Safaricom Sacco rebrands into Qona Sacco in a grand event

On November 29th, 2024, at a Nairobi hotel, Safaricom Sacco which was initially founded in 2001 unveiled its new identity as Qona Sacco. According to views expressed at the grand and colorful event, the rebrand is evident proof of the Sacco’s transformation over the last 23 years into a robust financial institution serving diverse members from across Kenya. Initially, the Sacco was a savings initiative for a small group of Safaricom Ltd PLC employees. Its impressive growth has led to a membership of over 18,000 currently and with assets surpassing K sh 11.5 billion.

Qona, is concocted from ‘Kona’ a Kiswahili word literally depicting a ‘corner’, and embodying the brand’s promise: to always be ‘around’ every other corner for the membership offering support, solutions, and a sense of community. The Qona Sacco promises to continue serving and collaborating with ambitious and visionary individuals and in the process continue empowering the people to continue having meaningful lives.

George Hunja, the Sacco Chairperson, affirmed at the event that Qona represents stability, partnership, and the collective strength needed to achieve personal and financial growth. “This rebranding is more than change of name; it’s about a renewed commitment to our members,” he asserted. According to him, Qona Sacco is a modern, forward-thinking financial partner ready to serve the evolving needs of its community. “We have in the past years grown under the wings of a giant, the Safaricom Ltd PLC, but we’re now determined and committed to take flight on our own,” he asserted. According to Hunja, the Sacco has been a forerunner in the last six years with a nominated committee that ensure prudence and accountability for every coin used. 

“The Board is keen to serve in the dream of making the Sacco one of the best and most successful in the country. We’re proud to be serving this Sacco and our target of attracting over 70,000 members shall be realized in stages of the next several years. Every year we’re keen to attract and register about 13,000 members and 52,000 in the next four years,” he affirmed. According to him, the Sacco is proud to be hosting its annual Qona festival providing an arena for content creators and other creative people to express themselves and learn from each other.

“Qona Sacco is more than a financial institution—it’s a community. We are here to empower, uplift, and support our members as they pursue their dreams. With a focus on technology, accessibility, and innovation, we are creating a financial ecosystem that caters to modern needs while staying true to our core values,” asserted Joseph Njoroge, Qona Sacco CEO.

At a follow up interview, Njoroge appreciated and commended the impressive attainments that the Sacco has realized over the years. “We’ve worked hard to surmount the challenge of attracting youth into the Sacco movement which has traditionally been viewed as a reserve of older people. The youth have been our main focus given their energetic and ambitious nature,” Njoroge averred. He explained that the Sacco has endeavored to use as attractive colors as possible and is determined to enroll close to 70,000 members in the next few years. He identified cyber security as one of the challenges the Sacco is facing but also assured that the management is investing in reliable technology to fight this off.

According to David K K Obonyo, Commissioner of Co-operatives Development at the State Department of Co-operatives in the Ministry of Co-operatives and MSMEs Development, the adoption of the Qona name gives the Sacco its own identity as a young, vibrant and focused Sacco. “This Sacco has good membership and is fast growing having raised over k sh 10 million in the last three years. And while other saccos are struggling to attract young people, Qona Sacco’s majority membership is youths and young people courtesy of use of technology. I would urge other Sacco members and management to engage with Qona for them to learn of the strengths of using technology for gaining a competitive edge,” Obonyo observed in a side interview.

He observed that the desire by some Saccos’ management to give big dividends to members (at the end of each financial year to please the members and also give a false impression that such Saccos are earning big profits), is unwise and against the Saccos’ spirit. Some members also demand for big dividends; this has created a huge challenge for the Societies with some borrowing or using members’ normal shares cash, a thing that lead to financial challenges which risk daily Saccos operations and present risks of insolvency. Some Saccos also provide for unrealistic surpluses that eat into members’ cash leading to financial constraints later. “The Saccos’ essence is to mobilize savings and then provide affordable loans and related solutions with dividends pay-outs being a by-product,” Obonyo emphasized. 

He revealed that a circular is due for release by end of 2024 stopping Saccos’ management from creating accounts that freely supply members’ cash without adherence to due process and Saccos’ laws and regulations. According to him a Corporate Act Bill is at its 3rd reading; this law will endeavor to enhance good corporate governance of Saccos especially given the reality that some Saccos officials are merely out to enrich themselves with members contributions. “There will be new provisions in the law allowing for thorough vetting of the teams vying to become Saccos’ officials. The role of supervisory committees & boards will also be strengthened,” Obonyo added. According to him most Saccos in the country are performing very well. Over k sh 682.19 billion members’ deposits were collected by 2023. “”We’re keen to protect all the Saccos in the country and take them to the next level,” Obonyo affirmed.

The Nairobi County Director of Co-operatives Dolphin Aremo assured that the County Government will continue walking with Qona Sacco. “The total Co-operatives assets in Nairobi County are k sh 75 billion (B) with Qona already having over 10 B at position 10. So we’re determined to walk with this Sacco and help it in its goal of becoming a Club of Billionaires,” she asserted in a side chat. She confessed that governance remains a challenge among Saccos and co-operatives in the country. “Management committees often keen to impress members give fictitious dividends or even borrow to pay the same leaving such Saccos in financial distress. Yet Qona is way ahead given that it obeys the bye-laws including the requirement that Committees and Board members can’t be re-elected for more than two terms,” Oremo revealed. 

“Co-operatives play a critical role in kenya’s economic growth and financial health. Everyone must be encouraged to save in Saccos and other financial institutions given that it is the pool of such savings that enable economic growth,” she observed. According to her, Kenya is a social economy (A social economy is a collection of businesses and organizations that prioritize social and environmental concerns over profit. Social economy organizations are driven by a social mission and aim to have a positive impact on local communities. They are often not-for-profit or third-sector organizations, but can also include cooperatives, mutual societies, foundations, and social enterprises—Google courtesy) and there is need for co-operatives to have re-insurance just in case of loans repayment defaults and other risks that can lead to collapse or illiquidity in co-operatives. 

As part of the rebranding celebrations, Qona Sacco also hosted its staff and some invited guests at a joyous party held at the Aga khan Walk in Nairobi CBD. {Ends}