SOLUTION SACCO SOCIETY LTD

CHAIRMAN’S REPORT TO THE AGM ON 1^ST FEBRUARY 2020

Our esteemed members, State department of Co-operative officials, Board of Directors, KNUT Executive Secretaries, Teacher leaders present, Staff present, Ladies and Gentlemen, Good Morning.

Let me take this opportunity to welcome you to our 27^th Annual General Meeting.

I wish to highlight the following key issues.

GROWTH

We have witnessed tremendous growth in active membership from 14,030 as at 31^st December 2018 to 19,078 as at 31^st December 2019 an increase of 25%.

Our total assets also increased from 4.4 billion to 5.2 billion as at 31^st December 2019 an increase of 15%.

Loans and advances to members grew by 17% from 3.4 billon as at 31^st December 2018 to 4 billion as at 31^st December 2019.  Our branch network is currently at 12. The Sacco has been able to double the total assets in the last five years.  As at 31^st December 2013, it was 2.5 billion and 5.2 billion as at December 2019.  This is a big milestone.  Thank you members, Keep up.

In order to sustain this upward trajectory;

• I would like to encourage our members to save more, borrow and pay promptly.
• Invest more in the Sacco by increasing your shareholding.
• Utilize Sacco facilities to transform yourselves socially and economically.

In the year 2019, we had various milestone achievements:

1. By November 2019 we completed and commissioned our Wide Area Network. This has enhanced the connectivity hence reducing over reliance from other service providers.  We are also expecting this to reduce our cost.
2. We launched our Solution App which you can now download from your phone playstore other than same services in the USSD service. You can apply various loans online and pay your bills with it.
3. In 2019, we also managed to upgrade all our aging ATMs and successfully replaced ATM cards with Verve Cards which are more superior to the former.
4. Money transfer services on our USSD and Solution Sacco App will be launched very soon. Once completed, members will be able to transfer money to any bank and receive the same from any bank.
5. We have very profitable savings accounts (Jazilia) a premium deposit with guaranteed returns of up to 12%. I encourage you to build up savings for your future investment projects and as a retirement plan.

MEMBERSHIP TRAINING

Last year we conducted training to our members in all areas of representation.  The turn up was very encouraging.  6,767 members underwent the training.  Very important topics were covered and members appreciated very much.  This year, we intend to intensify our member/school visitation whereby our officers will be able to share one on one on various matters.  Kindly accord them maximum support whenever they visit you.

CHALLENGES

The year 2019 was not without handles:

1. We have witnessed the introduction of very strange tax regimes and levies.  The recent one is turnover tax which is taking effect this January.  These taxes are not only affecting institutions but individuals so I urge you to acquaint yourselves with them.  Whenever there is an increase in taxation, it means reduction of disposable incomes.
2. The ever changing technological advancements with new technologies coming up, we have to do away with the obsolete ones and this comes with a cost.
3. Delays/none remittances from employers in both public entities, national and county governments. This affects our operations adversely.
4. The massive transfers of our members (delocalization of teachers). The affected members are not only destabilized socially but economically.
5. High death rate and retirement of teachers without replacement. The effect of this is not limited to decline in business but high insurance premiums by insurance companies.  The Ksh.200 we contribute towards this can no longer be enough to cater for our insurance needs.

CONCLUSION

In conclusion, this year we are distributing a total of Ksh.320 million in terms of interest on deposits and dividends to the shareholders.  Dear members, please utilize this gain to improve the socio-economic welfare not only to yourselves but also to the future generation. Once more, I encourage you to capitalize the same to improve your earnings in the coming year as we look forward to even paying higher rate in future.

I wish you all a prosperous year 2020.

May God bless you.

Peter Karemanu Igweta

CHAIRMAN