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Sacco in drive to raise Sh500 million extra in share sale

By Joseph Muchiri | Published Mon, August 13th 2018 at 00:00, Updated August 12th 2018 at 20:57 GMT +3
Winas Sacco chairman Robert Kithanju (left) and Eastern regional coordinator Wycliffe Ogolla address the press while launching the Sacco’s share drive. The Sacco will sell five million shares at Sh100 each to boost liquidity and enable long term funding. (Joseph Muchiri, Standard)

The largest Sacco in Embu County has launched a drive to raise Sh500m through sale of share capital members.

Winas Sacco hopes that the extra share capital will help improve liquidity and fund investments, such as offering long term loans, mortgages, upgrading the ICT system and expanding head office.

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The Sacco will issue five million shares each valued at Sh100 between this month and December.

Winas was elevated to tier one status in October last year after attaining Sh4.2 billion up from Sh3.4 billion in 2016.

The shares drive was flagged off on Friday by Eastern regional coordinator Wycliffe Ogolla who praised the initiative as crucial in achievement of the government’s Big Four agenda especially Housing and Food Security.

Sacco chairman Robert Kithanju marketed the share capital as a worthy investment vehicle where shareholders will be guaranteed dividends of at least 14 percent annually.

“This is an opportunity for the public to acquire a stake in the ownership of the Sacco and get the highest returns in the market. For instance, if one buys shares worth Sh1 million, they would make a profit of Sh140, 000 annually,” he said.

Eastern regional coordinator Wycliffe Ogolla flags off Winas Sacco’s share drive. The Sacco will sell five million shares at Sh100 each to boost liquidity and enable long term funding. (Joseph Muchiri, Standard)

Kithanju added the money will be lent out mainly to investors in real estate and large scale agriculture, sectors he noted were experiencing vibrant growth and are part of the government four pillars of development.

“The demand for loans is high. The board has considered to do business with our members by giving them first priority of being the source of our funds for the Sacco growth through the sale of shares,” he said.

Many Saccos have faced difficult in accessing credit after the interest capping law that came into effect in 2016, which has resulted into commercial banks prioritising to lending to the government.

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Kithanju further stated Sacco was investing heavily to increase customer satisfaction and improve its Information Communication Technology to enhance the quality of services.

He said their efforts were paying off stating that for the tier one category, the Sacco was awarded second best nationally in capitalisation and in credit management during International Cooperatives Alliance Day.

Members of the public buy shares during the ongoing drive by Winas Sacco to sell five million shares at Sh100 each to boost liquidity and enable long term funding. (Joseph Muchiri, Standard)

At county level, the Sacco was awarded for having the best overall FOSA, best in capitalisation, most improved marketing strategy and highest deposit per member and most improved marketing initiative in the county.

“We are now working on expanding our head office space to remove congestion. We are endeavouring to give the best services locally and nationally,” he said.

Ogallo who was the chief guest during the event said the government was committed to provide a secure environment for businesses to thrive.

“Achievement of the Big Four Agenda is a combined effort and partnership among different actors. The Winas financing program has focused on food security, affordable and decent housing, manufacturing and job creation. As the national government, our cardinal responsibility is to create an environment to realise those goals,” he said.

For the year ended December 31, 2017, Winas Sacco posted a profit of Sh235 million before taxation. It declared a dividend of 14.1 percent on share capital and 12.55 percent on deposits.

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