Bandari Sacco records 4pc growth in profits, assets jumps to Sh1.3Bn

By Monica Muema

Bandari Sacco announced a 4 percent growth in profit for the financial year ending December 2021.

Speaking while making the announcement, the Sacco’s Chairman Ken Sungu said during its Annual Delegates Meeting in Mombasa that the firm’s asset base also grew to Sh1.33 billion despite the ravaging impact of the Coronavirus pandemic.

This comes even as the Sacco is embarking on a re-branding and change of name exercise from Bandari Sacco to Bandari Deposit Taking (DT) Sacco to comply with recent adjustments by the industry regulator, Sasra.

“I am glad to report that the Commissioner of Cooperatives finally registered the proposed amendments and further certified our change of name from Bandari Sacco Ltd to Bandari DT Sacco Ltd. These enviable achievements speak volumes about the dedication and commitment that you have towards the mission and objectives of the society.

In pursuit of our mission to enhance our footprint in the country, we opened a new branch in the lakeside city of Kisumu that is now fully operational. This year we plan to expand our presence to other viable markets as and when need arises, said chairman Mr. Sungu during the ADM.

The Mombasa- based Sacco also reported a Share Capital growth of 18.4 per cent, from Sh304, 072,632 in 2020 to Sh360,258,028 9 in 2021. Loan to member stood at Sh7.2 billion, a 10 percent growth from the previous Sh6.62 billion while the total assets grew at 10 percent and the membership recorded a 11 percent growth to stand at 18,584 members.

“Due to the macro economic challenges meted by the global pandemic, the Board proposes to pay dividend on share capital at 18 percent and interest on members’ deposits at the rate of 11.5 percent (FOSA /BOSA deposits) for the year ended 31st December 2021, however the regulator proposed a payout on interest on member deposit at 10% or below,” said its CEO Joseph Otieno Bee, adding that the company has since entered into a partnership with ABC Bank to allow its members to own a Sacco branded cheque book.

Saying the move was an important milestone that had given them access to the national payments system, increased ease of transactions and improved efficiency of doing business, with continued plans to embrace more collaborations that are of socio-economic benefit to our members.