Urithi Premier Sacco (UPS) attracted 2,000 new members in its second year of operations, boosting deposits by 86 per cent .
Sacco chairman, Pius Thuku says the cooperative realised an 82.7 per cent growth in share capital as a result, growing from Sh22.1 million to Sh40.4 million for the financial year ended December 31, 2017.
“Our membership rose to 7,364 from 5,323 the previous financial year, an increase of 38.3 per cent,” he told members during the sacco’s second annual general meeting held at Taji Gardens in Thika town recently.
The sacco is the savings arm for members of Thika-based Urithi Housing Cooperative Society, one of the fastest growing land buying and selling companies in Kenya.
Thuku said members’ deposits rose 86 per cent to Sh322 million last year, compared to Sh173.4 million the previous financial year. “We wish to encourage members to subscribe more shares and others to pay up the minimum share capital in full so that we can grow the capital base,” he added.
The sacco is providing accessible and affordable credit facilities ranging from personal to development loans, short- to long-term loans at an interest rate of one per cent per month on a reducing balance method. “These facilities run for a credit period of one to four years depending on the nature of the facility,” said Thuku.
Unfortunately, some unscrupulous sacco members have been taking loans and later refusing to pay. As a result, the sacco has engaged auctioneers to boost debt collection, Thuku said.
Although last year’s political uncertainties saw returns on investments nosedive, this year, business is shaping up. The sacco plans to accelerate growth via a partnership with Equity Bank. Members resolved to open a UPS Investment Account with the bank.