Egerton SACCO and University Leadership Unite to Tackle Financial Hurdles, Eye 50th Anniversary Milestone

Egerton University SACCO Limited Board of Directors, led by Board Chair Dr. Catherine K. Mumiukha, paid a courtesy call to Egerton University’s Vice Chancellor, Prof. Isaac Kibwage, on November 7, 2024. This meeting underscored the vital role the SACCO plays in supporting the financial stability of university staff while reaffirming the strong ties between the SACCO and the university.

The meeting began with warm welcomes and introductions, where key university representatives were present, including Prof. Bernard Aduda, Deputy Vice Chancellor (Academic, Research, and Extension), and CPA Charles Wanjohi, acting Chief Finance Officer. The SACCO delegation comprised of CEO Charity Sambu and Board Members Samuel Rumbe and Damaris Wanjama, all of whom expressed their appreciation for the university’s ongoing support.

Celebrating 50 Years of Service

Dr Mumiukha highlighted the SACCO's upcoming 50th anniversary, marking five decades of helping members achieve financial milestones, from building homes to funding education. She acknowledged the university’s unwavering support, especially the consistent monthly remittance of Ksh 2.5 million, which has helped stabilize the SACCO’s operations amidst financial challenges.

Reflecting on its mission to foster economic empowerment, the SACCO team was enthusiastic about the anniversary, viewing it as an opportunity to honour past achievements while addressing present challenges to ensure a resilient future. The SACCO has been pivotal in empowering Egerton University staff, and the university’s backing, as emphasized in the meeting, has been indispensable.

Addressing Financial Challenges and Planning Solutions

The SACCO Board presented a proactive plan to alleviate financial pressures on staff by potentially buying back loans held with commercial banks. This move aims to provide more manageable repayment terms and ease the financial burden on members, making SACCO loans an attractive alternative to high-interest commercial bank loans.

Prof. Aduda advised the SACCO to ensure that staff acting as loan guarantors specify the exact amount they are willing to guarantee. This, he noted, would prevent inflation of guaranteed amounts, an issue that has previously contributed to financial strain within the SACCO.

A Shared Commitment to Sustainable Financial Health

Prof. Kibwage, who has been an instrumental advocate for the SACCO’s sustainability, reassured the board of the university’s dedication to timely remittances, even amid the university’s financial challenges. He shared that one of his initial actions as Vice Chancellor was to address previous remittance delays, a crucial step that has since strengthened the SACCO’s financial position.

Emphasizing that loans empower individuals to invest in assets, Prof. Kibwage highlighted the need for careful coordination between the SACCO and the university’s Human Capital Department to ensure that staff meet their loan obligations responsibly. He urged the SACCO to consider training initiatives to educate staff on financial management, which could improve loan repayments and reduce reliance on high-interest loans from commercial banks.

As the meeting drew to a close, Prof. Kibwage reaffirmed Egerton University’s commitment to supporting SACCO’s mission, stating, “The university remains dedicated to ensuring the SACCO’s stability, which ultimately benefits our staff and strengthens our institution.” With the university and SACCO united in this goal, Egerton staff can look forward to a future of financial growth, stability, and mutual support.

By Agnes Mwangi