Harambee Sacco shareholders set to pay 12 per cent dividend as its asset base increases
Business
By
David Njaaga
| Feb 21, 2024
Harambee Sacco Society has announced a 12 per cent dividend payout to its shareholders.
The Sacco also declared an 8.5 per cent interest on deposits.
National Chairman Macloud Malonza said the dividend payout was the highest in the Sacco's history and showed its resilience and performance amid the tough economic conditions in 2023.
"Despite the challenging macro-economic environment and global geopolitical disruptions that raised the cost of doing business, Harambee Sacco remained resilient and delivered a respectable performance," Malonza said during its 53rd Annual Delegates meeting in Nairobi on Monday.
He said Sacco's asset base grew from Sh37.01 billion in 2022 to Sh38.5 billion in 2023, while its share capital increased by 8 per cent to Sh2.34 billion.
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The Sacco also granted loans worth Sh29.13 billion in 2023, up from Sh27.23 billion in 2022.
However, Malonza noted the low ratio of institutional capital to total assets, which stood at 6.2 per cent, below the statutory requirement of 8 per cent.
He said the Sacco was launching a share-capital drive to raise Sh 4 billion in two to three years to address the gap.
The meeting was also attended by the Commissioner of Cooperatives, David Obonyo, who read a speech on behalf of the Cabinet Secretary for Cooperatives and Micro, Small & Medium Enterprise Development, Simon Chelugui. Chelugui praised the Sacco for its growth and contribution to the cooperative movement in the country.
"Harambee Sacco has played a pivotal role in the legacy of Sacco in Kenya. Your membership surpassing 79,000, coupled with impressive financial indicators such as an asset base exceeding Sh39 billion and members' deposits surpassing Sh24 billion, is a testament to your resilience and dedication," he said.
He assured the Sacco of the government's commitment to providing an enabling policy, legal, and regulatory framework for cooperatives to thrive.