Sauti Sacco cooperative society has embarked on a five-year strategic plan to realign with emerging technological challenges to cope with the market demands.
Sauti chairman Elly Ndwigah told the 47th annual delegates conference at a Nairobi hotel that the society had set an elaborate plan pegged on five strategic pillars to turn around the fortunes of the organization that was reeling with financial constraints.
He regretted that the chronic withdrawal of membership and non-remittance of deductions from employers that had been dogging the Sacco running into almost Sh 40 million has contributed membership apathy, even as number of new recruits continues to dwindle due to such fears.
He however assured delegates that going forward the Sacco planned to roll out an aggressive marketing campaign to woo new membership as envisioned the strategic plan that runs from 2024 to 2028.
“The trend shows that our membership growth is negative 4 percent as opposed to the minimum target of 15 percent per year due to exit from Sacco by members”, Ndwigah said.
He noted that despite the decline in membership, the Sacco registered a slight increase in total loans uptake of Sh103 million in the year 2023 compared to Sh95 million the previous year registering a 9 percent growth.
The chairman assured delegates that the society will improve in the implementation of the measures proposed in the strategic plan, which include introduction of collaterals as guarantees to loans in cases, where employees’ salaries were overstretched beyond the two third deduction limits.
Commissioner of Cooperative David Obonyo commended the Sacco for endorsing the strategic plan to address issues pertaining to recruitment and retention of members saying that cooperatives were meant to play a vital role in fostering economic development, social cohesion, and the poverty reduction.
He however challenged the society to ensure that the strategic plan addressed the aspirations of members and offered a comparative advantage compared to others in the market observing that sacco movement had become a way of life.
Obonyo noted that for the society to achieve the 15 percent annual minimum m membership recruitment threshold, he advised the AGM to embrace digital technology, which were more appealing to the youthful population who make up the better bulk of potential members.
“As a corporative movement, we must adapt and be innovative in order to remain relevant in this changing world. We have to embrace the pitch for technology,” he added.
The Commissioner noted that Corporative provide an avenue for member success through access to affordable financial services for investment and related development prospects.
“We must also recall the challenges that lie ahead, one being the global landscape that is evolving very rapidly, characterized by technological advancements, economic and environmental pressure,” he said.
Obonyo stressed that the youthful membership was a critical component for the posterity of the SACCO because they were the most productive members of the society and had the needed resources and energy to invest.
As a government, the Commissioner said, they remain committed to support the cooperative sector and that the Shared Department for Cooperatives will continue to provide policy guidance, capacity development and technical support that may strengthen cooperatives at all levels.
He commended the SACCO for wading through a myriad of challenges during their 52 years of service in which they made their invaluable contribution t national development.
“As we reflect on the achievements of the past year and the chart of course for the going forward, let us reaffirm our commitment to cooperation, solidarity, mutual support, and mutual support. Together we can overcome” the commissioner declared.
During the meeting, the delegates’ approved a dividend payout of Sh. 1, 502,864 at a rate of 15 percent and rebates on interest on deposits Sh 15,085,600million at a rate of 8 percent, up from last year’s figure of 7 percent.
By Wangari Ndirangu
