Imarika Sacco eyes over Ksh15bn in members’ savings
Imarika Sacco aims to grow members’ deposits to Ksh15.8 billion and loan book to Ksh16.3 billion by 2026. The Sacco management also intends to grow membership to 286,626 by 2026 when the new Strategic Plan implementation ends.
To achieve this, the Society has charted a new business growth plan that will see it effectively serve the growing financial needs of members adequately. The Sacco has maintained a bullish outlook with an upward growth trajectory in recent years.
The Sacco’s future business model is cemented on a robust digital strategy and diversification of service delivery channels for improved customer satisfaction and experience. Recently, the Kilifi-based Deposit-Taking Sacco started piloting Agency banking services, taking services at the members’ doorsteps. Fifteen agents are in operation, with 35 more expected to commence operation soon.
Alternative banking channels such as mobile banking and ATM services played a significant role in the Sacco’s remarkable financial performance in 2021. Total earnings went up to Ksh1.7 billion last year from Ksh1.5 billion in 2020, a growth of 14%.
“This growth resulted from increased earnings in the loan and advances from Ksh1.29 billion in 2020 to Ksh1.44 billion in 2021,” said Mr. Renson Ndoro, Chairman Board of Directors.
Generally, the Sacco registered notable growth in key regulatory areas, with total assets going up by eight percent to hit Ksh10.4 billion in 2021 from Ksh9.3 billion in 2020. The Society also succeeded in mobilizing savings as total deposits hit Ksh6.85 billion, up from Ksh6.25 billion. The Board intends to grow deposits to Ksh15.8 billion and loan book to Ksh16.3 billion by 2026. The Sacco total membership reached 130,972 after adding over 13,700 more. The management goal is to have 286,626 members by 2026.
“The performance was driven by significant rebounds in most economic activities that had suffered in 2020,” said Mr. Ndoro. Members were paid dividends on shares at 14% and interest on deposits at 8%.
In line with the mission of empowering members socio-economically, the Society offered affordable credit facilities growing its loan portfolio to Ksh9 billion in 2021 from Ksh7.76 billion in 2020. “We continually ensured that members were able to meet their development goals by providing reliable and timely funding. We have also reviewed and customized our loan products to effectively address members’ financial needs,” said Mr. Ndoro.
The Board is implementing a new Strategic Plan that outlines the Sacco’s post-Covid growth plan. Convenient banking solutions and customer satisfaction are centric to the Sacco’s future.
“We intend to transform our way of serving members by improving members’ experience. The new Mariakani branch renovation is complete. Our new Mombasa branch will start operating on March this year. Our goal is to grow our membership, business and take services closer to our members,” said Mr. Ndoro. The Sacco was also given the nod by the Sacco Societies Regulatory Authority (SASRA) to set up a satellite office in Mpeketoni.
Under the banner of the Imarika Foundation, the Sacco continued to transform communities through various Corporate Social Responsibility activities such as sponsoring students.
The Commissioner for Cooperative Development, Mr. David Obonyo, who was the Chief Guest during this year’s annual delegates meeting, commended the Sacco for registering sustainable growth and urged the management to stick to the core mandate.
“The Sacco must continue facilitating savings and providing loans to members. I am happy to see this remains Imarika Sacco’s line of business. The Sacco must also develop products and services that are tailored to your members’ unique needs,” he said.
Imarika Sacco is among the leading cooperatives partnering with the Kenya Mortgage Refinance Company to spearhead the government’s affordable housing agenda.
“We have developed two mortgage products for our members. We have the Makao Loan, which is designed to enable members acquire already existing houses and Ujenzi loan designed to facilitate the construction of a new house by our members,” said the Sacco CEO, Mr. George Ngala.
Founded in 1974, Imarika Sacco has remarkable growth driven by the urge to transform members’ social and economic status. Many livelihoods have become stable, and individuals prospered through the financial support of the Sacco.
Over the 47 years of its existence, the Sacco has built a reputation as a trusted, dependable, stable, and fastest-growing Sacco in the coastal region and the country. It offers a wide range of products and services that are tailored to the specific needs of members.
