Sacco posts high growth in total assets, deposits, loan book, and dividend payout
By Co-op News
Acumen Sacco maintained a stellar financial performance as the Board of Directors ensured members have access to diverse, convenient, and affordable financial solutions.
Quality services boosted the Sacco’s total revenue during the financial year ended 31st December 2021, which registered a 36% growth to hit Ksh46.3 million. The Sacco was in 2020 licensed by the Sacco Societies Regulatory Authority (SASRA) to undertake deposit-taking business in Kenya.
SASRA Chief Executive Officer Peter Njuguna, who graced the Sacco’s 15th Annual General Meeting, commended the Sacco leadership and management for their commitment towards the success of the institution.
“The government is doing everything possible to secure members’ deposits and all Saccos must comply with all regulations. I am happy that your Sacco is following the law in its operations,” said Mr. Njuguna.
Acumen Sacco has embarked on a new growth trajectory in readiness for the future and match-up to the competition in the financial sector. With good leadership and strategic management, the Sacco posted high growth in all key segments while maintaining all prudential ratios as required by the Regulator.
Notable was the Sacco’s high growth in a loan portfolio that grew by 39% to reach Ksh300.9 million in 2021 from Ksh 216.8 million in 2020. The increased lending to members plays a significant role in uplifting members’ socio-economic status while cushioning them from the adverse effects of the Covid-19 pandemic.
Speaking during the AGM, the Sacco chairman Mr. Wainainah Kiganya reported that total assets increased by 26% to hit Ksh369.4 million while members’ deposits grew by 13% to Ksh296.3 million.
“Our Sacco registered a growth of 36% in total revenue from Ksh34 million to Ksh46.3 million with a commendable decrease on non-performing loans,” said Mr. Kiganya.
He urged members to faithfully service their loans and encouraged them to use land and buildings to secure their loans, adding that, this will also improve loan security. “We are improving savings multiplier for loans and extending the repayment period to enable as many members to enjoy affordable and easily accessible credit for their development,” said Mr. Kiganya.
The chairman commended members for their continued patronage of Sacco services and products, noting that the number of employers paying their staff through the FOSA has gone up.
The Sacco has heavily invested in technology, ensuring convenient, competitive, secure, efficient, affordable, and round-the-clock customer experience. “Our mobile banking is up and running. We are at an advanced stage in providing ATM services to members,” said Mr. Kiganya.
The Sacco Board and management have also embarked on system upgrade to improve service delivery and tighten security.
The Board of Directors declared high payment of dividends on shares at 15% and interest on deposits at 5%. In total, the Sacco paid over Ksh17 million to members. The DT Sacco has about 2,000 members.
Last year, the Sacco launched the 2021-2026 Strategic Plan, which will guide the Society as it implements measures to accommodate the new normal and ensure the business is more resilient and responsive to external shocks.
The Society aims to enhance the use of technology and seek more partnerships to maximize members’ benefits.
Acumen Sacco was registered in 2008 to cater to the financial needs of its members. The Sacco has grown in membership, deposits, and assets exponentially and offers both Back Office Service Activities (BOSA) and Front Office Service Activities (FOSA) services and products. The Sacco current membership is diverse from public service, disciplined forces, farmers, salaried individuals from the private sector, and business people.
