FOPPS SACCO Partners with Co-op Bank for Last Expense Policy, Announces Financial Updates

AMAGORO—The Former Public and Private Sector Staff (FOPPS) SACCO has formed a partnership with the Cooperative Bank of Kenya to provide a last expense policy to its members.

According to Kenya News Agency, National Chairman and founder of FOPPS SACCO, speaking at the SACCO’s Annual General Meeting at the ACK Guest House in Amagoro, the agreement involves a last expense policy cover of Ksh150,000, with an annual premium of Ksh6,600 contributed equally by both parties. The policy covers up to 10 beneficiaries per member. Akwara also revealed that as of the end of 2022, the SACCO had disbursed loans totaling Ksh3.4 billion, noting a gradual increase in loan uptake but slow recovery rates.

“I therefore urge borrowers to consistently service their loans to allow other members the opportunity to borrow,” Akwara said. He proposed a new fee of Ksh200 per loan starting June 2024 to support the annual loan policy.

On the subject of investments, Akwara announced that the SACCO’s management team is currently revising its investment policy to enhance profitability. He reported that the investment savings account held Ksh1.5 million as of December 31, 2023, with contributions growing modestly from 72 in 2002 to 76 in 2023. Additionally, the SACCO’s total share capital increased to Ksh1.07 million from Ksh812,000 over the past year, resulting in a net income after statutory reserves of Ksh24,299.

The meeting also highlighted key achievements for the SACCO, including being granted borrowing power of Ksh870,000 from the Commissioner of Cooperatives and securing an external loan facility of the same amount from Kusco, which is being utilized to provide loans to members. Other accomplishments noted were the acquisition of more spacious office space at the Amagoro ACK Guest House grounds and the recruitment of 90 new members, significantly boosting the SACCO’s financial resources.

Obed Mogaka, Manager of Malaba Cooperative Bank, endorsed the need for diligent loan repayment by SACCO members and lauded the partnership. “Co-op Bank started as a SACCO before transitioning into a bank,” Mogaka commented, affirming the bank’s commitment to supporting FOPPS SACCO’s growth into a leading financial institution.