Nyati Sacco Targets Tier 1 Stature As Good Fortunes Dominate Year In Review

Nyati Sacco held its 46th Annual Delegates Meeting marking milestones that project a bright future for the Sacco in its expedition to improve the socio-economic well-being of its stakeholders. The institution has over the years provided diverse and cost-efficient financial services in a bid to be the preferred Sacco of excellence.

Through collaboration, integrity, innovation and excellence, the Sacco noted an increase in total revenue to Ksh 690 million compared to the Ksh 666 million recorded in the year 2021 while interest income from loans grew to Ksh 662 million from Ksh 627 million noted in 2021.

While congratulating the Delegates on their election, Nyati Sacco Chief Executive Officer Dr. Julius Bett praised the delegate’s commitment and devotion adding that as the institution’s brand ambassadors, they had done a good job ensuring the growth and success of the Sacco.

“Today as we present to you the Sacco’s performance in the last year, I am proud to report that this growth has not been achieved through the efforts of the management team but the collective efforts of all members.

We are here because of you delegates as well as the members you represent. It is because of your continued patronage that Nyati Sacco continues to grow strength by strength.” Affirmed the Nyati Sacco Chief Executive Officer.

Over the same period, Nyati Sacco’s total assets grew to Ksh. 4.5 billion from Ksh. 4.1 billion recorded in the year 2021 marking an increase of Ksh. 465 million. This growth in total assets signifies stability in the Sacco’s financial position further positioning closer to attaining tier1 stature.

“Kenya’s medium-term growth prospects remain positive with GDP projected to grow by 5.2% on average in 2023-24 notwithstanding current global and domestic shocks. The baseline assumes robust growth of credit to the private sector, continued low COVID-19 infection rates, a near term recovery in agricultural production and high commodity prices favorable to Kenyan exports. These developments are in turn expected to catalyze private investment to support economic growth over the medium term,” stated Nyati Sacco Chairman Mr. Charles Mbuvi in his address to the Delegates. He went ahead to announce that the Sacco’s member deposits grew at 10% to record Ksh. 2,770,907,617 up from the year 2021’s Ksh. 2,512,220,109.

Despite harsh economic times, it was noted, the Sacco was able to recruit 2,115 new members with the net member growth standing at 15,950. At the close of the year 2022, income generated from membership entrance fee amounted to Ksh. 863,023 translating to a 37% increase in membership recruitment as compared to the previous year.

“Distinguished Delegates, our Sacco has maintained an upward trajectory amid the economic and political changes in the year 2022 which continue to disrupt and cause a variety of challenges in a complex and fast changing environment,” the Chairman continued.

During the year under review, Nyati Sacco according to the Chairman’s report issued total loans of Ksh 3,526,498,769 compared to Ksh 3,229,561,965 issued out in the 2021 financial year marking a 24% growth. The total loans issued by BOSA were recorded as Ksh 2,947,174,984 representing 86.4% of the total loans issued out while the 13.8% of loans were under the FOSA translating to Ksh535,392,380.

“In view of these findings, I take this opportunity to urge members to channel their salaries to be processed through our FOSA accounts in order to be able to access the various FOSA based mobile loans which will in turn push upwards our FOSA lending figures and loan portfolio,” affirmed the Chairman.

In overall, the loan net portfolio grew by 2.2% to record Ksh 3,410,498,257 in the year 2022 up from Ksh 3,125,649,394 in the year 2021.

Addressing delegates at the ADM, the Chief Guest and Director of Cooperatives Nairobi County Madam Dolphin Aremo lauded the Nyati co-operators for a spectacular performance in 2022. She further urged the management to focus on service delivery to stakeholders to grow the Sacco to a tier1 institution.

“Your performance has been impressive over the years. This is one society that I mention often as a reference point. I want to congratulate you because the 11.3% return on deposits payment to members that you are giving today has not been achieved even by top tier Saccos in the country. I want to be honest with you that even in my own Sacco where I belong, we managed 10% and mark you we are the pace setters in the cooperative sector,” she said.

“This is enough evidence that the performance of your Sacco in the period under review was very good and I would wish to send a team from my own Sacco to come and benchmark with you going forward,” she added.

Madam Aremo noted that in the past there were cooperatives that doctored accounts to impress members with unrealistic dividends adding that she is glad Nyati Sacco has been consistent with its books of accounts and has over the years submitted accurate financial reports.

“Looking at your total assets, you are almost getting to tier 1, you only need to get your total assets to 5 billion and from the progress that we have witnessed most probably next year Nyati Sacco may hit the target to be a tier 1 Sacco,” she said.

The County Director of Cooperatives took the time to congratulate the Sacco on the good progress with the Sacco building dubbed Bufallo Plaza. She noted that this is a great stride that will go a long way in ensuring the Sacco operates from its own premise.

“I am happy to hear from the Chairman’s report that the upcoming Bufallo Plaza is at 30% and that your expectation is that before the end of the year 2023, we will be able to open the house.” Madam Aremo noted.

Strategic Plan…
During the 2022 implementation period, the Sacco enhanced human resource capacity and productivity and leveraged on technology to drive business, management and customer experience. In addition, improved customer service and general business operations were witnessed.

In the period under review, improved management of loans and other products for increased revenue was attained. Further, Nyati Sacco managed to strengthen its FOSA operations that led to better service delivery and profitability. Governance and sustainability too received a boost with increased risk management and prudent financial management that ensured an increase in returns on investment to members in the year 2022.

Going forward, Nyati Sacco will prioritize increasing of incomes to ensure members get improved return on investment. At the same time, the Sacco will be looking at some emerging trends in technology and incorporating the same in the day to day operations of the Sacco.

“Technology is expected to drive growth in the financial sector in 2023 and beyond. These trends include the ongoing digital transformation, the increasing role of Artificial Intelligence and robotics. Our top tech priorities for 2023 include data and analytics, enhanced security and fraud mitigation, digital payments, cloud based architecture and mobile apps,” said the Chairman.

Surplus, Dividend and Interest Rebates…
During the year in review, the society’s Net operating income grew by 9.28% from Ksh 447.36 million as recorded in December 2021 to Ksh 490.11 million in December 2022.

“Based on the performance of the year 2022, we are proposing an interest rate on member deposits of 11.3% and dividend on the share capital of 21%. This is after transferring Ksh 39.5 million to reserves to increase the institutional capital,” declared the Nyati Sacco Chairman.

He added that the management, staff and Board commits to grow member value and provide member focused products and services and unprecedented member experience.

“We will strive to be worthy of the trust you have bestowed on us. In fact, you are the reason for our Sacco. We also remain appreciative of our business partners, stakeholders and regulators who have tirelessly continued to provide invaluable support,” concluded Mr. Mbuvi.