Capital Markets

Harambee Sacco records 187pc rise in net surplus to Sh350m


Harambee Sacco CEO George Ochiri during the interview at his office in Nairobi on February 4. PHOTO | LUCY WANJIRU | NMG

Harambee Sacco has recorded a 187 percent rise in net surplus to Sh350 million on increased interest from members’ deposit in the year ended December 2021.

Interest from members' deposits rose from Sh1.1 billion to Sh1.44 billion. During the review period, deposits and savings grew by 5 percent to Sh22.54 billion.

The society, which largely serves the disciplined forces, has lost more than 17,000 members that saw it pay Sh1.42 billion to those who withdrew in 2021.

The Sacco's operation costs increased Sh274.49 million to Sh2.166 billion in 2021 due to higher financial expenses and personnel expenses.

Financial expenses including bank loans, bank overdrafts, and leasing fees rose from Sh874.94 million to Sh1.106 billion.

Interest on bank loans grew by 40 percent from to Sh401 million while salaries paid fell by Sh3.7 million from Sh167.5 million.

The society will pay eight percent dividend to members, a two percent increase from 2020.