Five savings and credit co-operative societies (saccos) are now among the country’s top lenders after accumulating savings and assets worth Sh149.9 billion as at the end of the last financial year.
They are Mwalimu, Harambee, Stima, Kenya Police and Afya.
Speaking during Afya Sacco’s annual delegates conference at Kenyatta International Convention Centre, Ms Dolphine Aremo, the Director Cooperatives, Trade and Tourism Nairobi County, said the saccos had accumulated vast wealth over the years.
“The teachers’ giant sacco had as at the end of the last financial year accumulated savings and assets worth more than Sh46 billion, while Stima sacco came in second, having garnered Sh32 billion,” she said.
The Kenya Police sacco had clocked Sh28.9 billion, Harambee sacco Sh26 billion while Afya sacco had reached Sh17 billion.
Presenting their last year’s financial report, Afya sacco said its turnover grew from Sh2.15 billion in 2017 to Sh2.24 billion in 2018, a 4.2 per cent growth.
Chairman Vitalis Lukiri said that during the same period, members’ deposits grew from Sh12.29 billion to Sh13.09 billion.
The sacco’s total assets also increased to Sh17.561 billion from Sh16.146 billion, a growth of 8.8 per cent.
There are over 3,000 registered co-operative societies in Nairobi whose accumulated savings and assets was Sh300 billion as per the last financial year.
Mr Didacus Ityeng’, the Commissioner of Co-operatives, warned co-operative societies against borrowing loans from financial institutions since their interest rates were prohibitive compared to those being charged within the co-operative movement.
“We have signed an agreement with the Ethics Anti-Corruption Commission to investigate and clean up any bad potatoes that may have infiltrated the movement and wreaked havoc from within,” he said.
He also warned against corruption, saying that the vice may end up affecting the Sh1.8 trillion accumulated in societies over the years.
“The national government is taking seriously the cases of counties that have failed to remit dues they have collected from workers to their saccos,” he said.
Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]