NAIROBI, Kenya, Mar 14 – Stima Sacco has maintained its operations remain unaffected by fraud allegations at sister company Stima Investments Co-operative Society.
The Deposit-taking Sacco quoted South African based rating agency GCR global that issued a BB+ rating signifying medium credit quality.
The rating agency noted that the direct financial exposure to Stima investments includes a well secured represents less than 1 percent loan equivalent to 33.1 million shillings and a 0.8 percent equity holding in Stima Investments.
Stima Sacco owns less than 2 percent of Stima Investments but the two entities operate independently of one another with no shared services or staffing.
GCR, however, notes that Stima Sacco’s image has been dragged in Stima Investment’s court case that has seen its Board disbanded as part of Sh500 million land probe.
“Due to the fact that the two entities are still associated through shared branding, Stima Sacco has suffered some reputational damage, which may dampen public perception and franchise over the longer term. However, positively there has to date been limited short term impact on Stima Sacco’s existing customer numbers and liquidity,” said GCR.