Sauti SACCO Launches Five-Year Strategic Plan Amid Financial Challenges

NAIROBI—Sauti SACCO, a cooperative society, has initiated a five-year strategic plan aimed at addressing recent financial difficulties and adapting to technological advancements in the market.

According to Kenya News Agency, the chairman of Sauti SACCO, who spoke at the 47th annual delegates conference held at a Nairobi hotel, the cooperative has developed a plan structured around five strategic pillars. This plan seeks to revitalize the organization, which has suffered from financial constraints and a declining membership. Ndwigah revealed that the SACCO has faced significant challenges, including the withdrawal of members and non-remittance of deductions from employers totaling nearly Sh 40 million, which has contributed to membership apathy.

Despite these challenges, the SACCO saw a slight increase in loan uptake in 2023, with total loans reaching Sh103 million, up from Sh95 million the previous year, marking a 9 percent growth. However, membership growth remains a concern, showing a negative trend of 4 percent annually, well below the target of 15 percent per year.

Ndwigah committed to implementing the new strategic plan, which includes measures like introducing collateral as loan guarantees and launching an aggressive marketing campaign to attract new members. The plan spans from 2024 to 2028 and aims to address the SACCO’s immediate financial issues while positioning it for future growth.

Commissioner of Cooperative David Obonyo also addressed the conference, commending Sauti SACCO for its proactive steps. He highlighted the critical role cooperatives play in economic development, social cohesion, and poverty reduction. Obonyo emphasized the importance of adapting to technological changes and engaging younger members through digital platforms to meet the cooperative’s recruitment and retention goals.

Obonyo further discussed the broader challenges facing the cooperative sector, including rapid technological advancements and economic pressures. He affirmed the government’s commitment to supporting the cooperative sector, noting that the Shared Department for Cooperatives would continue providing policy guidance, capacity development, and technical support.

The meeting concluded with the delegates approving a dividend payout of Sh1,502,864 at a rate of 15 percent and rebates on interest on deposits totaling Sh15,085,600 million at a rate of 8 percent, an increase from the previous year’s rate of 7 percent.