Members Pocket Ksh3.6B in Dividends and Rebates
Kenya National Police Deposit-Taking SACCO posted a 10.1% growth in total revenue to Ksh8.7 billion in the financial year ending 31st December 2023, up from Ksh7.9 billion in 2022, maintaining its position as the country’s most profitable co-operative society.
In consequence, the SACCO’s net profit for the year rose to KSh 2.5 billion compared to Ksh 2.2 billion registered in 2022. Interest earned from loans to members increased to KSh 8.1 billion in 2023 from KSh 7.1 billion in 2022, while earnings from fees and commissions increased from KSh 266.9 million in 2022 to KSh 274.8 million in 2023. The Society increased its retained earnings from KSh 1.3 billion in 2022 to KSh 1.8 billion in 2023.
Members received a total dividend cheque amounting to KSh 599 million in 2023 compared to KSh 552.3 million in 2022. This translated to a dividend rate on members’ share capital of 17%. The Society also paid interest on members’ deposits of 11%, totaling Ksh3.0 billion.
With these returns amounting to Ksh3.6 billion, the DT SACCO is one of the top dividend payers, capable of consistently rewarding its members with double-digit returns.
Despite a harsh economic environment that prevailed in the better part of 2023, such as the high cost of fuel and food as well as the introduction of new taxes and levies, the DT SACCO increased the amount of loans disbursed to members from KSh 40.8 billion in 2022 to KSh 45.7 billion in 2023.
The expansion of the loan portfolio boosted income growth, highlighting the Society’s success in offering member-centric products with total delinquent loans reduced drastically in 2023. “We have been conducting a comprehensive review of products and services to make them more competitive and meet members’ expectations,” said Mr David Mategwa, the SACCO National Chairman. He spoke at the 51st Annual Delegates Meeting held at Serena Hotel, Nairobi.
The Sacco is tapping into the diaspora market to grow business and lowering minimum share capital for new members from Ksh50,000 to 500 to increase membership, which stood at 73,416 in 2023.
The Global Credit Rating maintained the Society’s stable outlook in credit rating, pointing to its commitment to comply with the requirements of the ISO 9001:2015 Quality Management Standard. Under the current Strategic Plan 2020-2024, the SACCO attained its targets with major growth in all key areas.
According to Mr Mategwa, the Society intends to integrate its QMS with an Information Security Management System as well as a Business Continuity Management System to enhance its security and resilience.
Non-withdrawable deposits grew by 10% from KSh 25.9 billion in 2022 to stand at KSh 28.5 billion in 2023. Core capital increased by 14% to KSh 17.9 billion from KSh 15.7 billion in 2022. Withdrawable members’ deposits increased from KSh 2.9 billion in 2022 to KSh 3.2 billion in 2023. The ten highest savers in share capital and deposits were recognized and awarded during the ADM.
“The Society continues to leverage technology as a driver and business enabler. The mobile banking platform, for instance, accounts for about 40% of the Society’s transactions. We look forward to upgrading our systems in 2024 to make them more robust and secure,” said Mr Mategwa.
Audited accounts by the Sacco Societies Regulatory Authority (SASRA) also show the Society’s total assets grew to KSh 54.2 billion from KSh 48.9 billion in 2022. The SACCO also increased its investments in Government securities from KSh 1.3 billion to KSh 1.5 billion.
As the best managed Co-operative in the country committed to the tenets of good corporate governance, the SACCO scooped over eight national Ushirika Day awards, including Best Managed SACCO Countrywide. The SACCO also emerged as the winner under the Sacco category of the prestigious FiRe awards. The SACCO is ranked as the third-largest in Kenya.
Kenya National Police DT SACCO has invested heavily in corporate social responsibility, with its children’s education program having 237 students by the end of 2023 in various secondary schools and universities. The SACCO has also supported infrastructure development and donated laptops and tablets to Utumishi Academy Gilgil.
“We have also planted over 10,000 tree seedlings at the DCI headquarters. This will go a long way to mitigate the effects of climate change and enhanced environmental conservation,” said Mr Mategwa. The SACCO has also invested in solar energy installations to support members’ access to clean energy as well as promote members’ access to quality health care and ensure zero poverty through tailor-made financial solutions.
The Society’s subsidiary, the Kenya Police Investment Co-operative, also maintained a high growth momentum, with total assets posting an impressive growth of 33.6% to KSh 520.5 Million from KSh 389.6 Million in 2022.
The Society’s membership increased to 6,989 last year. “Our plan going forward is to significantly grow membership by enrolling all our SACCO members in the investment cooperative for long-term growth and financial sustainability of the investment cooperative. Members’ deposits grew by 14.6% to KSh 136.7 Million from KSh 119.3 Million in 2022,” said Mr Mategwa.
“Your robust financial indicators, including notable growth in assets, deposits, loans, and revenues, speak volumes of your dedication and resilience. I urge the board and management to build upon this success and strive for even greater heights in the year ahead. As leaders, it is incumbent upon us to embrace innovation and devise strategies that will propel cooperatives toward continued excellence. Technology stands as a powerful catalyst for transformation,” said Hon Simon Chelugui, CS Co-operatives and MSME’s development, who was the chief guest during the ADM.
Other distinguished included the Principal Secretary for Cooperatives Patrick Kilemi, Commissioner of Cooperatives David Obonyo, and former Deputy Inspector General of Police Edward Mbugua, among others.
