A CALL TO RETAIN EARNINGS AS MENTOR SACCO SUCCESSFULLY HOLDS MAKUYU’S MEMBERS’ EDUCATION,TRAINING AND INFORMATION DAY
Members turn up in large numbers to hone their skills in pertinent financial matters
By George Gichuki
Kenol is one of the fastest growing urban centres in Murang’a town ; and indeed in the Central Kenya region. Significantly, it is served by a very good road network- Thika Superhighway as well as the Kenol – Marua highway. This has contributed immensely to the socio-economic transformation of this town and its environs. Strategically located in Kenol is a fully fledged branch of Mentor Sacco which serves members from the Makuyu electoral area. On the last Saturday of May, the Sacco organized a very successful members’ education, training and information day ( MID) at the DC’s Hall in Kenol town.
Mrs. Joyce Ndegwa, CEO, Mentor Sacco was one of the key speakers in this event. In her presentation, she emphasized on the need of retaining the current members of the Sacco, even as new ones come on board. “ We have placed membership growth, empowerment, and retention as part of our strategic journey,” she said while emphasizing that enhanced retention is important for the growth and long term stability of the Sacco. “ We must build and retain our membership – retention ensures continuity, builds confidence, besides fueling innovation and development,” she added.
The theme of this year’s MIDs is : ‘ Enhancing members’ financial success through education and information.’ On the sidelines of this event, Mrs. Ndegwa said that one of their major goals is to educate members continuously so that they can make sound financial decisions and become financially independent. “ This can only happen if they are well informed and educated,” she averred.
Going by the tradition, the attendance of the Makuyu electoral area MID was very high. “ Today, as per the registration, 1,558 members attended our MID,” said the CEO adding : “ We really appreciate them for sacrificing their time and actively participating in this event by asking questions and sharing feedback.” This feedback helps the Sacco to come up with ways and means of serving its members better.
Retained earnings
Mentor Sacco is also educating its members on the need to hold onto part of its net profits to fund future activities and sustain long term growth and stability. A big percentage of the Sacco’s net profits is paid to members every year in form of dividends on the share capital and interest on ordinary deposits. In the 2024 financial year for instance, the dividends and interest on ordinary deposits that the members received amounted to Kshs. 1.4 billion. “ It is important for us to retain a significant portion of our net profits every year to fund our growth and ensure that our posterity will inherit a solid financial institution,” Mrs. Ndegwa observed.
Last year, in line with its strategic plan, Mentor Sacco undertook a major project; it launched a robust core-banking system dubbed Business Central Dynamics 365. Additionally, the Sacco launched a fully-fledged branch in Kiambu town early this year. “ The two projects were capital intensive hence underscoring the need of retaining a good percentage of our earnings every year,” the CEO emphasized. Against this background, the Sacco is keen on striking a balance between the money it pays members annually as dividends and interest vis-à-vis the need to retain earnings to fund its growth.
