The Sacco is also set to introduce new products as it seeks to grow business
By Wesley Ken
Kimisitu Sacco will now offer Front office Services (FOSA). The resolution was unanimously passed by members during the Society’s 34th Annual General Meeting (AGM) held recently at the All Saints Cathedral in Nairobi, elevating the Sacco in the top league of financial institutions.
This development places the Sacco among over 170 Deposit Taking Saccos (DT-Saccos) in the country, under the watch of the Sacco Societies Regulatory Authority (SASRA).
The Sacco, which a few years ago joined the Tier One category of Saccos with an asset base of above Sh5 billion, is set to improve its products and services to members with an eye to generate more income and guarantee good returns on members’ investments’.
According to Annual Report and Financial Statement for the year ended December 31st 2018, the Sacco maintained an impressive performance posting a turnover of Sh703.3 million, an increase of 13 per cent, compared to Sh 623.4 million in the year 2017.
Member deposits grew by 14 per cent to stand at Sh 4.7 billion in 2018, from Sh4.1 billion that was reported in 2017, while loans to members grew by 11 per cent to Sh 4.8 billion. This growth was attributable to improved loan processing by the society.
The Sacco’s total assets stood at Sh6.05 billion up from Sh 5.15 billion in 2017, representing a 16.5 percent growth.
Kimisitu Sacco core capital ratio stood at 10 per cent from 8 per cent, while institutional capital was 7 per cent up from 5 per cent compared to the prudential requirement of 10 and 8 per cent respectively.
The society also had a significant growth on the share capital from Sh129.1 million in 2017 to Sh 213.1million in 2018, which was boosted by share drive.
Addressing members and invited guests during the meeting, Mr Philip Oyuko, the Chairman to the Board of Directors, said that the Board had introduced new products.
He noted that M-KIMISITU was successfully rolled out in May last year and had made commendable growth. The Online Loan Application is currently on pilot process on selected products and is expected to improve the loan turnaround time. It is expected to be rolled out in the second quarter of this year.
Mr Oyuko noted that the Sacco’s 2016-2017 Strategic Plan is rooted on four major pillars which are: financial, customer, internal business processes and learning and growth.
“We are committed to achieve 100 per cent customer satisfaction and customer experience on service delivery to our members,” he said.
Established 34 years ago with just two members of staff – now 40, the Sacco continues to offer its members quick loan processing, unrivalled customer experience, competitive interest rates, efficient ICT. Its Web portal remains one of the most attractive.
In addition, members get free financial advice, opportunities to invest with Kimisitu Investment Company Limited as well as saving and borrowing three times their deposits.
Currently, the Sacco is in the process of implementing a Customer Relationship Management system, in line with its strategy. The CRM will assist the management to be effective on emails and calls in order to help the Sacco focus on customer relationship and interactions.
It will be integrated with the call center and Electronic Management System (EDMS).
The system will ensure fast and efficient electronic access to physical documents, the correspondence associated with the loan processing as well as improved turnaround time for members loan processing. This will in-turn reduce the time and manpower currently spent manually printing hard copy loan documents and also clean up all data to ensure digitization of all the existing member records.
With fully automated processes, members will be able to access all our product and services online, more efficiently and effectively – making Kimisitu a paperless Society
The CRM will equally help the Sacco to have a holistic view of customer relationships with centralized information enabling the Secretariat to serve members from a single point of contact.
Ms Catherine Odhiambo, the Sacco’s interim CEO, expressed her pleasure in announcing that Kimisitu was able to fully comply with IFRS-9 in the year 2018, saying that the results were favorable, leading to low loan loss provisions. She urged members to make timely loan repayments as well use collateral where possible as security against their loans.
“Our vision is to be the personal financial solutions provider of choice,” she concluded.
The Sacco paid 11 per cent interest on members’ deposits and dividend at 20 per cent on share held as at 31st December 2018.