The Meru University of Science and Technology Savings and Credit Cooperative Society (MUST SACCO) held its 10th Annual General Meeting (AGM) on 15th April, 2023 in the MPH, Main Campus. The meeting was attended by 317 members of the society, who are drawn from the staff of the university.
The chairman of the society, Mr. Guyo Huka, delivered his report highlighting the achievements and challenges of the SACCO in the past year. He thanked the members for their continued support and cooperation in making the SACCO a success.
He reported that the SACCO had registered an impressive growth in terms of business turnover and membership in the past year. The membership had increased by 3.93% from 305 to 317 members. He urged more staff of the university to join the SACCO and enjoy the benefits of pooling resources together.
He also reported that the members’ deposits had increased by 7.63% from Kshs. 91,512,700 (year 2021) to Kshs. 103,514,018 (year 2022). He attributed this growth to the monthly member deposits, which have remained at a minimum of Kshs. 1,500. He encouraged the members to increase their savings in order to mobilize enough funds for lending and earning.
He further reported that the demand for loans had steadily increased during the year under consideration. The SACCO had experienced a growth of 14% in its loan portfolio. The disbursed loans were as shown in the table below:
|Loan Type||Amount Disbursed (Kshs.)||Percentage (%)|
He noted that the SACCO had maintained a low default rate of less than 5% and had recovered most of the loans on time. He thanked the members for their prompt repayment and urged them to continue with the same spirit.
He also noted that the SACCO had made a net surplus of Kshs. 12,000,000 in the year under consideration. He proposed that this amount be distributed as follows:
- Dividend: Kshs. 6,000,000 (50%)
- Interest Rebate: Kshs. 3,000,000 (25%)
- Reserve Fund: Kshs. 1,800,000 (15%)
- Education Fund: Kshs. 600,000 (5%)
- Social Fund: Kshs. 600,000 (5%)
He said that this distribution was in line with the SACCO’s policy and regulations and would benefit all the members.
He concluded his report by thanking the board of directors, the supervisory committee, the management committee and the staff of the SACCO for their dedication and hard work. He also thanked the university management for their support and goodwill. He expressed his optimism that the SACCO would continue to grow and serve its members better in the future.
The meeting proceeded to discuss other agenda items such as adoption of audited accounts, election of officials.
The SACCO chairman, announced that one third of the management board members were due for retirement and were eligible for re-election. The retiring members were Mr. Franco Mutua from the management committee, Mr. Joblincon Mutuma from the credit committee and Prof. Eustace Mwenda from the supervisory committee. The chairman invited the district cooperative officer to conduct the elections as per the law. Mr. Franco Mutua and Eustace Mwenda retained their positions. Mr Job Lincon Mutuma was replaced by Mr.Patrick Mutuma.
The supervisory committee presented its report for the year ended 31st December 2022. The report highlighted the mandate, scope and findings of the committee in overseeing the operations of the Sacco. The committee commended the management for complying with the statutory requirements, introducing new products, implementing a new system and ensuring good governance. The committee also made some recommendations to improve the recruitment of new members, the sensitization of staff on Sacco products and the financial management of the Sacco.
The members were also given an opportunity to ask questions and give feedback on the Sacco’s performance and services.
The meeting ended with a vote of thanks from the secretary and a word of prayer from a member. The members then enjoyed a refreshment and networking session which included the Vice Chancellor Professor Romanus Odhiambo.
The MUST SACCO is a registered society that was established in 2013 with the aim of providing financial services to its members who are staff of Meru University of Science and Technology. The SACCO offers various products such as savings accounts, loans, insurance and education schemes. The SACCO operates from its office at Main Campus and has a branch at Nchiru Campus.