THE BIRTH

The desire to Launch FOSA product was prompted by the numerous requests made by the members for encashment of third party cheques and provision of simple banking services. At the time of initiating the FOSA services, Commercial Banks were restrictive and stringent in encashing third party cheques issued at the Head Office and at the society’s Branches.

WHAT IS FOSA?

FOSA is a facility that offers services similar to those offered by Commercial Banks although it is not bank.

WHO OWNS FOSA?

FOSA is a product of Afya Sacco Society. FOSA exists to provide financial services to members.

Revenue generated from FOSA activity is shared by all members through payment of dividends.

WHO QUALIFIES TO OPEN AN ACCOUNT IN FOSA?

a.) Members of Afya Sacco Society and its subsidiaries.

b.) Spouses and Children of members.

c.) University Medical/KMTC Students.

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HOW TO OPEN FOSA ACCOUNT

To open a savings account you are required to visit the manager at any FOSA outlet near you and present these documents: -

a.)A copy of national identity card.

b.)Two passport size photographs.

c.) Initial deposit for opening of account for members/spouse/students is
Kshs. 1000/= and Children Kshs. 200/=.

Members are allowed to open accounts with ZERO minimum deposits as the same will be retained gradually through subsequent payments by the society through FOSAs.

WHERE ARE FOSA OUTLETS LOCATED ?

In the past four years the society opened eight FOSA Branches at the listed locations: -

a.)Nairobi at Afya Centre.

b.)Mombasa at Coast General Hospital.

c.)Kisumu at New Nyanza General Hospital.

d.)Nakuru at the Rift Valley Provincial General Hospital.

e.)Nyeri at Central Provincial General Hospital.

f.)Meru at District Hospital.

g.)Eldoret at Moi Referral & Teaching Hospital.

h.) Kakamega at Western Provincial General Hospital

Members are encouraged to visit any of the listed outlets at their convenience to benefit from diverse services and products aligned for their utilization

WHY TRANSACT WITH FOSA AND NOT WITH BANKS ?

•By transacting with FOSA you build Afya and yourself (sisi kwa sisi)

•Benefits accruing form FOSA services are yours.

•Members through the electoral process influence decisions affecting the running of FOSA.

•FOSA services are within reach right where members work.

•The tariffs levied for products and services are affordable.

WHAT SERVICES ARE OFFERED?

1. Savings Account.

* Amount required to open the account is Zero since future
payments will be channeled through the account.

•Minimum balance is Kshs. 1,000/=.

•Minimum deposit attracting interest is Kshs. 5,000/=.

•Charges per withdrawal is Kshs. 30/=.

•Interest paid on savings is 4% P.A.

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BENEFITS TO AN ACCOUNT HOLDER

•Opportunity to save in the shorterm.

•Not charged 2% commission for encashment of cheques.

•Qualifies for advances within six months of account opening.

2. Bankers Cheques.

FOSA provides bankers cheques to customers at a cost of Kshs. 400/= per leaf

3. Standing Order.

This service is geared towards helping the customers effect payments to other institutions/persons without coming into physical contact with money.

Customers are required to give specific instructions to FOSA to pay institution/persons. Charges per order is Kshs. 250/=. This service ensures that the customers’ time is saved as they do not physically move to institutions/persons to make payments.

4. Third Party Clearance of Cheques.

The customer is assisted to clear cheques paid by institutions and individuals at reasonable price. Cheque clearance is charged Kshs. 300/=.

5. Short Term Advance.

• Maximum advanced currently Kshs. 60,000/=.

• Repayment in six months.

• Interest charged is 2.5% per month.

• To qualify a customers savings account must have been active for the last six (6) months.

• The advance is guaranteed by other FOSA account holders whose accounts are well serviced. The terms of this product are reviewed on continuous basis.

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6. Encashment of Loan Cheques.

Loan payments for account holders are credited to the account free of charge. Members are encouraged to open savings accounts to ease the process of loan encashment from the society.

7. Networking of FOSA Branches.

Customers can withdraw money from any outlet. This enables members to access their deposits whenever they are at the nearest FOSA Branch. Plans are underway to network all FOSA outlets.

8. Salary Processing.

This service is offered to members who wish their salaries paid through FOSA. The employer channels the salary payment cheques through FOSA and the society in turn credits the money to the customers accounts.
Salary processing is charged Kshs. 100/=.

9. Fixed Deposit Accounts.

Customers are afforded with opportunity to save surplus funds at competitive rates of interest.

Short call deposit 4%

30 days 4.5%

60 days 5.0%

90 days 6.0%

Minimum deposits is Kshs. 10,000/=.

The interest rates are reviewed periodically to ensure that those who save funds in fixed deposits reap competitive benefits.

10. Safe Custody of Assets/Valuables.

FOSA accepts valuables/Assets from customers for safe custody at a cost. The cost is dependent on the period the valuables held but ranges from Kshs. 500/= to Kshs. 700/= P.A.

11. Electronic Funds Transfer (EFT).

Account holders are able to transfer funds from any FOSA outlet to the bank accounts of their choice at a cost of Kshs. 200/= per a transaction.

12. Funds for Loan Clearance by Cash.

This facility finances members to clear loans by cash and qualify for others immediately.

The maximum amount loanable is dependent on the accountholders ability to secure a loan from the society. Interest charged on the facility is 5% flat rate on the amount advanced.

The security for the loan is the loan being secured which will be paid through FOSA.

13. School Fees Savings Account.

This facility will assist members finance fees for their children. The member is expected to open the school fees account and save a fixed amount regularly for twelve months after which the member qualified for an advance three times repayable in 12 – 24 months.

The interest on the advance is 1% per month. This facility is available to society’s members only.

14. Individual Retirement Account.

This will help in planning for a better financial future after one retires.

15. Spouse and Children Account.

This facility is available to Spouses/Children of members who have accounts at FOSA.

16. University/KMTC Student Account.

Students persuing professions which are in line with the society’s major catchment area are encouraged to open savings accounts in FOSA awaiting enrolment for membership when they graduate.

17. V.I.P Accounts.

Accounts with minimum deposits of Kshs. 100,000/= will qualify for V.I.P treatment. V.I.P account holders will be served while seated at the managers office.

18. Commercial Loans.

This facility is designed for members who have other sources of income other than the salary.

Eligibility to the commercial loans will depend on the amounts deposited on monthly basis and is repayable in 36 months.

19. Instant Loans.

Instant loan product was designed for members who need capital loans very urgently

Instant loans are processed within one week of receipt of application forms. Interest charged is 21% P.A. on reducing balance which translates to 11.3% fixed rate.

20. Interest On Reducing Balance As Opposed To Flat Rate And Other Hidden Charges By Other Institution.

We charge once off interest and there are no hidden charges like other institution.

21. Introduction of ATMs

Arrangement to install ATMs at the FOSA outlets are at an advanced stage. Once this facility is put in place members will access their funds 24 hour daily.

22. Safety of Members deposits.

• Members deposits in FOSA are safe as FOSA is a department of the Society.

• The Government has come up with the Sacco bill which will regulate FOSA operations just the same way Central Bank regulates Commercial Banks.

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