- Board chairman Bernard Ngunjiri said the increase in revenues was a sign the sacco was recovering from the effects of the Covid-19 pandemic.
- Ngunjiri said the sacco expects revenues to increase in 2023 despite the economic downturn.
Members of LOMPASAGO Sacco have a reason to smile after the financial entity announced a 14.7 per cent rise in dividends.
The sacco, whose membership comprises boda boda riders, mama mbogas, taxi drivers, security guards and employees from cleaning companies, said dividends increased from Sh35 million in 2021 to Sh40.1 million in 2022.
Addressing an Annual General Meeting at City Stadium on Sunday, board chairman Bernard Ngunjiri said the increase in revenues was a sign the sacco was recovering from the effects of the Covid-19 pandemic.
“Dividends on share capital will be paid at the rate of 12 per cent while interest will be paid on members' deposits as of December 31, 2022, at the rate of 7 per cent computed on the Straight Line Method,” he said.
Ngunjiri said the sacco expects revenues to increase in 2023 despite the economic downturn.
“If you look at their pay slips, some just earn Sh20,000 but they have been saving the little they can with us,” he said.
He announced revenues of the sacco had increased by 15 per cent from Sh80,855,461 for the year ended December 31, 2021, to Sh93,319,699 at the end of the December 31, 2022, fiscal period.
He said loans with members reduced by five per cent from Sh426,501,104 to Sh404,204,791.
“We are out of the pandemic but things are not very rosy,” Ngunjiri told members.
LOMPASAGO board member Brian Mulama said they would keep targeting small-income earners overlooked by commercial banks and dominant saccos.
“We will give them our best. We will be transparent and generate good income for them,” said Mulama, who is also the Nairobi Education executive.
According to the annual report and financial statements of the sacco, total savings of the sacco stand at Sh482,588,563 with average monthly savings contributions being Sh9.6 million. The average monthly collection stands at Sh30 million.
The chairman noted that the sacco competes and trades in a highly competitive environment dominated by large financial institutions like commercial banks who remain their biggest competitor.
“Despite the competition, we have continued to give our members services as and when they need them,” he stated.
Lompasago Sacco Society was registered on June 20, 1980, by the Commissioner of Co-operative Development, under Co-operative Society’s Act Cap 490 section 7 of the laws of Kenya.
The Sacco’s main aim is to promote members' economic interests through the mobilisation of deposits, savings and investments.
Membership currently stands at 3,800 members drawn from 170 companies. The minimum membership per employer/group is five employees
Ngunjiri said there was minimal growth in the membership at the rate of 5.4 per cent, which was above the industry average reported in the previous year, which stood at 3 per cent.
Ngunjiri said the Covid-19 pandemic posed a myriad of challenges for the sacco but noted that the situation had since improved.
“There are still employers who continue to hold funds of members and this has negatively affected our ability to meet financial obligations,” he said.
“We continue to engage Sasra and seek ways of collecting unremitted funds.”
He said the road ahead remains challenging given the prevailing global uncertainty and tough economic times.