News & Events

CHAIRMAN'S REPORT FOR THE 39TH ANNUAL GENERAL MEETING
HELD AT MURANG’A SPORTS CLUB ON 19TH MARCH 2016

Introduction
I take this opportunity to welcome you all to this year’s 39thAnnual General Meeting. It gives me great pleasure being with you on this special occasion. The truth that many of you have travelled far and wide is a clear testimony of the importance of the Sacco. Thank you for coming.

Distinguished guests, ladies and gentlemen, the Sacco was established to promote the welfare and economic interests of its members in accordance with the co-operative principles. The Sacco has withstood the challenges and endeavoured with much success to achieve its mission.

Overview
This year’s performance demonstrates the benefits of focused strategy, robust business model and prudent operating disciplines adopted by the management. Through our outreach program by moving Sacco products closer to members, plans are at an advanced stage to have our own agencies. This will be done through introduction of Mentor Sacco POS. The POS will boost Sacco income and further negate the need to have extensive branch network, which are expensive to start and operate. In this regard, the Board is glad to recommend payment of dividend pay-out of Ordinary shares 11.7%, FOSA shares 11.8% Mazao 13.7%.

AGENDA
SUMMARY POINTS

  1. Sacco Performance
    • Mentor is the largest as well the best performing urban Sacco. In addition, the Sacco is among the few licensed Sacco’s to conduct deposit-taking business in the year 2016.
    • During the year under review, mobilization and lending of funds was as vibrant as ever. Mentor Sacco recorded an increase in revenue of 14.6 % from Kshs. 486 million in year 2014 to Kshs 557 million, while the total assets grew by 19% from 3.29 billion to 3.93 billion. Also deposits grew by 15% from Kshs 1.9 billion in the year 2014 to 2.2 billion
  2. Membership and Sacco Strategic Positioning
    • Our membership grew from 9167 in the year 2014 to 12386 in 2015 representing a 35.1% growth. This is a clear indication that though opportunities for Mentor to grow have been numerous, they have not been fully exploited.
    • In cognizance of this fact, the Sacco has been marketing itself aggressively through billboards, TV, social media and radio stations. I therefore beseech all members to support the board in their effort to increase membership. Let us all be resourceful partners, for such partnership shall enable Mentor to marshal the vast membership and savings existing within the country and beyond
  3. Effective Service through Technology
    • Fellow co-operators, it is our aim to increase efficiency in service delivery and to provide more value to our members. For this reason, the Sacco installed the Mentor cash application, which members can conveniently deposit, withdraw, transfer and buy airtime, pay utility bills using pay bill, paying for goods using till numbers direct from their Sacco accounts.
    • The Sacco is also re-designing its website to enable members to access their account statements and compute their loan eligibility on-line without visiting the office.
    • Further, the Sacco has developed a mobile advance loan, which is accessible through Mentor Cash. The Board is also proposing to roll out the product today.
  4. Effects of Teachers Strike to the Sacco
    • In the year 2015, mentor Sacco faced a number of challenges and setbacks. In the period July to November 2015, there was the problem of delayed or no remittance at all and confusion over the fate of teachers’ jobs as well as the problem of stoppage of medical allowances.
    • These together with consequences of teachers strike made Saccos business to be affected negatively.
    • For instance, there were delays in the months of July, August, and November2015 there were no check-off and salary remittances in the month of September and October 2015.Due to delay in monthly deductions we lost business in a big way.
  5. Members’ loyalty and patronage
    • In our journey towards creating a prosperous and dignified life for our members we faced a number of challenges and setbacks.
    • In dealing with the challenges that looked insurmountable, we grew in strength, resilience and capability.
    • It is by members’ loyal patronage bolstered by management strategies and efficient methodologies adopted to solve problems that helped the Sacco to endure the extremely difficult period, survive the storm and report a positive performance.

CONCLUSION
Finally the Chairman, on behalf of the Board of Directors once again thanked all members present during the AGM for their support, understanding, enthusiasm, confidence, hard work as well as their contribution towards the attainment of remarkable growth and performance of the Sacco. In exception, the Board recognized the members, without whom the Sacco would not have achieved such commendable performance.

The Board expressed its heartfelt appreciation to Sacco partners and friends in the Cooperative movement, that is, the Co-Operative Bank, Cooperative Insurance Company of Kenya, CAK, KUSCCO, our External Auditors, Murang’a County government and several others who may not be here this day. Thank you very much.

Long live Mentor.
Thank you and God bless you All.
Simon Mukunu
Chairman