How friend’s request for soft loan gave root to successful business

Mr Obadiah Maina, 35, the founder of Good Life Sacco, which currently has 60 employees, more than 5,000 members and an asset base of Sh20 million. [Photo: James Wanzala/Standard]

By James Wanzala

Kenya: He was raised in a Christian home and credits this with teaching him the value of patience, a virtue that has proved indispensable in his entrepreneurial journey.

Mr Obadiah Maina, 35, has risen from the turbulence of abject poverty in Mathira, Nyeri County, to set up a financial institution.

Three years ago, the idea of owning a savings and credit co-operative (Sacco) was not even in his wildest dreams.

Then, Mr Maina was an instructor at a Nairobi-based IT college, and got paid just enough to get by.

To supplement his income, he started selling vegetables. His side business did surprisingly well, and he was soon able to buy a pickup to ease the transport of groceries.

“After selling groceries for a while, I sold the pickup. Soon after, a friend of mine asked me to lend him money, which he said he would repay with interest. This got me thinking that there must be a financing need that has been overlooked by existing institutions,” he said. 

He decided to research what it would take to open a Sacco. He wanted to enable people pool their money and lend it on to individuals in need of affordable credit.

Big dreams

Further, from his experience as a grocer, he knew micro and small enterprises find it difficult or too costly to borrow money from mainstream financial institutions, so he felt sure there would be a market for his services.

To reflect his business’ aspirational nature, he named it Good Life Sacco. He spread the word about his company, and within six months, had 30 members. He decided to quit his job.

“I wanted to give my Sacco my full attention to see it grow to a fully fledged bank in a few years’ time, even as we opened more branches across the country,” Maina said.

Today, three years later, his firm has over 5,000 registered members, an asset base of Sh20 million and branches in Nairobi, Thika, Nyeri and Nyahururu.

“We give loans at 12 per cent interest, and our members can request three times the amount they have saved with us.”

Maina added that marketing his Sacco has not been a challenge as the Government has encouraged the co-operative movement. He is also working with the Chamber of Commerce.

International investors

“The Chamber of Commerce has given us networking opportunities to access funds from companies and individuals abroad who are interested in investing in Kenya.”

To join Good Life Sacco, one is required to pay a registration fee of Sh1,000 and must be aged over 18. The minimum amount one can contribute monthly is Sh1,000.

“I am trying to change the lives of members of our society by ensuring they get the best services,” said Maina

The Sacco, which has 60 employees, also offers junior accounts for children, group, business, fixed deposit and personal accounts, as well as accounts for private institutions, such as churches.

“Informal sector institutions, like churches, have been left unattended, yet there is huge potential lying there,” he said

And he is still looking to improve the sacco.

“We will soon launch a computerised system that will allow members check their account balances wherever they are. We are working under Co-operative Bank, which has given us a lot of guidance.

“We are also working closely with Co-operative Insurance Company (CIC) to offer medical cover under Good Life Health,” Maina said.

His advice to young entrepreneurs?

“Be more innovative and use the talents you have to make a living, and it will definitely pay off.” 

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