Mwalimu Sacco Deposits Shoots To Sh44 Billion.
Deposits at Mwalimu National Savings and Credit Cooperative Society increased to Sh44.3 billion last year, reflecting approval from its members, who are primarily from the teaching profession.
This represented a 6.9 per cent increase over the Sh41.4 billion deposits mobilized by the teachers’ Sacco in 2020, at a time when the government had refused to increase teachers’ salaries.
The state failed to honour various collective bargaining agreements with public employees. Despite this, the Sacco was able to increase its membership by gaining an additional 2,058 members, which explains the increase in deposits.
Sacco’s assets, which include the loans it has made to members, increased by about 5% to Sh60.6 billion.
Sacco Chairman John Ochieng noted that this growth occurred despite a difficult operating environment marked by the negative effects of Covid-19, slow teacher employment, and a pay increment freeze.
“The success was made possible by concrete steps to streamline the business and cost of optimisation through five key result areas,” Ochieng said in a statement announcing his departure from the Sacco.
Business growth, customer focus, digitisation, governance, risk and compliance, and efficient human capital management are the five key result areas. This comes at a difficult time for Sacco, with its new leadership making it clear that they are ready to cut all ties with the loss-making Spire Bank.
This is expected to relieve the Sacco of a significant financial burden.
The Sacco also intends to take its time in the real estate business, divesting from Mwalimu Assets Management and selling the remaining houses in a project in Kisaju, Kajiado County, as well as some land.
The Sacco increased its revenue – from investments and interest on loans made to members – to Sh7.58 billion during the review period, up from Sh7.22 billion the previous year.
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The Sacco’s loan book was Sh37.89 billion, down from Sh38.07 billion the previous year, indicating that teachers were borrowing less.
Loans to members increased by 13.4% in the previous year, from Sh33.56 billion in 2019 to Sh33.56 billion in 2019, as tutors borrowed money for upkeep at the height of the pandemic.
After 15 years of service, Ochieng will be leaving the Sacco.