By Jackson Okoth.
Boresha Sacco Society Limited with its headquarters in Eldama Ravine has begun selling shares to its members.
The Society aims to raise a minimum of Sh500 million but has set a maximum target of Sh1 billion, depending on the response of its members.
The exercise is aimed at raising share capital, develop more long term lending products, sort out its liquidity issues and enable more members own the Society.
The Sacco is selling shares to members at Sh100 each with 5 million shares worth Sh500 million being offered. All persons, institutions or groups registered as Boresha Sacco members are eligible to participate.
“The purpose of this shares drive is to raise our capital base, which is still very low. We also want to reduce the high cost of external borrowing so that we can pay more dividends to members as well as sort out some of our liquidity issues,” said Moses Chebor, Chief Executive Officer, Boresha Sacco Society Limited in an interview with Sacco Review at his Eldama Ravine offices recently.
He said the shares drive will enable the Society to raise long term capital to enable it extend the loaning period to members to between 60 to 72 months as well as enable more members own the Society, currently dominated by salaried teachers.
“We want more members, especially farmers and those from the business community, who are still sitting on the fence, to increase their shares in the Society. We also want to increase the products and services range available to members and this is why we are raising the share capital,” said Chebor.
Out of its 60,000 members, the Society is still dominated by 12,000 teachers, leaving out the larger bulk of 48,000 members from the farming and business community, who have yet to buy more shares in the Society.
According to Philemon Chebii, Business Development and Marketing Manager at Boresha Sacco Society Limited, it is this portion of the membership that this shares sale is targeting so that they can increase their shares.
He said the Sacco already has sales officers in the field to sensitize farmers and those from the business community on the need to buy more shares in the society.
“We will also be doing breakfast meetings in all the respective branches, setting up desks within the branches and using our employees to market the shares drive,” added Mr Chebii.
He outlined an elaborate shares sale campaign involving among others local radio talk shows and adverts in the electronic media, printing of bronchures and flyers to reach out to more members.
“We are confident that the strategy we have put in place that will also involve delegates and the Society’s board members will succeed in educating and training our members on how to participate in the shares drive and why,” said Chebii.
While most of the teachers have shares above Sh30,000, the same is not the case for farmers and the business community members, majority maintaining the required minimum of Sh1,800. Data and analysis by Boresha Sacco management shows that there are those in the business community who have the potential to raise their shares to above Sh100,000.
Although the Sacco Society Regulatory Authority (SASRA) approved the request by Boresha Sacco to conduct a shares drive in July, 2015, it took more than a year before the exercise officially kicked off in July this year.
“We were seriously affected by the teachers’ strike which begun in August last year and could not therefore launch the shares drive. In the first quarter of this year, members have been preoccupied with such issues as school fees, planting season and farm production and this is why we felt the timing was not right. After the campaign we plan to sit down and assess the situation again,” said Chebor.
Figures indicate that so far, Boresha Sacco has been able to raise its share capital from Sh73 million to the current Sh240 million.