Mwalimu Sacco eyes asset base of over Sh100 billion in two years

In the run-up to its 50th-anniversary celebrations, Mwalimu National Sacco says it is projecting to increase its asset base from Sh66.4 billion to Sh100 billion by 2026, representing a three per cent upward growth.

In 2022, the sacco’s asset base stood at Sh64.05 billion, marking a 3.7 per cent growth to Sh66.4 billion in 2023. To this, its financial position remains firm with the focus on shareholder value creation and preservation.

“We are looking to rejig our model, because if we remain static in the previous model of how saccos run business, achieving or projection would be difficult,” Mwalimu National Sacco chief executive Kenneth Odhiambo said.

The Sacco noted that it was restructuring its loan book to address non-performing loans which are above the five per cent regulatory threshold, as a result of government taxes that have impacted members‘ loan repayment.

“Our non-performing loans are around 8.6 per cent of our total loan portfolio. We have about three per cent to cover by December this year to bring that down,” Mr Odhiambo said.

The sacco is celebrating the diversification of its membership as 37 per cent of its members comprise non-teaching members since it opened its common bond to other corporate sectors.

“We opened our common bond to other corporates because teachers have not had a salary increment for the past four years, they may therefore not have a lot of disposable income to save more,” he said.

Another milestone is the move to allow the banking staff to take up sacco membership, adding to its diversification strategy.

According to Mr Odhiambo, clients from the banking sector are joining the sacco majorly because of the low mortgage product, which is becoming more attractive to many. “Our mortgage offering at nine per cent which you can’t get in the local market is attracting more of the youthful members. Beyond banks, we have some members from professional institutions like Ernst & Young,”  said Odhiambo said adding that asset financing is also attractive and more affordable to its new members.

The sacco is looking to attract more youth through its digitisation agenda.

Speaking during a media breakfast meeting, Mwalimu National Sacco Chairman Joel Gachari said that the society has continued to register growth despite tough economic times that have at several times befallen the finance market in the whole country.

As of December 2023, the sacco‘s turnover had increased by 8.69 per cent from Sh7.71 Billion in 2022 to Sh8.38 billion in 2023.