This archive report was first published on 24 August 2020.
As the number of retirees grows, Savings and Credit Co-operative Societies (Saccos) are scrambling to retain their ageing membership and tap into the pension funds of their senior members.
According to the Retirement Benefits Authority (RBA), pension-backed financial products are still considered complex, even for sophisticated financial institutions.
However, with stiff competition for new members, Saccos are becoming more aggressive in retaining their senior members.
One such Sacco is Mudete Tea Sacco, which has a large number of retired tea farmers who have earned their pension.
"We have members who have retired from formal employment, and we are yet to launch a specific product that appeals to these senior citizens," said Antony Bitinyu, CEO of Mudete Tea SACCO.
Bitinyu added that the Sacco will soon roll out a product designed to appeal to older members, especially those earning monthly pension.
Other Saccos, such as Nafaka Sacco, have chosen to be more deliberate in their approach.
Nafaka Sacco has a specific financial product tailored to meet the needs of retired members, who make up 70% of its membership.
Some members have already begun preparing for retirement from NCPB, with an estimated 29 members retiring at the end of December 2019.
Nafaka Sacco is taking advantage of an invitation by the NCPB provident fund management to attend their training sessions and educate members on how to continue benefiting as members after retirement.
"We need to retain retiring employees from NCPB to sustain membership and our capital base," said Kipkoech Mwarey, Board Chairman of Nafaka Sacco.
Despite the challenges, Saccos are slowly developing financial products for retirees, who earn pension.
However, due to stiff competition in the Sacco industry, a number of societies are reluctant to discuss features of any of their products for retirees.
"Apart from allowing senior members to process their pension benefits through FOSA, we also offer financial advice on how to manage retirements as well as a number of financial solutions that enables our senior members to enjoy their retirement," said Eunice Kaboi, CEO of Mafanikio Sacco.
