Nation Sacco to open outlets across country

Nation Sacco will this year embark on a countrywide branch expansion and membership recruitment to boost the lender’s growth.

The sacco will by June open shop in Mombasa as part of a plan to establish presence in major towns and county headquarters.

The mid-sized sacco reported an after-tax profit of Sh35.19 million in the period to December 2016 compared to Sh36.6 million the previous year.

“Good performance is increasingly being influenced by numbers and a solid, broad membership base will be key to our success. To increase our reach across the country, we plan to open marketing offices in selected regions starting with Mombasa this year,” said Nation Sacco chairman Peter Munaita.

The other towns in the expansion plan include Eldoret, Kisumu, Nakuru and Nyeri. Previously known as Nation Staff Sacco, the union rebranded to Nation Sacco in 2012 and opened membership to all eligible adults whether in business or employment. Before the move it was limited to employees of the Nation Media Group.

Interest income increased 14 per cent to Sh172.5 million, while fees and commissions remained flat at Sh5.07 million, blamed on “challenges of implementing a new software” for front office services.

Nation Sacco’s loan book grew 12 per cent or Sh139.9 million last year to stand at Sh1.24 billion in the period under review.

The members’ society had deployed a new software to integrate all business units and plans to launch a mobile-based-loan platform by mid this year.

Its current membership stands at 3,325 mostly comprising current and former NMG staff.

Despite the drop in profit, Nation Sacco maintained the dividend rate to be paid out on members’ deposits at nine per cent; with payout on members’ shares flat at 15 per cent.

Kenya’s deposit-taking saccos paid an average interest of 8.08 per cent to members on their deposits, and a further 5.04 per cent as dividends on the share capital in 2015; according to data from Sasra, the sector regulator.

Loan loss provisions increased to Sh15 million from Sh10 million in 2015. The volume of non-performing loans increased to nine per cent of total from seven per cent in 2015, according to the audited financials prepared by Billsmith & Co Associates.

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