By Richard Shichangi.
Members of Mudete Tea Factory Growers and Savings Co-operative Society have approved an ambitious Sh 34.8 million budget for the Society for the next financial year.
Considered a giant, Mudete Sacco, located in Kakamega East Sub County, held its Special Delegates Meeting recently at Sacco Plaza where delegates unanimously approved the budget.
Mudete Sacco, which draws a large bulk of members from tea growers, has also opened its common bond and now recruits youth and women groups as well as individual business people and salaried workers.
“We are in the process of rebranding to attract more members. We have more than 7,000 members spread across Kakamega and Vihiga Counties. We have also opened a new branch at Mbale and we intend to open more in the coming months,” said Bitinyu.
The Society is located at Mufate G plaza, a three storey building located at Khayega market Kakamega East Sub County, Kakamega County, 10 kilometres from Kakamega town along Kakamega- Kisumu highway next to the Administration police post.
The office block measures 60×40 sq. feet and is ideal for banking facilities, hotel, supermarket, mall, colleges and offices space with ample parking space. The building has piped water, power with stand-by generator.
The Society’s office borders St Elizabeth Mukumu hospital , Kakamega air strip, Rondo retreat , Sigalagala National Polytechnic and the famous crying stone known locally as Ikhunga murwi from where one can see Khayega in the background.
The Society has so far given out loans totaling Sh 88.5 million to members at an interest rate of 11.5 per cent compared to Sh 74.5 million disbursed the previous financial year at an interest of 8.6 per cent. “Members should strive to repay their loans promptly in order to benefit from improved service delivery,” said Ainea Mangira, Mudete Sacco Chairman.
Mangira reminded members to apply for the various loan products offered by the Society and ensure they repay their loans promptly so as to benefit from the forthcoming bumper tea bonus payments. He revealed that the Society has already enlisted with Metropolitan Credit Reference Bureau and will soon blacklist all loan defaulters.
During this meeting, Mangira appealed to delegates to get involved in recruitment of new members so that the target of recruiting 1920 members by the end of 2016 is met. This is if each delegate and staff recruits at least two new members per month.
“We will hire a marketing executive to assist in the process of recruiting new members so as to improve the Society’s capital base. We are in the process of acquiring a more robust and secure management information system so that we improve on efficiency,” said Mangira
He disclosed further that the Society is currently improving its credit policy that will enable it request for collateral for huge loan requests from members so as to safeguard itself from high default risks. Mangira announced that the Society had revised downwards rates on most products by between 2-5 per cent on reducing balance. This is to enable the Society compete favorably with rates offered by commercial banks, now at 14 per cent.
Mudete Sacco has put up a multi-million four-floored commercial building that will enhance the Society’s operations and access to members while also boosting its capital base.
“The building is almost complete and will be commissioned in the next coming months for potential tenants looking for rentals or seeking to lease office space. We hope to generate income for the Sacco and this will translate into improved dividend payouts to members,” said Antony Bitinyu, CEO Mudete Sacco.
Bitinyu added that construction of the commercial building has been funded by funds from members and praised them for supporting this project which will, definitely, improve their fortunes.
This Special Delegates Meeting was attended by Caleb Wafula, the Kakamega County Cooperative Officer, Zablon Onyango- Mudete Sacco Vice Chairman as well as Samuel Muhanji- Secretary and John