16.9 C
Nairobi
Wednesday, November 6, 2024
16.9 C
Nairobi
Wednesday, November 6, 2024

SASRA CEO Encourages Teacher-Based Saccos to Harness Potential for Positive Change

 

The Sacco Societies Regulatory Authority (SASRA) CEO, Mr. Peter Njuguna, has encouraged teacher-based Saccos to harness their significant potential to enact positive change in society. He observed that despite being a formidable force in the country, teacher-based Saccos are not operating at full capacity. Mr. Njuguna emphasized the crucial role of Saccos in promoting financial inclusion and rural finance, particularly due to their presence and operations in rural areas across Kenya.

At the 3rd Kenya Teachers Saccos Association Leaders Conference in Naivasha, Mr. Njuguna pointed out that most Saccos have assets exceeding Ksh5 billion and are classified as Tier-1 institutions. He stressed the importance of collaboration, partnerships, and resource optimization to build resilience and navigate uncertainties.

Mr. Njuguna also highlighted the significance of leveraging technology and human resources to reduce business costs. He underscored the power of technology platforms in managing risks and enhancing resilience.

Mr. Marangu, from the Cooperative Banking Division of Cooperative Bank, expressed concern about teachers not directing their salaries through the Saccos, leading to reduced profitability. He urged teacher-based Saccos to differentiate themselves, embrace innovation, and take calculated risks.

Ms. Joyce Ndegwa, the chair of the Ketsa CEOs forum, emphasized Ketsa’s role in providing information, resources, and advocacy for its members. She highlighted Ketsa’s efforts to offer market trend information, economic forecasts, and industry-specific challenges to its members. Additionally, Ms. Ndegwa emphasized Ketsa’s focus on education, training, and support for its members to navigate economic challenges and adapt to changing market conditions.

The Director of Cooperative Bank’s Cooperative Banking Division, Mr. Vincent Marangu, noted that Fosa accounts of teacher-based Saccos are underperforming and emphasized the need for members to actively engage with them.

The Sacco Supervision Annual Report for 2022 revealed that the 40 teacher-based Saccos collectively held a deposit portfolio of Ksh187.09 billion, representing 30.15% of the total assets in 2022. Furthermore, the total assets of the Saccos increased to Ksh268.20 billion in 2022, accounting for 30.12% of the total assets.

 

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