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Chai Sacco assets grow by Sh600m

Chai Sacco has announced a total asset increase of 23 per cent in last year’s financial year at Sh2.8 billion up from Sh2.2 billion reported in 2015.

Members’ deposits also increased from Sh1.5billion in 2015 to Sh1.8 billion last year.

“Rebates payable to the members based on their deposits has increased to 6.5 per cent and dividends based on shares capital increased to 12 per cent,” he said.

The results were announced on Saturday during its 44 Annual General Meeting that brought together delegates from various tea factories and stakeholders.

Speaking during the AGM at Kenya Institute of Education Development at Nairobi, the aacco Chairman Boniface Ayub said at the end of last year, the sacco recorded an overall growth of 23 per cent compared to the previous year’s 16 per cent.

The total revenue also increased by 20 per cent, from Sh334 million reported in 2015 to Sh401 million.

Member share capital grew by 120 per cent from Sh103.7 million in 2015 to Sh228.1 million in 2016.

Loans to members increased by 15 per cent last year to stand at Sh2.3 billion up from Sh2.0 billion reported the previous year.

“Administrative expenses increased by 39 per cent from Sh117 million to Sh163 million while other expenses increased by seven percent from Sh38 million to Sh41 million,” he said

Mr Ayub said during the year, membership of the society also grew from 12,862 to 20,343 representing 58 per cent growth.

“Despite the growth in membership, 7,205 members were dormant representing those that were recruited into the Sacco, those who did not make regular deposits and those who withdrew their deposits,” he said.

He said, the Sacco is targeting to mobilise share capital amounting to Sh137 million and Sh300 million in deposits.

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