Government commits to enhance Gross Domestic Product

Mombasa, Saturday, May 13, 2023

KNA by Fatma Said

Cabinet Secretary, Cooperative & Micro, Small and Medium Enterprises, Simon Chelugui has announced that the sector is working to provide more opportunities for income generation and employment, particularly for vulnerable and marginalized individuals in the society.

Through Gross Domestic Product, the government economic transformation plan focuses on identifying, establishing and strengthening various value chains from production to manufacturing for exports.

Gross Domestic Product is the monetary value of all finished goods and services made within a country during a specific period.

“My office has already identified officers to champion various value chains with instructions to work closely with County Governments and capacity build Kenya on the promotion of various value chains,” Chelugui said.

Speaking during the relaunch of Ports Sacco held at Serena Hotel, Shanzu, Chelugui applauded the SACCO for expanding their geographical reach to tap into a more extensive customer base, thus achieving further growth.

Ports Sacco, formerly known as Mombasa Port Sacco, announced its relaunch as part of its strategic growth plan to empower its members, drive financial inclusion and expand its national footprint.

The Mombasa-based Sacco, initially dedicated to employees of the then Kenya Cargo Handling Services Limited – has opened its doors to diverse membership as it seeks to grow its membership from 11,741 in 2022 to 16,800 in 2023, mainly in non-Port towns.

“After 57 years of the Sacco’s existence and its rapid growth, this is the opportune time for Mombasa Port Sacco to reposition its brand and I note with great satisfaction that Mombasa Port Sacco is shifting focus from the county to the national level,” the CS said.

Chelugui said that the Government remains committed to working with actors in the cooperative sector to explore ways of growing the size and membership of cooperatives and fostering innovation to enhance productivity as well as nurture sustainability.

In addition, Chelugui took cognizance that the SACCO offers a diverse product portfolio that is responsive to the ever-evolving needs of members. 

Ports Sacco Chief Executive Officer Dedan Ondieki said the relaunch was part of Sacco's commitment to driving financial inclusion across the 47 counties.

"Our expansion beyond Mombasa is part of our strategy to be diverse and inclusive as we renew our focus to empower current and new members to take control of their financial future. In addition, our vision is to reach those unable to access financial services from conventional institutions," said Mr. Ondieki.

Despite the challenges facing SACCOs in Kenya, Ports Sacco has achieved remarkable growth, with total assets topping Sh. 8.4 billion last year against member deposits of Sh. 4.58 billion.

In addition, SACCO declared dividends on share capital at a rate of 20 percent amounting to Sh. 75,931,536 and interest on deposits at a rate of 12.5 percent or Sh. 496,001,372, making a gross total of Sh. 571, 932,908.

Founded in 1966, Ports Sacco seeks to empower members by offering financial solutions, promoting thrift, and fostering a culture of saving.

In 2021, Ports SACCO launched its Sh. 45 million digital platform to safeguard its members' funds considering cyber security developments.

During the event, Ports SACCO unveiled its mortgage product, 'Jiendeleze Loan,' tailored to the unique needs of the market and members for low-cost homes.

"Our investment in research and product development is a testimony to our dedication to providing affordable housing solutions to our members. In addition, our commitment to agility also reflects its innovative culture, which is essential for driving growth and staying competitive in a crowded market," said Ondieki.

According to the latest data, Kenya is ranked number seven worldwide and the best in Africa regarding Sacco development. 

The cooperative sub-sector in Kenya controls over Sh. 1.5 trillion in assets and Sh. 1 trillion in deposits, with a loan book of Sh.980 million. 30 percent of the national savings in Kenya come from SACCOs. However, despite the successes, the Sacco sub-sector faces challenges such as a lack of access to affordable credit, limited financial education, and regulatory clarity.

In Conclusion, Chelugui reiterated the cooperative sector’s importance in actualizing the national economic transformation plan.

“I assure you of my Ministry’s commitment to working with all cooperative players in realizing the transformation of the lives of all Kenyans” he said.

Courtesy; K.N.A