Improved service delivery and innovative and affordable loan products boosted the Centenary Sacco loan portfolio in the financial year ended 31st December 2023 as the Society continued to empower members socially and economically.
The Society advanced a total of Ksh547.35 million in loans to members last year to facilitate their development agenda. “We have continued lending our loans at the rate of 1%per month on reducing balance. The demand for our loans continued to grow throughout the year,” said Mr. Henry Mathiu, the former Sacco vice-chairman who read the Board of Director’s report during the annual general meeting.
He said the Sacco had instituted measures to lower non-performing loans while ensuring that the loans were disbursed on time to members. The Sacco has made it easier for members to access loans against their deposits or use collateral as a security subject to the by-laws.
The Sacco liquidity ratio improved to 47.19% as of the year’s close, boosted by increased savings and members’ confidence in the Society.
“We are requesting our members to patronize the Sacco’s credit facilities to utilize the cash for the growth of the Sacco,” said Mr. Mathiu.
Overall, the Sacco registered an improved financial performance last year to maintain a healthy financial status while meeting and surpassing capital ratios as required by the Sacco Societies Regulatory Authority (SASRA).
The exemplary financial performance saw members earn dividends on FOSA and Pepea shares at 11% and interest on deposits at 9%. The Sacco is projecting increased growth this year that will see members’ return on investment grow.
The Sacco total assets posted a significant growth jumping from Ksh1.29 billion in 2021 to reach Ksh1.32 billion last year, while the total members’ deposits grew to Ksh957.5 million from Ksh955.4 million in 2021. The net loans and advances stood at Ksh818, while the total revenue rose to Ksh190.5 million. The total membership grew seven percent to reach 49,832, with the Sacco management intensifying its recruitment drive through aggressive marketing and providing innovative products.
The Society has adopted a new approach to members’ education programmes. Members are visited and educated at their workstations, churches, and farmers’ forums, and their concerns are addressed. “We will continue to invest in education our members to assist them in managing their personal finances better and invest wisely,” said the Board.
Centenary Sacco has fully embraced alternative banking channels to enhance convenience in accessing Sacco services and reduce expenses. These include providing members with Sacco link ATM cards, enabling them to access their money in all Visa-branded ATMs, and opening agency banking to take services closer to members.
Currently, the Sacco has 15 agents at Kangeta, Maua, Nkabune, Makutano (Tharaka), Makutano (Meru), Kinoro, Chogoria, Kanyakine, Nkubu, Mikinduri, Nchiru, Kionyo, Chaaria, Kathwana and Mitunguu. The management targets over 70 agents by next year.
In addition, the Sacco mobile banking solution – M-Centenary – has succeeded due to its convenience and safety. Using the USSD code *477#, members can access various services anytime and anywhere. Members can also use pay bill number 700300 to deposit.
“The mobile banking activities increased tremendously last year. We are planning to launch an online loan facility,” said Mr. Mathiu. In partnership with the Family bank, the Sacco provides members with personalized chequebooks.
Under Centenary Foundation, the Society has sponsored 18 students to various secondary schools and eight students to various universities.
The Sacco’s new Chairman, Mr. Joseph Magambo, expressed optimism that the Sacco will achieve its Strategic Plan targets.
In an interview with Co-op News, Mr. Magambo said he would strengthen teamwork to create synergy for seamless operations.
“Our goal in the Board is to take the Sacco to greater heights to ensure members get all their financial needs timely and earn higher returns on their investment. We want to grow our dividends rate by two digits,” said Mr. Magambo. He called on members to patronize Sacco loan products for prosperity.
He said the Sacco, which has five branches, will be opening a new office in Timau with plans also in place to spread wings to Embu and Isiolo, where it has members.
“I will work with everyone for the growth of Centenary Sacco. As a Sacco we will walk with everyone, ensure every member is well catered for in the Sacco. We must grow together,” he said.
