Qwetu Sacco defies Covid-19 setbacks to grow its assets base to Sh2.3 billion



 
Qwetu Sacco has defied the challenges brought about by the Covid 19 pandemic to grow its assets base from Sh2.1 billion in 2019 to over Sh2.3 billion in the year 2020.
This represents an increase of more than Sh222m, a growth rate of 10 per cent. 
According to the Sacco chairman Mr Alfred Mlolwa, all the growth areas have shown a good and satisfactory trend which if well maintained, will assure stability of the Sacco which has been rated among the best performers in Coast region and the whole country at large. 
Mr Mlolwa made the announcements while addressing delegates and other invited guests during the Annual Delegates Meeting held at Vacani hotel in Voi whose key agenda was receiving the audited accounts for the 2020 financial year.
“In the last financial year, the board of directors and management had to come up with short term measures to address the volatile economic and social challenges brought about by the Covid 19 and I  can assure our members that we are in the right track as far as our major business of offering savings and credit facilities is concerned” said Mlolwa.
The Sacco chairman pointed out that during the year under review, the Sacco membership grew from 40,000 in 2019 to 43,000 in 2020, representing a 7 per cent growth. 
During the same period, the Sacco recorded a remarkable increase in members deposits which grew from Sh1.4 billion in in 2019 to Sh1.6 billion 2020, a growth rate of 13 per cent.
In the same period, the share capital recorded an increase from Sh57m in 2019 to Sh80m in 2020, an impressive growth rate of 39 per cent. 
Mr Mlolwa at the same time pointed out that the board of directors had proposed there be an increase of borrowing powers from Sh200m to Sh300m.
“As an institution, we need to cushion the Sacco against high demand for cash either through demand for loans or unprecedented huge cash withdrawals .Saccos do not have a lender of last resort like banks do so we have to maintain our own liquidity levels” he said.
Mlolwa revealed that the Kwetu Foundation which was formed as part of the Sacco’s corporate social responsibility in areas of health, education and environment had witnessed some positive interventions especially in the area of education. 
So far, Kwetu Foundation supports 9 students in colleges and universities.
The chairman at the same time urged members to embrace plowback and reinvest part or whole of their interests and dividends to ensure that the Sacco remained on a sound financial footing.
Speaking during the meeting, the Sacco CEO Mr Charles Kaba pointed out that the Qwetu board of directors was proposing dividends of more than Sh8.4m on shares and an interest of 9.2 per cent on long term deposits. 
Mr Kaba urged the members to utilize their dividends wisely in meeting key social responsibilities such as paying school fees for their children especially at this time when the covid 19 pandemic had adversely affected the education sector and learning processes in general.
The CEO also said that the ground breaking ceremony for the Voi office building would be undertaken soon, adding that this would be a major boost for the Sacco which was currently undertaking its services from rented premises in Voi. 
The chairperson of  the supervisory committee Mrs Violet Nyambu presented the supervisory report whose key highlights were as follows:
BOSA: the main activity in this department is loaning. The loans granted in this department are secured by guarantors.
According to the report, the loan portfolio rose from Sh1.6bn in 2019 to Sh1.8bn in 2020.
At the same time, TSC checkoff rose from sh28m to sh29m last year
FOSA: this department has the most patronised products. Loans are processed fast to help members in their urgent financial needs. However, due to Covid 19, there has been a slight drop in loans disbursed in 2020 compared to 2019.
BOOKSHOP: The activity is facing challenges due to government policy in direct supply to schools which calls for a need to diversify the products in this department.
MICROCREDIT: This department is highly utilised by business people and farmers. 
ICT: The department is adapting to technological challenges and new methods within the financial sector and banking.
The department is currently carrying out a pilot testing on Pesa Pepe app which is expected to be more efficient, faster and reliable. This will be rolled out after all key requirements have been sorted out. 
Captions:
1. Qwetu Sacco chairman Mr Alfred Mlolwa addressing delegates during the ADM at Vacani hotel
2. Sacco CEO Mr Charles Kaba and chairperson Supervisory committee Violet Nyambu.
3. Delegates follow proceedings during the ADM
….End of text 



 

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