Kenya cooperative movement, rated the best in Africa, continues post impressive results that poses a threat to commercial. In the latest such results, Yetu DT Sacco in Meru County grossed Ksh1 billion ($7.73 million) in profits following an historic membership registration drive for the first time in its 33-year history.

The Ksh1 billion can best some commercial banks performance, including membership.

In recent times, the Sacco has recorded a surge in membership, overshadowing their peers, with at least over 20,000 new entrants being enlisted over the past one year, pushing the figures to 104,159 people.    

To crown the success, members will enjoy the highest-ever, and probably the highest dividends playout in the country, of 19 percent per share, reaffirming their strength and commitment to financial growth.

Speaking during their annual general meeting in Meru, the Sacco’s Chief Executive Officer (CEO) Denis Kirimi said the milestone, including 23 per cent growth in assets, underscores the organisation’s resilience and commitment to wealth creation for its shareholders.

“I am pleased to report that the Sacco stands on solid ground today having strengthened our balance sheet, enhanced risk management and controls, ensured sufficient liquidity, and sustainable profitability,” said Kirimi.

He added that the operating profit grew by 54 per cent to stand at Ksh273.7 million ($2.12 million) with Ksh238 million ($1. 82 million) being the net profit for the year, representing a 58 per cent increase over the previous year.

“Loans and advances growth was 37 per cent to stand at Ksh5.5 billion ($42.51 million) while deposits grew by 20 per cent with a standout performance in branch banking which significantly contributed to our total deposits now standing at Ksh4.9 billion ($37.9 million),” said Kirimi.

To support the Sacco’s growth trajectory, the CEO added, we have invested in strengthening our risk management and technology capabilities, as well as implementing strong underwriting standards that enhance the quality of our assets while allowing sustainable growth.

Sacco Board Chairman Mark Gitonga on his part said the Sacco has continuously embraced and endeavoured to practice good corporate governance and practices in line with guidelines, rules of this country and any other laws that govern the corporate world.

“This year we shall be issuing Ksh443 million ($3.423 million) in form of dividends and interests on deposits recording an increase of Ksh103 million ($795,984) compared to Sh340 million (2.63 million) in the year 2023.”

“This is a good return to members and I urge you all to utilise it well. I further urge you to invest more in terms of both capital shares and members’ deposits to earn more,” said Gitonga.

He reported that phase one of their six-floor signature building from the funds that were set aside for the purpose was completed in November 2024 and successfully relocated services.

“The second phase is ongoing and by May this year, we shall be done and set to occupy the entire building,” a confident Gitonga said, adding that 2025 will even be better.

• A Tell / KNA report/ By Dickson Mwiti