Chai Sacco marks 40 years of operation
22 November 2013, 17:51
Nairobi - The Kenya Tea Development Authority (KTDA) has marked 40 years of operation in the tea industry for its remarkable growth and development both from the membership of 27 to 9000 and its initial capital investment of KES 900 to KES 1.5 billion.
Adan Mohammed, Cabinet Secretary for Industrialization and Enterprise Development, said the remarkable progress by Chai Sacco at its 40 year anniversary, reflects the nation’s outstanding productivity both in the agricultural and, savings and credit sectors.
“ I am delighted to note that Chai Sacco has not only performed extremely well over the years but is also one of the model MFI’s in Kenya that is recognized internationally by World Council of Credit Unions (WOCCU) for embracing best practices in financial management. This is in line with the government’s strategy under Vision 2030 to improve Sacco management and performance,” said Mohammed.
Boniface Ayub, the Chai Sacco Chairman, said KTDA has recorded a turnover of KES 145 million to KES 170 million while the members’ share capital grew by 12% translating to KES 38 million as of December 2012.
“This 40 years anniversary aims at celebrating the transformation of lives of more than 8000 members through Chai Sacco’s existence. The Sacco has enabled members to access and mobilize over KES1.3 Billion worth of savings for investments, ranging from enterprise development, to home ownership.”
Ayub noted that the Sacco’s loans to members also increased from KES 100 million to KES 1.1 billion while members’ deposits grew from KES 938 million to KES 1 billion. He also added that the total assets increased from KES 1.2 billion to KES 1.3 billion, while total membership stood at 8100 at the end of the period.
“Our vision to provide excellent financial services to our members has not gone un rewarded; Chai Sacco has been categorized among the biggest Saccos in Kenya by the Sacco Societies Regulatory Authority (SASRA), a statutory body that regulates deposit taking Saccos, and has received numerous accolades from the National Ushirika Day,” stated Purity Maina, CEO Chai Sacco.
Maina said Saccos control 43% of the country’s gross domestic product and contribute KES 210 Billion towards national savings. She added that the co-operative sector employs over 300,000 Kenyans directly and many more indirectly making it the most important vehicle through which many Kenyans pull resources for investments and wealth creation.
As one of the few deposit taking Sacco’s in the country, Maina said Chai Sacco operates two fully fledged Front Office Services Activity (FOSA) branches in Nairobi and Kericho, offering members a one stop shop for their financial needs. She further said the society also boasts innovative products and services designed to meet members’ specific requirements such as Loans repayable within 12 months namely; Emergency and School fees plus other short term loans which are processed and disbursed within one day and attract interest of 1% per month on reducing balance.
Moreover, she said the Sacco has launched its third Strategic plan covering the period 2014 – 2018 targeting; diversification and membership growth of over 40,000, increased branch network from two to ten, embracing innovation to increase efficiency and investment in human resource.
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