Nyati Deposit-Taking Sacco, the highest dividend payer in the Sacco sub-sector, saw its assets grow 7.99% to KSh 4.94 billion at the end of the 2023 financial year from KSh 4.57 billion in 2022.
- •This growth has strengthened Nyati Sacco’s ability to lend more to its members and also venture into new investment areas. Nyati Sacco’s loan portfolio grew from KSh 3.41 billion in 2022 to KSh 3.71 billion in 2023, a growth of 8.77%.
- •Charles Mbuvi, Nyati Sacco Board Chairman told members during its 2024 Annual General Meeting(AGM) that the Society recorded an increase in total revenue to KSh 765.5 Million compared to KSh 689.9 Million in 2022.
- •Member Deposits grew by 4.88% to KSh 2.91 billion in 2023 up from 2.78 billion in 2022 which translates to a deposit growth of KSh 135.2 Million.
The main investment options for Nyati Sacco in 2023 included KUSCCO, CIC, Cooperative Bank of Kenya, and Treasury Bills. This portfolio yielded a return on investment of KSh 46.6 Million
In 2023, Nyati DT Sacco was able to recruit 1,796 new members while the total active membership stood at 16,070 up from 15,950 in 2022. “This minimum growth was caused by numerous voluntary withdrawals, dormancy of accounts due to unemployment, closure of businesses and defaulters.
Nyati Sacco Chairman Mbuvi said that the Society has introduced a hybrid member education program combining online and physical training. In 2023, the Society held 4 online sessions with an average attendance of 120 members per session.
“The Board will continue to invest in educating members to better manage their finances. This will ensure members make prudent financial and investment decisions while saving for their future. We urge members to embrace technology and join when called upon to attend online training sessions,” said Mbuvi.
- •He told members that during 2023, the Board developed strategies to retain members retiring or leaving employment for other engagements to continue accessing the Sacco’s products and services.
- •During the year under review, Nyati Sacco issued loans to members amounting to KSh 3.9 billion compared to KSh 3.4 billion in 2022.
- •Overall, the Society’s net loan portfolio grew 8.77% to KSh 3.7 billion from KSh 3.4 billion in 2022.
According to Nyati Board Chairman Mbuvi, elevated price of goods and services, new statutory deductions, including the Housing Levy, and NSSF contributions, all combined to weaken borrowers ‘ability to service their loans.
“During 2023, the portfolio of non-performing loans increased from KSh 172 Million to KSh 259 Million, an increase of KSh 87 Million. This increase affected the quality of the Society’s loan book, resulting in non-performing loan ratio movement from 4.9% in 2022 to KSh 6.7% in 2023,” said Mbuvi.
He said Nyati Sacco has devised strategies to ensure recovery of these loans through debt collectors and auctioneers, negotiating with affected members to restructure the non-performing loans. The Society has made a loan loss provision of KSh 155 Million. “Nyati Sacco will take advantage of its new office block, Nyati House Plaza, to support our growth and enhance brand visibility. The Society’s goal this year is to focus on member experience and therefore all activities will aim at member sustainability, “said Mbuvi.
- •The approved cost of Nyati Sacco plaza was KSh 476 Million with KSh 442 Million already spent.
- •“It is expected that Nyati Sacco Plaza will be officially opened in July 2024 and this will be a milestone to the Society’s growth in terms of membership, business, and the brand, “said Mbuvi.
- •Construction of Nyati Sacco plaza, which commenced in late 2022 was expected to have been completed by December 2023. Mbuvi told members that the building is currently 86% complete and is expected to be ready for use by June 2024.
Nyati Sacco’s Board of Directors has recommended a final dividend of 21% on share capital. The board has also proposed to review these rates, based on SASRA recommendations after the Authority said this dividend rate was not sustainable.
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