Established over four decades ago by a group of ambitious teachers, tier one Sacco continues growing in profitability and membership as it makes inroads into new territories
savings and credit co-operative societies (popularly known as Saccos), play a pivotal role in deepening Kenya’s financial sector. Through their friendly model that allows members to save their income on a regular basis with the goal of accessing credit, Saccos have transformed the lives of millions of Kenyans. For instance, countless members have been able to finance the education of their respective families, establish income generating ventures and build decent homes among other life changing benefits. As an icing on the cake, Saccos share the profits they generate annually with their members in form of dividends depending on their financial performance. As a financial reward, dividends have proved to be a major incentive to the members to save and borrow more from Saccos. Additionally, they give members a sense of ownership, besides enhancing their loyalty.
Since they are established and supported to grow by their members, Saccos are not driven by profit maximization. On the contrary, they develop innovative products based on their members’ needs. They offer these products at very friendly terms. In the same vein, motivated by the need to uplift the socio-economic status of their members, Saccos support them to acquire land among other valuable assets at very competitive terms and conditions.
Saccos are democratically governed in line with the spirit of the co-operative movement. During the Annual General Meeting ( AGM) which is their highest decision making organ, members give views on how the performance of these financial institutions can be improved, besides voting for the ratification of the resolutions made.
According to the Sacco Societies Regulatory Authority (SASRA), there are forty three teachers based deposit taking Saccos in Kenya. One of them is Mentor Sacco. Ranked tier one by SASRA, the giant Sacco, with an asset base of over Kshs. 11.76 billion was formed way back in 1977 by about three hundred teachers from the then Murang’a district. At that time, it was known as Murang’a Teachers Savings and Credit Co-operative.
In 2011, having opened its common bond to accommodate members from other professions, civil service, county governments and the business community, Murang’a Teachers Savings and Credit Co-operative rebranded as Mentor Sacco. It also launched front office services activity (FOSA). This ushered in an era which has seen the Sacco establish five full-fledged branches in Murang’a town, Kenol, Thika, Ngara – Nairobi and Ithanga. In the same vein, Mentor Sacco has established satellite branches in Kiriani, Kandara and Kangari urban centres in a bid to deepen its reach. In order to give members a memorable experience, the full-fledged branches are well designed, spacious and comfortable.
MENTOR SACCO: MEMBERS TESTIMONIALS
Another successful year for mentor sacco
In mid-January, Mentor Sacco held a highly successful Annual General Meeting (AGM) at Ihura Stadium, Murang’a. It was the 46th AGM since its establishment in 1977 by only three hundred teachers. With the relaxation of the Covid-19 guidelines and protocols that had been given by the government at the peak of the deadly pandemic, the AGM registered a record attendance of over two thousand members. By the same token, over eighteen thousand members followed the AGM’s online transmission. In 2021, Mentor Sacco amended one of its bylaws, giving room for hybrid meetings.
More members
Delivering his speech during the well-attended AGM, the Chairman, Mr. Anthony Kamau, observed that the Sacco’s remarkable reputation in financial stability, attractive product offering and an aggressive marketing campaign contributed to its growth in membership. “In 2022, we recruited 5,633 new members, compared to 4,517 in 2021,” said Mr. Kamau adding that this led to 15.1% growth in total membership from 28,032 in 2021, to 32,599 in 2022. Mentor Sacco was able to make major inroads into Kiambu, Nairobi and Kajiado counties as a result of a well-coordinated marketing campaign.
Asset base
SASRA ranks the Saccos with an asset base of over Kshs.5 billon as tier one. In 2022, Mentor Sacco’s asset base grew from Kshs. 10.3 billion in 2021, to Kshs.11.76 billion. This represented a growth rate of 14.1%. It was 3.3% higher than in 2021.
More growth
The minimum amount of share capital that every member should invest with Mentor Sacco is Kshs. 30,000. Nevertheless, the board has allowed willing members to boost their share capital beyond the said amount, hence earning more dividends. In the 2021 financial year, Mentor Sacco’s share capital grew from Kshs. 625.8 million to Kshs.739.5 million. That was an increase of 18.2%, in comparison to 13.7% in 2021. Additionally, the total members’ deposits increased from Kshs. 7.84 billion in 2021 to Kshs. 8.908 billion.
In the 2022 financial year, Mentor Sacco also performed well in the lending business. “ Over 10,811 members were financed to the tune of Kshs. 7.4 billion, compared to Kshs. 7.12 billion granted in 2021,” said Mr. Kamau.
Higher dividends
True to its tradition, the total income of Mentor Sacco grew from Kshs. 1.315 billion in 2021 to Kshs. 1.541 billion in 2022. In that regard, members were paid dividends amounting to Kshs. 1.018 billion. That was an equivalent of 66% of the total income in the said financial year. It was 18.7 % more than the 2021 dividends payment.
Most importantly, in 2022, Mentor Sacco held a series of meetings in various electoral areas for its members who have already retired, in a bid to retain and reassure them of continued support. According to Mr. Kamau, going by its five year strategic plan, Mentor Sacco will continue with its aggressive marketing campaigns in order to win more members , mobilize higher deposits and give more credit. Additionally, the Sacco will continue strengthening its corporate governance and educating its members on how to make sound financial decisions.
Digitization
According to Mrs. Joyce Ndegwa , the Chief Executive Officer , besides the branches , the Sacco has also embraced digitization as one of its delivery channels. “ As an institution, we believe that in this day and age, digitization is the way to go ,” she says. “ Majority of our members are time conscious and they prefer transacting digitally as opposed to queuing in the physical branches,” she adds. To that end, Mentor Sacco has developed a mobile banking product ( dubbed Mentor Quickcash). “ Our target is to serve 80% of our members through this platform and so far, we have achieved 76%,” she observes.
Additionally, it has embarked on a drive to refurbish its branches in line with its members’ needs and market trends. “The branches had become a bit old and we therefore decided to refurbish them so that they can comfortably serve our members,” she says. “ We would also want our members of staff to work in a conducive environment,” she adds. Since the banking halls are spacious, the members are able to maintain social distance which is one of the most effective ways of curbing the spread of the Covid-19 pandemic.
Recently, Mentor Sacco also relaunched its website in order to serve its members more effectively and efficiently. “Our website is now more interactive and members are able to make enquiries through it, apply for loans and mobile banking among , besides uploading documents like identity cards and personal identification numbers among other services,” says Mrs. Ndegwa.
In this era of digitization, cybercrime has become a major threat. In that regard, Mentor Sacco is working closely with reputable information communication technology ( ICT) firms in enhancing security measures for its digital platforms. “As we continue developing and offering various digital products and services, we are also investing on cyber security for the benefit of our members and the safety of their funds,” she affirms.
Mrs. Ndegwa acknowledges that the board members have supported the Sacco immensely in its road to success. “The board has supported us in meeting and exceeding the members’ expectations,” she says.
Mentor Sacco’s flagship branch is in Murang’a town. It is housed in the Sacco’s ultra-modern headquarters – Mentor Complex. The spacious branch was recently refurbished. Mrs. Doreen Senteu, the deputy branch manager highlights more about that development. “ We recently refurbished our branch because it was a bit squeezed,” she says. “ The registry and credit departments for instance were being housed at the branch but they have now been relocated to other floors in the main office,” she adds. The branch stands out because of putting up unique cubicles where members are being served individually. Owing to the privacy of these cubicles, members can confidently transact business with the assistance of the staff members at the branch. “ No member can feel as if his or colleague is eavesdropping on their conversations with our staff members,” affirms Mrs. Senteu.
In 2010, the second branch was established by Mentor Sacco at Kenol. This is a fast growing commercial town in Murang’a County. Its growth has mainly been attributed to an efficient road network linking it to Thika, Nairobi as well as Murang’a, Sagana, Karatina and Nyeri towns. Some of its residents are able to commute to Nairobi on a daily basis to earn their daily bread since there is a highway linking the two towns. Mr. Erick Munene is the manager of Kenol branch. “ Over the last twelve years, our branch has grown exponentially in terms of membership and loan portfolio,” says Mr. Munene. “ We very much acknowledge and appreciate the support they have given to us since our establishment,” he adds. The members who are served in this branch include teachers, investment groups ( popularly known as chamas) and the business community. “ We have accommodated very many business people operating in this town and we offer them loans at very competitive rates as well as tips on financial management,” he avers.
There are members of staff at the customer experience desk, counters and the back office. They all report to the manager who oversees the operations at the branch.
The fast growth of the Kenol branch informed the board’s decision to open a new branch at Thika town. This branch is strategically located in Thika’s central business district and members are therefore able to access it with ease. Its branding also gives it a lot of visibility. Madam Rosemary Mukoma, a long serving staff member of Mentor Sacco is the manager of the branch. She is very delighted that there are very many members who are currently joining the branch owing to aggressive marketing by the Sacco. “ Our membership comprises teachers, civil servants, county government employees and business people,” she says.
Being the capital city of Kenya, Nairobi is a hive of activity. There are many entrepreneurs, formal employees in private and public sectors as well as individuals visiting the city for business and leisure. As part of its expansion strategy, in 2015, Mentor Sacco opened a branch in Ngara, Nairobi. Its current manager is Mrs. Anastaciah Kamande.
“ This branch has a big catchment area – Nairobi and Kiambu counties,” says Mrs. Kamande. “ Being the only branch in the capital city, we usually receive members from other branches who come to make big transactions,” she adds.
Financial access enables people to achieve various goals in life. Most importantly, by accessing financial products and services, people are able to improve their standards of living. Unfortunately, many residents of the far-flung corners of our country have limited access to financial products and services. Against this background, in 2020, Mentor Sacco opened a full-fledged branch in Ithanga town, which is located in the lower part of Murang’a County, bordering Machakos. It is the only financial facility of its kind in the smallbut fastgrowing town. Serving a predominantly rural clientele, the Sacco has offered them an opportunity to save in ‘chamas.’ Mrs. Virginia Kieya is the branch manager. “ Before this branch was established, our members used to travel all the way to Thika or Kenya for services,” she says.
Even as it serves its members digitally, the branches still remain a critical delivery channel for Mentor Sacco. Their relaxed ambience, spacious halls and friendly staff have given the Sacco a competitive edge. Indeed, these magnificent branches are a home away from home … a conducive environment for the members to meet their financial needs.
HOW MENTOR SACCO HAS ADDED VALUE TO OUR LIVES
ESTHER THUO’S JOURNEY WITH MENTOR SACCO
Esther Thuo, from Murang’a County is a member of Mentor Sacco. She joined the Sacco in 2010. “ I started by making small savings in the Sacco, little did I know that it would one day become a giant,” she says. She is an early childhood development education ( ECDE) teacher.
Through her savings, she has earned handsome dividends over the years. In the same breath, the Sacco has financed her children’s education – from primary up to the university. “ Currently, I am making arrangements to buy a piece of land and I will be financed by the Sacco in order to attain that goal,” she says.
DANIEL IRUNGU USES JIJENGE LOAN FROM MENTOR SACCO TO PUT UP A PERMANENT HOUSE
Daniel Irungu became a member of Mentor Sacco in 2010. “ The Sacco has been of great help to me in the sense that I have been able to save through ordinary shares and share capital , hence earning good dividends,” he says. “ The loan products offered by Mentor Sacco are flexible , affordable and they are processed very fast,” he adds. Among other products, Irungu has benefited from Jijenge – a development loan from Mentor Sacco. In 2011, he put up a permanent house after benefiting from this loan.
Irungu joined Mentor Sacco immediately after being employed as a teacher by the Teachers Service Commission (TSC). Besides putting up a permanent house, the Sacco has financed the education of his children. “Since Mentor Sacco’s common bond is already open, I would kindly wish to make a humble appeal to people from different professions as well as the business community to come on board,” he ends.
MENTOR SACCO SUPPORTS ELIZABETH WANJIRU TO INVEST IN REAL ESTATE
Elizabeth Wanjiru joined Mentor Sacco in 2018. She was referred to the Sacco by a close friend. After saving with the tier one Sacco faithfully, she was financed to purchase a piece of land in Nanyuki. “ By April this year, I will have finished paying the loan in full and thereafter, I will apply for another one,” she says. “ Were it not for Mentor Sacco, I would not have afforded to purchase the land,” she adds. She is planning to put up rental houses on the land in the near future with financial support from Mentor Sacco.
MENTOR SACCO HELPS GODFREY NGUNYI TO EDUCATE HIS CHILDREN
Godfrey Ngunyi is a teacher by profession. He joined Mentor Sacco in 2008. From his investment in share capital, ordinary deposits and Mazao shares, he has educated his children from primary school up to the university. “ My first born child graduated from the university last year ,” he affirms. Ngunyi saves through the Sacco’s front office services activity ( FOSA).
ROSALINE KANG’ETHE AND HER FAMILY BENEFIT FROM MENTOR SACCO
Rosaline Kang’ethe has been a member of Mentor Sacco since 1997. One of the biggest ways that she has benefited from the Sacco is educating her children.“I educated my daughter in the university through financing by Mentor Sacco and after being employed, she became a member,” she says.
Additionally, the Sacco has financed her to purchase and develop a commercial plot. “ I have also purchased a personal car through the financial support of the Sacco,” she affirms adding that the living standards of her family have improved because of the Sacco’s assistance.
Rosaline appeals to all the members to borrow from the Sacco and benefit from its friendly and innovative loan products.
JOHN MWANGI URGES MORE MEMBERS TO JOIN MENTOR SACCO
John Mwangi Kimotho joined Mentor Sacco in 2021. He attended its 46th AGM and acknowledged that the Sacco is meeting the needs of its member. He has been financed by the Sacco to invest in agribusiness. “ My farming enterprise has two dairy cows and four pigs,” he says.
Mwangi has also benefited from Mentor Sacco’s mobile loan product – dubbed Mentor Quickcash. He frequently uses it whenever a need arises because of its convenience and accessibility.
“ I passionately urge my professional colleagues and friends to join this fast growing Sacco in order to benefit from its wide array of products and services,” says Mwangi.
