Kilifi-based sacco launches digital overhaul to compete with fintech, enhance services

Kilifi-based Imarika Sacco Society has embarked on a digital overhaul to position itself against the rising tide of fintech firms and digital lenders, this is according to its Chief Executive Officer, George Yongo.

Yongo said the institution’s strategic shift towards integrating cutting-edge technology into its operations.

He said this includes a revamped website, a user-friendly member portal, enhanced mobile banking services, and the rollout of Sacco agency services, including an interactive voice response (IVR) system to streamline client engagement.

The CEO observed that the competitive landscape has evolved, with fintech and digital lenders now posing a greater challenge than traditional banks.

“We are not just up against neighbouring banks anymore. The competition is from technological innovators who deliver financial services at the touch of a button. The future belongs to those who can keep pace with this digital shift,” he said.

Looking forward, Yongo emphasised that Imarika Sacco must continue adapting to the fast-evolving financial ecosystem, where global fintech and other disruptive platforms are reshaping the way financial services are delivered.

He, however, reassured members that Imarika is well-equipped to navigate this new terrain.

Established in 1974 with just 100 members, initially catering to teachers, Imarika Sacco has since grown into a financial powerhouse with over 170,000 members from various professions.

As of August 2024, Imarika had an asset base of Sh13.8 billion, with deposits of KSh8.9 billion and a loan portfolio of Sh11.6 billion.

Chairman of the Sacco’s board, John Ziro, highlighted the institution’s remarkable growth, expressing gratitude to its founding members and attributing the Sacco’s success to the loyalty and trust of its members. He also noted the impactful work of the Imarika Foundation, which has led efforts in education and healthcare, sponsoring over 120 students and running initiatives like anti-jigger campaigns and eye care clinics.

Several leaders attended the 50th anniversary event on Monday, including Kilifi Deputy Governor Florah Mbetsa Chibule and National Assembly Deputy Majority Leader Owen Baya, alongside representatives from the Sacco Societies Regulatory Authority (SASRA) and other cooperative institutions.

Chibule praised Imarika Sacco for being a trailblazer in the county’s cooperative movement and noted that Kilifi now boasts 256 saccos, 149 of which were established recently to serve groups such as boda boda operators and beach management units. She urged saccos to continue embracing technology and focus on involving the youth to ensure future success.

Chibule also announced that the county government had introduced a new Cooperatives Bill, currently under consideration in the County Assembly, aimed at strengthening the sector’s legislative framework.

National Assembly Deputy Majority Leader Owen Baya commended Imarika Sacco for its tremendous growth and success, stating that the Sacco would qualify as a Blue-Chip Company if it expanded nationally due to its financial achievements.

SASRA CEO Peter Njuguna underscored the importance of saccos in Kenya’s financial landscape, noting that the sector collectively holds over Sh1 trillion in capital, making it an essential driver of economic growth.