PEOPLE OVER PROFIT
Appetite for Sacco loans soar as members’ annual earnings rise
Demand for Sacco loans surged in 2022 by a double-digit percentage keeping pace with similar growth reported in past performances.
Extending affordable credit is one of the core mandates of Saccos to enable members to generate revenue to grow the economy and create employment opportunities.
Saccos also reported a significant growth in revenue and annual members’ earnings, with interest on member deposits and dividends on members’ share capital remaining the same or improving or reducing marginally.
As economic growth looks up, Sacco Board Chairpersons and management struck an optimistic tone of a better 2023 pivoting on easing inflation, political certainty and less fears of economic recession.
Safaricom Sacco was specific about where the loans were channelled to, with lending towards trade topping the charts as land and housing followed closely. Taking a loan for education was the third, with human health the least. Consequently, its Loan book grew from Ksh6.21 billion in 2021 to KSh6.89 billion in 2022, rising by 11 % as interest on members’ deposits increased to 9% compared to 8% in 2021. The members’ share capital dividend rate improved from 13% in 2021 to 14% in 2022.
Kenya National Police DT Sacco loan and advances to members increased to Ksh40.8 billion compared to KSh37.2 billion in 2021 as the interest rate on members’ deposits rose 11% compared to 10.8% in the previous period while the dividends rate on members’ share capital remained unchanged at 17%.
IG Sacco’s loan book reported KSh7.44 billion in 2021 compared to Ksh9.12 billion in 2022, a 22.5% improvement. Interest on members’ non-withdrawable deposits was 12.2% compared to 12% in 2021, with a total payment of Ksh947.6 million. The Society paid dividends on shares at 17%.
Tower Sacco maintained a rate of 20% on dividends and rebates on non-withdrawable shares at 13%. The Society disbursed loans and advances amounting to Ksh9.77 billion.
Winas Sacco registered the highest growth on loans and advances at 18.78%, expanding the loan book to Ksh9.73 billion in 2022, up from Ksh 8.19 billion in 2021. The interest rate on members’ deposits remained the same at 12.58 % in the last two years, as the dividends rate on members’ share capital remained unchanged at 15 % in 2021 and 2022.
Biashara Sacco disbursed over Ksh2.25 billion as loans and advances to members in 2022, up from KSh2.00 billion a year earlier. The Society rewarded members with high annual earnings paying an interest rate on deposits at 12% and a dividend rate on share capital at 18%.
Daima Sacco’s loan book grew from KSh947 million in 2021 to KSh1.158 billion in 2022, translating to a 22 % improvement. The Sacco Board of Directors announced the payment of dividends on shares at 15%, an increase from 13% in 2021, and interest on deposits at 12%, higher than 10% in 2021. The total earnings for members also increased to Ksh67.87 million from Ksh56.9 in 2021.
Unison Sacco had a notable growth on its loan book of 22% to Ksh5.71 billion in 2022 from Ksh4.69 billion in 2021, boosting its interest earning, translating to high annual returns. Members earned dividends on share capital at 17% and interest on members’ deposits at 12.5%, getting a total payout of over Ksh482 million.Â
Nyati Sacco’s loan net portfolio grew from KSh3.12 billion in 2021 up from KSh3.4 billion in 2021 while the interest rate on members stood at 11.3 %, the same as the one paid in 2021 while the dividend rate on members’ capital was 21 %, similar to 2021.
In Kericho, Kenya Highlands Sacco posted a remarkable growth of its loan book from KSh3.585 billion up from KSh2.923 billion in 2021. Interest rate on members’ deposits grew to 13.5 % during the year under review compared to 13 % in 2021, as dividend rate on members’ share capital increased to 14 % in 2022 compared to 13 % in 2021.
Mombasa Port Sacco paid dividends on members’ share capital at 20%, amounting to KSh75 million, while interest rate on members’ deposits was 12.5 %, totalling KSh496 million. The Society also increased its loan book to KSh4.93 billion in 2022 compared to KSh4.31 billion in 2021, a 14 % improvement.
Ndege Chai Sacco’s loan portfolio jumped by 11%, rising from Ksh2.8 billion in 2021 to Ksh3.14 billion. Members earned increased dividends on share capital and interest on deposits at 15% and 10%, respectively.
Once again, members of Ollin Sacco received high annual returns, with interest on non-withdrawable deposits paid at 12.1%, non-prorated, and dividends on share capital at 17.5%, cumulatively pocketing Ksh579.99 as 2022 earnings.
Bandari Sacco loaned members KSh7.740 billion in 2022 and declared payment of rebates at 11.50% and dividends at 18.0%.
Hazina Sacco paid a dividend on members’ share capital at 17%, and interest rate on members’ deposits at 10.6 % as the loan book improved to KSh8.82 billion in 2022 compared to KSh8.17 billion a year earlier.
Solution Sacco’s dividend rate on members’ share capital stood at 15%, and the interest rate on members’ deposits was 12.5 %. Mentor Sacco’s loan and advances grew to KSh7.48 billion during the year under review compared to KSh7.12 billion in 2021. The Murang’a-based Sacco paid dividends on members’ share capital at 15% and interest rate on members’ non-withdrawable deposits at 12.3 %.
Stima Sacco announced a 12% loan portfolio growth from KSh36.8 billion in 2021 to KSh41.3 billion during the year under review.
Harambee Sacco maintained a 10% rate on dividend payments and capped interest rate on members’ deposits at 8% in the next three years to build the institutional capital and encourage members to buy more share capital.
Yetu Sacco announced a total payout of members’ investment returns of over Ksh290 million, up from Ksh240 million in 2021, distributed to members at 18% on dividends on share capital and 13% interest on members’ deposits. Its loans and member advances jumped to KSh3.31 billion in 2022, up from KSh2.99 billion reported in the previous financial period.
Newfortis Sacco paid dividends on share capital at 14% and 13% interest rate on members’ non-withdrawable deposits, bringing the total payment to Ksh 795 million for the year 2022. The Society also significantly contributed to its members’ economic empowerment while enriching their social benefits by offering affordable loans worth Ksh 6.92 billion, up from Ksh6.2 billion in 2021.
