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Press Release

FOR IMMEDIATE RELEASE

 

STIMA SACCO DECLARES 14 PER CENT ON DIVIDEND ON PAID UP SHARES

NAIROBI, 4th April 2018 – Stima SACCO has defied the tough economic times in the country to announce a 14 percent dividend payout as well as 12 percent interest rebates to its shareholders. This comes at a time when many companies and Saccos have issued profit warning to its stakeholders.

The Sacco subsequently posted a surplus before tax of Kshs 644 million up from Kshs 547 million in 2016. This represents a 17.7% growth in pretax profit for the year under review.  During this period membership grew by 16,238 (19 percent) in 2016 moving from 87,510 to 103,748 in 2017

The turnover grew from 3.4 billion in 2016 to 4 billion in the year under review, a growth of 18 percent. Eng. Albert Mugo, Chairman Stima Sacco attributed the impressive performance to an aggressive growth on the loan portfolio, lending reforms and improved liquidity. “We registered a Kshs 2.89 billion which translates to 15 percent increase in deposits from Kshs 19.02 billion in 2016 to Kshs 21.91 billion”

Lending increased by 10 per cent from Kshs 21billion in 2016 to Kshs 23 billion. The SACCO balance sheet grew by Kshs 4.18 billion or 17 per cent to stand at Kshs 28.5 billion up from Kshs 24.5 billion in 2016. On the other hand the share capital grew by 35per cent from Kshs 854 million in 2016 to1.16 billion in 2017. “The growth in share capital demonstrates a great commitment by our members to the Sacco, added Eng. Mugo.

“As a result of our relatively good performance and in line with our retention policy and strategy, we are retaining Kshs 560 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.

DIVIDENDS AND INTEREST REBATE

The Board of Directors recommends payment of a first and final dividend of 14 per cent per share for the period ended December 2017, conversely the board recommends interest rebates on members’ deposit of 12 per cent for the year under review. The total payout for the two items will be Kshs 1.98 billion in 2017, compared to Kshs 1.16 billion in 2016.

BOARD ELECTIONS AND COMPOSITION

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.

Ends

Notes to editors

 

Stima Sacco (DT) is a licensed deposit taking Sacco established in 1974 with the Sole objective of uplifting the members’ social economic wellbeing. The Sacco has witnessed phenomenon growth in the past 4 years doubling its loan book and membership. The Sacco has a credit rating B++ long-term rating while a short term B rating.