Chai Sacco posts 10 per cent growth in a tough year

Chai Sacco Chairman Boniface Ayub speaking during the AGM

Chai Sacco posted a 10 per growth in 2020 attributed to operational efficiency on a tough year for financial institutions due to the Covid-19 pandemic.

This saw the society, which is the main sacco in the tea industry, announce a 12 percent dividend payout on share capital and rebates of 8 percent on member deposits.

Chairman Boniface Ayub noted that activity had gone down in March to April during the peak of coronavirus restrictions.

“The Society’s performance tumbled two months from March when the first Covid-19 case was reported in Kenya. However, the Society put in place strategies which led to a quick turnaround and ensured an upward growth trajectory,” said Ayub during the Sacco’s Annual General Meeting (AGM) held on Saturday and headlined by PS Cooperatives Ali Noor.

The year under review saw Chai Sacco grow its asset base by Sh365 million to Sh4 billion. This is as revenues grew 3 percent from Sh546 million toSh562 million.

Members share capital grew by 16 percent from Sh420 million to Sh488 million. Member deposits also rose by Sh200 million to Sh2.8 billion.

“The Society’s interests remain constant and members are assured on return on their deposits that’s why the deposits have grown,” said Mr Ayub.

Loans to members rose 6.7 percent to Sh3.3 billion up from the Sh3 billion recorded in 2019.

With the third quarter of 2021 almost over, Ayub projected a good outlook with rising member deposits, repayment of loans and revision of loan products.

“The Board and management have put in place a business continuity plan to cushion the society against adverse effects in case of a disaster or unforeseen situations like the Covid-19. This is to safeguard the Society’s assets and minimise interruption of service delivery to our members,” said Mr Ayub.

The Society’s membership grew 3.6 percent in 2020 seeing Chai Sacco to 32,3888 which was a fall from the 6.75 growth witnessed in 2019.