By Jackson Okoth
Muranga County-based
Mentor Sacco Society
Limited posted a net
surplus of Sh61,212,520 at the
end of financial year ended December
31, 2016. This is compared
to Sh 57,040,879.02 posted
during the previous year.
Interest on loans and advances
rose to Sh635.9 million in 2016
compared to Sh503.7 million
posted the previous year. This
is despite a revision of interest
rates by Saccos to respond to interest
rate cap of 14 per cent for
commercial bank loans.
Mentor Sacco Society has issued
a notice to all its members
that the Society’s Annual General
Meeting will be held on February
25, 2017 at Murang’a Sports
Club commencing at 9.00 a.m.
According to its current financial
statement, Mentor Sacco
increased the amount of loans
to members to Sh4,608,599,458
from Sh3, 150,143,542 recorded
in 2015.
Member deposits also increased
from Sh2,204,621,249 in
2015 to Sh2,548,520,382 posted
last year. Member Savings also
increased from Sh802.5 million
to Sh 1.04 billion during the same
period under consideration.
This impressive financial results
by Mentor comes against
implementation of several strategies
that will enable it survive
any future strikes by teachers,
who form the bulk of its membership.
In 2015, the Sacco increased
its borrowing power, launched
two new products and has been
engaging in an aggressive marketing
and recruitment campaign
to increase its membership.
The September to November
2015 countrywide industrial unrest
by teachers, affected Mentor
and other teacher-based Saccos
with Teachers Service Commission
failing to remit dues to the
affected teacher Societies.
According to Mentor Sacco
Society Ltd Chairman, Simon
Mukunu the lessons learnt from
the 2015 challenges, have stirred
the need to diversify sources of
income for financial independence.
“The Board is proposing to offer
a credit facility to members
willing to start or boost existing
small enterprises.
We are rolling out a new loan
product, known as Fanikisha for
those engaged in business,” he
disclosed.
Mr Mukunu made the remarks
during Mentor Sacco Society
Limited’s 39 Annual General
Meeting held recently at
Murang’a Sports Club, Murang’a
County.
To survive the turbulence,
Mentor delegates approved a plan
by the Society to increase its borrowing
power from the current
Sh200 million to Sh1 billion.
To diversify its loan portfolio,
the Sacco has also reviewed the
loan repayment terms for a number
of its products and launched
new products including a Fanikisha
loan product for businessmen
and a mobile application platform.
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