By CN Writer
Bingwa Sacco braced a difficult economic period in 2020 to register exemplary growth in all key segments as its membership hit over 201,500.
The outstanding financial performance posted by the giant Deposit Taking Sacco was attributed to innovative services and products coupled with improved use of information and communication technology in service delivery.
Last year, the Sacco Societies Regulatory Authority (SASRA) licensed financial institution installed a centralized computer system, which was upgraded to ensure members get notifications via SMS when their accounts are credited.
“The Society intends to acquire the best system in the market to enable provision of efficient services to our members,” said the Sacco chairman Mr Francis Muriithi Mugo.
Mr Mugo said Bingwa Sacco had developed a new five strategic plan for 2021-2025 that focuses on ensuring the Society’s continuous growth.
Among other things, Sacco is aiming at growing members by 15 percent, increase loan portfolio by 10 percent, grow non-withdrawable deposits by 15 percent and share capital by 15 percent annually.
According to the Chairman, the Sacco will leverage ICT to improve efficiency and achieve its targets.
The Sacco completed the extension of its head office building in Kerugoya, which stands as a landmark in the town and greatly improving the Sacco’s image.
“I am grateful to our members who enabled the Sacco to complete the construction of Bingwa Sacco complex without borrowed funds. We believe the extension will increase our rental income and improve members’ dividends in future,” said Mr Mugo. He was speaking during the 36th Annual General Meeting at Kerugoya Catholic Church ground.
The Sacco Chief Executive Officer Jane Mugo said the growth in membership from 187,488 in 2019 to 201,558 in 2020 was a demonstration that the fast-growing DT Sacco is committed to offering unique products and services that are tailored to members’ needs and demands.
She noted that the Sacco renovated its banking halls, giving them a new look with new executive customer lodges to serve members better.
The Sacco has acquired plots in places it has branches to reduce high rent expenses. Last year, it bought new plots and buildings at Kianyaga, Gatwe, Kutus, Kangaita, Kiamutugu, and Githure trading centers. In 2019, the Sacco acquired a building and plot at the Kiangai trading market.
On financial results for the year ended December 31st, 2020, Bingwa Sacco’s asset base went up from Ksh 5.810 billion in 2019 to Ksh 6.208 billion, while deposits and share capital increase to Ksh 1.987 billion from Ksh 1.838 billion in 2019.
The Society disbursed loans worth Ksh 3.2 billion in the year. Since its inception in 1984, the Sacco has disbursed loans worth Ksh 23.9 billion.
“Majority of members service their loans as required and request all to repay their loans timely to avoid unnecessary costs,” said the Sacco chairman.
The Sacco plays a significant role in enabling its members to acquire land and houses through affordable asset and mortgage financing.
