Saccos are built on affordability and accountability. [Courtesy]
Savings and credit co-operative societies (Saccos) have been recognised as vital avenues for saving and investing, particularly for Kenya’s middle and low-income earners.
Industry leaders are urging Kenyans to invest in these cooperatives en masse, and are calling on the government to create favourable policies that promote their growth.
More than 5,000 Saccos are registered by the Sacco Societies Regulatory Authority.
This number continues to grow as more individuals and communities recognize the benefits of joining cooperative societies.
Officials of Shofco Sacco, which focuses on low-income earners, especially in urban slums, say they are leveraging automation and digital transformation to reach more Kenyans.
Chairman Kennedy Odede said saccos such as Shofco are keen on efficient service provision that empowers communities and promotes economic growth across the country.
“We focus on supporting those at the bottom of the economic pyramid, individuals often labelled as high-risk by traditional banks,” Dr Odede said in Nairobi yesterday.
“Instead, we see them as high-opportunity clients, and they have never let us down.”
Shofco Sacco has grown from 10 members to over 20,000 in just seven years. Despite this growth, Dr Odede believes there is potential for even more expansion, with over two million members of the Shofco Urban Network eligible to join the Sacco.
At this year’s International Co-operative Day held in Nairobi, Shofco received several awards including for the best managed non-deposit-taking community Sacco and the most improved non-deposit-taking community Sacco.
“We are delighted to have achieved remarkable success by winning six awards during this year’s International Co-operative Day. We are proud of this collective achievement and look forward to continued success,” the chairman said. In March, the sacco launched new digital platforms during its annual meeting in Kibera, allowing members to transact via a mobile app, USSD code, and website. This innovation has enabled real-time borrowing and depositing of funds, allowing ease of access to services.
In 2023, the Sacco disbursed loans worth Sh272 million, a significant increase from Sh148 million in 2022, representing an 83 per cent growth. With branches in Kibera, Mathare, Mukuru kwa Njenga, Kwangware, Bangladesh in Mombasa, and Kakamega, Shofco Sacco’s assets grew from Sh231 million in 2022 to Sh389 million in 2023. Notably, 86 per cent of its members are women. “Women are transformative leaders, and we prioritise them during loan disbursement,” Odede said.
