Harambee Sacco will pay its members an all-time high interest on deposits of 9 per cent, up from 8.5 per cent in 2023, National Chairman Macloud Malonza has announced. Speaking during the 54th Annual Delegates Meeting, Malonza also revealed that members will receive another record-high payout of 15 per cent on share capital, an increase from 12 per cent in 2023.
“Ladies and gentlemen, this trend is unlikely to stop anytime soon. The Board has approved a management proposal to award our members an additional 3% rebate on any dividend capitalised and 2% on any interest on deposits ploughed back into their BOSA account. I urge our members to take advantage of this initiative and grow their wealth,” he said.
Malonza further stated that the Sacco has strengthened its institutional capital-to-total assets ratio, an area where it previously fell short of the statutory requirement of 8 per cent. The ratio has now improved from 7.7 per cent to 9.9 per cent. He affirmed that the Sacco is now free of past financial burdens and compliant with all key statutory ratios.
“For Core Capital to Total Assets, the requirement is 10% or above, and we now stand at 16.4%. In Core Capital to Total Deposits, where the threshold is 8% or more, the Society is at 24.1%, well above the statutory standard. The same applies to the Liquid Assets to Savings Deposits and Short-term Liabilities ratio, which must be at least 15%—we are currently at 16.8%,” he added.
Speaking at the same meeting, Chief Executive Officer Dr George Ochiri described 2024 as a turning point for the Sacco, given its improved financial position and compliance with the institutional capital ratio requirement.
“We have finally met the institutional capital ratio that had eluded us for years. We closed the year at 9.9%, up from 7.7% in the previous year—exceeding the regulatory requirement of 8%. We also took a bold step by implementing the strict IFRS 9 reporting standard,” he said.
Dr Ochiri further reported that the Sacco’s total assets grew from Ksh 36.7 billion in 2023 to Ksh 38.6 billion by 31st December 2024. Additionally, the loan book expanded from Ksh 29.1 billion in 2023 to Ksh 32.0 billion, while members’ deposits increased from Ksh 24.6 billion to Ksh 26.2 billion. The Sacco’s core capital rose from Ksh 5.1 billion in 2023 to Ksh 6.3 billion in 2024.
Share capital, which stood at Ksh 2.3 billion in 2023, has now grown to Ksh 2.5 billion. Total revenues, which were trending at Ksh 5.7 billion, have now reached Ksh 7.01 billion. Net surplus also increased from Ksh 1.2 billion to Ksh 1.46 billion.
Despite these successes, Dr Ochiri acknowledged that some targets had not been met, particularly the plan to open five brick-and-mortar satellite offices across the country. “We focused on renovating the Nanyuki FOSA branch despite tight cash flow, which was affected by increased loan demand. We have now shifted this target forward and are optimistic about acquiring two offices in 2025,” he said.
“We had also planned to renovate the Nairobi FOSA branch and the third floor of the Sacco Plaza, but this remains another pending project that we are determined to actualise, and we have therefore pushed it forward,” he added.
