--------------2014 CHAIR REPORT--------------
KWA SACCO 19th AGM HELD on 25th April 2015
Good afternoon all, On behalf of the KWA Sacco board of management, May I take this opportunity to welcome you all in this 19th AGM for our Sacco. It is with my great honor and pleasure to thanks you all for for availing yourself to this particular meeting at this time. Team, we have come to the end of our last year 2014,and I am pleased to presents our Sacco financials and updates for 2014, kindly allow me to record our profound appreciation to all of you our Hon. members for the support that you have given us during this throughout years we have been with you. I am delighted to present and release to you our annual audited reports and financials for the year ended 31st December 2014 which will be read by our auditors and released to you through our treasurer.
The year 2014 started with a lot of challenges of cash flow and we thank our almighty God for keeping us safe and maneuvering these challenges. Thanks to all our members for sharing the business acumens and taking most of your time with us in order to grow our Sacco together.
Sacco Performance for 2014
Our Sacco has maintained its growth trend during the year 2014, Growth in dividends and interest to member’s deposits; however we experienced decline in our loan book and members deposits which was caused by recoups done on loans defaulted. Default has been an issue over the years because of the huge exits that have been taking place since 2012 from K-Rep fraternity membership.
To protect the members in future the BOD in consultation with the legal advisors resolved to have securities in form of a simple deposit for loans borrowed with guarantors that are insufficient (this is in practice). We have been experiencing decline in our inflows and an increase in Expenditure especially in financial and operation expenses which has reduced our Surplus budget slightly caused by office relocation hence now we are independent and not relying on some consumables and utilities from the Bank. 2014 ytd we have seen the light of membership increasing as at the close of and beginning of this year. All the same we have managed a payback for our members inform of dividends on shares and interest on deposits at the rate of 8% and 8.3% respectively. All in all, we cannot forget to thanks our good Lord who has seen us through and managed the issue of cash flow which had been our challenge for the last 5 years. I want to thank our board of management for coming up with various products to boast our deposits and saving. I also need to say thanks again to our members for accepting our product and improving on their savings.
The Sacco board of management is always determined to serve the Sacco with a lot of diligence and Transparency (Honesty, Accountability and Transparency-Management) under all circumstances for our Sacco operations to be on a going concern to the near future.
It’s my sincere prayer that our Sacco will be able to overcome any difficulties in the near future since the management came up with diversification of various products on how to save which has really boasted our liquidity position.
Hon. Members, the management has made an immense contribution at our individual capacities in improving the entire Sacco at our own levels in order to demonstrate that diversity is strength and together we can,
On general performances, The Sacco registered an increase in distributable income of 5% within the year 2014. Since the last AGM our Sacco has recorded decline of 16% in Total asset, loan book of 18% and increase of 127% share capital this is in line of meeting SASRA requirement of operating a FOSA. Our net surplus to members’ stands at 8.7 Million which is actually higher than last year where we managed 8m.This has a growth of 5% due to members and management effort. Kudus to all member and enjoy your leap.