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Ports Sacco, formerly known as Mombasa Port Sacco, announced today its relaunch as part of its strategic growth plan to empower its members, drive financial inclusion and expand its national footprint.
The Mombasa-based Sacco, was initially dedicated to employees of the then Kenya Cargo Handling Services Limited.
However, in the new move it has now opened its doors to diverse membership as it seeks to grow its membership from 11,741 in 2022 to 16,800 in 2023, mainly in non-Port towns.
Ports Sacco Chief Executive Officer Dedan Ondieki said the relaunch was part of Sacco’s commitment to driving financial inclusion across the 47 counties.
“Our expansion beyond Mombasa is part of our strategy to be diverse and inclusive as we renew our focus to empower current and new members to take control of their financial future. In addition, our vision is to reach those unable to access financial services from conventional institutions,” said Ondieki.
Despite the challenges facing Saccos in Kenya, Ports Sacco has achieved remarkable growth, with total assets topping Sh8.4 billion last year against member deposits of SH 4.58 billion.
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In addition, Sacco declared dividends on share capital at a rate of 20 percent amounting to SH 75,931,536 million and interest on deposits at a rate of 12.5 percent or SH 496,001,372 billion, making a gross total of SH 571, 932,908 billion.
Founded in 1966, Ports Sacco seeks to empower members by offering financial solutions, promoting thrift, and fostering a culture of saving. In 2021, Sacco launched its SH 45 million digital platform to safeguard its members’ funds considering cyber security developments.
During the event, the Sacco unveiled its mortgage product, ‘Jiendeleze Loan,’ tailored to the unique needs of the market and members for low-cost homes.
“Our investment in research and product development is a testament to our dedication to providing affordable housing solutions to our members. In addition, our commitment to agility also reflects its innovative culture, which is essential for driving growth and staying competitive in a crowded market,” said Ondieki.
According to the latest data, Kenya is ranked number 7 worldwide and the best in Africa regarding Sacco development. The cooperative sub-sector in Kenya controls over SH 1.5 trillion in assets and SH 1 trillion in deposits, with a loan book of SH 980 million.
Thirty percent of the national savings in Kenya come from Saccos. However, despite the successes, the Sacco sub-sector faces challenges such as a lack of access to affordable credit, limited financial education, and regulatory clarity.