Mwalimu Sacco deposits shoot up Sh44 billion.
Deposits at the Mwalimu National Savings and Credit Cooperative Society rose to 44.3 billion last year, reflecting approval from its members, who are mainly from the teaching profession.
This represents an increase of 6.9 per cent compared to the Sh41.4 billion deposit raised by Sacco for teachers in 2020, at a time when the government refused to increase teachers’ salaries.
The state failed to honor various collective bargaining agreements with public servants. Despite this, Sacco was able to increase its membership by gaining an additional 2,058 members, which explains the increase in deposits.
Sacco’s assets, which include loans given to members, rose nearly 5% to Sh60.6 billion.
Sacco President John Ochieng said the increase came despite a difficult operating environment marked by the negative effects of COVID-19, slow teacher employment and wage growth freeze.
“The success was made possible by concrete steps to streamline costs of business and optimization through five key result areas,” Ochieng said in a statement announcing his departure from Sacco.
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Business growth, customer focus, digitization, governance, risk and compliance, and efficient human capital management are the five key result areas. This is a difficult time for Sacco, with its new leadership making it clear that they are ready to cut all ties with the loss-making Spire Bank.
This is expected to relieve Sacco from a significant financial burden.
Sacco also intends to take its time in the real estate business, splitting off from Mwalimu Asset Management and selling the remaining homes in a project in Kisaju, Kajiado County, as well as some land.
Sacco grew its revenue – from interest on investments and loans to members – to Sh7.58 billion during the review period, up from Sh7.22 billion last year.
Sacco’s loan book stood at Sh37.89 billion, down from Sh38.07 billion the previous year, indicating that teachers were borrowing less.
Loans to members grew 13.4% in the previous year, from Sh33.56 billion in 2019 to Sh33.56 billion in 2019, as tutors borrowed money for maintenance at the height of the pandemic.
After 15 years of service, Ochieng will leave the Sacco.