Amica Sacco mulls Sh1.2b full-year revenue
By Steve Umidha, February 28, 2022
Amica Sacco is eyeing more than Sh1.2 billion revenue by end of the year following a change in business strategies over the last five years.
The Savings and Credit Cooperative (Sacco) which is based in Muranga says a surge in deposits and loan repayments will boost growth as the firm aims to surpass the Sh978 million reported in December last year.
“We are optimistic for the year based on how we performed last year owing to the growing demand for our products. In 2021 we came close to hitting the one–billion mark in what has been a consistent growth trajectory in the last five years,” expressed the firm’s Chief executive James Mbui said.
Rebranding deal
The firm’s total revenue stood at Sh200 million as of December 2014 before its shareholders adopted a proposal to rebrand its name to Amica Sacco in 2017 from Murata Sacco where close to Sh300 million was spent in the exercise.
“That effort paid off and in 2020 alone when businesses took a hit from the pandemic our business grew by 27 per cent despite re-evaluating our 2020-2022 strategic plan when Covid-9 hit,” noted Mbui.
Further, industry adjustments could see Kenyan Saccos commence an inter-Sacco lending market in a development that will eventually see Saccos drift away from external borrowing as a funding source for their assets, largely due to the expensive loans and stringent conditions by commercial banks.
Available industry figures show that total assets, loans and deposits have improved despite the pandemic concerns, with the industry asset base jumping to Sh622 billion in 2020 compared to $5.1 billion in 2019, says Sacco Societies Regulatory Authority data.