Asset growth sees IG Sacco record over a billion shillings in profits

The Invest and Grow (IG) Sacco Director Tobias Oriedo issued a sewing machine to Ebukuya School for Deaf headteacher Martin Okelo as they celebrated with the 120 pupils through their CSR activity during the commemoration of International Deaf Awareness Month held in Launda, Vihiga. [Brian Kisanji, Standard]

The Invest and Grow (IG) Sacco recorded a profit of Sh1.91 billion in the year 2023, representing a 2.5 percent increase from Sh1.86 billion realised in 2022.

The Sacco which boasts over 25,000 members also recorded an increase in its asset base from Sh12.9 billion realised in 2022 to Sh14 billion in the year under review.

"We realised an 8.5 percent increase of our asset base which represents Sh1.1 billion as a result of continuous contribution towards the share capital and other monthly subscriptions to non-withdrawable deposits," said Kennedy Keya, the Sacco chairman.

Mr Keya who spoke at a Kakamega hotel during the Sacco's Annual General Meeting (AGM), said the loan portfolio also increased by 14 percent "due to a high uptake of loans arising from the review of our credit policy that enabled more members to access affordable profit."

"Members shall earn 17 percent in dividends from share capital, plaza shares at 15 percent, interest on non-withdrawable deposits at 12 percent, and interest on Nyota, Akiba, and Holiday at 8 percent respectively," said Keya while declaring dividends that IG Sacco members will get.

The chairman said 'the loans we disbursed in 2023 increased by 3 percent to Sh 8.79 billion from Sh 8.53 billion in 2022'.

"Despite the financial constraints due to economic hardships being experienced in the country, the Sacco has managed to remain resilient," said Keya, adding that 'the cooperative business model' is an ideal vehicle to ensure success towards financial inclusion.

He added: "We have an active membership of 26,796 out of which 15,569 are FOSA earners. We still have great potential to recruit more members to channel their salaries through FOSA in order to leverage a wide range of products such as E-loans and Empowerment loans.

Mr Keya said they have been able to put in place financial management systems that address wastages and other loopholes through which funds could be lost. "Ours is a watertight financial management approach that guarantees proper management of funds collected from members in deposits and shares."

He added: "Loans are only given to members whose credit worth has been established' saying 'this has minimised cases of bad debts and defaulting' because 'we strictly follow laid down procedures before loans are dispensed."

David Obonyo, the Commissioner of Cooperatives, who was the chief guest said that Invest and Grow is one of the leading Saccos in the country having enhanced 'good governance by running the institution without external borrowing."

"We have allowed the Sacco to expand past the Western region," said Mr Obonyo.

"IG Sacco has enough liquidity to meet its financial obligations," said Obonyo, adding that by embracing technology, it has managed to enhance efficiency and effectiveness in service delivery,".

"IG Sacco is a good example of how the cooperative movement can transform lives. It has been in existence for the last 47 years and still serving its members well," said Mr Obonyo

He went on: "Given the critical role played by the cooperative and small micro-enterprises, we are committed to providing a good working environment for the sector to thrive."