Harambee DT Sacco is emerging as a formidable competitor to money market funds, positioning itself as an attractive investment option for mid- to long-term investors. With a 15 per cent payout on share capital for the second consecutive year and a 9 per cent interest on deposits in 2024, up from 9 per cent in 2023, the Sacco offers some of the most competitive returns in Kenya’s financial markets.
The Sacco’s total assets grew by over Sh2 billion, rising from Sh36.7 billion in 2023 to Sh38.6 billion by 31 December 2024. Its loan book expanded from Sh29.1 billion in 2023 to an all-time high of Sh32 billion in 2024. “Share capital was at Sh2.3 billion; it now stands at Sh2.5 billion. Our total revenues were trending at Sh5.7 billion, and they have now reached Sh7.01 billion. Finally, our net surplus was Sh1.2 billion, and we closed the FY 2024 at Sh1.46 billion,” said CEO George Ochiri.
Unlike money market funds, Sacco earnings are not subject to management fees, which typically stand at 2 per cent per annum, further enhancing net returns for investors. “Our aim is to provide members with not just competitive returns but also a stable and secure investment vehicle in a volatile financial landscape,” said the CEO.
According to the Capital Markets Authority (CMA), Kenya’s Money Market Funds (MMFs) remain the dominant investment option within Collective Investment Schemes (CIS), holding Sh196.8 billion in assets as of September 2024, accounting for 62 per cent of the total CIS assets. However, despite the sector’s overall growth, MMF yields have been on a downward trend. While some top-performing MMFs, such as Lofty Corban and Cytonn, have maintained returns of up to 16.64 per cent per annum before tax, the net return after management fees and withholding tax remains lower compared to Harambee DT Sacco’s 15 per cent dividend on share capital and 10 per cent interest on deposits.
Harambee’s institutional capital ratio improved from 7.7 per cent in 2023 to 9.9 per cent in 2024, exceeding the required 8 per cent minimum.
