19.9 C
Nairobi
Saturday, November 23, 2024
19.9 C
Nairobi
Saturday, November 23, 2024

Hazina Sacco pays high dividends, launches new Strategic Plan

Members of Hazina Sacco have once again earned high annual returns pocketing over Ksh988.2 million as payment of dividends on shares and interest on deposits following an impressive financial performance in the year ended 31st December 2022.

The total payout declared recently by the Sacco’s Board of Director’s during the Annual Delegates Meeting was a significant increase from the Ksh853 million paid in 2021. Dividends on shares were paid at the rate of 17%, and interest refund on deposits at 10.6%, placing the Society among the best performing co-operative societies offering high returns on investment.

Despite economic contraction fuelled by the general election last year, the Sacco registered a 15% growth in total income to Ksh1.51 billion, up from Ksh1.34 billion in 2021.

The Society’s total assets had a remarkable growth of 12.23% to over Ksh12.76 billion in 2022 from Ksh11.20 billion the previous year, improving its rating among the country’s largest deposit-taking Saccos. Currently, Hazina Sacco is ranked the 13th wealthiest DT Society nationally by the Sacco Societies Regulatory Authority (SASRA).

 Impressively, the loan book rose by 7.96% to reach Ksh8.82 billion in 2022 compared to Ksh8.17 billion in 2021 as the Sacco diversified and revamped its loan product portfolio, reviewing its credit policy and adopting best practices in the lending space.

Sacco members continued to embrace a savings culture which boosted the growth of total deposits by 13.25% to more than Ksh9.76 billion last year from Ksh8.53 billion in 2021. With the help of national government officials, the Sacco leadership put in place measures to reduce unremitted funds from employers, especially county governments, drastically reducing the amount from Ksh32 million to Ksh26 million.

“To ensure that the Sacco continues to deliver value to our members, we have focused on building a sustainable competitive advantage through maintaining a unique and competitive product portfolio, skilled manpower, strong corporate image, innovation, adaptability and diversified investments,” said Mr. Evans Kibagendi, Sacco National Chairman.

Enhanced service delivery, best customer care and an aggressive recruitment campaign saw the Sacco witness a positive trend in membership growth last year to 25,585, a 14% increase. Individuals and branches that recruited the highest numbers of members were recognized, rewarded, and celebrated during the 39th annual delegates’ meeting.

Having successfully implemented its 2018-2022 Strategic Plan that focused on membership growth, financial sustainability, and operational efficiency, among other areas, Hazina Sacco has grown by leaps and bounds, maintaining a strong financial position and sustainability and attaining operational efficiency.

The Sacco has greatly improved its ICT infrastructure, increased automation and launched digital products and strengthened its cyber security policy, according to Mr. Kibagendi. The Society’s leadership and management have transformed customer service through digitization and service automation.

 “Currently, over12,000 members are registered on the online portal enabling them to view and download statements and track loans and guarantorship,” said Mr. Kibagendi, adding that they have embarked on enriching the portal with more functionalities such as online loan application and guarantorship. “We are strengthening our systems given that the future belongs to digital transformation.”

Achievements

Hazina Sacco remains the leader in offering quality financial services. Last year marked the Sacco’s 10 years of its FOSA services, having made major strides in providing innovative financial solutions to members. “Our FOSA section has recorded tremendous growth owing to tailor-made financial services and competitive loan products of up to Ksh4 million,” said Mr. Kibagendi.

The exemplary growth has seen the Sacco expand, refurbish and relocate its satellite offices to strategic areas. These include Mombasa, Siaya and Vihiga offices, with plans to open a new office in Kitale town.

The Society was awarded a trophy and certificate for being the Most Efficient employer-based Sacco, Tier 1 category nationally during the 2022 Ushirika Day celebrations.

“The Society is committed to business integrity and professionalism in all its activities. We are dedicated to transform the lives of our members and communities,” said the National Chairman.

Last year, the Sacco donated over Ksh275,000 to St. Bernadette School for the Hearing Impaired in Turkana in the form of mattresses, blankets, bed sheets and sports items. Every year, the Sacco supports the needy and vulnerable in society through various corporate social responsibility programmes, including sponsoring bright and needy students.

Commissioner for Co-operative Development, Mr. David Obonyo and KUSCCO Group CEO, Mr. George Ototo, praised Hazina Sacco for being the epitome of good governance and providing innovative solutions to members.

The Sacco Chief Executive Officer (CEO), Mr. Dickson Okungu, noted that the overall performance was impressive, particularly on deposit mobilization, with the Society maintaining a high liquidity level.

“We are encouraging our members to come and take loans for the development projects. We have reviewed most of our loan products, increasing the repayment period for some and revising the loan multiplier upward to 4 and ½ of members’ deposits. This makes it possible for members to get higher amounts with a flexible repayment period, considering the current economic situation,” said Mr. Okungu.

Hazina Sacco is the best of destination for affordable credit facilities, our pricing of loan products is competitive at rate of one percent on reducing balance making them easily accessible to all. We are providing solutions for members’ social and economic empowerment,” he added.

Mr. Okungu noted that the Sacco is also supporting members to acquire homes through affordable financing and leveraging on digital solutions to drive growth and deepen financial inclusion.

New dawn as Sacco embarks on implementing a new blueprint

Hazina Sacco launched its new Strategic Plan 2023-2027 with a pomp and colour event graced by the Commissioner for Co-operative Development, Mr. David Obonyo.

The new road map outlines ambitious growth targets that will lift Sacco’s national status high while economically empowering members. 

The strategic themes for the new plan are business growth, operational efficiency and customer service, human resource management and corporate governance. “It is our firm belief that all actors led by the Board will play their rightful roles in ensuring successful implementation of the strategic plan and realization of the desired results,” said Mr. Kibagendi.

Vision: To be the leading Sacco in the provision of sustainable financial services

Mission: transforming members’ lives through resource mobilization and provision of competitive and innovative financial services.

Core Values: Integrity, Equity, Teamwork, Customer Focus, Professionalism and Innovation

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

110,320FansLike
33,000FollowersFollow
155,100FollowersFollow
- Advertisement -spot_img
- Advertisement -spot_img

Latest Articles

This will close in 0 seconds