Over the last few years, several Deposit Taking (DT) Saccos have opened new branches in major urban centres across the countries.
Kirinyaga based Bingwa Sacco has opened a new branch in Kitengela.
Jane Mugoh, former Bingwa Sacco CEO, said they have been expanding to urban areas so as to get more members.
“We have saturated Kirinyaga county and its surrounding areas. We thought it wise to diversify and move to urban areas with banks but no services from Saccos. We are very keen to fill this gap in many urban areas,” Mugoh said.
She added that while Kitengela has many commercial banks, Bingwa Sacco set up a branch there to provide services banks cannot provide.
“We have perfected the game after being in existence for over 36 years as a rural based Sacco. Our next frontier is to venture into urban centres which are still underserved and have less competition than the rural areas where SACCOs dominate,” said Mugoh.
Ollin Sacco has also ventured outside Kerugoya and set up branches in Kitengela and Kiserian.
New Forties Sacco, which has its headquarters in Karatina in Nyeri county, has opened branches in Nairobi and Nanyuki. The office in Nanyuki was opened in September 2020.
Mentor Sacco, Imarisha Sacco, Biashara Sacco and Yetu Sacco have opened branches in Nairobi.
Boresha SACCO, which has its head offices in Eldama Ravine in Baringo County, has spread its wings to Iten, Kapsabet, Nakuru and Eldoret in the past few years.
“We have members working in major urban centres who are demanding for home based Sacco services,” said Moses Chebor, former Chief Executive Officer, Boresha Sacco.
He said that setting up an office in a region is based on the level of demand for the service and the number of members in that place.
“Those two factors must sustain the operations of a fully-fledged office or branch,” he said.
He added that money is in major cities hence many rural based Saccos are keen to establish branches in the cities.
Interestingly, Nairobi-based Saccos are opening new branches in other urban centres and towns.
It’s noteworthy that not all Saccos are keen to set up branches in urban areas.
Kenya National Police DT Sacco, Ukulima Sacco and Harambee Sacco all have their head offices in Nairobi.
Kenya National Police DT Sacco has a branch in Meru to serve those in Eastern Kenya region, a branch in Nyeri to serve those from Central, a branch in Kakamega to serve those in Western, a branch in Eldoret to serve those in North Rift, a branch in Kisii to serve those in Nyanza and a branch in Mombasa to serve those in the Coast region.
” 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.
Ukulima DT Sacco has opened new branches in Kakamega, Kisii, Mombasa and Nakuru.
George Ototo, the Managing Director of Kenya Union of Savings & Credit Cooperatives (KUSCCO) Limited, said the main reason Saccos open branches in urban areas is to expand their services and recruit more members.
“Many people in urban areas do not belong to any Sacco and that attracts the attention of Saccos that are still on expansion mode,” he said.
Daniel Marube, the Chief Executive Officer of Cooperative Alliance of Kenya, said that many DT Saccos are opening new branches in cities and towns because those areas are financial hubs, have more business transactions and are home to many middle income people who are on salaried employment.
“This is why most of these rural-based Saccos are moving to the urban areas to get more membership and business,” said Marube.
By Our Reporter
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