Ukulima Deposit-Taking Sacco, one of the largest in Kenya, will issue a dividend cheque on the share capital of members amounting to KSh 113.2 million at the rate of 12 per cent for the financial year ending 31st December 2024.
- Ukulima Sacco will also pay an interest on members’ deposits at a rate of 9.3% amounting to a colossal KSh 858.1 million compared to KSh 817.5 million paid out to members in the previous year at a similar rate of 9.3%.
- Members will also receive 10% on their Ukulima Headquarters Investment shares amounting to KSh 5.5 million
- In 2023, the Society posted moderately good results in most aspects despite performance drawbacks. The Society recorded a 17.78% increase in membership to 61,085 in 2023 from 51,864 in 2022.
These disclosures were made to delegates during the recently held 46th annual delegates meeting by the Society’s Board of Directors Chairman Dr Philip Cherono, which took place on March 15th, 2024 at Nairobi’s Serena Hotel.
“The Society’s Board will also pay KSh 5,700,000 honorarium to the Board of Directors, Supervisory Committee, and branch officials who served under the period under review as a token of appreciation for the Society’s sterling performance in 2023,” said Dr Cherono.
He told delegates that despite the harsh economic conditions experienced in the country in 2023, including severe drought, high inflation, and rising interest rates, the Society’s banking services were still able to maintain good performance.
Gross loans and advances increased by 2.85% from KSh 12.1 billion in 2022 to KSh 12.4 billion in 2023 while the Society’s balance sheet size increased from KSh 14.6 billion in 2022 to KSh 15.2 billion in 2023.
Ukulima Sacco grew its institutional capital to KSh1.21 billion in 2023 from KSh 1.16 billion in 2022 while core capital increased from KSh 2.2 billion in 2022 to KSh 2.3 billion in 2023.
Loan disbursements during the year reached KSh 7.2 billion from KSh 6.7 billion in 2022 while net loans to members rose from KSh 11.7 billion to KSh 11.9 billion in 2023.
Total expenses for the Society increased from KSh 846.6 million in 2022 to KSh 888 million in 2023.
Members deposits also grew to KSh 10.8 billion in 2023 from KSh 10.2 billion despite the harsh economic environment that members underwent in 2023 including high cost of living as well as introduction of new taxes.
The Society’s share capital grew significantly from KSh 938.1 Million to cross the KSh 1 billion mark while interest from loans to members increased marginally to KSh 1.78 billion in 2023 from KSh 1.72 billion in 2022. This is as members cut down on their borrowing requirements. The Society’s total reserves were up KSh 2.02 billion in 2023 from KSh 1.91 billion in 2022, a growth of 5.98%.
Ukulima Sacco Board Chairman Cherono disclosed to members that the Society was still owed KSh 129,302,549 by some employers who have yet to make remittances to the Sacco. This amount was much higher at the time the Society was closing its books on January 15th 2024.
He added that the introduction of new Government levies and other increased deductions have affected the ability of some members to service their loans, thus exposing the Society to financial distress.
Board Chairman Cherono said Ukulima has put in place measures to deal with portfolio-at-risk and will increase the minimum share capital per member as well as retain more of its earnings to build up stronger reserves. He said the Society will also enhance its efforts on institutional collections and debt recoveries.
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