Qwetu Sacco reported improved growth primarily driven by the provision of competitive, reliable, and market–oriented financial solutions, shrugging off a sluggish economy and raising inflation rates.
Financial statements presented to delegates during a recent annual meeting show that the Sacco remained stable and resilient with strong liquidity to meet members’ financial needs while maintaining and surpassing capital adequacy ratios set by the regulator.
The Taita Taveta-based giant Sacco positively impacted the lives of its members by offering them affordable loan products, consequently playing a significant role in their socio-economic empowerment.
“The major business of the Sacco is savings and credit for the mutual benefit of members. The Sacco is aggressively marketing the savings products and loans which are relatively cheaper,” said Mr. Alfred Mlolwa, Sacco chairman.
The Sacco loan portfolio jumped by 19.53% to Ksh2.38 billion in 2022 compared to Ksh1.99 billion in 2021, supported by the growing demand for its competitive loan products, while non-performing loans were reduced. The Sacco has restructured and re-engineered some of its loan products to reflect the current economic reality, extending the repayment period and lowering interest rates for some products, which boosted the uptake of BOSA, FOSA and Micro-credit loan products.
The Society’s digital loan product M-Qwetu registered impressive growth as more members embraced digital banking growing from Ksh1.12 million in 2021 to Ksh22.5 million in 2022.
“We have upgraded our Sacco ICT system to serve our members and customer more efficiently. We promise to keep up with the pace of technological advancements,” said Mr. Mlolwa.
The Sacco has strengthened its systems operations to avoid downtime and cyber security monitoring, making electronic transactions safe, fast and convenient.
Mr. Mlolwa said that the Sacco would shift its business model to leverage technology and enhanced service delivery to achieve better customer satisfaction and experience. Currently, the Sacco has four branches.
“We will be intensifying on our education and training programmes to members; our goal is to help everyone grow their investments for improved income. By keeping our loans interest rates lower, this will have a great impact on their livelihoods, which is far much better that paying extra-ordinary high dividends,” he said.
Bullish Qwetu Sacco saw its total assets go up by 14.47% to Ksh3.22 billion at the close of the financial year 2022, up from Ksh2.8 billion in 2021. Members’ deposits grew to Ksh2.138 billion, a 10.70% surge from Ksh1.93 billion a year earlier.
The share capital recorded the highest growth 22.72% increase to over Ksh127.5 million in 2022 compared to Ksh103.9 million in the previous year. The total membership increased by over 3,300 to reach 56,159.
Improved patronage of the Sacco’s financial services saw the total turnover grow by 14.57% to more than Ksh575 million, which was attributed to an increase in interest income. The Sacco Board of Directors announced a total annual payout to members of Ksh126.13 million as dividends on shares at 13% and interest on deposits at 9.8%.
“All the growth areas have shown a good and satisfactory trend that, if maintained in the future will lead to great stability. I urge members to save more for their personal development and growth of the Sacco,” said Mr. Mlolwa. He commended delegates for marketing the Sacco aggressively, recruiting new members and educating members.
Mr. Granton Samboja Mwandawiro, Taita Taveta Executive Committee Member for Water, Environment, Sanitation, Climate change and Natural Resources, who represented Governor Andrew Mwadime during the ADM, noted the Sacco is at the centre of the County development.
“We are proud of the Sacco for its role in supporting economic growth of our people, deepening financial inclusion in the county and supporting communities’ welfare through corporate social responsibility programmes. Lately Qwetu Sacco has given our Voi a facelift by putting up a modern plaza, an icon of the town,” he said. The Ksh173.4 million spacious Qwetu Plaza has greatly improved the Sacco’s customer service and image.
Mr. Mwandawiro pledged to partner with the Sacco in various environmental activities, such as tree planting exercises, to mitigate the adverse effects of climate change.
Through Kwetu Foundation, which was formed to foster the Sacco’s corporate social responsibility, particularly in health, education and environment, Qwetu Sacco is leaving an indelible mark in its service to the community. So far, the foundation fully supports the education of 13 students in colleges and universities.
“Our goal is to be a dynamic financial institution offering financial solutions tailored to our members’ needs. We will leverage on technology to serve our members better anytime, anywhere. This way we will be able to uplift their living standards and ensure they achieve their development goals,” said Mr. Charles Kaba, the Chief Executive Officer.
