Boresha Sacco soared above the economic challenges witnessed in the country to register a sterling performance in 2022, positing Ksh1.4 billion in total revenue, while total assets jumped 11% to Ksh9.903 billion.
The stellar financial growth translated to high returns on members’ investment in the Sacco, getting a total payment of over Ksh505.1 million as dividends on share capital at a rate of 13%, rebates on members’ deposits at10%, and bonus on equity shares at nine percent.
During the 32nd Annual Delegates Meeting (ADM), a mega event which marked the Sacco’s 46 years of existence, graced by the Mr. Simon Chelugui, Cabinet Secretary for Cooperatives and Micro, Small, Medium Enterprises (MSMEs) Development, the Sacco Chairman Mr. Albert Chebiegon said Boresha remains on an upward trajectory while fulfilling enormous demands and expectations from members and community at large.
“Boresha Sacco is a trailblazer, living true to its vision of being a financial provider of choice. Its growth into a great institution points to its leaders’ honesty, integrity and patience. The Sacco has changed the face of Baringo county by putting up modern buildings,” said Mr. Chelugui, adding, “My mother is a member, and beneficially of Boresha Sacco, I have never heard a complaint which tells the Sacco offers excellent services. Today I will be registering as a member.” The CS said Boresha had played a leading role in developing Hustler Fund Micro-Credit products, which will be channeled through Saccos.
The Society’s total assets grew from Ksh8.95 billion in 2021 to Ksh 9.9 billion in 2022, primarily driven by a steady rise in loan demand that saw the gross loan and advances portfolio increase from Ksh7.098 billion in 2021 to Ksh8.04 billion in 2022, a 14% growth.
The Sacco offers bespoke financial and affordable loan products, significantly contributing to members’ economic empowerment, many of whom are now running successful business ventures.
Members’ savings and deposits surged by 11% to reach Ksh6.89 billion last year compared to Ksh6.206 billion a year earlier, with over 217 members growing their deposits above Ksh1 million. The Sacco has made deliberate measures to mobilize deposits from members through business and school fees collection paybill, FOSA savings/deposits and fixed deposits, which earn interest of 12% for any amount above Ksh 20,000.
The Sacco also maintained a healthy financial position as the share capital posted a 12% rise to Ksh575.6 million in 2022. The management encouraged members to grow their shares, which earned high annual returns.
“Last year, a total of 4,301 new members were recruited, placing our current membership to 75,389, up from 71,088 in 2021. The Sacco has continued organizing members’ education and training forums where various financial experts train them on stress and financial management and give proposals towards improving the Society,” said Mr. Chebiegon. He noted that the Sacco also organizes delegates’ training and benchmarking tours to various Saccos nationwide.
Mr. Chebiegon thanked President William Ruto for creating a stand-alone co-operatives ministry, which he noted will promote the movement’s growth. “Boresha Sacco fully supports government initiatives to empower the community at large economically. We look forward to more robust engagement with the Ministry to ensure we fulfill our mandate to the people we serve,” he said.
Boresha Sacco, headquartered in Eldama Ravine, Baringo County, has an open membership serving salaried members comprising of teachers of all levers, Ministry of health staff, county governments employees, civil servants, Kenyans in diaspora and private firms employees. It also serves non-salaried members, including individual business communities, Micro, Small and Medium Enterprises and farmers.
The Sacco has intensified its recruitment campaign by introducing a yearly reward scheme for the highest recruiters.
At the same time, the Sacco has revamped its micro-credit department in response to the market needs and dynamics, developing new market-driven products and refining the existing ones. This is set to enhance members’ satisfaction to attract and retain members’ loyalty.
“We are encouraging members to channel proceeds from their farming activities, business, rent and others through the Sacco to maximize their credit score,” said Mr. Jacob Mengich, Sacco’s Chief Executive Officer. While noting the Society’s portfolio at risk had significantly reduced, the CEO urged members to repay their loans as scheduled to grow income and, consequently, high annual returns.
Technology and Innovation
Boresha Sacco focuses on improving efficiency by leveraging technology to achieve seamless processes and enhance efficiency in service delivery.
“More products and services will be pushed to mobile platforms. Currently, members can access salary and dividends advances through M-Boresha and statements and dividend reports via member’s self-service portal (X-Mobi),” said Mr. Mengich.
The Sacco is keen to go digital to innovatively and conveniently serve members while taking robust measures to mitigate risks associated with cyber fraudsters. “We are educating members to be versatile in adopting new technological trends,” said the CEO.
The Sacco recently opened its 18th branch in Kitale town.
Peter Njuguna, SASRA CEO, who accompanied the CS, noted Boresha Sacco had played a significant role in deepening financial inclusion, noting Baringo county, where it is based, had about 40% co-operative societies penetration, which is above the national level.
Baringo Deputy Governor Felix Maiyo, who represented Governor Benjamin Cheboi, hailed Boresha as a premier indigenous institution that has uplifted residents’ socio-economic status through its 12 branches in the expansive county.
