NSSF Sacco CEO, CPA Antony Kahoru /MARTIN MWITANSSF Sacco is targeting Tier I status as it seeks to grow its asset base, expand membership beyond its traditional employer base and strengthen its position as a major player in Kenya’s increasingly competitive savings and credit cooperative sector.
The Sacco, which was established in 1990 by employees of the National Social Security Fund (NSSF), is now targeting the wider market, including private-sector workers, small businesses, organised groups and individuals in the informal economy.
Chief executive, CPA Antony Kahoru said the Sacco is approaching the Sh5 billion asset mark and expects to attain the threshold for Tier I status during the current year.
“We shouldn't end this year before we are a Tier I Sacco,” Kahoru said in an interview with the Star.
The growth target comes as NSSF Sacco implements its 2024-2028 strategic plan, which seeks to increase active membership, deepen technology adoption, improve service delivery and diversify products while maintaining the institution’s focus on member welfare.
The Sacco currently has more than 12,000 members, of whom nearly 9,000 are active. About 8,000 members transact with the institution on a monthly basis. Its asset base is approaching Sh5 billion, while the loan book stands at about Sh4 billion, against savings of approximately Sh3.9 billion, with over Sh1 billion in reserves.
Kahoru said the Sacco wants to increase active membership to at least 15,000 and grow its asset base to not less than Sh6 billion by 2028. NSSF Sacco began opening its membership to employees outside NSSF in 2004, ending its previous model where membership was largely restricted to the pension fund’s employees.
It now has members from nearly 50 other employers, most of them in the private sector. The Sacco is seeking to widen this pool further by targeting the entire economy rather than restricting recruitment to specific industries.
“We are looking at the whole market. We are not limiting ourselves to a certain sector or industry,” Kahoru said.
He said the strategy will also focus on the small and medium enterprise sector and informal businesses, including small traders and transport operators.
Kahoru said the Sacco wants to reach Kenyans who may be able to save relatively small amounts but whose collective contributions can provide a significant pool of funds for lending and investment.
The expansion is also being supported by technology, under the strategic plan, which Kahoru identified as one of the most important sources of competitive advantage for financial institutions. Under its strategic plan, NSSF Sacco wants members to access services without necessarily visiting its offices.
A prospective member should be able to register online and access products and services remotely, Kahoru said, as the institution seeks to serve customers regardless of their physical location.
The technology investment will also focus on improving internal processes, cybersecurity, data protection and the safety of members’ funds.
Kahoru said the Sacco is conscious that greater reliance on digital platforms exposes financial institutions to cybersecurity risks and therefore security must be incorporated into every technology investment.
NSSF Sacco has more than 20 credit facilities and over five investment options designed to meet different member needs.
The Sacco’s core business remains mobilising savings and advancing loans to members, with Kahoru saying surplus funds are invested in permitted avenues to preserve and create value for members. These include government securities, regulated financial institutions, investments through approved channels and other avenues permitted under the regulatory framework.
The institution is also seeking to increase non-funded income through insurance brokerage and agency services, leveraging its growing membership base to negotiate products for members while generating additional revenue. Kahoru said the Sacco’s expansion will, however, be anchored on financial prudence and regulatory compliance.
NSSF Sacco is a deposit-taking Sacco regulated by the Sacco Societies Regulatory Authority (SASRA), with the CEO saying it has maintained a strong compliance record. The regulator requires deposit-taking Saccos to maintain prudential ratios covering areas such as liquidity and capital adequacy to protect members’ funds and ensure institutions can meet their obligations.
Kahoru said the Sacco’s strategy is built around four key pillars—financial sustainability, business development, efficient business processes and innovation.
The objective is to build a financially strong institution capable of providing faster services while maintaining high standards of corporate governance.
The CEO also supports proposed changes to Kenya’s cooperative legislation, arguing that the laws need to reflect the transformation of the sector since the current frameworks were introduced.
He said technology, devolution and the changing nature of cooperative business have created a need to modernise the legal framework.
Among the potential reforms, Kahoru pointed to the possibility of cooperatives participating more directly in the national payments system, shared services and greater cooperation among Saccos in mobilising resources.
For NSSF Sacco, however, growth will remain tied to its founding objective of improving the welfare of members.
Kahoru said the institution’s expansion into new segments of the economy is intended not merely to increase numbers and assets, but to build a stronger financial cooperative capable of providing affordable credit, secure savings and relevant financial products to a wider pool of Kenyans.
