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How Good Hope Sacco is creating value for members’ funds through technology, reports tremendous growth

Savings and Credit Co-operatives (SACCOs) play a critical financial role to both formal and informal workers. Since their establishment, people have opted to save and acquire loans from them, bringing stiff competition to giant financial institutions like banks in the market.

To enhance service delivery, the cooperative societies including Good Hope Sacco Limited have embraced mobile banking technology. These enhance efficiency and convenience in their day-to-day operations, meeting their mandate.

While celebrating 46 years of service, Hope Sacco bragged increased use of mobile banking by customers in accessing their services. 

The Sacco board of directors’ chairman Isaac Kilesi observed that the society invested heavily in mobile banking as an alternative banking service, especially during the COVID-19 pandemic period. 

“Mobile banking services have been embraced by many members as opposed to other years where the Sacco members were shying from the use of the said service, due to cybercrime fears,” Kilesi said. 

Indeed, impressing technology took a while, mostly “old school fellows” who have attained majority and own enterprises despite being civil servants feared to be conned. 

However, the Sacco subsector saw many people opting for digital platforms after finding out various benefits. 

Kilesi praised the integrity of the Sacco ABC system, saying it has been vital for the society’s growth and transformation agenda, attributing its success to the good leadership of the society. 

“In the midst of cybercrime activities, God has been gracious to us that no money has ever been lost. This has also been attributed to the integrity of our staff as many of the cyber-crimes are usually instituted by insider’s activities,” he said. 

Sacco performance

Good Hope Sacco members following the proceedings of the AGM

Good Hope Sacco reported tremendous growth in key performance indicators like revenue, assets, deposits and savings, among others. 

The society reported a growth of KSh 4.7 million in profit to KSh 25.3 million for the financial year ending December 31, 2022, compared to the previous year when it recorded KSh 20.6 million profit.

The Sacco bookshop sales increased from KSh 2.3 million reported in 2021 to KSh 4.6 million, during the same year under review. 

“The society has also recruited new members, especially from the business community. Moreover, the new members have contributed deposits to the society as well as taking loans,” Kilesi added. 

Good Hope Sacco also registered an increase in revenue reserve at more than KSh 36.8 million in 2022 compared to 2019 where they obtained KSh 2.7 million. 

“This statutory reserve, which is a compulsory reserve made out of profit every year to ensure the increase of capital annually, stood at KSh 17.3 million in 2022, compared to KSh 7.28 million reserved in 2019,” the chair’s report continued in part.

The society boss projected reserves to tremendously increase attributing it to the Sacco board of directors and management team’s efforts and hard work.

Institutional capital increased from KSh 12.3 million in 2021 to KSh 22.9 million reported in the year 2022. 

“This shows that the future of the Sacco is very bright if only members can avoid ultimatums that can be detrimental to the society’s growth trajectory and transformational agenda,” said the chair.

Good Hope Sacco posted increased loan interest income of KSh 23 million during the same period under review.

The society paid out deposit refunds to retired members amounting to Ksh 19.2 million during the same year under review. The society will be debt free by the end of May 2023.

Future prospects

The Sacco intends to buy new fleets for its members and create value for their funds, empowering them through income from the transport service.

Kilesi noted that through mobile banking services, all matatus under this programme will be collecting their fares using pay bills.

“This will help our members to diversify their income rather than relying on one source of revenue, besides earning dividends daily,” said Kilesi.

The society has also invested in the real estate sector, empowering members through housing plans. During the year under review, income from the sector grew to KSh 4.6 million, compared to KSh 4.5 million.

Since its inception, Good Hope Sacco endeavours to empower its members through tailored and competitive products and services. 

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