Nyati SACCO posts remarkable growth in 2020

SACCO leaders participating during the 2020 Annual Leaders' Summit. A section of Nyati SACCO delegates pose for a group photo with CEO Mr Julius Bett during the 2021 ADM in Nairobi

By Alfa Weru

Nyati SACCO registered Sh57 million growth in share capital, attributed to the unrelenting commitment by the SACCO leadership. This was revealed by the SACCO Chairman Mr Charles Mbuvi in a recent meeting. The Society’s financial statements show a 13 per cent growth in assets to Sh3.79 billion, an increase of Sh426 million. The loan portfolio increased by 2 per cent equivalent to Sh57 million from Sh2.99 billion to Sh3.052 billion during the year under review. “The SACCO has continuously reviewed its loans products and services to accommodate the prevailing market trends and as a result, members can access multiple long-term loans at the back office where there are various tenures of up to 72 months,” the Chairman said.

According to the Chairman, FOSA, the banking arm of Nyati SACCO, is providing basic banking services to members and its performance is tremendously impressive since its inception. The FOSAs grand income and net operating income for the last three financial years has been Sh40.79 million and Sh9.77 million in 2018, Sh57.84 million and Sh29.49 million in 2019 and Sh70.04 million and Sh48.10 in 2020.

Still, on the growth track, deposits from members also increased by 9 per cent equivalent to Sh191 million from Sh2.20 billion in 2019 to Sh2.39 billion in 2020.

“There is a small variance of Sh782 million between loans and deposits. To enable us to bridge the gap, the SACCO has proposed that effective from 2020, it shall be mandatory for all members of the SACCO to increase their current minimum monthly share contribution by 20 per cent based on their categories,” said Mr Mbuvi.

Total revenue went up to Sh595 million from Sh583 million indicating a growth of 2 per cent while interest income from loans and investments grew by 2 per cent from Sh557 million to Sh569 million during the year under review.

Nyati SACCO Chairman Mr Charles Mbuvi makes his remarks during the 2021 ADM Nyati SACCO CEO Mr Julius Bett during the 2021 ADM in Nairobi

The SACCO managed to reduce its total operating expenses by 15 per cent to Sh140 million in 2020 from Sh152 million in 2019.

“I am very grateful for your continued patronization of the SACCO products and services. The above statistics indicate that our SACCO was able to record remarkable performance despite the many economic challenges in 2020, facing financial institutions, that range from inflation, slowed economic activities, unemployment, drought, locust invasion, global COVID-19 pandemic and its associated impacts,” said the Chairman.

On membership, he expressed confidence that although member recruitment was a challenge in 2020 due to the impact of COVID-19, the introduction of micro-agency banking, while leveraging on SACCO’s processes and procedures, will grow the Society.

Moving on

The SACCO intends to introduce FOSA agency services and new satellite branches, among other innovations to address the increased demand for services to enhance members’ investment opportunities as well as reach new potential. “As the management, we continue to be responsive to members needs and taking services closer to them through the mobile platforms,” the Chairman announced. The SACCO also plans to automate loans. “From April 1, 2021, all loans below Sh100,000 will be applied for online and through mobile phones to increase efficiency and effectiveness,” the Chairman reported. The SACCO will undertake brand repositioning to enable it change its operations, increase visibility, possibly attract more customers and enable it to deliver on the objectives set in the strategic plan. “Members will be called upon to participate in the suggestion of a suitable name for the Society and the exercise will be open to all. The winning member shall be given a token of appreciation upon the closure of the challenge,” said the Chairman.

The SACCO’s benevolent fund was also enhanced to cover for insurance of both member deposits and loans as opposed to the past where the fund has been catering only for bereavement expenses. He was speaking to delegates during the 2021 Annual Delegates Meeting (ADM) in Nairobi which saw three board members and one supervisory committee member who were retiring from the board re-elected to serve for another term. The elections were carried out by Nairobi County cooperative officers led by Madam Roselyn Mwithiga from Starehe subCounty. She encouraged the SACCO to continue with savings mobilization to increase the SACCO’s stability. “I am happy for you for joining the club of billionaire cooperatives. The Government is working on a policy to harmonise the operation of SACCOs. Currently, we are operating with policies that existed before devolution,” she said.