Unaitas Sacco has recorded a 27 per cent rise after-tax profit in the financial year ended December 2017.
The sacco reported Sh338 million net profit up from Sh267 million in 2016.
Unaitas attributed the rise in earnings to increased non-interest funded income.
“We ventured into new markets, that is, insurance, agency banking and mobile banking among others, that helped cover the sacco’s costs of operations sufficiently.
“Presently, we rely 65 per cent on interest income up from 2016’s 20 per cent on other ventures. Our good customer relations have also helped boost sacco deposits by 10 per cent signalling increased customer confidence,” said Unaitas CEO Tony Mwangi on Thursday at the sacco’s annual general meeting (AGM) in Murang’a.
The rise in profit will see members earn an increased dividend rate of nine per cent up from seven per cent in 2016.
The sacco’s more 250,000 members will receive Sh273 million in dividend up from Sh173 million in 2016.
The dividends will be made available in two weeks.
“We are doing a total change of our systems over Easter by rolling out a superior core banking system as well as an ultra-modern data centre facility supporting various systems. Normal operations will resume on Tuesday.
“The transition coincided with the dividend payouts. That is why we are requesting for two weeks from today to deal with all the transfer of data, handling teething problems that occur with new systems ahead of the dividends payout,” Mr Mwangi told members.
Unaitas chairman Joseph Kabugu said the sacco is looking into opening three more branches in a bid to increase its visibility and national presence.
Chief guest at the AGM James Murigu, executive director at Metropol, commended Unaitas for being the first sacco in Kenya to be rated by Global Credit Ratings Company.
“The ratings help them improve on their management setups and enhance its corporate look.
“In addition to that it’s advised on ways to finance long-term projects that offer it more capital to support the members,” said Mr Murigu.