The Sacco posted 20% growth in loan book as revenue hits Ksh1.13B.
Amica achieved impressive financial results in 2023, with its Board of Directors optimistic about steady growth this year driven by the Sacco’s commitment to excellence and prudent financial management.
In 2023, the Sacco registered a 20% jump in loan uptake, expanding its loan book to Ksh6.5 billion. This remarkable growth highlights the Sacco’s innovative approach to offering tailored and affordable loan products to members for social and economic empowerment.
The total revenue rose by 10% to Ksh1.13 billion in 2023, compared to Ksh1.03 billion in 2022. Members received improved annual earnings from their investment in the Society. The Board announced payment of dividends on shares at 5%, interest on Investa Deposits ranging from 6 -10 per cent and rebates on Amica Ventures varying from 5 – 9 per cent.
Mr Hezron Maina, the Sacco Board Chairman, noted that they are anticipating growth in the Sacco’s profitability this year driven by enhanced member management and increased demand for short-term loans.
“We’ve crafted a robust roadmap for continued success. Our strategic pillars- planning, monitoring and continuous improvement- provide a firm foundation to navigate the evolving financial landscape. We’re confident in achieving steady growth this year,” said Mr Maina. He spoke during the Sacco’s annual delegates meeting.
The Sacco projects to grow its membership by 15,000, increase the share capital by Ksh150 million and raise revenue to Ksh1.4 billion this year.
“By enhancing customer experience, improving short-term lending, embarking on targeted selling and prudent loan management, we hope to take Amica to new heights of success in 2024 and beyond,” said Mr Maina.
Under the new Strategic Plan 2024-2026, the Sacco Board envisages growth of total assets from Ksh7.2 billion to Ksh12 billion and increase income to Ksh1.8 billion by December 2026.
Amica registered a five per cent growth in membership in 2023 to reach over 8,800, lifting deposits by 11% to Ksh5.44 billion from Ksh4.89 billion in 2022. The Sacco’s Daily Field Services program has played a significant role in mobilizing savings by enabling members, especially those running micro and small businesses, to save more conveniently.
“This exemplifies our core values of innovation and simplicity by bringing our services closer to members, particularly through daily savings, digital channel applications, account openings and enquiries,” said Mr Maina.
The Sacco opened five service centres in strategic towns that offer members non-cash services like business development support. “This innovative approach brings Sacco services closer to members, fostering growth for both individuals and the institution. We plan to have more of these outfits in highly populated regions within our areas of operation or where we have prospects of future expansion,” said Mr Maina.
Amica has also been renovating its branches to enhance customer experience and satisfaction and reinforce loyalty and brand visibility. The Sacco Societies Regulatory Authority (SASRA) has approved the opening of Amica’s new branch in Gatura town.
Additionally, Amica took a bold approach in enhancing its management team to steer the Sacco towards achieving its growth targets.
Under the new blueprint, Amica plans to enhance its business development initiatives, relaunch products, embark on aggressive promotional campaigns, segment customers to offer tailored products and services, automate lending operations and digitalize credit services and document management. The Sacco also intends to re-engineer its borrower relationships management.
“We are at the advanced stages of automating our lending operations, which will help us grow a quality loan portfolio, enhance efficiency, turnaround time and standardization of all credit processes,” said Mr Maina.
The Sacco has achieved milestones in embracing technology to deliver services with over 60% of transactions done digitally. Over 89% of deposits were mobilized through the Sacco’s alternative channels, such as paybills 4298298 and 162180, Amicash mobile channel and Amicash agents. Amica Visa ATM cards, Amicash mobile, Amicash agents, cheques and RTGS accounted for 66.4% of the Sacco’s total withdrawal transactions in 2023.
Amica also introduced a website portal that allows members to access their account information 24/7. It has stayed ahead of the curve in the ever-evolving digital landscape in the financial market.
Besides offering financial services, Amica has been supporting students through coaching and equipping them with life skills under the pre-university program that targets top students from day schools awaiting to join universities. They undergo a three-month mentorship program preparing them to navigate life challenges. Thirty-one (31) students were mentored last year, and 40 are currently enrolled in the program.
“We offer innovative, affordable and accessible financial solutions to our members for their socioeconomic well-being. Amica also remains committed to enhancing the reliability and security of our alternative banking channels to ensure members enjoy secure and convenient services all the time,” said Dr James Mbui, the Sacco CEO.
He said the Sacco is focusing on redefining its credit strategy, focusing on short-term loans, diversification and digitization.
“Our growth strategy revolves around innovation, resilience and leveraging technology for operational excellence. We are also prioritizing robust cyber-security measures to safeguard sensitive data and ensure the integrity of our systems,” said Dr Mbui.
