FOPPS Sacco Enters Into Contract With Co-Op Bank On Last Expense Policy Cover

Former Public and Private Sector Staff have entered into a contract with Cooperative Bank of Kenya as the last expense provider for the SACCO members.

In a speech during the Fopps SACCO Annual General Meeting at ACK Guest House in Amagoro, National Chairman and founder Ben Akwara said the last expense policy cover of Ksh150,000, which they entered into contract with Cooperative Bank invites an annual premium of Ksh6,600 from both parties remittable in full and covers up to 10 beneficiaries.

However, Akwara disclosed that a total of 3.4 billion had been disbursed to members as loans as at Sh2.9m in 2022, noting that although loan uptake had gradually increased, over time, recovery has been rather sluggish.

‘I therefore urge borrowers to consistently service their loans in order to allow other members to borrow. I propose that each loanee be levied Sh200 per loan starting June 2024 for us to carter for the annual loan policy.

On investment savings, the management team is in the process of reviewing the inve
stment policy and introducing new changes at this trading arm of SACCO more profitable in future, adding that as at 31st December, 2023, the investment saving account treasured at Ksh.1.5m. Contributions to this account had grown from 72 in 2002 to 76 in 2023.

He added: ‘ Our total share capital as at 31st December 2023 had grown to Ksh1.07m, up from Ksh812,000, while the SACCO realized a net income of 30,374 less 20% statutory reserves of Ksh6073, leaving the SACCO with Sh24,299.

Key achievements the SACCO realized being granted a borrowing power of Ksh870,000 from Commissioner of Cooperatives, access an external loan facility of Ksh870,000 from Kusco, which is being used to loan to members.

Other achievements include sourcing for spacious office at the Amagoro ACK Guest House grounds, recruitment of 90 SACCO members, and who have added a significant contribution to SACCO capitation.

Malaba Cooperative Bank Manager Obed Mogaka concurred with Akwara that there is need by members to service their loans to
pay the loans or members’ funds.

‘Coop Bank started as SACCO before it transitioned to a bank,’ he said, noting that Co-op Bank is a bank of saccos. We have what it takes to transform FOPPS to be a giant,’ he said.

Source: Kenya News Agency