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SACCO Eyes SMEs to Grow its Asset Capital Base

A Murang’a based Sacco is targeting to attain an asset capital base of Sh10 billion within a period of three years.

Amica Sacco which currently has an asset capital base of Sh3.5 billion aims to incorporate small and medium enterprises to grow its capital base.

The Sacco’s Chief Executive Officer Mr. James Mbui has said the financial institution is working on various products which will be of great benefit to SMEs.

The Sacco for a long period has been relying on coffee and tea farmers but recently has opened doors to incorporate other small and medium business enterprises.

Speaking during commissioning of a refurbished Sacco office at Kandara shopping centre in Murang’a on Saturday, the CEO said despite economic hardships during this period, the institution was able to attain deposits of more than Sh500 million.

“Despite reduction of income from tea and coffee to about 50 percent, as a Sacco we have witnessed growth of deposits from our esteemed customers,” stated the CEO.

He noted that they will move to provide financing for properties to small scale entrepreneurs with target to grow its asset capital base.

“We are targeting to finance those in boda boda industry, individuals who want to buy land and motor vehicles among other types of properties at minimal interest rates,” added Mbui.

The Sacco, he added will also target to bring   on  board avocado and macadamia farmers after the crops proved to be doing well in the market.

“We started with coffee and tea farmers but now we are bringing in dairy, macadamia and avocado farmers. The Sacco will be able to finance the farmers in order to boost their production,” he noted.

Mbui said they are investing heavily in digital platforms so as to ease processes of transacting business with the micro finance institutions.

“With mobile banking, our customers can access various services through their phones without necessarily visiting out branches,” he added.

The Sacco, which currently has 17 branches where 15 of them are within Murang’a county hopes to open new branches in other counties.

Speaking during the same occasion Murang’a county Woman Representative Sabina Chege lauded the contributions cooperative societies have made to economic growth of the county.

“Cooperative societies are very important for the wholesome growth of the people as well as the economy of the county and country at large if they are well managed,” noted Chege.

She said both levels of governments should come in and work on challenges facing farmers observing that this year coffee and tea farmers have incurred huge losses due to fluctuation of prices.

“Proper strategies need to be established to support farmers from incurring losses occasioned by poor prices of their produce,” she noted.

By Bernard Munyao

 

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