Sakaja attends slum-based sacco ADM, pledges to support co-operatives

Nairobi Governor Johnson Sakaja has expressed willingness to work with cooperative societies in transforming communities in the City.

The Governor who spoke on Friday during the seventh  Annual Delegates Meeting (ADM) of the Shofco sacco held in Kibera said it is through supporting such entities that the citizens at the bottom of the pyramid can be empowered.

Sakaja lauded the Shofco sacco for launching digital platforms to enable its members to enjoy seamless banking.

He said it is through such innovation that services will be offered promptly at the hour of need.

“Any support you need, ask me. I know you have applied to join SASRA and we are fully behind you to ensure that you get the support you need to transform this Sacco into a fully-fledged bank for everyone,” the governor said.

“Through saccos, slum dwellers stand a chance to get loans and improve their lives. I applaud you for what you have done. I’m sure your members will be able to do transactions in the comfort of their homes digitally. This is the way to go.”

The Sacco, which has over 20,000 members across Kenya, will now transact its businesses via Mobile App, USSD Code and Website, enabling its customers to borrow and deposit money in real-time.

“Following the launch of our digital platforms, our members can now access our services from wherever they are,” Shofco Sacco General Manager Ibrahim Maina said.

The Nairobi County boss also congratulated Shofco Founder and CEO Dr. Kennedy Odede saying he has done a lot to uplift the lives of the slum dwellers.

“You are doing the work of God. Ken, you are a co-worker of God. When God sees you are taking care of His business, He will take care of you. You have a heart of gold and you’ve been so passionate about uplifting communities,” the Governor stated.

On his part, Shofco Sacco Chairman Dr. Kennedy Odede said the Sacco focuses on supporting people at the bottom of the economic pyramid which banks term as high risk.

“We are one of the largest and fast-growing Saccos in Kenya. We are banking those who don’t have jobs, boda boda riders, mama mbogas and all those at the bottom of the economic pyramid.

“These are people who are seen as high risk, but we see them as high opportunity and they have never let us down,” Dr. Odede said.

The Shofco boss also said the Sacco has grown from 10 members to over 20,000 members in the past five years.

“Even with this membership, we are still below the icebag. This is because we have over two million Shofco Urban Network members across the country who are eligible to become Sacco members,” he said.

The Sacco gave out loans worth Sh272 million in 2023 up from Sh148 million it disbursed in 2022, registering an increase of 83 per cent.

The lender’s assets increased from Sh231 million in 2022 to Sh389 million in 2023.

The Sacco has so far disbursed over Sh1 billion in the form of loans to its members since its inception seven years ago, enabling them to start and grow businesses, take their children to school and buy assets.

At least 86 per cent of the Sacco's members are women who are major economic drivers in the slums.

"Women are transformative leaders and Shofco Sacco is giving them top priority during loan disbursement,” Dr Odede said.