Investment In Shares
INVESTMENT IN SHARES AND MONEY MARKET
The Society invests in the Kenyan money market through the Nairobi stock exchange. Currently the society own shares in the following companies, Cooperative Insurance Company of Kenya, Safaricom, NIC bank, KenGen, National Bank of Kenya, Kenya Commercial Bank, HFCK and Co operative bank
The Society is evaluating investing in off shore and fixed income securities as an alternative area of members’ investments subject to availability of funds. In the money market, the society is looking to invest in cash and demand deposits, commercial paper, Government securities e.g. treasury bills and bonds.
Due to the continued increase of the need to have many projects, there has been a continued need for capital injection into the Society and this is witnessed by the continued deduction over the last 8 years. To increase the funds available for investment, the delegates approved re- capitalization of dividends by members for the next three years at the rate of 50% on the dividends declared.
This will assist the Society reduce on the huge outflows experienced each end of the year but more so increase the wealth of the members. Below find a tabulation of the growth in income if the Society had implemented the policy since 2008.
Profit Growth for the period
Year Amount ‘Kshs m’ Dividend Rate ‘%’
2008 15.33 8
2009 11.84 5
2010 26.73 10
2011 24.85 8.7
2012 47.90 12
2013 94.97 20