Hardware SACCO AGM Resolutions 2026: Key Decisions from the Annual General Meeting Held in Mombasa

Overview of the 2026 Hardware SACCO Annual General Meeting

Hardware SACCO successfully held its Annual General Meeting (AGM) on 8th March 2026 at the Shree Lohana Community Hall near Sakina Mosque in Mombasa Town, beginning at 8:00 a.m. The AGM brought together members, board representatives, and key stakeholders of the SACCO to review the society progress, approve financial decisions, and shape the direction of the cooperative for the coming years.

The 2026 AGM was particularly important because it addressed several strategic areas such as share capital growth, loan products, member returns, and governance reforms. These resolutions reflect the SACCO commitment to strengthening its financial base while continuing to provide affordable financial services to members.

Key Highlights of the Hardware SACCO 2026 AGM

Approval of Share Capital Increase

One of the most significant resolutions passed during the AGM was the increase in minimum share capital from KES 15,000 to KES 20,000. This decision reflects the SACCO strategic plan to strengthen its financial foundation and support future growth.

To make the transition manageable for members, the AGM approved a gradual approach. Rather than requiring members to immediately deposit the additional amount, KES 1,000 will be deducted annually from interest on deposits or dividends until the KES 20,000 share capital requirement is reached. Once the required amount is achieved, the deductions will automatically stop.

Introduction of the Jijenge Loan Product

Another important highlight of the AGM was the official launch of the Jijenge Loan, a new loan product designed to support members financial growth and development goals.

The Jijenge Loan was approved with the following key features:

• Interest rate 1 percent
• Loan repayment period up to 72 months

This product is expected to benefit members who require long term financing for projects such as business expansion, home improvement, education, or personal development. The relatively low interest rate and extended repayment period make it an accessible financing option compared to many conventional credit facilities.

The introduction of the Jijenge Loan demonstrates Hardware SACCO commitment to providing innovative financial solutions that respond to the needs of its members.

Financial Resolutions Passed During the AGM

Approval of Dividends on Share Capital

Members present at the AGM approved a dividend payout of 10 percent on share capital. Dividends represent a share of the SACCO surplus distributed to members based on their shareholding.

Dividends are one of the key benefits of SACCO membership because they allow members to earn returns on their investments. Unlike traditional bank savings accounts, SACCO dividends are often higher and are determined collectively during the AGM.

For Hardware SACCO members, the approved 10 percent dividend demonstrates the society commitment to sharing financial success with its members while maintaining responsible financial management.

Interest on Members Deposits

In addition to dividends, the AGM approved interest on members deposits at 5 percent. Deposit interest is calculated based on the savings that members hold in the SACCO.

By approving a 5 percent interest rate, Hardware SACCO continues to provide a competitive return for members while maintaining financial sustainability.

Holiday Savings Interest Approval

The AGM also approved 5 percent interest for Holiday Savings accounts. Holiday savings products are designed to help members plan and save for travel, celebrations, or other seasonal expenses.

By providing interest on holiday savings, the SACCO encourages members to adopt disciplined savings habits for future financial needs. This type of targeted savings product is particularly beneficial for members who want to avoid financial pressure during holiday periods.

Governance and Leadership Resolutions

Maximum Age Limit for Board Members

To strengthen governance structures within the SACCO, members approved a maximum age limit of 55 years for individuals vying for positions on the board.

The new policy reflects the SACCO commitment to maintaining a balanced leadership structure that combines experience with fresh perspectives.

Appointment of External Auditors

Members also approved the appointment of Ambale Ogot and Co. LLP as the SACCO external auditors for the year 2026.

By appointing a professional audit firm, Hardware SACCO reinforces its commitment to maintaining accurate financial reporting and protecting members interests.

Strategic Financial Decisions for Growth

Borrowing Powers Approved by Members

Another key resolution passed during the AGM was the approval of borrowing powers up to KES 10,000,000.

Borrowing powers allow the SACCO to access external financing when necessary to support its operations and lending activities. This capacity is particularly important when demand for loans among members increases beyond the available internal funds.

By approving this borrowing limit, members provided the SACCO with the flexibility to expand its financial services while ensuring that borrowing remains within controlled and manageable levels.

Approval of the 2027 Budget

Members unanimously approved the SACCO budget for the financial year 2027.

The budget serves as a financial roadmap that outlines expected revenues, expenditures, and investment priorities for the coming year. By approving the budget, members ensure that the SACCO operates within a structured financial plan aligned with its strategic goals.