By Wesley Ken
Having successfully attained the requisite asset base, Kimisitu Sacco Society is now officially in the tier one category of Saccos.
To give its nod, the Sacco Society Regulatory Authority (SASRA) assesses the concentration risk of a DT-SACCO and its standing among its peer group in terms of total assets in order to assess the unique risks associated with assets, and determine individual strengths.
This bracket consists of Saccos that have an asset base of Sh 5 billion and above, a mark that Kimisitu Sacco has now hit and surpassed.
According to its Financial Statement for the year ended December 31st 2017, the Sacco’s Total assets grew by 18.38 per cent to Sh 5.15 billion up from Sh 4.35 in 2016.
Member deposits grew by 17.1 per cent to about Sh 4.1 billion compared about to Sh 3.5 billion in the previous year. The growth in deposits doubled that of loans going up by 8 per cent to Sh 4.3 billion from about Sh 3.98 that was recorded in 2016.
The Society’s membership grew from 6,325 in 2016 to 7,238, representing a 14 per cent increase. Share capital grew from about Sh 99.7 million to Sh 129.1 million, with the turnover going up by 16 per cent to Sh 0.632 billion up from Sh 0.535 billion that was recorded in the previous year.
The society has, in an effort to meet its members housing needs, revamped the Makao Halisi product to accommodate the conventional way of construction (brick and mortar).
This is aimed at encouraging members who own land and are planning to construct, or those who want to buy ready houses to take advantage of the revamped product.
A Makao Halisi loan is granted up to 5 times of a member’s deposits, payable in 84 months at a reasonable interest rate of 1.16 per cent every month, on a reducing balance.
Guided by the need for members’ convenience in accessing quick services, the Sacco has developed M-Kimisitu mobile loan app in its new system, thus members can now access loan products using their mobile phones.
In addition, a product dubbed Wekeza Scheme has been developed. This product assures members of competitive returns on their deposits.
Members are encouraged to check on the Society’s website for the new products and patronise them, as the Sacco seeks to partner with them.
The Board equally has sent a humble plea to members to encourage their spouses, friends, colleagues, and neighbours in member and reputable organisations to join Kimisitu Sacco in its quest to grow membership and increase its deposits.
The Sacco’s Chairman said he was delighted to report that the member recruitment drive was a success, having recorded the highest number of new members in recent years. Adding that he appreciated the concerted effort from members, encouraging them to keep up with the tempo in 2018.
As provided in the Society’s Strategic Plan, Kimisitu plaza – a modern office facility is set for construction in the near future, to accommodate Sacco growth in customer needs and staff.
In his part, Peter Kariuki, the Sacco’s Chief Executive Officer (CEO) pointed out that in 2017 the Society upgraded its core system from Navision 2009 to Navision 2016.
This is aimed at achieving efficiency in its business processes. The upgraded system will offer automation of process thus reducing on manual process.
Key on automation will be the mobile loan app product, where members will apply for loans via mobile phones, member application and loan application process where applicants will make applications and the guarantors will approve their guarantorship online.
“This will result in better service delivery to our customers, and a shorter turnaround time to avoid inconveniencing our members and a platform where members can access Sacco products and services from their desks,” he said.
During the Ushirika Day celebrations held in July last year, Kimisitu Sacco which was categorised under Tier 1, scooped two awards: 2nd position Most Efficient Sacco and 2nd position Best in Savings.
This year, the Society is set to acquire a customer relations management (CRM) system and document management systems (DMS).
The CRM will support the enhancement of efficiency in customer service, while the DMS carries out the process of digitization of physical records – in view of going paperless.