Following a viral video of Maryanne Njoki demanding a refund of Ksh1.6 million she had invested in Safaricom Investment Co-operative (SIC), the co-operative has said it is fast-tracking the refund of Njoki and seven other investors’ money.
The investment co-operative said it was in touch with Sycamore Pine Limited, which assured that “they are handling the issue directly with investors with a view of a settlement.” Sycamore Pine Limited was the developer of the Samara Estate Development, while SIC acted as a selling agency for the sale of housing units, according to the co-operative statement posted on social media.
SIC pledged its willingness to advocate for their clients’ refund and compensation by the property developer in a case now under the court with a hearing slated for 22 November 2023.
“We would like to assure our investors that Safaricom Investment Co-operative is committed to prioritizing their needs and safeguard their investments with utmost diligence,” read the statement.
In the video, Maryanne bitterly wept as she explained her frustration in getting her money back, saved through hard work and sacrifice. She said she had been taken in circles in an attempt to get the money refunded, leaving her sleepless.
Safaricom Investment Co-operative (SIC) is different from Safaricom Sacco, both having different management and regulators. SIC is regulated by the State Department for Co-operatives under the Co-operatives Act, while Safaricom Sacco is a top-tier Deposit-Taking Sacco under the supervision of the Sacco Societies Regulatory Authority (SASRA).
According to the information posted on the SIC website, the Investment Co-operative is an investment company that pursues joint investments for its members through real estate investments, marketable securities and private equity. The Society seeks to transform investors’ economic and social well-being through prudent, sustainable and responsible investment decisions anchored on three pillars: financial growth and sustainability, increased member mobilization and improved internal processes and strengthening institutional capacity.
Since its inception in 2009, Safaricom Investment Co-operative has attracted over 4,000 members, drawn from the current and former staff of Safaricom PLC and the public at large. SIC has over 100 land projects spread across 14 counties in Kenya and 6 Housing projects in Nairobi, Kiambu, Machakos and Kajiado counties as of July 2022. Since its inception, SIC has issued over 4,000 titles to members and has handed over 600 fully paid housing to clients and members. The State Department for Co-operatives regulates the Society under the Co-operatives Act.
According to CEO Sarah Wahogo, SIC’s main objective is to create a model investment co-operative that delivers superior returns to investors who are the most important stakeholders as per its Strategic Plan 2023-2027
“This will be achieved through the adoption of concentric and horizontal diversification techniques into areas within real estate as well as creating efficiencies in the already existing business units.”
Its 2022 Annual Report and Financial Statement indicate that SIC distributable surplus significantly increased from Ksh12m in 2020, Ksh 117m in 2021 to Ksh 176.98m million in 2022. This was a 51% growth.
The Society braced macro-economic challenges in 2022 to record a 37% growth and significantly reducing its bank debt.
In the annual report, SIC Board Chairman Peter Gichangi stated that the gross turnover grew by 200% in 2022, closing at Ksh2.797 billion. Gross Profit grew by 37% in 2022 to Ksh542.9m from KES.396.2m in 2021. Before-tax, profit grew 37% in 2022 to Ksh268.2m from Ksh 195.7m in 2021.
Annual rebates payout leapt 51%, Ksh176.98m, with earnings per share growing from Ksh1.45 in 2021 to Ksh 2.19 in 2022.
“We on boarded a total of 266 new members during the year to close the year at 5156. We plan to have aggressive membership recruitment drives locally and in the diaspora through engaging marketing campaigns and strategic partnerships to drive up these numbers,” he said.
SIC’s total assets grew by 10% to Ksh 5.68 billion.
