SACCOs in rush to put up Own Offices

By Jackson OKOTH

Savings and Credit Co-operative Societies(SACCOs), especially those established in the 1970s, are putting up or buying their own office space and moving out of rented premises.

 

The idea is to support a growing membership, enhance brand visibility, boost non-interest income streams, and cut cost of leasing office premises.

 

It is also a way of sending strong market signals that the business has matured, viable and has a sound future.

 

Univision Deposit-Taking SACCO, which recently rebranded from Kitui Teachers DT SACCO, is one of those Societies that are constructing their own headquarters. Other SACCOs have chosen to instead acquire office spaces, perhaps to avoid numerous challenges that exist in the construction business.

 

Tembo DT SACCO purchased Trio Complex, which formerly served as the HQ of East African Breweries Limited(EABL) and Tembo Complex in Garden Estate, Nairobi where it has set up its Headquarters.

 

“The main advantage as a business that has its own premises is the enormous savings that it can make for not paying rent.

 

There is also the comfort that no one can shift your business without any notice. The SACCO also satisfies the need of members who would want to know where their physical offices are located, “said Sichangi Wanyonyi, CEO TNT SACCO.

 

TNT SACCO has been operating from its own premises for close to 20 years. The Society bought a piece of land, measuring 1 acre that is strategically located within Kitale town, next to the main police station headquarters.

 

“We constructed the SACCOs Head offices at a cost of KSh 100m and is currently renting out some of the office places to other businesses,” said Sichangi.

 

Nyati Deposit-Taking SACCO, with over 33,000 members, recently moved in to the ultra-modern Nyati Sacco plaza worth KSh 476m, on February 20, 2025.

 

“Many SACCOs are coming of age out of the past where they were housed by companies or unions that were formed them such as many teacher-based SACCOs that were initially housed by Kenya National Union of Teachers(KNUT).

These and other employer-based Societies soon grew in size and financial muscle, enabling them to move to rented premises. After becoming independent outfits, it is now time for such SACCOs to construct their own offices,” said Daniel Kinyua Marete, former Solution DT SACCO Chief Executive Officer.

“The idea behind constructing their own offices is a desire by the now mature SACCOs to have their own corporate identity and boost the image of the brand. The shift by the SACCO to their own offices is necessitated by the need to recruit new members that are not from the companies that initially formed them,” said Mr. Marete.

Golden Pillar, previously Imenti SACCO was original the idea of members of the Meru Farmers Central Union.  Golden Pillar has since matured, left the Union premises, sought for a plot and constructed their own head offices.

Meru Teachers SACCO was established by KNUT, Meru Branch but has become of age, leading to its rebranding and setting up its own head offices.

Countrywide, SACCOs that were established 40 or 50 years, have since rebranded and moved to their own offices.

 “The advantage of a SACCO moving into its own premises is that it is able to make immense savings on costs, such as rent and leases which are unpredictable and keep on escalating each year. A SACCO that is premised in its own building is therefore able to cushion itself from such costs.

 

It is also more convenient to have your own building. One is able to have minimal disruptions, can install own infrastructure including ICT systems and enjoy more stability and certainty,” said Richard Nyaanga, Chief Executive Officer, Ukulima DT Sacco.

Sotico DT SACCO, that draws its membership from tea farmers in Sotik, Kericho County, is in the process of constructing its own premises.

 “We are still domiciled in the premises that is owned by Sotik Tea Companies Limited, who is the employer of the firms and individuals that we are dealing with. We have already acquired several plots of land and got authorization from SASRA to develop these properties.

 

We are still following up on permits from other relevant authorities such as National Environmental Management Authority(NEMA) so that we can begin the work of laying down the foundations,” said Ms Evelyn Moraa, Sotico DT SACCO Chief Executive Officer.

Sotico DT Sacco, established in the late 1990s, intends to mobilize contributions from members to finance construction of the proposed new office block.

me of the benefits of having own buildings include savings on rent, non-funded income to a Society has rents out, dividends to members on their housing shares, and diversification of the Society’s income streams.

 

Physical branches are also key to drive by SACCOs, especially those in rural areas, to tap the unbanked and not so techno savvy individuals in the lower income brackets.