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A NEW DAWN FOR MENTOR SACCO

Leading tier one Sacco upgrades its core banking system, launches a branch and registers good results in the 2024 financial year

By George Gichuki

2024 was yet another successful financial year for Mentor Sacco. The lender’s total revenue grew from Kshs.  1.83   billion in 2023  to  Kshs. 2.16 billion.  This  came as a boon  to  the members  who  received  a  total of Kshs. 1.4 billion  in  dividends  and  interest.   Headquartered in Murang’a town, the tire one Sacco has   continued to grow in membership and profitability.   Mentor   was established in 1977 by  a small team of ambitious  teachers from the then Murang’a  district.  At that time, it was known as Murang’a District Teachers Co-operative Society.  After opening  its  common  bond  to  accommodate members from  other  professions ,  the   civil service and business  world,  it successfully rebranded in 2011. This strategic move positioned   the Sacco for more  growth and expansion.   In that regard,  it  started  developing   innovative  products, enhancing   its  service  delivery ,  besides  launching    branches  in strategic locations.

SERVING MEMBERS DILIGENTLY: Mentor Sacco board of directors.

Currently, Mentor Sacco has established   branches in Murang’a, Nairobi, Thika, Kenol,  Ithanga, Kiambu, Kiria-ini, Kandara, Kangari, Kahuro and Kangema.  The Kiambu branch was launched early this year in response to the members’ needs.  Its goal is to take services closer to the members in Kiambu County and its environs. 

The tier one Sacco   has grown in leaps and bounds over the last forty eight years.  Most importantly, it   has successfully   navigated   many challenges for close to five decades, demonstrating   remarkable resilience and agility.  Consequently,    it   stands    out in a market that is characterized by cut throat competition.  

Performance

By penetrating new market territories and leveraging technology, in 2024, the membership of Mentor Sacco grew to 44,083 from 39,912 in 2023. The Chairman, Mr. Eliud Mbugua, attributed this growth to the Sacco’s financial stability and aggressive marketing.  By the same token, its asset base grew from Kshs.13.5 billion in 2023 to Kshs. 15.8 billion in 2024.  “ Over the last three years, our  total  assets  have grown by over 52.8% ( an equivalent of Kshs. 5.44 billion) –  that is from Kshs. 10.31 billion in 2022 to Kshs. 15.8  billion in 2024,” said   Mr. Mbugua  during the 48th Annual General Meeting ( AGM) at Mumbi Grounds, Murang’a town.

Mr. Eliud Mbugua, Chairman, Mentor Sacco addressing members during the 48th AGM.

Significantly also, the share capital of the Sacco grew from Kshs. 869 million in 2023 to Kshs. 1.03 billion in 2024. In his presentation, Mr. Mbugua encouraged the members who have not attained the minimum share capital of Kshs. 30,000 to do so in order to earn higher dividends.  Additionally, the members’ savings and deposits increased from Kshs. 1.3 billion in 2023 to Kshs. 1.7 billion in 2024 – an equivalent of 16.5%.  “This growth demonstrates that our members have confidence in their Sacco and they are satisfied with our products and services,” Mr. Mbugua further said.

One of the fundamental functions of Mentor Sacco is advancing credit to its members in a bid   to improve their livelihoods.  “In the 2024 financial year, we reviewed various loan products to align with the strategic objective of making lending more competitive,” said Mr. Mbugua adding that this was based on the members’ feedback.  Consequently, the Sacco disbursed over Kshs. 9.9 billion in 2024, compared   to Kshs. 7.1 billion in 2023.  In the same vein, its loan portfolio increased from Kshs. 9.86 billion in 2023 to Kshs.11.65 billion. Nevertheless, Mrs. Joyce Ndegwa, the chief executive officer observed that currently, two thirds of their members have not taken loans, despite meeting the necessary requirements. She encouraged them to do so given that this is the main revenue stream of the Sacco.

Mrs. Joyce Ndegwa, CEO, Mentor Sacco responding to some issues raised by members.

Milestone

In 2024, Mentor Sacco achieved a major milestone; it upgraded its core banking system. “In an effort to enhance the efficiency and effectiveness of our operations, in October 2024, we transited to a new core banking system – the Dynamics 365 Business Central,” Mr. Mbugua told members during the AGM. “The transition reflects our commitment to modernizing the Sacco operations, enhancing service delivery and remaining competitive,” he added. He further said that by adopting an interactive core banking solution, Mentor Sacco is now well positioned to meet the evolving needs and expectations of its members in an increasingly digital and competitive landscape.  “It demonstrates a commitment to continuous improvement and a willingness to embrace change in pursuit of excellence by all stakeholders,” he said.  “Moving forward, we intend to leverage the new core banking system to drive operational efficiency and deliver superior member experience,” he emphasized.

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