Sacco reports remarkable growth, upbeat of better performance
Tabasamu Sacco has closed the one billion mark to join the league of billionaire Saccos in the country. Its asset base reported improvement as it shot by 9.2 per cent, increasing from KSh963 million in 2021 to KSh1.056 billion in the financial ending 31st December 2022. The Society has a vision of doubling the asset size in the next five years.
Board Chairperson Mrs Felister Mutisya said that the Sacco’s loan book rose by 24.7 per cent to stand at KSh534.2 million during the year under review compared to KSh428.3 million reported a year earlier. She was speaking during the 45th annual delegates meeting held recently.
Tabasamu Sacco’s management efforts to improve its capital base received a shot in the arm, with its share capital reporting a 36.3 per cent growth, rising from KSh56.96 million reported in 2021 to stand at about KSh77.66 million. The sharp rise was attributed to members complying with the minimum share capital as stipulated by the bylaws.
To increase its membership and raise the capital base, delegates from this year will be allowed to recruit members from within their jurisdiction as the Society seeks to re-engineer its micro business. This is set to increase its members from the 6,114 reported in 2022 compared to 5,965 in its register in 2021, a 2.5 per cent improvement.
Overall, Tabasamu Sacco overcame a harsh business environment in 2022 to report improvement in its market segments and enable members to get a return on their investment.
Though rising fuel and food prices squeezed members’ pockets, Tabasamu Sacco delegates approved a 10 per cent dividend rate on members’ deposits in 2022, the same rate as in 2021. The interest rate on members’ non-withdrawable deposits improved by 0.5 percentage points to stand at 4.5 per cent, while interest rates on members’ withdrawable deposits, saved in fixed accounts, were retained at 7 per cent.
During the year under review, the Society’s turnover improved from about KSh153.1 million reported in 2021 to KSh173.6 million last year. The 13.4 per cent growth was better compared to the 7.8 per cent growth recorded in 2021, an increase attributed to members patronizing the Society’s products and services, principally loans and advances.
Buoyed by the return of Mombasa Port activities to the coastal region and clearing of goods, and restoration of CFS to Mombasa, Mrs Mutisya exuded confidence the future of the Sacco is brighter.
“This will impact a lot on the growth of the coastal towns and by extension the town on the Mombasa-Uganda corridor. More money will be available and we expect Saccos in this region to be revived,” she said.
Tabasamu Sacco, which is a key player in mobilizing savings and extending affordable credit to Kwale County residents and those in the coastal region, was recognized in the 2022 Ushirika Day celebrations, where it won six awards in various fields. These include the Best in Capitalization, Best managed, best in savings, and credit management DT Sacco among employer-based Tier 4 societies as well as Most efficient management and most improved in the same category.
This is a clear demonstration of its efforts to inculcate a savings culture which is critical in pooling resources to invest in income-generating activities besides undertaking other development activities.
Madam Mutisya disclosed that the Sacco had successfully repaid a bank loan borrowed to the tune of KSh280 million and has no intention of borrowing in the near future. “We intend not to have any external loan from any financial institution in the near future so long as we manage prudently what we have,” she said.
She stated that the board and management would endeavour only to mobilize funds from existing members and retain more as surplus to improve their liquidity.
To guide the Sacco growth prospects, the management will formulate a new Strategic Plan for 2023-2027 following the lapse of 2019-2022 one. Sensitization will be done during the education days, scheduled for May and June.
The Society rewarded the highest savers in categories, namely delegates, board of directors, Sacco employees, and Teachers Service Commission (Kwale County) to encourage increased savings. Others included County Government employees, retirees, Biashara, the overall highest share capital saver and highest deposit saver.
Part of its Corporate Social Responsibility included the efforts to eradicate jiggers in Msambweni Sub County, targeting six schools. The efforts are meant to create a conducive learning environment and enable learners to achieve their maximum learning outcomes, with Sacco management seeking a partnership with the county government to enhance the CSR programme.
Tabasamu Sacco is licensed and regulated by the Sacco Societies Regulatory Authority (SASRA).
