21/12/2025
WE SHALL NOT ALLOW QWETU SACCO TO GO DOWN
If you lived in Voi town in the early 1980s like myself, you probably still remember a finance and building society located at the Jumbo House.
Now my family opened and operated a very very healthy account with this society. It was locally owned by indigenous Taita who later went on to incorporate or founded the first private boarding school in Taita-Taveta district. My third born schooled at Taita academy. Why? Because I believed and still believe in local investments. Way back in 1950s my parents, together with Jaramogi Oginga Odinga founded the Luo Thrift and Trading Co which today own many assets in Kisumu town and huge sugarcane plantations
Back to the finance and building society. During this period the economic news was not all bad.
Interest in this particular building society among investors and policy makers in the district was higher.
Indeed in many discussions this society was regarded as goldmine. Mining firms, agricultural firms, workers of Kenya Railway, KWS, Telekom, Posta, Kenya Power, Kenya Pipeline, teachers and members of business community in Taita-Taveta district saved with building society.
Rural and urban finance and building society, owned by the elite Kikuyu business men led by Andrew Gumba, the former mayor Nairobi city tried to open a branch in Voi but found this building society enjoyed unparalleled advantage over all financial institutions in Taita-Taveta district. It tended to have strong balance sheets. This stunning lead and improvement came through several routes.
The building society was early to diversify away from saving to other financial facilities.It increased its use of deposits from 1 percent of total deposits to 14 percent then. The incentive to save was backed by both high interest on deposits.
But none of these successes frees the building society from the need to address its many other problems, whether customership, financial or economic.
But the successes were still major achievements and lessons for other communities in operating their homegrown financial and building society.
Then the orchestrated smear campaigns against the building society, cooked and churned out by a community which wanted to found their own bank and open a branch in Voi.
Darwin's metaphor was apt: even though long necks seem like a waste in normal times, giraffes have advantage in a drought: they can eat the leaves on the tops of trees that are out of reach for other animals.
In an economic downturn communities with their own bank have advantage even though higher interest rate seems like a waste in normal times.
With their locally own Sacco, community is more likely to weather the bad times than a community without homegrown sacco.
If we ask the economic mirror on our financial wall who has the best credit policies between the private banks in Voi and Qwetu SACCO we may not get the answer that we expect. Shall we allow Qwetu SACCO to go down because of conclusion based on ignorance, propaganda and gullibility?