Page 51 - SACCO STAR ISSUE 43

SACCO INDUSTRY WATCH
JUMUIKA SACCO EMBARKS ON
MICROCREDIT BUSINESS ACTIVITIES
TO NET NEW MEMBERS
JJumuika SACCO CEO Kelvin Omiro
umuika SACCO has embarked on micro credit
business activities in order to diversify and
broaden the society’s income base and absorb
risks through mobilization of funds.
The utility set up in April 2017, has increased its revolving better returns for the financial institution by saving more with
capital from the initial Ksh 3 million to Ksh 10 million and
operates in a group based structure, with group shares
acting as security for members’ group loan.
“The emphasis of our newly rolled out utility that is
successfully running in Kisumu and Homa Bay County is
to discover and tap new markets,” said Collins Agai, the
SACCO’s chairman.
Speaking during the 49th Annual General Meeting held
in April, Agai urged members to be good ambassadors of
the SACCO’s products and services in order to boost the
institution’s membership which will consequently lead to
improved savings.
He noted that the FOSA account saw a decrease in the
year-ended 2017 of up to Ksh 30 million due to unhealthy
politics, bad publicity and panic withdrawals from the
membership.
While effecting strategic plan 2014/2018, the society increased
production of segmented customer-tailored products and
services that saw the rise of membership from 1,782 in 2016 to
3,320 in 2017.
Agai encouraged new members to strive towards ensuring
the SACCO’s BOSA and FOSA accounts.
“The SACCO’s total income stood at Ksh 32 million in 2017 from
Ksh 54 million in 2016, a drop majorly due to members’ default
on loans for eight months in a row in the financial year 2017
resulting to delinquency ratio of more than 12% due to salaries
in arrears,” Agai said.
For prudent debt recovery, the management has engaged
Chemilil Sugar Company Ltd, the main business partner, to pay
off long standing overdue debt now at Ksh 23 million.
Total loans extended to members amounted to Ksh 132 million
unlike Ksh 168 million the previous year while members’ total
deposits stood at Ksh 130 million.
“Members’ share capital rose to Ksh 13 million which is a 13%
increase from the previous year while the society’s investments
amounted to Ksh 18 million, a figure maintained from the
previous year,” Agai held.
For improved customer service delivery and unmatched
competitiveness, the institution has banked on new IMS
software that is in the testing stage and is restructuring key
codes touching on its customers.
“The institution has opened two satellite offices in Ndhiwa and
Awasi town, with the latter 85% complete,”he reported.
The over 45 years society that is serviced my members
from stakeholders of the Chemilil sugar company including
employees of the company , sugarcane farmers supplying canes
to the company, contractors, sugarcane transporters, and other
suppliers, was able to meet SASRA’s regulation ratios despite
financial limitations in the local sugar sector.
SACCO Star Magazine |49