By Sacco Review Reporter
Kenya National Police DT Sacco Board Chair David Mategwa has expressed the Sacco’s commitment to work with any struggling Sacco.
Mategwa said police Sacco is willing to take over the struggling Sacco’s liabilities and assets to enable the members enjoy unrivalled services and products.
“The merger will be seamless to ensure there is continuity,” he said.
The chairman pointed out that it’s becoming increasingly difficult for Saccos with less than 3,000 members to stay afloat.
He further added that it’s crucial for Saccos to invest in technology to achieve customer convenience but that there is no reason for a Sacco with membership of less than 3,000 to be struggling to invest in key areas such as technology.
“Massive investment in technology is the next growth frontier for any Sacco,” he pointed out.
Kenya National Police DT Sacco is ranked the third wealthiest Sacco in the country, according to the SASRA Supervision Annual Report, 2021. For the year ending 2021, the Sacco reported an asset base of Ksh 44.09 billion in 2021 compared to Ksh 39.05 billion in 2020.
The additional Ksh5 billion Kenya National Police DT Sacco reported is a figure some Saccos are struggling to attain.
The Sacco Supervision Annual Report 2021 and 2020 identified amalgamation and consolidation as critical aspects for Sacco’s growth.
A good example is the latest buyout of teachers’ owned Spire Bank by Equity Bank.
Sacco Societies Regulatory Authority (Sasra) hinted of an amalgamation approval in May, 2022.
During a meeting at Lake Naivasha Resort, Sasra CEO Peter Njuguna cited regulation 83, which provides for amalgamation but called on the players to inform Sasra for appropriate policy guidance.
“If any one of you has been approached or some people are interested, write to us for guidance,” Njuguna stated, arguing that there is no vacuum since there is a policy framework to guide the process.
The Sasra chief admitted that the challenge is for Saccos to change their views about amalgamation as an appropriate business strategy for their growth.
“Even in the banking industry, amalgamation has been seen as a strategy for failing institutions,” he said.
He added that a Sacco had reached out to Sasra about being approached by another Sacco for amalgamation and that the move is an encouraging development.
The 2021 Sacco report states that some players are not endowed with the resources to mount serious marketing, competitive pricing, digital financial products and services.
“It is this reality that has seen mergers and acquisition taking place in the commercial and microfinance banking sector, the key competitors for Saccos in the mobilization of savings and credit provision business,” the report states.
The regulator notes that the statistical information discussed in the report shows that there are too many small Saccos in the Sacco subsector.
For instance, there are 49-Agriculture based SACCOs in the country yet they control less than 10 per cent of the subsectors’ total assets and total deposits. Equally, there are over 107-Private sector based SACCOs but whose total assets and total deposits portfolios is small.
Police Sacco open for amalgamation, Sacco boss says
By Sacco Review Reporter
Kenya National Police DT Sacco Board Chair David Mategwa has expressed the Sacco’s commitment to work with any struggling Sacco.
Mategwa said police Sacco is willing to take over the struggling Sacco’s liabilities and assets to enable the members enjoy unrivalled services and products.
“The merger will be seamless to ensure there is continuity,” he said.
The chairman pointed out that it’s becoming increasingly difficult for Saccos with less than 3,000 members to stay afloat.
He further added that it’s crucial for Saccos to invest in technology to achieve customer convenience but that there is no reason for a Sacco with membership of less than 3,000 to be struggling to invest in key areas such as technology.
“Massive investment in technology is the next growth frontier for any Sacco,” he pointed out.
Kenya National Police DT Sacco is ranked the third wealthiest Sacco in the country, according to the SASRA Supervision Annual Report, 2021. For the year ending 2021, the Sacco reported an asset base of Ksh 44.09 billion in 2021 compared to Ksh 39.05 billion in 2020.
The additional Ksh5 billion Kenya National Police DT Sacco reported is a figure some Saccos are struggling to attain.
The Sacco Supervision Annual Report 2021 and 2020 identified amalgamation and consolidation as critical aspects for Sacco’s growth.
A good example is the latest buyout of teachers’ owned Spire Bank by Equity Bank.
Sacco Societies Regulatory Authority (Sasra) hinted of an amalgamation approval in May, 2022.
During a meeting at Lake Naivasha Resort, Sasra CEO Peter Njuguna cited regulation 83, which provides for amalgamation but called on the players to inform Sasra for appropriate policy guidance.
“If any one of you has been approached or some people are interested, write to us for guidance,” Njuguna stated, arguing that there is no vacuum since there is a policy framework to guide the process.
The Sasra chief admitted that the challenge is for Saccos to change their views about amalgamation as an appropriate business strategy for their growth.
“Even in the banking industry, amalgamation has been seen as a strategy for failing institutions,” he said.
He added that a Sacco had reached out to Sasra about being approached by another Sacco for amalgamation and that the move is an encouraging development.
The 2021 Sacco report states that some players are not endowed with the resources to mount serious marketing, competitive pricing, digital financial products and services.
“It is this reality that has seen mergers and acquisition taking place in the commercial and microfinance banking sector, the key competitors for Saccos in the mobilization of savings and credit provision business,” the report states.
The regulator notes that the statistical information discussed in the report shows that there are too many small Saccos in the Sacco subsector.
For instance, there are 49-Agriculture based SACCOs in the country yet they control less than 10 per cent of the subsectors’ total assets and total deposits. Equally, there are over 107-Private sector based SACCOs but whose total assets and total deposits portfolios is small.
