Trans National Times (TNT) SACCO continued to record steady growth over the past two years, the Society’s financial records for the year ended 2018 shows. This is depicted by the increased total assets that rose from Sh1.3 billion in 2017 to Sh1.5 billion in 2018.
TNT SACCO CHAIRMAN’S SPEECH
I have served the SACCO as a member and a board member for a very long time and now is my time to exit leaving behind a very strong institution. I trust the team am leaving behind led by the able Chairman and my friend Mr. Omari that the SACCO will continue to grow. I joined the SACCO as a young man and I have achieved my dreams through the SACCO loans. All my children have gone to school through SACCO loans and when I wanted to marry my beautiful wife I borrowed money to pay dowry. I thank God for this far and me being a church elder am now going to do Gods work and help in development of the church and the community. Its my prayer that all SACCO leaders to work and serve members with honest. Long Live TNT SACCO, Long live the SACCO movement in Kenya.”
Trans National Times (TNT) SACCO continued to record steady growth over the past two years, the Society’s financial records for the year ended 2018 shows. This is depicted by the increased total assets that rose from Sh1.3 billion in 2017 to Sh1.5 billion in 2018. According to the SACCO Chairman Robert Omari, the progressive growth has been buoyed by aggressive marketing, membership education and recruitment as well as funds mobilization. “We are pride ourselves for the impressive growth achieved in 2018. I strongly have confidence in the Society’s potential to continually post sustainable revenue growth results,” Omari said. This, Omari said, will guarantee members’ financial stability and stress the imperative role played by Co-operatives in the development of the lives of millions of people who are directly or indirectly involved in the Co-operative movement. It will also contribute to the growth of the National Gross Domestic Product (GDP). “As at the close of December 2018, the Society was serviced by a membership of 9,681 members up from 9,173 members a similar period in 2017,” he said.
This is unlike 43 years back when the Society was founded with a paltry 200 members recruited from the then Trans Nzoia District. Currently, the Society derives its vast membership from members in the teaching profession primarily from Trans-Nzoia County as well as from other bordering Counties. The membership growth corresponded to the amount of deposits recorded during the year under review that increased by 22 percent from Sh736 million in 2017 to a total of Sh899 million a similar period in 2018. According to the Chairman, the growth in members’ deposits experienced challenges resulting from high rate of exits caused by retirement, natural attrition and voluntary cessation. Loans advanced to members grew by 22 percent up to Sh808 million in 2018 from Sh665 million in 2017. Omari urged members to avoid defaulting on loans advanced to them and instead be patriotic to their Society by honoring their loan repayment pledges. On the other hand, income generated during the year rose from Sh11 million in 2017 to an amount of Sh42 million in 2018. “During the current financial year, we are determined to invest prudently and also strictly adhere to the drawn budgetary provisions to avoid over-expenditure,” Omari said. This is even as the SACCO spent 83 per cent of its income generated during the year 2018. Income generated was Sh263 million whereas expenditure stood at Sh219 million.
The DT-SACCO met all but one supervision requirements by the SACCO Regulator (SASRA) pertaining to Front Office Services Activity (FOSA). The institutional capital was 0.4 per cent short from SASRA required institutional capital of not less than eight per cent of total assets at all times. “Of the 166 DT-SACCOs approved by SASRA to undertake FOSA business without restrictions for a period of one year, TNT SACCO appears in the list,” said the Chairman. The license expires on 31st December 2018, but the regulator mandates DT-SACCOs wishing to continue operating FOSAs to renew it annually.
In their previous meeting in 2017, the Society had resolved to dispose dormant shares of the Society’s housing wing, Co-op Housing in order to boost liquidity. This is in a bid to stay compliant with SASRA’s regulation that vests the formulation, regulation, and reviewing liquidity policies on the SACCOs’ board of directors. During this year’s 30th Annual Delegates Meeting (ADM) held in April at the Kenya Ministry Training Institute (KMTI) in Kitale, the Chairman proposed to delegates to approve the Society’s E-loan service that will ease loan access by members through their mobile phones. “I propose to you delegates to also approve the payment of interest of members’ deposits quarterly (on pro rata basis) unlike the current payment arrangement done annually,” he said. Among items tabled for delegates’ approval includes construction of an administration block to house credit, boardroom, and CEO’s office, amendment of the by-laws and increase in share capital from the current Sh15,000 to Sh20,000 per member.
While giving his speech, the chief guest, Jamhuri Ambwaya from the Trans-Nzoia County Government mentioned that the Society had deepened its financial services. “The good performance shows that the SACCO has potential to do much better leveraging on the current status of the Kenyan Co-operative movement that stands as strongest in Africa,” Ambwaya told delegates. He urged the Society to invest in Information Communication Technology (ICT) but beware of the risks associated with cyber security that has been rampant recently. During the ADM, also, the SACCO officially launched its name, ‘TransNational Times SACCO’ and also flagged off a SACCO van that had been in the pipeline for quite some years.