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Tower SACCO unveils scheme for new financial year 2023

The financial strength a business possesses to meet its mandates and obligations including operations, withstanding market downturns, savings and investments, among others, lies in its asset base. A business with strong liquidity, the ratio of its debt to its assets, and its ability to generate cash flow can manoeuvre economic challenges such as the COVID-19 pandemic and its impacts.

This is what defined resilience experienced across the cooperative movement in Kenya. SACCOs were able to weather the impacts of the slow economic recovery, thanks to their strong liquidity. Tower SACCO is one of the societies that continued to record steady growth during the period under review.

Asset base

Tower Sacco's asset base for the financial year ending 31 December 2021 stood at over KSh 16.56 billion, representing 20.7% growth from KSh 13.72 billion reported in 2020. The society maintains its strategic plan that projects growth in Assets to KSh 30 billion by 2026.

“Despite the prevailing economic challenges the board and the management remained focused on the strategic plan of achieving KSh 30 billion by 2026,” said Tower Sacco board chairman John Gitundu, during the Special General Meeting (SGM), held on October 1, 2022.

Gitundu highlighted the Sacco’s performance within eight months ending 31 August 2022. The Sacco continued with its mandate of offering quick and affordable credits to members. Tower Sacco disbursed loans amounting to KSh 6.6 billion in the period up from KSh 5.5 billion reported during the same month in 2021. This represents an 18.4% growth in loans.

“We urge all members to continue patronising the Sacco credit facilities to help it meet its mandate and uplift the social economic standards,” said the chair.

The Sacco membership grew to 188,115 members, up from 168,539 members recorded at the start of the year 2022. The chair called upon members to continue being good ambassadors to the Sacco.

Ushirika Day awards

Share capital increased to KSh 15.4 billion in August 2022, compared to KSh 13.1 billion reported in August 2021. Turnover revenue grew to KSh 1.26 billion as of June 2022, up from KSh 1.09 billion, representing 14.3% growth.

Tower Sacco was amongst Saccos recently awarded by former president Uhuru Kenyatta for best and improved performance during the 2022 International Cooperatives day (Ushirika Day). The ceremony took place at Kenyatta International Convention Centre (KICC).

The society scooped position 1 Most Improved Deposit Taking (DT) Sacco nationally under Tier 1 Sacco categories.

Tower Sacco’s tremendous growth also comes about as a result of other factors like customer service. The society leverages various service delivery strategies to ensure convenience and efficiency.

One of these strategies includes alternative banking services such as Mobile Banking, ATM cards, Agency Banking, and USSD services. The services ease members’ service delivery and ensure convenience in account transactions.

“Majority of the transactions done by our members in 2021 were through these alternative banking channels. This shows the rate at which members have embraced the service due to its convenience and efficiency. We endeavour to leverage technology and innovation in our operations for efficient service,” said the Sacco chair during the Annual General Meeting held in January 2022.

Branch network

Tower Sacco also strives to reach out to members at their doorsteps, bringing services closer to them. The board of directors plans to open a new branch in Ruiru, to reach out to members in Kiambu county. Interventions are underway, and only await approval from the Sacco Society Regulatory Authority (SASRA).

The society opened a branch in Kariobangi in 2020, to serve residents of Nairobi county with financial needs. It has branches at Kwa-haraka, Naivasha, Engineer, Ol Kalou (Head Office), Gilgil, Nakuru, Nyahururu, Ndaragwa, Miharati, Mirangine, Maralal and looks set to bring financial services closer to members across the country. CSR and member support

The society draws its membership from all sectors of the economy, including the teachers’ fraternity, government, and private institutions, farmers, the business community, chamas among others.

Tower Sacco set aside KSh 1.8 million to empower the community by supporting needy students' access to education. Thirteen bright and needy students drawn from different parts of the country joined form one in 2022 through the program.

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