- The Saccos total assets grew from Sh. 4.5 billion to Sh. 5.6 billion last year, elevating it to tier one Sacco status.
- The firm has attributed the growth to an intensive shares mobilisation campaign and its members embracing digital banking.
Image: ALICE WAITHERA
Murang’a-based Amica Sacco has announced a 24.4 per cent growth during the last financial year even as the country grapples with a struggling economy.
The sacco’s total assets grew from Sh4.5 billion in 2020 to Sh5.6 billion in 2021, elevating the sacco to tier one status.
Tier one status is enjoyed by saccos with assets totalling more than Sh5 billion.
The firm’s loan book also grew from Sh3.8 billion to Sh4.6 billion, with 66 per cent of the loans being taken by traders, while 18 per cent went to farmers.
The rest were taken by salaried people, institutions and chamas.
The enhanced loan book helped increase the firm’s revenue to Sh980 million by December 2021 as compared to the Sh 773 million it raised in 2020.
An intensive shares and funds mobilisation campaign saw the firm’s share capital improve by Sh101 million from Sh534 million to Sh635 million, registering an 18.9 per cent growth.
The Sacco Societies Regulatory Authority permitted the Sacco to issue dividends on shares at 5 per cent and deposits at between 6 and 10 per cent.
Meanwhile, deposits made through its affiliate company Amica Ventures will get dividends at 6 per cent on pro-rata basis.
The firm credited its success to the heavy investment it has done in digital banking, which has allowed majority of its members to access its services away from the banking halls.
Last year, the firm mobilised Sh2 billion through merchant settlement and Sh1.8 billion through its paybill.
It has more 360 agents spread across Kiambu, Murang’a and Nairobi counties.
The agents registered more than 260,000 transactions worth Sh774 million in deposits and Sh720 million in withdrawals.
Amica Visa card recorded more than 12,000 transactions, amounting to Sh94 million while 14,497 cheques were cashed, transacting Sh 3.1 billion during the year.
But CEO James Mbui said the non-performing debts increased in the year as many members struggled with the effects of the Covid-19 pandemic.
“We have rescheduled the loans and hope that they will be serviced as the economy continues to recover,” he said during an Annual General Meeting on Friday.
He further said the tea and coffee sectors are also doing well, indicating that farmers will be getting more returns and will therefore be able to repay their debts.
Nairobi branch that relies heavily on traders was worst hit last year, but Mbui said it is currently among the top performing branches since January this year.
He said the firm’s objective this year is to increase its loan book to Sh5.5 billion and its deposits to Sh1.2 billion to increase its revenue.
“Our focus in on customer relationship. We want to make our customers’ experience as easy and memorable as possible,” he said, adding that 55 per cent of the customers have embraced digital banking.
Chairman Hezron Muchiri said the Sacco plans to relocate Kagundu-ini branch in Kandara to the vibrant Kabati town, saying it has been facing challenges such as low growth and inadequate space.
The management is also refurbishing Kirwara branch in Gatanga to increase its visibility and enhance its services.
(edited by Amol Awuor)