Stima Sacco recorded a profit of Kshs. 1.02 billion for the twelve month period ending December 31, 2020 compared to Kshs 881 million in 2019. In addition, its turnover increased to Kshs. 5.87 billion in 2020 from Kshs. 5.64 billion in 2019, a growth of four percent. This was as a result of an aggressive growth in the loan portfolio, product enlargement, lending reforms and improved liquidity.
The national chairperson, Mrs Rebecca Miano said the future, albeit challenging looks bright for Stima Sacco members. “We have competitively identified a core banking vendor that will enhance operational excellence, efficiency as well as service delivery to our members and its implementation is set to commence from 2021,” she told delegates during the 47th Annual General Meeting (AGM).
In addition, she emphasized that the lender’s prudent capitalization programme coupled with aggressive member education on financial management and investments contributed to the paid up share capital growth from Kshs. 1.76 billion to Ksh.2.02 billion.
“Deposits increased by ten percent from Kshs. 28.27 billion in 2019 to Kshs. 31.19 billion in 2020. The alpha deposits grew from Kshs. 21.70 billion to Kshs. 23.71billion, a nine percent growth compared to the previous year,” Mrs. Miano said.
By the same token, Stima Sacco’s loan book grew by fifteen percent from Kshs. 28.62 billion to Kshs. 32.80 billion, while the balance sheet grew by twelve percent from Ksh.36.53 billion in 2019 to Kshs. 41.05 billion in 2020.
Speaking during the AGM, Mr. Ali Noor Ismail Principal Secretary, State Department for Co-operatives observed that the government was implementing several measures to tighten regulation of savings and credit co-operative societies (saccos) in the country. Recently, regulations have been gazetted to enable non-deposit taking saccos with deposits of Kshs. 100 million and above, saccos that recruit members virtually and the ones operating in the diaspora to be brought under the supervision of the Sacco Societies Regulatory Authority (SASRA).
In total, saccos in Kenya have mobilized members’ savings and deposits of over Ksh.850 billion with an asset base of over Ksh.1.2 trillion and a loan portfolio exceeding Ksh.806 billion.
“Saccos contribute about 30% of the national savings and they continue to be the best vehicles of intermediating between savings and investments in addition to encouraging their members to embrace savings culture for socio-economic development,” said Mr. Ismail.
On his part, Stima Sacco chief executive officer, Dr. Gamaliel Hassan said the society intends to raise Kshs. 1 billion in share capital during the 2021 financial year to help steer the strategic plan. This will ensure that it attains a substantive buffer against any shocks like the Covid-19 pandemic.
“Sacco members whose income has been directly impacted by Covid-19, leading to a loss of employment or reduction of salaries and income, have been offered a moratorium on the loans payable. This typically means that the principal and (or) interest are frozen for an agreed duration to enable the member recover from the impact of the pandemic and continue making the payments,” Dr. Gamaliel said.
Stima Sacco has also launched a low cost mortgage scheme, aided by funds from the Kenya Mortgage Refinance Company (KMRC) to help cushion an annual housing demand of 250,000 units against an estimated supply of 50,000 units.
In view of these results, the board of directors has recommended the payment of a first and final dividend of 14 per cent per share on fully paid up shares as at December 31, 2020. In addition, the board has recommended the payment of interest rebates on members’ deposits at the rate of 10.75 percent for requisite approvals. Therefore, the total payout for the two items will be Kshs. 2.72 billion in 2020 compared to Kshs. 2.35 billion in 2019.