Page 29 - Ramco JO SACCOStar _Vol 50.indd
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FINANCE AND INVESTMENTS
SIMBA CHAI SACCO records GROWTH
DESPITE TOUGH YEAR
Simba Chai SACCO Chairman Mr. Joseph Mitei Simba Chai SACCO CEO Mr. Wesley Ngeno
By Noah Amunga “This growth is attributed to the opening of Similarly, net loans and advances stood
the SACCO’s common bond to include non- at Sh858 million in 2019 while the share
Simba Chai SACCO posted a 15 per affiliated members of the parent company capital increased by 3 per cent to stand
cent increase in profit before tax for and this means that interested institutions at Sh50 million in 2019 up from Sh49
the year ended December 2019, the were recruited to join Simba Chai SACCO,” million in 2018.
Society’s financial statements show. Mr Mitei said.
Also, member deposits suffered a
Profit before tax increased to Sh35 They include Outgrowers, Mbogo reduction to stand at Sh664 million
million, up from Sh31 million the Valley, Mau and Kuresoi Tea factories, compared to Sh759 million recorded in a
previous year. groups, and any willing member of the similar period in 2018.
community.
This is despite the Society experiencing The Society managed to sustain strong
slow growth in the first quarter of the year Speaking during the release of the financial ratios when contrasted with
under review due to restructuring in the financial statements during the 42nd the regulator’s threshold and was able to
parent company, low loan demand from Annual Delegates Meeting (ADM), Mr maintain its financial soundness.
which the Society derives a larger portion Mitei reported that the Society’s revenue
of revenue on interest charged, and also stood at Sh160 million at the end of SACCO members can now enjoy products
inflation rate that stood at 5.6 per cent. 2019 while the total interest income was and services in real-time, following the
Sh146 million by the close of the year rolling out of an ERP system that saw
The SACCO attributed the growth under review. improved service delivery and the launch
to the loyalty and commitment of of a mobile banking platform.
its membership who patronized the “Due to business challenges experienced
Society’s financial products and services in the first quarter of 2019, the “The Society was able to cater for its
and aided in spreading the good news management strategised to reduce departed soul’s families and a decent
about the Society to other people. operating expenses to reduce liability. In send-off to the deceased. Also, the liability
this regard, the administrative expenses of loans taken by the late was written off
The Society’s leadership, headed by the reduced by 38 per cent to stand at Sh36 thanks to existing policy on the same.” Mr
Chairman, Mr John Mitei also applauded million down from Sh49 million the Mitei said.
the management and the staff for working previous year,” Mr Mitei said.
tirelessly to ensure sound financial The Society looks up to actualizing the
standing of the Society. The Society had total assets amounting to strategic five-year plan formulated in
Sh1.23 billion by the end of 2019, a 7 per 2019 with a new vision of ‘To be a trusted
A similar projection was exemplified cent decline compared to the previous financial institution that empowers its
in the total number of new members year. members and community in changing their
joining the SACCO which stood at 15,690 lives for prosperity.’
members as at the end of December
2019, up from 14,390 members in 2018,
representing a 9 per cent growth.
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