© 2 0 0 6 K i m i s i t u C o o p e r a t i v e a n d S ... - Kimisitu Sacco

shouldguideourdecisionsandactions: Integrity 5.0CoreValuesInanefforttoaccomplishthismission,KIMISITUshouldembracethefollowingcorevaluesthatRespect EqualityEquity Honesty Professionalism Dedication Toattainareturnonmembers’depositsof10%bytheyear2010. 6.0StrategicObjectivesToattain40%annualgrowthonturnoverfromthecurrentKsh.22milliontoKsh.85millionyear2008. Todevelop5newproductsorrepackageexistingonesbytheyear2010. Todevelopatleast65%ofstaffintofullprofessionalsbytheyear2010. TohaveafullyintegratedInformationandCommunicationsTechnology(ICT)systembythe theyear2007. Tominimizethedefaultratefromthecurrent1.6%tolessthan1%ofoutstandingloansby7.0 KeyExternalFactorslikelytoaffectachievementoftheObjectives Todevelop,documentandensurecompliancetooperationalpoliciesbytheyear2007.objectivesrely,inpart,onpredictionsandprobabilitiesoftheoutcomesofcertainevents.These dependonavarietyoffactors,someofwhicharebeyondthecontroloftheKimisitu.Successwill dependontheKimisitu’sabilitytocontrolthosefactorsthatarewithinitspowerandtowisely TheKimisituStrategicPlanisbasedonanenvironmentalassessment.Strategiestoachievegoalsandmanagearoundthosethatarenot.Theseexternalfactorsinclude:-Bureaucracyandcorruption. Changesingovernmentpolicies.Forexample,theMinistryofCooperativeschangingtheBy-Laws. Politicalinstabilitycancausememberorganizationtoleavethecountryormoretocomein.HIV/AIDSaffectsand/orinfectsmembersandtheirfamiliesleadingtolesssavingsorlossof CompetitionwithotherSACCOsandsimilarinstitutions. Inflation:HighinflationmeansmemberssavelesswiththeSACCO. Taxation:Highertaxationleadstolesssavingbymembersandlessdividendpayout.Thedynamicimprovementintechnologywillaffecttheservicedeliveryandefficiencyofthe Religionswhichdonotpermitmemberstopayinterest. Risingpovertylevelsmayaffectourmembers’abilitytosave. AvailabilityofstandardizedSACCOsoftwarewhichcapturestheSACCO’sneeds.KIMISITU Strategic Plan 2006-2010members.SACCO.5

anynegativeeffects. 8.0WaysinwhichKimisituwillovercomethesefactorsWorkcloselywiththegovernmentofficialssoastogetintelligencewhichcanhelpuscounterSyndicationwithotherorganizationslikeKUSCCOthroughthecentralfinance. LobbyingwiththegovernmentthroughnationalbodieslikeKUSCCO. Aggressivemarketingtocountercompetition Developproductrangewhichmemberscanafforddespitehighinflationandcompetition. LobbyingwiththegovernmentthroughnationalbodieslikeKUSCCO.SensitizemembersonwealthcreationthroughtheSACCO. SensitizationofmembersonthepreventingandlivingpositivelywithHIV/AIDS.Developaproducttocovermembersfromreligionswhichdonotpermitmemberstopay interest. CapacitybuildingofSACCOemployeesintheICTarea. Buysoftwarefromreputabledealers.StrategicPriorities 1. Developanddocumentoperationalpolicies 2. Marketresearchandproductdevelopment 3. Marketingplanandrecruitmentofnewmembers 9.0ICTdevelopment 5. Costbenefitanalysisofacquiringabuilding 6. Investmentdiversification 4.OperationalStrategies 10.0CooperationbetweencooperativeslikeWOCCU,IFC,etc. 2. Visibleevidenceandimpactofourcooperativeworkthroughtheprintmedialikelocal dailiesandcooperativejournal.Wehavetobemarketaggressivethroughbrandingofour products,shorterloans. 1.Improveonriskmanagement. 4. NegotiatewithourbankersonanATMwherebyamembercangetanemergencyloan throughthebank. 5. AppointacontactpersonfromeachorganizationwhoisnotamemberoftheManagementor 3.SupervisoryCommitteetoactasaninterfacebetweenmembersandKIMISITUSacco.FundingStrategies 1. Sellingsharestomembers. 2. Borrowingfromexternalsources 11.0KIMISITU Strategic Plan 2006-2010 6Businessinvestmentse.g.buyingplots,subdividingandsellingoff. 9. UnittrustssuchasZimele,Britak,OldMutual,etc. 8.Interestincomefromloans. 4. Investmentincome. 5. OfferingFOSAservicesthroughtheup-comingFOSAplansthroughKUSCCO. 6. Offeringadvisoryservicesatafeee.g.ZimeleSACCO. 3.Rentalincomethroughownershipofourownbuilding 7.

ANNEXES Strategies Timeline 13.0Togainandretainnew membersintoKimisitu— 1100to5000overthenext Objective 1. Sustainedmarketing/develop amarketingprogram. 2. Improvecustomercare ActionThru’repackagedproducts 4. 1.up the band of Education Committee membership & Chairman 2. Todevelopsevennewor fiveyears. 1. Carryoutamarketsurveyof Credit 3.repackageproducts OpenAnnex1:ResponsibilitiesandTimelinescoops 2. Developproductsforhigh savers 3. EstablishaFOSA currentmembers&otherDevelopproductstoassist membersininvestment 3. AttainaturnoverofKshs60 MillionfromcurrentKshs161. Acquirebldginprimearea, forHQ&rentalincome 2. 4.3. Encouragememberstotake loans 4. Chargehigherinterestrateson Diversifyinvestmentportfolio4. Increasesharecapitalfrom 180toKshs600Million 1. Encouragemobilization of savings 2. Increasetheminimumshare contribution premiumproductsAcquireownofficepremises byyear2007 1. Throughalongtermloan 2. Formacompanytomanage thebldg. 6. 5.5Millionfrom currentK KSHS1.7Millionby2010 1. Borrow fundsfrom other institution and loan to membersathighinterestrates IncreaseloanceilingtoKSHSAgradualincreaseinloan ceiling 3. Increasetheloanrepayment period 2.TobefullyintegratedinICT by2006 1. Riskmanagementsystemsin place 7.& Treasurer CommitteeManagement Committee CentralCommittee CentralExecutiveCredit CommitteeManagementCommittee ExecutiveKIMISITU Strategic Plan 2006-2010system software&hardware81. Upgradedsoftwaretotrack loanschedule Committee lessthan1percentagepoint8. TomaintaindefaultratetoDevelop integrated LAN 3. Acquirestateoftheart 4. 2.2. Educatingmembers Credit Developawebsite

Strategies Timeline Financialadvisoryservices 4. Forumswithemployers 9. Toacquireand/orretain Objective Actionhuman resourcesbyJanuary2006. 1. Developmanualtodocument proceduresandregulations forstaffing3.Competitive terms conditionsofservice 3. Performance based good Executive quality Committee 2.Appropriatetraining 4. managementClearlydefinetherolesofthe committees and SACCO managementby2006 1. Developaclearorganization chart 2. Developwrittenpoliciesand procedures 3. Clearlyspelloutmandates10.Annex2:StrategicPlanningProcess:Descriptionofstrategicplanningprocessused-whowasinvolved, numberofmeetings,majorlessonslearnedtoimproveplanningnexttime andethicsforeachcommitteeProcess Datemembers. AGMdate DateoftheChairman'sE-mailtocommitteeChairperson ViceChairman TheideaisthenpresentedtothejointCommittees. Theideaispresentedtothemembers IdeaofcomingupwithastrategicplanisconceivedbyAconsultantisappointedtocarryouttheexercise Aninitialprogramisdrawnup Firstworkshopisheld OptionsforcarryingouttheexerciseisarrivedatThedraftisfurtherrevised TheplanisacceptedbytheExecutiveCommittee FirstdraftoftheplanispresentedtothecommitteeImplementationCommences PlanisadoptedbytheMembersduringAGMKIMISITU Strategic Plan 2006-2010 9

Annex3:SWOTAnalysis-OpportunitiesandThreatsEnvironment SpecificFactorslikelytoimpactonoperations Opportunity Threat Political 1. PoliticalstabilityinKenyaandtheregioncreate moreopportunities 2. ExternalleadtobirthofnewNGO’newmembers 3. Hightaxationpolicyathreattogrowthof KIMISITU PoliticalinstabilitywithrespecttoconflictmayIndemnityclauseandwealthdeclarationgood formembersbadforcommitteeasgood committeemembersmaynotcomeup 4.Liberalizationofthemarketoffersawider opportunity 6. Unpredictabletraderegulationswillinfluence e.g.governmentdecisiontoborrowfromthe 5.7. Socialwelfarenotfavourablee.g.NSHIFBill likelytoreducesavings 8. Politicalpronouncementswithcostimplications 9. MembershipinKUSCOisanopportunity localmarket,thushighratesinbanks1. Wastenotproperlydisposedleadingtodiseases, moreexpenseonmedicationasopposedto saving 2. Rationing of electricity likely to lead Naturaltimelybasis 3. Rationingisanopportunityforintroductionofa newproducte.g.aproductforbuyinggenerators 4. Deforestationleadingtoscarceresources,dueto organizationsnotdelivertheircommitmentonthenspecificorganizationslikelytoincreasestaff X Economic 1. Highbankinterestrates 2. GNPgrowthanopportunity 3. Highinflationratescauseslowermembership increasedawarenessofaddressinggreenissues,4. Highunemployment,lessdisposableincomeand contributionandhighdefaulting5. Poorinvestmentclimateleadstoretrenchment, leadingtonosavings&defaulting 6. Intensecompetitionfromotherswhohavenot beentraditionallybeeninthisfield AIDSwipingoutpeopleCorruption respective member 7.XXX XXXXXKIMISITU Strategic Plan 2006-2010companies/firmsaffectsmemberscontributions Contractual and LegalIssues: 1. Shorttermemploymentcontractscausingpeople notgetintomembershipandKIMISITUnotfeel secure CommissionerofCooperativessweepingpowers.10X X SACCO,employershavetoremitmembershipCooperativeActhassomeloopholes,whichgive 3. Favourablelegislationencouragegrowthof 2.

Environment SpecificFactorslikelytoimpactonoperations Opportunity Threat contributions 4. RequirementtocomplywithregulationsofMFI ExternalFOSA 5. PassingtheNSHIFact,burdenforpayingfor medicalandtimespentonthesame 6. Twothirdsrequirementsleadstomanyloan actwillhaveanegativeimpactinopeninga7. Womenarebettersavers,livelongerthereisa needforspecializedproducts defaultersEmploymentlawallowsfirmstolayofstaffat will,whichhasanegativeimpact Information, Communicationand 8. 1. Bettercommunication/marketingtool 2. Liberalizationleadingtobetterservices 3. Improvedservicedelivery 4. Useofwebsitetodisseminateinformation 5. Rapidchangesintechnology 6. Opensaroomforbigtimefraud/disaster management Technology1. Specializedcaseswhereindividualsdonotwish topayloanswithintereste.g.Muslimcommunity 2. Noincomebalancebetweentherichandthepoor SocialCulturalRapidanduncontrolledpopulationgrowth 4. Lifestyle,attitudes,consumerism leadingto youngpeoplenotconsideringsavingsin5. 3.negative 6. DiseasesincludingAids&malariahasanegative impact 7. Specialproductstoaddresstheneedsofthe Traditionalattitudeoncooperativeshasbeen8. Literacylevelishighhencesupportingcoop 9. Socialmobilityisnowstabilized,possibilityof youthretainingmembersforalongtime.XXXXX XXXXXKIMISITU Strategic Plan 2006-2010 11

Annex4:SWOTAnalysis-StrengthsandWeaknessesEnvironment InternalFactor ProductsorServices 1. Repaymentperiodforthedevelopmentloantoo shorthencediscouragingpeoplefromborrowing 2. Internal3. Servicesnotgivenasandwhenrequired-timely4. Serviceprovisiontomembersispoor-customer care LimitedproductrangeVarietyofproducts-needtoaddmoreproducts 6. Developmentloansmakeoneloyaltothe SACCO. 5.Dividendratescouldbelowerthanthe competition Systems and Procedures 1. Longprocessingperiodforemergencyloans 2. Inadequate procurement proceduresdocumentation-GX7.Human resources/Financial/admin/-not documented 4. Qualitycontrolprocedureslacking 5. Bylawsassistinguidingoperations X 3. 1. Newoffices,goodspace,accessibletomembers 2. Newcomputerandofficeequipment-additional? 3. Donothaveourownbuilding PhysicalResourcesThereisnocompanyvehicle,motorcycle, 5. SmartSaccoandQuickboXs:needtomaximize usage 6. Thereisnointegratedcomputersoftware 7. 4.communication,publicity HumanResources- Knowledge,people skills 1. Hardworkingstaff/skilled/professional: 2. Officeunderstaffedhencenotmeetingdeadlines 3. Retentionofstaffislow:termsofemployment Thereisnointernetaccess:email,website,Deadlinesnotbeingmetduetoqualityofwork wanting 5. UnclearHRpoliciesandstructures 4.Knowledgeupgrade/peopleskills/training 7. JobDescriptionsandSpecifications Financial 1. Checkoffsystemensuresbettercollection 2. Noloanbacklog/soundcapitalbase 3. Memberswellpaidhencehighercontributions 6.Lownonperformingloans 4.XStrength WeaknessXXXXXIdlecashthatisnotutilized 6. Consistentdividendpayout 7. Defaulters(poorrecordmanagement) 8. Creditmanagementsystemneedsbeestablished 9. HaveaccesstoexternalcashsuchasKSHS100 5.KIMISITU Strategic PlanMillioncoopbank8%-needstobeenhanced 10.2006-2010X12X membersregister Auditissues:-caponexpenses,updating

Environment InternalFactor Structure-Reporting lines,Committees, Management 1. Weakinternalcontrols 2. Noclearreportingstructure/line/fromcommittee Internal3. Committeeroles/micromanagedbycommittee 4. Staffhavetoomanybosses/patronage 5. Committeesmandatesnotclearlyspeltouttostaff vice tosecretariat/authoritylevelsnotclearlyspeltoutand Publicity (Education) 1. Researchtoknowthemembersideas 2. Feedbackmechanismonloanrepaymentsplan lacking MarketingEducationdaywheremembersareenlightenedenhance4. Useenvironmentalsensitizationasastrategyfor publicityandawareness 5. 3.6. Publicizingprogramstonon-membersaswell CorporateCulture 1. Soundjudgment/nonfullparticipationindecision making 2. Membersarecommitted:peopleskillsrequired NocommunicationmediasuchasbrochuresetcSometimesareprimandingtone 4. Diversity: representing diverse member organization 3.Openness:constructiveway. 6. Unityofpurpose/samelanguage/lackofcollective responsibility 7. Riskaverse- 8. 5.ofcommittees Runningofmeetingsandoutcomes/constitutionStrength WeaknessX X XX X XKIMISITU Strategic Plan 2006-2010 13

thestrategicgoals.Budgetsforeachyearofthetermofthestrategicplan Annex5:BudgetPlanning-resourcesandfundingneededtoobtainandusetheresourcesneededtoachieveBUDGETFORTHEYEAR2006-20102007 BUDGET 2008 BUDGET 2009 BUDGET 2010 INCOME KIMISITUSACCOLIMITED KSH KSH KSH KSHMEMBER’S LOANS 28,931,000 37,610,000 48,893,000 63,561,000 85,807,000 INTERESTFROMBANKDEPOSITS 190,000 144,000 187,000 243,000 316,000 KSH45,000 60,000 78,000 101,000 132,000 TOTALINCOME 29,166,000 37,814,000 49,158,000 63,905,000 86,255,000 EXPENDITURE OTHERINCOME510,000 743,000 966,000 1,256,000 1,632,000 AUDITFEE 130,000 170,000 221,000 287,000 374,000 SUPERVISIONFEE 13,000 17,000 22,000 29,000 BANKCHARGES 88,000 114,000 149,000 193,000 251,000SITTINGAGMEXPENSES563,000 654,000 850,000 1,105,000 1,437,000 COMMITTEEEXPENSES 262,000 292,000 380,000 493,000 642,000 COMMITTEETRAINING 400,000 676,000 879,000 1,142,000 1,485,000 COMMITTEETRAVEL 387,000 453,000 589,000 766,000 995,000 ALLOWANCE270,000 281,000 365,000 475,000 617,000 DONATIONS 55,000 60,000 78,000 101,000 132,000 E-MAILEXPENSE 90,000 135,700 176,000 229,000 298,000 DEPRECIATIONON MEMBER’S DEPOSITS 18,691,000 24,298,000 31,587,000 41,063,000 55,436,000 LEGALFEE 50,000 100,000 130,000 169,000 220,000 REPAIRS&MAINTENANCE 254,000 MEMBERS’EDUCATION 400,000 676,000 879,000 1,142,000 1,485,000 INTEREST540,000 587,000 763,000 992,000 1,290,000 PRINTING&STATIONERY 85,000 195,000 254,000 330,000 428,000 ADVERTISING,MARKETING & PUBLICITY 200,000 150,000 195,000 254,000 330,000 STAFFSALARIES&WAGES 2,729,000 3,014,000 3,918,000 5,094,000 6,622,000 OFFICERENT502,000 603,000 784,000 1,019,000 1,325,000 STAFFMEDICAL 300,000 400,000 520,000 676,000 879,000 STAFFGRATUITY181,000 271,500 353,000 459,000 596,000 STAFFTRAVEL 175,000 227,500 296,000 384,000 500,000 SOFTWAREARMOTISATION 62,500 263,000 342,000 445,000 579,000 TELEPHONE&POSTAGE 93,500 150,500 196,000 254,000 331,000 COOPERATIVEANNUALEVENTS 110,000 185,800 242,000 314,000 408,000 STAFFTRAININGKIMISITU Strategic Plan 2006-2010GENERALOFFICEEXPENSES 75,000 136,000 177,000 230,000 299,00014180,000 100,000 130,000 169,000 220,000 TOTALEXPENDITURE 27,233,000 35,148,000 45,695,000 59,400,000 79,276,000 FIDELITYINSURANCE1,933,000 2,666,000 3,463,000 4,505,000 6,979,000 SURPLUS(DEFICIT)

Annex6:StakeholderMappingLevelofInterestin theCoop Amountofpowerheld intheCoop Nameofstakeholder InterestintheCoop Low High Low High KimisituCooperative:StakeholderAnalysisandMapping(Maintainandsafeguard theirinterest) Save Takealoan Getdividends X Commissioner for Members Maintain coop ImplementingCoop Act X KenyaRevenueAuthority Taxcollection X X cooperativesX Debtors (Members Organization, members loans) - CreditorsAccountable and responsible General Public (Mwananchi, sick, disadvantaged) Socialresponsibility Goodforbusiness X JointCommitteeEmployment Salaries X Insurance(CIC) Premiums Accuracyinreporting X X EmployeesXBankingservices X X X FinanciersKUSCOthe interestofSACCO'S ChampionstandardsKIMISITU Strategic Plan 2006-2010 15

Annex7:MemberOrganizationsasat1stApril,2006FULLNAME 1 IDRC InternationalDevelopmentResearchCentre 2 ICRAF InternationalCentreForResearchinAgroforestry INSTITUTIONAERC AfricanEconomicResearchConsortium 4 FordFound FordFoundation 5 ATPS AfricanTechnologyPolicyStudies 3FTC FeedTheChildren 6SAHC SouthAfricanHighCommission 8 KIMISITU KIMISITU 9 AWF AfricanWildlifeFoundation 7FAWE ForumforAfricanWomenEducationalist 11 IEA InstituteofEconomicAffairs 12 R.FOUNDATION RockefellerFoundation 10CHMP CentralHumanitaireMedico-Phamaceutique 13IUCN TheWorldConservationUnion 15 ACTS AfricanCentreforTechnologyStudies 16 WWF WorldWideFundforNature 14 GoalKenya 17 GOAL GoalSouthSudan 18 VESTERGAARD VestergaardFrandsenCDTF CommunityDevelopmentTrustFund 19GTZ GedellschaftFurTechnischeZusammenarbeit 21 ICEG InternationalCentreforEconomicGrowth 22 CGD/ICG CentreforGovernanceDevelopment 20EASTAFRICA/S&L EastAfricaSupply&Logistics 23KIMISITU Strategic Plan 2006-201024 RESOURCEPROJECT ResourceProjectofKenya 25 SAMARITANSPUR SamaritansPurse16JICA JapanInternationalCooperationAgency 27 JETRO JapanExternalTradeOrganization 28 RATN RegionalAidsTrainingNetwork 26

WINROCK WinrockInternational 30 CBM ChristoffelBlindenmission 31 ETC ETCEastAfrica 29BTA BiotechnolgyTrustAfrica 33 ATFE AmboseliTrustForElephants 34 IOM InternationalOrganizationforMigration 32WORLDVISION WorldVisionInternational 35MAJINAUFANISI MajiNaUfanisi 37 LILYOFTHEVALLEY LillyofTheValleySchool 38 FPIA FamilyPlanningInternationalAssistance 36IIRR 40 PACT InternationalInstituteofRuralReconstruction 41 IFRC InternationalFederationRedCross 39P.I.S.P PastoralistIntegratedSupportProgramme 42PFP PartnersForProgress 44 MALTESER MalteserGermany 45 ACDIVOCA AcdiVoca 43COOPI CooerazioneInternationale 47 SDT SudanDevelopmentTrust 48 MSFHOLLAND MedecinsSansFrontieres 46JBIC JapanBankforInternationalCooperation 49MSFFRANCE 51 MSFSPAIN MedecinsSansFrontieres-Spain 52 MSFSWISS MedecinsSansFrontieres-SWISS 50ABANTU ABANTUfordevelopment 53KIMISITU Strategic Plan 2006-2010 17

Annex8:CommitteeMembersandStaffasat1stApril,2006Position Organization KennedyAuka Hon.Chairman ATPS CollinsOdongo Hon.ViceChair GOALKENYA NameHon.TreasurerElizabethKariuki Hon.Secretary ICRAF JamesWagura Chair,CreditCommittee IDRC FlorenceOile Secretary,Creditcommittee IUCN FlorenceWaiyakiMember,Creditcommittee RATN JaneroseMwangi Secretary,EducationCommittee MSFFRANCE LabanMusundiMember,Educationcommittee IOM PatrickNabiswa Chair,SupervisoryCommittee ICRAF JohnsonBor Secretary,SupervisoryCommittee RockefellerFoundation GeorgeWachiuri Member,SupervisoryCommittee UNICEF SamOmolloManagerAlexMarige AccountantCatherineAchieng LoansOfficerNancyMugoh LoansClerkPaulOnyangoOfficeAssistant KIMISITU LilianNyanchamaAnnex9:CommunicationofPlanACTION MEANS Beforethedraftstrategicplanisaapproveditwillbe distributedtoallmembers -Email -PostMail -Handdelivery DATE-Specialgeneralmeetingtodiscussandapprove thedraftStrategicPlan AfterapprovaltheFinalStrategicPlandocumentwillbe-PinnedontheNoticeBoard1.Softcopieswillbesentby: 2.Hardcopieswillbeprintedanddistributedby: -Email -PostedonKIMISITUwebsite communicatedby:-Handdelivery -PinnedontheNoticeBoard -KIMISITUNewsletter -PostalMailKIMISITU Strategic Plan 2006-2010 18

Annex10:SuggestedformatforperformancereportingOutcomeforobjective1–Annualgrowthof8%p.a. PlannedandActualAchievementsduringFY1atOutcomeLevelPlannedachievementforFY1 Achievementstodate: 1. InvestmentPortfolio 2. MembersLoans 3. MembersDeposit PerformanceindicatorsProducts a. SpecialDev b. 4.Ref d. Education e. Emergency f. Savings c.Higherinterestpremium Products 6.Incomegeneratingservices 5.Performanceindicators PlannedachievementforFY1 Achievementstodate: 1. MarketingofProducts Outcomeforobjective2–AnnualGrowthonMembersDepositof2%p.a.Advisoryservices 3. Investmentcompany generatingincome 2.Outcomeforobjective3–OneNew/repackagedproductp.a.PlannedachievementforFY1 Achievementstodate: 1. Marketsurveyofproducts 2. EncourageMembers participationand PerformanceindicatorsFeedbackKIMISITU Strategic Plan 2006-2010fromresearchbytheoffice193. Productsandservices

Performanceindicators PlannedachievementforFY1 Achievementstodate: 1. Workingandprocedures Outcomeforobjective4–Enhancingprofessionaloutlookofstaffatleastonep.a.2. Policiesthatensuresmooth runningoforganisation 3. Reviewoftermsand manuals4. Introduceperformancebased management conditionsofservicesFacilitatetrainingandcapacity building Outcomeforobjective5–BetterOfficesystemsp.a. 5.PlannedachievementforFY1 Achievementstodate: 1. FullyfunctionalLAN 2. WelldevelopedWebsite 3. Systemsrunningonfully Performanceindicators4. Developriskmanagement system licensedSoftwarePerformanceindicators PlannedachievementforFY1 Achievementstodate: 1. ReworkontheLoan Outcomeforobjective6–Minimizedefaulteachyear.tightenlooseends 2. Applytherulesand regulationstotheletter 3. Acquirebetterappraisal policywithaviewto4. Developcontactpersons froreportingandtracing skillsandmethodsPerformanceindicators PlannedachievementforFY1 Achievementstodate: Outcomeforobjective7–PrepareandreviewOperationalPolicies.KIMISITU Strategic Plan 2006-2010functions chart20Spelloutmandatesand 2. Indicatereportinglines 3. DevelopOrganisational 1.

For Each OutputNo.1–InvestmentPortfolio PlannedandActualProgressduringFY1atOutputLevelExpectedresultforlifeofstrategic plan PerformanceindicatorsProgresstodatebyperformanceindicatorsandactivities:PlannedprogressduringFY1Result: Assumption RiskIndicators StatusofRiskduringreportingperiod ReportonRisk(RequiredAnnually)MitigationActivities,ifrequired:Performanceindicators Expectedresultforlifeofstrategic cplan OutputNo.2–MembersLoansProgresstodatebyperformanceindicatorsandactivities:PlannedprogressduringFY1KIMISITU Strategic Plan 2006-2010 21

Result: Assumption RiskIndicators StatusofRiskduringreportingperiod ReportonRisk(RequiredAnnually)MitigationActivities,ifrequired:Performanceindicators Expectedresultforlifeofstrategic cplan OutputNo.3–MembersDepositsProgresstodatebyperformanceindicatorsandactivities:PlannedprogressduringFY1Result: Assumption RiskIndicators StatusofRiskduringreportingperiod ReportonRisk(RequiredAnnually)MitigationActivities,ifrequired:KIMISITU Strategic Plan 2006-2010 22

Performanceindicators Expectedresultforlifeofstrategic cplan OutputNo.4–ProductsProgresstodatebyperformanceindicatorsandactivities:PlannedprogressduringFY1Result: Assumption RiskIndicators StatusofRiskduringreportingperiod ReportonRisk(RequiredAnnually)MitigationActivities,ifrequired:Performanceindicators Expectedresultforlifeofstrategic cplan OutputNo.5–HigherInterestPremiumProductsProgresstodatebyperformanceindicatorsandactivities:PlannedprogressduringFY1KIMISITU Strategic Plan 2006-2010 23

Result: Assumption RiskIndicators StatusofRiskduringreportingperiod ReportonRisk(RequiredAnnually)MitigationActivities,ifrequired:Performanceindicators Expectedresultforlifeofstrategic cplan OutputNo.6–IncomeGeneratingServicesProgresstodatebyperformanceindicatorsandactivities:PlannedprogressduringFY1Result: Assumption RiskIndicators StatusofRiskduringreportingperiod ReportonRisk(RequiredAnnually)MitigationActivities,ifrequired:KIMISITU Strategic Plan 2006-2010 24

Annex11:TheResults-OrientedLogicalFramework----Growthinmembersdeposit Productsspread,diversityand Growthinmembersloans EnhancedInvestmentportfolioASSUMPTION/RISKINDICATORSKimisituoritsmembers. Therewouldbesufficientfundstocarryoutnot onlythenormalbusinessofKimisitutohavea Noadverseeventsarelikelytoimpactonsurplustoprovideseedmoneyfornewproducts- IncomegeneratingservicesGoal (Objective) Impact PerformanceIndicators Assumptions–RiskIndicators Annualgrowthon Membersdepositof Business Contributetowardsgrowth ofmembersdepositof10% p.a. -MarketingofProducts -ProvisionofAdvisoryservices -FormationofInvestmentcompany toimplementinvestmentplan Economicgrowth 2%Outcomes(Didweachieve theStatedgoal)? PerformanceIndicators ShowbelowifweachievedornotAssumptions–RiskIndicators Developstrategies towardsgrowthof PurposeGoal (Objective) Impact PerformanceIndicators Assumptions–RiskIndicators Anewor membersdepositperannum Increaseproductmixon offerbytheSocietyor enhancetheappealand -Carryoutamarketsurvey -Encouragememberparticipation inprovidinginformationon Thattheproductsandserviceswouldbewhat thememberswant repackagedProductSUMMARY EXPECTEDRESULTS PERFORMANCE MEASUREMENT Goal (Objective) Impact PerformanceIndicators Assumptions–RiskIndicators NARRATIVE8%p.a. Towardstheattainmentof Growthof40%inthenext5 years AnnualGrowthofo SpecialDev Development growthooooo-Education Savings HigherInterestpremium Emergency Refinanceandservices Thattheproductsandservicessointroduced wouldhaveafastuptakeandsizableyieldPurpose Outcomes(Didweachieve theStatedgoal)? PerformanceIndicators ShowbelowifweachievedornotAssumptions–RiskIndicators productsSustainedgrowthoftheSacco•KIMISITU Strategic Plan 2006-2010marketabilityofexisting products products -Productresearchbytheoffice yieldingresults Purpose Outcomes(Didweachieve theStatedgoal)? PerformanceIndicators ShowbelowifweachievedornotAssumptions–RiskIndicators25

Annex12:BudgetbyActivityEstimatedBudgetinKshs Output/Activity Number (WBS#) Output/ActivityTitle Year 1 Year 2 3 Year 4 Year 5 YearandQuartersDiversifiedinvestmentportfolio 1.4 DevelopPremiumProducts 2.1 MarketingofProducts 2.2 FormationofAdvisoryservices 1.1Marketsurvey 4.1 ManualsDevelopment 4.4 HiringHRConsultanttodevelopPerformancebased 3.14.5 Training 5.1 DevelopingaLAN 5.2 Licensedsoftware 5.3 system6.3 AcquisitionofFinancialadvisoryservices 7.6 DevelopingMarketingstrategy WebsitedevelopmentKIMISITU Strategic Plan 2006-2010 26