Qwetu assets set to hit Sh 2.72 billion as Sacco opens Taveta branch

 Qwetu assets hit Sh2.72 billion  as sacco opens Taveta branch office 

It was pomp and colour as Qwetu Sacco officially opened its Taveta branch office.

The event which was presided over by governor Granton Samboja marks another step forward for the leading sacco in Taita-Taveta County which now boasts a membership of more than 40,000.

Governor Samboja who was accompanied by three CECs, Vumi Ringo(trade and cooperatives),Gasper Kabaka(roads and infrastructure) and Laban Mwashighadi(youth and sports) hailed the sacco for being at the forefront in supporting small and micro- enterprise ventures in the county.

“My government fully supports Qwetu Sacco because it has demonstrated beyond doubt that it’s the sacco of choice for Taita-Taveta people” said Samboja,  adding that county staff, both permanent and casual, were accessing their salaries and other payments through the sacco at a tune of Sh30m monthly.

He said he had personally invested more than Sh20m through the sacco to demonstrate his support for the fast growing society.

The governor pledged sh1 million through the sacco, where sh500,000 would benefit small scale market traders and the other half,the boda boda operators in the sub-county.

Samboja pointed out that it was not a mean achievement for a sacco to offer loans of up to sh1.5 billion as Qwetu was doing, especially during these difficult economic times when most saccos were faced with imminent collapse.

During the Special Delegates Meeting (SDM) held at Market View Hotel in Taveta township, the delegates endorsed the proposal to set up a modern office block in Voi town at a cost of Sh120m.

This was touted as a key development for the sacco which is currently transacting business from rented premises in Voi.

Taking the delegates through the key highlights of the 2020/21 annual budget, the Sacco CEO Mr Charles Kaba reiterated that the society total assets were projected at more than Sh 2.72 billion up from Sh 2.52 billion the previous year.

This represented a projected growth in total assets to Sh199m.

The sacco total capital was projected at slightly more than Sh 435m.

The society’s total income was projected to reach Sh 464m while the total expenses were estimated to to reach Sh 424m, thereby creating a surplus of slightly more than Sh40m.

“The sacco management would like to assure all its members that despite the ravages brought about by the Covid-19 pandemic, Qwetu Sacco is right on track and is dedicated to serve all its members without bias”said Mr Kaba.

The CEO at the same time announced that the society projected to pay dividends to members at the tune of Sh 7 million, but hastened to advise members to plow back some of their dividends to ensure that the sacco maintained a strong financial base.

The sacco chairman Mr Alfred Mlolwa, while addressing the delegates, said that the Covid -19 pandemic had taught the members lessons that will take a long time to erase from their memories.

“The pandemic has taught us that we need to embrace the spirit of saving for emergencies and members must be ready for disruptions in their other businesses that support their regular income and also create income streams in different sectors of the economy” said Mr Mlolwa.

The Sacco chairman emphasised the importance of plow back where members reinvested part or whole of their interest on deposits and dividends on shares.

Mr Mlowa said the board of directors had proposed that the borrowing powers be increased from Sh 175m to sh200m.

“As an institution, we need to cushion the sacco against high demand for cash either through demand for loans or unprecedented huge cash withdrawals” said Mlolwa.

The supervisory committee chairperson Violet Nyambu took the members through the supervisory report whose key highlights are as follows:

BOSA:The loan portfolio rose from Sh 1.5m in 2018 to sh1.6m in 2019.

Qwetu development loan increased from Sh 7.8m in 2018 to sh 21m in 2019.

Qwetu emergency loan increased from Sh 6.5m in 2018 to Sh 8.5m in 2019.

FOSA: This is the most utilized department in loaning.The performance of Karibu loan which targets newly employed members has been doing well whereby more than sh23m was issued to more than 49 new members in 2019.

MICROCREDIT: The department has been crucial in assisting members to improve their living standards.

However, the department needs vigorous marketing to capture more members in order to realise maximum profits.

Total savings in this department rose from Sh 72m in 2018 to sh90m in 2019.

BOOKSHOP:The department has been coping with several challenges especially over the government decision to supply directly to schools.

The department’s income decreased from sh53m in 2018 to sh 34m in 2019.

As such there is a need to diversify products in this department in order to realise higher profits.

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