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NEWSLETTER OF THE 2NK SACCO SOCIETY LIMITED SEPTEMBER 2015
Improving Member Incomes
with Road Safety Campaigns
2 Transport World
Transport World 3
CHAIRMAN’S MESSAGE
MISSION STATEMENT: ―TO IM-
PROVE THE LIVELIHOOD OF OUR
MEMBERS BY PROVIDING EXCEL-
LENT SERVICES.‖
VISION STATEMENT: “TO BE THE
LEADING TRANSPORT AND FINANCIAL
SERVICES PROVIDER IN KENYA.”
Branch Network Will Enlarge Sacco Base
BY JAMES KAHIRO
O ne of the most im-
portant achievements
for our Sacco, as we celebrate
our accomplishments in the
past two years, is that 2NK
Sacco now has its own front
office savings activity, popu-
larly known as FOSA. The
FOSA opened up to the pub-
lic in February 2014. This
followed the licensing of the
Sacco by SASRA, the regula-
tor for deposit taking Saccos.
The licensing itself was a ma-
jor achievement for the Sac-
co, as we are the first
transport Sacco to be regis-
tered as such.
And members of the public
have also continued support-
ing the Sacco, a gesture that
the Sacco wholeheartedly ap-
preciates. We pledge to con-
tinue offering them excellent
services.
We are in deed, happy that
we are already offering a
wide range of products which
target all levels of the com-
munity, including develop-
ment loans and insurance pre-
mium financing among a host
of other products.
The Sacco, in its growth plan,
hopes to embrace branch net-
work, as entrenched in its 5
year strategic plan. This will
enable us to serve our cus-
tomers better, while also en-
larging our customer base.
God bless you all!
FOSA Products Asset finance
Fixed deposit account
School fees loan
Group accounts
Individual account
2NK little angels sav-
ings accounts
4 Transport World
cial vehicles doing night trav-
el as well as they also were a
contributor to these accidents.
CHIEF EXECUTIVE OFFICER’S MESSAGE
Transport World is published by Investment News
P. O. Box 20257 –00100, Nairobi, Tel: 0773 –991820
on behalf of 2NK Sacco Society Limited
EDITORIAL AND DESIGN: Nairobi Editing and Pub-
lishing Services.
‘ We Remain Preferred Choice’ It has been close to 2 years
since the last edition of our
magazine.
And it has not been an easy
walk. But we can truly say
God has been faithful this far.
What with all the new regu-
latory requirements, in April
2014, when all vehicles were
required to be fitted with
new, much more expensive
speed governor, amid the
confusion of just a few ac-
credited fitters and a scarce
supply. This caused a lot of
inconveniences to investors,
who were subjected to long
periods of waiting, losing a
lot of business as the vehicles
were not allowed on the road
in spite of having functioning,
previously fitted speed gover-
nors.
A ban on night travel did not
help the situation, with the
effects being felt again by the
investors. In as much as 2NK
Sacco is always at the fore-
front when it comes to com-
pliance matters, coupled with
our determination to reduce
road carnage, which was the
main reason why the govern-
ment banned night travel,
there was need to also address
the issue of heavy commer-
A ban on importation of low
capacity vehicles was also a
major drawback particularly
for the better part of the year
2014, but we thank the presi-
dent for having come to our
aid at the end of 2014, lifting
the ban on importation.
On a positive note, the Sacco
has continued making positive
strides in line with its vision,
“To be the leading transport
and financial services provid-
er in Kenya.”After the lifting
of the ban on importation of
the low capacity vehicles, the
Sacco has supported members
tremendously in acquiring the
new model of Matatus, popu-
larly known in the matatu
quarters as „choppers‟. This
has not only provided the cus-
tomers‟ preference but further
given the Sacco a competitive
edge while remaining relevant
in the transport business.
Anne Kinyua,
Chief Executive Officer
Transport World 5
O ver the years, 2NK
Sacco has striven to
improve business for its
members. Key in this ef-
fort has been measures to
reduce road accidents.
Road accidents are not
only a problem to the Sac-
co, they are a problem na-
tionwide. They eat into
the profits of transport
operators. And they kill
people—innocent people.
Statistics graphically
demonstrate the serious-
ness of the problem. Ac-
cording to the National
Transport and Safety Au-
thority (NTSA), every
year, about 3,000 people
die on Kenyan roads. Re-
gionally, Nairobi comes
first in that list; account-
ing for about 20% of the
total fatalities. By 2013,
accidents had reached an
alarming 3,318 deaths.
The larger fraction of the
fatalities is made up of
pedestrians. Passengers
follow closely, then motor-
ists. The lowest number
of deaths is that of driv-
ers.
Lead Story
Improving Member Incomes
with Road Safety Campaigns
By NGULI MULI
Board members in a
planning session. Proper
plans have ensured the t
sacco prospers
2nk sacco Managemeny Board
members
6 Transport World
The segment of the popu-
lation most affected by
these accidents is the 24-
44 year-olds bracket.
While at that age people
are more mobile, the
NTSA says they are also
more reckless. For exam-
ple, they are unwilling to
use foot bridges, leading to
many pedestrian deaths.
NTSA also notes that the
same age bracket won’t
pause their mobile phone
activities to either cross
roads carefully or drive
with full concentration.
It was also established
that more accidents occur
on Saturdays than on any
other day of the week.
Wednesdays are the saf-
est days to travel or use
With fleet control manage-
ment system, the vehicle
remains always visible
When you develop a customized fleet
vehicle management plan, the first step
is to benchmark your performance
against the standards in the industry.
Often comparing vehicle performance to
industry averages quickly reveals
which assets need immediate attention.
Once the benchmarking process is com-
plete, the creation of a strong fleet vehi-
cle management plan has two phases:
1. examining all current vehicles to
make sure their specifications are opti-
mal for the functions they are required
to perform and
2. thoroughly reviewing company pur-
chasing policies to achieve maximum
discounts.
To develop a fleet vehicle management
plan, you should do an in-depth analy-
sis of each vehicle. Analyzing fuel econ-
omy profiles is a
How to Develop Fleet Vehicle Management Plan
Turn to page 8
Transport World 7
road in any way, accord-
ing to statistics. This
finding points to drunk-
enness as being a major
cause of road accidents.
Further, most accidents
are recorded between
6pm and 10pm. Reduced
enforcement of traffic
rules in these hours could
contribute to these find-
ings.
These numbers, unfortu-
nately, have far reaching
effects on the individuals,
affected families, econo-
my and the investors in
the transport sector. One
fact is that the bulk of
road accident fatalities is
made up of young and
productive citizens; many
of whom are breadwin-
ners to their families and
highly productive citi-
zens.
The estimates of the eco-
nomic losses in annual
road accidents are at
about Shs45 billion, ex-
cluding the actual loss of
life.
The sad fact is that most
of these accidents result
from very easily preventa-
ble driver-centered caus-
es. The two leading
causes are drunk
driving and over
speeding among driv-
ers.
It is why 2NK Sacco
is in the forefront in
taking measures to
fight road carnage.
We take pride in the
fact that we have contrib-
uted to the restoration of
sanity that is now on our
roads. Through vigorous
campaigns, road users are
becoming more aware of
the dangers posed by
careless use of roads.
We, of course, are a part
of a group involved in
campaigns to reduce road
accidents. The Govern-
ment has collaborated
with the players in the
transport sector in these
road safety campaigns.
It is also necessary to
acknowledge other play-
ers that have stretched
their arms to educate the
Kenyan public on matters
relating to safety on the
roads. Matatu Owners
Association, East African
Breweries, Global Road
Safety Partnership, World
Health Organization,
John Hopkins Interna-
tional School of Public
8 Transport World
Health, World Bank Global Road Safety
Facility, Association of Safe Interna-
tional Road Travel and The World Re-
sources Institute are some of them.
In April this year, the campaign Save
1000 lives was launched jointly by the
NTSA and National Road Safety Trust.
The campaign listed its key goal as re-
ducing the number of road accidents on
our roads by a third in the next 24
months. It intends to mobilize the pri-
vate sector to effectively actualize and
manage its programs.
The result of all these activities has
been a decrease in road accidents—and
therefore, hopefully an increase in the
profitability of transport operators. Last
year, for example, 2,907 deaths on the
road were recorded; which was an im-
provement from those recorded in the
previous years. This year, the numbers
should be much lower, going by current
trends and predictions. It is estimated
that within the first seven months of
this year, about 1,085 people have died
in road accidents.
2NK Sacco has played a key role in this
effort to make Kenyan roads safe. Its
new regulations ensure employment of
drivers with good conduct. Towards this
end, it has intensified education of driv-
ers on road safety. And above all, we
have installed motoring gadgets that
have made our vehicles the safest on
the roads and reduced losses incurred
good basic performance indicator. Fuel,
especially in times of high gas prices, is
a primary cost component in fleet vehi-
cle management. With improved gas
mileage, every mile driven is money to
the bottom line: just good fleet vehicle
management.
Examining maintenance records and
forecasting maintenance needs is anoth-
er important element of good fleet vehi-
cle management. Scheduling and track-
ing maintenance costs can help identify
how your fleet vehicle management is
working for you. Looking at the strategy
(or lack of strategy) involved in cycling
your older vehicles can provide im-
portant insights. Cycling too soon or too
seldom can cost money in fleet vehicle
management terms, and more im-
portantly, can drag down your profit
picture.
The second phase of creating the fleet
vehicle management plan, examining
company purchasing policies, can yield
considerable savings. It is important to
understand the cost impact of acquiring
vehicles from a dealer versus acquiring
them direct from the factory. Fleet vehi-
cle management means managing each
vehicle as a component of your fleet, not
as an individual business purchase. Ad-
vance planning and acquiring vehicles
direct from the factory can mean sub-
stantial cost savings.
How to Develop Fleet Vehicle Management Plan
From page 6
Turn to page 10
Transport World 9
S ocial media is becom-
ing an integral part of
life online as social web-
sites and applications pro-
liferate.
According to new data by
global web index, an aver-
age user logs 1.72 hours
per day on social platforms
which represents about
28% of all online activity.
Kenya has one of the most
active online
populations with
users increasing
in numbers every
day. Majority of
the Kenyans
online use plat-
forms such as
facebook, twitter,
l i n k e d i n ,
whatsapp and
youtube.
Social media
therefore pre-
sents great
marketing
opportuni-
ties for
businesses
b e s i d e s
b u i l d i n g
s t r o n g e r
r e l a t i o n -
ships with customers
online.
To some entrepreneurs,
social media marketing is
the ―next big thing‖ a tem-
porary yet powerful fad
that must be taken ad-
vantage of while it’s still in
the spotlight. To others its
buzzword with no practical
advantage and a steep
complicated learning
curve.
Since it appeared quickly,
social media developed
reputation by some for be-
ing a passing marketing
interest and therefore un-
reliable.
The statistics however il-
lustrates a different pic-
ture. 92% of marketers
in 2014 claimed that so-
cial media marketing
was important for their
businesses with 80% in-
dicating their effort in-
creased traffic to their
website.
This demonstrates a
huge potential for social
media marketing to in-
crease sales. Some of the
ways social media mar-
keting can be used in-
clude:
MARKETING
WHY ADOPT SOCIAL
MEDIA MARKETING? By PETER MAINA
10 Transport World
To increase brand
recognition: This simul-
taneously makes brand
easier and more accessible
to new customers and
makes it more recogniza-
ble to existing customers.
A frequent twitter user
could hear about a compa-
ny for the first time only
after stumbling upon it in
a newsfeed or a customer
can become better ac-
quainted with the brand
after seeing its presence
on multiple networks.
To improve brand loy-
alty: Brands that engage
on social media channels
enjoys higher loyalty from
their customers due to
the advantages social me-
dia gives when it comes to
connecting and interacting
with their audience.
To convert more cus-
tomers: Every post you
make on social media plat-
form is an opportunity for
customers to convert.
When you build a follow-
ing, you will simultaneous-
ly have access to new and
old customers and you will
be able to interact with all
of them.
Every post or comment you
share is a chance for some-
one to react and every re-
action could lead to a site
visit and eventually a con-
version.
Richer customer experi-
ences: Take an example
where a customer com-
plains about your product
on face book or twitter; you
can immediately address
the comment, apologize
publicly and take action to
make it right, or if a cus-
tomer compliments you,
you can thank them and
recommend additional
product. It’s a personal ex-
perience that lets custom-
ers know you care about
them.
Social media marketing
therefore is a decisive tool
for business success now
and in the future. It’s not
only a tool to try and in-
crease direct conversions
but also a way for a busi-
ness to become a part of
specific community that
their customers participate
in.
The relationships made
through social media can
create reliable customers
and business relations that
make for long term brand
advocates.
„92% of marketers
in 2014 claimed
that social media
marketing was
important for
their businesses‟
through bad road usage
and driver misconduct.
2NK Sacco has embraced
modern technology to
help not only reduce road
accidents but also to man-
age its fleet.
The technology provided
by Frotcom Limited ena-
bles 2NK Sacco to moni-
tor the behavior of drivers
and other road users on
the road.
That way, we can know
and demonstrate who
was at fault in the un-
likely case of an accident.
Combined with internet
access, 2NK members as
investors can literally
watch over the movement
of their vehicles as well
as communicate with the
driver for fresh instruc-
tions and updates.
Fleet Vehicle Management From Page 8
Transport World 11
Not everyone needs a life
insurance cover. But if
your children, partner or
other relatives depend on
your income for living ex-
penses, then the answer
to the question: Do you
need life insurance? is a
YES. You probably want a
life insurance cover since
it will help provide for
your family in the event
of your death.
The following questions
will help you make such a
decision:
1. What is life insur-
ance?
This is insurance that
pays out a sum of money
either on the death of the
insured or after a set peri-
od
How does it work?
Questions that help you answer the question:
DO YOU NEED
LIFE INSURANCE?
Life insurance works the
same way your car insur-
ance works-when you
take out a life insurance
policy, you pay a monthly
premium to your insurer
and if something goes
wrong, your life insur-
ance provider helps you
cover the financial side
Life insurance cover
helps you maintain your
life style if you become ill,
suffer a serious injury or
become permanently dis-
abled.
There are two types of
life insurance
(a) Term life insurance-
this policy runs for a
fixed period of time. This
kind of policy pays out if
you die during the policy.
There is no lump sum
payable at the end of the
policy term.
(b) Whole-of-life policy-
this policy will pay out no
matter when you die, as
long as you keep up with
your premium
2. Do you need it?
If you have children or a
partner who relies on
your income, or even a
family that lives in a
house with you pay-a life
insurance policy can pro-
vide for them even when
INSURANCE
By PURITY WACHIRA
12 Transport World
you die.
You might also need a life
insurance cover that will
provide for your funeral
expenses.
You can’t rely on the gov-
ernment to take care of
your family.
If you want to provide for
your family even when
you die, then life insur-
ance is a MUST.
3. How much does it
cost?
Often just a few shillings
a day is all you need to
provide for your loved
ones with plenty of finan-
cial protection-depending
on your age and health
status.
Monthly payment that is
premiums do vary, so it’s
a good idea to shop
around, check exactly
what is covered for the
level of monthly pay-
ments.
The price you pay for a
life insurance policy de-
pends on a number of
things. These includes:
the amount of money you
want to cover, the length
of the policy, your age,
the condition of your
health and lifestyle.
For example, the younger
you are, the less likely
you are to die from a
medical condition, the
cheaper your policy is
likely to be.
4. Have already got it?
If you have an employee
package that includes
benefits related to life in-
surance cover, this will
cover you for a multiple of
your salary and you may
not need an additional
life insurance cover.
It’s up to you to work out,
whether this policy covers
all your needs, if it
doesn’t then you need an
additional life insurance
policy.
Bear in mind, when you
stop working for your em-
ployer, you won’t be cov-
ered under that policy
anymore.
*No matter what future
holds, rest assured that
life insurance will give
you a peace of mind
… the beautiful
girl who was ad-
mired by four
men. A singer, A
hunter, A doctor
and a fisherman.
One day she went
to wash her clothes by the
river.
Coincidentally the four men
were there. All of a sudden a
crocodile bit her and dragged
her into the water.
The singer immediately com-
posed a beautiful song; the
crocodile raised his head
above the water to lis-
ten…The hunter shot dead
the crocodile and the girl
floated on the water.
The fisherman dived in and
brought her to the shore,
then the doctor treated her
and she was well again.
Now who deserved to marry
the girl among the four???
COSTLY MISTAKES . A baker was asked to print
1st John 4.18 on a wedding
cake and he forgot the “1st
“and printed John 4.18.
1st John 4.18 reads “There
is no fear in love. But per-
fect love cast out fear be-
cause fear causes torment.
He that fears is not made
perfect in love.”
John 4.18 reads “For you
have had five husbands;
and he whom you now have
is not your husband.”
Stay blessed and remember
that small mistakes are not
always that small.
- By George, Audit Dept
Ah! Ah! Have you heard of ...
Transport World 13
CROP
INSURANCE: A Risk Mitiga-
tion Tool
Crop insurance is a vital part
of the world’s agricultural in-
dustry and a key risk manage-
ment tool for the modern
farmer. Despite their best ef-
forts, farmers will often suffer
because of drought or even
excessive rainfall or hail and
frost in some parts especially
during harvesting. We cannot
control weather patterns and
therefore extreme weather con-
ditions can hit a crop at any
stage of development. A
farmer can only be at peace
when the whole crop is har-
vested and safely in the store.
Till then the farmer isn’t sure
of the harvest. It is due to such
uncertainties that farmers
take insurance as a risk miti-
gation tool. Insurance gives a
farmer some peace of mind
that if extreme weathers pre-
vails then he/she will be able to
come back next season.
Insured Events
The insurance offered is main-
ly a multi-peril cover. The crop
is covered for Yield Losses,
arising out of any or a combi-
nation of the following weather
perils:
1. Excess Rains
2. Drought
3. Hail Damage
4. Frost Damage
5 Fire
6. Uncontrollable pests and
diseases
To get insured
To get covered, a farmer will
need to provide the insurance
company with historical yield
data, say for the 5- 10 years.
This will establish the long-
term average over the years.
For example, most large-scale
farmers in Moiben have pro-
duced on average 15bags/acre
of wheat. Insurance will cover
up to 65% of this average. This
is referred to as the Yield
Guarantee. Thus, if a farmer
chooses a 65% Yield Guaran-
tee, he will be covered up to 10
bags/acre. The price per bag is
pre-agreed at the point of in-
surance and will not be altered
at the point of harvest. This
price should not be specula-
tive.
Crop insurance is taken early
enough to avoid the farmer or
the insurer reading the season.
Farmer should factor insur-
ance as a cost of production
and budget for it early. More
and more farmers are insuring
their crops and especially so,
for the large farmers.
Crop Insurance and Credit
Access:
One way of protecting agricul-
tural credit is through crop
insurance. Banks will normally
recover agricultural loans from
farmers by asset recoveries
(tractors, combines). Surely, a
humane way of recovering the-
se loans would be through crop
insurance. The insurance com-
pany pays the bank directly
after a bad season. The farmer
maintains his creditworthiness
and is able to access finances
for the next season. Crop in-
surance makes farming a less
risky venture and therefore
attractive.
For more information on crop
insurance, reach us on:
agriculture@cic.co.ke and
0723531540/ 0703099156
*Article by Fredrick Kinoti,
Agricultural Underwriter, CIC
General Insurance Ltd
Barley crop affected by
drought
14 Transport World
el? There are adjust-
ing screws above the
light housing under
the hood. best to pull
up to a wall and see if
your light are tilted
up higher than nor-
mal. Also if you are
running your A/C or
heater at full the pow-
er drain through the
alternator could cause
the lights to dim.
Check covers
Are the covers filled
with water? Are they
dirty or tinted? Check
with a mechanic who
can see it in person.
Torch it!
Take a torch and
shine it into the re-
flectors at nighttime-
if they are not abso-
lutely clear, they
might need replacing.
may also have conden-
sation in the head-
lamp housing.
Adjust the lights
Did you check to make
sure the lights are lev-
Qs and Answers A column that answers common questions from motorists
Why Are My Headlights Dim on My Car? Why might the headlights be dim
on my vehicle? We've checked the bulbs, the switches and the battery
is fine.
ANSWERS:
Check the lens.
There might be dirt
on the inside of it.
If it's the alternator
your battery would
not be charging. In my
case the battery would
not charge and the
lights would dim. We
checked a wire coming
from the car's comput-
er to the alternator
and found the voltage
was under 12 volts.
Check the fuse
It could be fuse-
related. Have you
looked into the fuses?
Have you checked the
headlight's plastic?
The front plastic ages
and can dim the light
from the bulbs. You
Know your Board Members
James Kahiro, Chairman
Ephraim Karimi
Vice Chairman
Paul Ichura,
Treasurer
Allan Gakage, Board-
Member
Samuel Ruiru, Board
Member
Jimna Obed, Board-
Member
John Maregwa, Board
Member
William Kanyi, Board-
Member
Supervisory Committee
Peterson Kigotho,
Board Member
Robert Matheri,
Chaimana
Elizabeth Kariuki,
Secretary
Richard Kimondo,
Member
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