Kenya Police Sacco nearly doubled its full-year net profit in 2016 driven by increased lending and non-interest earnings.
The deposit-taking credit union reported Sh793.03 million an after-tax profit compared to Sh436.8 million in the period to December 2015.
Kenya Police Sacco, ranked fourth largest in Kenya by assets, saw its net interest income grow 44 per cent to Sh1.38 billion, while fees and commissions increased by a fifth to Sh209 million.
The sacco’s loan book grew by about a fifth or 2.4 billion last year to stand at Sh16.4 billion, attributed to increased lending to members.
Sacco chief executive Solomon Atsiaya attributed the performance to growing uptake of loans and says credit unions are a good fit for SMEs and borrowers who are now deemed risky and hence find it hard to access credit in light of interest rate caps.
Its membership stands at 52,026 mostly comprising police and intelligence officers.
Despite the growth in profit, Kenya Police Sacco maintained the dividend rate to be paid out on members’ shares at 17 per cent, same as in 2015, but interest on members’ deposits dropped to 10.5 per cent.
Kenya’s top three saccos in terms of assets are Mwalimu National Sacco, Harambee Sacco, and Stima Sacco, according to data from the Sacco Societies Regulatory Authority.
The police sacco marshalled additional deposits worth Sh1.6 billion last year to have members’ deposits stand at Sh12.4 billion.