Loans push up Kuscco earnings by 23 per cent
Kenya Union of Savings and Credit Co-operatives (Kuscco) managing director, George Ototo. Photo/FILE
A Saccos umbrella firm has reported a 23 per cent rise in profits, driven by an increase in loans uptake.
Earnings of the Kenya Union of Savings and Credit Co-operatives (Kuscco) reached Sh94 million in 2012 on the back of increased borrowing by local co-operative societies, which went up 49 per cent.
“This is attributed to growth in loan book in the year when most Saccos shunned banks, and sourced for affordable funding from the Union,” Kuscco managing director George Ototo said.
Loans increased to Sh4.7 billion, up from Sh3.2 billion in 2011, while asset base went up 13 per cent to stand at Sh6.1 billion.
Commenting on the “highly competitive financial sector” Saccos operate in at a Kuscco annual delegates meeting, Co-ops PS Seno Nyakenyanya said “it is important for Kuscco to upscale the Central Finance Fund to enable it to cushion the Saccos from high interest rates charged by commercial banks whenever there is a shortage of credit.”
Mr Ototo said Kuscco’s Housing Fund and the Central Finance Fund have grown significantly because of affordable loans compared to mainstream financial institutions.
