ANOTHER SUCCESSFUL YEAR FOR MENTOR SACCO

Leading tier one Sacco pays   higher dividends as its   profits and membership grow

Mentor Sacco, a leading tier one savings and credit co-operative society in Kenya recently held a highly successful Annual General Meeting (AGM) at Ihura Stadium, Murang’a.  It was the 46^th AGM to be held by the Sacco since its establishment in 1977 by only three hundred teachers. With the relaxation of the Covid-19 guidelines and protocols that had been given by the government at the peak of the deadly pandemic, the AGM registered a record attendance of over two thousand members.  By the same token, over eighteen thousand members followed the AGM’s online transmission.  In 2021, Mentor Sacco amended one of its bylaws, giving room for hybrid meetings.

More members

Delivering his speech during the  well-attended AGM, the Chairman,   Mr. Anthony Kamau, observed  that the  Sacco’s  remarkable  reputation in financial stability, attractive  product offering and  an  aggressive  marketing  campaign  contributed to its growth in membership.   “In 2022, we recruited 5,633 new members, compared to 4,517 in 2021,” said Mr. Kamau adding that this led to 15.1% growth in total membership from 28,032 in 2021, to 32,599 in 2022.  Mentor Sacco was able to make major inroads into Kiambu, Nairobi and Kajiado counties as a result of its well-coordinated marketing.

Asset base

 The Sacco Society Regulatory Authority (SASRA) ranks the Saccos with an asset base of over Kshs.5 billon as tier one.   Mentor  Sacco, whose asset base in 2022 grew to Kshs.11.76 billion compared to Kshs. 10.3 billion in 2021 is in that category.  This represented a growth rate of 14.1% and it was 3.3% higher than in 2021.

More growth

The minimum amount of share capital   that every member should invest with Mentor Sacco is Kshs. 30,000.  Nevertheless, the board has allowed willing members to boost their share capital beyond the said amount. That enables them to earn more dividends.  In the 2021 financial year, Mentor Sacco’s share capital grew from Kshs. 625.8 million to Kshs.739.5 million.  That was an increase of 18.2%, in comparison to 13.7% in 2021.  Additionally, the total members’ deposits increased from Kshs. 7.84 billion in 2021 to Kshs. 8.908 billion.

In the 2022 financial year, Mentor Sacco also performed well in the lending business. “   Over 10,811 members were financed to the tune of Kshs. 7.4 billion, compared to Kshs. 7.12 billion granted in 2021,” said Mr. Kamau.

Higher dividends

True to its tradition, the total income of Mentor Sacco grew from Kshs. 1.315 billion in 2021 to Kshs. 1.541 billion in 2022. In that regard, members were paid dividends amounting to Kshs. 1.018 billion. That   was an equivalent of 66% of the total income in the said financial   year.  It was 18.7 % more than the 2021 dividends payment.