The Lower Eastern Times Opening The Third Eye
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Harambee Sacco has announced an increase in the interest rate on deposits to a record high of 9% for 2024, compared to 8.5% paid out in 2023, according to national chairman Macloud Malonza.
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Additionally, the Sacco is proposing a new record interest of 15% on share capital, up from 12% in 2023.
Malonza also shared that the Sacco plans to offer members an additional 3% rebate on any dividends capitalized, and 2% on any interest from deposits reinvested into their BOSA accounts. He emphasized that this upward trend is expected to continue.
These remarks were made during the 54th Annual Delegates Meeting of Harambee Sacco. CEO George Ochiri reported that the Sacco had achieved a net surplus of Sh1.46 billion in 2024, up from Sh1.2 billion in 2023. Total revenues increased from Sh5.7 billion in 2023 to Sh7.01 billion.
Ochiri clarified that the net surplus represents the excess payments members have made for loans and goods or services purchased from the cooperative, not profit. He also shared that total assets grew from Sh36.7 billion in 2023 to Sh38.6 billion by the end of 2024, and the loan book reached a record high of Sh32.0 billion, up from Sh29.1 billion in 2023.
The Sacco’s core capital also grew from Sh5.1 billion in 2023 to Sh6.3 billion, with share capital increasing to Sh2.5 billion in 2024 from Sh2.3 billion the previous year.
Despite facing challenges in 2024, such as plans to open five new satellite offices and renovate key facilities that were not realized, Ochiri expressed optimism. These projects have now been rescheduled for future completion. The Sacco’s strategic focus for 2025 is “exceeding expectations,” aiming to push beyond limits in all areas of business.
Malonza acknowledged the difficult global and local economic conditions in 2024, including disruptive political protests and increased taxes, but highlighted that Harambee Sacco remained flexible and resilient. He concluded by stating that the Sacco is now free from previous challenges and is fully compliant with all statutory requirements.
