A Taste for Innovation: How Jamii Sacco is a Game Changer in Banking
In an exclusive interview with Co-op News, Jamii Chairman Mr Harrison Katoni shares the Sacco’s journey to paperless banking and insights into the future.
Sitting at the helm of a trendsetter – Jamii DT Sacco, Mr. Harrison Katoni, the Society’s Chairman, has his job well cut out. He is succinct and eloquent on the Sacco’s vision and mission. He possesses a well-defined plan to transform the Sacco into a fully digital and paperless operation.
“A good leader must have foresight, much like a giraffe, which can see far into the distance. This enables them to anticipate future events and plan accordingly. As a leader, you are in control of the vehicle, and it’s your responsibility to drive it well and safely, ensuring that all passengers reach their destination safely,” says Mr. Katoni.
“Our top priority is to embrace technology and create a future where it seamlessly integrates with our human-centric approach to banking. We believe this will help us offer an efficient, secure, and deeply connected banking experience that aligns with our values,” adds Mr. Katoni.
The Sacco’s primary goal is to cultivate a saving culture and improve lives through accessible credit facilities, and digitization is the key to achieving that.
Its growth plan revolves around improving every life and providing members with the best financial solutions. Since its establishment in 1972, innovation has always played an essential role at Jamii Sacco.
“We want to ensure that our technology is always relevant to our customers. To achieve this, we constantly collect customer data to understand their needs and wishes. We also keep in touch with them regularly to stay up-to-date with their changing demands,” Mr. Katoni explains.
Operational Efficiency
The Society has grown from humble beginnings into a large institution that now owns an ultra-modern building with a spacious banking hall in Nairobi City, enabling the Sacco to provide better services to members’ satisfaction. The Sacco is regulated by SASRA.
Its epic growth is guided by robust strategic plans, with the current one spanning from 2021-2025 and anchored on four pillars: membership growth, operational efficiency, institutional capacity, and products and services.
The Sacco has implemented a core banking system that allows seamless multi-functions, enabling members to use their phones as branches. Its mobile platform -Jamii M-Cash- offers members loans and advances of up to Ksh50,000 via their phones.
Despite having only one branch, the Sacco has deployed appropriate banking technology to ensure members access their services even in the remotest places. The Board plans to open satellite offices in Mombasa, Nakuru, and Kisumu.
“A good leader must have foresight, much like a giraffe, which can see far into the distance. This enables them to anticipate future events and plan accordingly. As a leader, you are in control of the vehicle, and it’s your responsibility to drive it well and safely, ensuring that all passengers reach their destination safely”- Mr. Katoni.
Jamii has consistently won the annual award for the best Sacco in technology optimization by the National Ushirika Day Council.
“Most of our services are online. Recently, we implemented an electronic document management system (EDMS) that digitized our records. We also introduced a customer relationship management system (CRM), ensuring members’ concerns are promptly addressed,” says Mr Katoni.
The Sacco is introducing an e-board system to improve management efficiency by ensuring board members receive information early enough to submit their suggestions before the meeting.
Mr. Katoni says the Sacco is committed to training the Board, staff, delegates, and members to ensure they work together and meet the organization’s aspirations. “At Jamii Sacco, people always come first, and we have extensive programs for education and training.”
The Sacco continuously evaluates its product offerings to meet its members’ evolving needs better. It is diversifying its focus into the SME market. “We are offering unique financial solutions and educating them about our products,” says Mr Katoni.
The Sacco actively recruits new members while encouraging retiring members to remain active in the Sacco. “We opened our membership to business people, bodaboda, groups, institutions, and diaspora. We have ensured everyone gets the tailored financial services and products they need. There’s nothing more gratifying and rewarding than seeing our members succeed,” notes Mr Katoni.
Mr. Katoni became a member of Jamii Sacco in 1979 while working at the then Ministry of Home Affairs. “As a young man, I was excited to learn from colleagues of a Society where I could save and get loans. Out of curiosity, I joined and later applied for a loan. My first loan was Ksh10,000, a huge amount at the time, given that the highest note was Ksh100. I was so excited that I ran home and hid the money under the mattress. I used it to buy building materials for my rural home. Since then, I have accomplished much through the Sacco,” Mr Katoni narrates.
In 1987, his colleagues nudged him to contest for the Central Management Committee position, which he did, and he was elected during the AGM the same year. As the long-serving Jamii Sacco Board member, Mr Katoni has seen the Sacco grow from strength to strength.
The Sacco’s financial performance has been impressive over the years, and it currently has an asset base of Ksh5.7 billion, Ksh3.9 billion in total members’ deposits, Ksh394 million in share capital, and a loan book of Ksh4.01 billion as of December 31, 2023. The Sacco’s active membership has also increased to 25,523.
Mr. Katoni was elected as the Chairman in April 2022 and looks forward to taking the Sacco to the next level, particularly in reducing the Portfolio at Risk (PAR).
“Additionally, my goal is to ensure the Sacco fully becomes paperless. We want members to join the Sacco, save, access loans, and get guarantors online. Technology has revolutionized banking; Jamii Sacco must remain ahead of the curve,” he states.
Members’ education and training are at his heart, which he says delivers good results. “Our customers must also be treated highly and receive quality products and services, affordable loans, and high returns. We want to ensure CRM is improved further.”
Mr Katoni emphasizes that cooperative leadership requires selflessness, accountability, and integrity. He urges members to avoid politics in Saccos’ leadership and management. “Saccos are the best for wealth creation. A Sacco builds your capacity to save, accumulate wealth, and attain financial security,” he says.
Born in Machakos County, Mr Katoni attributes his leadership skills to his time as a prefect at Masii High School. He has extensive leadership and management training and is a master’s degree graduate specializing in Human Resources.
He states that Jamii Sacco values the need to be agile, innovative, and quick in meeting customers’ needs. “Our professional and competent staff have made Jamii Sacco a success,” he says.
CPA Daniel Achieng’, Chief Executive Officer, praises the Chairman and the Board for their policy guidelines that ensure successful management. “The Board’s composition is a blend of expertise with members trained in various fields, ensuring all decisions are well-resourced and researched. Additionally, the Sacco is highly liquid to meet members’ financial needs,” states CPA Achieng’.
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