Companies

Tai Sacco announces share sale to boost expansion

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Carilus Ademba, the Sacco Societies Regulatory Authority (Sasra) chief executive officer. Photo/DIANA NGILA

Tai Sacco Society has become the latest to announce a capital raising initiative for its members for funds that will be used to help comply with new minimum capital requirements introduced by the Sacco regulator while funding infrastructure projects and other expansion plans.

The Githunguri-based Sacco joins others such as Metropolitan Teachers Sacco, Stima Sacco and Unaitas - formerly Muramati Sacco - which have been selling shares to existing members in similar share promotions.

READ: Saccos step up share sale to boost expansion

The Sacco which has operations in Githunguri, Gatundu, Kamwangi, Kagwe, Kigumo and Ruiru has been running advertisements on its share promotion although it has not disclosed how much it is targeting to raise from its members.

The share sale that began mid-September ends mid-December this year.

“The promotion is about rewarding our existing members. All you need is to deposit cash to increase your shares…you will increase your shares which in turn will increase the amount of dividend and interest you receive every year,” says a notice on the Sacco’s website.

Carilus Ademba, the Sacco Societies Regulatory Authority (Sasra) chief executive officer told the Business Daily on Friday that Saccos need to raise their capital and that they are well within the law so long as they are raising it from their members.

“Saccos need to make capital expenditures, invest in technology among others and they cannot do this with member funds so the only way is to raise capital. They are doing this to comply with regulations, finance their expansion and make capital investments,” said Mr Ademba.

Metropolitan Teachers Sacco aims to raise Sh1 billion through the sale of 10 million shares to members, each at Sh1,000.

The share sale, which began at the start of August running through the end of this month will see each member buy a minimum of 250 shares for a total of Sh25,000.

Metropolitan’s share sale to members only, started a few weeks after Unaitas made its disclosure document public after the approval of the Capital Markets Authority.

ALSO READ: Unaitas targets 100,000 new members in recruitment campaign

According to the latest supervision report by Sasra, Tai Sacco held deposits worth Sh428.79 million as at the end of December last year and had made loans worth Sh353.08 million.