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Here’s to success and prosperity as Ukulima Sacco celebrates 50 years
from Issue 39
Sacco Chairman Dr. Philip K. Cherono Cooperative PS Ali Noor
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PS Ali Noor and National Chairman Dr. P.K Cherono during the 50th Anniversary celebrations
By Our Correspondent
Since its establishment in 1972, Ukulima Sacco has made significant strides in helping members achieve their financial goals while also actively supporting growth in Kenya’s cooperative industry.
As Sacco celebrated 50 years in March 2022, total assets increased by 8.2 percent to KSh13.78 billion in the fiscal year ended December 2021 from the KSh12.74 billion reported the previous year.
Sacco Chairman Dr. Philip K. Cherono said membership of the Sacco grew by 10.1 percent to 45,806 compared to 41,589 in 2020. Dr. Cherono was speaking during Sacco’s 50th-anniversary celebrations held at Serena Hotel, Nairobi.
In the period under review, Sacco increased its loans and advances to the members by 8.5 percent to 11.05 billion in 2021 from 10.18 billion in 2020.
Further, Sacco increased its total revenue by 15.3 percent to KSh1.79 billion in 2021 from KSh1.56 billion in the previous year.
Additionally, total interest income increased from KSh1.43 billion in 2020 to Ksh1.66 billion in 2021, representing a growth of 16.1 percent.
During the year under review, Sacco was able to comply with all the prudential ratios as required by the Sacco Society Regulatory Authority (SASRA).
The above achievement is a great milestone for the society as it celebrates its 50th anniversary, explained Dr. Cherono adding that the society will strive to ensure the above ratios are maintained and improved further.
Commissioner of Cooperatives David Obonyo
Following the impressive performance print, the society proposed interest on deposit at a rate of 9 percent representing a payout of KSh748.5 million compared to KSh700.7 million paid in the previous year, which was a rate of 9 percent. This implies that members are getting an increase of KSh47.7 million.
In addition, members will be receiving dividends on shares held as of 31st December 2021 at a rate of 10 percent or KSh88.4 million for both share capital and Ukulima Headquarters investment shares.
The Sacco registered the portfolio at risk rate (PAR) at 5.6 percent for the year ended December 2021 compared to 4.2 percent reported in 2020.
The Average PAR in the Sacco Subsector as of December 2021 was 7.4 percent meaning the society’s performance was modest despite not achieving the regulatory standard of 5 percent.
The loan Portfolio at Risk (PAR) trend was higher than for the previous year mainly due to; Cumulative socioeconomic effects of the covid-19 pandemic where an increased number of loans were under-performing, the Chairman noted.
The government’s withdrawal of Covid-19 tax reliefs and introduction of the civil servants’ contributory pension scheme caused a strain on many members’ capacity to maintain their loan obligations, Dr. Cherono said.
Other progress made by The Sacco in 2021 includes the partnership with Kenya Mortgage Refinancing Company (KMRC) to support the affordable housing pillar of the government’s big 4 agenda.
To this end, Dr. Cherono said that Sacco has tailored the Makao Home Plan product to serve both the low- and highincome earners.
Members earning less than KSh150,000 shall be accessing a maximum of KSh4 million home loan repayable within a period of 20 years at an interest of 7 percent annual reducing balance while borrowers earning more than KSh150,000 shall access a maximum of KSh8 million mortgage at an interest rate of 9 percent repayable in 20 years.
“I wish to assure members and the general public that Ukulima Sacco shall strive to live true to its purpose which is: To be a world-class preferred financial partner”, through its mission, “to transform lives through resource mobilization and provision of innovative financial solutions,” said the Chairman.
Ukulima Sacco national chairman Dr. Phillip Cherono hands over a trophy to ps Ismail Noor during the saccos 50th anniversary. Looking on is CEO Richard Nyaanga
