Harambee Sacco eyes Sh4bn in member's capital expansion share drive

 

Harambee Sacco CEO George Onchiri at a past event. [Courtesy]

Harambee DT Sacco has launched an ambitious share drive to generate revenue which will injected to finance the growth and expansion of the society in line with its strategic plan.

According to an information memorandum published by Sacco, all registered (both past and current) members of Harambee DT Sacco are eligible to participate in the share drive.

However, potential members will be required first register with the Sacco by meeting the member requirements as per the Sacco by-laws by paying a joining fee of Sh1,000, a sink fund contribution of Sh300 and the first monthly deposit contribution of Sh3,000.

The funds will also go into, among others, meeting prudential and regulatory requirements and enabling Sacco to reduce its reliance on external borrowing.

The Sacco is aiming to raise its share capital to Sh4 billion.

“Our Share capital stands at Sh2.4 billion. For us to be compliant, we need a minimum of Sh4 billion,” Harambee Sacco Chief Executive George Ochiri revealed to members during the annual general meeting.

The Sacco is targeting to sell a total of 40 million shares, which it hopes to achieve on the back of its robustness over the counter market and its earning potential.

The anticipated share market value per share is not less than Sh100.

“For instance, if your share capital balance is Sh50,000, the number of shares will be 500 shares i.e. Sh 50,000/100,” reads the memorandum.

The shared drive will run for two years’ subject to the availability of the offered shares. Members have been encouraged to subscribe as early as possible for the shares since the allocation of the additional share capital offered will be on a first come first served basis

Started in 1969, Harambee Sacco, which has a membership of over 79,000, boasts of over Sh38.5 billion in assets and operates a network of FOSA branches in Nairobi, Mombasa, Kisumu, Eldoret, Nakuru and Nanyuki.

This year, the Sacco, for the first time since it was started, declared dividends of 12 percent after a stellar performance in 2023 despite local and international economic turmoil, fueled by among other things, inflation, and the wars in Ukraine and Gaza, among others.