Harambee Deposit-Taking Sacco aims to raise KSh 4.0 billion over the next 2 years through a share capital drive in a bid to wean itself from external financing.
- •According to the Harambee DT Sacco financial statements, the Society closed the year with KSh3.05 billion worth of external borrowing compared to KSh3.52 billion in 2022.
- •Harambee DT Sacco, the 4th largest financial co-operative society in terms of asset size, posted a 17.5% increase in net interest income to KSh2.8 billion while net surplus grew 4.2% to KSh 804.6 Million.
- •Its balance sheet size grew 4.2% to KSh38.6 billion while loans and advances to members were up 6.9% to KSh 29.1 billion. The share capital grew robustly by 8% to KSh 2.34 billion in 2023 from KSh2.17 billion in 2022.
This strategic move seeks to move the Sacco away from dependence on external borrowing which amounted to KSh 3 billion in 2023. The share drive is also expected to enhance the level of liquidity within Harambee Sacco.
Established in 1969 by employees of the Office of the President, Harambee Sacco ranks 4th largest in assets size and has a membership of over 80,000 drawn mainly from Government Ministries, Departments, and Agencies. It paid an unprecedented KSh12 per share as dividend and 8.5% as interest on members’ deposits.
While addressing the Sacco’s AGM, Commissioner for Co-operatives David Obonyo cautioned Sacco to safeguard their core business of lending and not to pay too much dividends and interest on members’ deposits.
Harambee Sacco has set a target of building its institutional capital, growing its membership, and plans to digitize all its operations to deliver quality financial products and services to its members. In a turnaround strategy that began more than three years ago, the Sacco has been offloading properties in its real estate portfolio and has several maisonettes in Mombasa, Kisumu, and Siaya Counties, to boost its cash reserves.
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