In the past five years, Apstar Sacco has demonstrated remarkable resilience, strategic focus, and steady growth, as highlighted by key performance indicators spanning 2019 to 2023. And as Apstar Sacco marks the end of yet another successful year 2024, it has already prepared a launching pad towards a growth trajectory well-crafted to navigate its operations deep towards the year 2029.
Riding on previous successes, the Sacco continues to showcase its unwavering commitment to member satisfaction, financial stability, and operational excellence. “Over the last five years, our membership increased significantly from 38,600 in 2019 to 61,085 in 2023— a remarkable 58.3% growth, with an average annual increase of 11.65%. This growth reflects our success in providing value-driven services and our expanding reputation as a preferred financial partner,” says Apstar Sacco Chief Executive Officer Dr. Richard Nyaanga.
The Sacco recently conducted a member’s sensitization drive in order to appraise its members on the journey travelled as well as preparing for the journey ahead. As part of the feathers in the Sacco’s cap, its total assets grew from KES 11.92 billion in 2019 to KES 15.18 billion in 2023, representing a 27.3% growth rate and an annual average of 5.46%. This reflects the Sacco’s strategic investments and prudent financial management.
In addition, the Sacco over time has registered growth in its loan portfolio from KES 9.37 billion in 2019 to KES 11.94 billion in 2023, a 27.4% increase, with an average annual growth of 5.48%. “These numbers signify the trust our members place in us to support their financial needs,” said Dr. Nyaanga adding that members’ deposits increased by 28%, rising from KES 8.42 billion in 2019 to KES 10.78 billion in 2023. This sustained growth, averaging 5.61% annually, underpins the confidence members have in Apstar Sacco.
The Sacco’s National Chairman Dr. Philip Cherono alludes to the fact that the Sacco will capitalize on the gains achieved in the past five years to catapult it into the next five years. The Sacco shall be riding on its new brand launched on 15th March 2024 as its main driver towards success.
“Our five-year performance demonstrates the resilience and adaptability required to navigate a dynamic financial landscape. As we move forward, our focus will remain on enhancing member services, expanding outreach, and strengthening financial stability to ensure continued growth and member satisfaction,” Dr. Cherono told the Sacco members during the recent countrywide members education drive.
According to Dr Cherono, Apstar Sacco, mission is to deliver financial solutions that empower its members and with this in mind, the Sacco has implemented strategic measures to enhance loan quality as well as introduce innovative services tailored to meet diverse member needs.
To ensure a strong and reliable loan portfolio, the Sacco has adopted key strategies such as better Loan Appraisals, thereby tightening the appraisal processes to ensure loans are granted to creditworthy members only. In addition, the Sacco has made stronger Employer Partnerships and relationships in order to achieve timeliness of salary remittances a move that is meant to enhance loan repayment consistency.
The Sacco’s robust ICT systems has been deployed in all the areas of operation in order to ensure efficiency and member satisfaction. Some of the gains from such initiatives include proactive monitoring of members loans who receive frequent reminders about their arrears to avoid defaults.
Recently, the Sacco undertook an upgrade of its mobile banking platforms making it easier for members to manage finances on the go. Other new services driving member growth includes relationship banking, a service that has proved popular amongst individuals, Chamas, and corporates seeking basic banking services without committing to full Sacco membership.
As a means of containing the aged population from withdrawing membership, the Sacco is championing its Hifadhi Fixed Deposits Account which is working well for retirees transitioning from active employment. The account allows phased withdrawals while earning monthly returns, providing financial stability.
Another jewel that Apstar Sacco members shall be reaping gains from is the ongoing implementation of an Electronic Document Management System (EDMS). “This cutting-edge system will revolutionize the way we handle the creation, execution, storage, and access of information,” said Dr. Cherono.
This introduction of an automated workflow will alleviate the cumbersome burden of paperwork, drastically reduce approval timelines, and significantly boost our productivity. By streamlining our working procedures, we are set to achieve new heights of efficiency. The system shall see a drastic reduction of paperwork that is not just a step towards modernity, but also a strategic move to lower operational costs.
“These savings will directly translate into increased productivity, allowing us to reinvest in our services, enhance our technology, and expand member benefits,” said Dr Cherono.
Moreover, these cost reductions will empower Apstar Sacco to offer more competitive interest rates, favourable loan terms, and higher returns on savings. This will not only attract new members but also give the Sacco a competitive edge in the market.
“The EDMS will foster collaboration and resource optimization, further improving our business efficiency. Digital documents, which are easy to search, retrieve, and share, will drastically cut down the time and resources spent on manual processes,” said Dr. Cherono.
This system will seamlessly complement the Sacco’s Customer Relationship Management systems and core ERP, facilitating member self-service and self-help functions. Apstar Sacco members will be able to seek information, request services, and resolve issues online with ease.
In its bid to reaffirm its commitment to providing unparalleled services to its members, the Sacco opened six satellite offices, in order to live true to its one of its core values that of accessibility by bringing services closer to its members.
“As part of our mission to enhance member experience and accessibility, Apstar Sacco is happy to announce the launch of satellite marketing outlets in six strategically chosen regions across the country,” Said Dr. Nyaanga.
According to Dr. Nyaanga, the six satellite offices are located in Kitui, Narok, Kitale, Kilifi, Bungoma and Migori. The services offered at the satellite outlets include handling Member Enquiries, addressing member complaints, member recruitment, loan Applications, among others. The initiative underscores the Sacco’s dedication to making members interactions with Apstar Sacco more seamless and convenient.
In another exciting development, Apstar Sacco is partnering with local business owners to roll out Sacco agency services. This innovative program will allow the Sacco to extend its reach beyond physical locations, ensuring services are accessible to members in even the most far flung areas.
“We are inviting members and interested businesses who own businesses to join this initiative by becoming Apstar Sacco agents. Not only will this partnership support the Sacco’s operations, but it also offers a fantastic opportunity to grow your business by providing essential financial services to your community,” said Dr. Nyaanga.
These ground-breaking initiatives are a testament to Apstar Sacco’s unwavering commitment to empowering its members and fostering community development. “We are excited to embark on this journey with you, ensuring that Apstar Sacco remains your trusted partner in financial growth and stability,” said Dr. Nyaanga.
