Trans-National Times DT Sacco sustains positive momentum

PERFORMANCE

Trans-National Times DT Sacco sustains positive momentum

Sacco Board members, CEO and invited guests during the ADM.

Sacco Chairman Mr. Evans Sichangi addressing delegates during the 33rd ADM.

By Kephas Ayiecha

Members of Trans-National Times Deposit Taking (DT) Sacco have a reason to smile following the impressive performance of their cooperative in the fiscal year ended December 2021.

The SACCO registered a 54 percent increase in investments as well as a 28 percent rise in net revenue in the period under review.

SACCO chairman Mr. Evans Sichangi said the business also registered an eight percent growth in total assets as loans advanced to the savers went up by a similar percentage.

“The Sacco achieved a pretax profit of KSh42.8 million on interest on loans and advances in 2021 compared to KSh19.5 million in 2020,” Mr. Sichangi told the cooperative’s 33rd annual delegates meeting (ADM) at the African Theological Seminary grounds in Kitale. The Sacco did not hold ADM in 2020 and 2021 owing to stringent Covid-19 curbs in Kenya that outlawed physical gatherings to contain the spread of the virus.

In the year under focus, the SACCO earned KSh217.2 million through interest on loans and advances up from KSh184.8 in 2020. Following the impressive results, the members will be getting a dividend payout in May at the rate of 10 percent amounting to KSh12.2 million.

“There is a need by members to invest in income-generating activities to improve our liquidity. We intend to transform the TNT Sacco into a world-class financial service provider by promoting a savings culture and responsible credit use for economic empowerment,” explained the chairman.

During the ADM, the SACCO effected management changes at the helm with board members Mr. Julius Mahanga (outgoing treasurer), Mr. Samson Njenga, and Mr. Lawrence Ilondanga leaving the stage upon the attainment of retirement age.

The three directors were replaced by Mr. Joshua Otwori, Mr. Abraham Kipkoech and Mr. Mulongo Wanjala. Secretary Mr Manoah Alichula

A section of delegates during the 33rd ADM.

said the cooperative, which is set to formally launch its Lodwar branch, has also set sights on growing its presence in Lokichar and Kakuma areas besides Bungoma County.

At the moment, Trans National Times Deposit Taking (DT) Sacco has branches in Kachibora, Endebess, and Kiminini.

The SACCO commended Wamalwa Juma Ben, Wanjala Mulongo, Samwel Esekon Lokol, Kitui W. B. Geoffrey, Phylis Bonareri Ogero, James Hauret Nzinga, Jackson Kitau Masai, Nyongesa David, Esther Wangecii Kamau and George Mbati for being the highest contributors in the last financial year.

The highest savers in the 12-month period were Nyongesa David, Alice Katiegi, Eliud Wesonga Wechuli, Joseline Jeptek, Herman Juma Mohammed, Nyota Sacred Organisation and Kephas Onsinyo, Cheptembai Beatrice, Nyongesa Maurice, and Ibrahim Njenga.

The outgoing treasurer read the budget for 2023, which was approved by the delegates with the Sacco eyeing greater goals in investments to make more returns in terms of savings. “We have also proposed a maximum borrowing limit of Sh500 million. The maximum amount allowed by the SASRA Act is 25 percent of a society’s total assets. For our case, 25 percent of KSh2.1 billion is KSh517.7 million,” outgoing treasurer, Mr. Mahanga, explained.

An independent audit by Growth Path Consultants gave the firm a clean bill of health in line with the International Financial Reporting Standards (IFRS) and the requirements of the Kenyan Cooperative Societies Act 2008, the societies Act and the SACCO by-laws. Mr. Steady Wamela led supervisory committee is, however, proposing the restructuring of various loan products to optimize returns.

“We recommend the phasing out of some products such as the motorcycle loans, and put more funds to Tuliza loan, which increased from KSh37.8 million in 2020 to KSh57.4 million in 2021,” he said.

The Kenya National Union of Teachers (KNUT) Trans Nzoia secretary George Wanjala called on the entity to keep embracing prudent financial management services for the betterment of the savers’ welfare. “Teachers who are the custodians of this Sacco should lead by example by ensuring the funds are well managed to serve the intended purpose,” said Mr. Wanjala.

Started in 1977 by just 200 members the Sacco membership has grown to more than 23,000 savers at the moment.

It was licensed as deposit-taking Sacco in October 2011 and has complied with the rules and regulations by SASRA ever since.

It mainly draws its membership from the Teachers Service Commission employees, the National Police Service, county government employees, as well as individuals from the private and business

The chief guest, board members and other invited guests during the ADM.