By Sharon Makiti

In a resounding declaration of growth and commitment, Yetu SACCO officially unveiled its latest jewel in the financial crown, the Kitengela branch. 

The new branch sets the stage for a financial adventure that transcends borders and promises to reshape the landscape of community finance, with promises of friendly services, impressive dividends, and a digital future. 

Yetu SACCO chairman, Mr. Mark Gitonga extended a hearty welcome to new members across the divide, saying that Yetu SACCO’s Kitengela branch is more than a new location; it’s a beacon of financial inclusion and opportunity. 

In his address, Mr. Gitonga introduced Yetu SACCO as a friendly financial institution, emphasizing its commitment to establishing a warm and welcoming atmosphere for all. 

Highlighting the SACCO’s robust financial position, Mr. Gitonga assured members that liquidity levels are high, making funds readily available. He underscored the efficiency of the loan approval and disbursement process, noting that approved loans are swiftly allocated within minutes or a few hours.

He also expressed pride in the qualifications, skills, and experience of the SACCO’s dedicated staff. He emphasized their readiness to cater to the diverse needs of members, ensuring that financial products are tailored to suit individual requirements.

He encouraged members to invest with Yetu SACCO, citing the impressive dividend returns. Mr Gitonga credited the high dividends to the exceptional management skills exhibited by the management team, directors, and staff.

The Kajiado County Government representative, during a speech welcoming the establishment of the new branch, emphasized the importance of tailoring financial products to the local pastoralist community while underlining the County Government’s commitment to supporting the SACCO’s expansion efforts.

In his speech read by the County representative Mr Daniel Motompa, the chief guest Mr. Patrick Kilemi, the Principal Secretary (PS) in the Ministry of Co-operatives and Micro, Small & Medium Enterprises (MSMEs) Development commended the Yetu SACCO for its exceptional performance in recent years. 

He noted that the SACCO’s strategy of increasing its branch network and offering attractive financial products had yielded positive results. In particular, he highlighted impressive statistics, including deposits of Sh1.9 billion from over 66,000 members, a loan portfolio of Sh.3.3 billion, and a reported turnover of Sh789 million in 2022.

Mr. Kilemi also reiterated the need for sustainability in SACCO operations, cautioning against overly attractive dividend payouts that could compromise long-term stability. He pledged the State Department’s commitment to addressing challenges in the cooperative sector, including unhealthy competition, non-remittance, weak governance, and cybercrime, through a variety of interventions, including the Deposit Guarantee Fund and Shared Services.

The PS also referenced the recently concluded Africa Climate Summit 2023 in Nairobi. He encouraged Yetu SACCO to consider important lessons learned during the summit as they continue their operations.

The speech also drew attention to the importance of legislative reforms, including Sessional Paper No. 4 of 2020, the Co-operative Bill 2022, and amendments to the SACCO Societies Act (SSA). These reforms are expected to enhance the safety of members’ funds and tackle issues such as corruption.

While officially declaring the branch open, the PS encouraged the SACCO to embrace digital transformation, acknowledging technology as the driving force in today’s business landscape.

The grand opening of Yetu SACCO’s Kitengela branch saw local business leaders expressing their excitement and satisfaction with the financial institution’s offerings. Addressing the gathering, former CEO Mr. John Mwiti shared his experiences with the SACCO and encouraged others to embrace it.

Mr. Mwiti, now an established businessman with ventures in both Mlolongo and Kitengela, commended Yetu SACCO for its role in supporting entrepreneurs like himself after retirement with competitive financial products and easily accessible loans. 

By Ngumbo Njoroge 

Members in six out of ten SACCOs can access services through alternative financial delivery channels such as mobile money and digital loans.

This, according to the Sacco Societies Regulatory Authority (SASRA), is driven by the growing demands of members for real-time transfer of funds from SACCO accounts to mobile wallets.
156 Deposit-Taking SACCOs are providing services to members through USSD code connectivity, short quick codes available on smartphones, and feature phones. 53 Non-withdrawable Deposit Taking SACCOs (NWDT) have also deployed quick shortcodes.
This means that members in 209 SACCOs can access mobile money services, 58 percent of the total 359 regulated SACCOs.

“The high level of USSD Code connectivity remains a critical milestone in creating accessibility of Regulated SACCOs’ financial services by their members in those parts of the country with low or no internet connectivity penetration,” SASRA said in the latest SACCO Supervision Report.
The data shows that the uptake of internet and app-based connectivity is still low, with only 75 DT SACCOS and 28 NWDT SACCOs.

SASRA notes that SACCOs have also bolstered their partnership with banks for the provision of ATM connectivity to members. 66 percent of the DT SACCOs are connected to at least one ATM platform, deepening access to members away from physical branches.
“The majority of ATM connectivity remains with the Cooperative Bank’s SACCO link which reported 97 percent of all the ATM connectivity with 111DT-SACCOs using their platform,” the regulator said.
SACCOs have enhanced partnerships and agreements with commercial banks, payment service providers, and fintech to increase operational efficiency, increase reach, and ward off competition.
The data shows that 45 percent of regulated SACCOs offer digital credit and loan facilities. This is highest among DT SACCOs at 61 percent while only 29 percent of NWDT SACCOs offer digital loans.

“The most popular digital credit and loan services’ delivery channel employed by Regulated SACCOs are the mobile phones through the usage of USSD Codes which is compatible with both feature and smartphones, thereby ensuring clientele’s reach even in areas with little or no internet coverage which is an important contributor to financial inclusion,” SASRA said.

The data shows that out of the 156 DT-SACCOs that have mobile phone connectivity services, only 100 have rolled out digital credit and loan products.
“This means that several DT-SACCOs do not necessary use their mobile phone connectivity capability as a platform for application, processing, approval or disbursement of credit or loan products but rather as a tool for members to access other financial services.”
The uptake of agency banking services is still low among regulated SACCOs, with only 23 percent undertaking the services. 39 percent of all DT-SACCOs and only 7 percent of NWDT SACCOs use the service.

By Linda Karimi

Yetu SACCO, formerly South Imenti Tea Growers SACCO Ltd, opened its seventh branch in Chuka town to attract new members and increase market share.

The 32-year-old SACCO has its head office in Nkubu, Meru County and has a wide branch network in Meru, Nairobi, Kitengela, Kionyo and Kinoro. Since its inception, Yetu SACCO has gradually been on an upward trajectory and as of 31st December 2022, it has 57,000 members and an asset base of Sh5.7 billion.

The new branch opening was officiated by Hon. Patrick Munene, M.P. Chuka Igamba Ngombe Constituency and was well attended by various dignitaries including Hon. Shadrack Mwiti, M.P. South Imenti Constituency and Members of the County Assembly (MCAs), which demonstrated confidence in the SACCO’s products and services.
Hon. Munene expressed joy at the impressive growth of Chuka town and confirmed that as a politician, he wanted the people of Tharaka Nithi County to grow. He noted that young people ought to start small business and access loans from SACCOs instead of engaging in vices like drinking from illicit brews.

He congratulated the SACCO for their good services in savings and investments adding that competition in the financial sector would improve services for members.

“Let me encourage all of us to inculcate a culture of saving at individual levels in order to grow wealth and grow the SACCO,” he said.

Mark Gitonga, Chairman, Yetu SACCO added that the SACCO was stable and has been paying dividends at favourable rates for the last 20 years.
“I encourage new members to join the SACCO and enjoy affordable loans of 12 per cent per annum. Take this as your financial institution where you are an owner through your shares,” he said. Mr Gitonga also added that many people including those working in the Government, as well as private sector benefited from SACCOs and therefore more people should join and improve their financial wellbeing.

Also present at the event was Denis Kirimi, Chief Executive Officer, Yetu SACCO who reported that the SACCO has grown to the present staff team of 85 people on permanent basis, with 120 staff employed on contractual basis.
He also reported that the SACCO had the capacity of giving loans up to Sh90 million noting that the highest depositor in the SACCO held Sh71million, showing the stability of the SACCO.

Mr Kirimi urged the locals to join the SACCO in order to grow and better themselves financially adding that monthly contributions were affordable for all. “Let me encourage business people, farmers, boda boda riders among others to join us and save as little as Sh100 and benefit from our affordable loans,” Kirimi emphasized.
He also encouraged members to take up loans in the SACCO, which would be issued based on a member’s repayment ability. “We offer mortgages at affordable interest rates for any member willing to build a house or construct a school, among other investments. The security of the loan is the title deed and we also accept car log books. Your deposits in the SACCO are also part of the security,” he said.

He informed the members that to make accessing financial services easier and more convenient, the SACCO had a Mobile Application (App) where a member can access their funds anytime and from any location. “You can save, send money, withdraw and check your balances, among other services through the App,” said Mr. Kirimi. He also reported that the SACCO had a vibrant diaspora membership of 37 people in various countries including USA, England and Australia, who access financial services without visiting any physical branch.