Ardhi Sacco is implementing a robust strategic growth plan to strengthen service delivery excellence and speed up growth.
In a new Strategic Plan document launched in February this year, the Sacco focuses on four pillars to optimize business growth and members’ transformation. These include operational excellence, customers service excellence, and people and governance excellence.
The blueprint covering the 2022-2026 period also seeks to rope in all Sacco shareholders and stakeholders to achieve the set targets. “Every member should play a part in the implementation, particularly through recruitment of new members since our strategic target is to have 8,500 new members by 2026,” said the Sacco National Chairman, Mr Jonathan Cheruiyot. New Ardhi Sacco members are eligible for a Karibu loan worth Ksh50,000.
“The Board of Directors and management shall subject the Strategic Plan to constant reviews and monitoring to ensure its successful implementation. I am confident with our vibrant Board, delegates, managers and dedicated staff we shall certainly deliver,” he added.
To remain competitive, Ardhi Sacco has adopted prudent business strategies that include: staying true to its core mandate of savings and credit, building a loyal and cohesive membership, introducing new attractive and customer-oriented products, improving operational systems, investing in Board, staff, and members’ education and training programmes and complying with all regulatory requirements.
The Society has also strengthened service delivery by embracing technology, which has enabled it to offer a convenient financial solution to members reliably. Last year, the Sacco launched M-Ardhi Loans, a product that has attracted many members patronizing it.
In addition, members have unlimited access to their accounts through Sacco’s mobile banking service (Pesa Pepe). Besides, members can access products such as Holiday Savings Account, Biashara account, Jazajaza Advance, and Instant Advance via the Sacco website, according to Mr. Cheruiyot.
“With technological growth comes cyber security risks, the Board has signed a contract with a Cyber Security company for daily monitoring of our systems,” said the Chairman. He was addressing the Annual Delegates Meeting this year graced by Nairobi Co-operative Director Dolphine Aremo, who praised the Sacco for commendable growth.
Mr. Cheruiyot said the Sacco systems are continuously upgraded to cope with new developments and changes in the industry. “We have also mitigated other risks by having proper insurance covers, ensuring that our members’ funds are safe and secure.”
With a network of 38 branches and units across the country, the Sacco is able to provide customized financial services closer to members, which have powerfully transformed their lives.
Ardhi Sacco recorded growth in the financial year ended 31st December 2021 despite a harsh operating environment that affected business and members’ patronage.
Annual reports and financial statements show that the Sacco’s total assets increased from Ksh2 billion in 2020 to Ksh2.18 billion in 2021. The Sacco loan portfolio grew by 5.19%, from Ksh1.6 billion in 2020 to Ksh1.73 billion last year.
The Society also succeeded in growing members’ savings and deposits, which increased by 10.8% to Ksh1.71 billion in 2021 from Ksh1.5 billion in the previous year. Mr. John Muthamia, the Sacco Chief Executive Officer, encouraged the 8,128 Sacco members to save more for high annual returns.
Members pocketed over Ksh101 million as dividends on shares and interest on deposits at a rate of five point five per cent. The Sacco turnover increased to Ksh254.69 million. At the same time, the Sacco maintained high liquidity far above members’ appetite for loans forcing management to invest in money markets and other profitable ventures.
“We urge members to apply for our affordable loans to meet their development goals. Our goal is to invest with our members to improve on their living standards,” he said, adding that the Sacco will introduce other loan products at an attractive rate.
Mr Muthamia said education and training programmes, which were significantly affected by the Covid-19 pandemic, are expected to resume fully this year, targeting Board, staff, delegates, and members.
Last year, Ardhi Sacco marked its Golden Jubilee celebrating major achievements since its inception in 1971. The Sacco, which is licensed and regulated by Sacco Societies Regulatory Authority (SASRA), has remained a solid pillar for thousands of members.
