By Benedict Ng’etich
The Kenya Highlands Sacco management has been consistent in adhering to the prudential ratio requirements set by the regulator SASRA.
The chairman of the Supervisory Committee CPA Paul Chirchir, while commending the management for its efforts in managing finances, encouraged them to keep on improving on the savings-to-total assets and on the net loans-to-total assets.
“These two ratios are critical in determining the profitability of the Sacco and at any one time should oscillate between 70 per cent and 80 per cent. As at December 31, 2022, savings-to-total assets increased by 0.3 per cent to settle at 63.9 per cent and net loans-to-total assets increased by 8 per cent to give an improved figure of 65.4 per cent compared to the previous years,” Chirchir said.
The long serving Sacco official noted that the society has been meeting most of the required ratios, which he observed was an indication that loans will continue to grow.
During the meeting, the delegates, through popular vote, opted for more effective measures to be adopted for loan recovery, including the use of auctioneers.
