Kimisitu Sacco, which was formed in March 1985 by a group of Staff from International Centre for Research in Agroforestry, has rewarded its members with a dividend of 40% on share capital for the financial year ended 2015, which is among the highest dividend payout in the Sacco sub-sector in Kenya this year. In addition to the stellar financial performance last year, the Sacco celebrated 30 years of service delivery to its members too.
Over the years, the Sacco has grown tremendously in membership, loans and deposits. Kimisitu Sacco understands the pivotal role that Saccos play in creating employment opportunities, poverty alleviation and wealth creation in the economy. During the just concluded Annual General Meeting (AGM), Ms. Janerose Mwangi – the Board Chairperson, noted that Kimisitu Sacco had performed relatively well in the industry in terms of both top line and bottom line targets.
There was growth in income earned from loans advanced to members, which is a core business of the Sacco. As a result of this performance, the Sacco was able to pay interest rate on members’ deposits at 10.5% and a dividend of 40% on share capital.
Ms Mwangi noted that Kimisitu Sacco had registered an impressive performance in terms of growth of assets, deposits and loans at a rate of 21.90%, 19% and 26% respectively, which is above the industry average rates. Despite the challenges experienced in the financial sector last year, Kimisitu Sacco was able to give good returns to its members and with stronger capitalization recording a 30.7% on turnover.
To serve its members better, the Sacco plans to build a new five-storey office block in Kilimani area and the ground breaking ceremony will be done in 2018 in line with the 2016-2020 Strategic Plan. The construction of the new office block is part of the Sacco’s expansion plan, which includes rolling out of the Front Office Services Activity (FOSA) by 2018.
In Kenya, FOSAs, which undertake deposits taking Sacco business are licensed and regulated by Sacco Societies Regulatory Authority (SASRA). By growing into a FOSA, Kimisitu Sacco members will be able to access more financial products. The Sacco has over 7,000 members drawn from over 400 Non-Governmental Organizations, Embassies, High Commissions, Foreign Missions and reputable organizations.