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Tower Sacco record 30% growth rate, ranked number one by SASRA, CAK

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According to the Sacco Chairman Mr. John Gitundu, The society realized a gross turnover of Kshs.695,169,952 as at June 30. The same period in 2018 we had Kshs.532,622,195. This reflects a growth rate of 30.5%, the surplus realized was Kshs.499,310,966 as at June 30 2019 compared to Kshs.386,248,961 the same period in 2018, reflecting a growth rate of 29%.

Tower Sacco CEO Gabriel N. Waweru in a past Sacco Event

Tower Savings and Credit Co-operative Society (Sacco) recorded a growth rate of 30 percent in the share capital and member deposits in the 2019, 2019 financial year.

In a Special General Meeting held on September 28 at the Ol’Kalou Catholic Parish Ground Nyandarua County, the Sacco highlighted its progress for the past eight month, reflecting a growth rate of 29 percent.

According to the chairperson John Gitundu, the tremendous growth realized in the 2018 annual report by SASRA places the Sacco at position 11 in total deposit size. The Sacco is also rated position one in terms of percentage growth at 27.83% by CAK.

“We are also rated position one in terms of percentage growth at 27.83%, among 174 regulated saccos in the country.” said Gitundu.

The chair also cited an increase in the half year results (unaudited) which realized a colossal improvement in the gross turnover compared to the previous year.

“The society realized a gross turnover of Kshs.695,169,952 as at June 30. The same period in 2018 we had Kshs.532,622,195. This reflects a growth rate of 30.5%, the surplus realized was Kshs.499,310,966 as at June 30 2019 compared to Kshs.386,248,961 the same period in 2018, reflecting a growth rate of 29%.” added the chair.

Tower Sacco not only recorded growth in share capital, but also in membership. The society membership grew from 72,788 members in 2018 to 89,733 members in 2019, reflecting a 23.2 percent increase.

The society also recorded an increase in loan disbursement for social economic growth to its members in 2019, reflecting an increase of Kshs.1,604,305,727 to 5,321,524,731 compared to 3,717,219,004 in 2018.

The total outstanding loan with members by August 2019 is Kshs.8,818,177,118, which is the largest asset in the Sacco statement of financial position representing 86.7% of the total assets.

In its transformation agenda, Tower Sacco implemented key issues in phases since the last financial year, which include restructuring of the human resource department, implementation of new core banking system (which will take about 9-12 month) and revamping of the marketing department among others.

In an effort to bring services closer to its members, the society has rolled out and commissioned 145 agents across major towns and market centers.

“Our strategy is to increase the number of agents to 300 by the end of the year. I request all members to register for Agency Banking at any of our branches or satellites for easy access of the services. This will greatly assist the Sacco in service delivery, avoiding the long queues experienced at bank counters.” said Mr. Gitundu.

The Sacco opened its Nairobi branch in April 2019 and has since then recorded an increase in members, attracting membership application of 1,009 members, deposit mobilization of Kshs.40,225,290 and Kshs.184,362,757 loans disbursed. The branch has also recruited four members.

Introduction of Mortgage loan product

In support of the key development agenda by the government on affordable housing, Tower Sacco has developed a mortgage product that will enable its members to access funds for the construction of houses. The loan will be available to individual members as well as those in organized formal groups and are either salaried or in business (formal or informal).

“Mortgage loan being the flagship product for our Sacco for 2019-2020 financial period, we will allow members to access long term housing loans and enjoy affordable repayments thereby increasing house ownership and growth of household assets.”

Being a member of Kenya Mortgage Refinancing Company (KMRC), Tower Sacco will be able to support its members on long term financing. KMRC was incorporated in April 2018 purposely to provide secure long term funding to primary mortgage lenders.

The mortgage product a member can qualify for include residential mortgage (owner occupier, free standing, apartments) and housing loan (construction loans, plot purchase, incremental housing loan –which enable a member to extend or add more rooms to a house, and development loan).

Tower Sacco is at the forefront in realizing the co-operative movement principle of education to its members and management. It conducted several education meetings to members in Maralal, Rumuruti, Ndaragwa, Shamata, Nyahururu, Ol’Kalou, Gilgil, miharati, Engineer, Kwa-haraka, Narok and Nairobi areas, during the 2018/2019 financial period.

With an asset base of 5.4 billion the Sacco was awarded the best improved employer based Sacco tier 1 position 3 by CAK, most improved member deposit position 1 and the most improved total asset in percentage growth by SASRA, during the Co-operative Day held in July.

It also emerge overall the best managed and improved Sacco society in Nyandarua County. The society thrives under a slogan of clocking 20 billion in asset by 2020.

In attendance were KNUT representative Nyandarua South and County Co-operative officer Ol’Kalou who commended the Sacco for the spectacular growth and development it has undergone.

The Chief Guest Madam Veronica Kahura, who is also Chief Officer Department of Trade, Industrialization and Co-operatives Nyandarua County conveyed Governor Francis Kimemia’s congratulatory message to Tower Sacco for being among the best SACCOs in the country, adding that the Governor supports the Sacco and its movement.

She commended the partnership the Sacco shares with the County Government, urging youth to use the society as a means of acquiring loans to set businesses which can improve their lives and grow the county economically.

“We are happy for the partnership Tower Sacco shares with the County Government of Nyandarua. County jobs are open to everyone in Nyandarua and the county will roll out Trade fund amounting to Kshs.100,000 to enable you to do business. The money will be channeled through Tower Sacco.” said Ms. Kahura.

Kahura further urged residents to invest and save more through the Sacco to improve their lives through its products.

Tower Sacco offers loan products ranging from Karibu loan, Jahazi loan (Buyoff), Fosa Flex loan, Fosa Emergency 36, Fosa Emergency 12 and Normal loan among others.

Tower Sacco was registered in September 1976 with the sole purpose of serving primary school teachers with an opportunity to save regularly, borrow wisely and repay their loans promptly. The Sacco’s business started in the year 1977 when the first loans were given to the members.

The Sacco draw its membership mainly from; Government Ministries, The Teachers Service Commission, Kenya Defense Forces, Kenya Police Forces, Administrative Police, Kenya Prisons Service, County Governments, Public and Private Institutions of learning (Including teaching and non-teaching staff), Hospitals (Government and Private), Parastatals, Kenyans in the Diaspora, Farmers and the Business Community.

Tower Sacco also offers services ranging from Banking, Insurance, Life Assurance, Tower Cash, Diaspora services among others, which are accessible and vibrant for economic growth and development.

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