Amica Sacco sets a Kes1.4Billion revenue target for 2024 with an eye on the SME market

Small businesses are the driving force behind innovation and economic growth. They are the engine of Kenya's economy by accounting for 33.8 per cent of the national output (KNBS Economic Survey, 2022).

By Newsroom Last updated Jun 5, 2024

By Steve UMIDHA

Amica Sacco Society Limited has announced an ambitious Sh1.4Billion annual revenue target by end of the year with a special focus on the small and medium enterprises (SMEs) segment.

Watch the interview with Amica boss: https://www.youtube.com/watch?v=Jf6eHDXCxz0&t=3380s

Further, the Muranga-based sacco whose members’ total deposits increased from Kshs 4.89 billion in 2022 to Kshs 5.37 Billion in 2023, with a loan book of Kshs 5.77 Billion last year, says that it will grow its annual revenue to Sh2 Billion in the next five years.

Speaking today during a press conference in Nairobi, the firm’s Chief Executive Officer (CEO) Dr. James Mbui, said that the Sacco is presently working with businesses in the tea, dairy and avocado markets as well as the consumer market or salaried individuals.

“The business of a saccos is essentially to mobilise deposits, we want to grow our business in the agriculture sector in dairy, avocado and tea.

We introduced the Daily Field Service (DFS) program to help our members, especially those running micro and small businesses, to save daily conveniently for instance. Another area we have not done so well is the consumer market (employed people) where we will now focus on after we came up with a personal development loan last year,” said Dr. Mbui.

Further the financial institution targets to recruit 15,000 new members this year, grow its share capital by Ksh.150million as well as grow its loan book by Sh1 Billion – a majority of which, about 60 percent, is the SME market. Amica Sacco also targets a net income of Sh 340 Million this year and Sh700 Million in five years.

We attracted 8,815 new members in 2023, raising our total membership to 190,845 from 182,030 in 2022, while our share capital grew to Kshs795.34 million from Kshs715.18 million in 2022.

The asset base grew by 11.25 percent from Kshs6.45 billion in 2022 to Kshs 7.18 billion by the end of 2023. Total revenue rose by 8.08 percent from Kshs1.03 billion to Kshs1.11 billion.

MSMEs play a pivotal role in Kenya’s economy. They contribute to over 90 per cent of the total labour force and help to reduce poverty and grow the economy. SMEs are also a source of innovation, competitiveness and an important outlet for the entrepreneurial spirit of Kenya’s people.