By Bernard Boy
Airports Sacco Society rode on Kenya’s relatively improved economic performance post-pandemic to remarkably register all-round growth in its key performance indicators in the year ended December 31, 2021.
With its asset base, total deposits, share capital, net loan portfolio and total revenue growing by between 4.3 and 19.8 percent (not in that order), the Sacco attributes this milestone in positive growth to its members, who critically informed the theme of this year’s recently concluded Annual General Meeting.
In the period under review, total assets remarkably grew 15.7 percent to stand at Sh950,844,440 in 2021, up from Sh822,099,862 in the corresponding period in 2020, with total members’ deposits rising by 4.3 per cent, from Sh629,142,861 to Sh656,480,094.
On the other hand, Airports Sacco’s share capital grew by 5.8 percent to hit Sh51,169,257 compared to Sh48,373,402 recorded in the previous year. Net loan book and total revenue rose from Sh571,834,540 to Sh689,566,072 respectively, representing a 13.9 percent and 19.8 increase in that order.
During the AGM held at the Crowne Hotel in Nairobi March 26, and themed Sustainability of the Sacco through Member Participation, National Chairman Anthony Kulei passionately outlined a member-owned, member-managed and member-customer model.
In the same vein, Mr Kulei appropriately encouraged the entire Sacco membership to enhance their savings in the form of monthly contributions as well as passionately optimising their uptake of the Sacco products and services.
In return, said the chairman, the Sacco management was committed to continue leveraging on technology to provide more short term loans on its mobile banking platform while introducing investment-driven long-term products at very competitive rates.
From the foregoing, the Board recommended dividend distribution at 17 percent a 2-percentage point improvement on the 15 percent declared in 2020, with interest on rebates at 8 percent against a background of 6.5 percent in the preceding period. Sh6,026,187 of the income would be transferred to statutory reserve with the balance to remain as retained earnings.
Member mobilization brought 138 new members on board, a 4.8 percent growth at 2,181 as at December 31, 2021. The chairman went on to reveal that various growth strategies in membership growth, including developing and signing partnerships with organisations within and around airports, are in the implementation stage.
To reinforce the continued growth of the Sacco in line with envisaged goals, the chairman implored on the Airports Sacco fraternity to keep on operating transparently and accountably, with full participation in AGMs, member education and training.
On member economic participation, members were urged to contribute towards the Sacco’s growth by adopting by adopting a sound saving culture on the one hand, and optimally patronising the products and services at its disposal.
Of note was the Sacco management’s benchmarking initiatives with other Saccos to learn the best practices and strategies. Mr Kulei pointed out that they were currently implementing various strategies geared towards improving service delivery to members, equally attributable to growing the Sacco’s status to a top tier.
These include new core banking system, PABX and SIP line systems, internet and networking and, digitalization of its operations.
Like any other organised house, Airports Sacco bravely bore some challenge, obstacles that in its way to progression during the year under review.
These include the Covid-19 pandemic, new government regulations in regard to exercise duty, competition from commercial banks and band and doubtful loans by former board members and staff.
