Ollin Sacco’s goal of attaining Ksh15 billion in total assets by the year 2025 is on the right course, a new Sacco Societies Regulatory Authority (SASRA) report shows.
In the Sacco Supervision Annual Report, 2021 released in August this year, Ollin Sacco maintained a high rating among the large-tiered Saccos, a peer group of the wealthiest Saccos in the country. SASRA ranks the Sacco at position 31 with total assets worth over Ksh7 billion, Ksh4.78 billion in members’ deposits, Ksh5.55 billion in gross loans and a total income of Ksh1.02 billion.
The latest ranking places Ollin Sacco among the country’s competitive financial institutions with a positive future outlook based on its general growth and performance.
The analysis also shows deposit-taking Saccos such as Ollin continue to have a competitive edge in the returns earned by the members with the average rate of interest paid by DT-Saccos on members’ deposits increasing from 6.01% in 2020 to 6.88% in 2021
Early this year, Ollin Sacco Board of Directors during the Annual General Meeting declared a high payout of dividends on share capital at 17.5% and interest on members’ deposits at 12%, amounting to over Ksh480 million. The dividend and rebate rates were far much high compared to the sector’s average rates.
Figures from the SASRA database show that commercial banks offered an interest of 4.02% on savings in 2021, which was lower than an average of 6.88% given by DT Saccos to their members and 9.44% as the average dividend rate on a member’s share capital.
Ollin Sacco’s 17% growth of total assets in the financial year 2021 was also among the highest. The Sacco subsector’s total assets grew by 9.93% in 2021 to reach Ksh 807.11 billion from Ksh 734.22 billion recorded in 2020.
Although growth rates on the key performance parameters of Sacco during the year 2021 were slower than that recorded in 2021, and principally attributed to the after-effects of the COVID-19 pandemic and erratic weather patterns, Ollin Sacco remained resilient posting increased growth across all parameters which were bolstered by bold strategic management implemented by the Board.
An analysis of the Sacco’s financial statements shows that it shall continue to have a competitive edge in the returns earned by the members, growth and service delivery. The Sacco business model is currently focusing on leveraging on information and communication technology to improve efficiency and enhance convenience to ensure customer satisfaction.
According to Mr Albert Ndegwa, the Board of Directors Chairman, the Sacco’s topmost goal is to increase membership to more than 40,000 by 2025.
“This is why our major focus is enhancing convenience, which will define our brand and more so service delivery. We have Alternate Delivery Channels that members can always access at any time, any place. At Ollin Sacco we know and understand the Time Value for your money,” he states.
Another line of interest for the leading Sacco is enhancing its education and training programmes aiming to avail as much information to members for improved patronage of products and services. The education forums also enlighten members on personal financial management, investments, personal health, and cooperative governance and legislation.
The Sacco recently organized members’ information day in all its branches countrywide. “We believe in empowering our members through information. An informed member will always make the right decision at the right time,” says Ollin Sacco CEO Mr John Gathige.
