Mediamax sacco approves 8pc dividend payout
Mediamax Network staff sacco survived a tough financial year characterised by retirement and a loan disbursement freeze to post improved dividends and an increase in total interest income.
The fast-growing sacco, which comprises Mediamax employees, suffered a huge blow towards the end of 2019 when more than 100 employees were declared redundant.
Members, in an annual general meeting on Saturday, approved an improved dividend payout of 7.7 per cent on cumulative deposits, one percentage point higher than the 6.7 per cent members received last year.
Despite the challenges, the sacco gave out more than Sh31 million worth of loans to its members last year.
The sacco’s audited report showed that interest income for the year ended December 2019 rose to Sh3.86 million up from Sh3.46 million recorded in 2018.
“Total interest income rose to Sh3.86 million last year from Sh3.46 million in 2018. Expenses, unfortunately, also rose to Sh1.02 million up from Sh763,000.
During the period, however, we managed to disburse loans amounting to Sh31.33 million down from Sh36.03 million the previous year,” said sacco chair Anthony Timase.
“Management is recommending a dividend of 7.7 per cent based on cumulative deposits as up to December 21, 2019 which is one percent higher than what we offered last year,” he added.
Last year’s events saw the number of sacco members reduce from 168 to 162, while the number of dormant members rose from 63 to 72.
“To illustrate that indeed 2019 was a tough year members’ deposits dropped from Sh34.04 million to Sh32.1 million, a figure that should ordinarily be growing year on year,” said Timase.
