The Cabinet Secretary for Cooperatives and MSMEs Development, Wycliffe Oparanya, has called on the cooperative movements within the country to stop competing on who is issuing the biggest dividend and instead focus on investing and growing their portfolio.
Speaking during the 7th Annual Delegates Conference, convened by Kenya’s largest and fast-growing Sacco, the Stima Sacco, Oparanya noted that some players within the sector were declaring higher dividends due to pressure from members without considering the profits and investments for the year.
“Do not fall under the pressure of declaring higher dividends without considering the financial health of your cooperative. Look at what you have made that particular year and declare within your means. Do not compete using dividends as you hurt the business,” he said.
The CS said that Saccos such as Stima Sacco play a major role in uplifting the lives of Kenyans who save and invest through them. He said Saccos are better placed to help the government and the country cut down on the ballooning unemployment rates across the country.
At the same time, the CS called on Saccos and the cooperative movement in general to diversify their investment portfolio. He called on them to consider investing more in Money Market Funds as well as government bonds to give their members more value for their money.
“Do not just depend on the loans you give out to your members. Invest in secure vehicles such as Money Market Funds and government bonds. This will see you getting more returns and hence, your members will get more benefits at the end of each financial year,” he said.
The convening of the 7th Annual Delegates Conference comes even as Stima Sacco marks amazing 50 years since its establishment, a journey that has been a testament to visionary leadership, strategic growth, and unwavering commitment to its members. For over 50 years, Stima Sacco has grown into a financial giant with over 200,000 members helping them save, invest, and access loans.
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