Page 31 - Ramco JO SACCOStar _Vol 50.indd

FINANCE AND INVESTMENTS

Ndege Chai SACCO Board of Directors being introduced during Annual Delegates Meeting

licensing. As at December 2019, our membership had risen to The management advised on writing off the old loans that have
45,194 representing a 21 per cent increase,” said Mr Sang. failed to be recovered despite the Society exhausting all the
available options.
He reiterated to the delegates on the role played by membership
in the SACCO’s strategic plan as the Society’s business operated The Chairman urged delegates to make sure they service their
on the principle of economies of scale. On this note, the loans to enhance income generation by the SACCO and also to
Chairman said that the membership recruitment drive will be ensure the availability of funds for loans to other members.
one of the key goals of his management in 2020.
This, he said, will cushion the SACCO from borrowing at higher
The Society’s loan portfolio recorded an increase from Sh2.07 interest rates from other financial institutions.
billion in 2018 to Sh2.21 billion in 2019, representing 6.8 per
cent growth. The Society prides in having met the threshold of regulatory
requirements by SASRA, among them a core capital of not less
Similarly, the share capital increased from Sh181.44 million in than 8 per cent.
2018 to Sh195 million during the year under review.

During the ADM, the chairman implored on delegates to consider
a review of some clause of the current by-laws for them to align
with the current operating strategic plan.

“Our by-laws have served us well over the years and whenever
there are changes in the operating environment, we are bound to
amend them to be in tandem. On this note, I wish to submit to you
the proposed by-laws for your deliberation for us to engage the
necessary bodies for amendment,” Sang said.

Some of the changes include an amendment to the current vision
to encompass a new direction and intent of transformation the
Society wishes to take.

According to the Chairman, defaulting on loans by members is Ndege Chai Director SACCO Mr. Joash Korir receiving Certificate of
a key concern to the SACCO. This has driven the management election from Mr. Elias Mwaura KUSCCO Kericho Branch Manager
to implement strategic measures in a bid to recover the loaned
money. Nevertheless, some of the loans have already been
classified as non-performing loans, some dating back as far as
2005.

SACCO Star Magazine | 29