Sacco pays Ksh780M annual returns, asset base up 12,7% to Ksh10.3B.
Cosmopolitan Sacco is making headlines with its remarkable financial performance, delivering top-notch services to its members.
With its innovative and affordable credit options, the Sacco is helping its members transform their lives. At the recently held 44th Annual General Meeting, the Sacco reported impressive growth in all key market segments and total revenue of Ksh1.35 billion, boosted by increased interest income, reduced expenditure, and growing patronage of Sacco products and services by members.
The Sacco’s Board of Directors recommended a whopping 16% dividend and 12.03% interest on members’ deposits payout, totalling over Ksh780 million.
Cosmopolitan Sacco is truly putting a smile on its members’ faces with its outstanding financial solutions. The financial reports for year ending 31st December 2023 presented to members during the AGM show that the Sacco is on the right track.
One of the primary objectives of the Sacco is to provide credit to its members, which it has accomplished through enhanced processes ensuring prompt loan disbursements. The Sacco has introduced new products tailored to members’ needs and addressing current economic challenges. This has resulted in members receiving loans and advances amounting to Ksh8.18 billion, compared to Ksh7.54 billion in 2022.
One of the significant achievements of the Sacco is that it no longer has a loan backlog, according to Mr John Rukwaro, Chairman of the Board of Directors. Its members’ access to loans is quite fast, thanks to the introduction of new products and enhanced loan disbursement processes.
Members are also regularly trained to improve their financial literacy for wealth creation through various investment ventures. To enhance education, training and information sharing, the Sacco leadership has embraced digital education and partnership with key stakeholders such as counties and teachers’ associations and unions.
Cosmopolitan Sacco’s total assets grew by 12,7% to Ksh10.3 billion last year from Ksh9.1 billion in 2022, while members’ deposits rose 11.26% from Ksh7.34 billion in 2022 to Ksh8.17 billion in 2023. Impressively, withdrawable members’ savings registered a significant growth to reach Ksh1.93 billion, up from Ksh1.8 billion in 2022, despite economic challenges experienced in the country.
The Sacco’s membership stood at 34,127 at the close of the year, representing a growth of 22%. Its financial muscle continues to get stronger as it meets and surpasses capital adequacy ratios set by the regulator. The Sacco has endeavoured to follow the regulations and guidelines to the latter as provided by the Sacco Societies Regulatory Authority (SASRA).
“We appreciate members’ patronage of services and their confidence in the Sacco. We look forward to a brighter future and improved financial results in 2024,” said Mr Rukwaro.
Owing to its exemplary performance, the Sacco was crowned with various awards last year, including the Best in Credit Management Employer-Based Sacco, Most Efficient Employer-Based Sacco nationally, the Best-Managed Sacco in Nakuru County, and the Best in Nakuru ASK show. The Sacco is also in the process of establishing a foundation to promote community welfare.
Cosmopolitan Sacco has demonstrated its commitment to empowering its members through enhanced processes for faster and more efficient services.
“Technology is the way to go. We have embarked on the acquisition of our own private wide area network (WAN) by installing our masts in various strategic locations,” said the Board in the annual report.
“We appreciate members’ patronage of services and their confidence in the Sacco. We look forward to a brighter future and improved financial results in 2024” – Mr Rukwaro, Chairman
New Growth Plan
The Sacco’s 2024-2028 Strategic Plan centres on members’ empowerment and livelihood transformation. Under the blueprint, the management aims to enhance efficiency processes, strengthening innovation, employee competencies, satisfaction and governance systems.
The Board also targets growing the asset base to over Ksh22.5 billion, increasing total deposits by 30%, and increasing membership to over 59,000.
With eight branches and satellite offices strategically located in major towns in Nakuru and Narok counties, the Sacco rolled out agency banking to take services closer to people while enhancing its digital channels.
“Let’s unite and grow together! The Sacco is committed to utilizing technology and providing our members with the best possible credit facilities. We are always here to listen and provide all the assistance needed to help our members thrive,” said Mrs. Elizabeth Njoroge, Chief Executive Officer.
The Cabinet Secretary for Cooperatives and MSMEs Development, Hon. Simon Chelugui, who was the guest of honour during the AGM, commended the Cosmopolitan Sacco
leadership for its good governance and delivering excellent financial results. “The Sacco is a great example of how cooperatives can support their members’ financial growth, helping them to save and invest for the future. I pleased to learn that the Sacco has been providing affordable credit to members,” he said.
Hon. Chelugui pointed out that the Cosmopolitan Sacco has come a long way since its humble beginnings in 1977 as a small Sacco of just 46 teachers. It has grown into a giant with over 34,000 members today. He emphasized that cooperatives are essential vehicles for capital mobilization, which is crucial for the country’s development. “The cooperative business model is unique in that it aggregates both human and capital resources, and this has informed the government’s Transformation Agenda, which aims to uplift the livelihoods of Kenyans at the bottom of the economic pyramid.”
“Let’s unite and grow together! The Sacco is committed to utilizing technology and providing our members with the best possible credit facilities. We are always here to listen and provide all the assistance needed to help our members thrive” – Mrs. Elizabeth Njoroge, CEO.
There are over 29,300 registered cooperatives in Kenya, with a membership of over 14 million, commanding an asset base of over Ksh 1.5 trillion, which accounts for 30% of Kenya’s annual savings.
Cosmopolitan Sacco is among the leading DT Saccos and has remained competitive, sustaining a lead in the market by adopting modern strategies, creating a good environment for customer interaction, embracing digital banking, and providing customer-centric services.
The Sacco’s success can be attributed to good governance, innovation, openness to change, sound financial management, and responsiveness to members’ needs and expectations. These factors have propelled Cosmopolitan Sacco to new heights of growth while maximizing members’ benefits. Sacco has fostered financial inclusion by diversifying its membership and improving its savings culture by digitalising its products.
- TOTAL ASSETS KSH 10.29 BILLION
- TOTAL DEPOSITS KSH 8.17 BILLION
- LOAN BOOK KSH 8.18 BILLION
- TOTAL REVENUE KSH 1.35 BILLION
- DIVIDENDS 16%
- INTEREST ON DEPOSITS 5%
Empowered and Transformed Members’ Lives
We empower and transform lives through innovative and quality financial solutions that satisfy the diverse needs of our members
- Customer Focus
- Integrity
- Teamwork
- Innovation
