Harambee SACCO to grow its loan book by Sh23b

Harambee SACCO has announced plans to lend to members more than Sh23 billion in the current financial year.

The SACCO chief executive officer Peter Ndegwa said the management will increase the loan book from Sh15.6 billion in 2014 to Sh23 billion this year.

The credit union, which is ranked second in terms of asset base after Mwalimu Sacco will soon roll-out three new products next month as part of its strategy to woo more customers.

“These are just a few components of our growth plan to enhance our visibility,” explained Ndegwa. According to the 2014 Sacco accounts the institution assets grew to Sh19.8b in 2014 compared to Sh17.6 billion registered in 2013. While investments grew from Sh294 to Sh476 million.

“Our desire is to increase the loan book by end of December 2015, as we continue to tame expenditure and ensure sustained dividend payment growth,” said Ndegwa.

He made the remarks in his office during signing of a partnership between the Sacco and mail delivery service provider, Postal Corporation of Kenya.

The partnership is aimed at ensuring improved customer service in places that are far from the Sacco’s Front Office Service Activity but near post office, notably Hola, Turkana, Wajir and Galmagala.

The expansion in loan book, he said, will be coupled with intensive recruitment of more customers, with special focus on workers in various government departments.

Currently, with over 80,000 members, Ndegwa said more than 10,000 customers will be recruited by end of December this year.

“Our new business approach is to recruit more customers as well as retaining them. Equally, we are working on plans to enhance internal controls to eliminate fraud cases among other malpractices,” he added.

Also on offer, according to the Sacco are plans to retain accounts of retiring civil servants to boost deposits.