Sacco gets regulator’s nod to mobilise deposits

Bingwa Sacco Chairman Cyrus Kabira. [File, Standard]

Bingwa Sacco is the latest financial institution to join an expanding list of deposit-taking savings and credit cooperative organisations.

During its recent annual general meeting, the Sacco got the nod from the Sacco Societies Regulatory Authority (Sasra) to begin taking deposits from the public, in what will help it increase its membership and grow its loan book.

Sasra noted that the sacco had met the set standards despite some challenges that have buffeted the financial sub-sector.

An analysis of audited results for more than 100 companies — listed and non-listed — by Weekend Standard showed that despite some recent headwinds in the financial sub-sector, deposit-taking aaccos were doing well.

Bingwa’s membership increased from 153,456 in 2017 to 170,443 in 2018, which the management terms a great achievement.

“The sacco has upgraded Kandongu and Ndiriti branches and installed safes for cash custody, which will reduce operational costs due to saving on transportation of cash and staff,” said Bingwa chairman Cyrus Kabira.

“Renovation works at Kagio branch are at an advanced stage and soon we are going to relocate to our own premises which will be a great step forward.”

The society has since unveiled a number of projects, including renovation of some of its branches. It eyes construction of the head office which will cost it Sh215 million.

Bingwa Sacco’s assets as at December 31, 2018 were Sh5.15 billion, up from Sh4.6 billion in 2017.

“Members' shares increased from Sh448 million as at December 2017 to Sh517 million in 2018, an increase of 15.4 per cent,” said the chairman.

He added that this year, they would pay Sh192.7 million individends and rebates. Members fund balances were Sh520 million while deposits were Sh1.2 billion.