Page 38 - SACCO STAR ISSUE 43
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SACCO INDUSTRY WATCH
fund. After 10 weeks, at least two thirds
of the group members can access a
minimum loan of Ksh 15,000 each. The
loans under this activity are guaranteed
and the maximum loan a group member
can borrow is Ksh 500,000 after saving
group shares of Ksh 150,000
Currently, the activity has over 700
registered groups with a membership
base of 18,470.
From left: David Mategwa, Renson Ndoro and SACCO CEO David Masha GROWTH IN MEMBERSHIP
The idea of opening the common bond
In 2003, Imarika SACCO, then No sooner had the SACCO opened its has attracted many members from all
dubbed Kilifi Teachers SACCO common bond than it started admitting walks of life who had previously been
resolved to open its common group membership as well, an activity locked out thereby denying them access
bond to pave way for non-salaried referred to as Micro Savings and Credit to more affordable financial products
individuals to join as members Activity (MSCA) and has so far become a and services.
of the SACCO. Prior to this, only success story.
employees of the Teachers Service With modern technology and good
Commission (TSC) and other Groups of 15 people and above register operating systems in place, monthly
Government departments’ were the with the department of social services deductions are done effectively and
core members of the SACCO. and then apply for membership at the this has reduced the default rate
SACCO. Once registered, each group drastically. Also, group officials are
This was a move thought by many member contributes Ksh 200 per week directly responsible for their group
SACCOs in particular those who as premium savings which translates member’s weekly remittances. If any
dealt with members on check- to Ksh800 per month. In addition each group member does not remit the cash
off arrangements as risky and member pays 150 per month as security as agreed, then it is the responsibility
dangerous to do business with. of the group officials to put pressure
on their members to pay, since
guaranteeing of the loans is done
amongst the members and no one is
willing to lose money by paying for
someone else.
“Venturing into new territories and
shifting from the traditional way
of doing business to a totally new
approach was not a simple matter.
It needed support and focus by the
entire governance machinery of the
SACCO” says Daniel Masha, CEO
Imarika SACCO.
To date, the SACCO has registered
43,129 members composed
of self-employed individuals,
entrepreneurs and salaried
employees with no check-off
arrangements in place, popularly
known as FOSA Members.
The chief guest Mr David Mategwa, chairman Kenya Police SACCO
36| SACCO Star Magazine
