The Kitui Teachers' Savings and Credit Cooperative Society has declared payment of dividends to members at the rate of 12 per cent for the year ended December 2012.
Addressing the Sacco's Annual General Meeting at the weekend, the society's chairman Anthony Mbiti lauded the rate as a commendable all-time high. He attributed it to growth in deposits, shares and material assets.
He said at the end of the year in review, members' shares stood at Sh. 78,959,432, up from Sh. 24,339,645 in the previous year. The total deposits stood at Sh.1.09 billion indicating an increase from Sh.1.02 billion in 2011.
Mbiti pointed out that the highest saver at the end of 2012 had saved a total of Sh. 1,396,500 as deposits. He encouraged members to cultivate an improved saving culture. He lamented most members had a half-hearted approached to saving and often withdrew their contributions to fund other activities.
The society registered growth of its gross revenue by 24 per cent, he told members. He said increased operating expenses saw the net surplus for the year 2012 standing at Sh. 17.3 million compared to Sh.18.5 the previous year,.
The Chairman said the loan portfolio grew to a historic high of Sh. 1.3 billion despite challenges posed by commercial banks. He however regretted that society's recent proposal to partner with Cooperative Bank hit a snag due to the bank's high interest rates.
At the meeting the members approved a supplementary budget of Sh. 4.3 million to facilitate the acquisition of a service van to ease the society's transportation needs and also enable the connectivity of the Mutito branch to the Sacco's Wide Area Network.
Mbiti also expressed concern over the default rate by members whom he said used wrong information to apply for loans and thus ensure that they would not be pursued using the details filled on the application forms.
The Chairman noted that the Sacco had attained a milestone by completing the construction of the Sacco's Kyuso branch office block. He added that a collection and advisory desk at Kabati. He said the society has also commenced the construction of theMutito branch office block.