Solution Sacco celebrated its 30th anniversary this year, marking a journey that has significantly improved the social and economic status of thousands of its members.
A key hallmark is the Sacco’s determination to reach out to even the remotest part of society to deliver a financial solution to the underserved and unbanked members of the community.
Deputy President Rigathi Gachagua led the celebrations at the Kinoru Stadium, Meru. He was accompanied by Cooperative CS Simon Chelugui, Agriculture CS Mithika Linturi, Meru Governor Kawira Mwangaza, Laikipia Governor Joshua Irungu, Cooperative PS Patrick Kilemi and other dignitaries.
The DP lauded Solution Sacco’s financial inclusion role by stamping its authority in the country as one of the most accessible societies.
“Today, it is present even in the remote corners of northern Kenya. The Sacco’s footprint now covers nine counties – Meru, Isiolo, Tharaka Nithi, Nairobi, Kitui, Marsabit, Samburu, Laikipia, and Kajiado, serving its members in 32 locations,” he said.
The outcome has seen a transformation in the members’ returns be it in agriculture, dairy, coffee, tea, salaried and small traders as well as in institutional banking.
Founded to assist teachers in achieving their financial dreams, the society opened a common bond to allow other members of society to be part of the success.
“We have lived up to our mission of reaching far and wide through inclusive, sustainable, and effective action to transform the lives of our members and establish lasting peace, security, and shared prosperity,” stated Board Chair Francis Rimberia.
Living up to its vision of “To champion socio-economic empowerment of our members”, the Sacco’s efforts to undertake a range of strategies have transformed most of its businesses, both in terms of financial and operational dimensions.
“These changes have enabled the Sacco to compete favourably and become one of the most profitable and financially robust savings and credit co-operative,” he said.
“We will continue to innovate, adapt, and evolve to meet their ever-changing needs,” he promised, adding that together, they will build a strong society.
Sacco CEO Daniel Marete said that the journey has been marked with bravery and experienced sustained, exponential growth.
The Sacco was borne after the split of the Meru Teachers Sacco in 1993, giving rise to Meru Mwalimu Sacco, which rebranded to Solution Sacco in 2012.
By deploying technology, Solution Sacco has enabled members in Samburu and Marsabit who used traditional forms of savings such as putting money in a box join the financial inclusion journey.
The technological revolution has reduced the risks associated with savings and demonstrates the many opportunities available.
“The fact that people are still using this traditional method, which is open to risks, is proof that there are opportunities to take care of their needs and solve problems in society,” said Marete.
Providing financial solutions to the communities in northern Kenya, he stated, has fostered peace and coexistence among them.
“What we have discovered is that when they join the groups to save money and emancipate themselves from poverty, they do so without considering the communities they come from. They solve their problems as one people,” he says.
The storyline of Solution Sacco is incomplete without the significant role of by the country’s technological innovations. It was for example among the first DT Sacco to be registered to open agencies.
Through its Solution Mashinani, with over 750 agents, it has increased its footprint to serve even those in remote areas, giving many the opportunity to save and borrow with ease and be part of the Society’s improved financial inclusion efforts.
It was among the first to install an ATM machine in 2006 to give its members reliable, accessible, and affordable services.
Solution App enables members to transfer cash to any banking institution conveniently and reliably.
In collaboration with other partners, the Sacco is Verve Card enabled, and members can receive or transfer cash, and obtain services from any point-of-sale outlet across the globe.
The virtual branch helps to serve diaspora members from all over the world and has registered members from Australia, the United States of America, Europe, and in Africa.
“Moving forward, we are constantly improving service to our members, considering where we’re coming from and where we’re going as we build capacities to participate in a global market economy, improve the welfare of our members and impact the society positively,” Marete said.
Solution Sacco was certified Visa acquirer Sacco, which means members can access their accounts using Visa and Verve cards from several banks across networks.
The Verve Card allows members to withdraw cash from any Verve-enabled ATM and can be used at points of sale.
“We have also installed an Intelligent Teller Machine (ITM) at the new Makutano branch, which enables members to withdraw and deposit money without human intervention.”
Through online services via the websites and a mobile application that started in 2018, members can transact or apply for loans and secure their list of guarantors.
This has benefited members, as it allows them to transact from any location in the country. The digital system has the additional advantage of enabling members to get access to loans of up to 150,000 digitally.
Using the USSD code *686#, one is able to check their balances, apply for quick loans, or even dividend advances, and withdraw and deposit money.
In 2020, it launched “Lipa na Solution”, which enables payments at points of sale at no extra cost to members.
The Sacco also created a message feedback platform where members can post their enquiries.
The Sacco has enabled members to do bank interoperability, which has eased money transfer services to members.
SASRA CEO Peter Njuguna identified the Sacco as one of the top-performing tier-one Saccos in the country.
“It has continued to actively champion socio-economic empowerment through its vast savings, credit and investment products and services. The Sacco has depicted steady growth as per the audited financial statements,” he said.
Njuguna said that its impressive growth has made contributions to the financial empowerment of its members and the Kenyan economy at large.
The society has maintained a steady growth since its formation and is classified as Tier-1 Sacco, with an asset base estimated at over Ksh8.3 billion as of December 31 2022. This was a KSh2.6 billion increase compared to the previous year.
With a deposit of KSh5 billion by the close of December 2022, it has emerged as one of the best-performing Saccos in the country.
”For a couple of years now, we have declared dividend pay-outs to members of up to 18 percent and interest on deposits rate of 13 percent. Looking at who our members are, it is evident that we take care of virtually everybody in the economy – from the salaried to the small trader in the village,” Marete said.
The fast-growing Sacco that was initially dedicated to teachers opened its doors to other employees and traders from other sectors, increasing membership to more than 30,000 and member deposits to over Ksh5 billion.
The Sacco has purchased a plot in Meru town and plans to build an ultra-modern office block.
Located at the heart of Meru town (Nkubu stage next to Khetias Supermarket), the head office host the main offices, stamping its authority among peers in the region and the country.
The new head office will feature a modern banking hall, administrative offices and a state-of-the-art communication (data) centre, among others.
It has a foothold in key sectors of the economy, such as agriculture, dairy, coffee and tea farming, as well as institutional banking and financial support to micro, small, and medium enterprises (MSMEs).
Consequently, it walks step by step with members to address their unique needs such as guiding a dairy farmer from the point of buying the cows and feeds, to putting up modernized cow sheds, and providing asset financing for milk transportation and coolers, as well as tracking the entire value chain with a view of bridging all gaps.
This is an insurance agency that offers insurance services to members’ assets.
Through it, the Sacco has been able to provide insurance services that cut across numerous sub-sectors, hence mitigating insured business risks, including health.
Solution Housing and Investment Co-operative
To enable members to own houses, land and other investments, Solution Housing and Investment Co-operative was formed to spearhead the dreams.
Individual members and organized groups can access financing and buy property in various parts of the country and realize their dreams of owning assets.
Solution Sacco goes the extra mile in holding regular forms to educate members on how to manage their finances.
Recently, at least 150 retired teachers were trained on how to handle their finances. Consequently, members have skills and knowledge that allow them to make informed decisions with regard to their financial resources.
This enables members to save and build their homes rather than wait to use the pension to build their dream houses.
The Sacco has also created pension pay points to begin channelling their salary via the Sacco so as to be part of the beneficiaries.
To achieve its mission, Solution Sacco partners with other institutions for ease of service delivery.
It has for example partnered with coffee societies to give coffee farmers an opportunity to invest using their produce by converting them into shares.
Farmers are able to borrow loans using their produce to improve their livelihoods and increase coffee production.
Coffee societies can also get asset financing to buy delivery trucks, land and seedlings, and to facilitate maintenance of machines, and mechanical repairs.
Solution Sacco has also partnered with tea factories, both under the Kenya Tea Development Agency (KTDA) and privately owned companies, to assist farmers with short-term loans. Just like in the coffee sector, the Sacco is also financing tea factories.
Corporate Social Responsibility is at the heart of Solution Sacco, which participates in welfare and charity activities to continually improve the living standards of people in the community through health, education, and environment.
Through the Solution Foundation, the Sacco seeks to promote sustainable development in communities through its focus on the above pillars.
According to the Board Chair Francis Rimberia, Solution Sacco is among the very few organisations in the country with a registered CSR to uplift the needy in society.
The Sacco has donated foodstuff to communities stricken by hunger in regions where it operates.
It for example supported 60 needy students drawn from the counties that the Sacco operates in, and who performed well in the 2021 and 2022 Kenya Certificate of Primary Education (KCPE) examinations but whose parents were unable to pay their fees.
Through the Foundation, the Sacco will source funding from various partners with the aim of assisting vulnerable groups in society.
During the 2023 Ushirika Day celebrations, Solution Sacco was ranked as the third best in credit management among the Employer-based Tier 1 deposit-taking Saccos.
