Unaitas to go into full banking as capital grows

PHOTO | FILE UNAITAS Chief Executive Officer Tony Mwangi during a past function. Unaitas' share capital is expected to hit the Sh1 billion mark by the end of this year as it looks to venture into full banking services.  NATION MEDIA GROUP

In Summary

• The sacco’s share capital is Sh752 million compared to Sh696 million in December last year, chairman Joseph Ngaai said during the shareholders’ annual meeting held in Murang’a last week.
• The latest branch was opened in Nairobi at the Holy Family Basilica, and will serve as the administrative headquarters, Mr Ngaai said during the annual general meeting held at Golden Palm Hotel in Murang’a County last week.

By OLIVER MUSEMBI
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Unaitas Savings and Credit Co-operative Society’s share capital is expected to hit the Sh1 billion mark by the end of this year as it looks to venture into full banking services.

Currently, the sacco’s share capital is Sh752 million compared to Sh696 million in December last year, chairman Joseph Ngaai said during the shareholders’ annual meeting held in Murang’a last week.

In the its 2014–2018 Strategic Plan, the society plans to establish itself as a bank after meeting the set minimum requirements by the government.

However, he said they plan to establish a bank with the uniqueness of offering affordable products to depositors and shareholders, and consultations with the Capital Markets Authority are ongoing.

“We intend to make our sacco a strategic investor in a banking, where we can offer our depositors affordable credit through our model bank,” the chairman said.

The society targets low and middle income groups in an effort to help the country meet its Vision 2030 goals, and, so far, has a base of 135,000 shareholders, Mr Ngaai said.

Unaitas, which started operations in 1993 as a tea farmers’ savings and credit society in the larger Murang’a area, later became Muramati Sacco before re-branding three years ago.

The society has 18 branches countrywide and plans to list in the Nairobi Stock Exchange. Currently it is selling shares at Sh10 each for a minimum of 100 shares.

OPENED NEW BRANCH

The latest branch was opened in Nairobi at the Holy Family Basilica, and will serve as the administrative headquarters, Mr Ngaai said during the annual general meeting held at Golden Palm Hotel in Murang’a County last week.

Other newly-opened branches include Nakuru, Gatundu, Cardinal Otunga (Nairobi) and the soon to be established Kawangware branch.

During the AGM, each of the shareholders got a dividend of nine per cent, besides a bonus issue of one share for every 20 shares held from 2009 and earlier, according to the its chief executive, Tony Mwangi.

A financial report read to members indicated an 81 percent growth in savings and deposit last year, rising from Sh2.7 billion in 2012 to Sh3.7 billion.

The sacco intends to grow deposits to above Sh5 billion by 2015 through improved product and service delivery, Mr Mwangi said.