Bestrock Savings and Credit Cooperative Society Limited is on an upward trajectory despite the enormous challenges facing the business sector in the country.
Making the remarks, the society’s chairman Francis Muli Kithae said the economic meltdown as a result of the Covid-19 pandemic posed the greatest challenge.
The chairman announced that the Sacco has continued to improve its liquidity ratio from 11 percent in 2020 to 12 percent in 2021.
“We closed the year 2021 with Ksh. 17,937,739 compared to the Ksh. 16,424,891 we had in 2020,” he said.
He said that this was idle cash awaiting members to apply for loans.
He was speaking to thousands of the members during the Sacco’s 10th general meeting held recently at the Kitui Multi-Purpose Development Training Institute.
The Kenya Union of Savings and Credit Cooperatives Limited Training Manager Elijah Mulwa was the chief guest at the event.
According to Kithae, the society’s share capital grew from Ksh. 18,715,775 in 2020 to Ksh. 23,501,132 in 2021.
He further announced that the membership grew from 4,370 in 2020 to 4,637 in 2021.
“Deposits dropped from Ksh. 141,982,259 to Ksh. 139,824,182 while loans to the members increased from Ksh. 149,728,930 to Ksh. 164,384,511,” the cooperator said.
He was as well clear that the interest on deposit decreased from Ksh. 5,679,290 to Ksh. 5,592,967.
“The total operative costs increased from Ksh. 12,670,895 to Ksh. 20,049,860,” he added.
“The benevolent fund increased from Ksh. 400,000 to Ksh. 717,000 while total incomes increased from Ksh. 30,454,789 to Ksh. 44,575,644,” reported the Sacco leader.
“During the year under review, the share capital grew by 26 percent.
This is the highest growth in the share capital in this Sacco’s history and I congratulate you, members, for the achievement,” Kithae said.
He went on to inform the members that they were unable to open a new branch or a satellite office in Mutomo District, Kitui County last year as earlier intended, according to his last year’s report.
“Instead, we decided to grow our members as envisaged in the strategic plan,” he continued.
“Our strategic plan was reviewed and I am happy that we achieved most of our pillars in the year 2021. This plan gives us a direction for the next four years” the Sacco leader said.
“We are pleased to recommend you for the consideration and declaration of the interest on deposits at 4 percent and dividends on shares at 7.5 percent for the year ended on December 31, 2021, which amounts to Ksh. 5,592,967 and Ksh. 1,762,585 respectively,” Kithae said.
He announced that the Sacco expects to conduct two member-education days this year.
“As your chairperson, I am sincerely humbled to see how this Sacco has steadily grown from just below 4,000 members in 2011 to the current number under my stewardship,” the chairman said.
The society, which has its headquarters in Kitui Town, was registered as Kitui Biashara Savings and Credit Cooperative Society Limited in 1999 but later rebranded and changed its name to Bestrock Savings and Credit Cooperative Society Limited on February 20, 2013. It now has an expanded operation area covering the Lower Eastern Kenya region (Kitui, Machakos and Makueni Counties).
During the meeting, the members approved that the Ksh. 60 million maximum borrowing power be retained.
The society’s Supervisory Committee Chairman, Justiny Munuve Kivunzi said the Sacco is destined for higher growth in the capital base through loan issuance.
“My committee reviewed the loan collection, reporting back to the office, cash monitoring, tools, bank reconciliation records, groups lending methodology records, and all the loans ratification aggregates,” the cooperator said.
The supervisory committee reports that the retained earnings and statutory reserves to core capital ratio are currently 48 percent against the 50 percent statutory.
“The committee has noted that the management implemented all the resolutions as passed by the members during the 2021 annual general meeting,” he said.
He announced that a new strategic policy guide is ready for the new roadmap in their Sacco operations.
“The committee wishes to report that the CEO contract was renewed for another three years,” Kivunzi announced.
In his speech, the Cooperative Bank of Kenya (CBK) Relations Manager, Joshua Mureithi, disclosed that there are over 20,000 Saccos in Kenya.
“As a bank, we are ready to help you and to work with you,” Mureithi said.
CBK Kitui Branch Manager Fred Musyoka congratulated the Bestrock Sacco Board for its excellent leadership.
The occasion was also addressed by the society’s Honorary Secretary Ted K. Munyoki, Chief Executive Officer Michael Musesya Mutua, Kenya National Chamber of Commerce and Industry (KNCCI) Kitui County Chairman Duncan Kisilu Singi and Kitui County Trade, Cooperatives and Investment Development Director Francis Kavita Mutuku among others.
Kisasi/Lower Yatta District Cooperatives Officer Alice Zakayo presided over the elections during the occasion where Francis Muli Kithae (Chairman) and Solly Kimoli (board member) were retained in office by the members.
Joseph Mboya Muthungu was elected as a board member to the supervisory committee unopposed.
In their speeches after being elected, the three heartily thanked the members for the gesture and assured them that they are going to serve them effectively and efficiently.