UN Deposit-Taking (DT) Sacco demonstrated resilience by posting impressive financial results in 2023 despite prevailing macroeconomic challenges that reduced members’ disposable income.
The Sacco’s total revenue increased by 13%, reaching a record Ksh 2.197 billion, thanks to a rise in interest on loans and advances, investment income, and reduced expenditure.
The Sacco has diversified its investment portfolio by including government instruments such as treasury bills and bonds, which offer better returns at a lower risk, thereby boosting revenue growth. A total of Ksh 1.3 billion was disbursed to members in the form of interest on deposits at a rate of 10% and dividends on shares at 15%. The interest expense on member deposits increased by 5% to Ksh 1.29 billion, driven by growth in member deposits.
The loan book increased by 10.6% to Ksh 11.096 billion, highlighting the Sacco’s turnaround strategy to increase lending, which was on the decline a few years back. The increased lending to members was attributed to the Sacco’s innovative and attractive suite of credit products available to its members.
“Members’ deposits grew by 9% to Ksh 13.7 billion, maintaining the robust growth in members’ savings over the last few years. The Sacco now boasts total assets of Ksh 17.97 billion, up from Ksh 16.16 billion at the end of 2022,” said CPA Bernard Koech, Chairman, the Sacco Board of Directors.
Speaking during the Sacco’s 47th Annual General Meeting, CPA Koech said that membership increased by 9.7% to 6,916 members in 2023, pointing to the Society’s attractiveness as a reputable financial institution globally.
UN DT Sacco was established with the mission to uplift members’ socio-economic status by providing high-quality, affordable, and diversified financial products and services. The Sacco maintained its interest rates on loan products unchanged despite increasing interest rates in the financial markets, owing to the increase in CBR rates, thus providing much-needed respite to members from expensive loans.
The Sacco growth trajectory is on track with the current implementation of the strategic plan 2023-2027, an automaton of key processes, and overall technology adoption. The Society migrated to the new Enterprise Resource Planning (ERP) system, which offers a modern platform with new capabilities to support the business, including a more secure environment. The Sacco management is keen on leveraging technology to roll out innovative products and services that align with its blueprint.
“To mitigate cybersecurity risks, the Sacco continues to build, sustain, and evolve its defenses in line with emerging threats while investing in training and sensitization of staff on cybersecurity risks as the first line of defense. This is in addition to various investments in ICT infrastructure and environment to mitigate cybersecurity risks,” said CPA Koech.
To drive business growth, the Sacco leadership has invested in appropriate training and capacity-building programme for the Board, Supervisory Committee, and staff, which includes exposure to emerging developments in the
The Sacco relocated into a new office building along UN Crescent last year in a strategic move that enhanced its brand visibility, customer satisfaction, seamless operation, and reduced expenditure.
“The acquisition of the office property is paying dividends as the Sacco has moved away from paying rent at its previous location to generating rental income,” said CPA Koech.
Mr. David Obonyo, Commissioner for Cooperative Development, who represented Mr. Patrick Kilemi, PS Cooperatives, during the AGM as the Chief Guest, noted that successful cooperatives have one thing in common- leadership beyond reproach.
“To serve members better, Sacco leadership must ensure they operate within the stipulated rules and regulations and remain innovative in delivering affordable loan products. I am glad to note that UN DT Sacco is performing well, which is a sign of good leadership and prudent management,” said Mr Obonyo. PS Kilemi, in a Speech read on his behalf, hailed cooperatives as institutions that foster economic development.
The Society started with at least 131 members and has since grown to a globally renowned Saving and Credit Cooperative Society with thousands of members of diverse backgrounds and nationalities. Its success story is a testament to good corporate governance.
Last year, the Sacco clinched top awards during the 101st International Cooperatives Day (Ushirika Day) celebrations, including the runners-up position of the best-managed Saccos and technology optimization.
UN DT Sacco products are designed to solve the unique needs of the different segments of its membership, with flexible terms of repayment. It continues to bolster investments in technology to ensure members access all services through various interactive digital platforms globally.
“Member focus is one of our key strategic pillars. We will continue to enhance our products and services to meet the varied financial needs of our members in a timely and efficient way. Our commitment to customer satisfaction has been unwavering. We are focusing on growing our members to over 7500 by the end of this year through expanding our reach to more agencies and regions,” said Dr. Nebart Avutswa, the Sacco CEO.
“We have embraced innovation to stay ahead of the curve. The Sacco launched the mobile app QC Wallet and USSD ‘605*5# to simplify member transactions and the online banking platform to enable members to access their statements and view their account status in real-time. We continuously optimize all our systems to ensure they serve our members conveniently.”
Concern for Community
UN DT Sacco has been providing impactful community and environmental support initiatives. In 2023, the Sacco constructed classrooms for Cheleta Primary School.
In addition, through its subsidiary, Wanamataifa Investment Company Ltd, thousands of members have benefited by acquiring pieces of land in prime areas.
