Supply SiDe Survey 2010 - FSD Kenya

FinAcceSS
Supply SiDe Survey 2010
APRiL 2010
FSD Kenya
Financial Sector Deepening

Scientific Coordinator: Massimo Vita; Team Manager: Caterina Giordano; Team Coordinator: Michael
Fabbroni; Analysts: Olivia Muiru & Sylvie Gal.
The report was commissioned by FSD Kenya. The findings, interpretations and conclusions are those of the
authors and do not necessarily represent those of FSD Kenya, its Trustees and partner development agencies.
FSD Kenya
Financial Sector Deepening
The Kenya Financial Sector Deepening (FSD) programme was established in early 2005 to support the development of financial markets
in Kenya as a means to stimulate wealth creation and reduce poverty. Working in partnership with the financial services industry, the
programme’s goal is to expand access to financial services among lower income households and smaller enterprises. It operates as an
independent trust under the supervision of professional trustees, KPMG Kenya, with policy guidance from a Programme Investment
Committee (PIC). In addition to the Government of Kenya, funders include the UK’s Department for International Development (DFID),
the World Bank, the Swedish International Development Agency (SIDA), Agence Française de Développement (AFD) and the Bill and
Melinda Gates Foundation.

Table of Contents
TaBLES & FIGURES - aBBREVIaTIONS ii
EXECUTIVE SUMMaRY iii
Chapter 1
INTRODUCTION 1
1.1 Background and objectives 1
1.2 Structure of the report 1
Chapter 2
METHODOLOGY 2
2.1 Desk analysis and tools review 2
2.2 Implementation of the survey 2
2.3 Data consolidation and analysis 3
2.4 Business service providers’ survey 3
Chapter 3
MaIN RESULTS 4
3.1 Background 4
3.2 Institutional profile 4
3.3 Products offered 5
3.4 Volume of business 5
3.5 Financial information 6
3.6 Ratings 6
3.7 Payment services 6
3.8 Partnerships 7
3.9 Outsourced services 7
3.10 FSD Kenya 8
FINACCESS SUPPLY-SIDE SURVEY 2010 • i
Chapter 4
BUSINESS SERVICE PROVIDERS 9
Chapter 5
RECOMMENDaTIONS 10
5.1 Suggestions and feedback from institutions surveyed 10
5.2 Financial institutions questionnaire 10
5.3 Service providers questionnaire 10
aNNEXES
Annex 1 11
Annex 2 19
Annex 3 23
Annex 4 24

ii • FINACCESS SUPPLY-SIDE SURVEY 2010
Tables and figures
TaBLES
Table 1 Financial institutions by province 4
Table 2 Institutions staff levels 4
Table 3 Institutions sales points 5
Table 4 Institutional portfolios 5
Table 5 Institutions loan portfolio against deposits 6
FIGURES
Figure 1 Financial institutions by province 4
Figure 2 Availability of FOSA service (for SACCOs) 5
Figure 3 Average active loan amount by typology of institution 6
Figure 4 Bank participation in the clearing system 7
Figure 5 Transactions acquired through own merchant network 7
Figure 6 Banks in which institutions deposit their cash 7
Figure 7 Outsourced services as a % of yearly operating expenses 7
Figure 8 Institutions without access to FSD publications 8
Figure 9 Percentage of business volume generated with 9
financial institutions
Figure 10 Initiatives to better understand demand of services 9
from financial institutions
Abbreviations
aMa ASCA management agents
aMFI Association of Microfinance Institutions Kenya
BSP Business Service Providers
CBK Central Bank of Kenya
FOSa Front Office Service Activities
FSD Financial Sector Deepening Kenya
KBa Kenya Bankers’ Association
KUSCCO Kenya Union of Savings and Credit Co-operatives
MFI Microfinance Institutions
SaCCO Savings and Credit Co-operative
TORS Terms of Reference
WOCCU World Council of Credit Unions

eXeCuTive SuMMAry
The FinAccess 2010 State of the Sector Review set out to complete a rapid
assessment of the supply of financial services across Kenya. Between February
and March 2010, over 90 Kenyan financial institutions were interviewed,
alongside 22 business service providers, in order to obtain a broad overview
of the state of the financial sector. The final survey sample consisted of a
representative group of financial institutions (including commercial banks,
microfinance institutions and savings and credit cooperatives) from seven of
the eight provinces of Kenya.
The main results from the survey highlight the concentration of financial
institutions and outsourced services in the Kenyan capital of Nairobi. Even
so, the results also illustrate the relevant number of institutions, and in
particular Savings and Credit Co-operatives (SACCOs), based throughout all
seven of the provinces surveyed. The supply of financial services across the
country is characterized by a limited yet growing product offer. Credit and
savings products are common among most institutions and insurance and
money transfer also seems to be growing in prevalence. Yet the supply of
other financial services (e.g. bill payment, pension processing, etc.) remains
somewhat restricted.
The survey shows that the supply of financial services in Kenya is quite
concentrated, with the top five financial institutions surveyed managing
around half of the aggregate loan portfolio.
Funding sources for Kenya financial institutions vary. Commercial banks rely
primarily on customer deposits and both domestic and international funding.
Microfinance institutions (MFIs) access various local and international,
commercial and soft funding sources, while the majority is not yet regulated
to intermediate client savings. SACCO funding is concentrated in member
savings, with complementary access to commercial funds from Co-operative
Bank and the Kenya Union of Savings and Credit Co-operatives (KUSCCO). Yet,
despite the variety funding sources available to Kenyan financial institutions,
FINACCESS SUPPLY-SIDE SURVEY 2010 • iii
around 13% (from 21% in 2009) of MFIs and 25% (from 33% in 2009) of
SACCO respondents do not have access to commercial funds.
Survey findings related to the payment system show that the majority of
banks directly participate in the clearing system. Card issuance among the
institutions varied according to typology. Only one MFI surveyed offers a card
for service access while over half of SACCOs offer some type of card (a marked
improvement from last year where only a third offered some type of card)
and most of the banks issue various cards to their customers. Cards are most
often branded with Visa, Co-operative Bank or the bank’s own brand. A few
of the surveyed institutions directly acquire transactions through their own
merchant network, using cards branded with Visa and Co-operative Bank.
Partnerships among the surveyed institutions seem to be gaining
importance. Banks provide deposit services to MFIs and SACCOs which in
total use over 30 different banks to deposit their cash. Most of the SACCOs
deposited cash with Co-operative Bank. M-Pesa, Kenswitch and Pesa Point
also are important partners in the sector. A variety of outsourced services
are utilized by all financial institutions, with the banks utilizing the greatest
variety of service providers. Services price was the biggest concern among
survey respondents.
The institutions surveyed indicated that the dissemination of publications
by Financial Sector Deepening (FSD) could be improved, particularly among
institutions outside Nairobi. The 2006 FinAccess Survey Results was the most
widely read publication, with around a quarter of respondents having read
the publication. A majority of respondents having read FSD publications
found them to be important or very important in terms of usefulness. Most
suggested that quicker availability of publications would be beneficial, and
the strengthening of publication distribution channels, particularly outside
Nairobi, seems advisable.

iv • FINACCESS SUPPLY-SIDE SURVEY 2010

Chapter 1
iNTrODuCTiON
1.1 BaCKGROUND aND OBjECTIVES
This survey repeats the baseline supply side study undertaken in 2009. It aims
to complement the FinAccess 2009 demand-side survey. FinAccess seeks to
combine both supply-side and demand-side data to provide a comprehensive
picture of the access to financial services across the country. Specifically, the
FinAccess 2010 supply side survey will help to build a more comprehensive
understanding of the financial landscape in Kenya by gathering data from a
sample of both formal regulated institutions and other types of formal yet
unregulated institutions: commercial banks, MFIs and SACCOs operating
across the country.
Additionally, the 2010 survey exercise was specifically built upon the previous
survey, by maintaining consistency in key questions thus allowing for the
development of time series data and a more dynamic approach in the analysis
of the same. The final goal of the supply-side survey is to provide an overview
of the current state of play of the supply of financial services in Kenya. The data
collected and analysed should help to fill the information gap on the extent
and outreach of financial services in Kenya thus help to build a comprehensive
understanding of the country’s financial industry.
1.2 STRUCTURE OF THE REPORT
FINACCESS SUPPLY-SIDE SURVEY 2010 • 1
This report provides a succinct overview of the FinAccess 2010 supply side
survey findings and follows the structure of the 2009 final report in order
to maintain consistency and allow ready trend comparisons with the 2009
study. Therefore, section 3 gives an overview of the survey methodology and
sampling. Section 4 provides a brief outline of the main findings for each area
of the questionnaire, with key findings highlighted. Within the survey data
a wealth of additional information is available; however, such analysis is not
within the scope of this succinct report. Section 5 summarizes the interview
process for the business service providers and makes a brief analysis of the
findings. Finally, section 6 suggests how the survey could be improved in the
future in order to provide additional insight into the sector.

2 • FINACCESS SUPPLY-SIDE SURVEY 2010
Chapter 2
MeTHODOlOGy
2.1 DESK aNaLYSIS aND TOOLS REVIEW
The survey assignment was carried out between February and March
2010. Phase one comprised of desk review activities, the revision of the
questionnaires and meeting with some of the industry stakeholders. The desk
review analysis of the main publications of the domestic financial sector was
carried out to gain a better understanding of the industry’s existing source of
information, main actors and players, rules and regulations. During the desk
analysis, earlier FinAccess publications were also reviewed to improve the
overall understanding of the survey team. The 2009 survey questionnaire
targeting financial institutions was revised and up-graded to serve for the
2010 exercise. The final version of the 2010 questionnaire comprises of the
following sections:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Background
Institutional profile
Products offered
Volume of business
Financial information
Rating
Payments systems
Partnerships
Outsourced services
FSD Kenya
New questions seeking further insight on key aspects of the financial markets
were added; in particular, section 10, examining the usefulness and outreach of
publications by FSD, was heavily expanded with respect to the previous year. In
section 3, relating to the industry’s product range, two multiple choice question
on the supply of insurance products and sectors of the economy catered with
financial services, were inserted to deepen understanding. In section 2, with
reference to the legal status of MFIs, an option to provide information on
current or planned legal transformation processes was inserted.
At the same time, it was also decided that for the business service providers’
questionnaire, the 2009 version was to be adopted with no further
amendments.
The survey team decided that when dealing with phone-based interviews, the
length of the questionnaire should be kept short with the aim of increasing
the level of participation/responses of the interviewees. As mentioned earlier,
in the initial phase of the assignment meetings were held with some of the
industry most important stakeholders (e.g. KUSCCO, Ministry of Co-operatives,
etc.) and other stakeholders were contacted by telephone/email (e.g. Central
Bank of Kenya (CBK), Kenya Bankers’ Association (KBA), etc.) to gain a better
knowledge on the main financial institutions operating on the domestic
market and to facilitate contacts with financial institutions.
2.2 IMPLEMENTaTION OF THE SURVEY
Phase two of the survey assignment consisted of the sample selection process
and the scheduling and implementation of the interviews’ agenda. Financial
institutions were selected according to the following criteria: legal status and
membership of their respective industry association, size of the institution in
terms of balance sheet/outreach, geographical location of headquarters and
participation to the 2009 edition.
The asset-size criterion allowed for the achievement of a sample of selected
financial services providers that are inclusive of many large institutions as per
the terms of reference (ToRs) of the survey assignment. For each of three main
market segments, banks, MFIs and SACCOs, among the largest and most active
institutions operating in Kenya were selected. The selection process was based
upon publicly available data, i.e., at the CBK and KUSCCO level, and on the data
made available by the 2009 survey edition database.
The geographical criteria allowed for the sample to be as nationallyrepresentative
as possible. However, the geographical criteria reflects the
bias in financial markets that sees the high majority of institutions having
headquarters and main offices in Nairobi. This is especially true for banks and
MFIs. Nevertheless, as a result of the geographical spread of SACCOs, the final
sample included institutions from 7 out of the 8 Kenyan provinces, namely,
Central, Coast, Eastern, Nairobi, Nyanza, Rift Valley and Western.
The 2009 participation criteria allowed the selection of institutions already
familiar with the survey exercise and its tools and it also provided personal
contact details of relevant and available senior management staff. This
facilitated contacts and the scheduling of meetings. Finally, another criterion
that often comes in to play when carrying out research on the ground relates
to access i.e., willingness of selected and contacted financial institution to
participate to the survey exercise and disclose the requested information.
The survey was implemented during a period of six weeks between 3 February
and 12 March 2010. The questionnaire was administered in the form of
face-to-face interviews with key management staff from selected financial
institutions, generally the Managing Director and/or the Finance Manager and/
or the Marketing Manager. In some cases, top management were not available
and meetings were scheduled with alternative management/senior officer
positions. In some cases, due to management unavailability, the questionnaire
was submitted and returned in electronic form by e-mail. Additionally, in quite
a number of cases, information provided during the meeting was insufficient
and scarce, therefore the analysts arranged for the data required to complete
the questionnaire to be forwarded by email at a later stage.

During phase two, the survey team made every effort to establish fruitful
contacts with the institutions and the 2009 database proved very useful in
providing contact details of staff already familiar with the survey exercise
and the institutions involved, including the researcher - MicroFinanza Rating.
However, as often happens when carrying out surveys and field research
activities, some biases encountered during the implementation of the
assignment have limited the scope of the exercise. For instance, not all the
institution surveyed were willing to disclose all the information requested
through the questionnaire, therefore, missing data and unanswered questions
have limited the volume of information collected during the interviews.
Furthermore, not all the data collected was available for the accounting period
for the year ending December 2009. Some of the data provided refers to the
fiscal year ending in December 2008.
Especially among banks, some important financial institutions in terms of
size and/or geographical reach had to be excluded from the survey because of
their refusal to participate to the exercise and because feedback on their side
could not be provided to us within the timeframe allotted for the assignment.
This might also alter the final results of the survey. Finally, it must also be
stated that many answers to the questionnaire are estimates provided by the
respondents and not exact figures coming from audited statements or official
reports released by the institution.
2.3 DaTa CONSOLIDaTION aND aNaLYSIS
As at Friday 19 March 2010, the team of analysts working on the survey
had interviewed and collected data from over 90 financial institutions,
specifically 23 banks, 17 MFIs and 51 SACCOs. The 2009 database was
reviewed and amendments aiming to provide a more efficient analysis tool
were undertaken; this also took into account feedback from last year’s survey
exercise. All available information was then inputted into the database and the
final analysis was then carried out.
FINACCESS SUPPLY-SIDE SURVEY 2010 • 3
2.4 BUSINESS SERVICE PROVIDERS’ SURVEY
As for the 2009 study, a survey focusing on the major business service
providers (BSPs) to the financial system in Kenya was also undertaken in
order to understand domestic demand for outsourced services and the level of
quality of the services received. To this end from a sample of over 40 financial
institutions surveyed during phase two, we selected those BSPs having the
strongest relationships with the financial sector, i.e., those that were most
frequently mentioned by financial institutions in section 9 of the questionnaire.
A spreadsheet showing the number of observations per BSPs was then created
to serve as a main reference tool for the interviewing phase. Interviews and
data collection activities for BSPs were carried out either electronically over
the telephone. We directly contacted over 50 BSPs and the response rate was
relatively high, allowing us to carry out the analysis on 22 questionnaires. A
database along the lines of the one created for the financial institutions was
also produced serving as the main tool for the analysis.

4 • FINACCESS SUPPLY-SIDE SURVEY 2010
Chapter 3
MAiN reSulTS
3.1 BaCKGROUND
For the survey, the total number of institutions interviewed was 91 consisting
of 17 MFIs, 51 SACCOs and 23 commercial banks.
A majority of the institutions are located in Nairobi (54%), especially banks
and MFIs. All the commercial banks are headquartered in the capital city with
most operating in different parts of the country through branch networks and
ATMs. SACCOs, providing the highest number of institutions in the survey due
to a heavy presence in the sector, were selected from seven of the eight most
populous provinces to ensure a fair representation. MFIs formed the smallest
number in the survey. Most have their headquarters located in Nairobi and
operate across the country through a network of branches.
More than half of the banks operate with more than 10 branches within
the country, 40% of MFIs operate more than 10 branches while most of the
SACCOs have fewer than 10 branches preferring to use the employer network
of members to increase accessibility of services. Some of the institutions use
sub-branches and agencies to further increase accessibility to clients. The use
of own branded ATMs has improved with 20% of the institutions operating at
least one ATM compared with the 15% in the previous year.
Benchmark:
staff level
Personnel:
Total number
of staff
members
Table 1: Financial institutions by province
Province SaCCOs MFIs Banks Total Total %
Central 9 1 10 11
Coast 8 1 9 10
Eastern 6 6 7
Nairobi 12 14 23 49 54
Nyanza 8 8 9
Rift Valley 3 3 3
Western 5 1 6 7
Total 51 17 23 91 100
Total % 56 19 25 100
Kenya
Banks
Kenya
SaCCOs
Kenya
MFI*
Kenya
MFI
Table 2: Institutions staff levels
Banks** Credit
Union
Figure 1: Financial institutions by province
3.2 INSTITUTIONaL PROFILE
Most of the institutions were established or incorporated during the 1980s
and 1990s. However, the year of inception varies depending on the type of
institution. MFIs are the newest institutions in the sector with the majority
formed in the past two decades. Banks vary their date of inception over a
wider time period, with the earliest formed in 1910 and the youngest in 1999.
Slightly more than half of the SACCOs were created during the 60s-70s as a
result of strong government support toward the co-operative movement after
independence.
In terms of total staff, most of the SACCOs have staff between 1-120 while
MFIs are concentrated in the 16 to 350 range. Banks have the largest staff sizes
with more than 5 banks reporting a staff size greater than 700, two MFIs are
also observed in this range. Examining the MicroBanking Bulletin Benchmarks
(MBB), the average size of staff members in Kenyan banks, SACCOs and MFIs
are higher when compared to continental levels.
The total number of outlets is concentrated with 83% of institutions having
in the range of 1 to 15 branches and sub branches. SACCOs operating mainly
through the employer networks of their members therefore they do not show
extensive branch networks. These findings are in line with the results of the
2009 survey showing the lack of an intensive expansion strategy by institutions
in the last year, most likely a direct result of the economic slowdown.
NBFI NGO african
medium
FSS
africa
medium
Non FSS
africa
Large
FSS
africa
Large
Non FSS
750 37 155 226 691 24 127 75 105 134 410 484
Source: MBB Benchmarking ratios 2008. Averages for Kenyan institutions based on survey response.
Kenya MFI* excludes KWFT; Bank** excludes Barclays Bank; FSS - Financial Self Sufficiency
25
20
15
10
5
0
Central Coast eastern Nairobi Nyanza rift valley Western
SACCOs MFis Banks

No. of
outlets
(Branch and
sub-branch)
As at now, only one MFI has been granted a deposit-taking licence; however,
quite a high number of MFIs have already filed applications, or are planning to,
with the aim of taking deposits to broaden their source of funds.
3.3 PRODUCTS OFFERED
Table 3: Institutions sales points
Banks MFIs SaCCOs Total
No.
Total %
1-15 15 11 49 75 82%
16-40 2 4 0 6 7%
>40 6 2 2 10 11%
Total No. 23 17 51 91 100%
The primary products offered by financial institutions are credit and savings
services, as permitted by the laws and regulation applying to them. Compared
with other institutions, banks (under the Banking Act) are allowed to offer
the widest array of financial services including deposits, savings and money
transfer etc. Accordingly, the survey results found that banks offer the most
diversified services when compared with other financial institutions in Kenya.
The main area of concentration for banks are individual credit and deposits;
banks have also started offering group credit to tap into the microfinance
sector with a little over 50% of banks now offering it as a core product. The Post
Figure 2: availability of FOSa service (for SaCCOs)
22%
78%
Yes
No
Table 4: Institutional portfolios
FINACCESS SUPPLY-SIDE SURVEY 2010 • 5
Office Savings Bank is the only bank surveyed that does not offer any form of
credit due to the limitations imposed by its governing statute. Money transfer
services is another common core product which banks offer in partnerships
with money transfer companies including Moneygram, Western Union and
Safaricom’s M-Pesa. Insurance is mainly regarded as a secondary product with
the focus on life, credit, housing and auto insurance. Other services offered by
banks include bill payments, pension processing and technical assistance.
The services offered by SACCOs are mainly limited to savings and credit;
however, SACCOs are starting to diversify their services. Front Office Services
Activities (FOSA) are an important channel applied by SACCOs to increase the
availability of services to members. FOSA services enable SACCOs to offer a
wider variety of services to members including demand deposits and a wide
variety of loans.
The number of SACCOs offering FOSA has increased by 7% compared with
last year’s survey. It should be noted that this is not representative of SACCOs
as a whole; the sample of SACCOs is skewed towards the larger ones who are
much more likely to operate FOSAs than the many smaller ones. Credit services
offered by SACCOs are mainly concentrated in individual credit with the group
methodology offered as a core product by only 27% of the SACCOs surveyed.
Other secondary products offered include technical assistance to members,
insurance - mainly restricted to credit insurance - and money transfer services
through partnerships.
MFIs that are not registered as deposit taking by the CBK are limited to
offering credit only and use both individual and group methodologies. MFIs
also provide some technical assistance/training services to clients and some
offered insurance as a secondary product, mainly focused on credit and life
insurance. Some of the MFIs interviewed were in the process of establishing
a partnership with M-Pesa so as to be able to offer money transfer services
to clients.
3.4 VOLUME OF BUSINESS
Volume of business, in terms of aggregate loan size, has increased by about
70% when compared to 2008. Banks still have a higher loan portfolio size
compared to other financial institutions with 89.5% of the total portfolio
consisting of loans issued by banks. The top 2 banks in terms of loan portfolio
Portfolio concentration including banks Portfolio concentration without banks
No. of institutions % of institutions No. of institutions % of institutions
25% of total 1 1% 1 2%
50% of total 2 3% 3 5%
75% of total 7 9% 7 13%
100% of total 76 100% 56 100%

two SACCOs offer credit cards. The increase in card issuance amongst SACCOs
can be linked to the partnership between the SACCOs and Co-operative
Bank’s SACCO link services as well as with Paynet’s Pesapoint ATM services.
Card issuance is limited among MFIs with only one institution providing the
service.
The cards issued by the financial institutions are mainly branded with Visa,
Co-operative Bank and banks’ own brand; only two institutions have cards
branded with MasterCard. 74% of the institutions surveyed utilize the Visa
brand, with the majority being SACCOs (68%). The type of brand used does
vary depending on the typology of the institution. Co-operative brand is
mainly used by SACCOs (62%) while 40% of the banks surveyed brand cards
with their own brand (a decline from 71% noted in the last survey). Some of
the SACCOs (7%) have started using their own brand.
No
NA
Yes
82%
Figure 4: Bank participation in the clearing system
Figure 5: Transactions acquired through own merchant network
0% 10% 20% 30% 40% 50% 60% 70%
Few institutions (17%) acquire transactions through their own merchant
networks. Of those that do, the majority have their cards branded with Visa and
Co-operative Bank. Co-operative Bank was named by most of the institutions,
especially SACCOs, as the channel from where they receive a majority of their
card transactions.
Figure 6: Banks in which institutions deposit their cash
Other banks
Central Bank of Kenya
Standard Chartered
Barclays
Kenya Commercial Bank
Co-operative Bank
18%
Yes
No
0% 10% 20% 30% 40% 50% 60% 70% 80%
FINACCESS SUPPLY-SIDE SURVEY 2010 • 7
Institutions source the cards they issue mainly from De La Rue and Co-operative
Bank. 50% of banks surveyed source from De La Rue while 53% of SACCOs
source from Co-operative Bank which marks a shift from last year where 95%
of the SACCOs sourced cards from Co-operative Bank.
3.8 PaRTNERSHIPS
There are strong partnership links between SACCOs and Co-operative Bank
(66% of SACCOs have partnerships with Co-operative Bank) which provides a
variety of services such as ATM access points, ATM cards, training, funding and
funds transfer. Major partnerships revolve around access to ATM services with
banks and some SACCOs working together with Pesapoint. For MFIs, a majority
of the partnerships are linked to funding. Other interesting partnerships noted
amongst the institutions include insurance products, cash transfer services
through mobile phones, information system set up and as agents of cash
transfer companies (Moneygram and Western Union).
Financial institutions in Kenya deposit cash in a variety of banks - about 31.
Co-operative Bank is used by most of the institutions (70%) with the majority
being SACCOs (77%) given the strong history over the years. It is important
to note however that the number of SACCOs depositing in Co-operative Bank
has declined from 100% noted last year. Due to its statutory role, the CBK has
relationships with all banking institutions; in this regard the institutions that
responded to the questions have deposited more than the minimum statutory
requirements in the CBK.
3.9 OUTSOURCED SERVICES
The most outsourced service is audit (used by 98% of the institutions) with an
average satisfaction level of 4.1 (out of 5). Most of the institutions (47%) use
medium sized audit firms with 5-50 staff members while 41% use big audit
firms with over 50 staff. 60% reported audit fees of less than a million while
40% paid contract fees between 1-10 million. Other commonly outsourced
services include system service providers, training providers, security services
and hardware technology.
Figure 7: Outsourced services as a % of yearly operating expenses
Banks
MFIs
SACCOs
21%
31%
57%
42%
46%
The percentage of outsourced services relatively to operating expenses for most
of the institutions is below 20%. As can be observed from the charts, banks
outsource much more than SACCOs and MFIs. The average cost of outsourced
services is 14.5% of operating expenses. The major complaint relating to the
27%
37%
23%
16%
Less than 10%
11-20%
More than 20%
0% 20% 40% 60% 80% 100% 120%

8 • FINACCESS SUPPLY-SIDE SURVEY 2010
outsourced services was on price (40 of the institutions), 37 reported issues on
quality and 31 expressed a negative opinion on timely delivery of services.
3.10 FSD KENYa
The dissemination of FSD publications is improvable; according to the survey
only 33% of institutions interviewed have received publications from FSD. Of
those who have access to the publication, most (75%) have received FinAccess
in Kenya: results of the 2006 national survey (FinAccess 2006). A majority of
those institutions that have not received FSD material are SACCOs (73%). The
penetration of FSD material is especially improvable in areas outside Nairobi
as the majority (72%) of those with access to the publications are based in
Nairobi.
Most of the respondents found the publications useful with an overall average
score of 3.8 out of 5. Suggestions were mainly linked to the availability of
publications with 62% asking for quicker availability of the publication. Use
of electronic methods to distribute publications was suggested due to easy
availability and ability to convey information to other members of staff.
Figure 8: Institutions without access to FSD publications
MFIs
8%
Banks
19%
SACCOs
73%
With regard to the usefulness of the publications, almost all the institutions
that received publications found them to be useful and up to date with
only one institution rating FSD material as very bad and outdated. The most
common medium through which the institutions have heard of FSD are:
newspapers (29%), conferences and workshops (29%) and the FSD website
(20%). As to the means of receiving the publication, 59% felt the publications
were better sent through email while 16% as printed copies and 15% from
the FSD website.

Chapter 4
BuSiNeSS ServiCe prOviDerS
A specific objective of the survey work was to provide an overview of the
quality and availability of outsourced services to the Kenyan financial sector.
In this regard, the utilization of outsourced services was addressed through
the main questionnaire, (see Annex 1, section 9). A series of interviews 2 with
a sample of BSPs was undertaken concurrently to supplement the information
garnered from the financial institutions. The goal of these interviews was to
assemble information on the type of services currently provided to financial
institutions and attempt to understand what kind of initiatives/information
would help the BSPs to better understand local demand for their services. A
specific questionnaire was drafted for the BSP interviews (see Annex 3).
One or two BSPs were surveyed for each category of provider. A selection was
made to include the more prominent companies acting in the sector, as well as
those service providers which specialize in products and services for financial
institutions. More than half of the BSPs operate in all the eight provinces of
Kenya and are locally owned. The final sample achieved was 22 BSPs (see
Annex 4 – Business service provider’s sample).
Generally, services provided to the financial institutions make up over 50% of
the volume of business for the BSPs surveyed. The average contract size with
the financial sector is a little over Kshs 18 million. Therefore, most of the BSPs
surveyed rely heavily on financial institutions for their revenue. Clearly most
of those surveyed cater mainly to banks; this is in line with findings from the
financial institutions’ survey which showed that banks outsourced the most
among financial institutions.
% of business volume
Figure 9: Percentage of business volume generated with financial
institutions
> 75%
50% - 75%
25% - 50%
10% - 25%
< 10%
0% 5% 10% 15% 20% 25% 30%
Responses from the interviews on the potential for further development of
business with financial institutions include the use of surveys and publications
(81%) and business conferences and forums which 71% felt would be very
useful to increase the working relationships between BSPs and Kenyan
financial institutions.
Both initiatives were considered by respondents as important opportunities
to learn more about the potential demand for their services from financial
institutions and, especially in the case of the business conferences, as a
2 The interviews were completed and returned electronically
FINACCESS SUPPLY-SIDE SURVEY 2010 • 9
concrete chance to network with the representatives of financial institutions
and explore further business opportunities.
Figure 10: Initiatives to better understand demand of services from
financial institutions
Business
conferences and
forums
Surveys and
Publications
Trade Fairs
Directory of Fis
25%
48%
71%
81%
The other initiative which received significant consensus was the development
of a comprehensive directory of financial institutions (banks, MFIs, SACCOs).
In particular, given the scarcity of up-to-date SACCO listings and the resulting
difficulties in contacting them, the necessity of a directory comprising at least
the major SACCOs seems indeed a priority. 40% of the BSPs surveyed have
received at least one publication from FSD.
55%
38%
Very Useful Moderately useful Not useful
29%
19%
20%
14%

10 • FINACCESS SUPPLY-SIDE SURVEY 2010
Chapter 5
reCOMMeNDATiONS
5.1 SUGGESTIONS aND FEEDBaCK FROM INSTITUTIONS
SURVEYED
Most interviewees expressed an interest in having access to the final results
of this survey. This is true for SACCOs, MFIs and banks and it was a common
feedback that the analysts of the survey team received during meetings with
senior management.
We believe it is fair for participant to receive preferential access to the final
results, in recognition of their contribution to the study. Additionally, it would
also facilitate contacts and increase the participation rate of future editions of
the survey. For MFIs, banks and large SACCOs, the above would just require,
upon publication of the FinAccess 2010 final report, an e-mail alert to be sent
to those institutions who actually participated to the exercise. The database
provides with a specific section summarizing contact details for surveyed
institutions. In the alert e-mail, the above publication could be presented by
inserting a short executive summary and a direct link to the FSD website page
hosting the study.
However, quite a number of participating SACCOs, especially those based
outside the Nairobi area, do not always have an efficient/regular access to
internet connections and facilities. Therefore, a possible solution to overcome
the lack of regular internet connections throughout the country, would be to
provide KUSCCO regional offices with some hard copies of the final publication
for distribution to participating SACCOs.
Some challenges were encountered in gaining the participation of the
banking industry in the study. Although contact details gathered from
the 2009 database facilitated some contacts, a number of banks required
up to 10 e-mails and/or up to 10/15 telephone calls prior to agreeing to a
meeting or arranging to send outstanding information back to the analyst.
There are reasons behind this access problem which consumed considerable
time in the implementation of the survey. We think that, the CBK should be
formally involved in the next survey given its usefulness in generating and
disseminating information within the sector.
Another valuable feedback from this round is that for many institutions the
February/March period is the time for official auditing and finalization of yearend
financial statements. A number of institutions therefore preferred not to
disclose unofficial data and provided information referring to the previous
fiscal year. Depending on FSD’s needs and internal agenda, we would suggest
postponing the next survey in order to access more up to date information.
Some ideas for improvement arise from the administration of the questionnaire
during the meetings and from the data inputting phase. The following
suggestions try to simplify the questionnaire format and ease the survey
exercise.
5.2 FINaNCIaL INSTITUTIONS qUESTIONNaIRE
1.
2.
With reference to question 5.3, the minimum interest rate and the
maximum interest rate columns should be merged into one single
average interest rate column. This would put the survey responder in an
easier position, allowing for a faster estimation of data, without reducing
the quality of information.
With regard to question 4.2, we have noticed that many survey
respondents use the same data source as a proxy for total active
borrowers, also for question 4.1, total number of loan accounts, and
for question 5.1 when requesting total number of outstanding loans.
Although, technically the above mentioned indicators carry different
meaning, in practical terms they tend to provide a similar piece of
information. For the purpose of a national survey, we find this redundant
and time-consuming; therefore question 4.2 should be erased without
any loss of information.
5.3 SERVICE PROVIDERS qUESTIONNaIRE
1.
2.
3.
4.
With regard to question 2.3, a chart should be inserted providing
multiple answers listing the 8 provinces of the country. With only the
number of provinces geo-analysis for BSPs is not possible.
Question 3.1 provides a blank table, divided into columns and rows,
with no specification or indication of how the information on the service
provided to financial institutions should be inserted and the details
sought. It should be improved to support easier and more accurate
completion by respondents.
With respect to question 3.2, a box should be inserted, listing the three
main financial groupings, i.e., MFI, bank and SACCO, to understand
which service are provided to which sort of institution.
With reference to question 3.5, based on this year contract size responses
and intervals of contracts sizes should be provided as multiple choice
answers. This form of data would facilitate analysis.

ANNeX 1: FiNANCiAl iNSTiTuTiONS
QueSTiONNAire
1. BaCKGROUND
1.1 Name of the institution
1.2 Contact details
1.3 Date of starting operations
1.4 Date of interview
1.5 Name of the respondent
1.6 Position of the respondent
1.7 Last available financial data as at (if possible December 2009)
2. INSTITUTIONaL PROFILE
2.1 Type of institution (sign the correspondent box)
Bank SaCCO MFI
2.2 Availability of FOSA services (for SACCOs)
Yes No
2.3 Number of access points (Attach full list of the locations of access
points)
Full branches
Sub branches
Agencies
Own branded ATMs
2.4 Number of staff
Overall
Headquarters
Loan Officers
Please, specify your current legal form:
If you are currently in the process of
transforming your legal status please specify
which legal form are you trying to acquire:
MFI DTM (National)
MFI DTM (Community)
If it is your plan to transform when do you
anticipate completing your transformation?
3. PRODUCTS OFFERED
FINACCESS SUPPLY-SIDE SURVEY 2010 • 11
3.1 What type of products and services does your institution offer?
(Please tick the appropriate box below)
Type of services Core business Secondary business
Individual credit
Group Credit
Deposits
Insurance
Pension
Bill payment
Money transfer
Technical Assistance
Other (specify)
3.2 With reference to insurance-related services, please specify which
products does your institution offer? (Please tick the appropriate box
below)
Type of product
Health insurance
Life insurance
Credit insurance
Livestock insurance
House insurance
Auto insurance
Weather index insurance
Price index insurance
If Other (please specify)
..............................
3.3 Please specify to which sectors of the economy your institutions
channels its credit portfolio:
Sector (Tick accordingly)
Trade
Services
Manufacturing
Agriculture
Consumer
Housing

12 • FINACCESS SUPPLY-SIDE SURVEY 2010
3.4 Please specify to which sectors of the economy your institutions
channels its credit portfolio:
4. VOLUME OF BUSINESS
4.1 Please indicate the volume of business your institution did over the
year 2009 (Jan - Dec)
Type N° of a/C (as
at 31/12/09
Individual
deposit
accounts
Business
deposit
accounts
Individual
loan
accounts
Business
loan
accounts
4.2 What is the total number of active borrowers as at the year end (31st
Dec 2009)?
Total Active Borrowers
4.3 Where you use group lending please specify the number of groups and
the number of total members in group methodology:
4.4 How many debit or credit cards have you issued?
%
amount of
a/C (KShs)
(as at
31/12/09)
N° of
Transactions
Number of groups Number of total members
in group methodology
Type Total in
circulation
Debit cards
Credit cards
Number
issued in
2009
N° of
new a/C
Total transactions
in 2009
5. FINaNCIaL INFORMaTION
Please provide the most recently available financial information.
All data should relate to the same period.
5.1 Please provide the following data.
Total assets
Gross portfolio
Number of outstanding loans:
Net profit before tax in last 12
months
PAR >30 days (%)
As at (please specify date)?
5.2 What proportion of your commercial debt funding is domestic and
international:
Domestic %
International %
5.3 Please list your major sources of funding, and the interest rate range
applicable
Funding source
(Institution’s
name and
amount)
5.4 Provide following information about equity
Total value of equity (KShs)
Domestic/
International
(D/I)
N° of shareholders (members for SACCOs)
Maximum
interest rate
5.5 Are you listed on the Nairobi Stock Exchange?
If so what proportion of your equity capital is publicly held?
%
Minimum
interest rate

5.6 Shareholders holding more than 5% of institution’s capital
Name of
shareholders
*Please classify as follows:
Individual investor
For-profit investment institution
Development Fund/Foundation (eg. AfriCap, Triodos)
Development finance institution (eg. KfW, IFC)
Financial institutions
NGO (eg. ECLOF)
6. RaTING
6.1 Have you ever been rated?
Yes No
Shareholder
Classification*
6.2 When was the last rating? Month and year.
Month Year
6.3 Who conducted the last rating?
Proportion
shares held
6.4 Which was the institutional rating assigned?
Foreign/
domestic
7. PaYMENTS SYSTEM
FINACCESS SUPPLY-SIDE SURVEY 2010 • 13
7.1 Do you participate directly in the clearing system?
Yes No
7.2 What type cards do you issue (if any – please tick below):
Debit card usable in merchant
outlets
Bank card to access services
ATM card
Credit card
7.3 Are any of your cards branded with:
VISA
MasterCard
Other brand (eg: Co-op) (specify)
Own brand
7.4 Do you acquire transactions through your own merchant network?
Yes No
7.5 If yes to 7.4, for which type of cards:
VISA
MasterCard
Other brand (eg: Co-op) (specify)
Own brand
7.6 Do you have access to other ATMs and/or allow others to use your
ATMs?
Yes No
If so in which networks do you participate?
Visa
Kenswitch
Paynet’s Pesapoint
Co-operative Bank’s SACCO Link
Other (please specify)
__________________

14 • FINACCESS SUPPLY-SIDE SURVEY 2010
7.7 Through what channel are the majority of transactions acquired on
cards you issue?
Barclays
KCB
Other (please specify)
__________________
7.8 Where do you source the cards you issue?
7.9 Do you use a mobile phone based delivery channel?
Yes No
7.10 If yes, which system do you use?
M-PESA
ZAP
Own system
Other – please specify
7.11 How many of your clients use your mobile phone-based services (if
applicable)?
Total number of clients subscribing
to mobile-based services
7.12 Do you offer internet banking?
Yes No
8. PaRTNERSHIP
8.1 Please list any major partnership with other financial institutions or
providers, eg: Co operative Bank, Paynet? Specify what services you
receive from each of these partners. (Services include ATM providers,
Card issuers, Payments clearance).
Partner Name Service 1 Service 2
9. OUTSOURCED SERVICES
9.1 In which banks do you deposit your cash.
9.2 What is the estimated size of the auditing firm you use? (please tick
below).
N° of staff < 5
N° of staff 5-50
N° of staff > 50
9.3 What is the size of the contract with the auditing firm? (please tick
below).
< 1 million KShs
1 – 10 million KShs
> 10 million KShs
9.4 Does the auditing firm conduct a check on the level of transparency
and financial disclosure of information of your institution? (please tick
accordingly).
Yes No

9.5 Outsourced services
Outsourced services Mark with ‘X’ if use now Mark with ‘X’ if plan to
use
Auditors
Market researchers
Marketing consultants
Advertising agencies
Design and printing
Media
Management consultants
Financial analysts
Training service providers
Financial Education training services
Colleges/educational establishments
Human resource advisory services
Recruitment consultants
Information system integrators/
consultants
Software system providers
Hardware technology providers
Communication providers
Credit reference bureaus
Rating agencies
Debt collection agencies
Telephone customer services
Cash transfer services
Building/premises support services
Security services
Automated teller machine (ATM)
services
Product development
Process re-engineering/mapping
FINACCESS SUPPLY-SIDE SURVEY 2010 • 15
Name of main service
provider(s)
Level of satisfaction
(scale 1 to 5, 1 low, 5
high)

16 • FINACCESS SUPPLY-SIDE SURVEY 2010
9.6 What proportion (%) of your operating costs do you estimate relate to
the outsourced services specified above?
%
9.7 What are your major complaints in relation to the outsourcing of
services? (please tick accordingly).
Price
Quality of the service
Ability to deliver on time
Other (please specify)
__________________
10.2 Have you received or read any of these publications (published by FSD
Kenya)?
10. FSD KENYa
10.1 Have you ever heard of FSD Kenya?
Yes No
If ‘YES’ can you indicate briefly what you understand to be FSD Kenya’s
purpose?
How relevant do you see FSD Kenya’s work to your own organisation?
Very
Important
Important Quite
important
Not very
important
Entirely
irrelevant
How relevant do you see FSD Kenya’s work to the financial sector in Kenya?
Very
Important
Publication name Tick if received Tick if printed
copy?
Financial access in Kenya: Results of the 2006 national survey
(FinAccess 2006)
FinAccess 2009 survey results
Financial inclusion in Kenya: an analysis of financial service use
Understanding the banking sector in Kenya: Strengthening information
and analysis
The Potential for credit scoring for SME lending in Kenya
SME risk capital funds: Constraints to institutional investors
Procurement and supply in Kenya: The market for SMEs
Capacity constraints facing risk fund managers
SME trade finance: Review of facilities available in Kenya
Costs of collateral in Kenya: Opportunities for reform
Important Quite
important
Tick if by e-mail/
download
Not very
important
Entirely
irrelevant
Level of satisfaction
(scale 1 to 5, 1 =
not useful, 5 = very
important)

Publication name Tick if received Tick if printed
copy?
Credit reporting: What does it mean for me?
MicroSave project completion report
The role of financial services in the economic empowerment of AIDSaffected
households
CBK survey on bank charges and lending rates (quarterly)
Kenya’s payment market: Identifying an enabling environment for G2P
transfers
Sending money home? UK to Kenya
Financial education in Kenya: Scoping exercise report
Financial education in Kenya: Towards a national strategy
Definition of a standard measure for consumer interest rates in Kenya:
A scoping study
What makes a successful mobile money implementation: M-PESA in
Kenya and Tanzania
Quarterly newsletters
FSD Kenya Updates
FSD Annual report 2007
FSD Annual report 2008
FSD Kenya briefing note
Other
(please specify): _____________________________
10.3 What suggestions would you like to see in order to improve the
usefulness of these publications to you? (please tick ALL appropriate
below).
Shorter
More in-depth material
Clearer less technical writing style
Quicker availability
More data
Other (please specify)
__________________
FINACCESS SUPPLY-SIDE SURVEY 2010 • 17
Tick if by e-mail/
download
Level of satisfaction
(scale 1 to 5, 1 =
not useful, 5 = very
important)
10.4 What sort of research, analysis or technical work relating to the
industry would you encourage FSD Kenya to take on in the future?
10.5 Overall how would you rate the usefulness of FSD Kenya’s publications
to you in your work?
Very good Good Fair Poor Very poor

18 • FINACCESS SUPPLY-SIDE SURVEY 2010
10.6 How would you rate FSD Kenya’s publications’ subject matter in terms
of currency to the financial sector in Kenya?
Very
updated
Updated Fairly
updated
Outdated Very
outdated
10.7 Where else have you may have come across mentions of FSD’s work or
organisation?
FSD’s website (www.fsdkenya.org)
Other websites
Newspapers
Television
Radio
Workshops/conferences
Other (please specify)
__________________
10.8 What do you feel would be the best ways to receive material on FSD’s
research and analysis? Please rate in order of preference (1st, 2nd, 3rd,
etc) or indicate if you are not interested in receiving material from FSD.
FSD’s website (www.fsdkenya.org)
E-mail
Printed publications
Workshops/conferences
Meetings with FSD technical staff or
consultants
Other (please specify)
__________________
Not interested in FSD’s material
Why do you prefer to receive material in the way specified as your first choice
(if applicable)?
10.9 When you are looking for research, analysis or technical material
to support your work how do you currently go about it? (Please tick as
appropriate).
Search the web
Engage consultants/service providers
Look for relevant publications
Attend relevant workshops/conferences
Other (please specify)
__________________
Don’t usually need such material

ANNeX 2: SuMMAry OF FiNANCiAl
iNSTiTuTiONS reSpONDiNG
Institutions and branches
Institutions No. of observations Total no. of
branches
Banks 23 768
MFIs 17 445
SACCOs 50 133
Total 90 1346
Name of the institution Type of institution Net result in past 12 months
(at December 2009)
FINACCESS SUPPLY-SIDE SURVEY 2010 • 19
Total equity (KSH)
Barclays Bank 9,000,000,000 24,000,000,000
Kenya Commercial Bank Bank 6,400,000,000 22,000,000,000
Equity Bank Bank 5,570,000,000 23,338,000,000
National Bank Bank 1,800,000,000 6,200,000,000
Citibank Bank 1,800,000,000 4,580,000,000
I&M Bank Bank 1,700,000,000 7,400,000,000
Commercial Bank of Africa Bank 1,693,975,000 4,948,695,000
Standard Chartered Bank 1,200,000,000
Bank of Baroda Bank 731,879,000 989,717,000
Imperial bank Bank 673,000,000 1,900,000,000
Prime Bank Bank 515,968,000 3,000,000,000
Housing Finance Bank 353,000,000 1,150,000,000
Family Bank Bank 338,434,173 1,891,002,546
Chase Bank (Kenya) Ltd Bank 200,000,000 1,000,000,000
African Banking Corporation Bank 174,000,000 1,100,000,000
Consolidated Bank Bank 84,928,000 845,692,000
Fina Bank Bank 23,112,000 1,201,161,000
K-Rep Bank Bank -472,420 1,100,000,000
City Finance Bank Ltd Bank -5,400,000 316,000,000
Southern Credit Bank -150,000,000 350,000,000
Post Office Savings Bank Bank -614,866,173 1,399,566,460
NIC Bank Bank 7,200,000,000
Guardian Bank Bank
Institutions and financial statements

20 • FINACCESS SUPPLY-SIDE SURVEY 2010
Name of the institution Type of institution Net result in past 12 months
(at December 2009)
Total equity (KSH)
KWFT MFI 544,787,625 1,793,964,398
Pamoja Women Development MFI 32,749,395 76,645,842
MESPT MFI 30,000,000
SISDO MFI 23,000,000 48,000,000
Kenya Eclof MFI 19,889,891 170,849,378
SMEP MFI 15,600,000 248,917,660
Molyn Credit Limited MFI 6,000,000 20,000,000
BIMAS MFI 6,000,000
Kadet ltd MFI 5,900,000 450,000,000
Adok Timo MFI 2,369,279 9,754,000
Yehu Microfinance Trust MFI 1,495,407 70,842,994
Jitegemea Credit Scheme MFI 1,302,300 27,707,986
MicroAfrica Limited MFI -8,922,376 330,160,670
Jamii Bora Trust MFI -58,000,000 200,000,000
Faulu MFI -72,000,000 649,000,000
FMFA Kenya Ltd MFI
Kenya Enterpreneurship
Empowerment Foundation
MFI
Mwalimu SACCO society SACCO 1,500,000,000 1,800,000,000
Ukulima SACCO SACCO 461,761,017 2,926,770,841
UN SACCO SACCO 422,000,000 3,200,000,000
Kenya Bankers SACCO SACCO 310,000,000 78,000,000
Gusii Mwalimu SACCO SACCO 254,000,000 2,209,414,697
Kipsigis Teachers SACCO SACCO 200,000,000 49,000,000
Kakamega Teachers SACCO SACCO 192,488,367 1,858,685,619
Nyeri Teachers SACCO SACCO 181,000,000 1,030,000,000
Murang'a Teachers SACCO SACCO 143,000,000 15,300,000
Balozi SACCO SACCO 90,000,000 900,000,000
Nyati SACCO SACCO 57,979,234 40,000,936
Egerton University SACCO SACCO 55,323,504 609,055,832
Mombasa port SACCO SACCO 47,025,263 334,713,391

Name of the institution Type of institution Net result in past 12 months
(at December 2009)
FINACCESS SUPPLY-SIDE SURVEY 2010 • 21
Total equity (KSH)
Embu Farmers SACCO Society SACCO 36,000,000 115,000,000
Taifa SACCO SACCO 27,200,000 67,800,000
Kilifi Teachers SACCO SACCO 24,000,000 798,000,000
Bandari SACCO SACCO 24,000,000 1,200,000,000
Baringo teachers SACCO society Ltd SACCO 23,828,964 182,546,957
2NK SACCO SACCO 20,000,000 150,000,000
Taita Taveta Teachers Savings &
Credit Society
SACCO 17,520,099 9,235,000
Mombasa teachers sacco SACCO 13,339,552 337,940,084
NCC SACCO SACCO 13,000,000 5,000,000
Nairobi Hospital SACCO SACCO 10,705,126
Githunguri Dairy & Community
SACCO
SACCO 10,000,000 172,000,000
Universal traders sacco SACCO 8,000,000 78,000,000
Wakenya Pamoja SACCO SACCO 7,000,000 745,000,000
Kisumu Teachers SACCO SACCO 6,051,176 535,404,598
Ndege Chai sacco SACCO 6,000,000 852,326,000
Irianyi Tea SACCO Ltd SACCO 5,839,000 17,223,000
Chai SACCO SACCO 4,815,699 132,279,469
Finnlem SACCO Society SACCO 2,154,265 360,345,430
Moko rural SACCO society SACCO 1,600,000 5,000,000
EMBU teachers SACCO SACCO 1,500,000 6,000,000
Postbank SACCO SACCO 939,928 207,701,965
Biashara SACCO SACCO 884,427
Bukhungu SACCO SACCO 800,000 15,000,000
PCEA SACCO SACCO 362,860 83,365,336
Kakamega Entrepreneur SACCO SACCO 216,995 8,200,000
Oceanfreighters SACCO SACCO 93,359 773,475
Cristian Community Service SACCO
Ltd
SACCO 11,781 8,147,317
Lareco SACCO Society SACCO -30,473 50,000
Telepost SACCO SACCO -4,500,000 14,000,000,000

22 • FINACCESS SUPPLY-SIDE SURVEY 2010
Name of the institution Type of institution Net result in past 12 months
(at December 2009)
Total equity (KSH)
Cent SACCO ltd SACCO -8,600,000 19,800,000
Kwale Teachers SACCO SACCO
KMFRI SACCO SACCO
Mathira Farmers SACCO SACCO
Sukari SACCO SACCO
Muramati SACCO Society SACCO
Mungania SACCO SACCO 106,000,000
Masaku Teachers sacco SACCO 17,000,000
Maseno University SACCO SACCO

ANNeX 3: BuSiNeSS ServiCe prOviDerS
QueSTiONNAire
1. BaCKGROUND
1.1 Name of institution:
1.2 Contact information (address, telephone, e-mail):
1.3 Name of respondent:
1.4 Position of respondent:
2. INSTITUTIONaL PROFILE
2.1 Are you a local company or an affiliate / subsidiary of an international
firm?
2.2 How many staff do you presently have?
2.3 In how many provinces of Kenya did you work during 2009?
3. TYPE OF BUSINESS aND CURRENT RELaTIONSHIPS
WITH THE FINaNCIaL SECTOR
3.1 Briefly describe the type of services you provide. (Please specify which
is the core business)
(Core business)
3.2 Which one of the services previously mentioned did you provide to
banks, MFIs or SACCOs during 2009?
FINACCESS SUPPLY-SIDE SURVEY 2010 • 23
3.3 List the main financial institutions (banks, MFIs, SACCOs) you worked
with in 2009:
Name of the institution Legal form
3.4 What percentage of your total business volume was generated through
contracts with financial institutions in 2009? (Sign with an X the
correspondent box)
1. < 10%
2. Between 10% and 25%
3. Between 25% and 50%
4. Between 50% and 75%
5. > 75%
3.5 What was the average size of the contracts with financial institutions
(in KShs)?
4. TYPE OF BUSINESS aND CURRENT RELaTIONSHIPS
WITH THE FINaNCIaL SECTOR
4.1 Which of the following initiatives would be useful to better understand
the demand for your services from financial institutions?
Initiative Very Moderately Not
1. Comprehensive directory of
financial institutions
2. Trade fairs
3. Surveys and publications
4. Business forums and
conferences
5. Other (please specify)
4.2 Have you ever received or read any publications from FSD Kenya? If yes
which ones?

24 • FINACCESS SUPPLY-SIDE SURVEY 2010
ANNeX 4: BuSiNeSS ServiCe prOviDerS
reSpONDiNG
INTERVIEWED BUSINESS SERVICE PROVIDERS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
ACNielsen Kenya Ltd
MicroSave
Marketing Strategies & Solutions
Synergy Management Consultants (SEMC)
Adept Systems
Kul Graphics Ltd
Kenya Bankers Association
Kenya Union of Savings and Credit Co-operatives (KUSCCO)
Amtech Technologies Limited
Afsat Communications Kenya
Metropol East Africa
Bob Morgan Security Services Ltd
Credit Reference Bureau Africa (Group) Ltd
Kenswitch Ltd
Paynet (Kenya) Ltd
Royal Media Services
Craft Silicon Ltd
Wells Fargo
PKFEA
Infotrack East Africa Ltd
Hill and Knowlton East Africa
Comsoft Solutions Limited

FSD Kenya
Financial Sector Deepening
info@fsdkenya.org • www.fsdkenya.org
FSD Kenya is an independent Trust established to support the development of inclusive financial markets in Kenya
4th Floor Kenya Re Towers • Off Ragati Road, Upper Hill • P.O. Box 11353, 00100 Nairobi, Kenya
T +254 (20) 2718809, 2718814 • M +254 (724) 319706, (735) 319706