Safaricom Sacco share issue targets Sh1 billion for expansion

Safaricom CEO Bob Collymore during the release of the company's full year financial results on May 7, 2015. Safaricom Sacco has issued new shares seeking Sh1 billion to fund strategic expansion. PHOTO | SALATON NJAU | NATION MEDIA GROUP  NATION MEDIA GROUP

In Summary

• The Sacco founded in 2001 has 8000 members and an asset base of Sh2.8 billion, and is implementing a strategic plan targeting to grow its business fourfold by 2018. 
• Only members are eligible to buy the Safaricom Sacco shares.

By BRIAN NGUGI
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Safaricom Sacco has issued new shares seeking Sh1 billion to fund strategic expansion.

It also plans to construct a 15-storey office complex opposite the Safaricom headquarters.

The Sacco founded in 2001 has 8000 members and an asset base of Sh2.8 billion, and is implementing a strategic plan targeting to grow its business fourfold by 2018. 

Safaricom Sacco CEO Mr George Ochiri, speaking while launching the shares offer dubbed “Nawiri na Safcom Sacco” said the funds to be raised will go towards increasing the threshold for members’ loans currently standing at Sh2.7 billion for 6,600 borrowers at an upper limit of Sh10 million.

“We also want to introduce collateral backed lending and complete construction of this proposed Safaricom Sacco Tower along Waiyaki way,” said Mr Ochiri.

The Safaricom Sacco headquarters, if approved as proposed, will be one of tallest buildings dotting the Westland skyline.

ELIGIBILITY

Only members are eligible to buy the Safaricom Sacco shares.

Recently, the Sacco has expanded membership base to include employees of companies affiliated to Safaricom. 

Mr Ochiri said Safaricom Sacco had received approval from the Sacco Societies Regulatory Authority (Sasra) and Capital Markets Authority to mobilize new shares from members.

In 2011, Safaricom Sacco was licensed by Sasra to operate front office services activities.