Eng. Peter Njenga, National Vice Chairman, Stima DT Sacco addressing guests at the investors' briefing at Movenpick Hotel.

Tier one Sacco registers growth in all key parameters during the 2023 financial year

By George Gichuki

Undoubtedly, 2023 was a very challenging year for businesses in Kenya across the board. According to Eng. Albert Mugo, the former National Chairman of Stima DT Sacco, some of those challenges included: heightened fiscal and external vulnerabilities manifested through high public debt, elevated cost of living, exchange rate pressures, global economic uncertainties and tight global financial conditions.

With an asset base of Kshs. 59.15 billion and a membership of 200,145 as at December 2023, Stima DT Sacco is ranked second nationally by the Sacco Society Regulatory Authority (SASRA). It is a forward looking financial institution that has embraced digitization in its product offering and service delivery in line with the current market trends.

Superb performance

The tier one Sacco defied great odds in the operating environment to register superb results in the financial year ending December 2023. “Amazingly, despite these challenges, in addition to the regulatory changes, Stima DT Sacco has delivered a strong financial performance,” said Eng. Mugo while addressing members during the fiftieth Annual General Meeting ( AGM) of the Sacco.

To start with, the Sacco’s consolidated deposits increased by 9.4% from Kshs. 39.43 billion in 2022 to Kshs.43.13 billion in 2023. Additionally, the loan book grew by 9.3 % from Kshs.41.3 billion to Kshs. 45.2 billion. Significantly, the Sacco’s asset base grew by 10% – from Kshs. 53.8 billion in 2022 to Kshs.59.15 billion in 2023. Finally, the total revenue grew from Kshs. 7.4 billion to Kshs. 8.9 billion. “This growth is a testament to our commitment to sound financial management and prudent risk practices,” said Eng. Mugo. “We have continued to support members in realizing their financial goals , whether it be through loans for home ownership, education, or business expansion,” he added.

Dr. Gamaliel Hassan, Chief Executive Officer, Stima DT Sacco giving his speech during the investors’ briefing.

In his speech, the Chief Executive Officer (CEO) of Stima DT Sacco, Dr. Gamaliel Hassan emphasized that the Sacco understands the importance of having sufficient funds in order to meet its members’ needs. In that regard, it has put in place measures to ensure that it maintains adequate liquidity levels at all times. “Our liquid assets against total deposits and long term liabilities ratio has increased from 78.98% in 2022 to 90.08% as at the end of 2023,” said Dr. Hassan. It is worth noting that the said figures are well above the statutory required limit of 15%. Indeed, the Sacco’s liquidity ratio is the highest in the highly competitive market. “ Our core capital over total assets and core capital over total deposits ratios have increased from 17.22% and 23.4% to 17.94% and 24.6% respectively which is well above the required limits,” Dr. Hassan further said.

By the same token, the institutional capital versus total assets ratios of Stima DT Sacco improved from 11.66% in 2022 to 11.93% in 2023 according to Dr. Hassan. Against that background, the Sacco adhered to the regulatory requirement of 8%, cushioning it against any external shocks.

Given this strong performance, the members were paid a first and final dividend of 15% per share on fully paid-up shares as at December 31, 2023. In the same vein, the interest on their non-withdrawable deposits was paid at a rate of 11%. In total, the payout was Kshs. 4.06 billion in 2023 compared to Kshs. 3.56 billion in 2022.

CPA Mary Maalu, National Treasurer, Stima DT Sacco making her presentation at the investor’s briefing.


By and large, since Saccos’ shareholding is in the hands of their respective members, their governance structures contribute a lot to their overall growth. To that end, Stima DT Sacco has put in place a very solid governance structure. “Our governance structure is built on the principles of transparency, integrity and ethical conduct, which are embedded in everything we do,” said Eng. Mugo during the fiftieth AGM. The Sacco’s board provides strategic oversight and direction, ensuring that all actions are aligned with its mission and values. “Our delegates’ election exercise represents an essential aspect of our co-operative model, allowing members to have a direct voice in the governance and decision-making processes of our Sacco,” Eng. Mugo added.

He further said that the Sacco has established robust internal controls and risk management processes to mitigate potential risks and safeguard its members’ interests. “We believe in open communication and disclosure ensuring that our members have access to relevant information in order to make informed decisions,” Eng. Mugo emphasized. The emerging risk areas that the Sacco faces and actively monitors include: business continuity, money laundering and terrorism financing, data privacy, cyber security as

well as environmental, sustainability and governance (ESG).

Currently the Sacco has initiated a programme to operationalize ESG in compliance with the International Financial Reporting Standards (IFRS) S1 and S2 as well as other statutes promoting environmental, sustainability and climate risk management.

A section of stakeholders following the proceedings of the investors’ briefing.


Due to its exemplary performance in 2023, Stima DT Sacco received top awards in a number of fields. To start with, it emerged the most preferred Sacco in real estate financing under the Real Estate 100 Awards. The other awards included: the best Sacco in automated asset finance (5th Automotive industry Awards) and best Sacco in digital financing ( Digital Tech 100 Awards). The Sacco also attained a gold mark in recognition of excellence in enterprise information technology adoption (dx 100 Awards – formerly Ci0100 Awards). As an icing on the cake, Dr. Hassan was recognized as one of the fifty most influential and inspiring CEOs in Kenya. “These honours are a tribute to all our employees who continue to do a remarkable job of serving the shareholders, members and other partners,” said Eng. Mugo.

Stima DT Sacco is also a responsible corporate citizen. The Sacco’s social initiatives are centred around supporting the communities it serves. The initiatives include: financial literacy programmes, educational scholarships and community development projects.

Delivery channels

Stima DT Sacco has put in place brick and mortar ( branches), automated teller machine ( ATM) services, agency banking (branded Stima Sacco Mlangoni agents) as well as digital delivery channels ( online and internet banking) in order to serve its members effectively and efficiently. “Our main goal as a Sacco is to redefine our members’ financial wellness and we cannot do that without first ensuring that we reach as many members as possible,” said Dr. Hassan during the fiftieth AGM. “As a fast growing Sacco, it is imperative to continue seeking visibility and brand presence throughout the country.” In 2023, the Sacco launched three branches – Electricity House in Nairobi, Waumini Plaza in Kisii and Greenwood Mall in Meru further enhancing its national outlook. Other branches include : head office at Stima Sacco Plaza, Embu, Olkaria, Mombasa, Kawi (off Mombasa Road in Nairobi), Nakuru, Parklands (Mushembi Road in Nairobi), Kimathi (Nairobi’s central business district), Eldoret and Kisumu.

Dr. Hassan emphasized that there are times when the need for interpersonal communication far outweighs that of convenience , hence the need for an expansive branch network.


In this day and age when businesses in all sectors are embracing technology in order to enhance their efficiency and profitability, Stima Sacco successfully transitioned to a core-banking system in January 2023. Before that, the Sacco was running on an enterprise resource planning (ERP) system. “The decision to transition to a core-banking system reflects our commitment to modernizing our operations, enhancing service delivery and staying ahead of the industry trends,” said Dr. Hassan. “By moving away from the limitations of an ERP system and adopting specialized core-banking solution, the Sacco has positioned itself to better meet the evolving needs and expectations of our members in an increasingly digital and competitive landscape,” he added. The Sacco will leverage the new core-banking system to drive operations’ efficiency, enhance risk management capabilities and deliver a superior member experience.

Stima DT Sacco Board Members and the CEO pose for a group photo after briefing the investors.

As a result of this successful transition, the Sacco launched an internet banking platform and a mobile banking app branded M-Stima. “These digital channels represent a quantum leap in our ability to provide convenient and secure banking services to our members anytime, anywhere,” Dr. Hassan observed.

Additionally, the Sacco’s digital offerings have been extended to include credit products that were previously only available through the traditional channels. For instance, the salary advance product can be accessed and processed online. The Sacco is also planning to launch emergency and prime advance loans via internet banking and mobile banking platforms. In the same vein, the digital loan products (M-Pawa and Funika) have been seamlessly integrated into the new digital channels of the Sacco hence making them more accessible and user friendly.

Golden jubilee

The story of Stima DT Sacco is extraordinarily great. It is hard to believe that the giant deposit taking Sacco with an asset base of Kshs.59.15 billion and a membership of 200,145 was started by only five audacious and visionary employees of the then East Africa Power and Lighting Company in 1974. After a very daring and rewarding journey, the Sacco celebrates its fiftieth anniversary this year. That is a milestone in its highly successful history. “Fifty years ago, a vision was born-to empower individuals, uplift communities and drive socio-economic transformation,” said Dr. Hassan during a recent investors’ briefing in Nairobi. “Today, that vision stands as a testament to the dedication, resilience and unwavering commitment of all those who have contributed to the success of our Sacco,” he added.

Dr. Hassan attributed the Sacco’s success to the members’ loyalty. “At the heart of our success lies our members- the lifeblood of our organization,” he said. “Your trust, loyalty and support have been the driving force behind our journey, inspiring us to continually strive for excellence and exceed expectations,” he added.

Stima DT Sacco staff members share a light moment while welcoming guests during the investors’ briefing.

Despite making great strides over the last fifty years, Stima DT Sacco is not resting on its laurels. It is mapping out innovative strategies in order to conquer the future. “Together, we will continue to push the boundaries of what is possible, leveraging technology, embracing diversity and championing inclusivity every step of the way,” Dr. Hassan told investors and stakeholders during the briefing. In that regard, the Sacco will be unveiling its 2025-2029 strategic plan this year, as part of its golden jubilee celebrations. The former National Chairman, Eng. Mugo was equally optimistic: “We will continue to focus on good governance, customer experience as well as long term sustainability and we believe that these efforts will continue to drive growth and success of our Sacco in the years ahead.” Indeed, the years ahead for Stima DT Sacco can only become better. The foundation is firm. The team’s wherewithal is unmatched



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