Imarika Sacco Ltd defied a tough business environment in 2022, punctuated with high commodity prices, to report higher performance and profitability margins in its major areas of operations.
The growth was epitomized by its asset base, which improved from KSh10.48billion in 2021 to stand at about KSh11.66 billion during the year under review, elevating the Sacco further up the ladder of the country’s wealthiest Deposit-Taking Societies.
Member deposits also recorded gains, increasing from KSh7.48 billion during the year under review from KSh6.54 billion a year earlier, representing a 9.2 per cent rise.
Total earnings rose from KSh1.706 billion in 2021 to KSh1.804 billion in 2022, representing a 5.74 per cent jump. The gain in earnings was attributed to interest on loans and advances-which increased from KSh1.437 billion in 2021 to stand at about KSh1.518 per cent, a 5.65 per cent growth.
Announcing the performance during its Annual Delegates Meeting, outgoing Board Chair Mr. Renson Ndoro said that its loan book jumped to KSh10.17 in 2022 compared to KSh9 billion reported a year earlier. He was particularly impressed with the PAR rate on loans which stood at 4.8 per cent against the permissible maximum of 5 per cent, which signifies improved Sacco’s liquidity.
Co-operatives and MSME CS Hon. Simon Chelugui was the chief guest during the function and commended the Sacco for its outstanding financial performance, highlighting its good governance.
“This Sacco has greatly deepened financial inclusion within the coast region, ensuring they empower people economically and socially. Being the first Sacco to start a Foundation demonstrates its leadership and management commitment to live up to the co-operative principle of concern for the community. I urge Saccos to be at the forefront in fighting retrogressive cultures,” he said.
Co-operative of Kenya Chief Executive Daniel Marube, while commending the Sacco for its significant contribution to transforming livelihoods, urged co-operative leaders always to uphold good governance and work for the benefit of members.
Kilifi County Co-operative Ag. Director Mary Mukare affirmed Imarika Sacco’s great contribution in transforming resident lives noting the Sacco stands at the top among over 302 co-operatives in the region.
Due to Imarika Sacco’s stellar performance, delegates approved a 14.5 per cent dividend on share capital, up from 14.0 per cent the previous financial year and an 8.0 interest rate on members’ non-withdrawable deposits, with members taking home over Ksh672 million as an annual payment.
Besides excellent performance last year, Imarika Sacco attained major achievements as it launched the ultra-modern Imarika Plaza, which significantly boosted its visibility in the region in its efforts to better customer experience.
The Society also increased its presence in the region by revamping and opening the Mombasa branch, Mariakani branch and Mpeketoni satellite office. With this in place, the rapidly growing Society is eyeing an increased membership and, in turn, capital base in its efforts to enhance savings mobilizations and extend affordable credit efforts to its members.
Mr Ndoro stated that digital transformation would remain the key driver in pursuing excellence in service deliver. The Sacco’s primary focus areas include the use of electronic channels such as mobile banking, MPesa services, Sacco agency, money transfer services and member loyalty programmes.
“In our concerted efforts to encourage members to save and grow their wealth, we shall be enhancing our approach to how we recognize highest savers in the Sacco to inculcate a saving culture,” he said. This, stated Mr Ndoro, will enable the Sacco to generate adequate deposits for its lending business which is one of the core mandates of the Society.
He challenged its more than 143,000 members to be good ambassadors by informing others on the existence of the services where they can deposit and make withdrawals.
He said that the creation of the Co-operatives and MSME Ministry with Cabinet Secretary Chelugui at the helm would drive the growth to greater heights.
“We will get immense support in many of the endeavours we had wanted the Government to assist the movement, including but not limited to the amendment of the co-operative act,” he said.
Other areas of intervention include the fast-tracking of the operationalization of the Sacco Central and the use of Saccos as intermediaries by the Government in areas such as the Hustler Fund.
“We are projecting better growth this year boosted by improved service delivery through the use of technology, members’ education and training, and provision of improved tailor-made financial products,” said the Sacco Chief Executive officer, George Ngala.
In its efforts to give back to Society, the Sacco formed the Imarika Foundation, which is at the heart of its Corporate Social Responsibility (CSR). It champions education and health programmes in the community where it operates.
It has taken a leading role in anti-jigger campaigns, eye camps and distribution of sanitary pads intending to improve girls’ learning outcomes, spending millions to make the activities a success. Other areas the Sacco has taken an active role include vocational training scholarships under Generation Kenya.
It has sponsored university students and enhanced computer literacy skills under the Digital lab, at Kibaoni Primary School. To date, Imarika Sacco has sponsored over 135 students who are currently in forms two, three and four. Of those who sat their 2022 KCSE, 12 qualified to join university education and will team with two currently at university. Forty-five students are undertaking various courses at technical and vocational training institutions. Besides, the Sacco has enrolled 105 on the youth empowerment programme under Generation Kenya, where they are enrolled in tailoring.
It has also donated food to the less fortunate members of the Society, notably at Ganze and Magarini, as it seeks to create a healthier society and, thus, a wealthier one. Mr Ndoro underscored the role of partnerships in enabling the Sacco to achieve its CSR objectives.
