Kuscco eyes real estate to boost revenue

Kuscco chairman George Magutu at a past function. Photo/Salaton Njau 

By  LYNET IGADWAH

The Kenya Union of Savings and Credit and Co-operative Societies (Kuscco) will this year kick off a housing project in Kitengela after what it termed as improved financial performance.

Construction of the 120 housing units is scheduled to start in a few weeks and last 80 weeks.

Kuscco chairman George Magutu said construction of more houses was in the pipeline with the aim of boosting revenue streams.

“We will engage more of these projects as a union in order to be in a better position than mainstream financial institutions to lend out money to our members at better rates,” he said

Mr Magutu was speaking on Friday in Nairobi during Kuscco’s 27th annual delegates meeting that also marked its 40th anniversary.

Delegates approved a proposal to pay dividends using cheques rather than dividend advice vouchers that have been causing delays in payments.

“The board is pleased once again to propose a dividend rebate of eight per cent for the year 2013,” said Mr Magutu.

Kuscco turnover increased 13.5 per cent to Sh733.3 million in 2013, up from Sh645.3 million in 2012.

Its share capital recorded 17.3 per cent growth to stand at Sh926.1 million in 2013 compared to Sh789.6 million in 2012.

The asset base in 2013 rose to Sh7.2 billion up from Sh6.1 billion in 2012 and Sh5.4 billion in 2011. Members’ deposits grew by 17 per cent to Sh5.3 billion in 2013, up from Sh4.6 billion in 2012.