Eco-Pillar Sacco encourages saving culture among pastoral communities inKenya

By Sacco Trend Reporter

Incepted on 2nd, June 1977, formerly known as Kapenguria Teachers Sacco, Eco-Pillar Sacco isestablishing its roots in the larger North Rift Region, to cultivate the culture of saving andfinancial literacy to the pastoralist communities in Northern Kenya.According to the CEO of the Sacco Mr Linus Lokira, Eco-Pillar’s main aim is to provide a strongfinancial service in the region and beyond to foster members’ social development throughenhanced financial services.”As a Sacco, we want to be a leading, dynamic financial service provider not only in the regionbut also in the country and beyond. With a focused mission of providing efficient and diversifiedfinancial service provider, to improve our members social and economic prosperity throughfinancial literacy,” Mr Lokira stated.Sacco MembershipThe Sacco has opened its membership to other sectors including farmers, entrepreneurs andother business persons. With a membership of over 9,000, the Sacco gears towards increasingits membership through recruitment and retaining the current members through offeringservices that meet the members’ expectations, and further improve the products and servicesoffered.In incorporating divergent membership, Lokira says the Sacco has a structured packageincluding loans, technological innovations that offer microfinancing savings and credit formembers in businesses, which has greatly attracted membership for the Sacco. “In reaching out to divergent membership, Eco-Pillar Sacco has further structuredentrepreneurship innovations and support systems for members in business through microfinance savings and credit. We also offer loans like ufugaji, Mwamba, Kilimo and Biashara
loans,” the CEO explained.
Further in boosting its membership in other regions the Sacco has an operating branch in
Lowdar Town in Turkana County. It has a plan to expand its operations in the County’s major
towns including Kacheliba, Chepareria, Sigor and Kabichbich, with a further extension to Trans
Nzoia and Elgeyo Markwet counties.
Lokira attributes the growth in membership to the commitment from both members and staff
of the Sacco, professionalism and flexibility of services and products of the Sacco.
” The Sacco draws its strength from a highly qualified staff, sensitivity to customers’ needs,
adaptability and flexibility of the products, as well as a committed membership.”Mr. Lokira said.
Leadership and governance
Earlier in the year, Cooperatives and MSME Development Cabinet Secretary Simon Chelugui
urged Saccos to ensure great governance and leadership that are according to the Cooperatives
and Societies Act, to avoid members losing their savings and assets as well the collapse of
Saccos. He further warned rogue Sacco leaders in the country that would face the law in case of
any inconveniences.
Following the Sacco’s and Cooperatives Acts and further establishing its roots in the pastoral
region of North Rift, the West Pokot-based Sacco focus and transformational agenda is
attributed to having visionary leaders. Gender equity sensitivity and diversification have been
great pillars of society’s focus.
“Eco-Pillar Sacco growth and transformational agenda focuses on Sacco’s core mandate of
savings and credit. Prudent management of new products and services diversification, highly
improved technology and compliance with all statutory requirements are factors behind our
success. Our operations are also based on professionalism, integrity, innovations and gender
equity and sensitivity to ensure our members get top-notch services,” Lokira said.
Through great and focused leadership, Lokira says the Sacco was able to significantly progress
despite the technological, economic and environmental challenges in the past few years, that
brought about changes in operations of activities globally.
Products and services
With friendly interest rates on loans, Eco-Pillar Sacco’s products include;
- FOSA (Front Office Saving Activity) -consisting of salary advance 1 and 2, instant, premium
and smartphone loans - BOSA(Back Office Saving Activity)- consisting of school fees, emergency, normal, special and
Karibu loans.
“Special development loans are granted 3 times members deposits, deduction strictly check-off,
no maximum loan limit, repayable in 48 months and subject to the 1/3rd rule.” Mr. Lorika
explained.
The Sacco has embraced technology by use of short special codes(USSD) *879# to deposit,
withdraw money, pay using Pay Bill Number 170533 and other transactions. This according to
the Sacco’s CEO, has increased service delivery as members can access services and do
transactions in the comfort of their homes, further boosting the society’s branch network
services.
The incorporation of technology by societies is among key innovations that are being
spearheaded by the Ministry of Cooperatives to increase efficiency and avoid loss for members.
The launch of the second phase of Hustler Funds for groups and chamas by President William
Ruto in June, with both the president and CS Chelugui likening the Sacco-subsector to the
Bottom-up Economic model geared to uplift those in the lower level of the pyramid, Eco-Pillar
Sacco has also put in place strategies to ensure the Sacco also benefits in giving loans to SMEs
as directed by the president.
“We already have existing structures that can be instrumental in implementing the presidents’
transformational agenda. Initially, we partnered with the women’s enterprise fund in the
provision of low-interest rate loans to businesswomen and groups and the county and it was a
success since it uplifted businesses and generally the economy of the county,” he said.
Based on this year’s Ushirika Day celebrations themed Co-operatives for Sustainable
Development, the Sacco provides its members with comprehensive financial education
programs that empower members with financial literacy to make sound decisions on matters
such as budgeting, saving and investing, as well as stand economic challenges.
“Eco-pillar Sacco is focused on strengthening governance and transparency. This is essential as it
ensures accountability, mitigates risks and creates an environment of confidence and stability.
This in turn attracts more members and potential investors enhancing the financial growth and
reputation of the SACCO,” he further explained.
Challenges
Despite the significant progress, several challenges as highlighted by Mr Lokira slowed down
the operations of the Sacco including;
Reduced disposable due to high taxation
High Loan default rates due to economic hardship by individuals and businesses
Sluggish economic deters potential investment opportunities limiting the avenues
through which Sacco can grow their funds.
Diminished investment returns can have adverse effects on the financial growth of the
Sacco’s growth, forcing members to seek to share refunds which adversely affects the
operations of the Sacco.
However, the Sacco has remained a giant in the region since it meets the client’s expectations
and good governance.
According to Eco-Pillar Sacco marketing manager Madam Naomi Loribo, the society endeavours
to offer sustainable financial solutions that guarantee member needs and expectations.
“The Sacco offers exemplary customer service, member value creation and sustainable
frameworks leveraged by the board and the management. What has led us here is looking at
members’ welfare, engaging members, meeting members’ expectations and needs within the
shortest time possible,” Loribo explained.
The future
The Sacco has a great future in the region, stamping its domination in the region. The CEO says
Eco-Pillar is the Sacco to watch as it aims to spread its wings across the country and establish a
strong base in the region to access new markets and recruit new members.
“Eco-pillar aims to be the best SACCO in the republic shortly both in terms of return on
investment to members and member value creation. We are networking with like-minded
SACCOs to access new markets, investment avenues and knowledge-sharing platforms,” the
CEO noted.