Governance

Harambee DT SACCO Society Ltd is governed by the constitution of Kenya; Acts of Parliament and the rules and regulations made therein; the SACCO By-laws and the policies of the SACCO.

The highest decision-making organ of the SACCO is the Annual Delegates Meeting (ADM) which elects eleven (11) officials from amongst the delegates to sit in the board as directors and an oversight (Supervisory) Committee of three (3) members. The board is the governing body of the SACCO and includes the Chairman, Vice chairman, Treasurer and Honorary Secretary who are elected by the board from amongst the members of the board. Members of the board hold office for a period of three (3) years with one-third of the board members retiring every year but are eligible for re-election.

The Board operates through specialized sub-committees responsible for various society activities as under:-

The Credit Committee

The Credit Committee consists of members appointed from the board and have a responsibility of reviewing and overseeing the overall lending policy of the society including to:

      1. Review and oversee the overall lending policy of the Sacco
      2. Review lending by the management so that it is consistent with the relevant provisions of the regulations and By-laws including a periodic sampling of processed loan applications to satisfy itself that management is adhering to the lending policies of the Sacco
      3. Ensure that there are effective procedures and resources to identify and manage irregular problem credits, minimize credit loss and maximize recoveries
      4. Ensure adequate provisions for potential loss is maintained
      5. Direct, monitor, review and consider all issues that may materially impact on the present and future quality of the institution’s credit risk management
      6. Review periodic credit and loan portfolio reports of the Sacco Society before submission to the board
      7. Ensure that “Loan Applications Register” is maintained and that the loan cheques schedule is prepared
      8. Delegate and review lending limits to the sanctioning arms of the institution
      9. Assist the board with discharging its responsibility to review the quality of the Sacco’s loan portfolio and ensuring adequate provisions for bad and doubtful debts in compliance with requirements of the prudential guidelines
      10. Ensure that the credit policy and risk lending limits are review

The Education and Governance Committee

The Education and Governance Committee is responsible for carrying out the role of providing education to members, staff, management and the board as well as ensuring the Sacco is governed in accordance with its code of corporate governance and all other relevant guidelines.

Co-operative Education and Training Tasks

    • Identification and determination of education needs to the members, the Board, employees and of the potential members, in the principles and techniques of cooperativeness, both economic and democratic.
    • Evaluating training activities
    • To create good relations between the Board, staff, members, other Co-operative suppliers, business and public at large for increased for increased productivity of the Sacco
    • To arrange for education and tours in liaison with other members of the board
    • To advise the Board and members in general on matters within their jurisdiction, such as in event of any changes in the policies and legislation
    • Ensuring that adequate funds have been allocated and properly utilized for education purposes
    • To represent the Sacco in other bodies carrying educational functions

The Governance Tasks

    • To review annually, for board approval, a Board Charter and manual outlining the policies and procedures by which the board shall operate, and the terms of reference for the Board, the Chairman and the Board Committees
    • To determine the performance measures to be deployed in assessing the performance of the business, the Chief Executive Officer, Chairman, Individual Directors and the board as a collective entity.
    • To recommend to the board and implement each year, an appropriate evaluation process for the Board, the Chair, Individual Board members and the Chief Executive Officer
    • To develop recommendations regarding the essential and desired experiences, skills and competencies for Board members of the Sacco.
    • To review, monitor and make recommendations regarding the induction and development of new board members
    • To lead annual performance review for the Chief Executive Officer and his direct reports
    • To receive annual declarations on the fit and proper criteria for onward transmission to SASRA
    • To recommend to the board the selection and appointment of the Chief Executive Officer
    • At the request of the board, undertake such other corporate governance initiatives as may be necessary or desirable.
    • To supervise and monitor any ethical and compliance concerns or potential breaches that are reported.
    • To investigate all allegations of violations of the Sacco’s code of conduct by Directors and to recommend appropriate sanctions to the Board.

Finance and Administration Committee

Finance and Administration Committee duties are to:-

      • Review and make recommendations to the board on the financial plans of the Sacco and ensure their adequacy and soundness in providing for the Sacco Society current operations and long term stability.
      • Review, discuss and make recommendations to the board concerning significant financial planning, management and reporting issues of the Sacco society

Audit and Risk Committee

    1. The audit and risk committee duties and responsibilities include;-
      • Ensuring that internal controls are established and effectively maintained to achieve a sacco society’s financial reporting objectives
      • Reviewing internal controls including the scope of the internal audit program, the internal audit findings, and recommend action to be taken by management
      • Reviewing internal audit reports and their overall effectiveness, the scope and depth of audit coverage, reports on internal control and any recommendations and confirm the appropriate action has been taken
      • Ensuring that accounting records and financial reports are promptly prepared to accurately reflect operations and results
      • Reviewing the coordination between the internal and external audit functions as well as monitor the external auditor’s independence and objectivity taking into considerations relevant professional and regulatory requirements
      • Reviewing with the external auditors the scope of their annual audit plan, systems of internal audit reports, assistance given by management to the auditors and any findings and actions taken, and recommend the auditors remuneration to the board
      • Reviewing management reports and reports from the internal and external auditors concerning deviations and weaknesses in accounting and operational controls
      • Reviewing the Sacco Society’s internal audit plan, with specific reference to the procedures for identifying regulatory risks and controlling their impacts on the Sacco Society, including receiving correspondence from the authority and the responses from management.
      • Monitoring the ethical conduct of the Sacco Society and considering the development of ethical standards and requirements, including effectiveness of procedures for handling and reporting complaints
      • Reviewing any related party transactions that may arise within the Sacco Society
      • Ensuring that relevant plans, policies and control procedures are established and properly administered
      • Ensuring that policies and control procedures are sufficient to safeguard against error, carelessness, conflict of interest, self-dealing and fraud.
      • Investigating members complaints
      • Considering any matter of significance raised at the Annual General Meeting
      • The audit committee shall report to the board on measures taken to implement recommendations and corrections of findings reported
      • Ensuring establishment and review of the internal control system
      • Review performance and findings of the internal auditor and recommend remedial actions regularly and at least once in every three months
      • Recommending three names of external auditors and the remuneration to the board

Supervisory Committee

The Supervisory Committee consists of three members who must not be employees of the Society or serving on the Management Committee or any other Committee of the Society.

The Supervisory Committee is responsible for the Society’s compliance and internal control and oversight. It is also responsible for the truth and accuracy of the Society’s financial condition, and for making sure that the Society’s administrative practices and procedures are adequate to safeguard the members’ and the Society’s rights and interest.

The supervisory committee counter checks the effectiveness of the society’s internal controls through:-

      • Verification of all transactions of the SACCO Society
      • Writing periodic reports to be tabled at board meetings
      • Presenting its reports to the Delegates during the ADM
      • Submission of its reports to the commissioner
      • Checking minutes of General meeting, Board of Directors and delegates meetings for policy matters following the stated objectives
      • Ensuring the proper interpretation of loan policies, by-laws, Co-operative Societies Act and Rules, Annual General Meeting resolutions, policies of the board, and their implementation
      • Following the laid down procedures and protocol by asking the Chief Executive Officer to avail to them the various books, records and any information they may require
      • Analysing expenses of the Sacco in relation to the budget and give their cost effectiveness and sustainability to the management committee

Scroll to Top