Qwetu sacco upbeat as it unveils Sh 2.3 billion 2019/2020 budget






Qwetu sacco upbeat as it unveils Sh 2.3 billion 2019/2020 budget

Qwetu sacco has weathered the tough political and economic challenges to unveil a more than Sh2.3 billion budget for the 2019/2020 financial year.
Reading the budget estimates during the special delegates meeting held at Vacani hotel at the outskirts of Voi town, Qwetu sacco CEO Mr Charles Kaba pointed out that the budget estimates represented a growth of Sh158m.
The CEO revealed that the lions share (60 per cent) of the projected growth would come from owners’ capital or long term deposits.
“Out of the projected growth of more than Sh 158m,Sh 95m would come from the long term deposits” said Mr Kaba.
Other anticipated growth areas include institutional capital contributing Sh 43m(27 per cent) provisions and other liabilities at Sh24m(15.2 per cent) and demand deposits at Sh 12m(7.8 per cent).
Mr Kaba also revealed that during the 2019/2020 financial year,total earning assets would stand at more than Sh1.86bn(77.8 per cent) while the total non-earning assets would stand at more than Sh531m.
The projected deposits during the coming financial year are estimated to stand at Sh965m, of which Sh 953m would come from long term deposits while the rest of Sh 12m would come from long term SPIF shares.
The CEO at the same time assured the delegates that the sacco management would ensure that there was prudent and focused policies to ensure that the projected growth jumped from the current 7 per cent to higher digits once the economic and business environment in the county improved.
The sacco chairman Mr Alfred Mlolwa revealed that a new office block would be put up in Taveta at a cost of Sh 10m.
“The current office in Taveta is in a pathetic state and we have been in agreement that funds be set aside for the construction of a new office block” said Mlolwa.
The sacco chairman pointed out that the sacco had recorded business growth in various areas for the 8 months up to August 2019 including growth in long term deposits to Sh62m.
“If this growth is sustained, we expect to close the year with a 12 per cent growth”said Mlolwa.
He noted that the mismatch between the growth in loan portfolio and the long term deposits, that is Sh133m and Sh 62m respectively, meant that the growth had been sustained by more expensive sources of capital mainly generated from Fosa and external borrowing.
“This calls for us, as an institution, to market more of our internal cheaper sources of capital like long term deposits and share capital in order to be more profitable in our operations” said the sacco chairman.
MrMlolwa asked the delegates to sensitize the members to increase their monthly savings in order to cushion themselves from the challenges of finance in old age and still gain from the interest payable every year from profits.
Ploughback
He pointed out that during payment of interest on long term deposits, a total of 10 per cent of the interest payable to every member of the sacco would be retained and added up to the long term deposits as plough back.
“This decision was made by members during the education to members meeting.Previously, the board had proposed a rate of 30 per cent, but this was found to be too high and members had to revise it downwards to a minimum of 10 per cent” said Mlolwa.
The chairperson of the supervisory committee Mrs Violet Nyambu took the delegates through a detailed report which indicated that  for the first nine months of the year 2019,Bosa activity disbursed more than Sh 438m.
On the other hand the Fosa facility disbursed more than Sh433m in loans.
“The micro credit department disbursed Sh 186m in the form of loans” said the report.
Nyambu pointed out that the bookshop department had greatly been affected by the government policy on textbook supply to schools.
“ In order to sustain this department, there is need to seriously diversify this business” said Nyambu, pointing out that so far the department had signed partnerships with different partners and now motor bikes ,water tanks ,farm inputs, laptops and fridges can now be purchased from the bookshop.
Addressing the delegates, the chief guest Mr James ole Nkiti challenged the sacco to choose leaders and delegates with integrity in order to realise sound development.
“There is need to elect leaders of good standing in the society so that the sacco can he able to achieve its vision” said ole Nkiti.

Captions to photos:
1.       Sacco chairman Alfred Mlolwa addressing the delegates at Vacani hotel in Voi
2.       CEO Mr Charles Kaba reading out the budget estimates to the delegates during the SDM
3.The chief guest during the meeting James ole Nkiti addressing the meeting
4.Mrs Violet Nyambu reads out the supervisory report
5.Delegates follow proceedings during the meeting
6.A composite graphic of the main speakers during the SDM







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