At Glance
–Thousands of sacco members are receiving support in the wake of difficult economic situations triggered by Covid-19.
– Many Sacco members who have lost jobs, sent on compulsory non-paid leave or given pay cuts.
– Mwalimu National has increased the amount its members can withdraw via the mobile application from Sh70,000 to Sh150,000 per day.
By Sammy Chivanga
Savings and Credit Co-operative Societies (Saccos) are living up to the spirit of co-operation by turning to a buffet of activities to support thousands of their members in the wake of difficult economic situations triggered by Covid-19 pandemic.
Top Saccos such as Kenya Police Sacco and Mwalimu National Sacco has led the way in supporting their members to navigate through the economic meltdown prevailing among households.
Many Saccos have members who have lost jobs, sent on compulsory non-paid leave or given pay cuts as coronavirus continues to turn into a financial crisis.
Kenya Police Sacco, whose majority of members are police officers, has spent Sh.33.2 million in buying face masks, sanitizers and gloves for its members.
Confirmed cases of Covid-19 in Kenya crossed 2,000 mark on June 1, with Ministry of Health estimating that the country will start posting at least 200 positive cases per day come August, 2020.
Kenya Police Sacco donated 200,000 face masks, 480,000 gloves and 40,000 sanitizers (each 250 millilitres) to the Inspector General office for distribution to police officers across the country.
Chairman David Mategwa says the board and management felt obligated to do so to help its officers reduce the risk of contracting the disease.
Mwalimu National, which heavily draws membership from teachers, has also taken a raft of measures to support members.
The Sacco has increased the amount that its members can withdraw via the mobile application from Sh70,000 to Sh150,000 per day so as to help members meet their needs without having to visit branches or ATMs.
Metropolitan Sacco, has taken a similar direction, encouraging members to use digital products while shielding them from high expenses.
“Charges on balance enquiry and mini statement requests on the mobile banking platform have been suspended for the next 90 months,” explained Chairman Christopher Karanja in notice to Sacco members.
Saccos such as Hazina Sacco and Safaricom Sacco have launched totally new products to help members during the coronavirus period.
Hazina Sacco Society in mid-April launched flash advance, a mobile loan to be given to members within 24 hours to support them during the tough economic times.
CEO Dickson Okungu said in a circular to members that the loan size ranges from Sh.5,000 to Sh20,000 with a repayment period of two months.
And with many employees being directed to work from home, Safaricom Sacco notes that it observed that their members were having a challenge in getting comfortable furniture to work from while at home.
Chai Sacco on the other hand has cut member deposit contribution on loans effective May 19 from the exiting flat rate of 0.25 percent.
For instance, loans of up to Sh.499,999 will attract member deposit contribution of 0.05 percent.
Other initiatives being taken by Saccos is to allow members reduce their monthly savings in Saccos, especially for the salaried employees who have received pay cuts. This has been used by both Nation Media and Network Sacco.
