Deposits,
A Murang’a based Sacco has announced increment of interest rates for investor deposit accounts for members who will increase their deposits to more than Sh. 100, 000.
Officials of Amica Sacco during its special annual delegates meeting on Thursday also announced that those who will have more than Sh. 100, 000 in their investor deposits accounts will get free last expense cover of Sh.100, 000 for principal member and spouse.
The Sacco’s CEO Dr. James Mbui stated that they are targeting to raise more than Sh. 1 billion in the investor deposit accounts by the end of next year. The announced benefits, Mbui said they are meant to encourage members to increase their deposits considering the rate of deposits have gone down occasioned by high cost of living.
“We have opted to increase the interest rate for investor deposit accounts by 10 percent. This will encourage our members to increase their deposits as the Sacco targets to raise a revenue of more than Sh. 1 billion in the coming year,” said the CEO. Mbui expressed concerns that some of the government’s policies will affect the ability of members to make deposits or service their loans.
“The Social Health Insurance Fund which replaced NHIF from the beginning of this month requires employers to deduct and remit 2.75 percent of employee’s gross salaries. “This reduces disposable income for our salaried members by 5 to 7 percent further impacting their financial stability. This can also make some of the members unable to service their loans.” He added.
Mbui said the government should prudently use the collected money for SHIF in offering universal health care so that residents can be relieved of the burden of buying drugs and other medical care expenses. Meanwhile Mbui reported a remarkable growth of the Sacco in total assets, which increased by Sh.929 million over the past one year, representing a 92 percent expansion in the Sacco’s portfolio.
He also revealed that the Sacco is targeting further growth, with plans to increase total assets by Sh.1.48 billion in 2025. “Of the targeted Sh.1.48 billion in the coming year, the Sacco anticipates to incur expenses of Sh. 1.15 billion, resulting in an expected net profit of approximately Sh. 350 million.” He remarked.
Further, Mbui noted that more people are investing with Amica Sacco, which has led to an increase in the members’ total savings to stand at Sh. 6.1 billion, a 13 percent increase. “Additionally, the value of the Sacco’s shares has also risen by 6 percent, totaling Sh.846.6 million.” He said
The CEO attributed Sacco’s impressive financial performance to the adoption of modern technologies such as mobile banking, which has enhanced transaction efficiency for members. He emphasized that with this robust growth, the Sacco is committed to ensuring its members benefit significantly.