Tower Sacco has recorded a 25% jump in loan disbursement to members in eight months to hit Ksh8.22 billion, up from Ksh 6.57 billion in the same period last year.
The impressive growth defies a tough economic environment that has seen reduced economic activities, highlighting the Sacco’s focus on supporting members across diverse sectors of the economy through affordable lending, partnerships, digitization, and providing innovative solutions for a compelling value proposition toward personal and business growth.
“The Society has continued impacting on the lives of members through lending at an affordable rate and efficient manner. I urge all to visit our branches and choose a credit facility that suits them from various loan products the Sacco offers,” said the Sacco Chairman, Mr Peter Ngugi.
The increase of Ksh1.65 billion on the amount disbursed to members during the period under review pushed the Sacco’s total outstanding loans with members to Ksh17.42 billion as of 31st August 2023, up from Ksh14.42 billion last year, a 20% growth.
Increased lending helped grow the Society’s turnover in six months to Ksh1.47 billion as of 30th June 2023 compared to Ksh1.267 billion in the same period last year, a 16% increase. This boosted the growth of the surplus by 12% to 975.1 million, up from Ksh869 million in six months.
Tower Sacco is increasingly becoming the choice financial institution for people looking for affordable credit facilities and savings accounts offering high returns. Its membership has continued to grow steadily to 216,382 by 31st August this year, up from 188,115 last year. It has over 600 members in the diaspora.
“We have been able to increase our members by 15% or over 28,200 members. We are keen to bring on board more young people to support them achieve financial freedom gradually,” said Mr Ngugi, who spoke during a Special General Meeting at Ol Kalou town.
“Our focus is to offer affordable credit and mobilization of deposits in an effective and efficient manner for the benefit of the member,” he added.
Tower is among 11 Saccos that have partnered with Kenya Mortgage Refinance Company (KMRC) to offer affordable mortgage facilities and has so far disbursed over Ksh200 million to members towards financing affordable housing.
Ranked position eight as the largest Deposit Taking Sacco in terms of asset base by Sacco Societies Regulatory Authority (SASRA), Tower, which currently boosts Ksh21.5 billion in total assets, is set to climb up the ladder next year.
According to Mr Ngugi, they are targeting to grow the asset base above Ksh30 billion by 2026, when the Sacco will celebrate its Golden Jubilee.
In the last eight months, the Sacco share capital and deposits increased by 18% from Ksh15.4 billion to Ksh18.2 billion, highlighting its success in mobilizing savings.
The Sacco’s outstanding growth is fueled by technology optimization in service delivery, with more members embracing its alternative banking channels. During the period under review, 80% of all cash deposit transactions and 60% of all cash withdrawal transactions by members were effected through the Sacco’s mobile banking USSD *655# and Mobile App.
Other alternative channels that offer banking convenience include Sacco Agents, Sacco Link ATM cards (Visa-branded), and Internet banking.
To enhance customer experience and satisfaction, the Sacco has established a dedicated call centre for better communication and customer service with members and other stakeholders. This will ensure an effective and speedy response to members’ queries over the phone and social media platforms. The call centre contact number is 0792 333 111.
A one-stop shop financial institution, Tower Sacco has partnered with various insurance companies to enable members access to insurance services such as life assurance, general insurance policies, and education plan cover.
Tower Sacco launched a heroes card that will be issued to members who have attained the age of 65 years to recognize their sacrifice and support to the co-operative sector. “We value our members who have continued to support the Sacco ensuring its success to this day. With the card they will never queue whenever they visit our offices for any service,” said Mr Ngugi.
Tower, which is one of the fastest growing Saccos in the country according to SASRA, in April launched a modern plaza in an event graced by Prime Cabinet Secretary Musalia Mudavadi. The Sacco profile has consistently ranked high nationally due to its achievements in economic empowerment and transformation of livelihoods.
“We want to grow our market share by taking good care of our customers. We provide diversified loan products at lower interest rates through convenient channels that make it easier for members to access,” said Patrick Njenga, Chief Executive Officer.
“Our staff are well and regularly trained to improve customer service ensuring customer satisfaction at all times. We promise and deliver, living true to our mantra a basket for all your financial needs.”
