Wakenya Pamoja Sacco Society, encompassing boundaries of Kisii,Nyamira and Homa-Bay counties, has geared up to launch a Deposit-Taking Micro-Finance(DTM) bank immediately after getting a license from the Central Bank of Kenya(CBK). The Sacco CEO Vincent Oigo spoke with a writer in his office at Kahawa House headquarters in Kisii town, where it was said the process of establishing this new venture was in its advanced stages. Oigo clarified the DTM bank will not lead to the dissolution of the Sacco, instead each of the two entities will run independently. The Sacco will acquire an investing a stake of 51% of the total shares in the DTM bank, while other partners will share the remaining 49%. The Sacco management settled for the establishment of a DTM in lieu of transforming the Sacco into a full-fledged bank. The operation would entail a rigorous legal process before getting approval and license from the Central Bank of Kenya. The CEO allayed fears among the Sacco's over 158,000 members, who may have thought their Sacco intended to be dissolved and transform into a bank. He assured them that the Society will be intact and continue serving them as usual. He further disclosed the Sacco management had decided to establish a DTM bank to ensure its members have access to loans at a cheaper interest rate, which would not be the case when commercial banks interfere in the process of lending money to the same members of the Sacco. The DTM bank,Oigo disclosed, will ensure loans are cheaper since funds will be mobilized and sourced locally from shareholders.

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