Solomon Atsiaya, the CEO, Kenya National Police DT Sacco, has stressed the importance of Sacco leaders improving Saccos, emphasizing their significant role in Kenya’s development. He views the cooperative model as the most effective in enhancing members’ lives through education, health, housing, and agriculture, but he wants leaders to understand one crucial point.
“The entities are owned and controlled by members, and when managed effectively, they can create value.” He spoke at the Kenya Teachers Sacco Association (Ketsa) 3rd Annual Leaders’ Summit in Naivasha. With several years of experience in the subsector and involvement in transforming three Saccos, Mr. Atsiaya believes Sacco leaders can emulate best practices to achieve excellence.
At Kenya National Police DT Sacco, he outlined several areas they have focused on to achieve consistent growth over the years.
Building Financial Capabilities
Mr. Atsiaya highlighted the importance of Saccos strengthening their financial capabilities, emphasizing the need to retain earnings as a top priority. He cautioned that external borrowing is expensive and unsustainable.
He stated, “Building capital provides the opportunity and flexibility to support the community.” In the financial year ended December 31st, 2023, the Society paid 11% on members’ deposits.
He explained, “We must manage members’ expectations, and one of them is to rationalize dividends. We have the capacity to pay higher rates, but it would be detrimental to the institution.” As a result, the Society increased its institutional capital from Ksh1.8 billion in 2022 to Ksh2.1 billion in 2023.
Good Governance
To be a leader at Kenya National Police DT Sacco, Mr. Atsiaya emphasized that one must not have taken a bank loan, and if they did, they should step down from their leadership position. He stressed that if a leader cannot utilize a product, yet others can, it will not benefit the institution. He added that if there is a product or service lacking, it should be introduced. To ensure the board operates with integrity, the Society conducts numerous training sessions for delegates and the board.
“Police Sacco invests significantly in training their delegates and directors to raise awareness of Sacco products and services,” he noted.
Staff Development
Mr. Atsiaya believes that a Sacco should serve as a learning institution, supporting the personal development of its staff. He shared an example of a lady who was initially making tea for him at Kenya National Police DT Sacco and is now a manager. He challenged her to pursue personal development by attending evening classes.
“She would come in the evening and complete her work so that she could arrive late the following day.”
By creating this kind of environment, Saccos facilitate their staff’s pursuit of education. He encourages staff to train continuously, emphasizing that companies thrive on innovative ideas. Consequently, most Sacco managers are promoted from within, and senior managers are not hired externally but encouraged to further their education.
He stated, “This is a reward, as they will be motivated to pursue further education, contributing to a learning and adaptive environment.” He advised Saccos to promote learning as the business environment constantly evolves, with previous requirements differing from current needs.
Corporate Social Responsibility
The Society actively participates in Corporate Social Responsibility initiatives within the community, including supporting the Kenya Police Sacco Stadium. “Through these investments, we gain free advertising, and these involvements are crucial for our progress,” he said. The Society is dedicated to educating the academically talented children of fallen soldiers who are members, from secondary school through university.
“We invite them for a retreat at a five-star hotel, where we encourage them to make a positive impact.” Additionally, the Sacco constructed classrooms and a modern laboratory at Utumishi in Nakuru.
