It was a hive of activity at Kikuyu Township Primary School during the last day of a series of interactive sessions between tier one Sacco and its growing membership
By George Gichuki
Mentor Sacco concluded its 2024 members’ information days exercise on a high note. The venues of the sessions’ final day were: Githunguri Township, Manguo , Igegania and Kikuyu Township primary schools all in Kiambu county. It is a region that the tier Sacco has consistently penetrated in the last few years, growing its membership and profitability in the process. “We are keen on strengthening our presence in Kiambu county ,” said Mr. James Kiago, secretary of Mentor Sacco’s board of directors during the MID at Kikuyu Township Primary School. “ In the last two years, many members from this region have joined us,” he added. Mr. Kiago attributed the fast growth in membership to the Sacco’s innovative product offering and efficiency while responding to its members’ needs.
Spoilt for choice
Mrs. Joyce Ndegwa, the chief executive officer made a presentation on the Sacco’s product offering and also fielded questions from members. In her presentation, she told the members that the Sacco’s savings account targets both salaried and non-salaried members. The funds in the said account can be accessed by members either over the counter , or through the mobile banking platform or automated teller machines ( ATMs). “ Every year in July, deposits in this account are paid an interest dubbed ‘furahia jasho lako’ – Kiswahili for ‘enjoy your sweat’ – which motivates members to save more,” affirmed Mrs. Ndegwa. The non-withdrawable deposit product on the other hand enables members to make monthly contributions which earn interest for them annually. Most importantly, it is the multiplier account for loans.
Mentor Sacco has also developed a savings product dubbed Mazao deposits whose interest is paid at the end of every financial year. In 2023, the interest on Mazao deposits was paid at a rate of 12.4%. By and large, it is an incentive to members to make additional contributions to their ordinary deposits. Unlike the ordinary deposits, one can make withdrawals from Mazao at any time of the year.
Mrs. Ndegwa encouraged members to channel all their income through the Sacco. “ It is very easy for us to appraise you for a loan if your account is well managed,” she advised them. Further, she said that for one to be a bona fide member of Mentor Sacco, he or she should have a minimum share capital of Kshs.30,000. The share capital earns a member dividends at the end of every financial year and it is a very attractive product for long term savings. In 2023, the dividends on share capital were paid at a rate of 15% – one of the highest in Kenya’s Sacco sub sector.
The chief executive officer was emphatic that Mentor Sacco, being wholly owned by members is keen on enhancing their socio-economic transformation. To that end, it is not driven by profit maximization. “ We charge interest on most of our loan products at a competitive rate of 1% per annum and on a reducing balance; the economic conditions prevailing in the country notwithstanding,” she told the attentive members.