Buoyed up by a forward looking strategic plan, tier one Sacco defies the long term effects of COVID-19 pandemic by registering outstanding results in 2022
True to its tradition, Stima DT Sacco, a leading tier one savings and credit co-operative society in Kenya, with an asset base of over Kshs. 53.8 billion, has continued registering a strong performance. The giant Sacco was started in 1974 by only five employees of the then East Africa Power and Lighting Company (EAPLC). Going by its current status, the five founding members undoubtedly took a major leap of faith. Indeed, this was demonstrated by the financial results that the Sacco released in the 49th Annual General Meeting (AGM), held early in this month. The results covered the fiscal year that ended on December 31st, 2022.
These results were registered against a backdrop of a down-turn in the economy that was occasioned by the long term effects of the COVID-19 pandemic. “Our audited financial performance for the past year has been remarkable, and we have achieved exponential growth in all our key performance indicators, including assets, deposits, loans and profitability,” said Engineer Rosemary Oduor, the acting National Chairperson during the AGM.
Engineer Oduor reported that the Saccco’s consolidated deposits grew by 15% from Kshs. 34.2 billion in 2021, to Kshs. 39.43 billion in 2022. Additionally, the loan book grew by 12% from Kshs. 36.8 billion to Kshs. 41.3 billion. By the same token, the Sacco’s balance sheet grew by 16% from Kshs. 46.48 billion in 2021 to Kshs. 53.8 billion in 2022. Most importantly, the lender’s total revenue grew from Kshs. 6.8 billion to Kshs. 7.4 billion. “This has allowed us to invest in new initiatives that will benefit our members in the long run,” observed Engineer Oduor.
The acting National Chairperson attributed the strong growth to a combination of factors including: launch of new products, expansion into new markets and the ongoing commitment to delivering exceptional customer experience.
Going by these results, the Sacco’s Board of Directors paid a first and final dividend of 15% per share on the fully paid –up shares as at December 31, 2022. Members also received interest rebates on their deposits at the rate of 11% for the financial year under review. The total pay –out for the two items amounted to Kshs. 3.56 billion in 2022, compared to Kshs. 2.99 billion in 2021. “Our Society has a reputation of good management practices, excellent structures of corporate governance and prudent investment decisions that have strengthened us to be able to pay dividends year after year,” said Engineer Oduor.
Engineer Oduor further said that Stima DT Sacco has registered phenomenal growth over the years because of its unwavering commitment to providing innovative and member-centric financial products and services. This is underpinned by the development of audacious five year strategic plans. Currently, the Sacco is being guided by the 2019-2024 strategic plan which is stratified under several pillars and enablers, with a view towards maximizing members’ value. “Our focus has been on key drivers of the strategy such as mobile banking, agency banking and physical branch network as well as diversification of income streams through strategic partnerships and development of alternative business channels such as Shariah banking and insurance,” Engineer Oduor observed.
In the same vein, the Chief Executive Officer, Dr. Gamaliel Hassan, emphasized that as a fast growing Sacco, Stima DT is keen on being visible and having a brand presence countrywide. Consequently, the Sacco has embarked on an expansion drive in order to deliver quality products and services to Kenyans countrywide. Its current branch network is: Parklands (head office), Kimathi Street (Nairobi’s CBD), Kawi Complex (Nairobi’s South C), Mombasa, Kisumu, Eldoret, Nakuru, Olkaria and Embu. “ Within the next month, we will be launching three more branches – Kisii, Meru and Electricity House ( Nairobi’s CBD),” said Dr. Hassan adding that there are times when the need for interpersonal communication far outweighs that of convenience, hence the need for an expansive branch network.
In the current era of digitization, Stima DT Sacco according to Dr. Hassan has continued to invest in technology in order to enhance the efficiency and effectiveness of its operations. In that regard, the Sacco transitioned from an enterprise resource planning (ERP) system in January this year, to a core-banking system that is stable and highly efficient. “ The benefits that will be reaped from the new system include: a high degree of process automation, greater integration flexibility with regard to channels, including web and mobility for purposes of business acquisition and retention, service delivery and interaction with customers and external parties, alignment with global banking best practices and standards, regulatory compliance with bodies such as SASRA, IFRS9, the Anti-Money Laundering Act, the Computer Misuse and Cybercrimes Act as well as overall improved business intelligence, analytics and reporting,” said Dr. Hassan. “The new system offers features such as online banking, mobile banking and card based transactions, which will improve our members’ access to our services, regardless of their location or time of day,” he added. Against this background, the Sacco’s web portal has been replaced with an internet banking solution.
Stima Sacco stands out because of being responsive to its members’ needs. “Our aim is to provide our members with high-quality financial services that meet their needs and to create long term value for them,” said Dr. Hassan. By and large, that commitment contributed to a very high growth in membership – from 154,308 in 2021 to a record 177,260 in 2022. Going by its solid and agile strategic direction, there is little doubt that this number will continue growing in 2023.