MURANG’A: A Murang’a-based Sacco, Amica Sacco, has unveiled a strategic plan to boost its investor deposit accounts by increasing interest rates for members who raise their deposits above Sh100,000. This initiative, announced during a special annual delegates meeting, also includes offering a free last expense cover of Sh100,000 for principal members and their spouses who meet the deposit threshold.
According to Kenya News Agency, Dr. James Mbui, the CEO of Amica Sacco, highlighted the organization’s goal to accumulate over Sh1 billion in investor deposit accounts by the end of next year. The decision to enhance interest rates comes in response to a decline in deposit rates, driven by the rising cost of living. “We have opted to increase the interest rate for investor deposit accounts by 10 percent,” stated Dr. Mbui, emphasizing that the move aims to motivate members to invest more, helping the Sacco achieve its revenue target.
Dr. Mbui expressed concerns over government policies that may hinder members’ ab
ility to make deposits or service loans. He pointed out that the Social Health Insurance Fund (SHIF), which replaced NHIF, mandates a 2.75 percent salary deduction, reducing disposable income for salaried members by 5 to 7 percent. He urged the government to utilize SHIF funds effectively to provide universal healthcare, alleviating medical expenses for residents.
Despite these challenges, Amica Sacco reported significant growth in its total assets, which surged by Sh929 million, marking a 92 percent increase in its portfolio over the past year. Dr. Mbui projected further growth, aiming to expand total assets by Sh1.48 billion by 2025, with anticipated expenses of Sh1.15 billion, leading to an expected net profit of approximately Sh350 million.
Dr. Mbui also noted an increase in member savings, which grew by 13 percent to Sh6.1 billion. The value of the Sacco’s shares rose by 6 percent, reaching Sh846.6 million. He attributed the Sacco’s robust financial performance to the adoption of modern technologies li
ke mobile banking, which has enhanced transaction efficiency for members.
