NewFortis members pocket Sh740m dividend payout

NewFortis members pocket Kshs 740m dividend payout

Board Members Ms Margaret Macharia and Francis Kamau discuss the financial results during NewFortis 46th AGM.

By Rose Njoroge

NewFortis SACCO members walked home with a smile on their faces after receiving a Sh740.8 million dividend and interest payout, a remarkable increase from the Sh662.89 million they pocketed in 2020.

This is after the SACCO rallied against the ravaging effects of Covid-19 on business, driven by an impressive increase in interest earnings at Sh1.18 billion up from Sh1 billion in 2020.

The SACCO’s performance was a sign that it had learnt to co-exist with Covid-19 in a terrain where businesses were collapsing as the pandemic’s effects took root.

“The Board recommends a first and final dividend on total share capital at the rate of 14 per cent. It also recommends interest on member deposits at the rate of 12.9 per cent,” read the NewFortis Auditor’s Report.

NewFortis Chairman Mr. John Githinji reads the chairman’s report during their 46th AGM.

NewFortis Sacco CEO Mr. John Mathinji skims through the 2021 financial report before its presentation to members during the 46th AGM.

Similar to the previous year, preferential members will enjoy 100 per cent interest on unwithdrawable deposits to boost them economically and shield them from the effects of the protracted Covid-19 pandemic.

“The year 2021 started on a low economic note. However, due to resilience, patronage and general goodwill of the members, coupled with the commitment and dedication of the staff and prudent management of the board, Newfortis SACCO as at the year ended 2021 indicated a progressive competitive edge and in order to take services closer to the members, the board is looking forward to opening satelite branches in Mukurweini, Kiawara and Naru Moru as well as main branches in Thika and Kitengela in the near future.” Said the Chairman Mr John Githinji during the SACCO’s 46th annual general meeting held in Nyeri on 15th January 2022.

To give healthy dividends to its members, NewFortis has invested in several institutions with the bulk of their money going to KUSCCO, which is the umbrella body for SACCOs, at Sh89.23 million followed by the Cooperative Bank at Kshs 36.24 million

Its statutory reserve grew from Sh25.44 million in 2020 to Sh34.03 million in the year under review. A statutory reserve ensures that each SACCO maintains a level of capital which is adequate to protect or cushion member deposits and creditors against loss as required by the SACCO Societies Regulatory Authority (Sasra).

Mr Gitau of Mariara Kigotho and Associates (Auditor) reading the audited financial report to the sacco members during their 46th AGM in NewFortis Sacco Verve representative Mr. Titus Makokha addresses the sacco members on the need to have a verve EMV chip card for financial transactions.

The Chief Guest, Nyeri County Governor Hon. Mutahi Kahiga addresses Sacco members on the Sacco’s Great financial milestones.

NewFortis Sacco members applaud the Sacco management for the great financial performance despite the effects of the Covid-19 pandemic.

Members’ deposits

Even as economic fortunes continued to take a hit in 2021, NewFortis SACCO members grew their deposits from Sh4.99 billion in 2020 to Sh5.58 billion in the year under review with loans growing to Sh6.11 billion in 2021 up from Sh5.76 billion the previous year.

The SACCO maintained its track record of holding their AGMs first with the planning team ensuring it was carried out seamlessly and without any hitches.

Commenting on the continued confidence by members in the cooperative movement, the supervisory committee chairman Mr. Charles Wahome said that the SACCO model is enviable for solving the challenges facing diverse communities which have been amplified against a new backdrop of insecurity and inequality emerging on the back of the pandemic.

He added that the confidence in SACCOs was powered by improving knowledge on cooperatives, effective communication of their benefits and an understanding of the cooperatives. “It is important to note that the SACCO has remained vigilant in mitigating these challenges and I urge young people to seek ways of understanding and engaging with the cooperative model,” said Mr Wahome.

The SACCO opened doors to 1,962 new members to shore its numbers to 17,720.

“We will continue marketing to capture all potential members,” said Mr Wahome while requesting all retiring members to retain their relationship with the SACCO.

Growth in assets

The SACCO recorded an impressive growth in assets coming strong from Sh8.18 billion in 2020 to hit the Sh9.21 billion mark.

Remarking on their risk management model, Mr. Wahome said that they were able to payout benefits to next of kin to families of members who had passed on in 2021. “We encourage members to keep updating their next of kin cards to ensure efficiency in the operations,” he said.

As the SACCO looks to creating an even brighter future, the chairman said the society was venturing into new information, communication and Technology (ICT) spaces to make cashless transaction a reality for majority of members.

“The NewFortis SACCO is in the process of coming up with agencies to take services closer to its members,” said the Chairman Mr Githinji.

Premier member

Nyeri County Governor His Excellency Honorable Mutahi Kahiga who was the chief guest at the AGM lauded the SACCO for its performance.

“As the country embarks on recovery from the ravages from Covid-19 and discovers a new normal, it is very reassuring to see this institution stand strong. I commend the Board of NewFortis for choosing to stand with its members and in deed by paying out its dividend to cushion them from the economic shocks during a very difficult time,” said the Governor.

Stressing the importance of the cooperative movement, the Governor said that his government recognizes cooperatives as the key driver of the social and economic transformation agenda.

“Cooperative societies help their members pull resources together for shared prosperity. Forty per cent of our population is enrolled in one cooperative or another. As you all know, I am an active member and was once an official in this society. I openly associate my rise in politics to the humble nurturing I had here in NewFortis and thank you for electing me as a supervisory committee member in those years,” said the Governor.

NewFortis SACCO chairman also said that the Mweiga land project which the society had embarked on was nearing completion with more than 340 families already settled in the project.

“The aggregated demand demonstrated by this project dictate that the SACCO engage in other such projects to assist its members to own homes,” said the chairman Mr Githinji.

Nyeri County Governor, Mutahi Kahiga issuing sacco members with Verve EMV chip cards during their 46th AGM in Nyeri town.

NewFortis members follow the presentation of financial results during the 46th AGM.