GDC Sacco Society Ltd (GDC) has embarked on an ambitious plan to grow its asset base to KSh8.5 billion as it seeks to be among the top 50 Saccos in the country.
The Sacco which currently has over 34,000 members, who are mainly dairy farmers in the agriculture-rich Githunguri Sub-county in Kiambu County, is keen to stamp its presence as a top Sacco according to its Chairman Joseph Mburu.
Speaking during the Sacco’s 21st Annual General Meeting, the Chairman said that they have put in place rigid measures in the 2023-2025 Strategic Plan that will accelerate its growth in terms of membership as well as financial assets.
Mburu pointed out that GDC has already achieved its objective to get to the Tier 1 category by hitting an asset base of KSh5 billion in the year ended December 31, 2023. The asset base increased from KSh 4.2 billion in 2022 to KSh5 billion.
While outlining some of the crucial steps the Sacco has undertaken and achieved to foster its growth, the Chairman noted that they have secured approval from the Sacco Societies Regulatory Authority (SASRA) which will facilitate opening of the Limuru branch.
“The process of opening a new branch in Limuru is currently in the financial stage and we anticipate that it will be operational in the course of the month,” he said.
He also observed that GDC has upgraded its Kibichoi outlet into a fully-fledged branch in a bid to improve efficiency and service delivery to members.
“Our growth has seen us being honored with significant recognitions and awards especially during the National Ushirika Day. They include the Best Sacco in Deposit Management, Most improved Deposit Taking Sacco-Agricultural-Based Sacco and Kiambu County-Lowest PAR- Deposit Taking Super Large Category,” he told the members.
The Chairman also divulged that they are keen on evaluating strategic business areas for branch expansion as they seek to have many outlets across the region in a bid to widen the customer base.
GDC, he said, is also planning to create a revolving fund and segmented training targeting women and youthful members as part of its growth strategy.
“Our vision is to be a trusted partner in social-economic transformation which is an inspiration to transform lives of members through the provision of innovative financial solutions in line with our mission. It is through such strategic guidance that has accelerated the Sacco financial growth,” Mburu said.
In order to maintain high level of proficiency and efficiency, the Chairman said that GDC is investing heavily in putting in place proper ICT infrastructure. This will see members registered biometrically and crucial ICT infrastructure installed to enhance security.
He at the same time noted that there has been a myriad of challenges. He quipped that the taxes introduced by the State including the Housing Levy has reduced profits noting that the deductions from both the employer and employees is being shouldered by the members, who are dairy farmers.
“The enactment of the Finance Act 2023 has brought about the introduction of a raft of tax measures and amendments to the various tax acts which has in turn increased the cost of doing business hence a reduction in the profit margins,” the Chairman said.
He also pointed out that the high cost of living in the country has become a challenge to Kenyans and corporate entities which has been characterised by a general increase in prices of energy, transport and farm inputs.
“This has translated into a higher cost of dairy farming thus lesser incomes and reduced savings leading to increased non-performing loans that continuously eat into our profit margins,” Mburu said.
Meanwhile, the Chairman announced that despite the pitfalls, the Sacco has tremendously grown for the year ended December 31, 2023. He announced that members will enjoy increased dividends which rose from KSh141 million in 2022 to KSh212 million in 2023.
“The board recommends a return of 13 per cent dividend on share capital and 6.5 per cent on member deposits thus a total sum of KSh212, 982, 190 will be distributed to members,” he said.
Members led by Jane Ngoiri hailed the increment in dividends by KSh71 million noting that it will help them address the financial hiccups they have been facing and assist them purchase feeds for their flocks.
By Kamau Njoroge
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