Ukulima Sacco, a leading Deposit-Taking institution, last year introduced cardless transactions that enabled members to withdraw money without using an ATM card.
The Sacco partnered with Family bank to give its members access to their accounts enabling them to make transactions at the comfort of their surroundings.
Through this partnership, the Sacco members have been able to access their money comfortably through mobile phones at all Family Bank agents and ATMs across the country.
Ukulima Sacco chairman Dr. Phillip Cherono said the partnership is key to decongesting Sacco Branches when making withdrawals, which has been key in slowing down the spread of the Covid -19.
“The B2B transactions and Card less transactions will allow our members withdraw and make payments to other banks and or even settle payments for their purchases with easy anywhere in the country,” said Cherono.
The Sacco has also partnered with PESALINK, a mobile phone banking platform run by Family bank and launched Instant ATM Card printing through the support of Co-operative bank.
Speaking during the launch of the partnership recently, Dr Cherono said the new developments are in response to the disruptive operating environment, particularly the challenge posed by the Covid-19 pandemic.
During the event, the Sacco announced that it will soon be rolling out new mortgage products offered in partnership with Kenya Mortgage Refinance Company (KMRC).
KMRC Chief Executive Johnstone Oltetia stated that the firm is committed to joining efforts to reduce the enormous housing supply gap to enable Kenyans own homes.
Mr. Oltetia noted that the Treasury-backed lender, which offers banks and Sacco’s cash for onward lending to households, will start advancing loans at the end of this month.
“Since inception, we have been building financing to meet the market demands of providing loans to partners and customers to enable them to acquire affordable housing at cheap rates. We will announce the first lending by the end of September,” he said.
Dr Cherono said that the developed mortgage product was recently approved by Sacco Societies Regulatory Authority (SASRA).
“Saccos continue to play an important role in the realization of housing and in mobilizing funds for the purchase of land to put up houses, besides raising capital for housing development. The Kenyan SACCO sub-sector is the largest in Africa and ranks seventh globally. We want to maintain that status by lending to Kenyans at affordable interest rates.”
He added: “Prospective buyers will qualify for mortgages of up to Sh8 million with a repayment period of up to 20 years. We are very happy today that Ukulima Sacco is part of this great and noble initiative, and the partnership with KMRC supports our mission of enhancing members’ empowerment through the provision of quality financial services, in providing long-term funding and reducing our reliance on short-term loans.”
According to the Chairman, the funding is expected to drive the number of mortgage accounts to an estimated 2,000 in the first year and 4,000 by the year 2022.
Ukulima Sacco CEO Richard Nyaanga said that the newly launched mortgage product is a game-changer and will help in quenching the thirst of the majority of Kenyans who are in dire need of owning a home.
“We are well aware of the current, social and economic difficulties, particularly to our sector, and this will mean that we need to get extra creative and aggressive business ideas,” said Mr Nyaanga.
Ranked position ten country-wide by SASRA, Ukulima Sacco total assets grew to reach Sh11.9 billion at the close of the financial year ended 31st December 2019.
Members of Ukulima Sacco were paid a dividend of 15 per cent on their shares in 2019, up from 11 per cent in 2018. They also earned higher rebates on deposits at 9 per cent from 8.5 per cent the previous year.
