Savings and Credit Co-operative Societies (SACCOs) main mandate is to empower members through affordable and competitive financial services. This is according to the Commissioner of Cooperatives David Obonyo. Obonyo, who presided over Nyati DT SACCO Annual Delegates Meeting (ADM) on Saturday, February 24, 2023, applauded the society for adhering to this cooperative principle in its day-to-day operations, elevating it to the tier 1 levels. “If you want to grow to the next level and sustain your growth, make Nyati SACCO a solution for all your financial needs. For example, through your FOSA, you can process your salaries through the SACCO. “I would like to see Nyati SACCO grow to a KSh 10 billion tier 1 society and its members also grow at the same rate. Because that is the real spirit of a SACCO,” said Obonyo.
The commissioner challenged Nyati and other cooperative societies to work on their loan interest rates and accommodate all members of different cadres. Financial statements for the year ending December 31, 2023, showed that Nyati SACCO’s loan portfolio grew by 8.77% to KSh 3.7 billion, up from KSh 3.5 billion reported in a similar period in 2022. The KSh 3.9 billion loan disbursed during the year scaled up the society’s revenue to KSh 765.5 million, comprising interest from loans of up to KSh 686.5 million.
According to Nyati SACCO board of directors chairman Charles Mbuvi, the tremendous growth in loan portfolio coupled with an increase in revenue saw the society record 7.99% growth in asset base.
“Nyati SACCO realised substantial growth in key parameters. Our assets grew by 7.99% from KSh 4.57 billion reported in 2022 to KSh 4.94 billion, about KSh 500 million shy of the tier 1 mark, which have attained at the start of 2024,” said Mbuvi. Mbuvi attributed this growth to growth in membership to 16,070, up from 15,950 members reported in the previous year. The membership growth realised a 4.88% increase in member deposits to the SACCO to KSh 2.91 billion, up from KSh 2.78 billion. Nyati SACCO’s share capital also increased by 13.65% in 2023 to KSh 317.8 million, compared to KSh 267.3 million. This saw payout dividends
on share capital of up to 21% and interest on member deposits of 11.3%. The chair also attributed the outstanding performance to the strategies levelled by the Nyati SACCO board and the management staff.
He highlighted the education meetings conducted both physically and virtually across 24 regions in the country. His sentiments were echoed by the commissioner who noted that member education will always
ensure the society remains competitive even at the change of leadership. “Create a SACCO that can outlive your lives through member education and empowerment.
This will secure Nyati SACCO’s future and your children will live to remember you,” said Obonyo.
Also present in the meeting was Nairobi County Cooperative Chief Officer Godfrey Akumali who echoed the commissioners’ sentiments and called for sustainable member education on proper savings investment skills. “I encourage you to tailor-make education days for young members of the SACCO, encourage them to save with an objective and move away from borrowing for consumerism. Encourage
them to borrow so that they can start a new stream of income, like businesses and create employment opportunities,” Akumali. The cooperative officer applauded the SACCO for the outstanding performance and governance accolades recorded during the year under review.
Mobile banking
Nyati SACCO leverages mobile banking as an alternative banking channel (ABC) to enhance service delivery and efficiency. The SACCO is the process of setting up a mobile banking App to ease member service delivery. Obonyo encouraged the SACCO to keep abreast of trends in Information and Communication Technology to remain afloat in the financial sector. “If you need to remain afloat in the financial sector, embrace trends in technology to reach out to your members needs to attain a competitive edge,” said Obonyo.
His sentiments were affirmed by the chairman, who revealed of other technological transformations the
SACCO is undertaking such as data analytics and online member registration. Mbuvi assured the SACCO delegates and members of continued efforts to ensure cyber security and protection of data. “We have invested in continuous cyber security training for our staff and members. We also carry continuous system audits to ensure a robust recovery and business continuity plan,” he affirmed. To ensure members strategic member service, Nyati SACCO came up with a head office building project – Nyati SACCO Plaza – which the chair confirmed will be complete and ready for occupancy in July 2024
CSR and future plans
Since its inception, Nyati SACCO has been engaging in activities, that not only target members but also the community in which it operates. Under its Corporate Social Responsibility (CSR) plans, the SACCO sponsored the education of various bright students, a project that amounted to over KSh 590,000. It also engaged in environmental conservation through the tree planting exercise in the South B area of Nairobi,
at Plains View Primary School in October 2023. The chair announced plans for the society to continue
engaging in National Tree Planting Drives. Other future plans and strategies include:
- Growth and expansion in membership, loans,
revenue and returns on investments - Product innovation to meet growing member
financial needs - Reduction of risks and strategies
Nyati SACCO Awards 2023
The SACCO is well recognised in terms of leadership and governance. During the year under, the SACCO chairman was feted Chairman of the Year by the Champions of Governance Award. Nyati SACCO bagged top awards during the 2023 International Day of Cooperatives, commonly known as Ushirika in Kenya.
The SACCO was crowned Best in Capitalization and Technology Optimization during the Ushirika Day Awards ceremony.
