GDC Sacco is eying to join the league of the country’s elite Saccos with a projection to grow its total assets to over Ksh5 billion this year for elevation to the Tier 1 category.
The Sacco leadership and management are formulating a new strategic plan focusing on enhancing growth and strengthening effective and efficient service delivery to bolster business increase.
Mr Joseph Gitau Mburu, the Sacco Chairman, while addressing the 20th Annual General Meeting, said the Board had made deliberate efforts to strengthen the Sacco’s capacity to raise share capital, enabling GDC to tap into the presenting opportunities.
“We are in the process of introducing more digital products to ensure our members receive more credit services through mobile banking as we ensure robust and effective risk management practices,” said Mr. Mburu.
Under its 2020-2022 Strategic Plan, the Chairman said GDC Sacco undertook a comprehensive transformational journey centred around processes, enhanced technology, people capabilities, risk management and compliance, keeping abreast with the rapidly changing financial market.
The Sacco has been focusing on realigning technology and business, effectively harnessing technological disruptions to its best advantage.
“With the digital push and innovations in technology, the share of digital transactions has gone up as members have embraced utilization of our Paybill, Mobile banking, Business Till numbers and internet banking. This has improved productivity and efficiency while providing safe, secure and convenient banking facilities to all members,” said Mr Mburu.
With the growth of its agency banking and registration of members to its mobile banking platform, GDC is on the tail end of full digitalization, strategically positioning itself in the present competitive financial sector.
Mr Mburu assured members that the Sacco established effective monitoring mechanisms and strengthened internal controls to prevent fraud.
GDC Sacco braced a tough economic environment to post excellent financial performance in the financial year ending December 31st, 2022. The Sacco’s gross turnover registered an impressive growth of 25%, rising to Ksh525.98 million in 2022 compared to Ksh420.19 million in 2021. Consequently, members received over Ksh141.44 million in annual payments, earning dividends on shares at 12.5% and interest on members’ deposits of six per cent.
The total assets jumped by 18% to Ksh 4.25 billion last year, up from Ksh3.58 billion in the previous year, driven mainly by a significant rise of the Sacco’s loan book from Ksh3.09 billion in 2021 to Ksh3.58 billion in 2022, a 16% growth.
Innovative and affordable loan products, which have greatly supported economic empowerment among the Sacco members, will greatly support its ambitious target of growing the asset base.
The Society recorded a 15% rise in members’ deposits to Ksh3.136 billion in 2022 from Ksh2.653 billion a year earlier, while the membership grew by 13% to reach 30,170.
“Good governance practices coupled with members’ loyalty have accelerated our Sacco’s financial growth,” said Mr Mburu.
He Sacco through continuous refinement and improvement of the risk measurement and management systems, GDC Sacco aims to ensure regulatory compliance and better returns and utilization of capital in line with business objectives.
Guided by teamwork, equity, professionalism, courtesy, dedication, integrity, innovation and creativity core values, GDC Sacco has continued to set the bar high only 20 years after its establishment.
Last year, the Society was honoured with four national Ushirika Day awards, including the best in savings management, best in credit management, 2nd most improved Sacco and 2nd best managed deposit-taking Sacco in the agricultural-based category.
The Sacco also launched the Githunguri Dairy and Community Foundation, strengthening its contribution to the community to alleviate poverty and improve social welfare. The foundation’s key goals and focus are centred on five strategic thematic areas, including economic empowerment for the needy in society, Promoting education, Achieving clean and sustainable energy in the community, Boosting Dairy breeds and Nurturing talents among the youth.
“GDC Sacco is committed to integrating social and environmental concerns in its business operations. The main area of focus for this foundation is to ensure we upgrade the dairy sector by ensuring high-quality breeds through the provision of sexed semen in partnership with GDFC Society,” said Mr Mburu.
He said 1076 cows had been inseminated, and the first batch of calving was expected in March this year; during the foundation launch, 10 cows worth Ksh150,000 each were given to members.
“The Foundation management is evaluating strategic avenues for Corporate Social Investment (CSI) expenditure especially on climate and sustainable energy to deliver maximum impact to the community,” said Mr Mburu.
Established in 2003, GDC Sacco remains a competitive financial institution with good governance and prudent management structures that have ensured it regularly participates in members’ and communities’ empowerment programmes.
“We are one of the biggest Saccos in Kenya, serving members even in the diaspora. We are certain that we will attain the Tier 1 status which comes with many benefits for the growth of the Sacco,” said Mr Charles Kioko, the Sacco Chief Executive Officer (CEO).
He noted despite economic hardships experienced by members, the Sacco continued to serve them well by restructuring some products to meet members’ financial needs adequately.
