Lainisha Sacco Society Limited is fast growing into a Society of choice for customers of diverse backgrounds owing to prudent management, efficient services and availability of innovative products.
The Wang’uru town-based Sacco has grown from a small Society that catered only for Kirinyaga County rice farmers into a major Sacco registered by Saccos Regulatory Authority (Sassra).
As at December 31, 2018, Lainisha Sacco had 5,500 members cutting across all areas of economic activities, an asset base of Sh370 million and share capital of Sh58 million.
The Sacco has a sound management steered by a committed nine-members board. The Chairman is Symon Ndung’u Kamau. In addition, it has a three-member supervisory management committee. The CEO is George Ndiga.
The Sacco was registered as Mwea Rice Farmers Sacco on January 21, 1993 and rebranded to Lainisha Sacco in November 2014. Once rebranded, it opened its common bond and recruits members from other sectors of the economy like women groups, youth groups, boda boda riders, horticultural farmers, traders and salaried people.
Initially it was the banking section of Mwea Amalgamated Rice Growers Cooperative Society until the early 1990s when the amalgamation separated into two; Mwea Rice Growers Multipurpose with production and marketing as its core business and Mwea Rice Farmers Sacco (now Lainisha Sacco) with Savings and Credit as its core business.
Ndung’u, the chairman, says the Sacco is growing in all areas. For the year ended December 31, 2018, the share capital rose to Sh58 million from Sh51 million in year 2017 representing a 15.1 percent growth.
In the same period, members deposit increased to a staggering Sh160 million from Sh141 million in the year 2017 representing 12.5 percent growth.
Total assets as at December 31, 2018 stood at Sh370 million up from Sh340 million the previous year.
According to Ndung’u, member’s share capital and deposits grew as a result of additional share subscription by members and recruitment of more members who subscribed and paid up for the share capital.
“Loans grew as more members demanded for more loans to meet their financial obligations,” he says.
The society has also registered a housing cooperative society that has continued to recruit members.
Members register through payment of Sh1,000 as registration fee and Sh20,000 in share capital that is used to invest in real estate.
On Information Communication Technology (ICT), the Sacco has continued to invest in modern ICT infrastructure-software and hardware to achieve operational efficiency, and enhance earnings of the society.
“Members can now access Sacco services through additional delivery channels like internet banking, SMS and mobile banking agency and POS banking.
“We are also in the process of implementation of Sacco link services to ensure that members can access their Sacco accounts wherever they are from any ATM machines,” says the chairman.
The ATM cards will be VISA-branded so that members can access their money from any ATM wherever they are.
He adds that the Society has come up with more innovative products and services to ensure that various clients with diverse financial needs can be accommodated, such products include Bakisha savings and loans, Inuka loan, Nyongeza fixed accounts, among others.
To further enhance the Sacco’s presence in the market, the Lainisha Sacco has engaged the services of field officers to market its products and services and to recruit more members.
Ndung’u appreciates the support and cooperation accorded the Sacco by members, customers and all stakeholders.
“I recognize on behalf of the board the support, guidance, advice and insights of the county and national governments in the process of our operations. On its part, the Sacco endeavours to provide viable financial services to members within its area of operation for sustainable economic and social growth,” he says.
On Friday, the Sacco had a successful roadshow in the following markets: Wang’uru, Kimbimbi, Kutus, Kagio, Kandongu, Ciagini, Gategi, Karaba, Ndiriruku, Marurumo, Gatwiri, PI, Mutithi.
The CEO, Ndiga, says the roadshow which aimed at establishing a footprint in the market enabled the Sacco interact with members and potential customers in the larger Mwea region.
“We always strive to take our services closer to the members through our innovative products and also through roadshows and field visits,” says Ndiga.
The Society has the main branch in Wang’uru town of Kirinyaga County and two outlets: one in Ciagini market and the other in Kandongu.
Ndiga revealed that the society will later in the year open a full-fledged branch in Ciagini market to take more services closer to the customers.
According to the CEO, through the Society’s Corporate Social Responsibility strategies they are able to make a positive impact on the environment and stakeholders including consumers, employees, investors, communities and others.
“We believe in giving back to the society. We have built a boda boda shade at Ngurubani town, we visit children’s homes and the sick at hospitals. The aim is to increase long-term relationship and profits through positive public integration, high ethical standards to reduce business and legal risk, and shareholder trust by taking responsibility for corporate actions.
Some of the challenges that the Sacco faces are loan defaults by rice farmers whenever crops failure due to insufficient rains. Ndiga called on the government to assist rice farmers have adequate irrigation water at all times. The government is already building Thiba Dam which will provide irrigation water to rice farmers.
According to the chairman, the government has of been support to Saccos. He says a resident cooperative officer is attached to Lainisha Sacco while defaults are kept at low due to the presence of Cooperatives Tribunal Court.
The Sacco has a Vision “To be the leading Sacco in provision of affordable and efficient financial services to our members”.
Its Mission Statement is “to mobilize funds and offer highly competitive financial services to our members and customers in order to promote their welfare through prudent management”.
The Core Values include: Excellent customer care, Creativity and Innovation, Integrity and Transparency, Corporate social responsibility, teamwork, openness, equality and equity.
Members can access services through: M-Lainisha mobile banking which is accessed by dialing *346#. Secondly is internet banking, a service that enables individual customers, business owners, corporate companies and institutions to carry out various transactions and monitor their bank accounts through internet. Thirdly is agency banking available from agents
The Society loan products include: Development loans. Business, school fees, medical, group, chama, emergency and farming loans.
The savings product includes: ordinary savings account, fixed deposit, business, Junior. Group and Institutional account.
The society also offers car hire services and safe custody of valuable items.
Lainisha Sacco is a story of resilience, a case study of turning around a Sacco once run down by rogue board and staff to a highly profitable and good business. I visited them in 2016 with a group of farmers, NGO and Govt officials from Malawi where we learnt a lot and got invaluable insights. Good job to the current board Chair.
Hello James. Thank you for the compliments to Lainisha Sacco. I will let them know.