BUSINESS: Kitui Teachers Sacco on upward financial trajectory

Mr. John Mati Munuve, SASRA National Chairperson addressing the Kitui Teachers Sacco members during the Sacco's 45th AGM on January 29, 2022. PHOTO/Boniface Mulu, The Scholar Media Africa.

The asset base of the Kitui Teachers Savings and Credit Cooperative Society Limited currently stands at Ksh. 7.6 billion.

This is according to the society’s chairperson, Rev. Augustus Munuve.

“To support this growth and ensure we comply with the Sacco Societies Regulatory Authority (SASRA) ratio on capital adequacy, the Sacco must grow its share capital to match the growth in assets,” he said.

Munuve further announced that the society’s savings by members grew from Ksh. 1.09 billion in 2020 to Ksh. 1.33 billion in 2021.

“This is attributed to the members’ loyalty and confidence,” the Sacco leader said.

Munuve was speaking to thousands of members during their society’s 45th Annual General Meeting held at Ithookwe Primary School in Kitui Central District, Kitui County on Saturday, January 29, 2022.

The SASRA National Chairperson, John Mati Munuve, was the chief guest at the event.

The cooperator announced that they had tremendous membership growth from 23,949 in 2020 to 28,099 in 2021.

“This was made possible through implementing a spirited member-recruitment drive undertaken by our staff members under a performance management system,” Munuve said.

The members’ deposits grew to 4.2 billion shillings in 2021 from 3.6 billion shillings in 2020.

“The Sacco remained focused on the lending activities and we managed to grow our loan book to 6.3 billion shillings in 2021 from 5.5 billion shillings in 2020.

This was achieved through proper loan appraisal at the initial stage and strict follow-up on loan repayments to minimize defaults,” Munuve added.

He also announced that their revenue grew to 1.3 billion shillings in 2021 compared to 1.1 billion shillings in 2020.

Kitui Teachers Sacco Chairman Rev. Augustus Munuve following proceedings during the Sacco’s 45th AGM. PHOTO/Boniface Mulu, The Scholar Media Africa.

“We are pleased to recommend you for the consideration and declaration of the interest on deposits at 12.57 percent, the dividends on the share capital at 14 percent rate and the housing dividends of 8.5 percent for the 2021 fiscal year,” the Sacco leader said.

Munuve announced that this year they had three board members and one supervisory committee member who went for election and were re-elected to the board.

The three are Rev. Augustus Munuve for Matinyani and Kitui West Electoral Zone, Tonny Kilonzo for Mutitu Electoral Zone and Alfred Mutua for Lower Yatta Electoral Zone.

The supervisory committee member is Robert Kavi for Kitui Central and Katulani, Matinyani and Kitui West and Lower Yatta Electoral Zones.

Munuve further noted that the Sacco has a five-year strategic plan 2019-2023.

“The strategic plan’s main objective is to achieve an asset base of 1 billion shillings,” Munuve said.

He disclosed that currently, the Sacco has seven branches, having set a fully-fledged branch (the Kitui branch) at the head office in Kitui Town.

The other branches are Mwingi, Kyuso, Mutomo, Mutitu, Makindu and Wote.

According to the chairperson, the Sacco educated a total of 3,949 members in 2021.

“During last year’s AGM, the members resolved to set up the Sacco assurance wing.

The Sacco assurance is a concept where the Saccos partner with insurance companies to distribute insurance products through its branch network and customer base,” Munuve explained.

On the Sacco’s corporate social responsibility (CSR), Munuve disclosed that in 2021, they visited a total of nine special education centers and two primary schools. They also sponsored 14 secondary schools.

He also announced that during the year in review, they lost 112 members, which was very high compared to the other years.

“The situation was made worse by the COVID-19 pandemic,” the chairperson said. He led the members in observing a one-minute silence in their honor.  

Kitui Teachers Sacco CEO Florence Mutua addressing members and guests during the Sacco’s 45th AGM on January 29, 2022. PHOTO/Boniface Mulu, The Scholar Media Africa.

On fixed deposits, Munuve said they are currently paying an average rate of 10 percent while the Back Office Services Activities (BOSA) deposits is at 12.57 percent.

To ensure the Sacco does not operate at a loss, the SASRA advised the board to ensure the interest rates on deposits is matched with the interest on long-term loans,” the chairperson said.

On his part, John Mati who was the chief guest lauded the management of the Kitui Teachers Savings and Credit Cooperative Society Limited for the exemplary leadership.

Mati, stressing on the importance of Saccos, said they operate and promote the financial sector.

He at the same time announced his resignation from the SASRA National Chairperson to vie for the Mwingi North Constituency parliamentary seat during the Kenya’s 2022 general election.

“I am resigning when the other people in Kenya are resigning to seek the Mwingi North MP seat in 2022,” Mati, who has led the SASRA since 2018, said.

SASRA, which was established in Kenya under the Sacco Societies Act 2008, is the regulatory body charged with licensing the Kenya’s deposit-taking (DT) Sacco societies and authorizing the specified non-deposit taking (NDT) Saccos in the country.

The Kenya National Union of Teachers (KNUT) Kitui County Executive Secretary, Simon Mutunga Nding’o, announced that currently the county has a total of 14,000 teachers in both primary and secondary schools.

He disclosed the number of primary school teachers as 9,000.

“A total of 6,029 primary school teachers in the county are KNUT members. A staggering 2,971 are yet to join the union,” Nding’o said.

Kitui Teachers Sacco Deputy CEO Cyrus Mutinda following proceedings during the event. PHOTO/Boniface Mulu, The Scholar Media Africa.

On politics, Nding’o said that the teachers will fully participate in the August 2022 general election to elect suitable leaders for the country.

“We the teachers will vote to decide on who should be our president, governor, senator, MP, MCA and Women Representative in the county,” the KNUT official said.

“We are going to elect leaders who will be mindful about our welfare,” he added.

The event was also addressed by the Kenya Primary School Heads Association (KPSHA) Kitui County Chairperson, Syanda Muthoka, the Cooperative Bank of Kenya Chief Executive Officer Vincent Marangu and the KNUT Kitui County Vice Chairperson Nicholas Mulwa, among others.

Anne Nyambura, an official from the Cooperatives Alliance of Kenya (CAK), represented the CAK National Chairperson Daniel Marube at the function.

Kitui County government was represented at the event by an official from the county’s Ministry of Trade, Cooperatives and Investment, Francis Mutuku.

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