Peter Kariuki: how I have steered Sheria Sacco to the top

Recently, our Senior Reporter Ken Ondieki interviewed Peter Kariuki, the Chief Executive Officer Sheria Sacco, one the of leading  tier 1 Deposit-Taking Saccos in the country.  The Sacco is placed position 22 by the latest SASRA ranking. Kariuki spoke elaborately on his vision for the Sacco, expansion Plan, Sacco’s risk management structure in mitigating the Covid-19 pandemic, among other pertinent issues. The following are excerpts from the interview;

Q: What achievements have you personally realized for this Sacco, since you took over?

A:I have managed to put together a cohesive management team and staff with a common focus on inspiring, equipping and empowering members.The team is customer sensitive in addressing their issues  andneeds promptly, improving service delivery through automation.

We now have a new mobile platform where members can apply for loans, make payments from M-Pesato their different accounts in the Sacco, check balances, pay for utility bills from their FOSA accounts, stop ATM transaction in case of card loss, etc).

As at 31 st December 2019 the Sacco’s  Total Assets were Sh6,030,092,157, Deposits Sh4,338,815,517,  Liabilities – Sh. 468,560,306 and Membership 12,684.  We have one satellite branch in Kisumu while another one coming up soon in Mombasa.

Q: What are the secrets behind the success of your Sacco nationally?

A:Though the sacco was launched in 1972 to serve the Judiciary, AG Office, we have since opened membership to any salaried Kenyan citizens and even business persons –we have a national outlook.

Further, we have a diverse and well able Board led by the Hon. Justice Patrick Kiage, the Chairman, (A judge of the Appellate Court).

Our Board and Management adhere to a very high standard of governance and ethics that puts the interest of the member ahead of any other interest.

Q: What are the expansion priorities and goals put in place by the Sacco moving forward?

A: Sheria Sacco will explore converting the Kisumu satellite branch to a full branch to establish personal touch with its many members in Nyanza, Western Kenya and Northern Rift regions.

The Sacco further plans to make full use of ICT to conveniently make available all forms of services on mobile platform. The Corona Pandemic has helped us adopt technology in a way that previously we were cautious and there is no going back.

We shall, however, set up necessary structures and set aside required budget to enhance security to mitigate risks that come with technology.

Q: Any plans in place for new Products and Services of opening of more branches?

A:Guided by feedback from our members

We intend to introduce Mortgage and Car loan.

Q:Your Sacco has been involved in CSR activities, mention some of them?

A:We have supported orphans at Our Lady of Nazareth – MukuruKwaNjenga by providing them clothing, sanitary towels and foot balls for boys. We have supported Hope Football team in Kawangware.

We gave support during open days in member organizations in form of sports kits and sports equipment.

We have also given our support towardsCelebral Palsy Society of Kenya Walk-2016.

Q: Are there any Saccos that visit your Sacco for benchmarking activities?

A:One of the universal Principles of Co-operatives is “Co-operation among Co-operatives.” Today Saccos have opened up to each other after learning that the market became liberal and Saccos realized they can benefit more in co-operating than in competing against each other.

Sheria Sacco has hosted many Saccos, like it has also been hosted by others for bench-marking. Some of the areas of focus in benchmarking has been Governance and Systems.

Q: There have been concerns over Gender parity in Saccos, how has your Sacco addressed this?

A:Sheria Sacco Board and Management has been keen to observe 1/3 rule in the staff workforce where currently the ratio is exactly 1:1.

The members on the grassroots have directors it the same ratio of either gender.

Q: As the CEO, what is your vision for the Sacco or where do you think the Sacco will be in the next 5 years, 10 years?

A: In the next 5 to 10 years, I look at a well automated Sacco where a member will be able to do virtually anything online. With increased automation, we shall increase the staff capacity available to offer personalized financial advisory to members.

We are currently focusing on diversifying our services towards ensuring that every financial service that members need they can access it from their Sacco and take advantage of synergy from their numbers to gain bargaining power to the members’ benefit.

On education, the Covid-19 pandemic has opened our eyes on the unexploited ICT channels that we can use to reach out and educate our members.

These channels offer options of interaction and others recording that a member can refer to when it is convenient to them. This we shall enhance and perfect it.

Sheria Sacco mission is to empower members economically through mobilization of savings and provision of affordable credit services.

I envision that in the next 5 years, the Sacco will have grown its assets close to three-fold. This will be as a result of the growth of the net-worth in individual members and growth of the Sacco’s institutional worth.

Q: What are some of the major challenges facing Saccos in general?

A:Saccos are member-owned organizations where trust is key. Members pool funds and allow few of their own to access loan beyond their savings and repay over a convenient period on the guarantee of fellow members. Betrayal of trust by a few members who fail to honour their loan obligations impacts negatively on this important link in the rope that holds the Sacco.

Q: How is the Sacco’s risk management structure in mitigating the Covid-19 pandemic towards members saving deposits and also members’ efforts to repay loans?

A:We are closely monitoring of individual savings and loan repayments. We identifychallenges and circumstances surrounding individual members or group of members and coming up with ways of overcoming these challenges.

 In instances where member income/salary has dropped, loan reschedule to a longer period would enable the member to continue serving the loan conveniently. Where salary has ceased, granting of a loan moratorium may be the ideal solution as we wait for the situation to improve. A member who has several assets may consider it prudent to consider disposing of some to clear the burden of liabilities.

We are also engaging with members and sensitizing them on the need to be more prudent in expenditure to afford savings, for tomorrow always holds uncertainties and needs to be prepared for.

Q: Has the Sacco thought of lowering interest on loans to help cushion members from the effects of the pandemic now that most of them are not working or have had a drop on their earnings?

A:Sheria Sacco is among Saccos that have lowest interest rates on loans. Lowering interest is not a priority among the considerations we are making towards addressing effects of Covid-19.

Remember we have Sacco members who are savers without an intention to borrow. Such members are compensated for use of their funds by paying them reasonable return by way of interest on their deposits. Nonetheless, if circumstances arise where loan interest may become irrecoverable, the Sacco will consider write off.

Q: How do you balance between family and work?

A: There is time for everything and whatever you do, do it well. When it is time to work I put my mind to work and I even work late and my family understands.

Most weekends, however, I spend with my family and in church fellowships with brethren.

When I schedule time out with my family, it is time to travelto my upcountry home in Laikipiawhere we slaughter a goat to enjoy roast meat together as we also take a hand in farming for change.

Q: Who can you say is your role model in the Sacco or Co-operative sector?

A: Mr. Nelson Mwaura, an Accountant that I worked under in my first Sacco to work with in the 90s. He was so sensitive to safeguarding member funds.

He sacrificed a lot of his time towards building structures and people in the Sacco. I am a product of his efforts. He was a person of very high integrity.

Q: How do you utilize you free time?

A:Script writing, Bible study, reading books and travelling.