Hazina Sacco Announces 18% Dividend Payout at 38th Annual Delegates Meeting
Now in its 51st year of existence, Hazina DT Sacco has provided a variety of services through Back Office Services Activity (BOSA) and Front Office Services Activity (FOSA) in a bid to provide prompt, quality and efficient financial services through effective mobilization of savings and prudent administration of credit for socio–economic advancement of members.
Despite the initial contraction of the economy in the year 2021 occasioned by the recurrent Covid-19 pandemic, Hazina DT Sacco has recorded positive results in all key areas of its financial performance.
In the year under review, delegates approved that members be paid a final dividend at the rate of 18% on their share capital and an interest rebate of 10.6% on deposits held on a pro-rata basis as was proposed by the Board.
Speaking at the 38th Annual ADM, Hazina Sacco National Chairman Mr. Evans Kibagendi thanked delegates as well as members for demonstrating strength and resilience while pushing for the success of the Sacco.
‘We have been tasked by you to ensure the financial stability of the Sacco, even in the middle of unprecedented economic instability, we are committed to delivering growth. The growth you see today is attributed to your hard work and continued patronage of the Sacco’s innovative products,’ he said.
Patronizing co-operatives for development…
Mr. Kibagendi further urged the delegates to continue recruiting more members to the Sacco as a way of realizing the aspirations, goals and objectives of the Sacco. ‘It is important that we bring new members on board so that we can move the Sacco to the next level. In our midst, we have our delegates with children and grandchildren below the age of 18. It will be important for us to patronize the Jewel account so that we train our young ones on the value of savings and the sense of belonging to a Sacco,’ noted National Chairman Kibagendi.
As at 31st December 2021, Hazina DT Sacco’s total deposits stood at Kshs. 8 billion up from Kshs. 7.0 billion in 2020. Total FOSA deposits grew to Kshs. 518.44 million up from Kshs. 392.41 million in 2020 while the Sacco mobilized total revenue of Kshs. 1.33 billion up from 1.13 billion the previous year, marking an increase of Kshs. 205 million.
“We have observed a very steady growth as Hazina DT Sacco, in terms of revenue, assets and even the deposits we are currently holding for our members. As we move into the final stretch of our five year strategic plan, we take pride in the strides that we have made and continue with the commitment to deliver even better results this financial year,” said Hazina Sacco Chief Executive Officer Mr. Dickson Okungu.
While lauding these milestones, the Commissioner for Co-operatives Mr. David Obonyo who was the Chief Guest at the ADM noted that co-operatives are very important vehicles in development, not only of the individual members but also for national development. ‘ The government has taken a key interest in co-operatives right from independence because that is the only way we can Kenyanise our economy. In the last two years it has not been very easy but I want to assure you all that the co-operative movement is very stable. I am happy that in my many years serving at the Ministry of Co-operatives headquarters, there have been no complaints raised against Hazina Sacco, and for that I say keep up the good work,’ he said.
He added that the only thing that will ensure that Hazina DT Sacco remains in the top ten best performing Saccos in the country is integrity; noting that a questionable integrity has brought down even the biggest of co-operatives world over.
‘The economic environment has been tough under the prevailing circumstances occasioned by the Covid-19. Navigating through these stormy waters is not a walk in the park but Kenya has made great strides in economic progression courtesy of the co-operatives. Let us safeguard our Saccos, let us protect them and keep the boards on toes in order to give us the best service,’ said the Co-operatives Commissioner.
Speaking at the ADM on behalf of KUSCCO, Mr. Arnold Munene acclaimed Hazina Sacco’s performance in the year under review noting that KUSCCO as the umbrella union of Saccos in the country is proud of Hazina’s achievements. ‘ We have seen Saccos go through a lot of crisis, we have seen Saccos that have gone down, others have not even recovered, but we thank God for Hazina Sacco’s impressive performance. As KUSCCO, we will continue working with you to ensure your growth as a Sacco,’ he said.
In the financial year 2021, the Sacco’s loan book grew to 8.17 billion up from 7.43 billion the previous year. Commenting on the loan book growth, Hazina Sacco Chairman credited the progress to innovation of timely and customer friendly products.
He added that the launch of Jibu loan, Daraja loan and Tech loans which were implemented within the first year of launching catapulted the Sacco to greater heights. Jibu loan which targets the youth recorded a total of Kshs. 11.72 million in loans approved while the Daraja loan which targets loyal customers netted Kshs.313.11 million in loans approved. The Daraja loan, according to the Chairman, was ranked one of the best performing loan products in the year under review.
‘Every Sacco has unique membership that requires unique products and services thus it is important to come up with products that are responsive to members. Never ever copy paste a product from another Sacco because not all products that work for Sacco A will work for Hazina,’ said the Commissioner for Co-operatives in his speech.
He urged the Sacco to pursue its expansion plans but with caution noting that, an expansion in itself could bring down a Sacco if not well executed.
In his report, Hazina Sacco NationalChairman Mr. Kibagendi noted that the global financial market is experiencing a paradigm shift to digital lending solutions for the future.
‘Putting together a digital strategy is a key focus area for us as Hazina DT Sacco, as it is a key avenue for growth in the modern day market. On this front, we are focusing on digital marketing and mobile banking,’ said the National Chairman.
In the year under review, Hazina DT Sacco was able to run a recruitment drive through sponsored social media advertisements. Moreover, the Sacco created coordinated social media campaigns to promote the Sacco and its 50th year celebrations. These efforts substantially marketed the Sacco with results evident in the number of new members.
Share Capital & Investments…
In the year under review, Hazina DT Sacco reported a consistent increase in its own share capital. This matched the expected ratios as guided by the regulator SASRA. On investments, the Board of Directors continues to invest excess cash in sound investments locally. ‘I am happy to report that our Sacco has continued to diversify its portfolio of investments. In the last year under review, we invested in treasury bills, ABC bank, KUSCCO and Co-operative banks under our short term investment strategy,’ concluded Mr. Kibagendi.