Tower Sacco had a remarkable financial year, with its surplus increasing by 35% by the end of 31st December 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.
This positive financial performance was music to the ears of members who received a total payout of Ksh1.99 billion as annual returns. The Sacco maintained its high dividend rate on shares payment at 20% and 13% on interest on deposits.
Tower Sacco also achieved impressive growth in its loan disbursement, defying the economic slowdown with a 28% increase. The Sacco disbursed loans worth 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. This growth was due to the Sacco’s diversified, tailor-made, and affordable credit facilities offered to its members. There was a notable decline in bad loans during the year under review.
Consequently, the Sacco’s total assets experienced a significant growth rate of 19% last year, rising from Ksh19.6 billion in 2022 to over Ksh23.2 billion due to members’ loyalty and good corporate governance. The Sacco Board has set a target of Ksh80 billion in total assets by 2030.
“With a solid strategy in place and a team of dedicated professionals, we have been able to navigate through the uncertainties and emerge stronger than ever. Our commitment to providing top-quality services to our customers, coupled with a focus on innovation and efficiency, has enabled us to achieve impressive results,” said Mr Peter Ngugi, the Sacco Board of Directors Chairman. He spoke during the Sacco’s 48th Annual General Meeting.
Members’ share capital and deposits also had a stellar growth of 18% to reach Ksh18.8 billion in 2023, up from Ksh15.9 billion in 2022, boosted by a 21% membership growth to 225,933, from 186,065 a year earlier. The largest percentage of the membership (103,106) are aged 35 and below, pointing to Sacco’s success in attracting young people.
“The Sacco endeavored to achieve the mission of mobilizing, offering diversified, sustainable financial products and services at competitive rates to uplift social-economic standards of members,” said Mr. Ngugi.
The Sacco has built a loyal membership countrywide through extensive training and education of its members, as well as excellent customer care.
It has over 25 modern branches spread across eight counties, with the Sacco management also investing in robust ICT systems, providing members with access to services anytime and anywhere. Members can enjoy the convenience, speed, security, and affordability of Sacco agency, Visa ATM cards, mobile banking, and online Internet banking.
Tower Sacco has also improved customer experience and established a call centre to promptly respond to members’ queries.
The Sacco theme for the year is to positively impact its members’ lives through affordable and diversified credit facilities that promote growth. According to Mr Ngugi, Tower Sacco has achieved many milestones through initiatives focusing on education, homeownership, healthcare, agriculture, business growth and development, construction, and movable assets and machinery acquisition. Mr Ngugi promised better services to their members.
The Sacco has a partnership with AAR Insurance Company to provide health covers at subsidized premiums under its Tower CAARe Health Scheme.
Through Corporate Social Responsibility (CSR), the Society has sponsored 33 students and played a pivotal role in environmental conservation and mitigating climate change through tree planting programs.
Nyandarua Governor Dr. Moses Kiarie Badilisha said Tower Sacco has catalyzed the county’s development agenda. “The Sacco is our county treasure. It has become a financial pillar for thousands of people eager to implement various development projects from business to farming,” he said.
“The Sacco endeavored to achieve the mission of mobilizing, offering diversified, sustainable financial products and services at competitive rates to uplift social-economic standards of members” – Mr. Ngugi, Chairman.
Over the years, Tower Sacco has exponentially grown into a giant financial institution with a high liquidity level to meet members’ financial needs.
The Sacco has continually complied with all prudential standards as per the Sacco Societies Regulatory Authority (SASRA) requirements for registered deposit-taking Saccos.
According to the CEO, Mr. Patrick Njenga, Tower Sacco is committed to supporting its members’ growth from one financial level to another. “We believe that by positively impacting individuals’ lives through reliable affordable credit facilities, money management and education, Tower Sacco can change the world economically, one step at a time. This is why Tower Sacco is considered the best,” he said. Billed as a one-stop shop for all members’ financial needs, Tower Sacco has lived up to its reputation.
