Home Business Stima Sacco members set for Ksh 4B payout

Stima Sacco members set for Ksh 4B payout

Dr Gamaliel Hassan, CEO Stima DT Sacco.

Members of Stima Sacco are in for Ksh 4.1 billion payout for the full year ended December 31, 2023 on what the organization says stems from better performance reported in the year.

While the sacco maintained its final dividend at the rate of 15pc per share on fully paid-up shares and 11pc interest on deposits as at the close of the year under review, total pay to members has risen by 17.1pc.

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“Although we retained the same percentage payouts, the amounts are higher because the share capital increased during the year and also the member deposits also increased. So the base on which the percentage is calculated is what increased thereby increasing the total quantum from Ksh 3.5 billion to Ksh 4 billion while retaining the same percentages,” said Mary Maalu, National Treasurer.

The sacco members now expect to be paid Ksh 485.5 million from share capital compared to Ksh 395.7 million paid out last year while earnings from interest will amount to Ksh 3.6 billion from Ksh 3.2 billion.

During the year under review, the sacco reported a 10pc growth in asset base to Ksh 59.1 billion from Ksh 53.8 billion reported in 2022, while member deposits surged to Ksh 43.1 billion from Ksh 39.4 billion.

“Our liquid assets against total deposits and long-term liabilities ratio increased from 78.98pc in 2022 to 90.08pc as at the end of 2023. These figures are well above the statutory required limit of 15pc, marking our liquidity ratio as the highest in the market,” said Dr Gamaliel Hassan, CEO Stima DT Sacco.

The sacco also saw its loan book bulge by 9.3pc to Ksh 45.2 billion from Ksh 41.3 billion as total interest earnings increased by 21.4pc to Ksh 8.5 billion.

Stima Sacco says it has further retained earnings amounting to Ksh 1.4 billion from Ksh 982 million, 45pc improvement.

“Since we are looking into future growth, we had to also look at retaining some of the earnings that we may be able to invest and to grow the organization. We are inviting other members and we would want to have a firm organization that can assure members returns into the future,” said Peter Njenga, Stima Sacco Vice Chairman.

With a growth in membership from 177,260 to 200,145 last year, the sacco further plans to recruit 30,000 new members this year.

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