This archive report was first published on 19 July 2021.
AMREF Sacco has taken significant steps to adapt to the Covid-19 pandemic and regulatory changes in the industry. As of January 1, 2021, the Sacco Societies (Non-Deposit Taking Business) Regulations came into effect, requiring Non-Deposit Taking Saccos with over Sh100 million in members' deposits to submit their applications for licensing by June 30, 2021.
AMREF Sacco, led by Chairman George Bebora, has demonstrated its commitment to compliance by ratifying a resolution to comply with the new rules during a virtual Annual General Meeting (AGM) held in Nairobi. The Sacco has also increased its members' loan limits to Sh150,000 from Sh70,000 through Instant Pesa and the M-Cash, and allowed members who had lost earnings to restructure loans.
Additionally, the Sacco has introduced editable loan and membership application forms, allowing members to submit electronic applications and ease engagement. They have also hired a loans officer to support them in close monitoring of loans and debt recovery. The number of employees has increased from two to 15 at their headquarters along Langata Road in Nairobi.
AMREF Sacco has also made significant progress in terms of its assets and membership deposits. The Sacco's assets hit Sh2.2 billion, enabling it to achieve the milestone of a tier two status, during the 2020 financial year. The Sacco's members' deposits increased from Sh1.6 billion in 2019 to Sh1.8 billion during the same period.
Revenue grew by 15% from Sh188 million in 2019 to Sh216 million last year, despite the economic challenges caused by the Covid-19 pandemic. Member returns amounted to Sh149.9 million.
Langata Sub-County Co-operative Officer Julianna Adote commended the Sacco for its rapid growth and adaptation to coronavirus challenges through continuous member education forums held virtually last year.
