Ports Sacco is charting a path for significant growth in 2025, with projections indicating a 1.75% increase in total income. The Sacco expects to surpass its 2024 performance, with a target of Ksh 1.7 billion in income, up from Ksh 902.5 million last year. Despite economic challenges such as inflation, increased taxes, and low disposable incomes, the Sacco’s leadership remains optimistic about achieving its financial goals and sustaining long-term growth.
For the 2025 operational year, Ports Sacco has allocated a budget of Ksh 1.38 billion. A substantial 58.65% of this budget will cover financial costs, including interest payments on member deposits, marketing, and advertising initiatives. These expenditures are critical for sustaining the Sacco’s core services and member programs. Governance and staff-related expenses will take up 20.85% of the budget, while miscellaneous activities account for 7.3%.
By the end of 2025, Ports Sacco anticipates generating a surplus of over Ksh 308 million, reflecting sound financial management and resilience amid economic turbulence.
2024 Performance
In 2024, the Sacco achieved remarkable growth, generating Ksh 902.5 million in revenue, an improvement from Ksh 700.22 million in 2023. This performance, however, came against the backdrop of national economic difficulties. At a special delegates’ meeting held in October 2024, Chairman Ben Juma acknowledged the impact of economic pressures on the Sacco’s operations.
“These factors have negatively impacted our members and the broader economy, resulting in challenges in meeting financial projections,” Juma remarked, citing inflation, increased taxation, and reduced disposable incomes as key obstacles.
Despite these hurdles, he expressed confidence in meeting year-end goals, noting that the Sacco is actively monitoring economic developments and adopting strategies to mitigate potential risks.
Member Empowerment and Strategic Initiatives for 2025
Ports Sacco has identified member empowerment as a key pillar of its 2025 strategy. As part of its efforts to enhance financial literacy, the Sacco aims to train 2,500 members who have never received financial training. “The training initiative aligns with our commitment to empowering members with knowledge and tools to make informed financial decisions,” Juma emphasized.
The Sacco will also conduct cross-border exposure trips for its delegates, promoting better governance and member engagement.
Additionally, the Sacco continues to build on its rebranding initiative, which began in May 2023, using digital marketing to expand its reach. As part of its recruitment drive, Ports Sacco plans to onboard 3,000 new members by the end of 2024. To support this, the Sacco has hired eight new sales executives on six-month performance-based contracts, with five based in Mombasa and three in Nairobi.
Digital Transformation and Expansion
Ports Sacco is strengthening its digital presence through an aggressive expansion of mobile loan services. By 2025, the Sacco aims to migrate all loan products to mobile platforms. Members can already access services through its user-friendly app, digital loan offerings (Prestige), and a self-service member portal.
The introduction of innovative loan products like Funza demonstrates Ports Sacco’s commitment to diversifying its income streams. The Sacco is also prioritizing ICT upgrades to enhance operational efficiency and service delivery. “Our ongoing infrastructure upgrades have greatly improved service quality and positioned us for sustained growth and technological leadership,” said Juma.
To safeguard these digital advancements, Ports Sacco is reinforcing its ICT risk management practices. This includes integrating with the Credit Reference Bureau (CRB) and the Integrated Population Registration System (IPRS) to streamline member verification and credit scoring processes.
New Office in Nairobi and Enhanced Debt Management
In a bold move to strengthen its presence in the capital, Ports Sacco announced the opening of a new office on the seventh floor of KCS House, Mama Ngina Street, Nairobi. “The new office is strategically positioned and accessible to members within the city,” the Chairman noted, highlighting the importance of this expansion to the Sacco’s growth strategy.
The Sacco’s prudent financial management is further reflected in its low loan default rate of 3.29% in 2024, significantly below the 5% threshold required by the Sacco Societies Regulatory Authority (SASRA). This success is attributed to strict debt recovery measures, including partnerships with two outsourced debt collectors and an in-house debt recovery unit (IDU).
Awards and Recognition
Ports Sacco’s exemplary performance has earned it multiple awards in 2024, cementing its position as a leading financial institution both nationally and regionally. Among its most notable achievements are:
- 3rd Place: Best Managed Sacco (National Level)
- 1st Place: Best in Technology Optimization (Tier 2)
- 1st Place: Best Cooperative Society (Mombasa County)
- 1st Place: Best Microfinance Institution (Mombasa International Show)
Outlook for 2025
As the Sacco gears up for 2025, its leadership remains confident in achieving the projected growth targets, despite economic uncertainties. With strategic investments in financial literacy, digital transformation, and member recruitment, Ports Sacco is well-positioned for long-term sustainability.
Chairman Juma concluded, “With the right strategies in place, we are confident that Ports Sacco will navigate the challenges ahead and achieve significant milestones in 2025.”
