Afya Sacco Posts Profits In Their Performance Ending Year 2015

Afya Sacco society performance for the year 2015 saw the turn over increase from 1.54 billion to 1.84 billion an increase in 19.4 Percent.
Their expenditure in the year 2015 also increased from 9.69 million to 992.1 million an increase in 2.3 percent while members savings stood at Kshs 11.19 billion from Khs 10.9 billion in December 2014.
Speaking at the 36th Annual Delegates Meeting at KICC, , Chairman Mr. Vitalis Lukiri said the management board proposes to pay interest on deposits for the year ended 2015 at the rate of 7.5 percent which is equivalent to Ksh 677.6 million payable at the end of June 2016.
Lukiri said that despite the challenges of the economic environment , the Sacco board has further recommended to pay interest and dividends shares at 10 percent which is Kshs 69.3 million.
“ The management is committed to ensuring that the society generates and pays benefits to members despite the emerging challenges posed by devolution and risking costs of doing business”, he said.
Lukiri added that despite efforts by government to favourably manage the economic environment, the interest on borrowing from financial institutions did not reduce as anticipated but the board considered members requests without extra charges.
The chairman further said remission and recovery of funds by the County Governments has had a huge impact on their liquidity thus affect timely release of members loan applications.
He noted that the management board has focused on transferring the Afya Centre Building Back to Afya Sacco this year as resolved by the 2011 annual delegates conference as this will improve on the societies financials.
He noted that since inception in the year 1971 to December 2015, the society has been able to cumulatively disburse over Kshs 72.2 billion to members as loan with the year 2015 alone disbursing to members Ksh 10.3 billion .
State department of cooperative development, Ministry of Industry, Investment and Trade Principal Secretary Ali Ismail in a statement said deposits taking Saccos in the country are important financial services providers both in the rural and urban areas.
“They provide products and services uniquely delivered, to give them a niche market in a field congested by other better resource endowed financial institutions like banks”, he added
He said to continue fostering development within the Sacco , its important to deliver productions and services based on the feld need of members and informed by research.
“Research will also help you better understand the market conditions, especially the competitive forces that keep threatening your market share”, the PS said.
Ismail further called on the Saccos to investment in ICT saying Saccos of yester year had a challenge of make use of it .
“The world is being redefined by advancement of ICT and Saccos cannot lag behind if they want to survive in a competitive market. Technology is providing more and more solutions as every new day comesa with technology”, he said.
The PS further called upon the Sacco to consider the local communities in their areas of operation and co me up with products and services that also benefit locals especially products that benefit the youth, women and marginalized.
During the meeting the board awarded the highest saver who had a total of over 9 million saved with the sacco as at 31st December 2015.

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