Saccos Boost Financial Stability through Strategic Investments in Rental Properties and Diverse Revenue Streams
The revenue generated from rental income has emerged as a crucial financial pillar for Saccos, bolstering their financial stability. In recent years, many Saccos have strategically built plazas that not only function as their headquarters but also serve as profitable income generators. This approach has enabled Saccos to enhance their service delivery to members, amplify their visibility, and secure a steadfast market presence.
In tandem with the devolution of government and the escalating need for office space, Saccos have successfully attracted corporate clients such as the Teachers Service Commission, Cooperative Bank, and Kuscco.
In 2023, Imarisha Sacco raked Ksh36.2 million from rental income, while Gusii Mwalimu Sacco Society recorded a surge to Ksh14.79 million in rental income compared to the previous year. Additionally, Apstar Sacco’s Ukulima Cooperative House amassed Ksh56.67 million in rental income. Furthermore, Kakamega’s Invest & Grow Sacco declared a gross rental income of Ksh21.89 million, with ambitious plans for future growth.
The strategic development of plazas and commercial spaces has proven to be a pivotal tactic for optimizing rental income and fortifying the financial standing of Saccos. Notably, Saccos like Tower Sacco, Imarika Sacco, K-Unity Sacco, Mwalimu National, Bingwa, Ndege Chai, Ng’arisha, Solution, Mentor, and Trans Nation Sacco have also made significant investments in rental buildings, enriching their income streams.
Saccos have diversified into insurance products and income-generating loans, which have emerged as substantial revenue sources. Income from loans constituted the largest portion of total income in 2022, while financial investments, such as government securities and stocks, also played a pivotal role in bolstering the financial status of Saccos. Regulated Saccos have strategically channeled investments into profitable ventures like government securities, stocks, and bonds, resulting in a gradual increase in additional income upon maturity.
