Sacco Times

Keeping you informed

Tabassum targets Sh1 billion in assets, backs Sacco-Central plan

5 min read

Kwale-based Tabasamu SACCO plans to cross the Sh1 billion assets portfolio mark this year buoyed by a strong performance in the period ended December 2021.

In the year under review, Tabasamu’s total assets grew by a record 97 percent or KSh85 million to close at KSh963 million, Board Chairperson Madam Felister Mutisya said during the society’s 44th Annual Delegates Meeting.

“We anticipate to hit a billion mark by the end of 2022,” Ms. Mutisya added.

In a year that saw the SACCO grow membership by 494 to 5,965 members, the net loans advanced to borrowers surged by 18 percent to KSh428 million from KSh363 million given out in 2020.

“The Samburu office opened its doors on 1st November 2021 and for Lungalunga office, all the logistics have been put in place and we shall start operating on 1st March 2022. Patronize those offices and recruit more members,” Ms. Mutisya urged the delegates.

In the annual forum, Tabasamu SACCO also resolved to join the government-backed Kenya SACCOCentral Liquidity and Shared Services Cooperative Society Ltd, which is simply referred as SACCO-Central.

SACCO-Central is billed to provide member cooperatives across Kenya with shared technology services such as a Management Information System (MIS) at a reasonable cost. The initiative will also see SACCOs in Kenya link to a Central Liquidity Facility, enabling them to participate in the National Payment System (NPS).

“The MIS will also have the capabilities of linking our SACCO to the National Payment System and the lender of last resort services offered by the Central Bank of Kenya,” noted Ms. Mutisya.

Such a tie-up with top financial and banking institutions in Kenya will see Tabasamu SACCO members transact with other cooperatives via ATMs, mobile money, or through cheque payment systems, she explained.

While noting that 2021 was a tough year marked by pandemic-induced economic challenges, Tabasamu SACCO savers have a reason to smile after the Board of Directors recommended the payment of dividends on share capital at 10 percent, and interests on members’ deposits at 4 percent.

Tabasamu Sacco Chairperson Felister Mutisya shares a point with the CEO,Mr. Geofrey Sitati during the 44th ADM at a Diani hotel.

Tabasamu Sacco Chairperson Madam Felister Mutisya

Tabasamu Sacco CEO Mr. Geoffrey Sitati

Tabasamu SACCO began its operations in February 1977, and draws its membership from the teaching sector, county staff, workers in the private sector, youth groups, women groups, employees in government ministries, entrepreneurs, and parastatals in its member recruitment drives.

The chairperson said that the management is formulating a new strategic plan, 2023–2027, that will run the society for the next five years once the current one comes to an end in December.

“It is my hope that going forward, our SACCO shall remain fit for the purpose and have what it takes to play a central role in our members’ overall economic agenda through the provision of affordable, accessible, relevant, and mutually exclusive financial services for all members,” Ms. Mutisya noted.

In 2021, Tabasamu SACCO’s share capital increased to Ksh56.9 million from Ksh43.4 million in 2020.

Chief Guest Madam Levina Lenjo

The supervisory board chairperson, Mr. Abdalla Jamanda, encouraged the delegates to be the society’s goodwill ambassadors, informing the public of the services and products offered by the institution.

He also urged members to channel their salaries through FOSA in the effort to grow the society while also embracing a savings culture to meet emergency needs.

“Due to the pandemic that led to social, political, and economic disruption, we advise our members to maintain some savings in their emergency accounts, build up slowly but consistently to cushion themselves from difficult conditions,” noted Mr. Jamanda.

The Chief Executive Officer, Mr. Geoffrey Sitati, also highlighted notable growth in society, saying the progress was inspiring. However, he encouraged the delegates to help recruit more savers.

The chief guest, Madam Levina Lenjo, said she was pleased by Tabasamu’s success story, especially at a time when most cooperatives in Kwale County were mired in difficulties.

“Because most of our SACCOs in Kwale are tourist bases, many of us have been walking through a rough and difficult road due to Covid-19,” stated Madam Lenjo.

Since cooperatives depend on other economic activities, if a sector like tourism suffers, then SACCOs will definitely also experience difficulties growing and surviving,” said Ms. Lenjo.

A Section of Tabasamu Sacco delegates following proceedings at 44th ADM at a Diani hotel.

CREDIT FACILITIES

Tabasamu Sacco offers a wide range of unique and tailormade BOSA (Back Office Service Activity) products & services to the satisfaction of members as well as Front Office Service Activity (FOSA) products and services.

(1) JIPANGE LOAN

The loan is Repayable within 12 months.4 times shares/ deposits subject to 1/3 rule. Deduction strictly check off. Minimum loan Kshs 30,000, no documentary evidence is required for the loan. Affordable interest rate. The Loan is released instantly.

(2) EMERGENCY LOANS

Deduction strictly check off. Minimum loan Kshs 50,000 and the Maximum loan to be granted is dictated by ability to repay and subject to the1/3 rule and 4 times total deposits. The loan is repayable within 24 months. No documentary evidence is Required for emergency loans. Affordable interest rate. (4). SPECIAL LOANS

Special loans are granted 4 times member’s deposits. Deduction strictly check off. No maximum loan limit, repayable in 48 months and subject to the1/3 rule. The loan is released instantly. Deduction for this loan is strictly check off. Minimum loan Kshs 200,001. For a loan above 300,000, the monthly contribution shall be Kshs3,000. Affordable interest rate

(4). EKEZA LOANS

Ekeza loans are granted 4 times member’s deposits. Deduction strictly check off. No maximum loan limit, repayable in 60 months and subject to the1/3 rule. The loan is released instantly. Deduction for this loan is strictly check off and Minimum loan is Kshs 300,001 with a monthly deposit contribution of Kshs 3,000. Affordable interest rate

(3) DEVELOPMENT LOAN

Development loans are granted 4 times member’s deposits. Deduction strictly check off. No maximum loan limit, repayable in 36 months and subject to the1/3 rule. The loan is released instantly. Deduction for this 14 SACCO TIMES | APRIL – MAY 2022 loan is strictly check off. Minimum loan Kshs 100,001. Affordable interest rate. For a loan above 300,000, the monthly contribution shall be Kshs3,000.

0Shares