SACCOs, especially those in the deposit-taking business, continue to rebrand to appeal to more members and compete for fierce competition for deposits.
- Other players in the financial industry include banks and microfinance institutions.
- The latest to join the rebranding bandwagon is Kitui Teachers Deposit-Taking Sacco, which is set to be rebranded as Univision DT Sacco.
- Kitui Teachers Sacco has since joined other companies that have rebranded and changed their corporate identity to increase their visibility and appeal across Kenya.
The long list of DT Saccos that have since rebranded includes Baringo Teachers which changed its name to Bolesha, Skyline to Baringo Farmers, Binwa to Kirinyaga Tea, Capital to Meru Farmers, Imarika to Kilifi Teachers, Cosmopolitan includes Nakuru Teachers and Thika District Teachers.Orient Sacco, Nyandarua Teacher to Tower Sacco, Trans Nzoia Teacher to Transnational Times, Samburu Teacher to Spa, Siaya Teacher to Taraji, Kuria Teacher to Stake Kenya Sacco, Kiambu Teacher to Metropolitan etc.
The latest rebranding disclosure was made to members during Kitui DT Sacco’s 47th event.th Annual General Meeting (AGM) held in Kitui.
“Our current name has revealed our vulnerability and exposed us to stiff competition,” said Kitui Teachers DT Sacco board chairman, Pastor Augustus Mnube.
- He said Kitui Teachers DT was forced to change its brand name and hire non-teachers in Kitui County.
- The board expects that this will improve Sacco's profitability, increase liquidity through more active deposit mobilization from both the salaried and business communities, and ensure a sustainable growth trajectory.
- Perhaps not coincidentally, Saccos for teachers tops the rebranding list, followed by Saccos for farmers across the country.
DT Sacos' competition across different sectors of the economy continues to change strategies, introduce new products, and provide better service through rebranding and recruitment efforts.
However, it is unclear whether this trend is yielding better returns, and the profile for existing customers continues to elicit mixed reactions from this subsector.
Many DT Saccos are in recruitment mode and this move erodes investment funds and leads to lower savings returns for members.
The establishment of Front Office Services Activities (FOSA) operations and the opening up of these Saccos to new members is said to be causing friction among some of the affected DT Saccos.
Also read: SACCO in new battle for Nairobi central business district
