This archive report was first published on 6 July 2021.
How Saccos Adapted to Service Delivery Challenges During the Pandemic ¶
Published on July 6, 2021
By Malachi Motano
The COVID-19 pandemic presented unprecedented challenges to Sacco operations in Kenya. To understand how Saccos adapted to these challenges, Kwara's Cynthia Wandia hosted a discussion with Tamara Youth Sacco's Joseph Njenga and Oxford Sacco's Sammy Githiaka.
According to Joseph, Tamara Youth Sacco focused on moving to a digital platform to facilitate loan applications and member interactions. The Sacco also modified its products and services to make them more accessible to members.
Sammy Githiaka of Oxford Sacco noted that the Sacco had to be flexible in its operations, including changing credit terms and products to encourage members to access loans. The Sacco also opened a WhatsApp group for constant communication with members.
Both Saccos digitized their processes and diversified their operations to focus on more than just traditional methods. They also avoided charging usual interests to members who were affected by the pandemic.
When asked about their immediate concerns during the pandemic, Joseph mentioned the risk of defaulting on loans due to job losses and pay cuts. Sammy Githiaka noted that the Sacco's employer-based membership model helped to minimize member losses.
Regarding membership growth, Joseph noted that the Sacco did not experience significant growth during the pandemic, but they did try to reach out to other Chamas. Sammy Githiaka mentioned that the Sacco managed to attract new members who had left employment or the society during the pandemic.
On the role of technology in cushioning the sector against pandemic effects, Sammy Githiaka noted that the Sacco's digital platform helped to reach members and provide them with access to services and information. Joseph Njenga also mentioned that digitization enabled the Sacco to become more agile and responsive to member needs.
When asked about the biggest take-home lessons from the pandemic, Joseph noted that the Sacco learned the importance of better cash flow management, providing members with a similar experience, and marketing themselves better. Sammy Githiaka emphasized the need for innovation and improvement of products to avoid traditional methods.
