SACCOs, especially those that engage in the deposit-taking business, have continued to rebrand to appeal to more members and beat stiff competition for deposits.
- Other players in the financial industry include banks and microfinance institutions.
- The latest to join the rebranding bandwagon is Kitui Teachers Deposit-Taking Sacco, which intends to rebrand to Univision DT Sacco.
- Kitui Teachers Sacco joins others who have since rebranded and changed their corporate identity to have more visibility and appeal across all regions of Kenya.
The long list of DT Saccos that have since rebranded include Baringo Teachers, which changed its name to Boresha, Baringo Farmers to Skyline, Kirinyaga Tea to Bingwa, Meru Farmers to Capital, Kilifi Teachers to Imarika, Nakuru Teachers to Cosmopolitan, Thika District Teachers to Orient Sacco, Nyandarua Teachers to Tower Sacco, Trans Nzoia Teachers to Transnational Times, Samburu Teachers to Supa, Siaya Teachers to Taraji, Kuria Teachers to Stake Kenya Sacco and Kiambu Teachers to Metropolitan among others
The disclosure of the latest rebrand was made to members during the Kitui DT Sacco’s 47th Annual General Meeting (AGM) held in Kitui.
“Our current name has expounded our vulnerability and exposed us to stiff competition,” said Rev Augustus Munuve, Chairman of the Board, Kitui Teachers DT Sacco.
- He said Kitui Teachers DT has been forced to rebrand and recruit members beyond teachers in Kitui County.
- The Board expects that this will boost profitability of the Sacco, increase its liquidity through a more aggressive deposit mobilization from both the salaried and business community, and ensure a sustainable growth trajectory.
- Perhaps not coincidentally, teacher Saccos are leading in the rebranding list followed by farmer Saccos spread out across the country
The race is on for DT Saccos across the different sectors of the economy to change strategy, introduce new products, and offer better services through rebranding and recruitment drives.
.But whether this trend is giving better returns, profile to already existing customers continues to draw mixed reactions from this sub-sector.
Many DT Saccos are in recruitment mode, a move that has eaten into the investment capital leading to lower returns on savings for members.
The establishment of Front Office Service Activities (FOSA) operations and opening up these Saccos to new members is said to be causing friction in some of the affected DT Saccos.