KENYA POST OFFICE
SAVINGS BANK
ANNUAL REPORT AND FINANCIAL STATEMENTS
31ST DECEMBER 2009
KENYA POST OFFICE SAVINGS BANK
ANNUAL REPORT AND FINANCIAL STATEMENTS
31st DECEMBER 2009
CONTENTS
PAGE
Chairman’s Statement
2-4
Managing Director’s Statement
5-6
Report of the Directors
7
Statement of Directors’ Responsibilities
8
Corporate Governance Statement
9 - 11
Corporate Social Responsibility Statement
12 - 13
Report of the Independent Auditors
14
Statement of Financial Position
15
Statement of Changes in Reserves
16
Statement of Comprehensive Income
17
Statement of Cashflows
18
Notes to the Financial Statements
19 - 37
Network of Branches and Sub-branches
38 - 40
Page 1 of 41
KENYA POST OFFICE SAVINGS BANK
CHAIRMAN’S STATEMENT
I am pleased to present the Annual Report and Financial Statements of Kenya Post Office Savings
Bank (Postbank) for the year ended 31st December 2009.
Economic Overview
Postbank’s performance should be viewed in the context of the country’s economic performance.
Kenya’s economy is estimated to have grown by 2.5%. This has been attributed to the reduction in
performance in the agricultural and forestry sector which was caused by the drought during the year.
Due to reduction in water levels the government had to ration electricity which affected the
manufacturing industries as a result of high energy costs.
The overall inflation for 2009 stood at 9.37 %. There was therefore a decline driven by reduction in
food and housing inflation by 1% 0.5% towards the end of the year. Relatively low rainfall
contributed to the food shortages further aggravating the inflationary trend.
Inflation is expected to slow down in view of measures being taken by the government to ensure
adequate food supplies and declining international crude oil prices.
There was as small decrease observed in the 91-day Treasury Bills rate ranging from 7.3% in mid
year and a further decline towards the end of the year to 6.7%.
Financial Sector
In the foreign exchange market, the Kenyan shilling suffered increased volatile against major world
currencies in the year under review. The shilling weakened against the US dollar. However there was
a slight appreciation of the Euro towards the end of the year to close at 108.40.
The performance in the Nairobi Stock Exchange improved towards the end of the year. The
improvement was due to foreign interest and in the fourth quarter due to interest from local
institutional investors.
Trading in bonds was automated during the year which increased the trading activities and turn
round time in the Nairobi Stock Exchange
Challenges
Postbank continued to face a number of challenges even as she endeavored to improve services to
her customers. Some of the key challenges were;
1. The amendment of the Section 16A of the Banking Act prohibiting commercial Banks
charging of fees on savings accounts .Postbank had to respond to the environmental change
leading to substantial loss of revenue.
2. The dynamic nature of the business environment. This continued to remain competitive.
3. The Kenya Post Office Savings Bank Act which continues to curtail offering of credit and
other related financial services.
4. The fact that Postbank is not capitalized hinders its full potential.
Year 2009 Results
During the year, Postbank’s gross income declined from Kshs.2.188 billion in 2008 to Kshs.1.919
billion a 12.29%. Customer deposits recorded a 11.98% increase to close at Kshs.10.462 billion.
The increase in customer deposit is largely attributed to aggressive customer recruitment and
efficiency due to the
Page 2 of 41
KENYA POST OFFICE SAVINGS BANK
CHAIRMAN’S STATEMENT...(Continued)
new business model. However the strong competition and Postbank not being able to lend have
continued to affect the overall performance. The high level of inflation and drought situation in
Kenya did not also assist the Bank to performance better as this resulted in reduced propensity to
save.
The Bank fully funded the Voluntary Early Retirement Scheme which reduced the profit for the year.
Corporate Governance and Social Responsibility
Postbank has put in place a clear Board structure incorporating committees for Risk, Human
Resources and Audit to ensure focus on delivery of her responsibilities.
All Committees of the Board are chaired by a member of the Board. A number of members of the
management team are incorporated in the Board Committees as invitees to add value to key Board
decisions. This structure ensures the Board pays attention to the critical areas of business and
provides timely guidance and to capitalize on opportunities and mitigate risks. The Board continues
being guided by its Charter.
In compliance with the current Central Bank of Kenya (CBK) prudential guidelines, Postbank makes
concerted efforts to approach her business from a risk perspective. To this end, a Board Risk
Committee was established in 2008 to guide the Bank in risk aspects of its operations and continued
doing so in 2009.
On Corporate Social Responsibility, Postbank is committed to assist the communities she does
business with. Postbank views herself as an agent of social change. Our focus has been to participate
in social transformation processes that makes the lives of the needy better, particularly the
vulnerable, socially and economically marginalized segments of our society. This has been the
philosophy of our corporate social responsibility. In 2009, Postbank participated in community needs
in areas of health, education and environment management. Among the main beneficiaries of
Postbank’s Corporate Social responsibility were; Faza fire tragedy, Heal the Scars Project, Kajiado
Dalalekutock Food aid and Student in Free Enterprise (SIFE).
The Bank is the sponsor of Kenya Post Office Savings Bank (Defined Benefit) Scheme and the
KPOSB (Defined Contribution) Scheme.
Risk Management
In compliance with the current Central Bank of Kenya (CBK) prudential guidelines, Postbank makes
concerted efforts to approach her business from a risk perspective while developing new products
and carrying out her business.
The Future
With a dynamic and competitive financial environment, Postbank’s resolve is to be more customercentric and more focused to offering market-led solutions to these needs. Postbank is confident that
the efficiencies envisaged from the new service delivery system and with the Government amending
the KPOSB Act to allow the Bank to lend will be realized in 2010.
Page 3 of 41
KENYA POST OFFICE SAVINGS BANK
CHAIRMAN’S STATEMENT...(Continued)
Appreciation
I want to thank the Government for continued facilitation and support. The esteemed customers and
business partners for their continued support. The management and staff for their dedication which
resulted in the increase in customer deposits. I would also like to thank my fellow Directors for their
continued support, timely guidance and decision making.
We look forward to working together towards meeting and exceeding customers and shareholder’s
expectation in the coming year and I look forward to your continued support.
CHAIRMAN …………………………………
DATE: MARCH, 2010
Page 4 of 41
KENYA POST OFFICE SAVINGS BANK
MANAGING DIRECTOR’S STATEMENT
We have continued to provide solid savings services to the 1.2 million customers that have found a
safe home for their savings at Postbank. During the year 2009 after successfully implementing the new
Business Model in 2008, the Board and Management decided that it was time the Bank was
restructured to be able to meet the challenges ahead and to remain competitive.
Transformation
During the year, the Board approved a Voluntary Early Retirement Scheme that commenced towards
the end of the year with 300 staff opting to retire. The scheme offered an incentive to staff to retire
early from the Bank. The Bank also carried out an assessment with all the staff undergoing an
aptitude test. This will enable the Bank to deploy staff at the right job using the right skills and to
train those who do not have the necessary skills as we move forward.
Postbank also operates under performance contract guidelines and this has now been entrenched
through Balanced Score Card performance management system.
Branch Network
During the year, the branch network expanded to 91 branches, four new branches were opened at
Kehancha, Mlolongo, Kajiado and Watamu while Muranga branch was relocated to strategic
location within the central business district The Bank continued to use the over 350 Post Offices on
agency basis. A total of sixteen sub-agents were appointed to deal with remittance business on behalf
of the Bank.
Products and innovations
Postbank continued to offer a wide range of products and services to customers. Three new products
were introduced during the year to give customers a wide choice. These products are Pamoja
Account that targets the groups normally called “Chama’s”, a Bancassurance product which is a
medical cover which is being offered to our customers through a partnership with an insurance
provider and MoneyGram money transfer services. During the year the bank also enhanced it service
delivery by introducing SMS banking and utility payments.
Automation
The New Business Model delivery platform that uses the Teller Point of Sale (POS) terminal has
resulted in a lot of efficiency in processing transactions in all the branches and significant cost
saving have been realised. Postbank is the pioneer in Kenya financial sector in using Teller POS
terminals.
Postbank expanded her ATM network to 26 and continued to serve customers through the PesaPoint
and Kenswitch ATMs networks of which the Bank is a member. The number of ATMs the Postbank
customers can access increased to about 658 in 2009. This enhanced access to financial services.
Negotiations continued during the year for the Bank to install the Point of Sale (POS) terminals in all
major locations of the major agent. This will enhance customer services and make it efficient in all
locations of the major agent.
Performance Contracts
The 2009 Performance Contact between the Chairman and the Managing Director was signed on
December 24th 2008 . The Performance Contract was cascaded to all levels by 15th February 2009
and performance was monitored against the agreed benchmark and reported on throughout the year
as per the Contract with the government. The Performance Contracts Evaluation for 2008 was
Page 5 of 41
received from the government and Postbank’s performance was rated as “GOOD”.
KENYA POST OFFICE SAVINGS BANK
MANAGING DIRECTOR’S STATEMENT..... (Continued)
On service quality, Postbank continued to adhere to the service quality requirements of ISO
9001:2000 which was attained in December 2007. The Bank continues to ensure quality service to
external and internal customers as outlined in the Service Charter.
Strategic networking
Postbank maintained strategic relationships with key institutions such as;
World Savings Bank Institute (WSBI)
WSBI is the largest association of savings and retail banks in the world. It gives the savings banks a
platform to network with each other.
In 2009 the Managing Director of Postbank continued to be the President of WSBI Africa Group until
April 2009 when the chair went to Botswana. The Managing Director however continued to be one of
the members of the WSBI Board representing the African savings banks.
Through a competitive process, Postbank also won the WSBI- Bill and Melinda Gates Foundation
grant. Through this grant, Postbank will expand the agency network and thus offer more Kenyans
access to affordable financial services.
Association of Savings Bank in East Africa (ASBEA)
This is an Association of Savings Banks in East Africa which enables the savings banks to share
challenges they may have and also to offer support to each other.
Financial Deepening Trust Kenya [FSD]
Postbank continued to partner with FSD in organisation alignment program in 2009.
Postbank continues to also have relationships with other organizations such as HELB, Kenya Power
and Lighting (KPLC) Stanbic and Citi among other key local and international partners.
Appreciation
I would like to thank our customers for their great support through out the year and all staff for their
dedication. I would also like to thank the Board for their support and guidance.
We as Management shall endeavour to perform better during the 2010.
A. Nyambura Koigi, MBS
Managing Director.
Page 6 of 41
KENYA POST OFFICE SAVINGS BANK
REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31ST DECEMBER 2009
The Directors have the pleasure in presenting their report and final draft of accounts for the year ended
31st December 2009.
Principal Activity
The Bank is primarily engaged in the mobilisation of savings for national development and operates
under the Kenya Post Office Savings Bank Act Cap 493B. In addition, the Bank offers local and
international credit cards under the sponsorship of a commercial bank, funds remittance collections
and disbursement as well as safe custody services.
Results
The results for the year are as set out on page 17.
Directors
The Directors who served during the year to the date of this report were:Wilson Kinyua
Prof. Peter O K’obonyo
Dr Isabella Musyoka–Kamere
Thomas Mutugu
Joseph K. Kinyua
Chiboli I. Shakaba
A. Nyambura Koigi
Chairman
Director
Director
Director
PS, Ministry of Finance
Alt. Representing
PS. Ministry of Finance
Managing Director
Auditors
The auditors are the Kenya National Audit Office.
By order of the Board.
M. N. KAGIRI - MBIJIWE (MRS) ………………………..
COMPANY SECRETARY
Page 7 of 41
Appointed 04-01-2007
Appointed 04-01-2007
Appointed 04-01-2007
Re-appointed 21/12/2007
Appointed May 2004
Appointed 03-12-2005
Re-appointed 01-07-2008
KENYA POST OFFICE SAVINGS BANK
STATEMENT OF DIRECTORS RESPONSIBILITIES
The State Corporations’ Act requires the Directors to prepare financial statements for each financial
year, which gives a true and fair view of the state of affairs of the Bank as at the end of the financial
year and of the operating results for that year. It also requires the Directors to ensure the Bank keeps
proper accounting records, which disclose with reasonable accuracy, at any time, the financial position
of the Bank. They are also responsible for safeguarding the assets of the Bank.
The Directors accept responsibility for the annual financial statements, which have been prepared
using appropriate accounting policies supported by reasonable and prudent judgements and estimates,
in conformity with International Financial Reporting Standards and in the manner required by the State
Corporations’ Act. The Directors are of the opinion that the financial statements give a true and fair
view of the state of the financial affairs of the Bank and of its operating results. The Directors further
accept responsibility for the maintenance of accounting records, which may be relied upon in the
preparation of financial statements, as well as adequate internal control systems.
Nothing has come to the attention of the Directors to indicate that the Bank will not remain a going
concern for at least the next twelve months from the date of this statement.
CHAIRMAN: ………………………….
MANAGING DIRECTOR: …………………..
DATE: MARCH, 2010
Page 8 of 41
KENYA POST OFFICE SAVINGS BANK
CORPORATE GOVERNANCE STATEMENT
Postbank is committed to the standards of corporate governance as set by the government for the
public sector from time to time and the Central Bank of Kenya on respective services offered by
Postbank.
The Board of Directors is responsible for the long term strategic direction for profitable growth for the
Bank while being accountable to the shareholder for ensuring that Postbank complies with the law and
the highest standards of corporate governance and business ethics.
The Directors attach great importance to the need to conduct the business and operations of Postbank
with integrity and in accordance with generally accepted corporate practice and endorse the
internationally developed principles of good corporate governance.
Board of Directors
The Board is made up of directors of whom 5 are non-executives including the Chairman. Directors
are given appropriate and timely information so that they can maintain full and effective control over
strategic, financial, operational and compliance requirements. The day-to-day running of Postbank has
been delegated to the Managing Director. The Board retains responsibility for establishing and
maintaining the internal control over the strategic financial, operational and compliance issues. The
Board is responsible of ensuring succession planning and commencement of the recruitment of the
CEO.
Board Meetings
The Board of Directors meet on quarterly basis or as required monitoring the implementation of
Postbank’s planned strategy and reviewing it in conjunction with its financial performance. Specific
reviews are also undertaken on operational issues and future planning. At the end of each financial
year, the Board reviews itself, Board Committees, Managing Director and Senior Management staff
against targets agreed to at the beginning of the year.
The Board held 8 Meetings which comprised of Special Meetings during the year under review.
Board Committees
The Board has created the three Principal committees which meet regularly under well defined and
materially delegated terms of reference set by the Board.
Risk Board Committee
This Committee was set up to oversee Postbank’s appreciation and mitigation of all risks in the
business. It meets quarterly to advise the business on all matters pertaining to, legal, operational,
financial, environmental, information technology and other risks and evaluates all new products and
services.
The Committee had 3 meeting during the year.
Audit Committee
The Audit Committee meets quarterly, or as required. In accordance with regulatory requirement, the
Committee comprises non-executive members of the Board who are independent of the day-to-day
management of the bank’s operations. The Head of Internal Audit reports to the Audit Committee
functionally. The Committee deals with all matters relating to the financial statements and internal
control systems of Postbank. The Committee held 3 Meetings during the year under review.
Page 9 of 41
KENYA POST OFFICE SAVINGS BANK
CORPORATE GOVERNANCE STATEMENT...(Continued)
Staff Board Committee
This Committee meets quarterly to review human resource policies and make suitable
recommendations to the Board on Senior Management appointments.
The Committee met 5 times during the year under review.
Code of Ethics
Postbank is committed to the Public Officers Integrity and Ethics Act 2003 and Kenya AntiCorruption and Economic Crimes Act 2003.
Communication with Shareholder
Postbank is committed to ensuring that shareholder and the Parliament are provided with full and
timely information about its performance. This is usually done through the distribution of the Bank’s
quarterly Reports to the Inspectorate of State Corporations and the Ministry of Finance and specifically
the Annual reports to the Clerk of the National Assembly for distribution to the Members of
Parliament. Postbank is in compliance with its obligations under the KPOSB Act, State Corporations
Act and Central Bank of Kenya guidelines relating to remittances services together with other
guidelines issued there-under by the government.
Directors’ Emoluments and Loans
The aggregate amount of emoluments paid to Directors for services tendered during the Year 2009 is
disclosed in Note 26 to the Financial Statements. There were no loans to sitting non-executive
Directors at any time during the year.
Board and Board Committees Attendance
The following table gives the record of Postbank’s Board and its Committee Meetings for the year
ended December 31st 2009.
Page 10 of 41
KENYA POST OFFICE SAVINGS BANK
CORPORATE GOVERNANCE STATEMENT (Continued)
NUMBER OF
MEETINGS
HELD
MAIN
AUDIT
BOARD RISK STAFF
SPECIAL
BOARD COMMITTEE COMMITTEE BOARD
BOARD
COMMITTEE
5
3
3
5
2
MEETINGS ATTENDED
WILSON
KINYUA
CHIBOLI
SHAKABA
THOMAS
MUTUGU
PROF.
PETER
K’OBONYO
DR. ISABELLA
KAMERE
A. NYAMBURA
KOIGI
5
N/A
N/A
N/A
2
5
3
3
5
2
5
N/A
3
5
2
4
2
N/A
5
2
4
3
3
N/A
2
5
N/A
3
5
2
CHAIRMAN …………………………
MANAGING DIRECTOR ……………………..
DATE MARCH, 2010
Page 11 of 41
KENYA POST OFFICE SAVINGS BANK
CORPORATE SOCIAL RESPONSIBILITY STATEMENT
Postbank is committed to assist the communities she does business with and views herself as an agent
of social change. Our focus has been to participate in social transformation processes that make better
the lives of the needy, particularly the vulnerable, socially and economically marginalized segments of
our society. This has been the philosophy of our corporate social responsibility.
Postbank, charged with the responsibility of mobilizing resources for national development supports
community driven social and development initiatives aimed at creating situations conducive for
individuals, groups and the community’s improvement.
We believe that our people are not ignorant of their own plight and are able to identify and prioritize
their development needs. We also understand that, people, however poor they may be, know the right
interventions to their problems. We therefore work with communities by supporting them implement
some of their priority projects that provide sustainable solutions to their problems. This way, we
participate fully in the process of positive social change that is meaningful and beneficial to low
income people.
The objectives of Postbank’s involvement in Corporate Social Responsibility are to create and
maintain Postbank business credibility, to create situations that enable communities and societies
realize their full potential, to empower people in terms of information, education and communication.
Postbank focuses on three main areas namely Education, Health and the Environment
Education
We target marginalized areas whose dependants have been socially and economically excluded. This
sector also addresses sponsorship needs of professional bodies like Students in Free Enterprise (SIFE)
and alumni in colleges of higher learning and universities. This helps to cultivate and maintain the
required linkage between the institutions and the industry .Other activities undertaken by students such
as publication of education materials, educational and achievement awards for distinguished service to
society are also considered. This sector will therefore aim at creating a solid foundation for responsible
future citizens.
In this regard, some of the organizations that the bank has supported in 2009 include the SIFE-Kenya
essay writing competition on development through savings or through credit and sponsorship of the
judgment on the competition. The objective was to prepare the next generation of entrepreneurs and
business leaders and create a better world for all. The initiative was also aimed at promoting a savings
culture among the youth in addition to promoting STEP Account as the product of choice.
We participated in the second cycle of the annual junior achievement job shadow week where students
are given an opportunity to experience and interact with the actual job environment. In addition,
Postbank donated to the Junior achievement –Kenya Coin- Chain competition in their initiative to
support the needy children in the areas of education.
Page 12 of 41
KENYA POST OFFICE SAVINGS BANK
CORPORATE SOCIAL RESPONSIBILITY..(Continued)
Postbank staff joined other corporations in an initiative to support education for the needy
children through a Coin-Chain competition organized by the Junior Achievement-Kenya.
Health
This covers areas of primary health; HIV/AIDS prevention, care and support for orphans, vulnerable
children and disadvantaged elderly. The assistance takes the form of cash, medical equipment and
sponsorship of medical camps and health promotion campaigns. In 2009, we participated in Heal the
scars project and the Kajiado Dalalekutok food aid.
Environment Management
The bank has actively been involved in environmental cleanliness and has therefore collaborated with
all other environmentally sensitive players in beautification of our surroundings and therefore making
them more habitable. Such initiative is the collaboration with the Nairobi Central district Association
(NCBDA) in the beatification of Nairobi City.
Emergency Response
The bank continues to give assistance to those situations of environmental and social nature that may
occur and negatively affect the society. Response has been made on challenges of famine, floods and
conflicts e.g. the Nakumatt/Molo fire victims’ fund and the Faza Fire Fund.
Postbank will continue to work to help make a difference in the lives of people. Our Corporate Social
Responsibility engagements will continue to be decided upon evaluation of proposals and the available
budgets in line with our corporate social responsibility policy.
CHAIRMAN ………………………..
DATE: MARCH, 2010
MANAGING DIRECTOR ……………………
Page 13 of 41
KENYA POST OFFICE SAVINGS BANK
REPORT OF THE CONTROLLER AND AUDITOR GENERAL
ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2009
Page 14 of 41
KENYA POST OFFICE SAVINGS BANK
STATEMENT OF FINANCIAL POSITION
AS AT 31st DECEMBER 2009
ASSETS
Bank and cash balances
Investments in Treasury Bills and Bonds
Funds on call and short notice
Other investments
Debtors, prepayments and other assets
Deferred asset
Capital work-in-progress
Fixed assets
LIABILITIES
Creditors
Premium Bonds
Customers’ savings and deposit accounts
GOK Pension Reserve Fund
Bearer Bonds
NET ASSETS
REPRESENTED BY:
Capital Reserves
Revenue Reserves
2009
NOTE
Kshs
809,362,668
9
10,075,321,034
10
309,741,025
11
29,635,549
12
3,130,053,439
13
153,998
14
15
999,317,356
15,353,585,068
2008
Kshs
1,147,630,736
8,720,825,271
284,100,000
29,629,474
3,583,973,151
153,998
9,420,832
1,083,644,098
14,859,377,559
16
2,578,286,335
7,889,300
10,462,830,924
684,832,243
220,002,615
13,953,841,416
3,026,723,811
7,889,300
9,342,406,355
246,835,945
220,002,615
12,843,858,026
1,399,743,652
2,015,519,533
471,403,491
928,340,161
1,399,743,652
471,403,491
1,544,116,042
2,015,519,533
17
18
The notes set out on pages 19 to 37 form an integral part of these financial statements.
The accounts were approved by the Directors on ……………… and signed on its behalf by:
……………………………………………………) Director
................................................................................) Director
Page 15 of 41
KENYA POST OFFICE SAVINGS BANK
STATEMENT OF CHANGES IN RESERVES
AS AT 31st DECEMBER 2009
At 1st January 2008
Profit for the year
At 31st December 2008
Capital
Reserves
Revenue
Reserves
TOTALS
Kshs.
Kshs.
Kshs.
471,403,491
1,473,050,528
1,944,454,019
71,065,514
71,065,514
0
471,403,491
1,544,116,042
2,015,519,533
Prior year adjustment
0
(1,086,900)
(1,086,900)
Loss for the year
0
(614,688,981)
(614,688,981)
At 31st December 2009
471,403,491
928,340,161
1,399,743,652
The notes set out on pages 19 to 37 form an integral part of these financial statements.
Capital reserve arose out of revaluation of land and buildings done in 2002.
Page 16 of 41
KENYA POST OFFICE SAVINGS BANK
STATEMEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31st DECEMBER 2009
INCOME
NOTE
2009
Kshs.
2008
Kshs.
Interest on placement with banks
Interest on Government securities
Fees and commissions
19
Interest on PCK balances
Interest on staff loans
Interest on Personal Development Loan - staff loans
Rental income
Interest on Visa balances (Local & International)
Forex Gain on Money Transfer
Other Income
20
Total Income
11,171,422
1,293,813,968
420,459,277
14,088,771
15,057,931
18,590,528
21,154,629
16,309,203
44,382,204
64,045,708
1 ,919,073,641
18,514,166
1,142,969,952
790,101,071
22,150,547
14,866,467
19,283,485
36,482,243
15,205,231
47,529,141
81,793,423
2,188,895,726
DIRECT EXPENSES
Interest expense
Operating Stationery
Bonus & Prizes
Visa charges
Independent Agent Commission
Shared cost
Premium paid (commissions)
Write offs & Charge offs
ATM process charges
ATM cards cost
Total Direct Expenses
180,600,092
6,090,855
479,885
3,668,931
12,214
3,130,744
20,102,000
977,460
11,549,442
2,963,218
229,574,841
134,908,915
10,209,611
471,297
2,177,442
0
3,750,067
3,666,667
0
6,028,864
12,710,485
173,923,348
1,689,498,800
2,014,972,378
1,644,539,183
296,714,457
78,811,430
139,990,071
10,000
22,511,624
121,611,016
2,304,187,885
1,407,677,515
247,886,556
48,672,965
149,845,083
0
41,035,254
48,789,492
1,943,906,865
21
GROSS PROFIT
OTHER EXPENSES
Administration Expenses
Establishment Expenses
Selling Expenses
Depreciation
Research & Development
Bank Charges & Commissions
Bad and doubtful debts
Total Other Expenses
NET PROFIT/(LOSS)
22
23
24
25
26
(614,688,981)
The notes set out on pages 19 to 37 form an integral part of these financial statements.
Page 17 of 41
71,065,514
KENYA POST OFFICE SAVINGS BANK
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31st DECEMBER 2009
2009
Kshs.
2008
Kshs.
CASH FLOWS FROM OPERATING ACTIVITIES
(Loss)/Profit for the year
Adjustments for:Depreciation
Rental Income
(614, 688, 981)
71,065,514
139,990,071
(21,154,629)
149,845,083
(15,918,473)
Dividend income
Gain/ (Loss) on Disposal of Fixed Assets
Appreciation/Diminution in value of quoted investments
Operating profit/(loss) before working capital changes
(8,835)
(634,700)
6,075
(496,490,999)
(37,500)
0
182,375
205,136,999
(Increase)/ Decrease in Debtors
Increase/(Decrease) in Creditors
Increase/(Decrease)Customer deposits and Premium Bonds
GoK Pension Reserve fund account
Net cash flows from operating activities
452,820,666
(429,595,812)
1,120,424,569
437,996,298
1,581,645,721
(32,658,554)
(341,803,504)
(1,746,519,608)
246,835,945
(1,874,145,721)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets
Capital work in progress
Proceeds from sale of assets
Rental income
Dividend Income
Net cashflows from investing activities
(55,663,334)
-9,420,832
634,700
21,154,629
8,835
(43,286,002)
(83,492,548)
-7,272,510
0
15,918,473
37,500
(74,809,085)
CASH FLOWS FROM FINANCING ACTIVITIES
0
0
Net cash flows from financing activities
0
0
Net increase in cash and cash equivalents
1,041,868,720
(1,743,817,807)
Cash and cash equivalents at the beginning of the year
10,152,556,007
11,896,373,814
Cash and cash equivalent at the end of the year (Note 27
11,194,424,727
10,152,556,007
Page 18 of 41
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31st DECEMBER 2009
1.
(a)
SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accounts are prepared under the historical cost convention as modified by the revaluation
of certain fixed assets.
Revenue Recognition
Income is recognised on an accrual basis.
(b)
(i)
Interest
Interest income and expense are recognised in the statement of comprehensive income using the
effective interest method. The effective interest rate is the rate that exactly discounts the estimated
future cash payments and receipts through the expected life of the financial asset or liability (or,
where appropriate, a shorter period) to the carrying amount of the financial asset or liability. The
effective interest rate is established on initial recognition of the financial asset and liability and is
not revised subsequently.
The calculation of the effective interest rate includes all fees paid or received, transaction costs,
and discounts or premiums that are an integral part of the effective interest rate. Transaction costs
are incremental costs that are directly attributable to the acquisition, issue or disposal of a
financial asset or liability.
Interest income and expense presented in the statement of comprehensive income include:



(ii)
interest on financial assets and liabilities at amortised cost on an effective interest rate basis;
interest on available-for-sale investment securities on an effective interest basis; and
interest income and expense on all trading assets and liabilities are considered to be incidental
to the bank’s trading operations and are presented together with all other changes in the fair
value of trading assets and liabilities in net trading income.
Fees and commission income
Fees and commission income that are integral to the effective interest rate on a financial asset or
liability are included in the measurement of the effective interest rate.
Other fees and commission income, including account servicing fees, are recognised as the related
services are performed.
(iii)
Foreign currency transactions
Transactions in foreign currencies during the year are converted into Kenya Shillings at the rates ruling
at the transaction dates. Assets and liabilities at the statement of financial position date which are
expressed in foreign currencies are translated into Kenya shillings at rates ruling at the statement of
financial position date. The resulting realised and unrealised differences from conversion and
translations are recognised in the statement of comprehensive income.
Page 19 of 41
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
2. FINANCIAL ASSETS AND LIABILITIES
(a) Recognition
The bank initially recognises loans and advances, deposits and debt securities on the date at which
they are originated.
Purchases and sales of financial assets are recognised on the trade date at which the bank commits
to purchase or sell the asset.
A financial asset or liability is initially measured at fair value plus (for an item not subsequently
measured at fair value through profit or loss) transaction costs that are directly attributable to its
acquisition or issue.
(b)Classification
The bank classifies its financial assets in the following categories: financial assets at fair value
through profit or loss; loans and receivables; held-to-maturity investments; and available-for-sale
financial assets. Management determines the classification of its investments at initial recognition.
i)
Financial assets at fair value through profit or loss
This category has two sub-categories: financial assets held for trading, and those designated
at fair value through profit or loss at inception. A financial asset is classified in this category
if acquired principally for the purpose of selling in the short term or if so designated by
management.
ii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. They arise when the bank provides money
directly to a debtor with no intention of trading the receivable. These include advances to
staff, Visa credit to customers and placements with other banks. Loans are initially measured
at fair value plus incremental direct transaction costs, and subsequently measured at their
amortised cost using the effective interest method.
iii) Held-to-maturity
Held-to-maturity investments are non-derivative financial assets with fixed or determinable
payments and fixed maturities that the Bank’s management has the positive intention and
ability to hold to maturity. Were the Bank to sell other than an insignificant amount of heldto-maturity assets, the entire category would be tainted and reclassified as available for sale.
These include Treasury Bills, Treasury Bonds and Government Stock.
Page 20 of 41
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
iv) Available-for-sale
Available-for-sale investments are those intended to be held for an indefinite period of time,
which may be sold in response to needs for liquidity or changes in interest rates or exchange
rates. Purchases and sales of financial assets at fair value through profit or loss, held to
maturity and available for sale are recognised on trade-date, the date on which the Bank
commits to purchase or sell the asset. Loans are recognised when cash is advanced to the
borrowers. Financial assets are initially recognised at fair value plus transaction costs for all
financial assets not carried at fair value through profit or loss. Financial assets are
derecognised when the rights to receive cash flows from the financial assets have expired or
where the Bank has transferred substantially all risks and rewards of ownership.
Available-for-sale financial assets and financial assets at fair value through profit or loss are
subsequently carried at fair value. Loans and receivables and held-to-maturity investments
are carried at amortised cost using the effective interest method. Gains and losses arising
from changes in the fair value of the financial assets at fair value through profit or loss
category are included in the statement of comprehensive income in the year in which they
arise. Gains and losses arising from changes in the fair value of available-for-sale financial
assets are recognised directly in equity, until the financial asset is derecognised or impaired at
which time the cumulative gain or loss previously recognised in equity should be recognised
in profit or loss. However, interest calculated using the effective interest method is
recognised in the statement of comprehensive income.
(v)
Identification and measurement of impairment of financial assets
At each statement of financial position date the Bank assesses whether there is objective evidence
that financial assets not carried at fair value through profit or loss are impaired. Financial assets
are impaired when objective evidence demonstrates that a loss event has occurred after the initial
recognition of the asset, and that the loss event has an impact on the future cash flows on the asset
than can be estimated reliably.
The Bank considers evidence of impairment at both a specific asset and collective level. All
individually significant financial assets are assessed for specific impairment. All significant assets
found not to be specifically impaired are then collectively assessed for any impairment that has
been incurred but not yet identified. Assets that are not individually significant are then
collectively assessed for impairment by grouping together financial assets (carried at amortised
cost) with similar risk characteristics.
Objective evidence that financial assets (including equity securities) are impaired can include
default or delinquency by a borrower, restructuring of a loan or advance by the Bank on terms that
the Bank would otherwise not consider, indications that a borrower or issuer will enter
bankruptcy, the disappearance of an active market for a security, or other observable data relating
to a group of assets such as adverse changes in the payment status of borrowers or issuers in the
group, or economic conditions that correlate with defaults in the group.
In assessing collective impairment the Bank uses statistical modelling of historical trends of the
probability of default, timing of recoveries and the amount of loss incurred, adjusted for
management’s judgement as to whether current economic and credit conditions are such that the
actual losses are likely to be greater or less than suggested by historical modelling. Default rate,
loss rates and the expected timing of future recoveries are regularly benchmarked against actual
outcomes to ensure that they remain appropriate.
Page 21 of 41
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
Impairment losses on assets carried at amortised cost are measured as the difference between the
carrying amount of the financial assets and the present value of estimated cash flows discounted at
the assets’ original effective interest rate. Losses are recognised in the statement of
comprehensive income and reflected in an allowance account against loans and advances. Interest
on the impaired asset continues to be recognised through the unwinding of the discount.
When a subsequent event causes the amount of impairment loss to decrease, the impairment loss
is reversed through the statement of comprehensive income.
Impairment losses on available-for-sale investment securities are recognised by transferring the
difference between the amortised acquisition cost and current fair value out of equity to the
statement of comprehensive income. When a subsequent event causes the amount of impairment
loss on an available-for-sale debt security to decrease, the impairment loss is reversed through the
statement of comprehensive income.
However, any subsequent recovery in the fair value of an impaired available-for-sale equity
security is recognised directly in equity. Changes in impairment provisions attributable to time
value are reflected as a component of interest income.
(vi)
Derecognition
The Bank derecognises a financial asset when the contractual rights to the cash flows from the
financial asset expire, or when it transfers the rights to receive the contractual cash flows on the
financial asset in a transaction in which substantially all the risks and rewards of ownership of the
financial asset are transferred. The Bank derecognises a financial liability when its contractual
obligations are discharged or cancelled or expire.
The Bank enters into transactions whereby it transfers assets recognised on its statement of
financial position, but retains either all or substantially all of the risks and rewards of the
transferred assets or a portion of them. If all or substantially all risks and rewards are retained,
then the transferred assets are not derecognised from the statement of financial position. Transfers
of assets with retention of all or substantially all risks and rewards include, for example, securities
lending and repurchase transactions.
c. Impairment for non-financial assets
The carrying amounts of the Bank’s non-financial assets are reviewed at each reporting
date to determine whether there is any indication of impairment. If any such indication
exists then the assets’ recoverable amount is estimated.
An impairment loss is recognised if the carrying amount of an asset or its cashgenerating unit exceeds its recoverable amount. A cash-generating unit is the smallest
identifiable asset group that generates cash flows that largely are independent from other
assets and groups. Impairment losses are recognised in the statement of comprehensive
income. Impairment losses recognised in respect of cash-generating units are allocated
first to reduce the carrying amount of any goodwill allocated to the units and then to
reduce the carrying amount of the other assets in the unit (group of units) on a pro-rata
basis.
Page 22 of 41
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
3). FINANCIAL RISK MANAGEMENT
Principles
Postbank faces various types of risks which arise from its day to day operations as a financial
institution. The Board of Directors and Management therefore devote a significant portion of
their time to the management of these risks. The mainstay of effective risk management is the
identification of significant risks, the quantification of the Banks’s risk exposure, actions to
limit risk and the constant monitoring of risk.
The overarching aim of risk management is to ensure that all risks assumed in the course of the
Bank’s business are recognized early on and mitigated by effective risk management.
Successful risk management is recognized as a pre-condition for the sustained growth and
success of the Bank. Risk management and monitoring are implemented via the Bank’s risk
management and risk control process and the organization structure corresponds to prudent
Risk Management Guidelines.
In order to ensure continuous improvement of risk management at all times the following key
risk principles have been adopted and are applied;

The Board of Directors assumes the ultimate responsibility for the level of risks taken by
the Bank and is responsible to oversee the effective implementation of the risk strategies.

The organizational risk structure and the functions, tasks and powers of the employees,
committees and departments involved in the risk processes are continuously being
reviewed to ensure clarity of their roles and responsibilities.

Risk issues are taken into consideration in all business decisions. Measures are in place to
develop risk-based performance measures and this is being supplemented by setting risk
limits at the overall Bank and divisional levels, as well as by enforcing consistent
operating limits for individual business activities.

Risk management is increasingly being linked to management processes such as strategic
planning, annual budgeting and performance measurement.

Identified risks are reported in a transparent and timely manner and in full to the
responsible senior management.

Appropriate and effective controls exist for all processes entailing risks.
All these principles are enshrined in the Bank’s risk management policy. The section below
provides the various risks faced by the Bank and describes the methods used by management
to control risk. The most important types of financial risks to which the Bank is exposed are
credit risk, liquidity risk and market risk mainly interest risk and operational risk.
(i)
Credit risk
Credit risk is the current or prospective risk to earnings and capital arising from an
obligor’s failure to meet the terms of any contract with the bank or if an obligor otherwise
fails to perform as agreed.
Page 23 of 41
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
Management of credit risk
The Bank is subject to credit risk through its lending and investing activities.
Considerable resources, expertise and controls are devoted to managing it and
comprehensive strategies, policies and procedures have been developed to effectively
manage this risk.
The Bank’s primary exposure to credit risk arises through its advances to employee and
Visa credit to customers. The amount of credit exposure in this regard is represented by
the carrying amounts of the assets on the statement of financial position. The Bank is also
exposed to credit risk on debt investments. The current credit exposure in respect of the
instruments is equal to the carrying amount of these assets in the statement of financial
position.
The risk that counterparties to instruments might default on their obligations is monitored
on an ongoing basis. To manage the level of credit risk, the Bank deals with
counterparties of good credit standings and obtain collateral.
Write-off policy
The Bank writes off a loan / security balance (and any related allowances for impairment
losses) when management determines that the advances / securities are uncollectible. This
determination is reached after considering information such as the occurrence of
significant changes in the borrower financial position such that the borrower can no
longer pay the obligation, or that proceeds from collateral will not be sufficient to pay
back the entire exposure.
(ii) Liquidity risk
Liquidity risk is the current or prospective risk to earnings and capital arising from the
institution’s failure to meet its maturing obligations when they fall due without incurring
unacceptable losses.
The Bank’s approach to managing liquidity is to ensure, as far as possible, that it will
always have sufficient liquidity to meet its liabilities when due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the
Bank’s reputation. The Bank has access to a diverse funding base. Funds are raised
mainly from deposits.
Exposure to liquidity risk
The key measure used by the Bank for managing liquidity risk is the ratio of net liquid
assets to deposits from customers. For this purpose net liquid assets are considered as
including cash and cash equivalents and investment securities for which there is an active
and liquid market less any deposits from banks, other borrowings and commitments
maturing within the next month.
Page 24 of 41
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
(iii) Market risk
Management of market risk
Market risk is the risk that changes in market prices, such as interest rate and foreign
exchange rates will affect the Bank’s income or the value of its holdings of financial
instruments. The objective of market risk management is to manage and control market
risk exposures within acceptable parameters, while optimising the return on risk.
Exposure to interest rate risk
The principal risk to which financial assets and liabilities are exposed is the risk of loss
from fluctuations in the future cash flows or fair values of financial instrument because of
a change in market interest rates. Interest rate risk is managed principally through
monitoring interest rate gaps.
(iv)
Operational risk
The Bank’s objective is to manage operational risk so as to balance the avoidance of
financial losses and damage to the Bank’s reputation with overall cost effectiveness and
to avoid control procedures that restrict initiative and creativity.
The primary responsibility for the development and implementation of controls to address
operational risk is assigned to senior management within each business unit. The
responsibility is supported by the development of overall Bank standards for the
management of operational risks. Compliance with these standards is supported by a
programme of periodic reviews undertaken by internal audit. The results of internal audit
reviews are discussed with the management of the business unit to which they relate, with
summaries submitted to the Board Risk Committee and senior management of the Bank.
Risk measurement and control
Interest rate, credit, liquidity, operational risk and other risks are actively managed by
independent risk control groups to ensure compliance with the Bank’s risk policy. The
Bank’s risk exposure limits are assessed regularly to ensure their appropriateness given
the Bank’s objectives and strategies and current market conditions.
(4)
FIXED ASSETS AND DEPRECIATION
Leasehold properties for which the lease has 99 years or more to run are stated at cost or
valuation and are not depreciated.
Postbank House, other buildings and other fixed assets are stated at a professional valuation
done in year 2002 by professional valuers. The basis of valuation was open market value.
Fixed Assets are depreciated from the date of purchase.
Depreciation is calculated on a straight-line basis, at rates estimated to write off the assets over
their expected useful lives.
Page 25 of 41
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
The following depreciation rates are used:
Buildings
Show stands
Motor vehicles
Furniture and fittings
Electronic office equipment
Non-electronic office equipment
Computer hardware
Computer software
(5)
(6)
(7)
(8)
2.5 % p.a.
20.0 % p.a.
25.0 % p.a.
12.5 % p.a.
20.0 % p.a
12.5 % p.a
20.0 % p.a
20.0 % p.a
STOCKS
Stocks comprise of stationery and drugs which are valued at cost.
FOREIGN CURRENCY TRANSACTIONS
Foreign currency transactions during the year were converted into Kenya shilling equivalent at
rates ruling at the transaction date. Assets and liabilities at the statement of Financial position
date which are expressed in foreign currency are translated into Kenya shillings at the rates
ruling at the transaction date. The resulting differences from conversion and translation are
dealt with in the profit and loss account in the year in which they arise.
RETIREMENT BENEFIT COSTS
The contributions made by the Bank both to the Defined Benefit and Defined Contribution
retirement scheme and to the Provident Fund are charged to the profit and loss account in the
year of contribution.
PROVISION FOR DOUBTFUL DEBTS
Provision is made on debtors that are considered to be doubtful. Bad debts are written off
when all reasonable steps to recover them have been taken without success.
9. INVESTMENT IN TREASURY BILLS & BONDS
East African Development Bank Bonds
Barclays Bank of Kenya medium term note
Kengen Infrastructure Bond
Government of Kenya Treasury Bonds
2009
Kshs.
44,000,000
38,100,000
477,700,000
9,515,521,030
10,075,321,034
2008
Kshs.
66,000,000
38,100,000
8,616,725,271
8,720,825,271
2009
Kshs.
309,741,025
2008
Kshs.
284,100,000
10. FUNDS ON CALL AND SHORT NOTICE
Funds on call and short notice
Funds on call and short notice represent short term deposits with commercial banks and
financial institutions.
11. OTHER INVESTMENTS
2009
Kshs.
2,055,637
13,540,000
27,390,225
42,985,862
Quoted investments
Unquoted investment
Investment in property
Page 26 of 41
2008
Kshs.
2,055,637
13,540,000
27,390,225
42,985,862
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
Less: Provision for diminution in
market value of quoted /unquoted investments
13,350,313
29,635,549
13,356,388
29,629,474
(i)
The quoted investments were valued at Kshs.891, 325 (2008 Kshs.885, 250) using the stock
market price for the same category. Thus a diminution in market value of Kshs.6, 075.
(ii)
The unquoted investment represents 80% of deposits in City Finance Bank converted into
shares following the restructuring of the Bank in year 2000. However, 90% of the unquoted
investment i.e. Kshs.12, 186,000 was provided for in year 2003 to reflect the market value of
these shares.
(iii)
The investment in property represents a piece of land with a building taken over by the Bank
from Thabiti Finance Ltd which was holding deposits for the Bank but failed to pay the same
on maturity. Title to the property is in dispute. The current occupant of the premises is
claiming allotees interest absolutely. The case is in court and the Bank expects a favourable
outcome since it has a vesting right in the property and is holding it with an intention of
selling.
12. DEBTORS, PREPAYMENTS AND OTHER ASSETS
2009
Kshs.
PCK
1,066,267,341
KP&TC
405,231,629
Accrued interest
200,251,381
Directors Loans
11,795,579
Staff loans
494,926,782
Staff debtors – Personal Development Loan
157,548,902
Staff Imprest
5,259,430
Visa Card debtors
135,506,331
MTS Trade Debtors
(72,175,872)
Stocks of stationery & drugs
24,472,479
ATM settlement Account receivables
1,749,250
Fixed deposits in ailing financial institutions 540,409.141
Commission Receivable from GoK
25,765,200
Pension Receivable from GoK
222,479,227
Prepaid GoK Pension – PCK Payroll
293,715,344
GoK Pension Cheques Receivable - PCK
240,019,613
Premium on Treasury Bonds (Prepaid)
90,624,193
Other Debtors and Prepayments
677,819,090
4,521,665,040
Provision for bad and doubtful debts:
Trade Debtors
(723,358,781)
Amounts due from subsidiary and deposits
in ailing financial institutions
(668,252,820)
3,130,053,439
2008
Kshs.
1,045,210,472
405,231, 629
149,654,673
16,387,214
396,888,435
169,357,041
3,893,166
129,912,321
25,554,378
23,495,654
4,492,440
540,409,141
63,163,800
222,479,227
523,845,746
181,754,268
99,698,574
856,086,048
4,857,514,228
(544,288,258)
(668,252,820)
3,583,973,151
The ailing financial institutions refer to those institutions placed under statutory management
of CBK (receivership and in liquidation). Accrual of interest on KP&TC excess deposits was
suspended with effect from July 2005.
Page 27 of 41
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
13. DEFERRED ASSET
2009
Kshs.
153,998
0
153,998
Balance brought forward
Receipts from Treasury
Balance carried forward
2008
Kshs.
153,998
0
153,998
This amount represent accumulated losses which by virtue of section 13 (1) of the
Kenya Post Office Savings Bank Act Cap 493B are recoverable from the Central
Government Consolidated Fund.
14. CAPITAL WORK IN PROGRESS
2009
Kshs.
0
Capital Work in Progress
This amount represents cost of ongoing refurbishment of branches
Page 28 of 41
2008
Kshs.
9,420,832
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
15. (a) FIXED ASSETS
Cost or Valuation
LAND
BUILDING
S
LEASEH
OLD
BUILDIN
GS
MOTOR
VEHICLE
S
FURNITUR
E
&
FITTINGS
ELECTRONI
C
OFFICE
EQPMT
NON
ELECTRONIC
OFFICE EQPMT
COMPUTER
HARDWARE
COMPUTER
SOFTWARE
DEPRE.RATE
NIL
2.5%
20%
25%
12.5%
20%
12.5%
20%
20%
COST 1.1.2009
143,000,000
705,587,699
3,100,000
44,763,936
171,208,621
118,893,685
56,238,791
346,066,228
333,286,495
1,922,145,455
18,944,886
1,026,600
55,663,334
ADDITIONS
-
-
-
-
24,099,946
9,036,320
2,555,582
TOTAL
DISPOSALS
COST 31.12.2009
DEPRECIATION
DEPRE.31.12.200
8
CHARGED
31.12.2009
143,000,000
-
-
2,365,000
-
-
-
-
2,365,000
705,587,699
3,100,000
42,398,936
195,308,567
127,930,005
58,794,373
365,011,114
334,313,095
1,975,443,789
-
117,424,640
3,100,000
44,963,936
81,808,892
62,046,896
39,126,695
224,008,064
266,222,239
838,501,362
-
17,639,692
23,146,785
19,961,746
7,019,550
44,919,578
27,302,720
139,990,071
-
-
DISPOSALS
DEPRE.
31.12.2009
-
-
-
135,064,332
3,100,000
2,365,000
42,398,936
-
-
-
-
2,365,000
104,955,677
82,008,642
46,146,245
268,927,642
293,524,959
976,126,433
NBV 31.12.2009
143,000,000
570,523,367
-
-
90,352,890
45,921,363
12,648,128
96,083,472
40,788,136
999,317,356
NBV 31.12.2008
143,000,000
588,163,059
-
-
89,399,734
56,846,788
17,112,096
122,058,164
67,064,256
1,083,644,098
Disclosure Note.
The Bank had a fleet of twenty eight (28) motor vehicles whose book value was nil as at 31/12/2009. They have not been re-valued since most of them have outlived
their useful economic value and are in the process of being replaced. Valuation will be carried out for purposes of disposal.
Page 29 of 41
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
15. (b) LAND AND BUILDINGS
2009
Land
Buildings Show Stand
Total
Kshs.
Kshs.
Kshs.
Kshs.
Long-term leasehold 122,000,000
672,687,699
0
794,687,699
Short-term leasehold 21,000,000
32,900,000 3,100,000
57,000,000
143,000,000 705,587,699
3,100,000
851,687,699
COST OR VALUATION
2008
Total
Kshs.
756,700,000
57,000,000
810,600,000
Included in short-term leasehold land and buildings is a property purchased in Mombasa. It is valued
at Kshs.45 million subject to extension of lease period by another 45 years from the current 10 years.
Procedures towards extension of the lease are in progress.
The figures used in the fixed assets schedule relate to 2002 valuation report carried out by professional
valuers.
16.
CREDITORS
Trade creditors
PCK Services rendered- OSS
PCK Encashed Warrants Payable
Transitorial Accounts - Postbank
Transitorial Accounts - Pension Warrants (PCK)
Transitorial Accounts - GoK Payroll (PCK)
Other creditors and accrued charges
2009
Kshs.
77,902,762
441,381,793
462,078,751
42,487,464
170,953,266
786,453,816
597,028,482
2,578,286,335
2008
Kshs.
112,579,165
398,320,480
462,078,751
591,418,514
170,953,266
746,099,644
545,273,991
3,026,723,811
PCK Services rendered- GoK Pension refers to amount claimable by Postal Corporation of Kenya
on disbursement of pension to pensioners. This has now been transferred to PCK Encashed Warrants
payable. Transitorial account is a holding account for money held by the Bank and PCK on behalf
of third party pending disbursement.
17
CUSTOMERS’ SAVINGS AND DEPOSIT ACCOUNTS
2009
Kshs.
5,339,737,422
948,476,119
57,361,389
1,167,229,720
848,126,216
158,069,053
291,159,211
Postbank Savings Account
Bidii Savings Account
STEP Account
Pension accounts (BST)
Premium Savings Scheme
Fixed Deposit Scheme
Save-As-You-Earn
Page 30 of 41
2008
Kshs.
6,039,314,387
976,574,456
49,649,035
778,180,273
844,600,204
211,633,733
265,987,562
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
2009
Kshs.
42,561,393
28,125,523
94,599,579
(2,730,149 )
4,851,308
1,441,369,655
3,473,941
40,138,939
281,606
10,462,830,924
Staff Salary Account
Postbank Junior Account
Salary Account
Non Scheme Account
Bidii Plus Account
Premium Plus Account
Bidii Junior Account
Corporate Clients
Independent Agent
18.
2008
Kshs.
47,560,138
14,408,188
28,673,574
4,263,909
1,582,043
79,374,502
604,350
0
0
9,342,406,355
BEARER BONDS
2009
2008
Kshs.
Kshs.
220,002,615
220,002,615
These were collections from the public for sales of Bearer Bonds on behalf of Central Bank of Kenya
(CBK). The funds were banked in Postbank Credit Limited (PCL) for onward transmission to the
CBK.
PCL was closed and put under liquidation by the CBK before the money was paid over to the latter.
The amount will be paid over to the CBK once these are received from the Liquidator.
19. FEES & COMMISSIONS
Account maintenance fees/Ledger fees
Salary crediting fees
Continuation fees
Premature withdrawal fees
Maintenance fees
Withdrawal fees
Visa fees
Card fees
MTS- Inbound & Intrabound commission
Statement Charge
Closure Fee
Page 31 of 41
2009
Kshs.
38,584
17,528,297
965,386
15,623,416
(216,300)
45,401,041
17,232,523
42,005,248
90,263,716
550,107
1,731,377
2008
Kshs.
237,458,296
38,735,708
3,335,861
17,143,160
116,444,742
39,109,311
15,406,451
36,178,934
97,630,219
498,933
4,377,826
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
2009
Kshs.
Upcountry Cheque Deposit Charge
Postage Fee
Commission from Higher Education Loans Board
Citibank commission
Pension commission
Miscellaneous fees & commission (others)
20.
3,418,943
818,941
686,702
2,590,385
72,583,280
109,237,631
420,459,277
2008
Kshs.
7,576,904
2,560,755
2,074,680
6,759,931
105,260,250
59,549,111
790,101,071
OTHER INCOME
Rental income- notional
Dividend income
Write back on Provision
Interest on bank accounts
Bonus from Western Union
Realised gain on sale of Forex
Consultancy fees
Agency based commission
Tender fees
Appreciation/Diminution in value of quoted investments
Write back on Dormant Account
Gain on sale of Asset
Sundry income
21.
INTEREST EXPENSE
Interest on:Postbank Savings Accounts
Bidii Savings Account
Premium Savings Account
Fixed Deposit Savings Account
Save As You Earn Account
Step Account
Pension Account
Customer Salary Account
Postbank Junior Account
Staff Salary Account
Bidii Plus
Premium Plus Account
Pamoja Account
2009
Kshs.
20,563,770
8,835
3,540,492
114,771
3,202,500
30,794,813
750,800
1,073,066
2,656,500
6,075
0
634,700
699,386
64,045,708
2009
Kshs.
49,895,959
22,905,055
26,856,477
4,958,920
5,098,854
1,102,949
764,928
170,950
506,651
15,732
68,323,535
83
180,600,092
Page 32 of 41
2008
Kshs.
0
37,500
5,084,110
1,194,479
38,986,761
32,671,072
673,634
325,673
177,000
-182,375
426,900
0
2,398,669
81,793,423
2008
Kshs.
69,473,746
28,674,392
24,341,540
5,006,586
6,823,732
199,438
28,852
64,330
38,424
0
0
257,874
0
134,908,915
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
22.
ADMINISTRATION EXPENSES
Directors fees
Staff costs
Printing and stationery
Debt collection
Postage & telephone
Computer expenses
Motor Vehicle Expenses
Audit fees
Donations and subscriptions
Legal and professional fees
Electricity and water
Cleaning and Sanitation
Special Projects Launching
Newspapers and Periodicals
Transportation Costs
Symbols Implementation
Miscellaneous expenses
23.
ESTABLISHMENT EXPENSES
Security expenses
Insurances
Office rent
Land rent and rates
Repairs and maintenance
Service charge
Agency fees - PCK/Others
Licences
Flower maintenance
24.
SELLING EXPENSES
Publicity and advertising
ASK show expenses
Page 33 of 41
2009
Kshs.
2,386,264
1,519,811,077
8,231,301
1,180,376
49,565,051
4,130,703
12,426,393
3,000,000
3,763,491
4,987,809
24,315,276
10,181,670
53,520
138,252
368,000
0
0
1,644,539,183
2008
Kshs.
2,348,999
1,268,584,793
13,786,975
74,674
63,907,253
5,582,110
14,427,119
2,000,000
2,994,057
4,319,311
18,800,028
9,800,715
406,799
557,523
59,000
27,645
512
1,407,677,515
2009
Kshs.
80,311,819
11,497,326
75,571,071
1,110,100
58,307,846
11,097,426
45,180,662
13,607,787
30,419
296,714,457
2008
Kshs.
81,010,851
12,215,893
93,189,947
1,347,606
64,686,935
12,348,625
(46,691,502)
29,728,831
49,370
247,886,556
2009
Kshs.
78,332,404
479,026
78,811,430
2008
Kshs.
47,094,506
1,578,459
48,672,965
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
25.
BAD AND DOUBTFUL DEBTS - PROVISIONS
Visa card debtors
Corporate Scheme
OSS Scheme
26.
2009
Kshs.
1,924,309
76,897,441
42,789,266
121,611,016
2008
Kshs.
3, 050,369
10,000.000
35,739,122
48,789,492
PROFIT/(LOSS) FOR THE YEAR
2009
2008
The (Loss)/profit for the year is stated after charging:
Directors fees
Audit fees
Depreciation
Provident fund contribution
Pension scheme contribution
Diminution in value of quoted investments
and after crediting: Dividends
Appreciation in value of quoted investment
27.
CASH AND CASH EQUIVALENTS
Bank and cash balances (net)
Deposits in banks and Financial Institutions
Treasury Bills and Bonds
Kshs.
2,386,264
3,000,000
139,990,071
33,130,422
151,324,877
0
8,835
6,075
2009
Kshs.
809,362,668
309,741,025
10,075,321,034
11,194,424,727
Kshs.
2, 349,000
2,000,000
149,845,083
3, 235,627
99,468,135
182,375
0
37,500
0
2008
Kshs.
1,147,630,736
284,100,000
8,720,825,271
10,152,556,007
For the purposes of the cash flow statement, cash and cash equivalents refer to: 1.
Bank and cash balances net of bank overdraft.
2.
Deposits in commercial banks and financial institutions
3.
Treasury Bills, treasury and corporate bonds as at the balance sheet date.
28.
(i)
CONTINGENT LIABILITIES
Kenya Post Office Savings Bank Employees Pension Trust Fund.
An actuarial valuation of the Bank’s funded Pension Trust Fund as at 31st December 2006 was carried
out by Alexander Forbes Financial Services (EA) Limited. The report by the actuaries revealed a past
service deficit of Kshs.467.9 million as at 31st December 2006. Though the Bank has converted to a
defined contribution scheme, the defined benefit scheme has not been closed until the above deficit
has been paid in full by the employer.
Page 34 of 41
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
(ii)
KP &TC Charges for Services Rendered
The KP&TC was claiming Kshs.35, 240,661.18 owing as at 30th June 1999 (at the time it split
into Telkom (K) Ltd, Communication Commission of Kenya and Postal Corporation of
Kenya). The provision in the accounts then was Kshs.14, 868,291.35. No provision has been
made in these accounts for the difference (Kshs.20, 372,370.45) as discussions are in progress
to resolve the dispute, and the directors are of the opinion that the Bank will obtain a
favourable result.
29.
CAPITAL COMMITMENTS
Authorised and contracted for
Authorised but not contracted for
2009
Kshs.
7,809,734
2,071,965
9,881,699
2008
Kshs.
28,675,742
0
28,675,742
Capital Commitments relate to computer hardware, software, advertisement and renovation of
branches.
Page 35 of 41
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2009....(Continued)
30.
LIQUIDITY RISK
The table below analyses assets and liabilities into relevant maturity groupings based in the remaining period as at 31 December 2009 to the contractual maturity date.
Matured
A. Assets
809,362,668
Bank and Cash Balances
Matured in less than
a month
1 months less than
3 months
3 months less than
6 months
6 months less than
1 year
1 year less than 3
years
3 years less than 5 years
over 5 years
Total
-
-
-
-
-
-
-
809,362,668
3,924,369,267
Investment in T/bills + Bonds
-
-
1,200,000,000
382,050,271
905,000,000
375,725,000
3,288,176,496
10,075,321,034
Funds on call and short notice
-
309,741,025
-
-
-
-
-
-
309,741,025
Other Investment
-
-
-
-
-
-
-
29,635,549
29,635,549
1,421,993,665
3,130,053,439
Debtors, Prepayments and other Assets
428,144,362
308,336,844
57,961,269
132,718,911
287,876,406
149,255,397
343,766,585
Deferred Assets
-
-
-
-
-
-
-
153,998
153,998
Capital W.I.P
-
-
-
-
-
-
-
-
-
Fixed Assets
-
-
-
-
-
-
-
999,3,17,356
999,317,356
Total Assets
1,237,507,030
618,077,869
1,257,961,269
514,769,182
1,192,876,406
524,980,397
3,631,943,081
6,375,469,835
15,353,585,069
Creditors
1,588,405,215
362,680,712
346,124,204
279,156,916
-
1,919,288
-
-
2,578,286,335
Premium Bonds
7,889,300
-
-
-
-
-
-
-
7,889,300
8,277,915,227
763,292,151
401,609,112
371,205,923
233,491,343
415,317,168
-
-
10,462,830,924
B. Liabilities and Reserves
Customers’
accounts
Savings
and
Deposit
Gok Pension Reserve Fund Account
684,832,243
684,832,243
Bearer Bonds
-
-
-
-
220,002,615
-
-
-
220,002,615
Reserves
-
-
-
-
-
-
-
471,403,491
471,403,491
Retained profits
-
-
-
-
-
-
-
928,340,161
928,340,161
Total Liabilities and Reserves
10,559,041,985
1 125,972,863
747,733,316
650,362,839
453,493,958
417,236,456
-
1,399,743,652
15,353,585,069
A - B Liquidity GAP
(9,321,534,955)
(507,894,994)
510,227,953
(135,593,657)
739,382,448
107,743,941
3,631,943,081
4,975,726,183
0.00
Customers’ Savings and deposits accounts relate to Savings and fixed account balances. Although classified under this band, previous experience has shown these to be stable and of long term in nature.
Page 36 of 41
KENYA POST OFFICE SAVINGS BANK
NOTES TO THE FINANCIAL STATEMENTS....(Continued)
FOR THE YEAR ENDED 31st DECEMBER 2009
31.
CONSOLIDATION
Consolidated Accounts are not prepared as the bank’s wholly owned subsidiary, Postbank Credit Limited, is
under liquidation.
32.
TAXATION
Kenya Post Office Savings Bank is exempt from Corporation Tax under Income Tax Act Cap 470 of the laws
of Kenya.
33.
COMPARATIVES
Where necessary, comparative figures have been adjusted to conform to reporting under IFRS.
34.
EMPLOYEES
The average number of employees during the year was 1,129 (2008 -1,180).
35.
INCORPORATION
The bank is incorporated under the Kenya Post Office Savings Bank Act (Cap 493 B) of the laws of Kenya.
36.
CURRENCY
These financial statements are presented in Kenya shillings (KShs), which is the bank’s functional currency.
Items included in the financial statements are measured using the currency of primary economic environment
in which the bank operates i.e. Kenya shillings.
Page 37 of 41
KENYA POST OFFICE SAVINGS BANK
NETWORK OF BRANCHES AND SUB-BRANCHES
HEAD OFFICE
Post Bank House
Banda Street
P.O. Box 30311 - 00100
Tel: (020) 2229551-6 Ext. 155 Fax 341557
NAIROBI
Market Street Branch:
P.O. Box 30311 - 00100
Tel: (020) 2229551-6 Ext. 237 Fax 341562
NAIROBI
Customer Service Centre:
P.O. Box 30311 - 00100
Tel: (020) 2229551-6 Ext. 359 Fax 210593
NAIROBI
Eastleigh Branch:
P.O. Box 30313 - 00100
Tel: (020) 6761892 Fax 6761892
NAIROBI
Garissa Branch:
P.O. Box 745
Tel: (046) 2169 Fax 3194
GARISSA
Githurai Branch:
P.O. Box 30311- 00100
Tel: (020) 811032 Fax 811032
NAIROBI
Kiambu Branch:
P.O. Box 145
Tel: (066) 22913 Fax 22914
KIAMBU
Kikuyu Branch:
P.O. Box 30311 - 00100
Tel: (066) 31630 Fax 31630
KIKUYU
Limuru Branch:
P.O. Box 170
Tel: (066) 71293 Fax 72278
LIMURU
Mwingi Branch:
P.O. Box 510
Tel: (044) 22308 Fax 22308
MWINGI
Ngara Branch:
P.O Box 30313 - 00100
Tel: (020) 3744837 Fax 3744837
NAIROBI
Ruiru Branch:
P.O. Box 190
Tel: (067) 54320 Fax 55441
RUIRU
Uthiru Branch:
P.O. Box 30313 - 00100
Tel: (020) 631927 Fax 631927
NAIROBI
Westland Branch:
P.O. Box 30313- 00100
Tel: (020) 4440581, 4450965
NAIROBI
Thika Branch:
P.O. Box 1819
Tel: (067) 31193 Fax 30076
THIKA
Karuri Branch
P.O. Box 30311 – 00100
Tel: (066) 51683 Fax 51685
NAIROBI
Matuu Branch
P. O. Box 30311 - 00100
Tel: (067) 4355282 Fax 4355283
NAIROBI
NAIROBI NORTH REGION
NAIROBI SOUTH REGION
Afya Centre Branch:
Tom Mboya Street
P.O. Box 30311 - 00100
Tel: (020)2 229551-6 Ext. 322, 340-2, 330-1
NAIROBI
Cannon House Branch:
Parliament Road
P.O. Box 30311 - 00100
Tel: (020) 2229551-6 Ext. 239, 319
NAIROBI
Enterprise Road Sub Branch:
P.O. Box 30311 - 00100
Tel: (020) 2229551-6 Ext. 270
NAIROBI
EPZ - Athi River Branch:
P.O. Box 30311 - 00100
Tel: (045) 22526 Fax 22518
NAIROBI
Jogoo Road Branch:
P.O. Box 30313 – 00100
Tel: (020) 2229551-6, 552027 Fax 552027
NAIROBI
Karen Branch:
P.O. Box 30313 - 00100
Tel: (020) 884547 Fax 884548
NAIROBI
Kenyatta Market Branch:
P.O. Box 30313 - 00100
Tel: (020) 2719582,
NAIROBI
Kitui Branch:
P.O. Box 668
Tel: (044) 22993 Fax 23046
KITUI
Machakos Branch
P.O. Box 944
Tel: (044) 20261 Fax 24112
MACHAKOS
Nacico Branch:
P.O. Box 30311 - 00100
Tel: (020) 344078
NAIROBI
Ngong Hills Sub Branch:
P.O. Box 41047
Tel: (045) 212876
NGONG
Ronald Ngara Branch:
P.O. Box 30313 - 00100
Tel: (020) 2229551-6 Ext. 269, 349
NAIROBI
Tom Mboya Branch:
P.O. Box 30313 - 00100
Tel: (020) 2230428 Fax 230428
NAIROBI
Viwandani Sub Branch:
P.O. Box 30311 - 00100
Tel: (020) 2229551-6 Fax 553356
NAIROBI
Wabera Street Branch:
P.O. Box 30311
Tel: (020) 2229551-6 Ext.320
NAIROBI
Kangundo Branch:
P.O. Box 30311
Tel: (044) 621150, Fax 621148
KANGUNDO
Wote - Makueni Branch:
P.O. Box 944
Tel: (044) 33371, Fax 33388
MAKUENI
P.O. Box 944
Ngong Branch:
P.O. Box 30311 – 00100
Tel: (045) 41047 Fax 41048
NAIROBI
Ongata Rongai Branch
P.O. Box 30311 – 00100
Tel: (045) 24178 Fax 24179
NAIROBI
Kibwezi Branch
P.O. Box 30311 - 00100
Tel: (044) 3500422 Fax 3500432
NAIROBI
Emali
P.O. Box 30313-00100
Tel: (020) 2445490
NAIROBI
Dandora
P.O. Box 30313-00100
Tel: (020) 2405489
NAIROBI
Mlolongo
P.O. Box 30313-00100
Tel: (045) 2445491
NAIROBI
Kajiado
P. O. Box 30313 - 0100
Tel: (020) 2455105
NAIROBI
Embu Branch:
P.O. Box 1245
Tel: (068) 30740 Fax 30727
EMBU
Karatina Branch:
P.O. Box 246
Tel: (061) 72537 Fax 72977
NYERI
Kerugoya Branch:
P.O. Box 1020
Tel: (060) 21893 Fax 21833
KERUGOYA
MT. KENYA REGION
Chuka Branch:
P.O. Box 616
Tel: (064) 630443 Fax 630064
CHUKA
Page 38 of 41
KENYA POST OFFICE SAVINGS BANK
NETWORK OF BRANCHES AND SUB-BRANCHES (continued)
Meru Branch:
P.O. Box 3270
Tel: (064) 30381 Fax 32573
MERU
Murang’a Sub- Branch:
P.O. Box 122
Tel: (060) 31083 Fax 31038
MURANG’A
Nanyuki Branch:
P.O. Box 416
Tel: (062) 32210 Fax 32820
NANYUKI
Waruguru Branch
P.O. Box 1245
Tel: (060) 48236 Fax 48081
EMBU
Maua
P.O. Box 767
Tel: (064) 21150
MAUA
Isiolo
P.O. Box 696
Tel: (064) 52355
ISIOLO
Chaani Branch:
P.O. Box 90563
Tel: (041) 3434077 Fax 3433485
MOMBASA
Likoni Branch:
P.O. Box 90563
Tel: (041) 2451070 Fax 2451017
MOMBASA
Kilifi Branch:
P.O. Box 90563
Tel: (041) 522399 Fax 522399
MOMBASA
Malindi Branch:
P.O. Box 5196
Tel: (042) 30599 Fax 20512
MALINDI
Moi Avenue, Mombasa, Branch:
P.O. Box 90563
Tel: (041) 2230969, Fax 2230945
MOMBASA
Mtwapa Branch:
P.O. Box 90563
Tel: (041) 5486939 Fax 5486470
MOMBASA
Kisauni Branch:
P.O. Box 90563
Tel: (041) 474000 Fax 474333
MOMBASA
Mariakani Branch:
P.O. Box 90563
Tel: (041) 33425, Fax 33430
MOMBASA
Voi Branch:
P.O. Box 452
Tel: (043) 30253 Fax 30253
VOI
Savani House, Mombasa, Branch:
Digo Road
P.O. Box 90563
Tel: (041) 2314424 Fax 2223771
MOMBASA
Ukunda Branch:
P.O. Box 90563
Tel: (040) 3203248 Fax 3203248
MOMBASA
Taita Taveta
Tel: (043) 5352228
Fax: (043) 5352124
MOMBASA
Bomet Branch:
P.O. Box 778
Tel: (051) 22439 Fax 22440
LITEIN
Gilgil Branch:
P.O. Box 30313
Tel: (050) 4002143, Fax 4002144
GILGIL
Eldoret Branch:
P.O. Box 2270
Tel: (053) 2062295 Fax 2063025
ELDORET
Kabarnet Branch:
P.O. Box 442
Tel: (053) 22354 Fax 21130
KABARNET
Kapsabet Branch:
P.O. Box 800
Tel: (053) 52535 Fax 62497
KAPSABET
Kericho Sub Branch:
P.O. Box 1031
Tel: (052) 30378 Fax 32115
KERICHO
Kitale Branch:
P.O. Box 821
Tel: (054) 30394 Fax 31297
KITALE
Molo Branch:
P.O. Box 4199
Tel: (051) 721561 Fax 721097
MOLO
Naivasha Branch
P.O. Box 675
Tel: (050) 2021335 Fax 2020200
NAIVASHA
Nakuru Branch:
P.O. Box 4199
Tel: (051) 2215710 Fax 2211400
NAKURU
Nandi Hills Branch:
P.O. Box 321
Tel: (053) 643146 Fax 643146
NANDI HILLS
Narok Branch:
P.O Box 634
Tel: (050) 22030 Fax 222425
NAROK
Bungoma Branch:
P.O. Box 944
Tel: (055) 30418 Fax 30318
BUNGOMA
Busia Branch:
P.O. Box 183
Tel: (055) 22278 Fax 22157
BUSIA
Homa Bay Branch:
P.O. Box 203
Tel: (054) 22388 Fax 21466
HOMA BAY
Kakamega Branch:
P.O. Box 2444
Tel: (056) 30630 Fax 31069
KAKAMEGA
Kisii Branch:
P.O. Box 740
Tel: (058) 30800 Fax 30341
KISII
Kisumu Branch:
Kenyatta Highway
P.O. Box 183
Tel: (057) 2023955 Fax 2021358
KISUMU
Mumias Branch:
P.O. Box 523
Tel: (056) 641410 Fax 641233
MUMIAS
Siaya Branch:
P.O. Box 203
Tel: (057) 321213 Fax 321213
SIAYA
Suna - Migori Branch:
P.O. Box 1059
Tel: (059) 20857 Fax 20034
MIGORI
Luanda Branch:
P.O. Box 859
Tel: (057) 351230 Fax 351232
LUANDA
Webuye Branch:
P.O. Box 1014
Tel: (055) 41027 Fax 41025
WEBUYE
Sare Awendo
P. O. Box 183
Tel: (059) 43417 Fax 43417
AWENDO
Nyeri Branch:
P.O. Box 246
Tel: (061) 2034348 Fax 2032189
NYERI
COAST REGION
Watamu
P. O. Box 90563
Tel: (041) 200115
MOMBASA
RIFT VALLEY REGION
Nyahururu Branch
P.O. Box 342
Tel: (065) 32251 Fax 32857
NYAHURURU
WESTERN REGION
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KENYA POST OFFICE SAVINGS BANK
NETWORK OF BRANCHES AND SUB-BRANCHES (continued)
Keroka
P.O. Box 138
Tel: (058) 520037 Fax 520037
KEROKA
In addition, 350 Post Office outlets and 46 Appointed Agents also carry out our services.
NB. Branch refer to independent outlet while sub branch refer to branch within Postal Corporation of Kenya premises.
Page 40 of 41