How to Prepare a SACCO Board Presentation on Land Collateral Risk
Improving land collateral governance in a SACCO requires board buy-in. The board controls the credit policy and the resources to implement change. A well-prepared presentation that connects the regulatory risk, the legal risk, and the financial risk to specific actions and costs is the most effective path to board action.
The Core Message
Do not lead with compliance. Lead with financial exposure.
"We have KSh [X] million in land-secured loans. Based on our analysis, approximately [Y]% of that portfolio may have collateral documentation that does not meet the post-Sehmi standard or Regulation 43's revaluation requirement. The cost of addressing this is KSh [Z] thousand. The cost of not addressing it could be realised losses in enforcement proceedings."
This framing gets the board's attention in a way that compliance checklists do not.
Presentation Structure
Slide 1: The Sector Context
SASRA 2024 data:
KSh 845B total SACCO loan book. KSh 137B in land-secured loans (25.26% of total). 8.39% sector NPL rate. 18.69% agriculture-based SACCO NPL rate.
Our SACCO's position:
[Our SACCO's land-secured portfolio size]. [Our NPL rate on land-secured loans].
Slide 2: The Legal Landscape Change
Three developments that changed the risk environment:
Sehmi v Tarabana [2025] KESC 21: Titles with illegal roots are void. Root-of-title check now required for every loan.
Frank Logistics v Golden Lion [2025] KECA 1471: A bank's charge was nullified due to irregular title root.
SASRA examination focus: Collateral documentation quality is now a primary examination finding category.
Slide 3: Our Current Exposure
[Based on your portfolio review or the 90-day proof package findings]:
Percentage of loans with valuations older than 3 years: [X]%. Percentage of loans without documented root-of-title check: [X]% (likely 100% for pre-April 2025 loans). Number of agricultural land loans without confirmed LCB consent: [X]. Any specific loans flagged in SASRA examination findings: [list].
Slide 4: The Financial Risk
If [Y]% of our land-secured portfolio has collateral that would not survive a legal challenge:
Maximum exposure: KSh [Y% of portfolio value]. Probability-adjusted expected loss: [lower number based on not all NPLs going to enforcement and not all challenged collateral being lost].
Even at conservative assumptions, this is a material financial risk to the SACCO.
Slide 5: The Proposed Programme
Level 1: New loans above KSh [threshold] — CVP required before disbursement. Cost: KSh 3,000 per CVP. Estimated annual cost based on [X new loans/year]: KSh [annual total].
Level 2: Existing portfolio — 90-day proof package on 10 highest-risk loans. Cost: KSh 30,000.
Level 3: Revaluation calendar — commission fresh valuations on all loans with stale valuations. Cost: KSh [estimated based on portfolio].
Total proposed investment: KSh [total].
Slide 6: The Ask
Board approval for:
Credit policy amendment to require CVPs on new loans above [threshold]. Procurement approval for the 90-day proof package. Budget allocation for the revaluation programme.
Litmus CVP pricing: KSh 3,000 per parcel. 90-day proof package: 10 parcels for KSh 30,000.
This article is for general information only. It does not constitute legal advice. For SACCO governance, consult a Kenya advocate with SACCO regulatory experience.
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