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NewFortis DT Sacco continues to scale heights, thanks to strategic plan anchored on corporate governance

Failure to plan is planning to fail. This saying has kept NewFortis Deposit Taking (DT) Sacco board and management on toes to ensure efficiency and convenience in executing its mandate.

The Sacco has been operating on a three-year strategic plan, scheduled to end during the fiscal year 2023. The plan was anchored on key principles including corporate governance, sustainable service delivery, and capacity development among others.

For the last 47 years, since the society was initiated, NewFortis DT Sacco continued to operate within the limits of members’ needs and expectations, giving it a competitive edge in the financial sector, especially the co-operative movement.

The Sacco has been recording steady growth in key performance indicators including membership, capital base, Governance structure and infrastructure transformation over the years.

“NewFortis Sacco has continued to remain resilient despite economic challenges caused by dynamics like the COVID-19 pandemic, which also spilled over to 2022. We reported outstanding performance, only because of the continued support from members in terms of their patronage, loyalty and confidence in the Sacco products,” said the Sacco board of directors’ chair John Githinji.

Githinji spoke during NewFortis DT Sacco 47th Annual General Meeting (AGM) held in Nyeri on January 14, 2023.

Sacco membership

NewFortis DT Sacco membership growth trajectory remained positive for the last three years, according to the board’s report. In 2020, the society had 15,758 members – that number has been significantly growing and as of the end of the financial year 2022, the Sacco boasted of 19,729 members – almost hitting the 20,000 mark.

The Sacco operates on an open membership structure, drawing its members from government, civil servants, business community, individuals, groups and chamas.

As of December 30, 2022, about 943 NewFortis Sacco members had attained the millionaire status, after their deposits hit millions. Deposits grew from KSh 4.9 billion in 2020 to over KSh 6.3 billion compared to KSh 5.6 billion reported during the same period in 2021.

Members’ shares also increased to KSh 145.4 million up from KSh 129.2 million and KSh 117.9 million recorded in 2021 and 2020, respectively. NewFortis disbursed KSh 6.9 billion in loans to members, up from KSh 6.2 billion in 2021 and KSh 5.8 billion in 2020.

This saw member returns from the Sacco increase to over KSh 795 million in dividends and interest on deposits. The society paid dividends and interest on members’ deposits at a rate of 14% and 13%, respectively, during the year under review.

Governance

On matters governance, Githinji noted that NewFortis DT Sacco continues to embrace best practices that promotes positive organisational culture, that will span centuries.

The Sacco boast of a strong and professional management team that handles issues like cyber-attack and fraud, keeping members’ funds safe.

The chair cautioned members to be careful and wary of cybercrime activities that might jeopardise their savings in the Sacco.

“Avoid sharing your personal information on social media. Talk to the board, the management and we are to listen to you and offer the best solution,” he added.

The society also leverages Information Communication Technology (ICT) in its service delivery, enhancing seamless transactions involving ATM, mobile banking and e-loan services among others.

“The Sacco has put in place strategic interventions setting up self-regulating system –T24, which ensures efficiency in service delivery, meeting customer demands and expectations,” said Githinji.

Newfortis DT Sacco brought services closer to residents of Kitengela in Kajiado County and Thika in Kiambu County during the financial year 2022. The society boasted presence across major towns in the country and said it looks set to open more branches by the end of 2023.

The Sacco also leverages the Verve ATM services to ease member transactions including withdrawal, deposit, checking balances, mini-statements and making payments among others.

The meeting was attended by various leaders who applauded the society for great milestones achieved.

Kenya National Union of Teachers (KNUT) Secretary-General Nyeri branch Zachary Mathenge commended the Sacco for better performance and ensuring timely disbursement of teachers’ salary.

KNUT National chairman Karinga Munuhe urged new teachers employed to join the Sacco. The government announced it will employ about 30,000 teachers to help in spearheading the CBC curriculum.

Nyeri governor Mutahi Kahiga challenged members to patronise the Sacco products, take loans and empower their dreams through NewFortis Sacco.

“If you want what other people have you must do what other people do not do. NewFortis Sacco has uplifted the lives of many people, including myself,” said Kahiga.

Hustler Fund micro-loan through SACCOs

The chief guest, Co-operative and SME Development Cabinet Secretary Simon Chelugui applauded NewFortis for being compliant and meeting all regulatory requirements by the Sacco Society Regulatory Authority (SASRA).

Chelugui called on the members to patronise the Sacco products and empower themselves by engaging in farming activities, which the government is keen at supporting.

He confirmed that he will work closely with NewFortis and other Sacco’s to deliver a new product under the Hustler Fund loan facility worth KSh 100,000, targeting the subsector.

“Despite economic challenges, you have continued to record best performance. Keep it up. Being the first Sacco to hold an AGM in 2023 shows your commitment to serving members,” said CS Chelugui.

NewFortis Sacco achievements

NewFortis Sacco has been flying with colours in the co-operative movement, during key recognition events like the international Co-operative Alliance exhibitions and Ushirika. Here are society awards since its inception;

  • 1st position for the category of best capitalized in large category Sacco’s and highest interest paid on non-withdrawable deposits in the country-2018
  • 1st position on interest on non-withdrawable deposits at county level. -2018
  • Best both in Credit management employer based Sacco in tier one-2018
  • Best urban Sacco in credit on deposits-2018
  • 2nd highest on dividends paid by urban Sacco’s in the Country and third best in large -2018
  • Best capitalized in large Sacco’s in the country -1st 2017
  • Highest interest on non-withdrawable Deposits in urban Sacco’s in the country -1st Position 2017
  • Highest Dividend paid by urban Sacco’s in the country – 2nd Position 2017
  • Best in credit management in large category Sacco’s in the country -3rd Position 2017
  • Best managed co-operative in Kenya 1st Position, CAK 2014
  • Best managed Teachers Sacco in the country 1st Position 2014
  • lowest expenditure Sacco in the teachers Category countrywide 1st Position 2014
  • Best Capitalised Sacco in the country 1st Position 2014
  • Best loan services to members in the Teachers Sacco category countrywide 1st Position 2014
  • Highest average Savings in teachers Sacco Category in the country -3rd Position
  • Highest dividend rateÂÂ in urban Sacco Category in the County -1st position
  • Best Managed Sacco in the urban Sacco category in the county -1st Position
  • Highest dividend rate in teachers Sacco category in the country -2nd position

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