Harambee Sacco's net profits grew by 85.7 per cent to Sh 100 million in 2019 from Sh 53.8 million recorded in the previous year.
Loans disbursed grew to Sh18.3 billion from 15.4 billion, recording an 18.8 per cent growth, however with the high loan demand the sacco had disbursement constraints due to liquidity challenges.
"The sacco’s total assets increased value by 12 per cent to Sh29.5 billion, this was attributed to the growth of the loan book and reevaluation of the society assets,” states the the financial statement.
Operating revenue grew by 12.6 per cent to Sh3billion.
Members deposits and savings grew to Sh20.1 billion in 2019, however the sacco experienced high rate of withdrawals forcing it to pay out Sh1.34billion to 5455 members.
The directors recommended a payment of 6.5 per cent of share capital as dividend and 6.5 per cent interest on members deposits.
The society also lost 14,400 members in the last three years, majority of the exits are attributed to retirement within the civil service which forms the Sacco's core membership.
In July 2019, the President gave a directive for a Sacco Societies Fraud Investigation Unit to be set up to rein in rogue Sacco officials.
According to the Sacco Societies Regulatory Authority (Sasra), the Kenyan deposit-taking sacco segment has remained robust with total assets growing to over Sh400 billion.
Harambee Sacco has over 80,000 members in 174 branches across the country.
It draws its membership mainly from, Kenya Defence Forces, National Police Service, National Youth Service, national and county governments, government parastatals and departments and constitutional bodies.
