Slum-based Sacco, SHOFCO, Adopts Technology & Diversifies Membership

UPDATE

Slum-based Sacco, SHOFCO, Adopts Technology & Diversifies Membership

By Malachi Motano

Shining Hope for Communities (SHOFCO), a Savings and Credit Cooperative Organization (SACCO) in Nairobi city’s informal settlements of Kibera and Mathare; has adopted technology to attract more clientele and revenue. Since its establishment five years ago, in August 2015, the Sacco has built its membership base, from only 10 members to over 4, 000, out of which over 3, 000 members live in Kibera and 1, 000 live in Mathare.

Committed to recruit more members, the Sacco based in Nairobi, is now eyeing more members from other cities, with a main focus in the informal settlements of Muoroto slum in Tudor, in Mombasa and the giant Nyalenda slum, at the lakeside city, Kisumu. According to the Sacco manager, Collins Odongo, Shofco is keen to uplift lives of slum dwellers, who have largely

Shofco manager Manager Collins Odingo speaking to the press in Kibera.

been ignored by players in the industry.

“Our mission is to empower members economically, through mobilization of savings and provision of affordable credit services. We will consider opening our doors to other residents apart from slum dwellers, but for now we are still looking at how best we can roll it out, even though our immediate goal, is to reach slum dwellers in other parts of the country,” Odongo said. He was speaking to journalists in Nairobi, when celebrating Shofco’s fifth anniversary, where he indicated that the Sacco, intends to have its presence, in all major slums in the country, by the end of next year (2021).

“It is a movement for slum dwellers and targets to grow its assets by three-fold, in the next five years. Those who wish to join the Sacco, should visit our offices in Kibera and Mathare, for registration and submission of membership application forms and can begin to save from as low as Kshs 300 a month,” Odongo said. Currently, about 90 per cent of the Sacco’s members, are women in small businesses, such as vegetable vendors, and ‘Mitumba’ sellers, among others. The Sacco has created a mobile platform, that allows members to apply for loans and make payments.

“We now plan to fully go digital, embracing ICT, to conveniently make available all services on our mobile platform. Every cloud has a silver lining, Covid-19 pandemic has taught us to adopt technology advancements, in the delivery of services,” he said. Just like other financial institutions, the Sacco, has also been hit hard by the pandemic and as a result, has restructured loans worth more than Kshs 10 million, since April when the pandemic had soared.

“This is in line with the Central Bank of Kenya’s call, on financial institutions to provide relief to borrowers of personal loans, based on individual circumstances, caused by the pandemic,” he said. One of the beneficiaries of the Sacco is Sheripher Mutua, who runs an egg business and daycare facility for children in Lindi area, Kibera.

“I have just applied for my third loan. The egg business is doing really well, but the daycare has been hit hard by the Covid-19 pandemic,” she pointed out. Another beneficiary is Tabitha Oria, who leads a group of 35 young women, who have benefited from the Sacco said. “We first borrowed Kshs 25, 000 and we now intend to apply for Kshs 100, 000, to expand our business,” she says. Her group runs a water vending kiosk in Laini Saba area in Kibera.Shofco Sacco is truly transforming lives.