The Kenya Union of Savings and Credit Co-operatives KUSSCO has added insurance services to its business portfolio as it seeks to diversify income streams.
Chief Executive Officer George Ototo says the KUSCCO Mutual Assurance targets middle and lower income earners and Sacco members as it seeks to claim a stake in the country’s insurance sector.
Last year saccos across the country had a combined deficit of 100 billion shillings due to increased borrowing and reduced savings from the members.
To mitigate against losses the government and financial stakeholders have been frequently urging saccos to diversify and add more products in their business portfolio to sustain growth.
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The new subsidiary, KUSCCO Mutual Assurance will focus on unveiling life insurance policy that targeting the middle and lower earners.
The Sacco targets to raise 1 billion shillings annually in premiums as seeks to penetrate the competitive insurance industry.
KUSSCO is planning to leverage on the membership of its 1,700 saccos under its management to source for its customers and increase its market share.
The cooperative societies have similarly been urged explore opportunities under the government’s big 4 agenda especially manufacturing and affordable housing sectors to diversify their investments.
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