Stima Sacco has defied tough economic times to announce a Ksh1.2 billion dividend payout to its shareholders. Each shareholder will be paid at 14 percent per paid up share compared to 12 percent paid in 2015.
The Sacco subsequently posted a profit before tax of Ksh547.36 million up from Ksh288.84 million in 2015, representing 89% growth. During this period, membership grew by 58% from 55,854 in 2015 to 88,110 in 2016.
The turnover grew from Ksh2.66 billion in 2015 to Ksh3.40 billion in the year under review, a growth of 28%. Eng. Albert Mugo, Chairman Stima Sacco & MD KenGen, attributed the impressive performance to aggressive growth in the loan portfolio.
Total members’ deposits increased by Ksh3.1 billion, 20% jump from Ksh15.9 billion in 2015 to Ksh19.0 billion. The alpha deposits increased by Ksh2.8 billion, while the deposits in the members’ savings accounts by Ksh457 million.
See Also >> Chase Bank put up for sale, any buyer?
Lending increased by 29% from Ksh16.3 billion in 2015 to Ksh21.03 billion. The Sacco’s balance sheet expanded by Ksh4.2 billion (21 per cent) to stand at Ksh24.5 billion up from Ksh20.3 billion in 2015. Increased share capital, growth in deposits and particularly the loan book, contributed greatly to his growth.
“As a result of our relatively good performance and in line with our retention policy and strategy, total comprehensive income for the year 2016 was Ksh417 million compared to Ksh289 million in 2015,” said Eng. Mugo.
SASRA CEO John Mwaka, who was chief guest, noted that Stima Sacco should leverage on technology to deliver quality services to its members. “The Sacco should reemphasise the reason for its existence and develop products and services tailored towards achieving this goal.”
[crp]
