For many young people, saving is often pushed aside because of limited income or the belief that it requires large amounts of money. NSSF Sacco is now seeking to change that thinking by lowering its minimum monthly savings requirement, expanding its digital services and opening its doors to more members as it steps up efforts to attract a younger generation.
The sacco says the strategy is already bearing fruit, with young people now making up the largest share of its membership following a sustained recruitment campaign aimed at changing perceptions that saccos are only meant for older workers.
Speaking during a Radio Generation interview on Tuesday, NSSF Sacco Chair Livingstone Masai said the co-operative has evolved from a small society formed by National Social Security Fund (NSSF) employees into a nationwide financial institution serving members from different organisations and individual savers.
He said what started with only 10 members has grown into a membership of about 10,000 active savers, the majority of whom are no longer employees of NSSF.
"NSSF Sacco was established 36 years ago by a few NSSF employees. By then it used to be called Nassefu Sacco. It was started by about 10 people, but now we are boasting of 10,000 active members. Members from NSSF as an employer are about 1,000, while the other 9,000 come from other employer companies, and we also have individual memberships."
Masai said the sacco has also recorded steady financial growth, building an asset base of Sh4.8 billion, with lending to members accounting for the largest share of its investments.
He explained that most of the sacco's resources are invested in loans rather than sitting as cash, making its financial position stable.
"Currently we are at a Sh4.8 billion asset base. The majority of that money is in loans. Saccos that could be worried are those that are extremely liquid, but for us, most of our assets are in the loan book."
Established in August 1990, NSSF Sacco Limited was originally known as NASSEFU Savings and Credit Society and served employees of the National Social Security Fund. It has since expanded through an open common bond, allowing employees from other organisations and individual members to join.
Apart from mobilising savings and offering affordable credit, the sacco also provides Front Office Service Activity (FOSA) banking services, insurance products and digital banking solutions to support members in managing their finances.
Masai said joining the sacco has become easier through technology, with prospective members able to register using the mobile application, the USSD platform or by visiting the sacco's offices.
He added that members also enjoy access to services through more than 60 NSSF branches spread across the country.
According to Masai, young people currently account for about 70 per cent of the sacco's membership after an aggressive recruitment exercise, although many still need to be convinced that saccos remain relevant.
"A big population of our membership today, about 70%, are young people. We recruited aggressively in the recent past and we are still reaching out to those who are sceptical about joining saccos to explain why it is important to belong to NSSF Sacco or any other sacco."
He said one of the biggest challenges has been changing the perception that saccos are outdated and helping young people understand that saving is possible regardless of income.
To make the products more accessible, Masai said the sacco has reduced its minimum monthly contribution to Sh1,500 while encouraging members to save small amounts through its digital platforms.
"They have a perception that saccos are old school. We are trying to make our saccos appealing by digitising. Another challenge is that many young people feel their income is not sufficient for savings. We want to tell them that saving is not about how much you earn; it is a habit you develop. We've lowered our minimum deposit to Sh1,500 so everybody can join, and even digitally they should be able to save small amounts every day."