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FINANCE AND INVESTMENTS
KENYA HIGHLANDS SACCO bets on
DIVERSIFICATION to SPUR GROWTH
Mr. Richard Mutai, Chairman Kenya Highlands SACCO Alice Kosgei CEO Kenya Highlands SACCO
By James Kosgei other legal operation requirements like those of the National
Social Security Fund and Income Tax.
Kenya Highlands SACCO is betting on diversification, in
terms of development, to spur growth in the majorly The Society’s membership, spanning across Kericho County,
tea farmers Society headquartered in Kericho County. increased by more than 7000 members, representing 9 per
cent to stand at 92,500 in the year under review.
According to the Society, the fluctuating nature of tea prices
at auction centres and the international market, and reduced According to Mr Mutai, the growth recorded was a good
tea production due to change in climatic conditions continued indication that potential members were confident with the
to deal a blow to the SACCO’s income on interest from loans management as well as the financial health of the Society to
extended to farmers. entrust it with their hard-earned money.
This led to increased non-performing loans and bad debt loan He promised members that his team of management was
provisioning hence reduced income. well versed and trained to deliver cutting edge custom-made
services and products to members and hence asked for co-
According to the SACCO Chairman Mr Richard Mutai, income operation and support.
from tea farming alone could not be entirely relied upon for
financial stability of the Society and therefore diversification Furthermore, Mr Mutai reported that the Society is guided
in business ventures including sugarcane farming and milk by the 2017/2022 strategic plan with the key goal to train
production was the way to go. members and this, he said, was carried out to the letter as
training of management, staff and members was done seven
“Our members are not only tea farmers and hence the need to times in 2019.
spread our wings of investment into other agricultural and non-
agricultural business activities. This includes value addition of The Society’s chairman called on the government and other
available products produced by our members,” said the SACCO related stakeholders to ensure policies that suit farmers,
Chairman during the fifth Annual Delegates Meeting (ADM) especially in terms of tea prices, are enacted.
2020 at Kapsoit Market in February.
He said that measures should be kept in place to cushion tea
He said the SACCO is considering plans to pump investments farmers from fluctuating tea prices at the auction centre in
amounting to more than Sh3 million into buying a stake in the Mombasa, and ensure farmers’ monies are duly paid in time.
apex body, Kenya Union of Savings and Credit Co-operatives
(KUSCCO Ltd.) to increase revenue streams. He added that fertilizer subsidies should come in handy to
reduce the cost of production and to ensure sustainable
The Society reported increased loans disbursed to members to returns to small scale farmers, saying these challenges have
a tune of Sh2.4 billion by the end of December 2019 up from continued to lower the morale and expectations of farmers in
a total of Sh2.3 billion a similar period in 2018. the country.
On this, Mr Mutai assured that the Society’s risk was within
the legal threshold adding that the Society remained fully
compliant to the SASRA regulatory requirements as well as
26 | SACCO Star Magazine
