“As we gather here today it is good to note that as teachers we are happy that we managed to dispose off the bank following uncertainties here and there that saw most of our members questioning the stability of the financial institution, but it is no longer with us now and I want to assure those members who had bought shares in the bank through Mwalimu Assets Management (MAM) not to panic as the shares will be transferred into deposits, a move that has brought a lot of reprieve for our members”-Kefa Samini Chivile
By Andanje Wakhungu
Members of the giant Mwalimu National Sacco who held investments in the now sold-off Spire Commercial bank will have their shares transferred into their deposit accounts. This is after Mwalimu Sacco disposed of the struggling financial institution to Equity group following raised concerns mainly from members over its ability to serve them effectively.
Branch chairman Kefa Samini Chivile said while addressing members of Mwalimu during the Sacco’s 2023 annual general meeting of the Malava/Lugari branch held at Friends Maturu church. He assured members that the Sacco was running smoothly and that there was no cause for alarm since the bank had been sold off. “As we gather here today it is good to note that as teachers we are happy that we managed to dispose off the bank following uncertainties here and there that saw most of our members questioning the stability of the financial institution, but it is no longer with us now and I want to assure those members who had bought shares in the bank through Mwalimu Assets Management (MAM) not to panic as the shares will be transferred into deposits, a move that has brought a lot of reprieve for our members”.
The chairman noted that there have been a lot of political and economic challenges including world economic instability, and a volatile general election in 2022 and Covid 19 that impacted negatively on the operations of the Sacco, especially on credit access. He however hailed the Sacco management and members for ensuring that the Sacco remained vibrant.
“Although we have been through rough waters we have managed to harness momentum in restructuring our subsidiaries and consolidating our balance sheet for a leaner and cost effective structure through policy interventions”. To ensure that our members are comfortable, Sacco has reviewed loaning terms to cushion some members who had challenges in meeting loan obligations. Further, he added: Our Sacco has reviewed Ufanisi loan terms, tenor on normal and development loans, pro rata policy allowing members to access more credit, provision of advance against expected dividends and rebates starting July besides also adjusting Fosa salary instant multiplier factor.
He also said that the Sacco had resolved to sell a piece of land (15acres) but due to low business in the real estate market, it has been unable and hence opted to sell it via an off-plan arrangement where any member willing and who would be able to meet the subdivision and legal costs, will be awarded a title deed
The 280-member meeting was informed that its national membership has been on the upward trend standing at 117,337(2022), from 106,602 (2021) and 101,555 (2020) with its deposit clocking 47.3 Billion from 44.3B(2022) and 41.4 B(2020) respectively. On loans, Sacco recorded 43.5 billion in 2022 from 37.9b and 38.1b in the last two financial years with its turnover now standing at 7.7 billion in (2022) while its asset base stood at 63.2 billion last year.
And in reference to the 2022 annual delegates meeting (ADM), the chairman said Mwalinu Sacco had resolved to sell their piece of land (15acres) but due to low business in the real estate market, it has been unable and hence opted to sell it via off-plan arrangement where any member willing and who would be able to meet the subdivision and legal costs, will be awarded a title deed. “We are subdividing the acreage into 1/8 plots to allow many members to purchase and it will be easier that way. “
The Sacco has further sold 500 houses out of the 827 of its Kisaju housing scheme and noted that the move has been progressive interns of payment. Mwalimu Sacco’s newly launched product (Asset financing product and insurance financing on 12th January 2023) aims to give members access to credit facilities to enable them to acquire businesses and personal equipment for use.
Our new product is key as it now gives our members the liberty to seal loans to purchase motor vehicles, and building and construction equipment for both business and personal use. It is self-securing loan product financing of movable assets through assets financing loan and insurance premium financing.,” The Sacco also held an election where three slots were to be filled with the Lugari delegate Festus Lukote retiring from the teaching service, Jemima Nekesa being reelection as the Malava zone delegate and Jairus Muyaka also defending his Matete zone seat.
The chairman was reelected unopposed alongside his branch secretary Newton AKaranga while Jemima assumed her treasurer position.
