Saccos hired 3,430 agents in towns across the country in a strategy aimed at ensuring efficient and effective services for their members.
According to the Sacco Supervision Report for 2022 released by the Sacco Societies Regulatory Authority (SASRA), 36 Deposit-Taking (DT) Saccos hired 3,430 agents to help them handle customer transactions, which helped to cut costs associated with opening and maintaining physical branches.
“The use of Sacco agencies as a financial services delivery channel has gained traction among DT-Saccos in the recent past as an alternative to the establishment of traditional brick and mortar branches which require huge capital as well as recurrent maintenance costs,” SASRA said.
The SASRA Report noted that the agents undertook 1.89 million transactions valued at Ksh26.50 billion in 2022.
Kenya rolled out agency banking in May 2010 to allow commercial banks to engage third parties to offer specified services such as cash deposits, withdrawals and balance inquiries on their behalf.
The agency banking model has been a significant success, helping millions of customers access banking services.
Saccos have also latched on to the model in a shift that enables them to extend their services to more members.
The regulator licensed 176 Deposit-Taking (DT) Saccos and 183 Non-Withdrawable Deposit-Taking (NWDT) Saccos.
By Vostine Ratemo
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