Unaitas plans eight branches ahead of 2016 transformation into a bank

MURANGA, KENYA: Unaitas will open eight new branches next year in a bid to steer its transformation into a bank by July 2016.

The Sacco chairman Mr. Joseph Ngaai said plans are underway to utilise more than Sh400 million come next year to develop the branches that will have footprints across the country. Currently, Unaitas has 20 branches with a larger presence in Central Kenya and Rift valley region. The new branches will see Unaitas penetrate Western, Coast and Nyanza regions. Ngaai was speaking during the Sacco 24th Special General Meeting in Muranga County last Friday where he outlined the projections. According to Ngaai, the growth and expansion project will be undertaken under the guidance of renowned international consultants. The chairman announced that the Sacco's performance of liquidity as percentage of total deposits in June 2015 was 27 percent compared to 39 percent similar period last year. "This is above the minimum regulatory requirement of 15 percent and was within our internal threshold of 25 percent," he said. The decline in liquidity during the period under review, Ngaai said, was occasioned by the strategy to increase loan asset as it reduced the Sacco's liquid asset as per the budget 2015. He said this saw a growth of loan outstanding to 48 percent compared to similar period last year. Ngaai noted that the Sacco's savings grew by 23 percent as at June 2015 compared to similar period last year, from Sh3. 8 billion to Sh.4 7 billion. "This is a conservative growth that is expected to increase in the second half of 2015, to meet the expected Sh7.5b by end of the year," he said. According to the financial report, loans grew by 48 percent as at June 2015 compared to similar period last year from Sh4. 3 billion to Sh6. 3 billion . "This is an ambitious growth that target to close the year with a loan and advance balance of close to Sh9 billion, hence pushing our interest income to meet our overall projected income," said Ngaai. The report presented by the chairman shows the Sacco's shareholders fund grew by 104 percent in the last one year from Sh 963 million in June 2014 to Sh1. 9 billion in June 2015. "Our strategy is to continue growing our core capital, so that we are able to absorb the huge capital investments as set out in our strategic plan and creating strong buffer to grow the business", said Ngaai. Unaitas he said, will revamp and grow the insurance business unit for a wider market growth and returns as well as enhance the business process engineering to improve operational efficiency. Other initiatives include enhancing alternative business channels and adjusting operating hours to give members more convenience to interact with Unaitas. Unaitas, Ngaai said will give special focus to corporate and government products, mobile advances, trade finance and working capital loans. The sacco seek to enhance its ICT infrastructure in line with its 2014-2018 strategic plan.