PSV saccos urged to strengthen savings culture

Public service vehicle (PSV) Saccos have been challenged to strengthen their savings culture, embrace financial literacy and adopt sound business practices.

The call was made by Equity Bank Kenya Director and Head of Retail Banking Carol Rutto during the flag-off of seven public service vehicles acquired by NAKKONS Sacco in Othaya, Nyeri.

The acquisition, financed by Equity Bank Kenya, is part of the Sacco's fleet expansion programme aimed at modernising its operations.

Rutto said while access to finance remains important, the long-term growth of transport Saccos will depend on disciplined savings, prudent financial management and investments that create sustainable value for members.

"We are here to celebrate what becomes possible when people come together with a shared purpose. NAKKONS Sacco has demonstrated what collective effort can achieve. Through discipline and a strong savings culture, members have transformed their daily income into productive assets that will strengthen businesses and improve transport services," she said.

She said the public transport sector remains a key driver of Kenya's economy, connecting people, businesses and markets, adding that equipping PSV operators with the right financial tools would have a wider impact on communities.

"When PSV owners are well organised, financially skilled, properly insured and able to access affordable credit and cashless payment solutions, everyone benefits through safer roads, reliable transport services, stable jobs and stronger local trade," she said.

Rutto said the partnership with transport Saccos extends beyond asset financing to include working capital, savings products, insurance, digital payment solutions, investment opportunities and entrepreneurship training.

"As members continue growing their transport businesses, they should also build a strong savings and group guarantee culture. Saving consistently and supporting one another enables members to access more financial opportunities while strengthening the resilience of the Sacco," she said.

NAKKONS Sacco Secretary Timothy Wachiuri said members had previously relied on imported second-hand vehicles that frequently broke down, consumed more fuel and required costly repairs.

"These vehicles belong to our members. The difference is that they are brand new and zero mileage. The used vehicles we previously purchased were expensive to maintain and consumed a lot of fuel. These new vehicles will reduce maintenance costs, improve reliability and enhance members' earnings. We appreciate Equity Bank for supporting us to acquire them," he said.

Equity Bank General Manager for the Central Region Stephen Mwaniki said the bank had structured the financing to match the cash flow of PSV operators, allowing them to repay comfortably while expanding their businesses.

"We want them to grow. The repayment period has been designed in a way that enables members to service their loans comfortably, particularly as we approach the festive season when business is expected to improve. Supporting small and medium enterprises remains at the core of our business because they are key drivers of economic growth," he said.

Mwaniki added that besides financing the vehicles, the bank had equipped members with financial management skills to enable them to run profitable and sustainable enterprises.

The investment comes as the transport sector continues to grapple with rising costs and increased competition.