Savings and Credit Cooperatives (Saccos) performed exceptionally well in the financial year 2023 despite the economic slowdown and reduced household income. These cooperatives are becoming increasingly popular due to their unique financial products and services that provide a safety net for Kenyans during uncertain economic times. Saccos lead in serving low-income communities and are seen as a reliable financial partner for thousands of Kenyans.
Saccos have remained resilient with an upward growth trajectory, as seen in the audited financial statements presented to members during the annual general and delegates meetings. For example, Newfortis Sacco, among the first to declare its financial results for 2023, recorded an improved annual turnover of Ksh1.45 billion, up from Ksh1.38 billion in 2022. Its loans outstanding with members rose from Ksh6.92 billion in 2022 to Ksh7.68 billion in 2023, while non-withdrawable deposits grew to Ksh7.05 billion in 2023 from Ksh6.3 billion in 2022.
Despite the economic slump, increased taxes, and levies that weakened members’ borrowing power, Newfortis Sacco disbursed Ksh4.08 billion in loans and advances to members in 2023. The Sacco’s Total Assets also surged to over Ksh11 billion as of December 31st, 2023, from about Ksh10 billion a year earlier. The impressive growth translated to improved annual returns for members who received Ksh901.9 million as dividends on share capital (14%) and interest on deposits (13%), an increase from Ksh795 million in 2022.
In Kerugoya, Ollin Sacco reported a significant growth in 2023, with gross revenue surging by 17.2% to Ksh1.37 billion. This was boosted by a 16.3% increase in its diversified portfolio to Ksh7.73 billion. As a result, members earned a 17.5% rate on dividends on shares and 12.2% interest on non-withdrawable deposits. The Society’s total assets grew by 21.42% to Ksh9.95 billion in 2023.
Tower Sacco’s financial performance was boosted by affordable credit facilities, increasing its surplus by 35% in 2023 to Ksh2.4 billion. The Sacco’s total revenue also saw a significant increase of 22%, rising from Ksh2.86 billion in 2022 to Ksh3.49 billion. Members earned a total payout of Ksh1.99 billion as annual returns at 20% dividend on shares and 13% interest on deposits.
The Sacco’s loan disbursement soared with a 28% increase to reach Ksh12.51 billion last year, compared to Ksh9.77 billion the year before, growing its gross outstanding loans with members to Ksh18.08 billion in 2023. The Sacco also had a notable decline in bad loans during the year under review. Tower Sacco also invested in government securities worth Ksh1.5 billion.
In Kericho, Ndege Chai Sacco promoted prudence among members, enabling them to accumulate more savings and access affordable loans to execute various development projects. As a result, the Society’s total revenue increased to Ksh823.8 million. Its loan and advance uptake steadily grew, with the loan book rising to Ksh3.58 billion in 2023 from Ksh3.14 billion in 2022. With excellent results, members received over Ksh 328.6 million in annual payouts, receiving a dividend of Ksh20 per 100 shares, an improvement from Ksh15 in the previous year. Additionally, they received 10.5% interest on their deposits. Total assets increased from Ksh4.27 billion in 2022 to Ksh4.86 billion at the end of 2023.
Mentor Sacco reported a 16.5% increase in annual dividend returns to members (15%) and rebates (12.4%), totalling Ksh1.183 billion. Based in Murang’a, the Sacco witnessed an overall performance improvement, with its total revenue rising from Ksh1.54 billion in 2022 to Ksh1.83 billion in 2023. Loans and advances, which constitute over 80% of the Sacco’s business, grew marginally by 12%, leading to an expansion of the loan book to Ksh9.86 billion in 2023.
During the year, the Sacco granted loans and advances worth Ksh8.15 billion. However, the loan uptake was slower than the previous year when the Sacco reported a 16% growth in loan disbursement. This points to economic distress and reduced household incomes.
Ports Sacco, which recently rebranded, also announced an attractive annual return for its members: a dividend rate of 20% and 12.5% interest on deposits, resulting in a total payout of Ksh650 million. The SACCO’s turnover grew by 14.9% to reach Ksh1.208 billion in 2023, primarily due to the growth in its loan portfolio, which increased by 21.5% to Ksh5.99 billion. The SACCO’s core business expanded by 9%, with the back-office operations (BOSA) growing by a good margin of 17.5% – double the previous year. Impressively, its liquidity ratio stood at 236.90% in 2022, and members’ deposits rose by 7% to Ksh5.3 billion last year.
Solution Sacco’s member deposits grew by 17% to Ksh 6.15 billion in 2023. The Sacco’s total revenue rose 8.1% to Ksh 1.73 billion in 2023 due to improved business and strong demand for credit, which grew by 11.9% to Ksh 7.65 billion in 2023. The leadership announced a dividend payout of 15% and a payment of interest rebates on members’ deposits at 12.5%.
In Nakuru, the Cosmopolitan Sacco had an outstanding year in terms of financial performance. It posted a total revenue of Ksh1.35 billion, with members receiving over Ksh780 million as dividends (16%) and rebates (12.03%). The Society’s loan book rose to Ksh8.18 billion, and management reported no loan backlog. Its non-performing loans remained far below the recommended threshold of 5%.
Simba Chai Sacco’s roaring success has been remarkable over the last five years. In 2023, its total assets grew to Ksh1.99 billion, with loan disbursements and revenue increasing across all service channels. The loan portfolio reached Ksh1.5 billion, and non-performing loans decreased significantly, boosting the surplus by 10%. Members got dividends on shares and interest on deposits at 10.5%, amounting to Ksh100 million.
Kenya Highlands Sacco’s loan book grew by 28% in 2023, with total revenue up 28% to Ksh810.8 million. Members’ take-home pay increased by 18.3%. Dividends on Shares were paid at 15%, while non-withdrawable deposits received a 13.8% interest rate. Bad debt slightly increased, and the loan book stood at Ksh4.33 billion in 2023 compared to Ksh2.58 billion in 2022.
Yetu Sacco also featured in the list of the best performing cooperative institutions paying out dividends at 19% and 13% in interest on deposits, totalling over Ksh350 million. Its revenue swelled by 16.5% to over Ksh919.9 million. This was due to increased loans and advances, which grew by 20.8%, expanding the loan book to over Ksh4 billion. Members’ deposits also grew by 25% to Ksh4.05 billion in 2023.
Winas Sacco experienced remarkable growth with the help of affordable lending to its members, posting Ksh1.91 billion in revenue. Shareholders received 16% dividends, and deposits earned 12.5% interest. The balance sheet expanded by 15%, reaching over Ksh11.2 billion. The Sacco loan book grew by 9.2% to Ksh10.6 billion.
Tier four Acumen Sacco experienced growth in 2023, with total assets growing by 11% to Ksh448 million and a marginal expansion in the loan book to Ksh332 million. The Sacco distributed Ksh4.8 million as annual returns, with members receiving dividends on shares at 15%. Delinquency loans remained steady at 6.3%.
Univision Sacco, formerly Kitui Teachers’ Sacco, reported a 14.6% increase in its asset base to Ksh 10.1 billion in 2023 from Ksh 8.8 billion in 2022. The Sacco paid 12% interest on deposits and 14.5% dividends on share capital due to the improved financial performance.
Nation DT Sacco reported an improved surplus of Ksh116.84 million in 2023 up from Ksh112.58 million in 2022. Consequently, members received dividend on share capital at 20.0%, up from 18.0% in 2022 and Interest on deposit at 11.0% (9.5% in 2022).
Times U Sacco reported over Ksh47 million in annual member returns, with dividends on shares increasing from 9% to 11%. Harambee Sacco announced a net surplus of KSh 804.6 Million and paid dividends of 12 per share.
Kenya National Police DT Sacco posted a net profit of Ksh2.5 billion and paid members a dividend of 17% and interest on deposits of 11%. Unison Sacco paid dividends on shares at 17%.
Hazina Sacco’s revenue grew by 17.21% to Ksh1.77 billion, announcing a 17% dividend payment and 10.8% interest on deposits. Other Saccos that paid high dividends on share capital include Magadi (20%), Golden Pillar (11%), and Suluhu (17%).
