Stima Sacco spearheads an initiative to deepen the financial sector

Stima Sacco is the official sponsor of the Finance Literacy and Opportunity Week (FLOWK) which will be held on the 26th and 27th of October 2017. The two-day event will comprise key financial players (for instance saccos and commercial banks), influencers and consultants.  It will be held against a background of a slowdown in the financial sector that has been occasioned by capping of interest rates and an unfriendly political environment.

According to Mr Jack Kulova, the corporate communications manager at Stima Sacco, FLOWK is an excellent opportunity for the lender to showcase its unique value proposition to the market, besides contributing to the overall financial deepening agenda.  Stima Sacco has been on the forefront in advocating for inclusivity in the financial sector among millions of unbanked and under banked Kenyans.

Based on a report released by the Financial Sector Deepening (FSD) network, saccos form a vital part of Kenya’s financial sector. While as a whole the sub- sector is much smaller in absolute terms compared to commercial banks – accounting for an estimated 10% of the assets in deposit-taking intermediaries – the significance is far greater. Saccos provide services to approximately fourteen million Kenyans. In the rural areas for instance, many farmers depend on saccos for savings, credit and payment services.  With their members /customers being shareholders, they provide an important alternative institutional form to commercial banks.  Based on their shareholding, members share the profits their sacco has generated at the end of every financial year in form of dividends.

Global experience from the financial crisis of 2007/08 suggests that this diversity can contribute to resilience. As the first ever financial expo in Kenya, FLOWK’s philosophy is to sensitize and develop opportunities in the financial sector for Kenyans.  It is a collaborative platform to provide Kenyans with awareness, access, business-preparedness and linkages to funding opportunities.  The organizers   are committed to developing this initiative into a sustainable and long-term programme.