By Our Reporter
Bukhungu Savings and Credit Cooperative Society plans to construct an office block in Kakamega town at a cost of Sh 66million, the chairman, Ernest Ikoha, has said.
Speaking to Sacco Review in his office, the chairman said that Phase One of the project that will house the Sacco offices will cost Sh10 million while Phase Two to house the investment wing will cost over Sh50 million.
He said the management is to partner with Invest and Grow Sacco in the project via the Sacco’s investment wingnoting that the Commissioner for Cooperatives has advised that they borrow loans since members’ money is not supposed to be spent for such a project.
“We have been advised by the Ministry of Cooperatives and Marketing Development that we are not allowed to use members’ funds towards the project whose total cost is estimated at Sh66 million,” he reiterated.
Ikoha said the Sacco that has 495 members drawn from Kakamega and Vihiga County governments had its share capital increase from Sh5,299,058 in 2014 to Sh7, 091,915 in 2015, an increase of 33.8 per cent while members’ deposits increased from Sh39,047,701 in 2014 to Sh45, 561,528 in 2015 an increase of 16.7 per cent.
On Members, he said, unanimously resolved to raise their monthly contribution from Sh2,000 to Sh2,500 to strengthen the Sacco’s capital base.
The Chairman also observed that the Sacco had achieved he requisite core capital as recommended by the regulator, SASRA to operate Front Office Services Activity (FOSA).
The Chief Executive Officer Isa Wawire (pictured) noted that the Management is carrying out a rigorous recruitment exercise in the two counties and targets over 2000 members by 2018.
“Our Sacco declared 10 per cent dividends on members’ share contributions and a further 4 per cent onmembers’Monthly Minimum contribution in the year under review,” said the CEO.
He said that the Management is planning to selling shares to members through shares drive initiative.
MrWawire said that the Sacco would rebrand for a wider market and creation of more products and financial services.
By Our Reporter