Tower Deposit-Taking Sacco has once again broken records with its remarkable half-year financial results. The Sacco achieved a 23% growth in revenue, surpassing Ksh1.8 billion by 30 June 2024, compared to Ksh1.47 billion in the same period last year. Additionally, its surplus rose by 20% to Ksh1.169 billion in the first six months of the year from Ksh975 million.
The notable revenue growth was driven by the Sacco’s impressive 21% increase in loan disbursements, which hit Ksh9.9 billion by 31 August 2024, up from Ksh8.2 billion in the same period last year. This exceptional growth has propelled the Sacco’s total outstanding loans with members to Ksh20.84 billion, up from Ksh17.42 billion.
During the Special General Meeting, the Sacco Chairman, Mr. Peter Ngugi, noted that the growth in the loan book was due to the offering of tailor-made credit facilities to meet the diverse needs of members. “All our loan products are effective, competitive, and affordable to members,” he said.
The outstanding growth of the loan portfolio has elevated the Sacco’s total assets, positioning it among the country’s well-managed and large-sized DT Saccos. The latest Sacco Supervision Annual Report 2023, released by the Sacco Societies Regulatory Authority (SASRA), ranks Tower Sacco as the fifth largest DT Sacco nationwide in terms of total assets, a significant improvement from its previous position at number 8.
By providing affordable and accessible loans, the Society has stayed true to its vision of being an accessible, universal Sacco of choice for excellent and vibrant economic growth.
The Sacco has remained committed to its mission of mobilizing and offering diversified sustainable financial products and services at competitive rates to uplift the socioeconomic standards of its members within the country and beyond.
Thanks to tailored solutions to meet the needs of members, Tower Sacco’s membership surged by 15% to reach 249,511 in eight months of 2024. The Sacco has a target of reaching over 346,000 members by the end of 2025
The Sacco’s share capital and deposits have also shown exceptional growth, reaching Ksh21.5 billion as of 31 August 2024 from Ksh18.2 billion in the same period in 2023, marking an 18% increase.
“We urge our members to embrace the savings culture to improve their socioeconomic standards. It is through continuous saving habits that one can achieve the desired financial independence,” emphasized Mr. Ngugi. Tower Sacco has introduced new savings products, such as the Holiday account, while also removing ledger fees for accounts.
The Sacco has embraced technology in its service delivery to members, who can access seamless financial services through various digital channels, easing congestion in branches. Over 70% of Sacco transactions are done digitally through mobile banking, agency banking, ATMs, and Internet banking. The Sacco management has enhanced cyber-security by procuring high-security systems.
At the same time, the Sacco has also extended its services across the country, ensuring it takes services closer to members. Mr. Ngugi said the Sacco intends to open three additional branches in Nyeri, Thika Makongeni, and Mau-Narok Mwisho wa Lami towns. Currently, the Sacco has over 25 branches across eight counties. The Sacco is banking unbanked people in counties such as Samburu.
As a basket for all members’ financial needs, Tower Sacco’s transformation goes beyond financial services. The Sacco has maximized members’ benefits by partnering with strategic organizations to offer green energy solutions through affordable financing, saving members from the high cost of energy. The Society also participates in environmental conservation activities, such as tree-planting exercises.
“Tower Sacco members’ welfare is our priority. Through Tower Tech Insurance Agency, we are offering our members affordable health covers,” said CPA Patrick Njenga, the Sacco CEO.
Dr. Nelson Kuria, former CIC Chairman, who was the chief guest at the event, lauded the Sacco leadership for upholding good governance. “All performance indicators point to a Sacco on the right track, thanks to members’ trust and confidence they have in the Sacco leadership and management. The Sacco is one of the largest not only in Kenya but in Africa. Tower Sacco’s growth, as highlighted by SASRA, has been phenomenal by all standards,” said Dr. Kuria.
