Hazina Sacco Society Holds 39th ADM, Launches 2023-2027 Strategic Plan
As it seeks to be a leader in provision of financial products and services, Hazina Sacco Society has since its establishment in 1971 offered effective mobilization of savings and prudent administration of credit for socio-economic advancement of members. This year as the institution holds its 39th Annual Delegates Meeting (ADM) it is celebrating remarkable growth while also shifting focus to implementing the Society’s 2023-2027 strategic plan as Corporate Watch Magazine’s Ker Mogallo writes.
Hazina Sacco Society has held its 39th annual Delegates Meeting (ADM) recording a tremendous growth in the period under review. The Society’s membership grew by 13.7% from 22,504 members in the year 2021 to 25,585 members at the close of the year 2022.
Non withdrawable share capital increased by 14.2 % from Ksh 378.2 million to Ksh 432.1 million in the year under review. Monthly deposits by members in the Bosa increased from Ksh 8 billion in 2021 to Ksh 9.2 billion in 2022, a rise of 15.72% enabling the Sacco to timely sustain its major activity of credit provision to members.
Loans advanced to members grew by 7.9% from the previous Ksh 8 billion in 2021 to Ksh 8.8 billion in 2022. Hazina Sacco continues to provide a variety of loan products at the most competitive interest rates per month on a declining balance in both the BOSA and FOSA.
The Sacco’s gross income in the year under review was Ksh 1.5 billion, a 12.6 rise compared to the Ksh 1.3 billion recorded in 2021. According to the report, overhead expenses for the year 2022 increased by 23.7% to hit Ksh 269 million from Ksh 211 million recorded in the previous year.
Moreover, the Society’s institutional capital continues to grow due to the boost from enhanced retained surplus which increased to Ksh 1.5 billion in 2022 up from Ksh 1.3 billion in the previous year, a net increase of approximately Ksh 213 million.
The stellar performance was attributed to the strict implementation of the Sacco’s strategic plan under the leadership of the institution’s Chief Executive officer Mr. Dickson Okungu.
Speaking to Corporate Watch on the sidelines of the ADM, the CEO noted that through the support and patronage of products and services by members, it was possible to maintain an upward trajectory and post good results in the year under review.
“We are focused on transforming the socio-economic well-being of our members. The achievements we are tabling at the Annual Delegates Meeting today is a reflection of the dedication and hard work that the Board of Directors, management team, staff and the Delegates as well as the members throughout the country have put forward,” said the CEO.
“Based on the financial performance outlined above, the Board proposes that a final dividend to members be paid at the rate of 17% on share capital and an interest refund of 10.6% on deposits held on a pro rata basis,” declared Hazina Sacco National Chairman Mr. Evans Kibagendi.
Tabling the report at the annual delegates meeting (ADM), the Hazina Sacco Society National Chairman noted that the society had remained compliant to the mandatory regulatory ratios in 2022 with a very strong outlook.
“Honorable delegates, the year 2022 was marked with the country’s general election coming just after the closure of the financial year for most of our employers. This may have slowed down most of our activities but we are happy to report that we were not affected negatively. We are proud to report that the Sacco rose to position 13 up from position 15 in the year 2021 as per the regulator SASRA report,” he said.
The National Chairman added that Sacco societies are currently operating in an environment that is marked with volatility, uncertainty, complexity and ambiguity, prompting Hazina Sacco to focus on building a sustainable competitive advantage through maintaining a unique and competitive product portfolio, skilled manpower, strong corporate image, innovation, adaptability and diversified investments.
Strategic plan 2018 – 2022…
“In the year 2019, we gathered together to celebrate the launch of our strategic plan for the period 2018-2022 whose focus areas were membership growth, financial sustainability, human resource management and development, operational efficiency as well as leadership and governance. It is with great pleasure to report to you that the strategic plan 2018-2022 was successfully implemented,” noted Mr. Kibagendi in his speech to the delegates.
During the implementation of the 2018-2022 strategic plan, the marketing department strengthened through recruitment of more staff and inclusion of customer care section. The department further intensified publicity campaigns that saw membership growth from 17, 301 in 2017 to 25,858 at the close of 2022.
Within the 5 year period, member deposits increased from Ksh 5.7 billion to Ksh 9.2 billion. Revenue grew at an average 14% against the plan target of 15%. Loans grew from 5.3 billion in 2017 to 8.8 billion in 2022.
As per the 2018-2022 strategic plan, an organizational structure review was undertaken, additional staff recruited and job descriptions for all positions developed. The work environment for staff was improved, annual staff training undertaken and performance appraisals tool developed and implemented.
On operational efficiency, leadership and governance, Hazina Sacco continuously improved its ICT infrastructure, increased automation and launched digital products, developed a cyber security policy and initiated a data clean-up.
During the same period, the society strengthened physical and system controls, enhanced compliance with statutory requirements and reviewed policies and standard operating procedures. In addition, the Sacco strengthened working relationships within the branch network.
“We as a Sacco applaud the Board, management and staff for the efforts made to bring home these achievements. I also take this opportunity to thank all the delegates for the support they have accorded us throughout the period,” Mr. Kibagendi proclaimed.
Strategic Plan 2023-2027
As curtains close on the just concluded plan, Hazina Sacco society has embarked on implementing the strategic plan for the period 2023-2027.
“Dear Delegates, to ensure that there is independence, the Sacco engaged VAS Consultants Ltd. A management consultancy firm to drive the development of the plan. We are glad to report to you that this assignment has been completed successfully,” stated the National Chairman.
Launched at the ADM by the Chief Guest; Mr. David Obonyo who is also the Commissioner for Cooperatives Development, the 2023-2027 strategic plan’s vision is to catapult Hazina Sacco to be the leading Sacco in provision of sustainable financial services and with a mission to transform members’ lives through resource mobilization, provision of competitive and innovative financial services.
The plan according to its outline is expected to operate on integrity, equity, team work, customer focus, professionalism and innovation as its core values. The plan’s strategic themes will focus on business growth, operational efficiency, customer service, human resource management and corporate governance.
“The process of developing the new strategic plan was both consultative and participatory and from this background, it is our firm belief that all actors led by the Board, will play their rightful roles in ensuring successful implementation of the strategic plan and realization of the desired results,” the National Chairman revealed.
Setting the pace…
Commenting on the performance of the Sacco in the year under review the Nairobi County Director of Cooperatives Madam Dolphin Aremo who graced the occasion together with the Nairobi County Chief Officer for Cooperatives lauded the Board and management of Hazina Sacco stating that she was extremely proud of the society’s achievements.
“As a young girl, I was attached to this society, this is one society that I have grown with over the years even when I was a sub county officer and now the County Director and its achievements make me very proud. I am proud to be associated with Hazina Sacco.
On his part, the Nairobi County Chief Officer for Cooperatives Mr. Godfrey Akumali Atiel congratulated Hazina Sacco for the stellar performance in the year under review. “I am proud to be addressing Hazina Sacco cooperators today, this is a cooperative I am being recruited to, so Bwana CEO, you should come for my form.” He said.
He added that having gone through the institution’s books of accounts, he is convinced that the transparency shown by the books as well as how the queries raised were satisfactorily answered gives the institution a clean bill of health.
KUSCCO Ltd Managing Director Mr. George Ototo on his part beseeched the cooperators to not only save more but also patronize the Sacco’s products.
“The only way you will build the Sacco is by ensuring members increase their savings, while at that, they must then patronize the Sacco’s products. This is the only recipe for growth,” Ototo said. He added that as KUSCCO, they will continue enabling the legislative and policy environment for the growth of Saccos.
Hazina FOSA at 10…
Last year marked 10 years since Hazina Sacco opened its doors to FOSA services. The section, has made major strides in offering innovative financial solutions which has seen it record tremendous growth in the number of members attracted to its services such as savings account, salary processing and advance among other tailor-made financial services.
“From one member recruited to FOSA in the year 2012, the number has grown to 8,000 patronizing the salary account. Our FOSA has been able to support members not only in processing salaries but also in providing competitive loan products through which members can access loans of up to Ksh 4 million based on their payslips,” noted Mr. Kibagendi.
Championing Financial inclusion…
“Ladies and gentlemen, cooperatives business model is the ideal vehicle for ensuring financial inclusion especially in the majority of Kenyans in line with the Kenya Kwanza business model of ‘Bottom Up economy’ meant to uplift the majority of our population at the bottom of the pyramid whom without Saccos, would not be able to access financial services from conventional institutions.
Due to this, I encourage the leadership of Hazina Sacco including the delegates to leverage on this bold philosophy and values of cooperatives to onboard more people for financial inclusion,” began the Chief Guest in his speech.
Mr. Obonyo, who has over 27 years working experience in the cooperative movement noted that he is proud of the Sacco’s achievements since inception.
“Let me appreciate your responsiveness to your members’ needs by leveraging and optimizing on technology to enhance service delivery to your members. I am glad to note that Hazina Sacco has continuously aligned itself with the changing business environment through the launch of the mobile loan accessible to members.” Mr. Obonyo said.
He went on to say that the contribution of Cooperatives to the economic growth of the country is immense and cannot be overlooked. The cooperative movement, he added has managed to post an asset base of 1.3 trillion.
The ADM resolved that payment of dividends and interest rebates on shares and deposits would be made through FOSA savings account by 20th February, 2023. It was also agreed that the maximum normal loan for individual members and ‘chamas’ remain at Ksh 30 million while Corporate loans were increased to Ksh 60 million from the initial Ksh 40 million effective 1st march 2023.
The loan multiplier for all members increases to 4.5 times from 4 times the member deposits. Additionally, the repayment period of normal loan increases to 84 months up from 72 months effective 1st March 2023.
Effective 1st March 2023, there will be no waiting period when applying for top up loans and top up charges will not be more than the net take home. The Daraja loan repayment period also got a boost with an increase from 36 months to 48 months. Its deposit multiplier also rose from 4 times to 4.5 times.
The Emergency top up repayment period has been increased to 18 months from 12 months, while the Jibu loan deposits multiplier has increased to 5 times from the initial 4 times. The Jibu loan has also been boosted to a maximum of Ksh 300,000 up from Ksh 200,000.
Corporate and ‘Chama’ loans repayment period will rise from 36 to 48 months effective 1st March 2023 while Flash advance loans limit has been increased to Ksh 45,000 up from 40,000.
The interest rate charged on the Flash Advanced loan will be on a graduated scale based on loaning period; the first month will attract 5%, month 2 will attract 6%. The third month will however attract a 8% interest while the 4th month will attract a 10% interest.
“Honorable delegates. On behalf of the Board of Directors, I sincerely thank you for your continued support and for entrusting us with the vision of this Sacco. It is my strong belief that together we shall propel this Sacco to greater heights,” concluded the Chairman.