Harambee loses 17,700 members in 3 years
Harambee Sacco Society has lost 17,730 members in the last three years which led to an Sh4.82 billion payout, the lender said yesterday.
Its annual revenue for 2021 however surged to Sh4.2 billion, having recorded a 32 per cent growth attributed to an increase in loan uptake, while the firm disposed of assets to boost liquidity.
“The growth of members deposits and savings was impeded by almost equivalent withdrawals, where the society paid out a total of Sh1.42 billion to members who withdrew in 2021, compared Sh1.32 billion paid to members who left the Society in 2020,” read its financial report for 2021.
In 2021, the loan book contributed to 81 per cent of the revenues, with the deposit-taking Sacco saying loans and advances went up by 11 per cent from Sh21.87 to Sh24.38 billion in 2021.
The society lost 17,730 members paying out Sh4.82 billion in return, a majority of exits attributed to retirement within the civil service cadres. “Most of these are our founder members who make up the most loyal segment of our membership.”
The operating expenses increased by 18 per cent to Sh3.62 billion as compared to Sh3.06 billion reported in the previous year.
Ali Noor Ismael the Principal Secretary of State Department for Cooperatives says the cooperative Sector has remained steadfast. “Saccos commands an asset base of Sh1.3 trillion and Sh885 billion in savings and deposits,” said Noor.
