Members of the Stima Sacco are set to receive a 14 per cent dividend and a 12 per cent rebate on their shareholder contributions.
The total payout totals Sh1.98 billion in 2017, an increase from Sh1.16 billion in the previous year. Albert Mugo, the chairperson of Stima Sacco revealed that the Sacco posted a surplus of Sh644 million before tax in 2017, up from Sh547 million in 2016.
“This represents a 17.7 per cent growth in pre-tax profit for the year under review,” he said.
He further told Business Daily Africa that their membership increased by 16,238, a 19 per cent growth to 103,748 last year. Stima Sacco’s CEO Chris Useki said the Sacco will retain Sh560 million of the net appropriation in 2017, an increase from Sh490 million the previous year.
“As a result of our relatively good performance and in line with our retention policy and strategy, we are retaining Sh560 million in 2017 of the net appropriation, up from Sh490 million in 2016, to strengthen our reserves and cushion the business for any potential future shocks” said Useki.
The total turnover increased by 18 percent to Sh4 billion in 2017, up from Sh3.4 billion in 2016. Mugo said the Sacco’s strong performance can be linked to growth on loan portfolio, lending reforms and improved liquidity.
Lending increased to Sh23 billion last year, up from Sh21 billion in 2016, while share capital also grew Sh1.16 billion, a 35 percent growth.
“The growth in share capital demonstrates a great commitment by our members to the sacco,” Mugo told Business Daily.
