Universal Traders Sacco (UTS) remained resilient to post remarkable growth in the financial year ending December 31st, 2022, against a troubled economy that has greatly reduced savings power and loan repayment due to high living costs.
The highlight of the Sacco’s growth was a notable increase of total assets by more than Ksh101 million to reach Ksh1.497 billion last year from Ksh1.396 billion a year earlier.
The Sacco also played a significant role in promoting economic empowerment among its members by providing affordable loans and advances, contributing to the overall growth of its loan portfolio to Ksh1.197 billion in 2022. The Sacco introduced new loan products while also restructuring some products to support members.
“The Board is repackaging its products with the key focus to have a product targeting landlords and property owners, which will enable them access credit facilities against receivable rent to support them do constructions with the sufficient grace period,” said the Sacco Chairman, Mr. Fredrick Ngumbi. He was speaking during the annual delegates meeting held at Lysak Haven Park, Machakos, recently.
The Sacco also eyes the real estate industry to grow deposits and expand on income streams.
Improved service delivery and innovative saving products helped grow the Society’s total deposits to Ksh839 million, an increase of sixty-eight million from 2021. The total turnover registered a relative growth of nine million to Ksh239 million. The Sacco management plans to conduct a shares/funds mobilization drive in June this year.
“The Board commits to maintaining this positive growth trajectory in 2023. We are optimistic that the growth rate shall be much higher,” said the Chairman.
Technology optimization is at the core of the Sacco’s business, greatly enhancing the efficiency and convenience of banking services for members. According to Mr. Ngumbi, they plan to roll out agency and internet banking once the Sacco regulator gives the nod.
“We are also working to improve on user-friendly accounts to enhance savings mobilizations and patronage of our FOSA services and products,” he said.
The Sacco rewarded members with annual returns in the form of dividends on share capital and interest on deposits, with a proposal of active accounts to earn high dividend rates in the future.
The year 2022 was victorious for the top-ranking UTS Sacco that won top awards during the Ushirika Day celebrations. The Sacco was voted the Best in Credit Management nationally to take home the overall trophy in the community-based Deposit-Taking Sacco category.
During the national cooperative fete, the Society also scooped the second Best in Capitalization and Technology Optimization awards in the same category to join the rank of the country’s most decorated cooperative societies.
Besides the national awards, UTS Sacco also scooped prestigious awards during the South Eastern ASK Show, where it bagged trophies and certificates for the Best Financial Institution, the Best Micro-financial Institution Stand, and the Second Best Cooperative Movement/Sacco Stand.
The Sacco is among the rapidly growing cooperative societies contributing significantly to members’ empowerment. It has emerged as a benchmark for other co-operatives, particularly on its success in managing micro-credit facilities for non-check-off members.
Established as Masaku Traders Sacco Society Limited more than 39 years ago to meet the financial needs of the local population, who had no access to credit facilities from commercial banks, UTS has withstood the test of time to build a reputation as a financial institution that adequately meet the needs of its over 50,000 members.
The Society has a presence in Machakos, Tala, Wote, Kathiani, and Mulolongo. Recently UTS has been aggressively marketing its competitive financial products and services and has put members at the centre of its promotional campaigns to improve the uptake of its products and services.
UTS, which SASRA licensed in 2011 as a community-based DT Sacco, regularly conducts membership education campaigns in partnership with Co-op Consultancy and a Bank Assurance Intermediary to uplift its marketing and financial management capabilities.
UTS offers well-structured and affordable products and services that meet our clientele’s needs, ranging from farmers, micro-entrepreneurs, civil servants, and self-help teams,” Mr. Dominic Mutunga, Chief Executive Officer. Its research and marketing team has continually applied technology and innovation to develop products that address the needs of its members without compromising its financial sustainability.
It offers convenient and easily accessible financial products and services such as mobile banking, ATMs and cash transfer services and has introduced its own cheque book for members.
