From Sh5 Fee to Assets Worth Billions: The Success Story of a Kericho-Based Sacco

Over the years, Imarisha Cooperative Savings & Credit Society Limited has grown to become one of the most successful Saccos in the country. The Kericho-based savings and credit society was started in 1978 under the name Kipsigis Teachers’ Sacco, with an initial membership of about 100.

At first the Sacco only accepted membership from the teaching fraternity and provided financial services using funds contributed under the Kenya National Union of Teachers (Knut) and the Kenya Union of Post Primary Education Teachers (Kuppet).

Kipruto Sigey, a pioneer members and former chief executive of society for 30 years, said the sacco took off in a small rented room on Tengecha lane in Kericho town, with members parting with Sh5 as registration fee. After some years, it had mobilised a capital base of Sh45 million.

“When I was employed I was staff member number five and I used to do multiple jobs because we were very few,” Mr Sigey says.

In 2004, the firm opened its doors to all professionals in a bid to bolster its financial muscle and rebranded to Imarisha. It also relocated its offices to the three-storey Kebo Plaza on the Nakuru-Kericho Highway.

Its change of tact bore fruit. As of December 2013, the Sacco was ranked the ninth largest Cooperative Savings and Credit Society in Kenya, with total assets of about Sh5.2 billion.

 Its membership rose to 35,000, with shareholders’ equity of about Sh3.2 billion. It also opened eight branches in Bomet, Bureti, Sotik,  Kapsabet, Kisumu and Kilgoris.

It offers Front Office Services Activities (Fosa), Back Office Services Activities (Bosa) and micro credit with fixed deposits earning two per cent more than commercial banks.

Recently, Imarisha launched a new product dubbed Imarisha Sacco Asset Finance, which targets Kenyans in diaspora who wish to own properties at home. The product is a self-securing loan for financing movable and agribusiness assets, with the investor only required to deposit a log book or a title deed with the Sacco.

“Imarisha Sacco develops property on investors’ behalf, offers competitive rates and flexible repayment periods, free investment education and timely advice to members. It also adds value to investments,” read a section of a write-up on their website.

“It offers you flexible installments as you acquire new assets. All you need is a title deed or a log book as security.”

Imarisha hopes to increase its membership from the current 64,120 to 100,000 in the next fiscal year. It is also seeking to grow its loan book.

Last year, the firm recorded a 13.1 per cent increase in savings to Sh5.8 billion compared to Sh5.1 billion the previous year. The total loans granted to members in 2017 rose to Sh8.4million from Sh7 billion in 2016, representing a 19 percent increase.

“Despite the challenges posed by electioneering period in 2017, goodwill from the society’s membership and good management has led to increase in membership through prudent savings and credit facilities,” said Society Chairman Matthew Ruto.