Harambee Deposit-Taking Sacco plans to generate KES 4 billion within the next two years via a share capital campaign, aiming to reduce reliance on external funding sources. As per the Sacco’s financial statements, the Society closed the year with KES 3.05 billion worth of external borrowing compared to KES 3.52 billion in 2022.
Harambee DT Sacco, ranked as the fourth largest financial cooperative society based on asset size, recorded a notable 17.5% rise in net interest income, reaching KES 2.8 billion, with a corresponding 4.2% increase in net surplus to KES 804.6 million.
To reduce reliance on external borrowing, which reached KES 3 billion in 2023, the Sacco is embarking on a strategic initiative to raise KES 4.0 billion through a share capital drive. This move is also expected to bolster liquidity levels within the Harambee Sacco.
Established in 1969 by employees of the Office of the President, Harambee Sacco ranks 4th largest in assets size and has a membership of over 80,000 drawn mainly from Government Ministries, Departments, and Agencies. It paid an unprecedented KES 12 per share as dividend and 8.5% as interest on members’ deposits.
While addressing the Sacco’s AGM, Commissioner for Co-operatives David Obonyo cautioned Sacco to safeguard their core business of lending and not to pay too much dividends and interest on members’ deposits.
Harambee Sacco has established goals to strengthen its institutional capital, expand its membership base, and transition all its processes to digital platforms to provide high-quality financial products and services to its members.
As part of a turnaround strategy initiated over three years ago, the Sacco has been divesting properties from its real estate portfolio, including several maisonettes located in Mombasa, Kisumu, and Siaya Counties, to increase its cash reserves.
