Cooperation among co-operatives
As the government moves to establish a shared platform for the co-operative movement, Sacco’s cooperation has continued to grow, new data shows.
Sacco Societies Regulatory Authority (SASRA) data shows that the financial investments component of the total assets increased from Ksh 36.97 Billion in 2019 to Ksh 56.86 Billion in 2020.
The balances held with other Sacco Societies increased from Ksh 16.84 Billion in 2019 to Ksh 27.16 Billion in 2020. They constituted the highest proportion of the total financial investments by DT-Saccos, accounting for 47.76% of the entire financial investments in 2020.
The financial investments were made up of investments in government securities, balances with other Sacco Societies, investments in companies, as well as other securities.
SASRA notes that the increase in the balances held with other Sacco Societies underscores the symbiotic relationship which DT-Saccos have or maintain with other Sacco Societies premised on the Co-operative Principle of cooperation among co-operatives.
The investments in government securities also increased from Ksh 0.59 Billion recorded in 2019 to Ksh 1.92 Billion in 2020. “The increase is commendable since government securities are general risk-free and also accounts towards the attainment of the liquidity ratio which DT-Saccos must maintain at all times,” says SASRA.
The investments in properties made up of land or buildings held by DT-Saccos for rentals or capital appreciation increased to Ksh9.89 Billion in 2020 compared to Ksh9.47 Billion recorded in 2019.
However, the most significant proportion of the investments in Property and Equipment (PPE) remains in property and equipment, which accounted for 47.74% of the total investments in PPE. The investments classified as “other assets,” which are usually susceptible to frauds, however, reduced to 18.89% in 2020 as a proportion to the total PPEs, compared to 33.57% recorded in 2019.
“This is commendable as it is evidence that more and more DT-Saccos as taking proactive measures to reconcile these “other assets” and reduce the potential of fraudulent activities using these assets, as well as present their true, fair and accurate financial position.”
