How Mwalimu SACCO is leading peers as SACCOs central liquidity base expand

In a year or two, SACCOs might have a central liquidity base that would facilitate inter-SACCOs borrowing, jointly wielding more than KSh1.5 trillion asset base across the country.

At the top of the Kenya’s Sacco movement as per SASRA’s 2023 report ranking is Mwalimu National Sacco.

Popularly known as the teachers Sacco, and founded in the early 70’s, it’s at the heart of Nairobi’s Upperhill where whispering curbs and roads that are surrounded by towering skyscrapers, shields it from the hustle and bustle of the Central Business District.

For perspective, the total membership among the Regulated SACCOs increased by 7.02% to reach 6.42 million members in 2022 compared to a membership base of 5.99 million in 2021. This is according to the SACCOs Societies Regulatory Authority (SASRA). This also contributed to a total asset increase of 10.31% to reach KSh890.31 billion in the last year.

Mwalimu Towers, the head office of Mwalimu National SACCO in Upperhill Nairobi. The SACCO was born of the premise that “we are who we are because a teacher believed in us.” It is the largest African SACCO with a membership drawn from teachers all over Kenya. Mwalimu National seeks to enable the people who made all of us who we are today, the TEACHERS, access affordable financial services.

Mwalimu SACCO considerable growth

A considerable growth, having in mind the economic turmoil experienced post-COVID, Mwalimu SACCO added positively to this margin, boosting the numbers significantly to post a Ksh.64.06 billion asset base.

Overtime, this institution has grown, despite the fear of an alleged crippling loss from investing in a failing bank, then in year 2022, it made a complete 360 degree turn to emerge the top SACCO in Kenya based on the annual supervision report by SASRA, with a turn-over of KSh7.74 billion; the largest in the country. This was an almost KSh200 million growth in said base within a year.

Mwalimu SACCO Chief Executive Officer Kenneth Odhiambo says this can directly be credited to the unwavering confidence of its member base, which is dancing above the 100,000 person’s mark.

“The members of this SACCO have utmost faith in Mwalimu SACCO, the communal aspect has been our largest weapon yet,” he explains, confirming that discussions are underway to adjust the quasi-banking aspect to net in a larger youth membership base, however deterrents are still there; A lack of information, the change in wealth perspective, a poor savings culture and an evasion to lengthy entry requirements has solidly stumped the growth of not only this SACCO, but of cooperative societies in general.

Mwalimu SACCO CEO Kennedy Odhiambo says the modern-day youth want everything ‘fast fast’, a thought shaped largely by social media, that advertises flashy cars and pricey vacations as the epitome of success. As such, he says Mwalimu SACCO has to re-adjust its strategies to suit the modern members too.

Mwalimu SACCO members base

Mwalimu SACCO depends fully now on the cooperation and collaboration of its member base, before the country rolls out the National Payment System, lowering the cost of credit, increasing competitiveness with banks, and forming a basis of survival for up-and-coming SACCOs that do not have an expansive member base yet.

And most importantly, the move would ensure liquidity for any member of any SACCO in any region. The movement of money signifies the increase in transactions, turning positively the economic cycle of SACCOs and bringing them up to international standards.

In response to members’ housing needs, Mwalimu SACCO decided to pilot a housing project in Kisaju and called it – Kisaju Housing Project. This project is currently open to the public. The Kisaju project seats on a 20 acre plot along the Kitengela – Isinya road.

Odhiambo says the stakeholders are benchmarking practices in credit granting institutions in foreign countries like Canada, to establish systems and frameworks that would appeal more to all customer bases. Even the elusive youth.

‘Youth now do not want to persevere’

Odhiambo quips the modern-day youth want everything ‘fast fast’, a thought shaped largely by social media, that advertises flashy cars and pricey vacations as the epitome of success.

“It’s all about perspective. Back in my day, my priority was getting a piece of land after I left university. After which I wanted to build a house, the youth now do not want to persevere through the process.” He says.

This interesting insight is why the SACCO is now adjusting entry requirements and providing a quasi-banking option, to suit the needs of the modern-day member. Moves that, alongside digitization of processes and the actualization of a Central Liquidity System for SACCO, will usher in a new dawn for cooperative societies in this country.

And as for the future? The CEO says Mwalimu SACCO, and other such institutions, plan to sensitize the public on expanding asset bases, and the significance of communal savings when undertaking projects.

This, he says, would ensure they remain top of the game when competing with other SACCOs, leaving competitors to play catch-up