By The Weekly Vision Team
Bandari Sacco held its 49th annual general meeting last weekend at the City Blue Creekside Hotel in Mombasa. The event brought immense pleasure to the thousands of members in attendance, the board and management. The Sacco chairman Mr. Odero Sungu took the opportunity to review the Sacco’s achievements and outline their future endeavours in promoting sustainable growth.
During the ADM, members expressed their appreciation to the board and management for recommending an 18% dividend payment on share capital and a 12% interest rate on members’ deposits (FOSA/BOSA) for the fiscal year ending on December 31, 2023. According to a report presented the chairman, in 2023, the Sacco experienced a 6% growth in total assets, a 10% growth in gross loans, and a 9% growth in total deposits. Additionally, the Sacco’s income grew by 21%, highlighting the strength and resilience of their business model.
Members were taken through a series of milestones and successes. The first achievement was the establishment of Nairobi Westland’s satellite office, in accordance with a resolution made during the 48th ADM to capitalise on business opportunities in the vast Nairobi region. An update on the Bandari Investments was shared with the members. During his speech, the chairman announced that the construction of the Sacco Plaza was underway, adding that with the current pace of development, it is expected that the Sacco’s 50th anniversary celebrations will be hosted at the new plaza.
In his address, the chairman emphasised that Bandari Sacco is committed to enhancing her market position and engaging stakeholders effectively under the Sacco’s strategic plan for 2023–2027 through the implementation of strong corporate social investment programmes that will elevate the visibility of the Sacco’s brand. Furthermore, it was reported that the Sacco has procured an ICT system called Microsoft Dynamics 365 Business Central, with plans to activate it in the second quarter of 2024. The introduction of this new system is expected to resolve the persistent challenges faced by the current system.
The chairman notified members regarding a proposal to open a new KCB bank account in Kisumu. According to the proposal, the opening of a branch in Kisumu means that opening an account in close proximity to the Sacco will streamline cash delivery for FOSA operations. The board was therefore seeking approval from members for the opening of the said current account.
To ensure the payment of dividends to its members, the board also sought the approval of a fixed account opening with the Housing Finance Corporation of Kenya Ltd. This decision is consistent with the Sacco’s practice of investing funds in fixed deposit accounts provided by financial institutions, aiming to earn better interest. In its proposal, the board recommends HFCK, saying it provides competitive interest rates for fixed deposits. As a result, the board sought members’ approval to initiate an account opening with HFCK.
To enhance the welfare of the Sacco and provide further benefits to its members, the board recommended that the borrowing power ceiling be kept at Ksh. 900 million as a precaution for unforeseen circumstances. In his speech, the chairman extended his appreciation to the Sacco members for their loyalty and support to the board in ensuring the effective management of the Sacco.
The meeting, which was held at the City Blue Creekside Hotel in Mombasa, was graced by, among others, Ms. Kibibi Abdalla Khamis, the County Executive Committee, the Department of Blue Economy, Agriculture, Cooperatives, and Livestock. With a strong membership base of 25,000 individuals from the corporate and business communities, Bandari Sacco stands out. It has been acknowledged as the “Most Preferred Sacco in Kenya” by the Kenya National Chamber of Commerce & Industry Business Awards in 2018, 2019, 2021, and 2022, which is a testament to its excellence.
Among the Fosa products and services are the Landlords Account, Dau Juniour Account, Personal Savings Account, Staafu Savings Account, Holiday Savings Account and Bima Account among others. Other loan products include Asset finance, Mortgage Financing, M-Hela, Jipange loan, Welfare/Chama loan and Bosa-Jahazi loan among others. The sacco also offers accounts such as the Diaspora account, Kijana account and Cosporate credit, loans and advances. The sacco also offers LPO financing to her members.
