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Kewisco Sacco records 12.7% growth in assets

Kewisco Sacco

Kewisco Sacco records 12.7% growth in assets, attributed sustainable service, member value creation

By Caroline Machira

Kewisco, a non-withdrawable DT Sacco Limited recently announced substantial rewards for its members, reaffirming its commitment to shareholder trust and member satisfaction. During its 2024 Annual Delegates Meeting (ADM) on February 24th, 2024, held at the Sacco plot situated along Lang’ata South Road, the Sacco declared a 16% dividend on share capital and a 9.5% interest on member deposits.

Since its establishment in 1992, the Sacco has consistently prioritized meeting the unique financial needs of its members by providing tailored solutions.

“We remain committed to engaging with our members to ensure our products align with their expectations,” emphasized Rebecca Kipchumba, Chairperson of Kewisco Sacco, during her speech at the ADM, where she encouraged members to share their feedback to further improve services.

The ADM received the esteemed presence of Vincent Marangu, Director of Cooperatives, who served as the chief guest. During his address, Marangu emphasized the importance of nurturing a savings culture within the Sacco framework. He shed light on the transformative potential inherent in Sacco memberships, urging attendees to utilize these platforms effectively to secure their financial future.

Sacco leveraging ICT

In the financial year that ended December 31, 2023, the society made substantial strides in various aspects of its operations, contributing to its overall growth and effectiveness. One notable achievement was the introduction of online marketing and digital communication channels. By embracing digital platforms, the society enhanced its outreach capabilities, enabling it to connect with members and potential stakeholders more efficiently.

Furthermore, the development of a comprehensive marketing policy demonstrated the society’s strategic approach to promoting its services and brand. This policy laid out clear guidelines and strategies for marketing initiatives, ensuring consistency and effectiveness in promotional efforts. By aligning marketing activities with organizational goals, the society aimed to enhance its visibility and attract new members and partners.

In line with its commitment to member empowerment, the society prioritized improving member education programs. Through various training sessions, workshops, and informational materials, members were equipped with valuable knowledge and skills to make informed financial decisions.

Sacco performance

In terms of financial performance, the society achieved positive results across all financial parameters, despite economic challenges. Deposits increased by 12.25% to KSh 1.3 billion, from KSh 1.2 billion in 2022 and the asset base expanded by 12.7% to KSh 1.9 billion from KSh 1.7 billion the previous year.

Additionally, the loan portfolio reached KSh. 1.6 billion, showcasing sustained support from members. Revenue grew by 6.3% to KSh 250.8 million, from KSh 236 million in 2022 reflecting the Sacco’s ability to maintain financial stability and generate income.

Key Financial Matrix2023 (Ksh)2022 (Ksh)Growth (%)
Total Assets1,943,149,1001,724,389,46812.7
Members Deposit1,327,490,0171,182,668,51912.25
Core Capital412,223,449378,412,7508.9
Share Capital90,421,83184,792,1566.6
Total Revenue250,764,542235,913,5616.3

Source: Kewisco Sacco’s comprehensive Financial performance 

In accordance with its strategic plans, the Sacco aims to register for deposit-taking activities, particularly through the establishment of a Front Office Services Activities (FOSA) unit. This initiative seeks to simplify salary processing, offer loans based on salaries, and enhance loan recovery rates.

By implementing a FOSA unit, the aim is to streamline the processing of members’ salaries, offering a convenient avenue for members to manage their finances.

The Chairperson, mentioned that this streamlined process will not only benefit members by providing easy access to their funds but also enable the Sacco to offer loans based on members’ salaries. This approach to lending allows for more tailored and accessible credit options, empowering members to meet their financial needs efficiently.

Moreover, the establishment of the FOSA unit is expected to significantly improve loan recovery rates. By integrating salary processing with loan management, the Sacco can better assess members’ repayment capabilities and tailor loan terms accordingly. This proactive approach to risk management enhances Sacco’s financial sustainability while ensuring responsible lending practices.

 Corporate Social Responsibility

As a part of its Corporate Social Responsibility initiatives, Kewisco Sacco actively supports the less privileged in society and enhances recreational facilities for its members. Throughout the year, the Sacco has extended support to various initiatives, including providing games kits and footballs to the Kongoni Kenya Wildlife Service Football Club and at Kenya Wildlife Service headquarters and Sibiloi National Park.

Additionally, it has contributed water tanks to benefit communities at Mwingi and Mackinnon Stations, while also furnishing KWS Taveta station with a television set. Furthermore, the Sacco has played a role in improving sanitation facilities by assisting in the construction of pit latrines at Nkutoto Arus Primary School in Samburu County.

Moving forward, Kewisco Sacco remains dedicated to making a positive impact in society by continually improving the well-being and quality of life for individuals and communities across its areas of operation.

 

 

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