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BRIGHT PROSPECTS FOR QWETU AS SACCO ASSETS HIT SH 1.77 BILLION
BRIGHT PROSPECTS FOR QWETU AS SACCO ASSETS HIT SH 1.77 BILLION
BRIGHT PROSPECTS FOR QWETU AS SACCO ASSETS HIT SH 1.77 BILLION
BRIGHT PROSPECTS FOR QWETU AS SACCO ASSETS HIT SH 1.77 BILLION
BRIGHT PROSPECTS FOR QWETU AS SACCO ASSETS HIT SH 1.77 BILLION

BRIGHT PROSECTS FOR QWETU AS SACCO ASSETS REACH SH 1.77 BILLION

The future looks bright for Qwetu Sacco as its assets base now stands at more than Sh 1.7 billion.

This is in comparison to the last financial year when the assets value stood at Sh1.5 billion, representing a positive variance of more than Sh182  million.

Addressing delegates during this years Annual General Meeting held at Lavender Hotel in Wundanyi,  the sacco CEO Mr Charles Kaba said this growth had been contributed largely by strict financial management, aggressive marketing and use of ICT.

Qwetu, which is the leading sacco in Taita-Taveta County and Coast region, has been  recognized as the second  highest saver nationally.

The sacco has also been rated second best nationally in risk management.

The sacco membership has also increased from 35, 300 members to 37, 458 members currently.

“At the moment, our sacco membership deposits stand at Sh 1.29 billion up from 1 billion in the last financial year”, the CEO said.

He also pointed out that sacco turnover stood at Sh 392 million.

On the other hand , the loan portfolio stood at slightly more than 1.39 billion up from Sh 1.18 billion in the last financial year.

Mr Kaba pointed out that  board of directors was proposing an increase in borrowing power from Sh 200million to Sh 300million.

“As a growing institution, we would wish to cushion the sacco against high demand for loans to members, but be as it may, we keep on encouraging our members to increase their savings as this is the most reliable way of improving the liquidity of the institution” said Mr Kaba.

He at the same time revealed that the board of directors was also proposing an interest of 9.10 per cent(Sh68,529,680) on the members long term deposits and a dividend of 11 per cent (Sh 5,380,038) on the members share capital and an honoraria of Sh 1 million to the board of directors.

He pointed out that agriculture was a key investment in Taita-Taveta County especially horticultural products for export and bananas in Taveta sub-county.

“This sector has complete value chain from production to the market and therefore a guaranteed source of income,” said the CEO, adding that the sacco had deemed it fit to enter into partnership  agreements with several players in order to ensure that the society gets customers’ funds channeled through the FOSA.

“This will increase the cash flow to our members,” he said.

With the SGR  crossing towns such as Voi and the proposed express way from Mombasa to Nairobi, Mr Kaba said there would be a corresponding  growth in real estate business and other related ventures, and exhorted members to take advantage of these new developments and invest in the town.

According to the Supervisory Report read out to the members by Violet Nyambu, the supervisory board chairperson, the check-off remittance from the TSC rose to Sh 26.9 million , up from Sh 23.9 million the previous financial year.

The Qwetu Super loan was the highest ,standing at Sh 444 million in the 2018 financial year, followed by Qwetu Smart Loan at Sh 134 million.

On the other hand the FOSA continued to serve most members owing to the fact that all members who have accounts in this department can be granted loans. As such most members patronized this facility due to quick assessment of loans.

In summary, in the 2018 financial year, Voi traded loans amounting to Sh224 m, Mwatate Sh 122m, Wundanyi 99m and Taveta Sh100m.

Further, the micro-credit department  had an increase in loan portfolio from Sh136 m in 2017 to Sh 164m in 2018.

However, the bookshop department suffered a downturn due to competitors from other players in the field. In total the facility traded a total of Sh 53 million.

Addressing the delegates, the chief guest Renson Ndoro challenged saccos to invest more in ICT  in order to safeguard against rising cases of cyber crimes.

“Cyber crime is very real and saccos must ensure security of their savings from rogue cartels who are out to reap where they have not sown,” said Mr Ndoro.

He called on saccos to be steadfast and challenge any legislations that could affect their operations and continued existence.

“Towards this end, saccos should follow the relevant legal channels to address any challenges that could be a stumbling block to their progress” said Mr Ndoro.

The Qwetu sacco chairman, who won the coveted prize of the highest saver, had earlier called on members to go for short term loans so that they can finish paying up fast and take up new loans.

“’It is counterproductive, for instance, to take a loan with a repayment period of 60 months which is also a burden.” said Mr Mlolwa.

He at the same time challenged members to invest their loans in businesses they were conversant with, lest they incur losses and live in misery later on.

 

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BRIGHT PROSPECTS FOR QWETU AS SACCO ASSETS HIT SH 1.77 BILLION
BRIGHT PROSPECTS FOR QWETU AS SACCO ASSETS HIT SH 1.77 BILLION
BRIGHT PROSPECTS FOR QWETU AS SACCO ASSETS HIT SH 1.77 BILLION
BRIGHT PROSPECTS FOR QWETU AS SACCO ASSETS HIT SH 1.77 BILLION
BRIGHT PROSPECTS FOR QWETU AS SACCO ASSETS HIT SH 1.77 BILLION
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