Sacco focuses on effective credit and customer management.
Amica closed the financial year 2022 with a strong financial position following impressive growth in all its key segments, highlighting Sacco’s success in using technology to drive and support business.
The Sacco’s sustained efforts to leverage convenient alternative banking channels are paying off as more members embrace digital financial solutions. About 67% of the Sacco’s transactions in 2022 were conducted through digital channels.
“This highlights the importance of continuous innovation to keep up with the rapidly changing market and offer convenience that members’ desire without necessarily investing in brick and mortar,” said Mr Hezron Muchiri, Chairman.
In May last year, Amica introduced a free pay bill number 4 298 298, stimulating deposits mobilization to the tune of Ksh1 billion. The Sacco has also partnered with various banks and Safaricom to ensure its members access financial services easily.
Amica also introduced convenient and innovative channels to enable members to deposit, make payments and easily transfer funds, such as merchant settlement, Amicash mobile, Amicash agents, Real-Time Funds transfer (RTFT), Amica Visa Cards and personalized cheque books. Over Ksh11.7 billion in members’ deposits were done through the alternative channels, with 63% of total withdrawal transactions valued at Ksh7 billion conducted via the channels. The Sacco agency banking business and M-pesa services transacted over Ksh10.8 billion.
During the 25th Annual Delegates Meeting, Mr Muchiri noted that Sacco had also developed several new policies to strengthen internal control systems.
“We are optimistic about the opportunities that lie ahead in the market, and we are well-positioned to take advantage of them. As a Board we are committed to leveraging our market knowledge, expertise, experience and extensive network to achieve greater success,” said the Chairman.
He affirmed that Amica would continue fostering its distinctive culture, efficiency, teamwork, innovation, and simplicity to propel it to its desired destination.
The Sacco plans to roll out a members’ portal on its website to enable members to access statements and self-register. In addition, Mr Muchiri announced plans to establish service centres or marketing offices that will provide members with basic banking services to cut down on the costs of opening branches, grow the market and fortify its base.
The Sacco played a significant role in supporting small and medium enterprises (SMEs) and farmers to achieve their development and growth goals by advancing affordable loans. “As Amica, we are proud of our contribution to reinforcing Kenya’s position as a leading coffee and tea producer as well as regional trade hub,” said Mr Muchiri.
Amica, which is marking its 26th anniversary this year, attained outstanding growth last year, with its loan book growing significantly to Ksh5.39 billion, a 15.9% jump from Ksh4.65 billion in 2021. The Sacco serves a bulk of SMEs, who make up over 60% of its borrowers. The loan portfolio rise helped lift its total assets by 13% to Ksh6.68 billion in 2022, up from Ksh5.66 billion a year earlier.
“Considering a highly competitive operating environment, coupled with the exceptional disruptions, this growth is laudable achievement,” said Mr Muchiri.
Members’ total deposits increased by 13.02% from Ksh4.32 billion in 2021 to Ksh4.89 billion in 2022. The Sacco total revenue reached a new high, closing the billion mark to hit Ksh1.026 billion in 2022 compared to Ksh980.98 million in 2021. The Sacco Board announced the payment of dividends on shares at five per cent and interest on deposits of between six and 10 per cent.
In 2022, Amica scooped various awards for its outstanding achievements, including the best taxpayer in Central Region under the MSMEs category, which President William Ruto presented to the Sacco officials, and Ushirika Day awards for the top-performing agricultural-based Sacco and third best in deposit mobilization.
With a massive membership of 182,030, Amica is seeking new business frontiers focusing on SMEs and the agricultural sector. The Sacco management and leadership are currently developing a new strategic plan, having successfully implemented the 2020-2022 growth plan.
“Our Sacco is poised for success, and we have a clear vision for the future. Our three-year strategic plan is built on three core pillars: effective credit and customer management and aggressive selling,” said Mr James Mbui, Sacco’s Chief Executive Officer.
“We’re committed to aggressive marketing and improving the member experience across all the touch points to achieve our ambitious goals. The journey to improve our members experience will focus on products and services, automation and digitalization while minimizing risks,” he said.
The Sacco has revived its pre-university mentorship program that targets top KCSE performers in public day schools, who are offered attachment and mentored while earning a retainer.
Amica’s member information day, member engagement fora and daily field services program significantly build members’ capacity to save and invest.
“As Murang’a County we are proud of Amica’s role in supporting residents improve their livelihoods. We are happy that you allowed us use your digital services to serve our farmers. I will request you continue doing the good work. The County will continue partnering with Saccos,” said Mr Paul Kimani – Trade and Cooperatives, Murang’a County CECM.
Amica launches refurbished Kiriaini branch
Amica launched its newly revamped and refurbished Kiriaini branch in a pomp and color event to enhance customer experience and improve service delivery. The modern and spacious Sacco branch has boosted its image within the busy town while ensuring members are served in a customer-friendly, bigger, better banking hall. Rt. Rev. Dr. Timothy Gichere, Bishop ACK Diocese of Mt. Kenya Central officially opened and blessed the newly refurbished branch.
“The grand launching of our Kiriaini branch has been part of Amica’s strategic direction since 2016 when we rebranded to refurbish all our branches to improve image. Our branding has become more appealing to the young people. With the new look and feel the bank attracts everybody from farmers, business people to salaried people and anyone else looking for quality financial services,” said Mr. James Mbui, Chief Executive Officer.
Out of the Sacco’s 17 branches, over 13 have been refurbished. “We do it every year so that our members can access services from an environment that is conducive and convenient,” said Mr. Mbui.
Amica has also rolled out innovative solutions, with over 65 percent of its clientele accessing services through digital and alternative channels.
According to Mr. Hezron Maina Muchiri, the institution’s Board Chairman, this has enabled the Sacco to register tremendous financial growth in a challenging economic environment.
Amica, a tier one Sacco, has subsequently crafted new strategies to tackle emerging challenges eying business growth in the face of a challenging economic environment.
