By Asa Maina
Four-year-old Nyeri South Traders Sacco paid a dividend of 10% in 2020, an increase from eight percent in 2019.
The Sacco chairman Joseph Wanjohi said it had also paid out a dividend of 10% in 2017 and but the payout declined to 4% in 2018.
Speaking during its fourth Annual General Meeting (AGM) in Othaya, the chairman said savings grew from Sh2.7 million in 2019 to Sh4 million in 2020.
Loans disbursed to members also increased from Sh2.8 million in 2019 to Sh3 million in 2020 while the assets grew from Sh3.5 million to Sh5 million.
The Sacco was formed in 2017 by mechanics and other small traders from Othaya constituency in Nyeri County.
Wanjohi said the entity was started as a welfare group and was registered as a Community Based Organization (CBO) with the social services department under the name New Vision.
They rebranded after they were later advised that the groups qualified to be a Sacco.
Wanjohi said the Sacco’s objective is pooling resources together to give members loans and empower them economically.
“Many mechanics were not saving before and we had to convince them to start saving whatever little they earned, pool the resources together, borrow the money and use it to expand their work,” he said.
Membership has grown from 51 members since 2017 to about 86 last year.
It gives loans to members with the credit being guaranteed by their shares and therefore does not need collaterals.
Laikipia Governor Nderitu Muriithi, who was the chief guest during their AGM said 25% of domestic savings are held by Saccos and they are therefore very key financial institutions in Kenya.
He said the county government has engaged Saccos as channels of the county’s economic stimulus.
That, he said, means Saccos can pick some resources from the county’s cooperative revolving fund at around 6% and give it to members at 7%.