By MTK Reporter
Worth Noting:
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The National Government through the Ministry of Cooperatives has already declared the union insolvent and many Saccos, including Biashara Sacco, have experienced concerns regarding investments held with KUSCCO.
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Speaking during the AGM held at St. Peter’s ACK Cathedral’s hall in Nyeri town, the Chairman said the Sacco members should not worry much since millions of shillings were saved after swift action by the Sacco.
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“The year 2024 was marked by dynamic economic conditions, including fluctuating inflation rates, technological advancements, and regulatory adjustments in the financial sector. Despite these challenges, the cooperative movement in the country remained resilient, and Biashara Sacco continued to grow and innovate to meet members’ evolving needs.
One of the major challenges faced by Biashara DT Sacco Society Ltd last year was the ongoing financial instability affecting the Kenya Union of Savings & Credit Cooperatives (KUSCCO) particularly the declining value of shares and liquidity constraints.
The Sacco Chairman Joseph Njamuku revealed that the Sacco had invested part of its surplus in KUSCCO deposits and shares through a resolution approved by the Annual General Meeting.
“At the beginning of last year, we held a total of KSh85.4 million in deposits and shares with the KUSCCO. Immediately after realizing the distress, we decided to offset our loan balance with them amounting to KSh51.5 million leaving a balance of KSh37.3 million in shares and deposits.” He disclosed.
He added that through regulatory directives and guidance from SASRA, the Sacco is required to account for the KUSCCO shares and deposits impairment in its books for the next five years as it was observed from the financial statements.
The National Government through the Ministry of Cooperatives has already declared the union insolvent and many Saccos, including Biashara Sacco, have experienced concerns regarding investments held with KUSCCO.
Speaking during the AGM held at St. Peter’s ACK Cathedral’s hall in Nyeri town, the Chairman said the Sacco members should not worry much since millions of shillings were saved after swift action by the Sacco.
“The year 2024 was marked by dynamic economic conditions, including fluctuating inflation rates, technological advancements, and regulatory adjustments in the financial sector. Despite these challenges, the cooperative movement in the country remained resilient, and Biashara Sacco continued to grow and innovate to meet members’ evolving needs.
The year 2024 shall be remembered in the history books of the Sacco as the year that our dream of owning a modern office block in Nyeri CBD was realized. Through the grace of God, we have changed the skyline of the town and settled into the spacious and conducive working environment,” he added.
On financial growth, the Sacco asset base grew from KSh3.26 billion to KSh3.7 billion in 2024 representing 13.6% growth.
On Loan portfolio: Loan disbursement in the year grew by 12.2% from Kshs. 2.76 billion in 2023 to Kshs. 3.0 billion in 2024 while the loan portfolio rose from Ksh. 2.62 billion in 2023 to Ksh. 2.93 billion in 2024 representing 11.4% growth. This was attributed to improved lending policies, robust marketing strategies and enhanced risk management strategies.
On Financial Revenues: Net surplus before tax increased from Kshs.223.7 million to Kshs. 250.1 million in 2024 representing 11.8% growth, allowing us to recommend an attractive dividend payout of 18% on share capital and interest on members’ deposit of 12%.
“Our membership increased from 195,077 to 211,680 in 2024 representing a growth of 8.5%, demonstrating continued interest and faith in our services. Our staff capacity has increased from 253 in 2023 to 268 in 2024, a growth of 5.9%. Our Sacco Agency increased from 536 Agents to 637 Agents in 2024, a growth of 18.8%,” he added.
Some of the achievements for the year 2024 include: Completion of Phase 1A of the Sacco Plaza building in August and the establishment of their head offices and Kimathi Way Branch in the same month.
“We opened Nyahururu Branch in March last year bringing our branch network to 14 branches and 4 Satellites now. We held successful members’ Education in Nyahururu and Kitengela town which had a positive impact in the quality of feedback that we received from our members in these regions,” noted the Chairman.
Biashara Sacco aims to provide financial services and support to its members, who are typically drawn from the business community. Established to promote thrift, savings, and investment among its members, Biashara Sacco operates on the principle of pooling resources to provide affordable credit and other financial products.
Members of the Sacco contribute regular savings, which are then used to provide loans to members at competitive interest rates. These loans can be utilized for various purposes such as business expansion, investment opportunities, education expenses, or any other financial need. By offering financial solutions tailored to the needs of its members, the Sacco plays a crucial role in fostering economic empowerment and growth within the business community it serves.
In addition to savings and credit facilities, the Sacco also provides other services such as financial education, insurance products, and investment opportunities to help members build financial resilience and security. Through these offerings, members can enhance their financial literacy, improve their financial well-being, and achieve their economic goals.