process.
2.2.3 Membership
The SACCO draws its membership from area of operations.

Table 1: A summary of KAMUSIIME-SACCO membership growth in the next 5 years
Aug
Item 2022 2022 2023 2024 2025 2026
Total Members 4,389 4,696 5,635 6,763 8,115 9,738
2.2.4SACCO Income
Table 2: A summary of KAMUSIIME-SACCO Income growth in the next (5) years
Year Dec-22
2023 2024 2025 2026
Interest from loans 256,458,611 307,750,333 369,300,400 443,160,480 531,792,576
Other interest income 122,459,820 160,914,752 200,961,209 251,443,711 315,227,226
Total Income 378,918,431 468,665,085 570,261,609 694,604,191 847,019,801
Growth rate 200,184,651 89,746,655 101,596,524 124,342,582 152,415,611
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Growth rate
1 2 3 4 5
2.2.5 Expenses
Table 3: A summary of KAMUSIIME-SACCO Expenses in the next (5) years
Year 2022 2023 2024 2025 2026

Interest expenses 39,508,706 46,620,273 55,011,922 64,914,068 76,598,600
Staff expenses 113,711,296 134,179,329 158,331,608 186,831,298 220,460,932
Governance expenses 28,342,800 51,526,588 60,801,374 71,745,621 84,659,833
Operation/Administrative expense 134,534,600 158,750,828 187,325,977 221,044,653 260,832,690
TOTAL 316,097,402 391,077,018 461,470,881 544,535,640 642,552,055
Growth rate 152,321,523 74,979,616 70,393,863 83,064,759 98,016,415
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2.2.6 Loans to Savings Ratio
The table and chart below shows the figures for loans and savings for the Next 5 years.
Year 2022 2023 2024 2025 2026

Loans to members 1,323,422,108 1,786,619,846 2,411,936,792 3,256,114,669 4,395,754,803
Total Deposits 821,271,717 1,053,929,324 1,353,639,431 1,739,968,833 2,238,244,569
Loan to deposit ratio 161% 170% 178% 187% 196%
Table 4: A summary of KAMUSIIME-SACCO Loans to Savings Ratio in the next five
years
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2.2.8 Types of Loans
TYPE OF LOAN REPAYME INTEREST RATE CONDITIO

NTPERIOD NS
1. AGRICULTURAL/BUSINESS LOAN • As per loan • As per loan policy • As per loan
This loan enables members to meet financial policy policy
needs for eligible agricultural/Business
activities
2. EMERGENCY LOAN • As per loan • As per loan policy As per loan
This loan enables members to meet financial policy policy
needs due to emergencies e.g. death of an
immediate family member, hospital bills,
court bonds amounts or guarantees, etc.
3. ASSET REQUIREMENT LOAN • As per loan As per loan policy As per loan
This loan is designed for Asset requirements policy policy
4. SCHOOL FEES LOAN As per loan As per loan policy As per loan
This loan is designed to assist members in policy policy
meeting school or college fee payments.
5. ADVANCE LOAN As per loan As per loan policy As per loan
This a loan given instantly at any time of the policy policy
month
5. INSTITUTIONAL LOANS As per loan As per loan policy As per loan
6. GROUP LOANS policy policy
2.2.9 Challenges faced by KAMUSIIME SACCO Limited
KAMUSIIME SACCO like any other savings & credit co-operative organization is faced with a
number of challenges, some of which are typical to the societies’ unique common bond. Majority
of members are drawn from the residents of …District coalescing around a common purpose and
vision of seeking financial solutions to its members. Challenges unique to the SACCO
include;limited products, poor savings culture, cut throat competition from other financial
institutions and poor loan repayment.
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CHAPTER 3: AN OVERVIEW OF THE CO-OPERATIVE SECTOR

3.1 HISTORICAL BACKGROUND
The genesis of co-operative movement in Uganda could be traced to present day Mubende
District where in 1913, four farmers decided to market their crops collectively and they became
to be known as “The Kinuakulya Growers’’. The cooperatives came about as a response to the
unfavorable terms of trade imposed on peasants by the Asian Traders through organized local
middlemen.In 1920, 5 groups of farmers in Mengo met in Kampala to form the “Buganda
Growers Association "whose supreme goal was: To control the domestic and export marketing of
members’ produce. Counterparts in other parts of the country shared this vision and acted
accordingly.
The colonial government of the time considered the emergency of cooperatives as premature and
subversive. Laws were enacted to make it an offence for any financial institution to lend money
to an African farmer. Because of these restrictions cooperatives operated underground until 1946
when the Co-operative Ordinance was enacted to legalize their operations. Peasant farmers saw
the 1946 Ordinance as a means of increasing government control in their business and many
groups refused to register under it.
3.2 FORMALIZATION
1952-1962-Cohen era:
Sir Andrew Cohen came to Uganda as Governor in 1952 and with his renowned liberalism to the
complaints of old formed cooperatives societies, he appointed a Commission of inquiry into the
progress of the cooperative movement. The commission headed by Mr. R.Dreschfield. The
committee submitted its report on June 11 1952 which stipulated that: It was not the function of
government to guide private enterprise as doing so, would arouse suspicion.
In light of the above pointer, government amended Cooperative Societies Ordinance of 1946.
This gave rise to the Cooperative Societies Act of 1952 which was more accommodative and
provided the framework for rapid economic development. It provided for both the elimination of
discriminatory price policies and offered private African access to coffee processing.
Thus, between 1952 and 1962 cooperative membership increased 8 fold and the tonnage of crops
increased 6 fold. The cooperative district unions acquired considerable importance. By 1962,
there were 14 ginneries and seven 7 coffee curing works in the hands of cooperative unions.
Many people were employed and, and cooperative unions became the most conspicuous
institutions in the districts.
The post-independence era

By the time of Uganda's political independence in 1962, participation in cooperative activities
had given a number of leaders’ national visibility. Their departure created leadership vacuum in
the cooperative movement. Other aspiring politicians began to see cooperatives as useful
launching pads into politics. Hence by involving people who had motives other than commitment
to serving cooperatives paved way for mismanagement, nepotism and corruption in co-
operatives. This caused discontent in various rural areas leading to setting up of various
commissions of inquiry. This resulted into repealing of Cooperative Societies Ordinance of 1952
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and it was replaced by the Cooperative Societies Act and Rules of 1963 that restored control of
societies by the Registrar
In 1970, the 1963 Act was repealed and a 1970 Cooperative Societies Act was put in place. This
Act finally, took away all the autonomy and gave the minister direct control over the affairs of
registered cooperative societies.
A ray of hope returned for cooperatives in 1986 when NRM took over the administration of this
country. Consequently, the NRC enacted coop societies statute in 1991 that was later
transformed into an Act Cap 112 in the laws of Uganda; this is still the legislation for
Cooperatives up to this day in Uganda.
3.3 THE BIRTH OF SACCOS
Government of Uganda through Deliberate Interventions by Ministry of Trade, Industry and

Cooperatives (MOTIC) has been promoting high value commodity based cooperatives using an
integrated approach model in partnership with Uganda Cooperative Alliance and other
development partners. The model (Integrated approach to local economic development) depicts 3
community based and owned form of cooperative institutions-Rural Producer Organisations
(RPOs), Area Cooperative Enterprises (ACEs) and Savings & Credit Cooperatives (SACCOs) to
be mutually dependent and self-reinforcing.
Each of the above 3 entities are supported to perform a specific function that will augment and
reinforce the function of the other for holistic development of local communities.
The forms of cooperatives that are being promoted include: RPOS-Rural Producer Organisations,
SACCOs – (Savings and Credit Cooperatives), ACEs-Area Cooperative Enterprises, and Energy
Cooperatives, Consumer Cooperatives, Transport Cooperatives, Service Cooperatives, Workers
Cooperatives and Handcrafts Cooperatives.
By 2012, statistics show that, across all regions, 46% of the SACCOs were located in the central
region, followed by western (24%), eastern (21%) and northern (9%). The Western dominated in
area of diary and livestock (54%), while the Eastern region dominated in the area of crop
farming and marketing (47%). The majority of the SACCOs are located in the Central region,
Diary and Livestock societies in the Western region and Crop Farming and Marketing societies
in the Eastern region. It can also be observed that there is also a fair distribution of active
cooperatives by type in the Eastern region.
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3.4 THE PLACE OF SACCOS IN THE FINANCIAL SECTOR IN UGANDA
Financial sector is relatively well developed with growth rate of 11.8% in 2012 and the sector
consists of a range of formal, semiformal and informal institutions and currently the sector is
improving due to the number of different regional and global financial institutions that have
come to Uganda. Uganda has currently 9 foreign based and 11 indigenous commercial banks, 25
insurance companies, 1 re-insurance company, 7 credit institutions, 5 other non-banking finance
institutions and 72 forex bureau.
The microfinance enterprises are the fastest growing and most resilient component of the
Ugandan financial sector given the big size of the unbanked sector. There is therefore an urgent
need for creation of a conducive environment for the growth of this important sector. Their rapid
growth indicates that they have filled a need, which has not been met by other financial
institutions.
The formal financial system largely concentrated in the urban areas and the rural areas are
excluded. The rural areas where poor people live are mainly served by semi-formal and informal
institutions which are weak and not regulated. The savings of the majority in rural areas are not
safeguarded. The interest rates charged to the poor people in the rural areas are quite exorbitant.
Before liberalization, SACCOs used to be organized as workplace or cash crop based savings
and credit associations whereby people with a common bond, e.g. by working together in the
same company or institution, save regularly, thus building enough deposits for lending within the
group. However, currently the concept of “common bond” has been expanded and now we have
community based, traders based and employees SACCOs. Still, majority of SACCOs are now
accepting members from outside their “common bond”. Some of the savings and credit societies
are actually larger (in asset terms) than some of the small commercial banks.
The MOTIC is in the process of reviewing the current law to come up with effective regulation
and supervision of SACCOs. Attempts are being made to increase membership education for
members, skills development training for committees and management staff.
The co-operative sector thrives on the following eight (8) co-operative values:Self-help, Self-
responsibility, Democracy, Equality, Solidarity, Honesty, Openness, Social responsibility and
Caring for others.
The Co-operative sector further operates under the following seven (7) guidelines/principles,
which are internationally recognized.
Page 20 of 58
3.5 CO-OPERATIVE PRINCIPLES
The SACCO further operates under the following seven (7) guidelines/principles, which are:
1. Voluntary and Open Membership

The primary purpose of the co-operatives is to serve their members and in a prudent and
effective manner. Within their capacity to admit members, cooperatives are open on a
voluntary basis, without political, religious, gender or social discrimination, to all who
can contribute to and benefit from their activities.
2. Democratic Member Control

Co-operatives are democratic and participatory organizations actively controlled by their
members. In primary co-operatives, members enjoy equal voting rights on a one member,
one vote basis. In cooperatives at other levels, administration is conducted and control is
exercised in a suitable democratic manner. Men and women responsible for the
administration of cooperatives, involve members, GENERAL MANAGERs and other
employees, according to their roles, in making decisions and setting policies.
3. Economic Participation by Members

Members contribute equitably to the capital of their co-operative and share in the results
of its operation. Usually, at least a portion of a co-operative’s capital is owned
collectively, intended to further the long-term purposes for which the co-operative exists.
4. Autonomy and Independence

Co-operatives are autonomous, mutual-self-help organizations controlled by their
members, managed by them and financed by them. If they enter into agreement with the
governments and other organizations, they do so freely, on mutually acceptable terms that
ensure their autonomy.
5. Education, Training and Information

Co-operatives foster reciprocal, ongoing education programmes for their members,
leaders and employees, so they can teach and learn from each other in understanding and
carrying out their respective roles. Cooperatives have a responsibility to inform the
general public, particularly young people and opinion leaders, about the nature and
benefits of co-operative movement.
6. Co-operation among Co-operatives

In order to best serve the interests of their members and their communities, co-operatives
actively cooperate in every practical way with other co-operatives locally, nationally, and
internationally, and
7. Concern for Community in General

Co-operatives are concerned about the communities in which they exist. While focusing
on members’ needs, they strive for the sustainable development of those communities
through policies that are respectful of the environment and acceptable to the membership.
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CHAPTER 4: ENVIRONMENTAL SCAN/SWOT ANALYSIS
The planning team determined that the SACCO has some definite strength and suffers from
certain weaknesses. With these internal factors established, the team felt that the operating
market does not only offer some opportunities that can be exploited but also poses some threats.
KAMUSIIME-SACCO’s achievements and challenges over the past years also denote the
internal and external environment within which it operates. These can be summarized in the
SWOT analysis in the Table below.
4.1 Strengths
Analysis of the strengths within the internal environment of the SACCO revealed many
important advantages and areas of strength that KAMUSIIME SACCO Ltd needs to build on and
safeguard in order to gain a competitive edge in its business endeavors.
4.2 Weaknesses/ Challenges
Analysis of the weaknesses within the internal environment of the SACCO revealed many
weaknesses and areas of likely bottlenecks that need to be addressed and strengthened if it has to
compete effectively and meet the expectation of its members.
4.3 Opportunities
Analysis of the external economic, political, social and technological environment within which
KAMUSIIME SACCO Ltd operates revealed many unexplored areas of great potential that need
to be addressed and harnessed if it has to sustain itself in a competitive environment.
4.4 Threats
An analysis of the external environment also revealed obstacles and areas of potential threat to
current and future initiatives of the SACCO in trying to serve its members well, as well as
sustaining its services.
The SWOT analysis of KAMUSIIME SACCO Ltd revealed valuable information and possible
options for management action as summarized and tabulated below:
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TABLE 6: SWOT ANALYSIS

STRENGTHS OPPORTUNITIES
1) Share capital (shares)/ capital base 1) Political stability (Good Governance
2) Good leadership (focused) government)
3) Diverse Membership 2) Existence of financial credit& other
professions/Technical knowledge of institutions from where the SACCO
members can borrow to finance its activities.
4) Assets 3) Government support schemes for
5) Membership (committed Members) SACCOs
6) Trust (time spent together) 4) Availability of members for
7) Committed, skilled personnel/staff growth/Potential membership
8) Availability of market for Loans 5) Strategic Location of office premises
9) 1Competent Board 6) A big pool of qualified personnel
10) Location/Accessible Offices of the 7) Untapped market/potential market
SACCO 8) Donations/grants/subsidies
9) Staff appraisal system &
WEAKNESSES 10) Performance Contracts
1) Low/poor savings by members 11) Exposure programmes/training
(Savings Culture) 12) Partnerships
2) Poor Loan Repayment/recovery 13) Upgrading of
3) Poor/Inadequate Communication in all communication/computerization of
sectors/sections processes
4) Inadequate Capital/Insufficient funds 14) Diversification of products
to finance services 15) Management support, advise services
5) Under Staffing/Inadequate staff and support by UCUSCU, MFSC,
6) Failure by the members to take loan UCA etc
repayment seriously(separating
SACCO from the members) THREATS
7) Intrigue in the SACCO(Rumor 1) Competition from other financial
mongering) institutions
8) Poor enforcement of Policy (e.g loan 2) Taxes
repayment) 3) Natural Calamity/or Disasters &
9) Poor marketing environmental changes
10) Weak capacity to administer loan 4) Political, Economic, Social &
recovery/high number of defaulters Technologicalchange
11) Lack of internal audit 5) Retrenchment
12) Resistance to change 6) Frequent change ofGovernment
13) Limited No. of products policies
14) Do not have long term, Medium term 7) Insecurity (theft & burglary)
andshort term investment portfolios
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4.5 STAKEHOLDERS’ ANALYSIS
Stakeholders are individuals, groups, organizations and institutions that interact with the SACCO
and whose interests can affect or be affected by the SACCO. The SACCO’s key stakeholders
include the following:
1. The Community refers to society from whom members of the SACCO come from and
they are also the potential members that the SACCO is targeting for membership.
2. Shareholders/Members – Those who have shares in the SACCO and who expect return
on investment.
3. Government Ministries, Departments, Agencies and Local Authorities -These are

public institutions that we need to collaborate with and they establish the legal framework
under which the SACCO operates. They also levy taxes on the income of the SACCO
4. Creditors – suppliers who finance the operations of the SACCO
5. SACCO Staff - These are the human resources that facilitate the SACCO in the delivery
of the mandate
6. The Private Sector – It is a catchment for recruitment and partnership.
7. Financial Institutions & Insurance companies – competitors and financers and also
borrow from the SACCO.
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CHAPTER 5: STRATEGIC ACTION PLAN - KEY RESULT AREAS
The key result areas are compared to the pillars in a building. The pillars are the holders of the
vision of a SACCO. They are the Key Value Drivers (KVDs). If a SACCO can be likened to a
building, the roof being the vision of the SACCO, then the columns supporting the roof are the
key pillars.
The key result areas/pillars of KAMUSIIME-SACCO are reinforced as follows:
5.1 HUMAN RESOURCES KEY RESULT AREA (KRA)

The SACCO cannot operate without human capital despite having all necessary facilities and
structures in place. Human beings execute the tasks on behalf of the SACCO that are necessary
to conduct business of meeting member needs and thus an important element of a SACCO.
Over and above this, the human resource of KAMUSIIME-SACCO should be adequately
competent to carry out its duties as well as sufficiently trained to execute efficiently and
effectively. It is this human resource that will bring income through their activities.
Key value drivers identified under human resource key result area include enhancing SACCO
organization structure for maximum efficiency, training and capacity building of staff to enhance
staff productivity by 2024.
5.2 OPERATIONS KEY RESULT AREA

How the SACCO undertakes the day-to-day activities in the course of doing business determine
the efficiency with which available resources are utilized. This makes it crucial that the
operations are well structured, processes effectively and efficiently carried out and monitoring of
the same to mitigate all risks and tap into areas with business potential.
Under operations, ICT was identified as playing a critical role in creating efficiency in SACCO
processes. In addition, prudent risk management to safeguard SACCO against adverse conditions
and service delivery to enhance customer satisfaction were also highlighted. Expanding office
space and premises is another step in ensuring a sound operational environment.
5.3 FINANCE KEY RESULT AREA

The SACCO needs resources to finance its asset growth and operations as it strives to achieve its
mission and vision. The members of the SACCO expect higher interest and dividends every
subsequent year thereby putting pressure on management to generate more surplus to meet this
demand.
KAMUSIIME-SACCO has to keep growing its balance sheet and prudently manage financial
resources as a core element of actualizing this strategic plan.
During the workshop, the SACCO identified deposit/savings growth, loan portfolio growth,
timely financial reporting, enhance continuous member education as critical factors to improve
the SACCO finances for the next five years.
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5.4 PRODUCTS & SERVICES KEY RESULT AREA

One of the key success factors for the long run survival and success of a SACCO is diversified
product range to meet the different client needs and a wide range of services to diversify income
streams. It is therefore important to develop and launch demand driven products and services to
meet member needs and by doing so, increase revenue.
The SACCO identifies a diversified products and services range, strategic SACCO branding and
intensive marketing as critical elements necessary to enhance quality of the SACCO products
and services.
5.5 GOVERNANCE KEY RESULT AREA

Governance is the process of directing, administering and control of procedures, policies and
laws that affect the day to day running of the SACCO. Good governance is thus a key result area
to the survival, growth and success of a SACCO as evidenced by the collapse of many primary
and secondary Co-operatives that had weak governance in the past.
Capacity building within the SACCO, deepening stakeholder relations and compliance to
regulatory authority as well as internal policies is important for good governance practice.
5.6 MEMBERSHIP KEY RESULT AREA

A rich and robust mixture of members will form a strong membership base for the SACCO
required in boosting the share capital base and mobilizing deposits/savings. Growing the
membership base is therefore at the forefront of this strategic plan and to achieve the vision of
the SACCO.
Under the membership key result area, the crucial elements identified that are expected to
enhance quality membership within the SACCO include membership growth and a high member
retention rate.
In this 2022 - 2026 strategic plan, the above elements will be at the forefront of the SACCO
strategy.
CHAPTER 6: STRATEGIC OBJECTIVES
To implement the strategy, the board shall focus on the identified critical issues expected to drive
the key objectives. Identifying the key objectives necessary to implement this strategy will help
the SACCO to: Prioritize and focus on the key issues for budget allocation. Help staff see how
their work contributes to the vision and the strategy to achieve it.
Upon identifying key objectives, the next step is defining strategies to achieve these objectives.
During the workshop, the participants under the guidance of the facilitators came up with the
chart of objectives and strategies:
The SACCO’s objectives and strategies were formulated along the five key strategic areas (Key
Result Areas) as follows:
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6.1 KEY RESULT AREA 1: HUMAN RESOURCES

Properly managed human resource complement is the most valuable resource in the SACCO.
Committed BOD, supervisory and staff members will assist the SACCO to achieve its Vision
and Mission. This Area will focus on:
Objective1: Enhance SACCO organizational structure for maximum efficiency
Objective2: Enhance continuous staff capacity building
Objective 3: To enhance staff productivity by 2024
6.2 KEY RESULT AREA 2: OPERATIONS & INFRASTRUCTURE

To meet its current and future needs, the SACCO needs to ensure that it has adequate space,
tools and equipment. This will include the acquisition of adequate space to operate a Front Office
Savings Activity, recruit additional staff, and ensure that the working atmosphere is conducive.
The attainment of the efficient ICT system will enhance the strength of internal controls,
integrity of financial management reporting and risk management program. Customer care will
also be enhanced through efficient operations. Risk management structures will be enhanced
through a vibrant internal audit function and policy development and implementation. This KRA
will focus on the following;
Objective 1: Expand SACCO office space and premises
Objective 2: To enhance ICT level (Management Information Systems) for increased efficiency
by 2024
Objective 3: Enhance risk management by 2025
Objective 4: To ensure continuous exemplary Customer service
6.3 KEY RESULT AREA 3: FINANCE/FINANCIAL PERFORMANCE

This KRA will determine the ultimate success of the SACCO and draws its strength from the
performance of the other KRAs. A large member base will result in higher capital and assets
base for the SACCO leading to increased surplus and returns to members. Under financial
performance KRA, the SACCO will focus on share & core capital growth, cost management,
investment and loan portfolio & default management. This KRA will focus on:
Objective 1: Grow institutional capital to 8% of total assets
Objective 2: Maintain total expenses at 50% of total income
Objective 3: To grow SACCO income by 20% each year for the next 5 years.
Objective 4: To enhance timely financial reporting
Objective 5: Enhance continuous member education
6.4 KEY RESULT AREA 4: MARKETING AND PRODUCTS & SERVICES

In an extremely competitive and robust financial market, the winning team will be the one that
pushes its products and services very aggressively, and offers exemplary customer care to recruit
and retain its members and customers. KAMUSIIME SACCO is no exception. To remain
relevant, the SACCO will ensure that customer service is world class and offer products and
services that are member-driven and relevant using the following strategies:
Objective 1: To introduce five new products by 2024
Objective 2: To enhance SACCO marketing strategy by 2023
Objective 3: To enhance SACCO service delivery (customer care)
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6.5 KEY RESULT AREA 5: GOVERNANCE

For the effective implementation of the strategy, the SACCO will review the policies, procedures
and regulations, and align its organizational structures to facilitate the implementation. Under
this KRA, the SACCO will focus on;
Objective 1: Ensure full compliance with bylaws, statutes &SACCO policies continuously
Objective 2: Ensure continuous Board capacity building (education) continuously
Objective 3: Enhance stakeholder relationships (networks & partnerships)
Objective 4: Ensure effective Communication and decision making
6.6 KEY RESULT AREA 6: MEMBERSHIP

Objective 1: Enhance continuous member education
Objective 2: Ensure 95% member retention rate
Objective 3: To maintain dormancy rate below 1%
Objective 4: Grow membership by 20% every year
Page 28 of 58
STRATEGY MAP FOR 2022-26
The Vision is: “A sustainable Cooperative Financial Institution where members’ satisfaction and
economic empowerment is a
priority”“………………………………………………………………………………
The Mission is: To provide affordable, reliable and sustainable financial services to its members to improve their livelihood”.
……………………………..”.”
RESULT AREA 1: RESULT AREA 2: RESULT AREA 3: RESULT AREA 4: RESULT AREA 5: RESULT AREA 6:
HUMAN RESOURCES OPERATIONS FINANCE PRODUCTS GOVERNANCE MEMBERSHIP
SO 1:To elect and recruit a SO 3:To grow the capital base and loan SO 4:To provide the best
committed board, SO 2:To acquire SO5:To establish systems SO 6:To enhance membership
adequate office space & portfolio while minimising the cost and customer care and diversify
supervisory committee & and procedures to facilitate quality through membership growth
establish efficient defaulters. products & services based on
execution of the plan and a high member retention rate
staff members management structures members needs
Strategic Actions:
Strategic Actions: 2.1 Expand Sacco office Strategic Actions: Strategic Actions Strategic Actions
1.1 Enhance Sacco space and premises 3.1:Grow institutional capital to 8% To introduce five
organizational structure of total assets new products by 5.1: Ensure full compliance with 6.1: Enhance continuous
for maximum efficiency 2.2:To enhance ICT level bylaws, statutes& Sacco member education
(Management 3.2: Maintain total expenses at 40% 2024 policies
1.2 Enhance continuous staff Information Systems) for of total income 5.2:Ensure continuous Board 6.2: Ensure 95% member
capacity building increased efficiency by
3.3:To grow Sacco income by 20%
To enhance capacity building (education) retention rate
2023 5.3:Enhance stakeholder 6.3: To maintain dormancy
1.3 To enhance staff
each year for the next 5 years. SACCO marketing relationships (networks & rate below 1%
productivity by 2023 2.3:Enhance risk
3.4:Grow savings & Loan portfolio at strategy by 2023 partnerships) 6.4: Grow membership by
management by 2024 10% 5.4:Ensure effective 20% every year
2.4:To ensure continuous
3.5:To enhance timely financial To enhance Communication and decision
reporting making
exemplary Customer 3.6:Enhance continuous member SACCO service
service by 2023 education delivery (customer
care)
Our Core Values

1. Transparency 2. Accountability 3.Customer focus 4. Quality service 5. Professionalism 6. Team work
Page 29 of 58
CHAPTER 7: STRATEGY IMPLEMENTATION MATRIX
7.1 KEY RESULT AREA 1: HUMAN RESOURCES MATRIX
7.1.1 Objective 1: Enhance SACCOorganization structure for maximum efficiency.
RESPONSIB
STRATEGY ACTIVITY INDICATOR TARGET KEY OUTPUT
ILITY
Job analysis and An evaluation A report by Dec2022 Job analysis & Board
Structure for evaluation exercise report evaluation carried out
maximum Coming up with clear job Number of new Revised job descriptions by Revised precise JDs Board
efficiency descriptions to avoid job descriptions Dec 2022
overlaps (JDs) revised
7.1.2 Objective 2: Enhance continuous staff capacity building
RESPONSIB TIMELIN
ILITY ES
Strengthen Carrying out A needs assessment report A report completed Training needs Board/ December
Staff skills training needs by 2023 identified GENERAL every year
assessmentfor MANAGER
staff
Developing a A staff training programme A programme Training of staff Board/ January
staff training developed by organized GENERAL every year
programme January MANAGER
Undertake No. of training sessions held Trainings conducted Informed, motivated & Board/ Annually
training No. of staff trained productive staff GENERAL
MANAGER
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7.1.3 Objective 3: To enhance staff productivity by 2023
TIME
RESPONSIB
STRATEGY ACTIVITY INDICATOR TARGET KEY OUTPUT LINE
ILITY
Design & implement Designing a staff A report appraisal To have the staff Staff appraisal Board
a performance appraisal system appraisal system system developed
management system
Review Appraising Number of staff Staff appraised at the Staff appraised Board
the staff appraised & end of the year
appraisal reports
Staff motivation Carrying out one An activity report The activity report by Team building Board/
team building on file June every year exercise carried out GENERAL
exercise per year MANAGER
Recognizing Number of staff Number of staff Exemplary staff Board
exemplary staff recognized recognized recognized
performance
Involving employees Staff involvement All the staff be Staff involved Board
in decision making in decision involved
making
Paying necessary Amount paid & To pay all staff the All Staff salaries, GENERAL
staff salaries, wages payment sheets necessary allowances, wages &allowances MANAGER
&allowances sallies & wages paid in time
Having in place a Office space, To provide conducive Conducive work GENERAL
conducive work place seating work place place environment & MANAGER
environment & office arrangement, environment & equipment for all the
facilitation location, office equipment for all the staff provided
equipment staff
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7.2 KEY RESULT AREA 2: OPERATIONS & INFRASTRUCTURE MATRIX
7.2.1 Objective 1: Expand SACCO office space, premises and branding
RESPONSIB TIMELI
ILITY NES
More working Renovation Contact to be More working space Board/
space to in place GENERAL
accommodate by….. MANAGER
extra staff Inserting our location on Contract to be All the new promotional Location of the SACCO Board/
created branded & promotional in place …… & branded materials to inserted on branded & GENERAL
materials /items have our Sacco branded promotional materials /items MANAGER
colours by May 2023
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7.2.2 Objective 2: To enhance ICT level in the SACCO for increased efficiency by 2024
TARGET KEY OUTPUT TIME

STRATEGY ACTIVITY INDICATOR RESPONSIBILITY
LINES
Set up Acquiring the ICT software ICT software Working active ICT software ICT,GENERAL
network for active directory to license & active domain network license & active MANAGER/
security ensure security within the domain network by Nov-2023 domain network GENERAL
network setup report functioning MANAGER
Acquiring & upgrading of New OS acquisition Upgraded OS by OS software bought ICT,GENERAL
operating systems (OS) Report Dec-2023 & new OS MANAGER
functional
Capacity Training Needs Assessment Assessment report TNA completed A programme for ICT,GENERAL
building to (TNA) by Dec-2023 staff training in MANAGER/
staff on ICT place GENERAL
MANAGER
Training all staff on ICT Training report Staff training on Enhanced staff ICT, GENERAL
usage a quarterly basis skills on ICT usage MANAGER
Data Determining the scope of Missing Data MDR completed A plan for data ICT,GENERAL
integrity missing data Report (MDR) by Nov-2023 clean-up exercise MANAGER/
GENERAL
MANAGER
Ensuring data clean-up is Data clean-up Data clean-up An efficient & ICT, GENERAL
done; i.e. dormant accounts, report completed by effective data base MANAGER/
missing member data Dec-2023 for all stakeholders GENERAL
MANAGER
Alternative Deploying/activating Mobile & SMS Activate mobile Mobile/SMS ICT,GENERAL
channels of Mobile/SMS Banking Banking report & SMS banking Banking service MANAGER/
service service channels by Dec-2023 channels GENERAL
delivery functioning MANAGER
Developing online loan Online loan Online loan Infrastructure for ICT,GENERAL
application with key appraisal report appraisal to start implementing MANAGER/
requirements like biometric Jan-2025 online loan GENERAL
signature on guarantor ship application setup MANAGER
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and functioning
Process Processing mapping to Automation Mapping is A plan for paperless GENERAL
automation determine scope mapping report effective Dec- operations MANAGER
2023 developed
Developing and deploying Paperless loaning Paperless loaning A paperless loaning ICT,GENERAL
paperless operations on process report process to start process functioning MANAGER/
Loaning process January 2026 GENERAL
MANAGER
Introducing biometric Biometric clocking Clocking system A biometric ICT GENERAL
clocking system system report to start January clocking system in MANAGER/
2024 place GENERAL
MANAGER
7.2.3 Objective 3: Enhance risk management in SACCO by 2023
RESPONSIB TIMELI
ILITY NES
Comprehensive Adequately insuring all Insurance Loans, cash & Timely paid-up Board/
Insurance items/equipment (Assets) policy covers fixed assets insurance premiums GENERAL
Coverage at the MANAGER
SACCO All insurance policy covers Insurance Cash in transit, Timely renewals & Board/
related to personnel are in place policy covers medical etc. payments GENERAL
& regularly renewed MANAGER
Full Identifying gaps in the current Reviewed Loans, savings, Signed off policy Board/
implementation policy framework & resolve all policy finance&personnel documents GENERAL
of policies issues documents policies MANAGER
manuals Head of Departments to create Awareness Operations, Signed off SACCO’s GENERAL
awareness to their staff of the onregulations& finance & admin regulations & policies MANAGER
departmental policies policies report issues addressed
Regularly updating the pre- Regular reports Operations, Key performance Board/
requisite Board committees on to the board finance & admin indicators achieved GENERAL
the relevant policies committees issues addressed periodically MANAGER
Quarterly reviewing, evaluating Quarterly Operations, Key performance Board
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& implementing the policies by progress reports finance & admin indicators achieved
the board issues addressed periodically
Information & Implementing scheduled Periodic service Computers, Proper functioning GENERAL
assets security maintenance of all serviceable & maintenance furniture & assets of the SACCO MANAGER
machinery & equipment, e.g. reports fittings, office
computers, vehicles etc. equipment etc.
Providing for automatic offsite Offsite back-up Offsite back-up for Offsite back-up Board/
back-up of the CCTV security status report CCTV security system functioning GENERAL
system system MANAGER
Scheduling regular rotation of Periodic reports Weekly/or Rotation schedule for GENERAL
the security guards for rotation monthly rotation Guards MANAGER
Ensuring that there is adequate ICT Report Upgraded & Adequate security ICT
security mechanisms i.e firewall updated operating mechanisms in place GENERAL
and proper antivirus software system & antivirus MANAGER/
GENERAL
MANAGER
Digitizemanual Developing and Implementing a Records policy Policy document Signed off records Board/
records records management policy document by December 2024 Management Policy GENERAL
MANAGER
Engaging a Digital Records A contract A vendor engaged A contract signed off Board
Management System (DRMS) engaging a by February 2024 with a DRMS vendor
vendor DRMS vendor
Acquiring and deploying the A DRMS setup To be setup by System in place Board
system report December 2023
Ensuring proper monitoring by Active directory To be setup by Proper functioning Board
implementing of the active software report January 2024 active directory
directory software software
Introducing a full-fledged A report on the To be setup by KAMUSIIME Board
section to deal with need of a May 2023 recovery unit
KAMUSIIME recovery KAMUSIIME established
recovery unit
The disaster Developing a Disaster Recovery A DR&BCPP A policy document Disaster recovery & Board/
preparedness and Business Continuity Policy document by December 2023 business continuity GENERAL
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plans of the Plan (DR&BCPP) policy plan in place MANAGER

SACCO Training for staff & board on Number of Training to be Sensitized staff & Board/
new policy trainings conducted by board of thedisaster GENERAL
attended December 2023 preparedness plans MANAGER
Upgrading to real time data Upgrade report To be upgraded by Real time data Board/
redundancy, i.e. real time offsite May 2024 redundancy setup GENERAL
backup of SACCO data MANAGER
Regular security drills Periodic Semi annually Security Drills GENERAL Continual
security Report implemented MANAGER
7.2.4 Objective 4: To ensure continuous exemplary customer service
RESPONSIBI TIMELIN
LITY ES
Customer Service Recruiting & number of new Annually recruit Customer Service GENERAL Continually
Excellence retaining members members new members Charter MANAGER
recruited and
retained
7.3 KEY RESULT AREA 3: FINANCIAL PERFORMANCE MATRIX
7.3.1 Objective1: Grow institutional capital (statutory reserves +retained earnings) to 10% of total assets
RESPONSIBI TIMELIN
LITY ES
Retained Reservation and retention Revised policy Grow institutional 20% of profits retained F&A committee
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earnings of profits annually documents capital (IC) by 15% annually

growth policy Distributing 50% of Revised policy Grow institutional 20% of profits be F&A committee
surplus as dividends, documents capital (IC) by 15% invested in other
bonuses & interest on investments
deposits
Investing in money CDSC statement Growth IC by 15% Improve investment ratio F&A committee
markets
7.3.2 Objective 2: Maintain expense at 50%-60% of total income
RESPONSIBI TIMELI
LITY NES
Cost Minimizing external Monthly financial Savings mobilization Mobilization of savings Board
management borrowing reports
policy Use of ICT as opposed Reports on printing Reports be presented reduction in printing & ICT GENERAL
to manual paper & stationery costs by use of projectors stationery costs MANAGER
Outsourcing some Outsourcing Service Identify services to reduction on Manger
services e.g. cleaning, contract outsource outsourced services
Budget variance analysis Variance report Identify budget items The amount saved from Finance
that can saved the budgeted amount GENERAL
MANAGER
Renegotiating existing Renegotiated Identify contracts to reduction on Board
contracts contract renegotiate renegotiated contracts
Introducing new cost Reports on cost to To half the cost of reduction of member Education
effective channels for members education members education education costs committee
member education
7.3.3 Objective 3: To grow SACCO income by 20% each year

KEY OUTPUT RESPONSIB TIMELIN
STRATEGY ACTIVITY INDICATOR TARGET
ILITY ES
High interest Investing in money CDSC statement Grow income by 20% Improve investment F&A Continuous
earning markets ratio committee
instruments Increasing our investment CDSC statement Grow income by 20% Improve investment F&A Continuous
Page 37 of 58
portfolio ratio committee

Savings to the Recruiting 73 new List of new Ushs 14M per month New members GENERAL
tune of Ushs members per month members recruited MANAGER
179 million Conducting periodic Monthly Report on increase in savings Credit
per Year savings drives all savings per month Committee
Creating incentive Number of awards Incentive scheme Incentive schemes Education
schemes for highest savers/ given established by every created committee
most improved savers year
Strategic Identifying potential List of business Business partners semi Approached GENERAL
partnerships business partners partners annually business partners MANAGER/
Board
Approaching potential Minutes of meeting Assessment for Compliance GENERAL
business partners compliance requirements MANAGER/
Board
Sending business "Received" Quarterly business “Received” & GENERAL
proposals to Governments, business proposals proposals submitted “Accepted” business MANAGER/
financial institutions & Co- proposals Board
operatives
7.3.4 Objective 4: Grow Savings and Loan portfolio at 10%

RESPONSIB TIMELI
ILITY NES
The balance Enforcing a savings drive & Amount of Ushs 7M /month increase monthly Finance Monthly
sheet growth ensure that every customersaves members savings savings GENERAL
policy Ushs 8,000/month MANAGER
Strict enforcing of loan recovery Delinquency NPL < 1% of total reduction in NPL's Credit Monthly
Page 38 of 58
reports loans GENERAL

MANAGER
Expanding multiplier to 5 times Reports on Loans to savings New terms & Credit
& all other lending requirements savings & lending ratio conditions for loans GENERAL
are adhered to requirements to savings ratio MANAGER
Introduction of term deposits Report on term To have a new New product & Credit
deposits product by Dec-23 features GENERAL
MANAGER
7.3.5 Objective 5: To enhance timely financial reporting
KEY OUTPUT RESPONSIBI TIMELIN

LITY ES
Timely annual Enforcing compliance Compliance Monthly, quarterly, Zero tolerance Board/Audit Monthly
reporting status reports semi-annual & non-compliance GENERAL
annually MANAGER
Generating Reports for use by the Financial Periodic reports as per Financial reports Finance Monthly
Board & members at the right time reports policy & regulations as per work plan GENERAL
MANAGER
Displaying financial reporting Memo on the Availed to the Schedule for Finance Immediately
schedule & other statutory returns schedule management & board financial reports GENERAL
MANAGER
7.3.6 Objective 6: Enhance continuous member education by 2026
RESPONSIB TIMELI
ILITY NES
Member education Carrying out intensive & Programme of General meeting to Calendar of conducting GENERAL Annually
conducted member focus education activities approve the programme the sensitization MANAGER
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7.4 KEY RESULT AREA 4: PRODUCTS AND SERVICES MATRIX

7.4.1 Objective 1: To introduce five new products by 2024
KEY OUTPUT RESPONSIB TIMELI
ILITY NES
Product review Periodically reviewing the Report New products Reviewed GENERAL
& diversification existing products with a view to recommending introduced by Jan-2024 products & MANAGER
routinely aligning to customer demand new products services
implemented Developing a new product New product Quarterly performance Customer demand Credit Dec every
annually uptake report of new products by new product GENERAL year
MANAGER
7.4.2 Objective 2: To enhance SACCO marketing strategy by 2023

RESPONSIB TIMELI
ILITY NES
Aggressive Formulating a marketing Policy document in A policy document by A Board/
marketing policy Place January 2024 comprehensivemarket GENERAL
ing policydeveloped MANAGER
Develop a comprehensive Marketing plan Marketing plan Marketing plan Board/
marketing plan document in place document by April 2023 developed GENERAL
MANAGER
Implement the new Increased marketing To start implementation Enhanced & prudent Board/
marketing plan activities&Increased by June 2023 marketing GENERAL
membership management MANAGER
Competitor Developing a strategy of A report to protect To start implementation Strategy enshrined in Board/
analysis & protecting our members members from by June 2023 the marketing plan GENERAL
profiling from other competitors competitors MANAGER
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7.4.3 Objective 3: To enhance SACCO service delivery
KEY OUTPUT RESPONSIBI TIMELIN

LITY ES
Customer Reducing Turn Around TAT for loans report Implement by Reduced TAT for Board/
satisfaction Time (TAT) for loans June 2023 loans (weekly) GENERAL
MANAGER
Training on customer care Training report To be conducted Increased Board/ Continuous
for board, management & annually membership GENERAL
staff MANAGER
Put in place a survey tool Survey tool Immediate Feedback on the GENERAL Immediately
conducted survey MANAGER
Analyzing survey feedback Survey feedback report Quarterly Customer needs GENERAL Quarterly
identified MANAGER
7.5 KEY RESULT AREA 5: GOVERNANCE MATRIX
7.5.1 Objective 1: Ensure full compliance with statutes and SACCO policies by 2023
RESPONSIB TIMELI
ILITY NES
Statutory Developing& Dividend policy in place, 20% of the annual Increased funds for F&A Annually
Page 41 of 58
compliance implementing a Amounts of retained earnings & profits retained as growth in the next committee
programs dividend policy statutory reserves in the balance voluntary 5 years
Sheet reserves
Recruiting of new Number of new members Increased GENERAL Continual
members to raise membership MANAGER ly
more capital
Developing a Compliance checklist Governance, Compliance Auditor/
compliance checklist Finance, HR, checklist in placeGENERAL
ICT, Credit, MANAGER
Submitting timely Statutory Reports URA, NSSF, Timely submission GENERAL Continual
statutory returns Cooperative of reports & MANAGER ly
returns
Full Board members Code of conduct and board To be in place by Signed code of Board
implementation of signing the code of charter documents reports October 2023 conduct & board
the Governance conduct and board charter
Toolkit charter
Implementing Succession planning document To be in place by Signed Succession Board
succession planning reports October 2024 planning policy
policy
Developing and Board work-plan document To be in place by Signed Board Board
implementing a report October 2023 work-plan
board work plan
Developing & Terms of reference document To be in place by Signed terms of Board
signing a Terms of report October 2024 reference for board
Reference for Board members
members
7.5.2 Objective 2: To ensure continuous Board capacity building by 2026
STRATEGY ACTIVITY INDICATOR TARGET KEY OUTPUT RESPONSIBILITY TIMELINES

Capacity building Conducting educational No. of education & Annually Educational Board Annually
of board members seminars seminars attended seminars
conducted
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Inducting of new Number of new Annually Induction of new Board Annually

members into various members board members
committees
Exchanging visits and Number of visits & Annually Exposure visits Board Annually
benchmarking benchmarking /Induction
reports
7.5.3 Objective 3: To enhance stakeholder relationships by 2026

Stakeholder Networking with other Number of SACCOs Annual event Partnerships with Board Annually
relationship SACCO to be able to networked with other SACCOs
counter the negative
publicity
Developing a A report of the Developed by Stakeholders Board
stakeholder matrix stakeholders matrix June 2023 matrix in place
developed
Undertaking a CSR Number of CSR Annual event Community Board Annually
activity activities services offered
7.6 KEY RESULT AREA 6: MEMBERSHIP MATRIX
7.6.1 Objective 1: Enhance continuous member education
STRATE RESPONSIB TIMELIN

ACTIVITY INDICATOR TARGET KEY OUTPUT
GY ILITY ES
Member Developing member education Programme of General meeting to Calendar of conducting Education Immediately
education program /calendar activities approve the programme the sensitization committee
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Conducting member education Member According to the Members sensitized Education As per
according to calendar education report calendar committee calendar
7.6.2 Objective 2: Ensure 95% member retention rate

Customer Conducting customer Customer Quarterly Enhanced customer GENERAL Quarterly
Satisfaction. satisfaction surveys satisfaction survey service MANAGER/
reports BOARD
Organizing relevant trainings Training report Annually Members Education Annually
of interest to members interests /needs Committee
appreciated
KAMUSIIME training Feedback report Immediate Feedback on Education Immediately
feedback from new & old services to Committee
members on the services they improve /needed
need
7.6.3 Objective 3: To maintain dormancy rate below 1%

Improved & increased Conducting a A survey Annually Products & services Credit GENERAL annually
number of products as per products & services report needed by members MANAGER/
members’ demand needs survey GENERAL
MANAGER
Follow-ups of dormant Following on Call report, Monthly Follow-up of GENERAL Monthly
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members Dormant members dormant members MANAGER
7.6.4 Objective 4: Grow membership by 20% every year

Recruitment Reviewing membership Report on the Revised by Revised recruitment Education
recruitment strategy current recruitment May 2024 policy committee
strategy
Carrying out recruitment Number of new Recruitment Increased membership Board
targets of members by members recruited by June 2023
the Board.
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7.7 IMPLEMENTATION OF THE STRATEGIC PLAN
In order for KAMUSIIME SACCOto implement its strategic plan effectively, board and
management intend to take the following strategic steps:
1. Improve its image by improving on public relations; participate in community

projects and develop products that target all segments of membership clients.
2. To enhance accountability, quick and efficient service delivery in the SACCO for
members benefit.
3. To maximize staff output, board and management intend to carry out thorough
jobevaluation to determine staff requirements, and if need be hire more staff.
4. As a performance monitoring process, board and management plan to immediately set

targets for staff and require them to develop work plans to meet set targets.
5. Staff performance thereafter, shall be based on accomplishment of their work plans.
6. Reviewing current policies, developing non-existent policies, training on their

individual roles and responsibilities, signing indemnity forms, developing code of
conduct and ethics, including each committee developing its work plan which shall be
monitored quarterly.
7. Review, upgrade and integrate the current software of the SACCO in order to have
real-time service in all sections of the SACCO.
8. Attain operational standards as recommended by the World Council of CreditUnions.

Board and management should implement PEARLS (Protection, Effective Financial
Structure, Asset Quality, Rates of Return and Cost, Liquidity & Signs of Growth)
monitoring tool in order to track progress towards meeting the standards.
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CHAPTER 8: INSTITUTIONAL STRUCTURE
This chapter presents the institutional structure covering the general meeting, board of directors,
supervisory committee, office of the GENERAL MANAGER, description of the departments
and their functions, organizational chart (organogram) and proposed staff establishment.
8.1 THE GENERAL MEETING
The supreme authority of the SACCO is vested in the general meeting of members. The powers
of the general meeting are provided in Article 16 of BYLAWS of KAMUSIIME-SACCO.
8.2 THE BOARD
The committee is the governing authority of the SACCO as directed by the members at the
general meetings. The committee is responsible for policy direction of the affairs of the SACCO.
The functions and responsibilities of the committee are provided in Article 27 of BYLAWS of
KAMUSIIME-SACCO.
The committee discharges its responsibilities through delegation to sub-committees made up of

the members of the committee.
8.3 SUPERVISORY COMMITTEE (SC)
The SC is responsible for ensuring the SACCO’s compliance with applicable laws and internal
controls. In addition, it has the role of establishing the truth and accuracy of the SACCO’s
financial condition as well as ensuring that the administrative practices and procedures are
adequate to safeguard member’s and the SACCO’s rights and interests. The powers and duties of
the SC are provided in Articles 41&43 of BYLAWS of KAMUSIIME-SACCO.
8.4 THE OFFICE OF THE GENERAL MANAGER
As the Chief Executive Officer of the SACCO, the office of the GENERAL MANAGER is
created under Article 50 of BYLAWS. The holder of the office shall have the following powers
and duties among others:
i. Managing the affairs of the SACCO in a competent and professional manner.
ii. Ensuring that proper books of accounts, records and returns are kept and that regular
financial, statistical and operational information is prepared and submitted to the
executive committee, the Ministry of Trade, Industry and Cooperatives, and other
stakeholders and shall be responsible for ensuring the accuracy of that information.
iii. Attending the executive committee meetings and the annual general meetings in an
advisory capacity.
iv. Preparing SACCO’s business plan and budget for approval by the executive committee.
v. Providing information required by the supervisory committee in time.
vi. Developing and recommending the human resource policies and plans for the executive
committee’s approval.
vii. Responsible for the security of funds and assets of the SACCO.
viii. Directing and supervising the administration and processing of loan applications.
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ix. Advising and developing new products and services to satisfy the members’ needs.
x. Ensuring implementation without delay of all decisions made by committees of the
SACCO.
xi. Ensuring there is effective communication between the management and the executive
committee.
8.5 DEPARTMENTS
Analysis of the current and expected future operations of the SACCO resulted in the
establishment of two (2) departments and other four (4) departments shall be established later as
follows:
1. Credit Department
2. Finance and Administration Department
Proposed Departments to Establish Later are;

3. Information and Communication Technology (ICT) Department
4. Front Office Services Activity (FOSA) Department and
5. Internal Audit Department
3. Marketing/Business Development Department
These departments are explained in sections 8.5.1 to 8.5.5.
8.5.1 Credit Department
The credit department services shall consist of administering loans in accordance with the
lending policy of the SACCO. It will be headed by a Credit Manager who will be responsible to
the General Manager. The core functions of the department are to:
i. Facilitate formulation and implementation of the lending policies and procedures;

ii. Process, appraise and recommend loan applications;
iii. Coordinate all activities in relation to lending;
iv. Handle loan enquiries;
v. Offer financial advisory services to members;
vi. Take necessary action to recover loans; and
vii. Perform any other duties incidental to the functions of the credit department as approved
by the executive committee.
8.5.2 Finance and Administration Department
The finance and administration department services will consist of financial control, accounting
and administration of the SACCO. It will be headed by a Finance Manager/Accountant who will
be responsible to the General Manager. The core functions of the department are:
i. Formulation and implementation of financial and accounting policies and procedures;
ii. Formulation and implementation of administration and human resource policies and
procedures;
iii. Authorization of commitments and contractual obligations;
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iv. Preparation of all annual financial and administrative reports for the SACCO;
v. Preparation, implementation, control and coordination of all services related to the
budget;
vi. Coordination of all projects and follow-up on reimbursement claims;
vii. Coordination of funding proposals;
viii. Expenditure monitoring and reporting;
ix. Enhancing compliance with Ministry of Trade, Industry and Cooperatives requirements
on financial management;
x. Procurement and supplies management; and
xi. Performing any other duties incidental to the functions of the finance department as
approved by the executive committee.
Proposed Departments to be established are;

8.5.3 Information, Communication and Technology Department
The information communication and technology (ICT) department services will consist of
management of the information, communication and technology needs of the SACCO. It will be
headed by an ICT Officer who will be responsible to the General Manager. The core functions of
the department are:
i. Implementation of ICT policies and procedures;

ii. Development, implementation and management of computerized information system;
iii. Providing appropriate information and guidance on emerging trends and best practices in
ICT to enable the SACCO achieve competitive advantage, compliance and to optimize
usage of technology;
iv. Ensuring timely provision of ICT service to all the functions of the SACCO;
v. Ensuring a well-coordinated information dissemination systems with sufficient controls
to capture and process data;
vi. Ensuring that all ICT equipment are in good working condition;
vii. Coordination and updating of the SACCO website; and
viii. Performing any other duties incidental to the functions of the ICT department as
8.5.5 Internal Audit Department
The Internal Audit Department services consist of ensuring that the internal control systems
throughout the KAMUSIIME-SACCO are adequate and are complied with. It will be responsible
to the SC. The core functions of the Department include:
i. Making recommendations for improving internal controls throughout the SACCO;

ii. Assessing the reliability and integrity of financial and operating information and ensuring
they comply with set policies;
iii. Monitoring and constantly reviewing audit programmes for all the sections in the
department;
iv. Investigating irregularities identified and reporting on any wastage of SACCO funds; and
v. Performing any other duties incidental to the functions of the Internal Audit department
as approved by the executive committee.
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8.5.6FOSA Department
The FOSA department will be responsible for developing and offering a wide range of financial
services to its customers. The department will be headed by a FOSA officer who will be
responsible to the General Manager. The core functions of the department include:
i. Implementation of the FOSA procedures and practices;

ii. Developing and implementing a marketing strategy for the SACCO;
iii. Mobilization of deposits;
iv. Management of savings;
v. Undertaking member and customer education on various products/services;
vi. Offering cash withdrawal services;
vii. Offering funds transfer services;
viii. Provision of financial advisory services to members/customers;
ix. Planning and implementing aggressive members and customer drive;
x. Employing requisite customer care strategies to recruit and maintain client; and
xi. Performing any other duties incidental to the functions of the FOSA department as
Page 50 of 58
CHAPTER 9: MONITORING AND EVALUATION PLAN
Monitoring and evaluation will be a continuous process during the five (5) year strategic
plan and shall run simultaneously.Monitoring and evaluation is a mechanism for control that
shall require the involvement of all members and stakeholders of the SACCO.
9.1 MONITORING SYSTEM AND EVALUATION STRATEGIES

The monitoring system is a checking mechanism set in place to ensure that the
implementation process is moving as planned. On the other hand, evaluation is an appraisal
of how well an organization has performed in the five (5) year period. Timely evaluations
will alert management on actual problems or potential problems before the situation
becomes critical.
Monitoring and evaluation should be performed on a continuing basis rather than at the end
of specified periods of time. This will allow benchmarks of progress to be established and
effectively monitored. The following groups will be in the forefront of the monitoring and
evaluation process of the SACCO.
9.1.1 Strategy Implementation Team
The KAMUSIIME Sacco Board shall establish a Corporate Strategy Implementation Team
(CSIT) to follow up and ensure that strategies are being implemented, performance is being
measured, progress reports are made and discussed, and corrective action is taken where
necessary.
The team will be responsible for:

i. Assigning the budgets for different projects and activities in this strategic plan
ii. Monitoring the implementation of the strategic plan on a quarterly basis
iii. Evaluating the results achieved vis-à-vi the targets in the strategic plan quarterly and
short comings followed up upon.
Progress reporting on the strategic plan implementation by the CSIT will be on quarterly
basis and monthly for departmental heads. The reporting will address activities falling due
within the quarter/month. The following template will be used for performance evaluation
and reporting:
Activit Department Output Period Variance Explanatio Way

y Responsible Indicator Achievemen n Forw
t /Output ard
1
2
3
4
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9.1.2 Supervisory Committee

The supervisory committee shall bear the responsibility of reviewing progress made on the
strategic plan implementation and reporting to the board of directors on quarterly basis and
also at general meetings.
9.1.3 Board of Directors

The board will be the primary implementers of the strategic plan. The team shall include
heads of departments, and the General Manager. The team shall be required to develop
annual work plans based on this strategic plan, and to cascade the plan downwards to
members of staff and progress reports made. The team shall be required to deliberate and
take corrective action on areas of implementation that are not meeting the set performance
parameters.
9.1.4 Members of staff

The strategic plan shall be cascaded down to members of staff. Detailed work plans and
performance targets will be set by the executive committee and it will be the responsibility
of every member of staff to meet these targets.
9.1.5 Key Performance Indicators

Table 8: SACCO’s Overall Current and Projected Key Performance Indicators
S/NO Year 2022 2023 2024 2025 2026
1 No. of members 4,696 5,635 6,763 8,115 9,738
Growth in members 20% 20% 20% 20%
2 Members savings 821,271,717 1,053,929,324 1,353,639,431 1,739,968,833 2,238,244,569
Growth rate 23% 22% 22% 22% 22%
3 Loans outstanding 1,323,422,108 1,786,619,846 2,411,936,792 3,256,114,669 4,395,754,803
Growth rate 26% 26% 26% 26% 26%
4 Interest income 256,458,611 307,750,333 369,300,400 443,160,480 531,792,576
Growth rate 51,291,722 61,550,067 73,860,080 88,632,096
Other Income 122,459,820 160,914,752 200,961,209 251,443,711 315,227,226
Other Income/interest income 78,730,260 38,454,933 40,046,457 50,482,502 63,783,515
5 Staff costs 113,711,296 134,179,329 158,331,608 186,831,298 220,460,932
Staff costs/total income 61,359,354 20,468,033 24,152,279 28,499,690 33,629,634
6 No. of employees 13.00 15 17 20 23
7 Operating costs 134,534,600 158,750,828 187,325,977 221,044,653 260,832,690
Operating costs/ total income 60,636,600 24,216,228 28,575,149 33,718,676 39,788,038
8 Surplus 62,821,029 77,588,067 108,790,728 150,068,551 204,467,746
Surplus/ total income 19% 29% 28% 27%
9 Retained surplus 99,501,213 109,451,335 120,396,468 132,436,115 145,679,727
Retained surplus/ total income 9% 9% 9% 9% 9%
9.1.6 Data & Information Collection procedures

Elaborate data and information collection templates and procedures will be developed to
measure performance as per the indicators and report to board. The reports will describe
actions taken by the management toward achieving the specific strategies of the plan and
will include achievements, challenges and emerging issues, costs, benefits and
recommendations.
Page 52 of 58
9.2. FINANCIAL PROJECTIONS

9.2.1 Projected Statement of Comprehensive Income
Loan commitment fees 47,865,0 58,395,30 71,242,26 86,915, 106,036

00 0 6 565 ,989
Link bank interest 3,135,476 3,825,280 4,666,842 5,693,547 6,946,128

Income from deposit
charges 1,368,000 1,668,960 2,036,131 2,484,080 3,030,578
School bank charges 48,600 59,292 72,336 88,250 107,665

Incomes from sms
notifications 183,060 223,333 272,467 332,409 405,539
Sale of stationery 3,932,100 4,797,162 5,852,538 7,140,096 8,710,917
Membership entry fees 1,521,000 1,855,620 2,263,856 2,761,905 3,369,524
Account opening fees 3,114,000 3,799,080 4,634,878 5,654,551 6,898,552
Transport refund 5,551,083 6,772,321 8,262,232 10,079,923 12,297,506
Legal fees recovery 15,617,520 19,053,374 23,245,117 28,359,042 34,598,032
Airtime refund 1,767,298 2,156,103 2,630,446 3,209,144 3,915,155

Mtn mobile money
commission 1,153,273 1,406,993 1,716,531 2,094,168 2,554,885
Cente money commission 260,447 317,746 387,650 472,933 576,978
Airtel money commission 1,247,391 1,521,817 1,856,617 2,265,072 2,763,388
Membership application 608,400 742,248 905,543 1,104,762 1,347,810
ACcrued interest on loans 225,841 275,526 336,141 410,092 500,312
Loan monitoring fees 19,851,332 35,732,397 48,238,736 65,122,293 87,915,096
122,459,820 160,914,752 200,961,209 251,443,711 315,227,226
TOTAL INCOMES 378,918,431 468,665,085 570,261,609 694,604,191 847,019,801

EXPENSES
INTEREST EXPENSES - -
Finance costs 38,226,672 45,107,474 53,226,819 62,807,646 74,113,022
BANK CHARGES 1,282,033 1,512,799 1,785,103 2,106,422 2,485,577
Total Interest Expenses 39,508,706 46,620,273 55,011,922 64,914,068 76,598,600
STAFF EXPENSES - - - - -
Gross salaries and wages 68,750,000 81,125,000 95,727,500 112,958,450 133,290,971
Page 53 of 58
Staff training 3,382,700 3,991,586 4,710,071 5,557,884 6,558,304
Staff welfare 20,300,619 23,954,731 28,266,582 33,354,567 39,358,389
Nssf 10% 7,032,977 8,298,913 9,792,717 11,555,406 13,635,379
Staff accomodation 3,245,000 3,829,100 4,518,338 5,331,639 6,291,334
Staff overtime 3,200,000 3,776,000 4,455,680 5,257,702 6,204,089
Leave pay 4,200,000 4,956,000 5,848,080 6,900,734 8,142,867
Non staff wage 3,600,000 4,248,000 5,012,640 5,914,915 6,979,600
Total Staff Expenses 113,711,296 134,179,329 158,331,608 186,831,298 220,460,932

GOVERNANCE EXPENSES
Bod training 2,363,400 2,788,812 3,290,798 3,883,142 4,582,107
Board and staff incentives 3,038,400 3,585,312 4,230,668 4,992,188 5,890,782
Bod transport refund 11,941,000 14,090,380 16,626,648 19,619,445 23,150,945
Member education trainings 11,000,000 12,980,000 15,316,400 18,073,352 21,326,555
Agm expense 18,082,084 21,336,859 25,177,494 29,709,443
Total Governance Expenses 28,342,800 51,526,588 60,801,374 71,745,621 84,659,833

OPERATING COSTS
Mobilization 10,013,080 11,815,434 13,942,213 16,451,811 19,413,137
Social responsibility 2,377,600 2,805,568 3,310,570 3,906,473 4,609,638
Education support 874,650 1,032,087 1,217,863 1,437,078 1,695,752
Stationery and printing 6,929,786 8,177,147 9,649,034 11,385,860 13,435,315
Office maintenance 2,819,560 3,327,081 3,925,955 4,632,627 5,466,500
Fuel 12,207,390 14,404,720 16,997,570 20,057,132 23,667,416
Motorcycle maintenance 2,976,972 3,512,827 4,145,136 4,891,260 5,771,687
Telephone and postage 2,326,900 2,745,742 3,239,976 3,823,171 4,511,342
Pine plantation maintenance 711,800 839,924 991,110 1,169,510 1,380,022
Mtn mobile money expenses 102,450 120,891 142,651 168,329 198,628
Computer expenses 2,528,960 2,984,173 3,521,324 4,155,162 4,903,091
External audit fees 2,500,000 2,950,000 3,481,000 4,107,580 4,846,944
Electricity bills 1,894,440 2,235,439 2,637,818 3,112,626 3,672,898
Legal fees 18,886,140 22,285,645 26,297,061 31,030,532 36,616,028
Page 54 of 58
Field expenses 1,678,820 1,981,008 2,337,589 2,758,355 3,254,859
Security guards 38,953,120 45,964,682 54,238,324 64,001,223 75,521,443
Transport and traveling 2,668,540 3,148,877 3,715,675 4,384,497 5,173,706
Internal policies expenses 9,956,000 11,748,080 13,862,734 16,358,027 19,302,471
Generator maintenance 77,140 91,025 107,410 126,743 149,557
Cleaning service expense 3,587,062 4,232,733 4,994,625 5,893,658 6,954,516
Software 6,632,190 7,825,984 9,234,661 10,896,900 12,858,342
Rent expense 3,832,000 4,521,760 5,335,677 6,296,099 7,429,396
- - - - -
Total operation expenses 134,534,600 158,750,828 187,325,977 221,044,653 260,832,690
NON INTEREST EXPENSES 276,588,696 344,456,745 406,458,959 479,621,572 565,953,455
Grand Total 316,097,402 391,077,018 461,470,881 544,535,640 642,552,055
TOTAL 316,097,402 391,077,018 461,470,881 544,535,640 642,552,055
Surplus 62,821,029 77,588,067 108,790,728 150,068,551 204,467,746
9.2.2 Projected Statement of Financial Position
Page 55 of 58
DESCRIPTION PROJECTION 2022 PROJECTION 2023 PROJECTIONS 2024 PROJECTIONS 2025 PROJECTIONS 2026
ASSETS Dec-22 2023 2024 2025 2026
Computer & a cces s ori es 29,818,250 34,290,988 39,434,636 45,349,831 52,152,306
OFFICE EQUIPMENTS 880,000 1,012,000 1,163,800 1,338,370 1,539,126
building 29,452,500 33,870,375 38,950,931 44,793,571 51,512,607
Vehicle & motor cycle 23,196,250 26,675,688 30,677,041 35,278,597 40,570,386
Furniture & fittings 6,611,000 7,602,650 8,743,048 10,054,505 11,562,680
Generator 1,100,000 1,265,000 1,454,750 1,672,963 1,923,907
Solar system 14,702,600 16,907,990 19,444,189 22,360,817 25,714,939
Public address system 9,124,830 10,493,555 12,067,588 13,877,726 15,959,385
Sacco land 82,005,000 94,305,750 108,451,613 124,719,354 143,427,258
Biological assets 9,331,242 10,730,928 12,340,567 14,191,652 16,320,400
SHARES IN UCSCU 330,000 379,500 436,425 501,889 577,172
tota l recei va bl es 49,709,913 57,166,399 65,741,359 75,602,563 86,942,948
Adva nces 1,750,000 2,012,500 2,314,375 2,661,531 3,060,761
258,011,584 296,713,322 341,220,320 392,403,368 451,263,873
LOANS PORTIFOLIO 1,323,422,108 1,786,619,846 2,411,936,792 3,256,114,669 4,395,754,803
l os s provi s i on - 41,129,054 - 47,298,412 - 54,393,173 - 62,552,150 - 71,934,972
l oa n portfol i o 1,282,293,054 1,739,321,434 2,357,543,618 3,193,562,520 4,323,819,831
cash and cash equivalents
CASH AT HAND 69,868,102 83,841,723 100,610,068 120,732,081 144,878,497
Ba nk - ba nk of a fri ca 114,677,226 137,612,672 165,135,206 198,162,247 237,794,697
Sta nbi c ba nk 12,570,399 15,084,478 18,101,374 21,721,649 26,065,978
Centena ry ba nk 5,502,181 6,602,617 7,923,140 9,507,768 11,409,322
mobi l e money a ccounts 3,201,568 3,841,882 4,610,258 5,532,310 6,638,772
Ea s y l oa d a i rti me a ccounts 41,088 49,306 59,167 71,000 85,200
Mtn mobi l e money fl oa t 4,193,956 5,032,747 6,039,297 7,247,156 8,696,587
Ai rtel money fl oa t 13,319,942 15,983,930 19,180,717 23,016,860 27,620,232
Cente money fl oa t 2,762,083 3,314,500 3,977,400 4,772,879 5,727,455
226,136,546 271,363,855 325,636,626 390,763,951 468,916,741
1,766,441,184 2,307,398,611 3,024,400,564 3,976,729,839 5,244,000,446
LIABILITIES
Fi xed depos i ts 107,900,000 129,480,000 155,376,000 186,451,200 223,741,440
Vol unta ry s a vi ngs 591,932,083 769,511,707 1,000,365,219 1,300,474,785 1,690,617,221
Ins ti tuti on/s chool fees a ccount 29,339,084 35,206,901 42,248,281 50,697,937 60,837,525
Group a ccounts 77,296,536 100,485,496 130,631,145 169,820,489 220,766,636
Juni or s a vi ngs a ccount 8,082,066 10,506,686 13,658,692 17,756,299 23,083,189
Joi nt a ccount 6,721,949 8,738,534 11,360,094 14,768,122 19,198,558
821,271,717 1,053,929,324 1,353,639,431 1,739,968,833 2,238,244,569
Liabilities - -
ACCUMULATED DEPRECIATION 23,189,341 23,653,127 24,126,190 24,608,714 25,100,888
tota l wi thhol di ng ta x pa ya bl e 4,520,145 4,746,153 4,983,460 5,232,633 5,494,265
Di vi dends pa ya bl e 5,854,270 6,146,983 6,454,332 6,777,049 7,115,901
Provi s i on for s ta ff gra tui ty 1,416,108 1,486,913 1,561,259 1,639,322 1,721,288
Condol ence contri buti on 4,722,344 4,958,462 5,206,385 5,466,704 5,740,039
Credi tors 4,051,284 4,253,849 4,466,541 4,689,868 4,924,361
Pa ye pa ya bl e 931,712 978,298 1,027,213 1,078,573 1,132,502
Ns s f pa ya bl e 275,887 289,681 304,165 319,373 335,342
Loa n protecti on fund 15,600,407 17,940,468 20,631,538 23,726,268 27,285,209
60,561,497 64,453,933 68,761,082 73,538,505 78,849,795
EQUITIES
Sha re Ca pi ta l 642,302,747 770,763,296 924,915,955 1,109,899,147 1,331,878,976
Sta tutory l ega l res erves 14,844,336 15,586,553 16,365,881 17,184,175 18,043,383
Sha re tra ns fer fund 7,532,191 7,908,800 8,304,240 8,719,452 9,155,425
Ca pi ta l devel opment fund 47,784,112 57,340,934 68,809,121 82,570,945 99,085,134
Educa ti on fund 6,535,443 6,862,215 7,205,326 7,565,592 7,943,872
Revol vi ng fund 7,422,168 8,164,384 8,980,823 9,878,905 10,866,795
Reta i ned ea rni ngs 99,501,213 109,451,335 120,396,468 132,436,115 145,679,727
825,922,209 976,077,518 1,154,977,814 1,368,254,331 1,622,653,312
1,707,755,424 2,094,460,774 2,577,378,328 3,181,761,668 3,939,747,676
Page 56 of 58
9.3 STRATEGIC BUSINESS PLAN REVIEW
The Strategic Business Plan will be reviewed by Sacco Board in consultation with an
external consultant to ensure that it remains relevant, feasible and delivers outputs that
contribute to sustainable development. Annual review will evaluate the year’s activities and
indicate the extent to which the KAMUSIIME SACCO Board has implemented the plan. A
comprehensive review of the strategic plan will be undertaken at the end of the third
financial year. The consultant will also give an independent objective overview and advice
on appropriate action.
9.4 CONCLUSION
The following measures shall be taken for the successful implementation of the plan:
i. The strategic plan implementation progress will be part of the agenda of every Board
and staff meeting.
ii. The strategic plan will be available to every Board member and member of staff for
reference and deeper understanding of what is expected of them.
iii. There will be an official handover of the strategic plan to a new Board of Directors
who will ensure continuity of the plan.
iv. The performance indicators in the implementation matrix will be the monitored
parameter.
v. Finally, the various activities itemized in the action tables should be linked to the
SACCO’s annual budget allocation to avail financial resources necessary to facilitate
implementation.
The Strategic action plans will act as the tools for monitoring the progress of implementing
the Strategic plan. Additionally, the following tasks will be carried out to strengthen the
monitoring and evaluation of the Strategic plan:
i. Each responsible officer will develop a set of performance indicators to be used

for periodic reporting for each output;
ii. Specific issues will be identified and action plans prepared to address any
bottlenecks in the implementation of the strategy; and
iii. The strategy will be translated into performance responsibilities for senior staff
against which their performance will be evaluated.
Page 57 of 58
Adopted by the Board committee as a working document on the

_____day of____________2022 under Minute___________________________of
the Committee meeting.
Signed by;
………………….………. ….……….……………
RUBANZA GEORGE NAMARA Gad
BOARD SECRETARY CHAIRMAN BOARD
Approved by the Annual General Meeting on _______day of

__________2023 under Minute _______________________of the meeting.
………………….……….
RUBANZA GEORGE
BOARD SECRETARY
Page 58 of 58

Business Plan 2022 2026

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KAMU-SACCO STRATEGIC BUSINESS PLAN FOR THE PERIOD 2022 -2026

KAMUSIIMECO-OPERATIVE SAVINGS & CREDIT SOCIETY

STRATEGIC BUSINESS PLAN: 2022–2026

PREPARED BY:BOARD & MANAGEMENT OF KAMUSIIME

KAMUSIIME SACCO operates in a business environment that is undergoing constant change.

1.1 STRATEGIC DIRECTION

1.1.3 Goal 2022 – 2026

KAMUSIIME-SACCO growth strategy will be leveraged on members’ mobilization, products

1.1.4 Core Values

In implementing the strategic plan, KAMUSIIME-SACCOwill be guided by the following core

1.2 CORE OBJECTIVES

1.3 WHY STRATEGIC PLANNING FOR KAMUSIIME’SSACCO

CHAPTER 2: SITUATIONAL ANALYSIS

2.1 AN OVERVIEW OF THE STRATEGIC PLANNING PROCESS

2.1.1 The Strategic Planning Process

Formulation of the KAMUSIIME-SACCO strategic plan took three distinct phases.

2.2 PROFILE OF KAMUSIIME CO-OPERATIVE SAVING AND CREDIT SOCIETY

2.2.1 Historic Background of KAMUSIIME-SACCO

2.2.2 Organizational Structure and Governance

Figure 1: The SACCO governance structure

Annual General Meeting,

Accountant Credit supervisor

Banking Marketing officers Credit Officer

The SACCO draws its membership from area of operations.

Table 2: A summary of KAMUSIIME-SACCO Income growth in the next (5) years

Table 3: A summary of KAMUSIIME-SACCO Expenses in the next (5) years

Year 2022 2023 2024 2025 2026

2.2.6 Loans to Savings Ratio

Year 2022 2023 2024 2025 2026

2.2.8 Types of Loans

TYPE OF LOAN REPAYME INTEREST RATE CONDITIO

CHAPTER 3: AN OVERVIEW OF THE CO-OPERATIVE SECTOR

The post-independence era

3.3 THE BIRTH OF SACCOS

Government of Uganda through Deliberate Interventions by Ministry of Trade, Industry and

3.4 THE PLACE OF SACCOS IN THE FINANCIAL SECTOR IN UGANDA

3.5 CO-OPERATIVE PRINCIPLES

1. Voluntary and Open Membership

2. Democratic Member Control

3. Economic Participation by Members

4. Autonomy and Independence

5. Education, Training and Information

6. Co-operation among Co-operatives

7. Concern for Community in General

CHAPTER 4: ENVIRONMENTAL SCAN/SWOT ANALYSIS

4.2 Weaknesses/ Challenges

TABLE 6: SWOT ANALYSIS

4.5 STAKEHOLDERS’ ANALYSIS

3. Government Ministries, Departments, Agencies and Local Authorities -These are

4. Creditors – suppliers who finance the operations of the SACCO

6. The Private Sector – It is a catchment for recruitment and partnership.

CHAPTER 5: STRATEGIC ACTION PLAN - KEY RESULT AREAS

5.1 HUMAN RESOURCES KEY RESULT AREA (KRA)

5.2 OPERATIONS KEY RESULT AREA

5.3 FINANCE KEY RESULT AREA

5.4 PRODUCTS & SERVICES KEY RESULT AREA

5.5 GOVERNANCE KEY RESULT AREA

5.6 MEMBERSHIP KEY RESULT AREA

CHAPTER 6: STRATEGIC OBJECTIVES