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Chelugui noted that the launch of the share capital drive by the Sacco was a timely move.
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He lauded its performance which has seen its share capital grow to 6.2 per cent valued at Sh2.3 billion up from 5.3 per cent the previous year.
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Cooperatives Cabinet Secretary Simon Chelugui has urged Harambee Sacco to retrace its footsteps and regain its market leadership.
Chelugui noted that the launch of the share capital drive by the Sacco was a timely move.
He lauded its performance which has seen its share capital grow to 6.2 per cent valued at Sh2.3 billion up from 5.3 per cent the previous year.
The share-capital drive which seeks to raise Sh4 billion is part of the Sacco’s strategic plan to strengthen its financial position and improve its capacity to provide better services to its members.
The drive is also informed by a strategy to move away from external borrowing.
The share-capital drive will involve existing members of the Sacco purchasing additional shares, as well as encouraging new members to join and invest in the institution.
“I note with appreciation the remarkable performance by Harambee Sacco with financial indicators showing an increase of your share capital to over Sh2.3 billion,” the CS said when he unveiled the share capital drive at a Nairobi hotel on Wednesday.
He said the drive will not only enhance and strengthen the Sacco’s financial foundation, but also increase its institutional capacity.
“I'm encouraging co-operative leaders to embrace cutting age emerging technology, innovations and adopt appropriate strategies that will provide solutions to meet members’ needs and offer competitively-driven services. I'm confident that with your support and dedication, Harambee Sacco will continue to drive and serve as a beacon of hope and opportunity for all,” CS Chelugui said.
According to the CS, the share drive will help the Sacco to attain a solid share base that will enable them to stop relying on external borrowing which drain revenue.
“The Sacco has not had a smooth sailing it its chequered history,” the CS said, noting that at one time, Harambee Sacco was the biggest Sacco in Africa in terms of shareholding and membership, which was altered by the advent of the structural adjustment programme.
Sacco chairman, Macdonald Malonza, said institution expects all the 40 million shares being put on offer during this campaign period would be oversubscribed, and that the society would be set on a new financial performance trajectory in line with its 2024 annual theme "the turning point".
"The Society’s board has already proposed a payment of Sh15 per share for the next five years, and this way we hope to jumpstart our membership from the current 79, 000 to between 89, 000 to 100, 000 in the period of the share capital drive,” Chelugui said.
The Sacco posted an assets base of over Sh38.3 billion, with an admirable loan book of Sh29.1 billion; and a total income of over Sh5.69 billion in the current Financial Year.
And as the new financial year beckons, the society is already basking with a net surplus of over Sh919 million and a declaration of interest on deposit of over Sh1.9 billion.