Mwalimu National Sacco is reshaping its revenue strategy to cope with shrinking member deposits and a challenging economic climate that has left many households struggling.
With rising inflation, job losses, and increased living costs eroding disposable incomes, the Sacco is now focusing on expanding non-funded revenue to sustain growth.
Chief Executive Officer Kenneth Odhiambo said the Sacco aims to reduce reliance on member deposits by boosting service-based and transactional income.
“Our non-funded revenue currently stands at 11 per cent. With these new initiatives, we intend to push this to 18 per cent in the first year, 25 per cent in the second year and eventually hit 30 per cent within three years,” he told the Star.
The new initiatives include a cheque book service and a contact centre, as Mwalimu Sacco continues its drive toward full digitization over the next three years. The move comes amid stiff competition from commercial banks and fintechs, coupled with falling cheque usage.
Data from the Central Bank of Kenya shows that cheque transactions dropped 15.1 per cent to Sh182.25 billion in June last year, a level almost matching figures from 2020, as businesses and individuals increasingly adopt digital payments.
Odiambo said the cheque product is designed for both teachers and business members, including MSMEs, who prefer cheque transactions for larger payments.
“This initiative responds directly to our members. There are those who still believe that cheque books actually are more convenient in terms of driving their business but of course there are other generations that believe that the digital platforms are better in terms of transacting with the circle. So it is a mixed bag and that is what we are pursuing,” he added.
Chairman Joel Gachari highlighted the changing member profile as a key driver of the new strategy.
“Over 30 per cent of our members are now drawn from outside the teaching fraternity. Their incomes have grown, and they are seeking bigger and more convenient solutions. The checkbook gives them an additional option alongside our digital and cash withdrawal channels,” he said.
In addition, Mwalimu Sacco is enhancing its mobile lending platform, which currently allows members to borrow up to Sh500,000, with plans to raise the ceiling to Sh3 million by year-end.
Family Bank chief commercial officer John Ndugi said partnerships like this enable Saccos to adopt innovative banking solutions while retaining their unique identity.
“This check solution enables Mwalimu members to issue and clear checks within banking timelines while maintaining the Sacco’s brand presence,” he said.
