Boresha sacco still going strong 44 years later

The arid Baringo County is not synonymous with financial establishment like banks and microfinance entities that dot Nakuru, Nairobi and many counties in Kenya.

In a county dodged by cattle rustling, famine, floods and diseases among other calamities, not a single indigenous bank has sprouted from the region. Most of the over 666,000 residents are starved of financial services like the rest of the 46 counties.

However, this is slowly coming to an end as one of the leading savings and credit co-operative societies in the region, Boresha Sacco, is changing the financial landscape in the county.

TRANSFORMING LIVES

Just like its name Boresha, which loosely translated means improving, the sacco has been transforming the lives of the Baringo residents and beyond by offering loans and other financial services.

To thousands of members not privy to its history, the sacco might be just like any other upcoming society.

The pioneer sacco in Baringo County, which represents financial freedom and empowerment, plans to hold its 29th Annual Delegates meeting.

The 44 -years-old sacco, which has withstood the test of turbulent financial times that has seen many saccos split and collapse, is still going strong.  

The sacco has grown to become one of the biggest indigenous financial institutions in Baringo County and its environs.

The sacco whose headquarters is at the Eldama Ravine town in Koibatek Sub-County, is situated at the multimillion-shilling Teachers Plaza built from members’ savings.

EXPANDED

It has since expanded its wings to counties of Uasin Gishu, Nakuru, Nandi, Laikipia and Elgeyo-Marakwet.

It is among the top saccos in Kenya as per Saccos Societies Regulatory Authority (SASRA) classification. The society's asset base stands at Sh7.4 billion.

But how was the multi-billion sacco born?

The sacco was registered on August 31, 1976 by a group of 10 teachers led by the late Nicholas Kangongo to save and improve their lives.

“The 10 teachers laid a sound financial stone that has transformed the lives of millions of Kenyans,” said Boresha Head of Marketing Philemon Chebii.

“The founders started the sacco from a humble beginnings and that is why it has a rich history and each member should borrow wisely and repay promptly,” said Mr Chebii in Eldama Ravine on Thursday.

The society then known as Baringo Teachers Savings and Credit Society began operations with a capital of Sh60,000 and one staff member.

IMPROVED SERVICES

As the sacco became the preferred financial provider due to its improved services pegged on quality, integrity, professionalism, innovation and good customer service, the Sacco attracted more members from the neighbouring counties.

It later rebranded from Baringo Teachers Sacco Society limited in 2012 to Boresha Sacco.

This move saw the sacco cast net far and wide and attract members and partners nationally and internationally. The members could not be served due to its initial name and geographical location.

Boresha Sacco came up at a time when banks had shunned the region and most residents in rural Baringo did not own bank accounts.

“The pastoralist communities from far flung areas like East Pokot, Nginyang and Kapedo never had banking services closer to them and were traveling up to Nakuru or Eldoret for a simple cheque clearance,” said a member at Kabarnet Boresha offices.

Mr Chebii said the sacco won the confidence of pastoralists, teachers, matatu operators among others who entrusted the sacco with their money and supported it in a big way.

“Due to good governance and accountability which guaranteed the safety of members' savings, the confidence grew tremendously as they supported the sacco by increasing their savings in a big way,” added Mr Chebii.

The sacco now has a customer base of 108,196.

“We target to hit a membership of 150,000 as we plan to improve our financial services to suit the needs of our loyal customers,” said Mr Chebii.

The sacco, which is led by Dr Moses Chebor as chief executive officer, has 11 board of directors. It has attracted workers in Baringo County, Ministry of Health and the business community.

Members’ savings is Sh4.7billion while loan advanced to members stands at Sh5.9 billion.

DIVIDENDS

The members are set to be paid dividends amounting to Sh324 million for 2019.

Mr Chebii says one of the major challenges faced by the sacco is loan default running into millions of shillings.  

“We have employed field officers who track down the defaulters to ensure they pay their loans promptly,” he said.

From a single employee, the sacco now has 174 permanent staff.  

The sacco asset portfolio, which include the Teachers Plaza which houses its headquarters in Eldama Ravine, is growing as it also owns another building at Kabarnet town.

“The two assets are worth about Sh300 million and they are some of our sources of income since we have rented out office space,” said Mr Chebii.

The sacco plans to put up another office block in Marigat town.  

“We encourage members to buy equity shares in the buildings the sacco owns as they stand to earn dividends at the end of the year,” added Mr Chebii.