Africa-Press – Kenya. Ports Sacco, formerly Mombasa Port Sacco, has embarked on an expansion drive targeted at having a presence in all the 47 counties.
This is part of its strategic growth plan which management said is aimed at empowering members and drive financial inclusion with a national footprint.
The Tier 1 licensed Deposit Taking Sacco regulated by the Sacco Society Regulatory Authority (SASRA) was started in 1966 by employees of the then East African Harbours and Railways Corporation.
The Sacco opened its common bond in the year 2010 and now has diverse membership coming from salaried and non-salaried individuals, investment groups (chamas), corporates, sole businesses, and from people in the diaspora.
In May this year, it re-launched to Port Sacco, with a renewed focus on expansion beyond Mombasa as it opens doors to diverse and increased membership.
It was listed among the top 15 most liquid Saccos in Kenya, also having been able to grow assets to over Sh8 billion, supported by a loan book of more than Sh 5.6 billion, as of July 31.
According to management, the Sacco which currently has over 12,000 members is targeting to add at least 10, 000 members annually from the countrywide expansion.
The expansion drive is informed by growing financial needs, according to the CEO, Dedan Ondieki, who noted that the economic situation in the country, especially after Covid-19 pandemic, has been volatile.
Other micro and macro-economic conditions have made the situation even worse, specifically the rising food and fuel prices.
Sacco’s have remained key in bridging the access to financing gap in the wake of high interest rates in mainstream banking, where ordinary Kenyans are struggling to repay their loans, leave alone access to credit.
The biggest challenge now is access to finance, especially for small businesses. At Ports Sacco, we have positioned ourselves as a people-centric financial services provider whose only purpose is to uplift people,” Ondieki said.
He said the Sacco has not only provided financing to micro and small businesses, but also ensured that it is adequate, quick, and affordable and this cuts across all other segments it extends credit to.
“We do not charge any loan processing fees, we have increased our deposits multiplier up to five times and provided the longest personal loan repayment period of up to 120 months. All these are meant to ease pressure on our members during these harsh economic times,” he said.
Ports Sacco declared dividends on share capital at a rate of 20 per cent amounting to Sh75.9 million, and interest on deposits a at a rate of 12.5 per cent, or Sh496 million, making a gross total of Sh571. 9 million.
“We continue to increase and sustain our presence through channels like digital, print media and below-the-line advertising to ensure people keep the conversation ongoing,” said Ondieki.
Its expansion comes at a time when the government has identified Saccos as a key driver in boosting Kenyans’ savings culture.
The Kenya Kwanza administration plans to set up a local pool where the government can borrow to meet its obligations.
Savings and credit co-operative societies are also at the core of the government’s hustler fund loan drive, where they are expected to be instrumental in the disbursement of loans.
This is through the launch of a new digital financial inclusion initiative called the Biashara loan.
As of the end of February 2023, SASRA regulated a total of 359-Saccos consisting of 176 Deposit Taking Saccos and 183 Non-Withdrawal Deposit Taking Saccos, serving about six million Kenyans directly as members.
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