Money Markets
Unaitas set to open new branches in growth plan
Tony Mwangi, chief executive officer of Unaitas Savings and Credit Co-operative (Sacco). Photo/FILE Nation Media Group
Posted Friday, October 12 2012 at 19:21
In Summary
- Unaitas plans to open branches in Mlolongo and Kawangware early 2013, and additional NCBD branch within the first or second quarter of next year.
- It will also be opening a service centre in Gikomba market which will operate under its Gatkim Plaza Nairobi branch on Temple Road by the end of this year, with a view to grow it into a full-fledged branch.
- A number of Saccos have embarked on capital raising initiatives and membership drives to attract funds so that they can grow and at the same time comply with new requirements introduced by the Sacco Societies Regulatory Authority (Sasra).
Unaitas Savings and Credit Co-operative plans to grow its branch network to 19 by the end of next year in bid to attract additional deposits that will fund its loan book.
Tony Mwangi, Unaitas chief executive officer, in an interview on the sidelines of the Summit for African Saccos and Cooperatives that closed Friday in Nairobi told Business Daily that the savings and cooperative society (Sacco) is eyeing three new outlets in Nairobi and agency banking.
“We plan to open branches in Mlolongo and Kawangware possibly early next year. The process has already begun. We are also going to open another branch within the Nairobi central business district within the first or second quarter of next year,” said Mr Mwangi.
The areas that the Sacco has chosen indicate that it is looking to tap into traders and individuals in the low-end market, many of who perform high volume of transactions which could be of lower value.
He said the Sacco, which currently has 15 branches, will also be opening a service centre in Gikomba market which will operate under its Gatkim Plaza Nairobi branch on Temple Road by the end of this year, with a view to grow it into a full-fledged branch.
According to its annual report for the period ended December last year, Unaitas had deposits worth Sh2.13 billion and outstanding loans worth Sh1.59 billion.
A number of Saccos have embarked on capital raising initiatives and membership drives to attract funds so that they can grow and at the same time comply with new requirements introduced by the Sacco Societies Regulatory Authority (Sasra).
Tai Sacco Society, after Stima Sacco and Unaitas, became the latest to announce a capital raising initiative for its members for funds that will be used to help comply with new minimum capital requirements.
Tai’s initiative to attract capital and funding for infrastructure projects and other expansion plans in a share sale began mid-last month and ends mid-December this year.
Metropolitan Teachers Sacco is also running a share sale for its members that began at the start of August running through the end of this month in which it aims to raise Sh1 billion.
Mr Mwangi said that the Sacco has embarked on an ambitious plan to grow countrywide, particularly after it rebranded in July this year from Muramati Sacco, which had started as Muranga Tea Growers.
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