CONTACTS: +254 726879488 (Mobile)
+254770 455 116 (Office)
By Rodney LUBOGA
Harambee Sacco has a long history of providing financial services to its members, with a focus on promoting financial inclusion and empowerment.
Watch: https://www.youtube.com/watch?v=95yoNDUYuak
The Sacco offers a range of products and services, including savings, loans, insurance, and investment opportunities.
Kenya’s fourth largest Savings and Credit institutions (Sacco), Harambee Sacco first announced the launch of a share-capital drive in March 2024 – in an endeavor aimed at increasing the capital base of the organization.
The share-capital drive initially seeks to raise Sh4billion, and is part of Sacco’s strategic plan to strengthen its financial position and improve its capacity to provide better services to its members.
The Sacco’s management, while giving an update of the share-capital drive, cast optimism in the ongoing process, dubbing it “successful,” and is urging all members to participate and contribute to the growth and development of the Sacco.
By increasing its capital base, Harambee Sacco will be able to better meet the financial needs of its members and continue to thrive in the competitive financial services industry.
Members are being encouraged to purchase additional shares in the Sacco to boost its capital reserves and enable it to offer more competitive products and services. The share capital drive is also aimed at attracting new members to join the Sacco and benefit from its financial solutions.
Under the plan which has been approved by Sacco Societies Regulatory Authority (SASRA) Harambee Sacco will grow its share capital to at least Ksh6 billion in 2028 from Ksh2.4 billion last year and match its reserves with the same amount – pushing the reserves to Kes10billion from Kes4Billion over the same period.
This is according to Harambee Sacco’s CEO Dr. George Ochiri in a recent interview with a regional weekly newspaper.
The share capital by the Sacco is made up of shares that are purchased by its members, with each share having a fixed nominal value – in this case a value of Sh100 each.
Share capital gives a member equity of ownership to the SACCO and they earn dividends on the same annually.
The minimum shareholding per member is currently capped at 300 shares each at Kes100, or a minimum value of Kes 30,000. Similarly, a member can increase share capital to at least Kes50,000 after attaining the minimum required amount.
“Share Capital is not withdrawable nor refundable. Share capital is transferable to a next-of-kin who is willing to continue with the membership of a deceased principal member. withdrawn member may choose to sell his share capital to another member who is willing to buy,” reads in part a statement from the financial institution.
Sacco performance
In 2024, Harambee Sacco declared a 15% dividend on share capital. This was an all-time high, up from the 12% dividend paid in 2023. Additionally, Sacco also announced an 8.5% interest rate on deposits. Additionally, Sacco declared an all-time high 9% interest on deposits, during the firm’s 54th Annual Delegates Meeting (ADM).
Similarly, the Sacco’s board has entered into a deal with its members to inject an extra Ksh4 billion ($31 million) in the business in return for dividends on share capital at the rate of 15 percent every year for a period of five years (2024-2028).
Harambee Sacco’s total assets grew by over Sh2 billion from Sh36.7 billion in 2023 to Sh38.6 by the close of business on 31st December 2024.
The Sacco’s loan book of Sh29.1 billion in 2023 now stands at an all-time high of Sh32 billion, while the Sacco’s core capital, which stood at Sh5.1 billion in 2023 grew to Sh6.3 billion by end of 2024.
Share Capital was at Sh2.3; it now stands at Sh2.5 billion. Its total revenues were trending at Sh5.7 billion, now at Kes. Sh7.01 billion and finally, our net surplus was Sh1.2 billion, and the sacco closed FY 2024 at SH1.46 billion