Harambee Sacco to pay 15pc dividend on shares

Harambee DT Sacco has recorded an improved growth and declared 15 percent dividend on shares and 9 percent on deposits.

This was revealed during its 54th Annual Delegates Meeting on Monday in Nairobi.

"Ladies and gentlemen, the society is proposing to pay an all-time high interest on deposits of 9 percent, against what we paid out in 2023 at 8.5 percent. We are also proposing to pay another all-time high of 15 percent on share capital, up from 12 percent in 2023," said Sacco's national chairman Macloud Malonza.

Its total assets grew by over Sh2 billion from Sh36. 7 billion in 2023 to Sh38. 6 billion by the close of business on December 31, 2024.

"A loan book of Sh29.1 billion in 2023, now stands at an all-time high of Sh32 billion. In 2023 our members' deposits were at Sh24.6billion, the same now stands at Sh26.2 billion. The Sacco's core capital in 2023 stood at 5.1 billion, the same now stands at Sh6.3 billion. Share capital was at Sh2.3 billion, it now stands at Sh2.5 billion," said Harambee DT Sacco chief executive officer Dr George Ochiri.

He added: "Our total revenues were trending at Sh5.7 billion they are now at Sh7.01 billion and finally, our Net surplus was Sh1.2 billion, we closed financial year 2024 at Sh1.46 billion.

Malonza said the sacco recorded improved performance despite 2024 being a tough year characterized by global and local economic hardships, Gen-Z disruptive political demonstrations, increased tax obligations and statutory deductions.

"Yet despite operating in an increasingly harsh macro-economic environment, coupled with global and regional geopolitical disruptions which raised the cost of doing business and reduced disposable cash across the population, Harambee Sacco remained agile and resilient," said Malonza.

He added: "Ladies and gentlemen, our 2024 Annual Consolidated Report and Financial Statements is a grand display of our resilience as people and as an institution. Going by its bottom-line, Harambee Sacco is set on platform of regaining its number one position in Kenya and the region."

The chairman also said the core institutional capital or total assets, which were performing below the statutory requirement of 8 percent had now improved from 7.7 percent to a high of 9.9 percent.

"On core capital or total assets the threshold is equal to or above 10 percent, we now stand at 16.4 percent, the ration being equal to or more than 8 percent, the society is at 24.1 percent, way above the statutory standard. The same goes to the ration of liquid assets or saving deposits and short term liabilities, which stands at equal to or greater than 15 percent, we are towering at 16.8 percent," he said.

Malonza said this year, sacco's strategic theme will be "exceeding expectation", and will be focusing on five key strategic areas namely; revenue growth, strategic plan for the next years, service delivery, ICT excellence and improved stakeholder engagement. The sacco's strategic plan 2021-2025 ends this year.

He also assured Sacco members that their money at Kenya Union of Savings and Credit Co-operative (Kuscco) is safe.

"Being the fourth largest sacco this country, you have more returns for investment and the money which was in KUSCCO will not affect us. If you look at all saccos that were there, they have paid a return which they could have paid even with that money coming because what is there is to recognise the income which would have come as dividend from it," he said.