Sacco maps out strategies in order to attain and sustain ambitious growth by embracing technology and good governance practices
By George Gichuki
Mhasibu Sacco successfully organized its inaugural exhibition – dubbed # Mhasibu Expo – in December. “The event was aimed at bringing our members and other stakeholders together to showcase their products and services,” says Mr. Andrew Bulemi, the chairman. Those in attendance were also educated on various financial and lifestyle skills by the guest speakers. Of critical importance, the exhibition also incorporated a kids’ fun day with activities like games, fun and financial literacy lessons. “The aim of bringing on board the kids was to have them mentored at an early age, besides teaching them about the importance of saving and making informed financial decisions,” further says Mr. Bulemi.
Mhasibu Sacco was registered in 1986. This move was spearheaded by the Institute of Certified Public Accountants of Kenya – ICPAK. Its aim was to provide savings and credit facilities to members of ICPAK. With time, the membership expanded to include the members’ spouses and children, as well as accountants in training. The leading Sacco has two subsidiaries – Mhasibu Properties Limited and Mhasibu Housing Company. Its main office is in Nairobi and it has two branches – Mombasa and Kisumu.
While addressing members and stakeholders during the exhibition, Mr. Bulemi observed that Mhasibu is on a transformation agenda which is guided by its 2010 to 2020 strategic plan. “The agenda seeks to position the Sacco as one of the best in the country and regionally,” he emphasized.
To that end, Mhasibu has developed a robust risk management programme. To start with, the programme will ensure that the Sacco’s records are kept and stored properly. Cloud computing concepts which will allow real time back-ups have also been introduced. Moreover, Mhasibu has introduced a comprehensive insurance cover for loans and deposits as well as a register to profile risks.
Mhasibu Sacco reviews its products consistently in order to meet the needs of its members. From 1986 to 2007, it offered four major products namely: normal, refinancing, emergency and school fees loans. In 2007, the Sacco introduced a loan repurchase product. Moreover, asset financing and holiday product were introduced in 2012 and 2013 respectively. In the same breath, it introduced motor insurance and instant loan products in 2014 as well as CPD hours financing in 2015. Lastly in 2016, Mhasibu launched a product branded gold loan – a sixty months loan- as well as a restructuring product.
Its members maintain a monthly deposit contribution, children accounts and holiday savings. In that regard, it introduced a fixed deposit product in 2017. The maximum loan limit that a member can qualify is four times his or her savings with a ceiling of Kshs. 30 million.
“To ensure excellence and quality services to our members, we have anchored our operations in four key pillars,” says Mr. Bulemi. These pillars are: financial efficiency, improved customer service and image, cost effective processes and investment in human capital.
Consequently, Mhasibu Sacco has embraced technology so as to enhance service delivery to its members. For instance, its mobile banking platform is at an advanced stage and soon, the members will be able to access their accounts using their mobile phones and apply for loans of up to Kshs. 50,000. In addition, it has enhanced the members’ website portal.
Mhasibu’s target is to grow to 44,000 members, have deposits amounting to Kshs. 8 billion and a loan portfolio of Kshs. 10 billion by 2020. To attain and sustain this phenomenal growth, the leading Sacco has put in place good governance practices.