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Malindi-based Lengo Sacco is rolling out a mobile banking system

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Lengo Sacco

Lengo SACCO is tapping into the power of mobile banking as it strives to improve the delivery of a range of financial services to its members.

The move is expected to significantly step up the society’s efficiency in meeting the members’ needs while also enhancing growth, the Chairman, Mr. James Karisa, said during the 2021 Annual Delegates Meeting (ADM).

“The checking of the capability of the system in handling of the mobile banking platform was done and the team is already working on the modality of installing the system,” Mr. Karisa said during the ADM held at Premier Hotel, in Malindi.

“Once all is done and the system has been fully approved by the regulator, we shall roll it out to the general membership,” he added.

The chairman also expressed his satisfaction with SACCO’s 2021 performance, stating that the society had already laid out a working strategy on how best it can achieve greater results this year. In the fiscal year ended December 2021, Lengo SACCO recorded a 52.6 percent jump in total income to KSh91.84 million even as deposits from members increased to KSh267.9 million from KSh209.9 million reported in 2020.

Further, a total of KSh295.9 million was disbursed to the savers as loans compared to KSh202.94 million worth of credit taken in 2020.

At the same time, SACCO’s membership increased further to close the year at 25,011 from a register of 21,788 members previously.

Overall, Lengo’s asset hit KSh388.33 million up from KSh294.98 million recorded at a similar trading period in 2020.

To accelerate growth, the supervisory committee Chairman, Mr. Samuel Kazungu, encouraged the delegates to champion the recruitment of new members while also marketing various products to the current group of savers

Lengo SACCO was formed in 1976 by employees of the then Municipal Council of Malindi. In 2010, the SACCO opened its common bond allowing businessmen, civil servants as well as other individuals to join the savings and loans scheme.

Mr. Kazungu also urged SACCO to invest more in the education and training in order to equip members and delegates with sufficient product and service marketing information to enhance growth of cooperative.

“As your first-ever assignment this year, the supervisory committee would like to encourage all the delegates to ensure that you fully go through our by-laws to fully understand them to help transform the SACCO,” he said.

Madam Felister Moraa, the SubCounty Cooperative Officer Malindi/ Magarini area, commended the society for impressive results while calling on the members to patronize the products and services.

She noted that the best way to ensure continuous improvement was through surveying how members were responding to products and services, adjusting accordingly, and giving members value-add products that meet their needs.

Madam Moraa also revealed that the Cooperative Society Act was being reviewed after the industry players presented their views and it would soon be tabled in the National Assembly.

She added that the Society Act should be aligned with Kenya’s Constitution in order to guide the industry players and the entire cooperative movement across the country.

Further, she advised the society to take advantage of the Deposit Guarantee Fund once it’s fully rolled out. The chief guest, Mr. Renson Ndoro, the chairman Imarika SACCO and also a Director KUSCO representing Coast and North Eastern region, said one of the best ways for SACCOs to see growth is by encouraging the use of shared services, an initiative that is supported by the industry regulator, SASRA.

The Central Liquidity Facility and a Shared Services Platform is tailored to significantly change how the savings and credit entities are run, including by providing access to the National Payment System.

The shared services, Mr. Ndoro said, would ensure that SACCOs focus mainly on making members’ lives better by generating better products and services.

Mr. Ndoro also urged society to ensure that borrowed loans performed the intended purpose so as to change peoples’ lives.

As a recommendation, Mr. Ndoro urged the societies to explore lowering their interest rates on loans and stop competing on who gives the highest dividends rate as it is bad for business since many SACCOs often borrow from commercial banks just to please their members by offering high dividend rate.