Nairobi: The Sauti Cooperative Society (SACCO) has launched an aggressive recruitment drive to boost membership, which has drastically dwindled due to the massive retirement of civil servants who form the bulk of shareholders. The Sacco Chairman, Elly Ndwiga, expressed concerns over the current membership numbers falling below the set targets, prompting the creation of a marketing department aimed at increasing member numbers by targeting younger employees.
According to Kenya News Agency, the Sacco plans to diversify its recruitment strategy to include both the private and informal sectors while retaining retirees to uptake various products on offer. Ndwiga assured members that the society is opening new avenues by introducing collaterals to complement the requirements for guarantors, addressing a major challenge faced by loan seekers in the jua kali sectors.
He highlighted that the Sacco is moving in the right direction, with the uptake of loans by members increasing by nearly Ksh30 million over the past year, attributed to the extension of repayment periods for development and supernormal loans from four to five years. Ndwiga informed delegates at the 48th annual meeting in Nairobi that plans are underway to further extend the repayment period of supernormal loans to six years to encourage loan uptake, which is currently below projections.
During the meeting, Nairobi Cooperative Chief Officer George Mutiso emphasized the importance of servant leadership as a cornerstone of administrative virtues within SACCOs. He urged prudent management of society’s affairs, especially during the current economic challenges facing Kenyans. Mutiso also advised SACCOs planning to open a FOSA to ensure members can access all services typically available in a bank.
Dolphin Aremo, Director of Cooperatives, noted that the country currently has around 176 deposit-taking SACCOs, with Nairobi accounting for 47. She stated that in 2023, SACCOs mobilized 640 billion in assets, and data collection for 2024 is ongoing, with optimistic growth expectations.
Delegates at the meeting approved a dividend payout rate of 10 percent on shares and a 6 percent payout on deposits.