Peter Kariuki is the Chief Executive Officer for Sheria Sacco, one of the leading tier 1 Deposit-Taking Saccos in the country. He speaks elaborately on his vision for the Sacco in an interview with our reporter. He talks about the Sacco’s expansion plan, achievements and challenges among other pertinent issues. Here are excerpts from the interview.
Q: What achievements have you personally realized for this Sacco since you took over?
A: I have managed to put together a cohesive management team and staff with a common focus on inspiring, equipping and empowering members. We now have a new mobile platform where members can apply for e-loans, make payments from M-Pesa to different accounts in the Sacco, check balances, pay for utility bills from their FOSA accounts, and stop ATM transaction in case of card loss among others.
We have also added one satellite branch in Kisumu while another one is coming up soon in Mombasa.
Q: What are the secrets behind the success?
A: Expanding our membership to include salaried Kenyan citizens and business people as the Sacco, since its establishment in 1972, served the Judiciary and AG Office employees, this has accelerated the growth.
Our Board of Directors led by Justice Patrick Kiage, the Chairman, has also been up to the task of steering the Sacco in the right direction, and has ensured that all operations meet high standard.
Q: What are the expansion priorities and goals put in place by the Sacco moving forward?
A: Sheria Sacco will explore converting the Kisumu satellite branch to a full branch to serve members in Nyanza, Western Kenya and Northern Rift regions better. The Sacco has plans to make full use of ICT to conveniently make available all services on mobile platform. With Covid-19 pandemic reality, we are setting up necessary structures to enhance security as mitigation to risks that come with technology.
Q: Any plans in place for new products and services?
A: Guided by feedback from our members, we intend to introduce mortgage and car loan.
Q: What are CSR activities the Sacco is currently undertaking?
A: We have supported orphans at Our Lady of Nazareth – Mukuru Kwa Njenga, providing them clothing, sanitary towels and balls. We have also supported Hope Football team in Kawangware and Celebral Palsy Society of Kenya Walk-2016.
Q: Do you offer a benchmarking platform for other Saccos?
A: One of the universal principles of co-operatives is “Co-operation among Co-operatives.” Today Saccos have opened up to each other after learning that the market became liberal and Saccos realized they can benefit more in co-operating than in competing against each other. We are open to others.
Q: There have been concerns over gender parity in Saccos, how has your Sacco addressed this?
A: Sheria Sacco Board and Management team has been keen to observe 1/3 rule in the staff workforce where currently the ratio is 1:1.
Q: What is your vision for the Sacco in the next 5 years to 10 years?
A: I foresee a well automated Sacco where a member will be able to do virtually anything online. With increased automation, we shall increase the staff capacity to offer personalized financial advisory to members.
We are currently focusing on diversifying our services towards ensuring that every financial service that members need they can access it from their Sacco and take advantage of synergy from their numbers to gain bargaining power to the members’ benefit. The Sacco intends also to grow assets by three-fold.
Q: What are some of the major challenges facing Saccos in general?
A: Saccos are member-owned organizations where trust is key. Members pool funds and allow few of their own to access loan beyond their savings and repay over a convenient period on the guarantee of fellow members. Betrayal of trust by a few members, who fail to honour their loan obligations, impacts negatively on this important link in the rope that holds the Sacco.
Q: What is the Sacco’s risk management structure?
A: We are closely monitoring of individual savings and loan repayments by identifying challenges and circumstances surrounding individual members or groups and come up with ways of beating these challenges.
In instances where member income/salary has dropped, rescheduling loan to a longer period would enable the member to continue repaying conveniently. Where salary has ceased, granting of a loan moratorium may be the ideal solution as we wait for the situation to improve. A member who has several assets may consider it prudent to consider disposing of some to clear the burden of liabilities.
We are also engaging with members and sensitizing them on the need to be more prudent in expenditure to afford savings, for tomorrow always holds uncertainties and needs to be prepared for.
Q: Has the Sacco thought of lowering interest on loans to help cushion members?
A: Sheria Sacco has some of the lowest interest rates on loans. Lowering interest is not a priority.We have Sacco members who are savers without an intention to borrow. Such members are compensated for use of their funds by paying them reasonable return by way of interest on their deposits. Nonetheless, if circumstances arise where loan interest may become irrecoverable, the Sacco will consider it.
Q: How do you balance between family and work?
A: There is time for everything and whatever you do, do it well. When it is time to work I put my mind to work, and even work late; my family understands. Most weekends, however, I spend with my family in church or traveling upcountry.
Q: Who is your role model in the Co-operative sector?
A: Nelson Mwaura, an accountant that I worked under in my first Sacco job in the 1990s. He was so sensitive to safeguarding member funds and sacrificed a lot of his time towards strong building structures in the Sacco. I am a product of his efforts. He was a person of very high integrity.
Q: How do you utilize you free time?
A: Script writing, Bible study, reading books and travelling.
