A BOUNTIFUL  YEAR FOR STIMA SACCO  MEMBERS AS THEY EARN KSHS. 4.6 BILLION IN DIVIDENDS AND INTEREST REBATES

Second largest tier one Sacco in Kenya records growth in all key performance indicators in the 2024 financial  year

By George Gichuki

Stima Sacco celebrated its fiftieth anniversary last year in a  memorable  and   great style.  The tier one Sacco, currently   with an asset base  of Kshs. 66.4 billion  and   ranked second nationally by  the Sacco Society Regulatory Authority ( SASRA) had  very  valid reasons to do so.  Over the years,  Stima has out grown  its    humble roots in 1974  to  build   a legacy  that  is largely defined by  resilience , audacity and innovativeness.  “ Fifty years ago, our founders dared to dream,” said Dr. Gamaliel Hassan, CEO, Stima Sacco during an investors’ briefing to share key  insights, updates and opportunities for growth. “ They envisioned a co-operative that would not only provide financial solutions but also transform lives, empower generations and redefine the future of financial inclusion,” he added.  The investors’ briefing came a few days   after the Sacco’s  51^st Annual General Meeting ( AGM),  where it  released its 2024 financial results.

Strong performance

In  2024,  Stima Sacco continued  with its tradition of  registering  growth   in key parameters year on year. To start with, its deposits grew by 8% – from Kshs. 43.13 billion in 2023 to Kshs.46.69 billion in 2024. Secondly, the loan book expanded by 11% – from Kshs. 45.15 billion to Kshs.50.24 billion.  Significantly also, the  membership of the Sacco grew from 200,145 to 220,650, the core capital rose  from Kshs. 10.6 billion to Kshs. 13.4 billion , while the revenue increased from Kshs.8.9 billion to Kshs. 10.3 billion.

 Following the same trend, the lender’s liquidity ratio grew from 90.08% to 94.95 %, while the asset base rose to Kshs. 66.4 billion in comparison to Kshs. 59.1  billion in 2023. “ This strong financial  performance underscores our commitment to sound management, prudent risk practices and delivering value to our members,” said Dr. ( Eng.)  Joseph Siror, the National Chairman of Stima Sacco during the investors’ briefing.  “ We remain dedicated to providing financial solutions for home ownership,  education and business growth, reinforcing our mission of financial empowerment,” he added.

  Against this background,  the Sacco paid  dividends and rebates amounting to Kshs. 4.6 billion; up from Kshs. 4.1 billion in 2023, highlighted CPA Mary Maalu, the National Treasurer  during her presentation. “ 60% of  the total revenue  that  we   generated  in 2024 was retained by our members,” she said.   Members  earned  16% dividend   on  their  fully paid up shares, and 11% interest rebate on ordinary deposits.

Strategic direction

As a   forward looking  organization, Stima Sacco  has embraced a  digital  first  strategic    agenda. “ The financial sector is evolving rapidly due to technological advancement, changing consumer expectations and global shifts,” said Dr. ( Eng.) Siror. “ To remain competitive, Stima Sacco must not only adapt but lead in innovation and service excellence ,” he added.  To that end,  it has embraced technology and innovation,  strengthened its governance and risk management , focused on member centric growth and built strong   strategic  partnerships.

The lender’s 2025-2029 strategic plan is  anchored on four transformational  pillars.  Under the member and business development pillar ( expanding reach and deepening input),  Stima Sacco is enhancing  its financial literacy programmes, expanding value added services and diversifying its income streams. The  other pillars are : operational and service excellence ( the future is digital), financial sustainability ( strengthening its foundation for generations to come) as well as people and culture.

Commitment to ESG

During his presentation at the investors’ briefing, Dr. Hassan  emphasized that  beyond  financial  growth,  Stima Sacco is committed to the   environmental,  social  and  governance  ( ESG)  principles.  To that end, out of the Kshs. 523 million it disbursed to micro, small and medium enterprises ( MSMEs) in 2024, Kshs. 256 million went to young innovators.  Additionally, it has invested Kshs. 74 billion in housing, water and electricity projects in its endeavour to promote affordable housing and green energy.  By  the same token, it is very keen on advancing financial literacy. “ Our purpose is clear – to build wealth responsibly,  to uplift communities and to champion financial inclusion for all,” said Dr. Hassan.

Road ahead

With an emergence of an agile, discerning and tech savvy membership, the next chapter of Stima Sacco’s  fifty years  journey    is bound   to  have many challenges.  Consequently,   the lender   is not resting on its laurels. On the contrary,    It  is    continuously   putting  in place measures to sustain its growth, embrace technology and deepen member engagement. “ As we shape the next phase of  our journey, we reaffirm our commitment to strong governance, accountability and transparency;  ensuring   that Stima Sacco remains a trusted institution,” Dr. ( Eng.) Siror reassured the investors.  “ Our priority remains financial sustainability, enhanced customer experience and industry leadership,” he added.