Sacco members reaping benefits of investment in land

By STANDARD  REPORTER

Investing in land is proving an attractive option to members of Chai Savings and Credit Co-operative Society.

Through its Chai Diamond Investment Limited subsidiary, the Sacco has provided opportunities for members to invest in land with Kitengela and Nakuru projects having been oversubscribed.

The company purchased 20 acres at Kitengela in September 2013 and demarcated into one eighth of an acre plots. The plots were sold within one week and balloting was the following month.

Due to overwhelming demand, an extra 20 acres were bought in the same area. All the plots were sold by close of the year. The processing of the titles for Kitengela Phase 1 is in progress. The company plans to invest in Nakuru, Bomet and Mombasa this year.

Chai Diamond Investment Limited has registered 1,000 shareholders who have purchased shares worth Sh17 million.

 The shareholders are from all the Kenya Tea Development Agency (KTDA) factories and the company has deployed regional business representatives who have been recruiting shareholders at the factories.

According to Bonface Ayub, the Sacco Chairman, establishment of the investment arm is part of a diversification strategy.

KTDA Managing Director Lerionka Tiampati, who is the Sacco’s patron, observed that “in Chai Sacco, we have a valuable partner in our employees’ socio-economic welfare”.

For that reason and as the parent company, he added, KTDA shall continue to support Chai Sacco as it has done in the past.

Mr Tiampati advised the Sacco leadership to practice good corporate governance, citing this as being absolutely essential in ensuring the growth and survival of institutions.

corporate governance

He noted that the current business environment calls for prudent financial management and good corporate governance.

The KTDA boss lauded the society for having complied with the legal and regulatory requirements set by the Sacco Society’s Regulatory Authority.

This, Tiampati said, will go a long way in boosting members’ confidence in the manner Sacco affairs are run.

Members’ deposits grew from Sh1 billion to Sh1.2 billion while loans to members   grew from Sh1.1 billion to Sh1.4 billion.

The Sacco’s assets grew from Sh1.28 billion to Sh1.53 billion while share capital grew from Sh37.7 million to Sh51.6 million and revenue from Sh177.9 million to Sh214 million.

Over the same period, membership grew from 8,100 to 8,900.

Mr Ayub said the Society has kicked off a campaign on savings mobilisation and urged delegates to champion the same in their respective stations to spur financial growth.