Phase 4: FEP Mpya
Having set up the foundations, social infrastructure (Power of Many) and corporate structures, we entered phase 4. June 2018 marked the new beginning of phase 4. This phase begun with the creation of a new strategic plans for the years 2019 – 2021 for all the three arms of FEP Group i.e. FEP Society, FEP Holdings, and FEP Sacco.
Particularly for FEP Holdings (FEP’s commercial arm), strategic and operational challenges which had inhibited FEP Holdings’ capacity to deliver on its promise to investors were clearly identified and measures put in place to deal with them.
Five (5) principles to guide the success of FEP Holdings were identified, and they include;
- Strong governance at the company and the FEP Society level
- Competence at the board and company level
- A clear investment strategy and supporting policies
- A cohesive and vibrant membership base
- A focus on achieving investment returns and growing the asset base
A new FEP Holdings Board has been put in place since to steer the company (FEP Holdings) in its recovery path, and eventually profitability. The company also gave a commitment to its shareholders as below;
- Grow total assets from Ksh. 4.15B to Ksh. 9.5B in three years
- Achieve an investment return of 20% per annum by end of 2021
- Pay dividends of 10% - 25% of 2021 net profits after tax (i.e. dividends will be paid in 2022)
- Achieve an employee engagement level of 85% by 2021
In an effort to live by our slogan of investing innovatively and sustainably, we have separated the revenue generators (investments) into Real Estate, Savings & Loans, Insurance and Hotels. The other subsidiaries i.e. Fountain Schools, Fountain Technologies, and Security will continue to run. We however, take cognizance that we are three years behind schedule and we have a 4billion shortfall from our projections which hampers our speed and power in which we are supposed to be operating at consequently delaying our arrival time to the promised destination unless it’s addressed in a sober way. You can’t have your cake and eat it too.
We appreciate investors’ frustrations, but we let’s be encouraged that we have come a long journey already. We therefore cannot give up hope now despite the setbacks. FEP remains committed to delivering on the promise we gave you our esteemed investors.
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