Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Finance

Top Stima Sacco member gets Sh6.5m dividend payout

The Sacco’s Board recommended interest rebates on members’ deposit of 10.5 per cent for the 2018 financial meaning the unnamed member has deposits of over Sh65 million.

NAIROBI, Kenya, Mar 25 – The highest individual dividend payout by Stima Sacco has received Sh6.5 million.

The Sacco’s Board recommended interest rebates on members’ deposit of 10.5 per cent for the 2018 financial meaning the unnamed member has deposits of over Sh65 million.

The deposit-taking Sacco announced a total payout of rebates and dividends of Sh2.06 billion in 2018, compared to Sh1.98 billion in 2017.

It recorded a 51 percent growth in profit before tax for the year ending December 31, 2018, which stood at Sh972 million compared to Sh644 million realized in 2017.

The national Vice Chair Rebecca Miano said the Sacco’s operating model has equipped the business with added resilience to achieve the set strategic objectives, as reflected in the commendable performance in the period under review.

Subsequently, the Sacco’s turnover grew from by 0.6 billion during the period under review to 4.6 billion.

Stima Sacco CEO Chris Useki attributed the impressive performance to an aggressive growth on the loan portfolio, lending reforms and improved liquidity.

The lending grew by 8 Per cent from Sh23 billion in 2017 to Sh24.9 billion in 2018 while share capital grew by 25 per cent from Sh1.2 billion in 2017 to Sh1.5 billion in 2018.

“The growth in share capital demonstrates a great commitment by our members to the Sacco, added Miano.

“As a result of our relatively good performance and in line with our retention policy and strategy, we are retaining Sh849 million in 2018 of the net appropriation, up from Sh560 million in 2017, to strengthen our reserves and cushion the business for any potential future shocks,” added Useki.

Advertisement. Scroll to continue reading.

“The lender is focusing on digital banking, with the all-telco M-Pawa Mobile Wallet continuing to play a pivotal role in the growth of non-funded income to the Sacco.”

The Board of Directors also recommended payment of a first and final dividend of 14 per cent per share for the period ended December 2018.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...