Positive forecast for Qwetu as Sacco membership reaches 56,000





Qwetu Sacco membership has grown to 56,000, an impressive increase from 52,000 in 2021.
This is a clear indication of the popularity the Sacco has continued to enjoy over the years since it opened its doors to non-teaching members.
Addressing delegates during this year’s Annual Delegates Meeting (ADM) at Vacani hotel at the outskirts of Voi town,sacco chairman Alfred Mlolwa,who presented the annual report and financial statements for the year ending December 31 2022, said Qwetu assets now stood at over KSh3.2 billion, up from KSh2.8 billion in 2021.
“This remarkable growth must be applauded given the difficult environment financial institutions have been operating under since the outbreak of the Covid-19 pandemic about four years ago”said Mlolwa.
He reiterated the fact that the core business of the sacco is savings and credit for the mutual benefit of members.
“It’s from these savings that we build enough working capital to fund the sacco activities like advancing credit to members while these loans ultimately help the sacco generate income in the form of interest and other commissions” the sacco chairman said.
He pointed out that members deposits grew to KSh2.1bn up from KSh1.93bn in 2021, representing an increase of KSh206,827,018, which is a growth of 10.7 per cent.
The loan portfolio grew to KSh2.38 bn in the year 2022 up from KSh1.99bn in the year 2021, an increase of Ksh390,163,025, representing a growth of 19.5 per cent.
At the same time,the sacco share capital grew to KSh127m in 2022 up from KSh103m in 2021, an increase of KSh23m and growth percentage of 22.7.
“All the growth areas have shown a good and satisfactory trend that if maintained in the future, will lead to great stability” said Mlolwa.
He however noted that the growth in loan portfolio was not commensurate to the growth in members deposits due to the low savings rate by members because 2022 was an election year and so most large clients were spending on campaign related expenses.
During the meeting, the board of directors proposed a dividend of 13 per cent (KSh16.5m) on shares and interest on long term deposits at 9.8 per cent (KSh109m) as well as honorarium of KSh1m.
For the umpteenth time, the issue of plow back was underscored.
“It’s worth noting that there is still a chance of re-investing part or whole of your interest and dividends. We urge our members through the delegates to notify the secretariat of the same before withdrawing the cash, but the 10 per cent will be automatic”
One of the key highlights of the meeting was the appreciation of the successful completion and operationalization of the Qwetu Sacco Plaza in the Voi CBD according to the supervisory report presented during the meeting by its chairperson Violet Nyambu.
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