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Stima Sacco posted a pre-tax profit of Sh1.03 billion in 2019 compared to Sh972.25 million in 2018, a growth of 6 percent./COURTESY

Corporate

Stima Sacco pays out Sh2.3bn in dividends

NAIROBI, Kenya, Mar 17 – Stima Sacco shareholders will benefit from a Sh2.3 billion payout in dividends and interests on deposits following improved performance of the society in 2019.

The Sacco’s board of directors has recommended payment of a first and final dividend of 14 percent per share on fully paid up shares as of 31 December 2019, and interest rebates on members’ deposits at the rate of 10.5 percent for the year under review.

“We believe that these are good returns on members’ investments in the Society. As a responsible corporate entity, we are also committed to embracing sustainable practices across our Sacco so as to support our long-term growth,” said Stima Sacco National Chairperson Rebecca Miano.  

Stima Sacco posted a pre-tax profit of Sh1.03 billion in 2019 compared to Sh972.25 million in 2018, a growth of 6 percent.

The Society’s membership increased by 17,545 (15 percent) from 114,071 in 2018 to 131,616 in 2019 as a result of active recruitment drive coupled with a significantly improved brand equity during the year under review.

Turnover was Sh5.63 billion in 2019 up from Sh4.60 billion in 2018, a growth of 22 percent. This was as a result of an aggressive growth on the loan portfolio occasioned by the review of products and services in line with the members’ needs.  The share capital grew from Sh1.50 billion in 2018 to Sh1.76 billion in 2019. This represents a steady strengthening of the capital base and also a cushion to the Sacco in its pursuit of sustainable growth.

Deposits increased by 14 percent in 2019, from Sh24.90 billion in 2018 to Sh28.27 billion which is an indication of continued trust and confidence in the Sacco by members. Lending increased by 15 percent from Sh24.94 billion to Sh28.62 billion.

“Our performance in 2019 clearly demonstrates the underlying health of the business and the potential of our strategy. Indeed, we are making great strides towards our strategic goals, as we continue to realize our mission of empowering our members for life,” Miano added.

The Sacco’s strategy aims at driving sustainable growth through three priorities namely business growth and brand equity, member value creation and capital and financial sustainability.

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The strategy focuses on internet and mobile banking, physical branch footprints, branchless/ agency banking and strategic alliances as the key drivers of growth.

Stima Sacco CEO Chris Useki disclosed that the Sacco was in the process of rolling out more customer-focused products and services aimed at empowering members.

Some of the initiatives include the introduction of agency banking to bring services closer to the people, faster salary processing dubbed Salary 360, and direct debit to address challenges in funds remittances. Other services are low-cost mortgages, sharia-compliant services, and instant ATM card services, whose launch was shelved to this year. 

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