Automation of SACCOs - FSD Kenya

30 • AUTOMATION OF SACCOS: ASSESSMENT OF POTENTIAL SOLUTIONS
the progress at these two SACCOs. As for the remaining vendors, the
project team could only rely on the information provided by them.
Amtech claimed they had connected Chepsol SACCO’s two branches.
Fern claimed to have experience with linking up multiple branches of the
same institution via a low-bandwidth connection. Neptune stated they
had successfully connected five and seven branches of Embu Farmers
and Necco FOSA SACCO, respectively, and Temenos claimed they have
completed multi-branch installations at Faulu Kenya and Kenya Women’s
Finance Trust. However, this information needs to be confirmed.
Cost estimates
To get an understanding of the price levels, the project team had also requested
the vendors to provide a cost estimate for two standard SACCOs. The following
information about the standard SACCOs was shared:
Tea farmers-based SACCO, Kenya Tea Development Agency as sole
employer, 3 branches, 20 system users, 15000 members
Urban SACCO with diverse membership, employees from governmental
and private organisations as well as teachers and traders, 8 branches,
100 system users, 60000 members
Table 6: Cost estimates for tea farmers-based SACCo (KSh)
Craft Silicon Amtech Fintech Fern neptune Temenos
Licence 4,500,000 2,000,000 5,800,000 10,700,000 7,130,000
Implementation 240,000 2,025,000 2,600,000 2-3,000,000 15,300,000
Training 150,000 1,000,000 2,960,000
Annual
maintenance
18% 15% 20% 15% 18%
Total 4,740,000 4,175,000 8,400,000 14-15,000,000 25,390,000
Table 7: Cost estimates urban SACCo (KSh)
Craft Silicon Amtech Fintech Fern neptune Temenos
Licence 12,000,000 2,000,000 12,000,000 20,300,000 26,730,000
Implementation 240,000 3,712,500 3,450,000 1-4,000,000 15,300,000
Training 750,000 3,100,000 2,960,000
The vendors were asked to estimate the total cost broken down into licence,
implementation, training, and annual maintenance cost. Obviously, the
vendors did not have sufficient information to quote an exact price as that
would require a comprehensive case by case study of business requirements
as well as a gap analysis. However, the cost estimates can serve as rough
indication and help to understand in which price category a solution falls. The
quoted prices are each exclusive of tax.
Fern never submitted cost estimates for the two standard SACCOs but proposed
to have a joint automation of Kenyan SACCOs. An enterprise licence to be
shared by all participating SACCOs would amount to US dollar (USD) 250,000.
An individual SACCO would additionally pay USD 2,200 for their server licence
and USD 1,350 per concurrent user licence. Services such as customisation,
implementation, configuration, training, user acceptance testing, etc. would
be charged at between USD 450 and 850 per day plus expenses.
Neptune offered the alternative of an ASP model. The SACCOs would in this
case not incur a licence cost. Instead, they would pay a joining fee of Kshs
350,000, Kshs 1.4 million for the initial deployment, and Kshs 350,000 for
training. This would reduce the initial investment to just above 2 million Kenyan
shilling. Subsequently, the SACCOs would need to pay monthly transaction
Annual maintenance 18% 15% 20% 15% 18%
Total 12,240,000 6,462,500 15,450,000 24-28,000,000 44,990,000