Kenyan SACCOs (Savings and Credit Co-operative Societies) in the Deposit-Taking business are in a frantic rush to break their common bond, rebrand, and open up new outlets in Nairobi, ostensibly to escape from dwindling membership and growing competition in this sub-sector.
The latest Sacco to spread its catchment areas in search of more business and membership is Ports SACCO, formerly Mombasa Port SACCO, which has opened a new outlet in Nairobi. Ports Sacco is eyeing Nairobi customers after recently opening a new branch at the Inland Container Depot (ICD) in Embakasi, Nairobi.
Saccos with branches in Nairobi but with bases upcountry
Apart from Ports Sacco, other upcountry outfits that have also set base in Nairobi now include Mentor, Imarisha, Biashara, Bingwa, New Forties, Ollins, and Yetu SACCOs.
Interestingly, Nairobi-based Saccos are branching out of the city and opening new branches in other urban centers and towns.
“We are excited about what the future holds for Ports Sacco and are confident that the opening of the Nairobi ICD branch will serve as a gateway to our efforts to forge further inland and serve more members,” said Dedan Ondieki, Ports SACCO Chief Executive Officer.
Experts maintain that the motive behind many rural Saccos opening up in urban areas is an expansion of their services and recruitment of more members. Many people in urban areas do not belong to any SACCO, attracting the attention of Societies that are still in expansion mode.
But not all SACCOs are keen to set up in urban areas.
“We are a more conservative Sacco and have only opened branches in strategic places, not to seek more business or recruit but to take services closer to our members,” said David Mategwa- Chairman of the Board of Directors, Kenya National Police DT Sacco.