Innovation
Imarika Sacco Society, a Kilifi-based leading financial institution, has embraced new innovations and technologies in the wake of cut-throat competition from fintechs and digital lending platforms, an official has said.
George Yongo, the institution’s Chief Executive Officer, said that for the institution to survive the challenges brought about by new innovations, it had invested heavily in digital systems including a new website, a member portal, advancements in mobile banking services, Sacco agency services and an interactive voice recorder (IVR) among others.
Yongo, who was speaking at the Karisa Maitha grounds in Kilifi town during celebrations to mark 50 years of Imarika Sacco’s existence, said conventional banks were no longer a threat to saccos, but fintechs and digital lenders that provide clients with financial solutions at the comfort of their cell phones.
“Our competition is no longer just the banks next door or other financial institutions in the city; we are competing with the very forces of innovation. Tomorrow’s world will not follow the same rules. It will be digital, fast, and connected. Geography will matter less, and opportunity will matter more,” he said.
He predicted that as the institutions looks into the next 50 years, the road ahead would not be easy and that the competition would be fierce, not just from traditional institutions, but from those who are bold enough to redefine the future – global fintechs and digital platforms among others. He however added that Imarika was ready for the challenge.
From left: National Assembly Majority Leader Owen Baya, Kilifi Deputy Governor Florah Chibule and Imarika Sacco Chairman John Ziro join a dancing troupe during the 50th Anniversary celebrations for Imarika Sacco Society.
Yongo said Imarika Sacco, which began as a small teachers Sacco society with about 100 members had grown into a big institution with a membership of more than 170,000, having widened its scope to accommodate non-teachers. He said that as of August this year, the society had an asset base of about Sh13.8 billion with members’ deposits standing at Sh8.9 billion and its loans and advances portfolio amounting to Sh11.6 billion.
His sentiments were echoed by the Chairman of the Sacco’s board of directors, Mr John Ziro. who thanked members for the success the institution had enjoyed over the years, and especially the eleven members who broached the idea of forming the sacco in 1974.
He said in addition to providing financial services to its members, the Sacco had formed the Imarika Foundation to take care of its corporate social responsibility (CSR), which he said had enabled it to undertake a number of health and education interventions that had gone a long way towards giving hope to our people.
The foundation, he said, had managed to carry out anti-jigger campaigns and eye clinics, and that it had sponsored over 120 students through their secondary education. Leaders and various stakeholders who graced the ocassion praised the pioneer Sacco society for promoting a saving culture among residents.
They included Kilifi Deputy Governor Florah Mbetsa Chibule and National Assembly Deputy Majority Leader Owen Baya as well as senior officials from the Sacco Societies Regulatory Authority (SASRA), the Kenya Union of Savings and Credit Cooperatives (KUSCCO), the Cooperative Bank of Kenya and the Cooperative Association of Kenya (CAK) among others.
Leaders, led by Kilifi Deputy Governor Florah Chibule and Deputy National Assembly Majority Leader, unveil Imarika Sacco’s manifesto for the next 50 years during celebrations to mark the institution’s Golden Jubilee.
Ms Chibule noted that as Imarika celebrated its Golden Jubilee, the Sacco movement in her county was celebrating 50 years of existence since Imarika was the first Sacco to be registered in the devolved unit. She said the county had a total of 256 saccos, 149 of which were formed in the last two years to serve bodaboda operators and members of beach management units (MBUs).
The deputy governor said the county administration had formulated the Cooperatives Bill which she said had already been submitted to the County Assembly of Kilifi for consideration and possible approval. She urged the Sacco movement to incorporate modern technology and invest in the youth as it focuses on the future.
Baya on his part lauded the success of Imarika Sacco, saying if it had a national network, it would qualify to be a Blue-Chip Company due to its great success. SASRA Chief Executive Officer Peter Njuguna said that saccos being regulated by his organisation in the country had a total capital base of more than Sh1 trillion, making it an important sector in the growth of the country.