Imarisha Cooperative Savings & Credit Society (Sacco) Limited started with only 100 members in 1978 when it was first registered as Kipsigis Teachers’ Sacco.
As of December 2013, Imarisha was the ninth-largest Cooperative Savings and Credit Society in Kenya, with total assets of approximately Sh5.2 billion.
Its membership were in excess of 35,000, with shareholders’ equity of about Sh3.2 billion.
The banking hall at Imarisha Cooperative Savings & Credit Society (Sacco) Limited was abuzz with activity when Entreprise visited it as March came to a close.
Queues were longer than usual in what the marketing manager Janet Towett said had been occasioned by payment of salaries in addition to the usual activities including awarding loans.
Not long ago the queues at the end of every month were longer than this as most of the services were still being done manually. The sacco has now tapped technology as it seeks to provide its members better services.
“We have digitised our services. Members can now access their accounts on phone at the comfort of their living room through M-Imarisha. However some still prefer over-the-counter services for some reason,” says Ms Towett.
It has been a long journey for Imarisha sacco that started with only 100 teachers in 1978 when it was first registered as Kipsigis Teachers’ Sacco.
At its inception, it was only accepting membership from teachers. It offered financial services using funds mobilised under the Kenya National Union of Teachers (Knut) and the Kenya Union of Post Primary Education Teachers (Kuppet).
One of the pioneer members and former chief executive Kipruto Sigey, who steered the society for 30 years beginning 1987, said the sacco started off in a small rented room on Tengecha lane in Kericho town, with members registering with Sh5 only. It was able to immediately mobilise a capital base of 45 million.
“When I was employed I was staff member number five and I used to do multiple jobs because we were very few,” Mr Sigey says.
In 2004, the firm changed tacked, opening its doors to all professionals as it sought to bolster its financial muscle. It also changed its name to Imarisha to broaden its appeal.
In 2014, the sacco moved from rented premises after constructing the three-storey Kebo Plaza on the Nakuru-Kericho Highway.
All these efforts have certainly paid substantial dividends. As of December 2013, Imarisha was the ninth-largest Cooperative Savings and Credit Society in Kenya, with total assets of approximately Sh5.2 billion. Its membership were in excess of 35,000, with shareholders’ equity of about Sh3.2 billion.
Other than the Kericho head office, Imarisha now has eight branches in the towns of Bomet, Bureti, Sotik, Kapsabet, Kisumu and Kilgoris.
The Society offers Front Office Services Activities (Fosa), Back Office Services Activities (Bosa) and micro credit with fixed deposits earning two per cent higher than commercial banks.
The sacco recently unveiled a new product dubbed Imarisha Sacco Asset Finance targeting Kenyans in diaspora who wish to own properties at home.
The product is a self-securing loan for financing movable and agribusiness assets. The investor only needs to deposit log book or a title deed with the organisation.
“Imarisha Sacco develops property on investors’ behalf, offers competitive rates and flexible repayment periods, free investment education and timely advice to members. It also adds value to investments,” read a section of a write-up on their website.
“It offers you flexible installments as you acquire new assets. All you need is a title deed or a log book as security.”
The new product also offers security of investment upon identification of property and guarantees members to get financing without the need of any additional guarantor. This favours clients in diaspora who might not have the convenience to seek guarantor services.
The sacco is also exploring a number of strategies to improve its services and give members value for their savings.
“The management is exploring other transformational strategies such as investing in technology in order to deliverf quality services (and) to make the society more vibrant and responsive to the needs of the customers,” says the chairman.
The sacco has also been on a charm offensive to woo customers. It has been conducting workshops and even visiting churches in South Rift.
Since January, they have conducted several workshops at Ndanai and Sotik in Bomet County as well as at Bureti and Roret in Kericho County.
Imarisha projects an increase of membership from the current 64,120 to 100,000 in the next financial year. It is also seeking to grow its loan book.
While several businesses recorded massive losses in 2017 following the political temperatures heightened by the General Election, Imarisha is one of the few companies which posted profits.
It recorded a 13.1 per cent increase in savings to Sh5.8 billion as at December 31, 2017 compared to the Sh5.1 billion earned during the same period in 2016.
In shares capital, the society realised an average of Sh17,000 for every member as at the close of 2017 compared to Sh16,000 in 2016, representing a 17.9 per cent growth.
The total loans disbursed in the last financial year also shot up by 19.9 per cent from Sh7 billion in 2016 to Sh8.4 billion last year.
Society Chairman Matthew Ruto attributes the growth to dedicated staff and prudent management and transformative programmes that have led to increase in the number of customer.
“Despite the challenges posed by electioneering period in 2017, goodwill from the society’s membership and good management has led to increase in membership through prudent savings and credit facilities,” says Mr Ruto.
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