Stima Sacco members get Sh2bn payout

BT ReporterApr 5, 20181 Mins read3.8k

The National Treasury, has already allocated Ksh20 billion in the 2017/18 budget estimates, to improve minimum wage of workers in the civil service..

[dropcap]S[/dropcap]tima Sacco has defied the tough economic times to announce a 14% dividend payout as well as 12% interest rebates to its shareholders, at a time when many companies and Saccos have issued profit warnings. The total payout for the two items will be Ksh1.98 billion in 2017, compared to Ksh1.16 billion in 2016.

According to its annual report for 2017, Stima Sacco posted a profit before tax of Ksh644 million up from Ksh547 million in 2016, a 17.7% growth. During this period membership grew by 16,238 (19 percent) in 2016 moving from 87,510 to 103,748 in 2017. Turnover grew 18% from Ksh3.4 billion in 2016 to Ksh4 billion in the year under review.

Eng. Albert Mugo, the chairman Stima Sacco, attributed the impressive performance to an aggressive growth on the loan portfolio, lending reforms and improved liquidity. “We registered a Ksh2.89 billion which translates to 15 percent increase in deposits from Ksh19.02 billion in 2016 to Kshs 21.91 billion,” he said.

READ: Meet Stima Sacco CEO Chris Useki

Lending increased by 10% from Ksh21 billion in 2016 to Ksh23 billion. The Sacco balance sheet grew by Ksh4.18 billion to stand at Ksh28.5 billion, up from Ksh24.5 billion in 2016. On the other hand, the share capital grew by 35% from Ksh854 million in 2016 to Ksh1.16 billion in 2017.

The growth in share capital demonstrates a great commitment by our members to the Sacco, said Eng. Mugo.

“As a result of our relatively good performance and in line with our retention policy and strategy, we are retaining Ksh560 million in 2017 of the net appropriation, up from Kshs 490 million in 2016, to strengthen our reserves and cushion the business for any potential future shocks” said Mr Chris Useki, chief executive officer of Stima Sacco.

Meanhile, Dr Ken Tarus, MD and CEO Kenya Power, and Rebecca Miano, MD and CEO KenGen, were elected to serve on the board of Stima Sacco and subsequently elected as National Chairman and Vice Chair respectively. The other board members include John Mudany, Osman Khatolwa, Joyce Ochieng, Comm Anne Owuor, Beatrice Meso, Jossylyn Mutua and Eng. Albert Mugo.