Kenya Highlands Sacco Sets New Standards as Members Earn Attractive Dividends
Kenya Highlands Sacco registered remarkable financial performance in 2024, achieving an impressive 116.8% growth in total assets and advancing to Tier 1 status among the country’s large-sized deposit-taking Saccos. The Sacco asset base surged from Ksh 4.67 billion in 2023 to over Ksh 5.45 billion in 2024, driven by a successful share drive campaign conducted last year and increased members’ patronage of the Sacco’s diverse range of products and services.
As a trailblazer, the Sacco is among the latest to surpass the Ksh 5 billion benchmark, setting a remarkable standard for agriculture-based cooperative societies. Its outstanding performance resulted in a 15% increase in total interest payable to members, rising from Ksh 264.9 million in the previous year to Ksh 303.8 million. Additionally, members enjoyed increased dividend payouts of Ksh 95.18 million, reflecting a 6.3% growth compared to the previous year. Total annual returns to members soared to an impressive 43.9%, while total revenue rose by 8.7% to reach Ksh 881.4 million.
The Board of Directors announced attractive rates on annual returns, offering 15% on dividends for shares and 13.5% interest on deposits. Committed to advancing the socio-economic development of its members, Kenya Highlands Sacco disbursed Ksh 4.94 billion in loans and advances. There was a significant reduction in bad loans, with provisions for non-performing loans decreasing by 66%.
The Sacco consistently maintained compliance with the prudential ratios set by the Sacco Societies Regulatory Authority (SASRA), and its liquidity ratio substantially improved last year.
With a strategic focus on fostering connections with members and delivering competitive financial services for their economic empowerment, the Sacco has attracted a substantial influx of new members. In 2024, the membership stood at 148,526, contributing to a robust increase in total members’ deposits, which grew to Ksh 3.67 billion from Ksh 3.1 billion in 2023.
The Sacco aims to grow its asset base to over Ksh 10 billion and reach a membership of 180,000 by 2027.
“Our strategic plan for 2023-2027 focuses on five key areas: growth opportunities, member service experience and relationships, operational efficiency, a people-centered approach, technology, and effective governance,” stated Mr. Richard Mutai, a member of the Sacco Board of Directors.
Looking to the future, the Sacco is leveraging technology to provide convenient digital banking services to its members, reduce costs, and maximize returns. The management has invested in training for both staff and members to keep them updated with the latest knowledge.
“Risk management is a crucial component of our operation. We will continue to allocate resources to ensure appropriate management interventions,” affirmed Mr. Mutai during the Sacco’s 10th annual delegates meeting.
Mr. Vincent Marangu, the Director in charge of the Co-operative Banking Division at Co-op Bank, who was the chief guest at the event, praised the Sacco as a role model for others. “Your effective leadership and inclusive representation have contributed to your success. Kenya Highlands Sacco is leading the way in many areas; keep up the good work,” he said.
He commended the Sacco’s leadership and management for their transparency and accountability in financial reporting to members, adding that the Sacco is well-positioned for greatness.
Mrs. Alice Kosgei, the Sacco CEO, noted that the focus in 2025 will be on connecting with members. “Our Sacco is guided by the spirit of cooperation, mutual benefit, and shared prosperity. Our goal is to ensure that Kenya Highlands Sacco remains a pillar of support for every member. We are committed to transforming lives,” she stated.
Despite the challenges posed by the economic environment, Mrs. Kosgei emphasized that the Sacco offers growth opportunities for all.
“We aim to remain innovative, leveraging technology to build a solid foundation and a brighter future for everyone. Pamoja Twanawiri!”
Kericho County Cooperatives Director Leonard Otii applauded the Sacco for its role in changing lives by offering affordable loans and providing high annual returns to its members. “This reflects the Sacco’s good governance and prudent management,” he noted.
Last year, the Sacco received numerous awards at both national and county levels. During the national Ushirika Day, it was recognized as the best managed, most efficient, most improved, best in credit management, and best in technology optimization DT Sacco among agri-based societies. In Kericho, the Sacco won awards for best in capitalization, loan book growth, and financial inclusion, among others.
In addition to its financial services, Kenya Highlands Sacco engages in Corporate Social Responsibility (CSR) activities, such as supporting schools and donating to the less privileged. The Sacco’s business model also aligns with Environmental, Social, and Governance (ESG) principles.
ENJOY FAST, SECURE & CONVENIENT BANKING
*879#
www.kenyahighlandssacco.co.ke
