PSV Saccos urged to deepen savings and financial skills to drive sustainable growth
Equity bank and NAKKONS officials during the commissioning ceremony on Friday. Photos/Courtesy.
By MKT Correspondent
Public service vehicle (PSV) Saccos have been encouraged to cultivate a stronger savings culture and invest in financial literacy as a pathway to expanding their businesses, improving members’ incomes and increasing access to affordable credit.
The appeal was made on Friday by Equity Bank Director and Head of Retail Banking Carol Rutto during the commissioning of seven new passenger service vehicles purchased by NAKKONS Sacco in Othaya, Nyeri County. The buses were acquired through financing from Equity Bank as part of the Sacco’s ongoing fleet expansion strategy aimed at enhancing efficiency and strengthening members’ investments.
Rutto said access to loans alone was not enough to guarantee long-term success, noting that transport Saccos must also embrace prudent financial management, consistent savings and investments that generate lasting returns.
She said NAKKONS Sacco had demonstrated how collective action and financial discipline could transform the livelihoods of its members by converting daily earnings into productive assets.
According to Rutto, the public transport industry plays a vital role in supporting Kenya’s economy by linking people to jobs, markets and essential services. She noted that equipping PSV operators with financial knowledge and appropriate banking solutions would strengthen the entire transport ecosystem.
She said organised transport operators who embrace sound financial practices, adequate insurance, affordable financing and digital payment systems are better positioned to provide reliable services while creating employment opportunities and stimulating local economic growth.
Rutto added that Equity Bank’s engagement with transport Saccos extends beyond vehicle financing to include working capital facilities, savings products, insurance services, digital payment solutions, investment opportunities and entrepreneurship training.
She further urged members to strengthen their savings habits and maintain a robust group guarantee system, saying the two are essential in improving members’ access to financial services while enhancing the stability and resilience of their Saccos.
For NAKKONS Sacco, the newly acquired vehicles are expected to lower operational expenses and improve returns for members.
The Sacco’s Secretary, Timothy Wachiuri, said members had previously depended on imported second-hand vehicles that were costly to maintain due to frequent mechanical breakdowns and high fuel consumption.
He said the newly acquired vehicles were brand new and had zero mileage, making them more reliable and economical to operate.
“The vehicles belong to our members, and this investment marks a significant step forward. We have been spending heavily on repairs and fuel because of the used vehicles we operated before. These new buses will lower maintenance costs, improve reliability and ultimately increase members’ earnings. We thank Equity Bank for making this investment possible,” said Wachiuri.
Equity Bank General Manager for the Central Region Stephen Mwaniki said the financing package had been tailored to suit the cash flow patterns of PSV operators, enabling them to repay their loans comfortably while growing their businesses.
He said the repayment schedule had been structured with the operators’ business cycles in mind, particularly ahead of the festive season when passenger numbers are expected to rise.
Mwaniki noted that supporting small and medium-sized enterprises remains one of the bank’s key priorities because of the sector’s significant contribution to the country’s economy.
Besides providing financing, he said the bank had also trained Sacco members on financial management to equip them with the skills needed to build profitable and sustainable transport businesses.
The acquisition of the seven vehicles highlights the increasingly important role being played by Saccos in helping transport operators acquire productive assets, expand their enterprises and improve household incomes despite rising operating costs and growing competition within the public transport sector.
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