By Jackson Okoth.
Harambee Sacco Society Ltd posted a decline in net surplus for the financial year ended December 31, 2016 to Sh100 million from Sh106.7 million in 2015.
Interest on loans and advances rose from Sh1.5 billion to Sh1.6 billion while net interest income fell from Sh570.8 million in 2015 to Sh310.7 million in 2016.
Loans to members increased from Sh10.7 billion to Sh13.6 billion during the period under consideration while its assets in terms of cash went down from Sh146 million in 2015 to a negative position of Sh505.4 million.
The value of the Society’s investment in properties declined from Sh1.6 billion in 2015 to Sh1.4 billion in 2016.
The amount of borrowings by Harambee Sacco rose significantly from Sh687.5 million in 2015 to Sh1.3 billion, pushing up the Societies total liabilities to Sh17.6 billion in 2016 from Sh15.9 billion in 2015.
Its reserves also declined from Sh2.6 billion in 2015 to Sh2.5 billion at the close of financial year ended December 31, 2016.
Harambee Sacco accounts were approved by the Sacco Societies Regulatory Authority (SASRA) on April 6, allowing the Society to hold its Annual Delegates Meeting (ADM) on April 26, 2017.
The Board has proposed dividends at the rate of 9 per cent and interest on deposits at the rate of 7 per cent, to be approved during the meeting.