Operations at Siaya Ufanisi Savings and Credit Cooperative Society Ltd have been negatively affected as the county government is yet to Ksh3.6 million it owes to the cooperative.
Speaking during the recent ADM, Sacco Chairman Tom Adero noted that despite improved remittances by the current county government, the issue still needs to be addressed amicably since at times, deductions aren’t made and there is no communication regarding the same from the government.
“Between August to December 2022, remittances were not made by the county government hence some members’ loans were not serviced. This negatively affected our profitability and income, leading to a decrease in interests on deposits to 3.1 per cent from 3.36 per cent in 2021,” he explained.
He added: “The delay in the remittances has negatively affected the Sacco’s loaning process. Due to delayed loan deductions, the society lost Ksh206, 212 and Ksh163, 002 in terms of loan repayments and interest on loans respectively. Had these deductions been made in time, we would have done much better during the period under review,” he regretted.
On the Sacco’s financial performance for the year ending December 2022, the Sacco’s revenue reserve grew by 2.5 per cent. The management bought shares worth Ksh100, 000 from KUSCCO LTD bringing the total shares Ksh110, 000 which will earn the society dividends at the end of every year.
The Sacco’s loan portfolio increased from Ksh18, 057, 504 in 2021 to Ksh19, 703 500, a growth of 9.1 per cent. Loans recovered stood at Ksh15, 638, 797 as at December 2022.
He revealed that members have been taking loans for personal development projects which is good since the Sacco charges 1 per cent on reducing balance.
The Sacco is predominantly patronized by employees of the County government of Siaya though it had opened a common bond.
“The county government is in the process of recruiting new employees which is a sure path to increasing our membership. We urge new staff to consider joining the Sacco so as to benefit from our services,” he pointed out.
Plans are underway for the Sacco to open a new office in Siaya town to help bring services closer to members from the region. Currently the head office is located in Bondo town.
By Erick Nyayiera
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