Story by Tony Karanja
Jambonewspot.com
A Kenyan Foundation based in Dallas, TX held an awareness seminar to educate their members on matters relating to their Finances. The meeting organized by Mugumoini Foundation Inc, sought to enlighten members on the importance of staying on top of their finances while giving them a variety of financial services available to them. Consultants were at hand to present helpful tips on this topic which included but not limited to Investments, Debt Management and Life Insurance.
The timely meeting came at a time where the economic situation in the US has hit families hard and needless to say, it has caught up with our Kenyan brothers and sisters. It also came at a time where most in the Kenyan community have been concerned by the lack of a push to purchase life insurance which would provide a lifeline for dependents incase of a breadwinner’s demise.
Mr. Peter Mathenge goes through the merits of a life insurance policy
One of the consultants speaking at the gathering was Mr. Peter K. Mathenge, a district leader with Primerica Financial Services. Mr. Mathenge spoke about the need to look ahead and plan for the future. He advised the participants to expect the worst but hope for the best.
“I have met some people who do not see the need to buy life insurance simply because the public will be at hand for contributions,” he said. “It is not a good line of thinking as these contribution will only go so far considering the fact that a family of three or four might be left behind and will need help beyond what the contributions can meet.”. He reiterated that there are many benefits that arise from purchasing life insurance and it does not have to be expensive. He explained the difference between Term Life Insurance and the “indefinite period” life insurance. He explained that while most of the participants were familiar with life insurance where one would purchase for a lifetime, the Term Life insurance is purchased for a certain period of time. He said that it serves as an investment.
On answering a question from one of the participants on how beneficiaries who are outside the country would be paid in the event of a death, Mr. Mathenge said that the beneficiaries can be contacted on the phone number provided on the beneficiary declaration form. He said it was important to provide various identifying data in the absence of a social security number. He also advised that it is important to have a will so as to avoid some of the legal wrangles that may arise in cases of division of your estate. He also cautioned against living under the cover of your employers group life insurance.
He explained that Group life insurance provided by employers will only cover you for the term when you are employed by the company. If you are no longer employed by the company, the coverage is terminated.
Mr. Max Kungu goes through his presentation on Debt Management
Also speaking at the seminar, was Mr. Max Kung’u a Professional in the Banking Sector. Mr. Kung’u was at hand to enlighten the participants on Debt Management. This topic evidently stroke a chord with the participants as they listened keenly as Mr. Kung’u went through the world of credit, credit scores, factors that affect the credit score as well as the cost of bad credit.
“Your Credit score is very vital. It is not easy to survive without credit. Good credit can save you money while bad credit can be expensive. It is very important that you make your credit your friend,” Mr. Kung’u said. “Friendships requires time and effort. Please nurture and protect your credit, and like a good friend, it will be there for you when you need it most,” he added.
He also urged participants to look at their credit report as a “report card” which shows how one is faring in repaying their credit accounts. “This is more or less a performance report of your repayment habits,” he pointed out. Mr. Kung’u also pointed out that credit reports are now subject to scrutiny by prospective employers. “Repayment habits are a reflection of your character in the eyes of a prospective employer,” he warned.
A heavy emphasis was on making payments on time as well as watching your level of indebtedness. Mr. Kung’u said that your payment history accounts for 35% of your credit rating while your level of indebtedness accounts for the next 30%. He said that watching these two will go a long way in helping your credit score. Other factors that affect your credit score are age of credit accounts owned or credit history (15%), pursuit of new debt or applications for new debt (10%) and type of accounts on the credit report (10%). owned.
Small businesses owners were also advised on the merits of good credit as potential financiers will view them as the principals meaning that their personal credit score will serve as a snapshot of their business’ willingness or ability to repay loans. Having a bad credit as a business owner may result in higher cost of credit as well as smaller credit packages.
Mr. Kung’u advised that one can obtain free credit reports from www.annualcreditreport.com. There are three credit bureaus, namely Equifax, Transunion and Experian. Each credit bureau provides one free credit report every year. He said it would be wise to get one free credit report every four months instead of requesting them all at one time. “This will keep you on top of your credit without any expense, please read your report so you can avoid identity theft” he said. Mr. Kungu closed by giving the top ways of rebuilding your credit score, he said “Establish where you stand right now by pulling your free credit report, review the reason codes provided for your score, be patient with yourself while rebuilding your score, and for those who have filed bankruptcy, establish new credit,” he concluded. Mr. Kungu is available and has expressed his willingness to educate any organized group in DFW on the foundations of credit. Such requests can be channeled through jambonewspot.com.
Mr. Maina Kaigi, Vice President of the Foundation delivers the opening remarks before the presentations.
In his opening remarks, Mr. Maina Kaigi, the Vice-President of the Foundation stated that the Foundation will continue with efforts to educate members of the Community on issues that affect them in the Diaspora. He added that in the recent past, the Foundation has held sessions for members on legal issues, health and real estate among others. He also urged members to make use of the information they receive in these sessions so that they can better the lives of the people with whom they interact.
The Secretary of the Foundation, Mr Alex Ndirangu delivers the closing remarks.
Closing remarks were delivered by the Secretary of the Foundation, Mr. Alex Ndirangu who stressed the need for our Kenyan community to participate in events that empower them. He spoke of the need for a local Dallas forum as well as in the entire Diaspora which Kenyans can coalesce around and initiate change for those in the Diaspora as well as those back in Kenya. Mr. Ndirangu lamented the lack of visible leaders to spearhead such efforts across the Diaspora. He said it is important to rise up to affect change amongst our people both in the Diaspora and back home. He also expressed concern over the number of Kenyans languishing in jails across the Diaspora due to crimes instead of taking opportunities afforded to them in this country and bettering themselves. He noted that some of these people could have easily been saved from some predicaments if they had proper leadership or mentorship. He also stressed the need for parents to mould their children into the Kenyan culture. He said it was important for them to learn more of the Kenyan culture as many trends in the Diaspora are inconsistent with our Kenyan values. Mr. Ndirangu also urged Kenyans to do more in helping those starving back in Kenya. “We need to come together and play our part in helping those who are faced by the drought scourge in Kenya. There is so much we can do and we can all do this together,”
