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Saccos urged to merge and utilize resources for the benefit of members

BUSINESS
By Standard Reporter | November 17th 2014

Nairobi, Kenya: With an annual growth of 17 percent, Saccos have seen a lot of changes over the past few years with more Kenyan benefiting from various services that they offer.

“At our current stage of maturity, our cooperatives must merge in order to efficiently utilize the resources that we have at hand in serving our members effectively.” Said Cooperative Alliance of Kenya (CAK) CEO, Daniel Marube.

Speaking during the Chai Sacco Share Capital launch, Mr. Marube highlighted that Cooperative movement are a key contributor to Kenya’s economic growth.

“The cooperative movement contributes up to 45% of Kenya’s total GDP and boast of 13 million members who directly or indirectly derive their livelihood from the sector. This shows the importance of the sector in financial inclusion and attainment of the Vision 2030 goals.” Said Mr. Marube.

 As highlighted by Treasury Secretary Henry Rotich, a major source of financing in the property sector comes from Saccos. This shows a growing interest and understanding by the members and the general public on how to utilize cooperatives to their advantages.

  Mr. Marube said due to the growing membership in cooperative, Saccos need to develop new services and product offering in order to keep up with the evolving demands of the cooperative’s members and effectively serves them.

 Mr. Marube lauded the move by Chai Sacco management for its continuing efforts to grow its membership and capital base while maintaining a high level of professionalism in it services delivery.

 Chai Sacco, through their recently launched Share capital mobilization seek to grow it total asset base by an ambitious 400 percent so as to achieve it target of 6 billion shillings by 2018.

 Speaking on the Sacco’s plans, Chai Sacco Chairman, Boniface Ayub said, “Over the next few months, we will kick off a vigorous marketing campaign to raise awareness around our product & service offering. This will go a long way in helping develop and tailor-make products to cater to our evolving clientele.”

 Having started by offering financial services to the KTDA and Its (KTDA) managed tea factories; the Sacco has in the recent past encouraged and recruited members from other institutions. Currently, the Sacco boasts of 9,000 members and total assets of Ksh. 1.5 billion.

 “I hope this move reaffirm our strategic direction and highlight our commitment to growing our institution in this highly competitive financial sector. As a model savings and credit institutions, we have clearly defined and emphasized the steps required to achieve our goals in accordance with our strategic plan.” Added Mr. Ayub.

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