Amica sacco targets SMEs to grow capital base to Sh10bn - Beaking Kenya News

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Tuesday, 3 December 2019

Amica sacco targets SMEs to grow capital base to Sh10bn

Amica Savings and Credit CEO James Mbui
Amica Saving and Credit Ltd is targeting to attain an asset capital base of Sh10 billion within a period of three years from the current Sh3.5 billion.
The sacco, whose members are mainly farmers, seeks to incorporate small and medium enterprises (SMEs) to grow its capital base.
According to Amica Chief Executive Officer James Mbui, the sacco is working on various products which will be of great benefit to SMEs.
For a long time, Amica has been relying on coffee and tea farmers but, recently, it has opened its doors to incorporate SMEs.
DEPOSITS GROW
Speaking during the commissioning of a refurbished office at Kandara shopping centre in Murang’a County on Saturday, the CEO said despite economic hardships during this period, the institution was able to get deposits of more than Sh500 million.
“Despite reduction of income from tea and coffee to about 50 percent, as a sacco we have witnessed growth of deposits from our esteemed customers,” stated the CEO.
He noted Amica will start providing financing to small scale entrepreneurs to buy property with the aim of growing its asset capital base.
“We are targeting to finance those in the boda boda industry, individuals who want to buy land and motor vehicles among other types of properties at minimal interest rates,” added Mr Mbui.
AVOCADO FARMERS
The sacco, he added, will also bring on board avocado and macadamia farmers after the crops proved to be doing well in the market.
“We started with coffee and tea farmers but now we are bringing in dairy, macadamia and avocado farmers. The sacco will be able to finance the farmers in order to boost their production,” he noted.
Mr Mbui said they are investing heavily in digital platforms so as to ease processes of transacting business.
MOBILE BANKING
“With mobile banking, our customers can access various services through their phones without necessarily visiting our branches,” he added.
Currently the sacco has 17 branches, 15 of them being in Murang’a County.
The management is hoping to open new branches in other counties.
Speaking at the same function Murang’a Woman Representative Sabina Chege lauded the contributions of cooperative societies to the economic growth of the county.
“Cooperative societies are very important for the wholesome growth of the people as well as the economy of the county and country at large if they are well managed,” noted Ms Chege.
She said both levels of governments should address challenges facing farmers, observing that this year, coffee and tea farmers have incurred huge losses due to fluctuation of prices.
“Proper strategies need to be established to cushion farmers from incurring losses occasioned by poor prices of their produce,” she noted.

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