By Fred Maingi
Nothing seems to be going wrong forStima DT Sacco Society Limited who have announced a massive surplus of Ksh. 1.02 billion for the 12-month period ended December 31, 2020 compared to Kshs 881Million in 2019.
Turnover increased to Kshs. 5.87 billion in 2020 from Kshs. 5.64 billion in 2019, a growth of 4 percent. This was as a result of an aggressive growth in the loan portfolio, product enlargement, lending reforms and improved liquidity.
National Chairperson Rebecca Miano said the future, albeit challenging looks brighter for over 140,000 members and remains confident and looks forward to a promising year.
“We have competitively identified a core banking vendor that will enhance operational excellence, efficiency, service delivery to our members and implementation is set to commence from 2021,” she told delegates during the 47th Annual General Meeting at the sacco premises in Mwiki town.
She said that the society’s prudent capitalization program coupled with aggressive member education on Financial Management and Investments contributed to the paid up share capital growth from Kshs. 1.76 billion to Ksh.2.02 billion.
“Deposits increased by 10 percent from Kshs. 28.27 billion in 2019 to Kshs. 31.19 billion in 2020. The alpha deposits grew from Kshs. 21.70 billion to Kshs. 23.71billion a 9 percent growth compared to the previous year,” she said.
The loan book grew by 15 percent from Kshs. 28.62 billion to Kshs. 32.80 billion while the balance sheet grew by 12 percent from Ksh.36.53 billion in 2019 to Kshs. 41.05 billion in 2020.
Speaking during the AGM, Ali Noor Ismail Principal Secretary, State Department for Co-operatives said the Government was implementing several measures to tighten regulation of societies. Recently, regulations have been gazetted to enable Non-Deposit taking SACCOs with deposits of Ksh100 Million and above, Saccos that recruit members virtually and Diaspora Saccos to be brought under the supervision of the Sacco Societies Regulatory Authority (SASRA).
The co-operatives have mobilized members’ savings and deposits of over Ksh.850 Billion with an asset base of over Ksh.1.2 trillion and loan portfolio exceeding Ksh.806 Billion.
“Co-operatives thus contribute to about 30% of the National savings. Saccos continue to be the best vehicle to intermediate between savings and investments in addition to encouraging their members to embrace savings culture for socio-economic development,” he said.
On his part, Stima Sacco Chief Executive Officer Dr. Gamaliel Hassan said the Society intends to raise Kshs 1 billion in share capital during the 2021 financial year to help steer the strategic plan. This will ensure that the Society attains a substantive buffer against any shocks like the Covid-19 pandemic, as well as keeping the Society in an assured tangent and traction in achieving the 2019 – 2024 strategic plan.
“Sacco members whose income has been directly impacted by COVID-19, leading to a loss of employment or reduction of salaries and income, we have offered a moratorium on the loans payable. This typically means that the principal and/ or interest is frozen for an agreed duration to enable the member recover from the impact of the pandemic and continue making the payments,” he said.
The Society has also launched a low – cost mortgage scheme, aided by funds from the Kenya Mortgage Refinance Company (KMRC) to help cushion an annual housing demand of 250,000 units against an estimated supply of 50,000 units, culminating in a housing deficit of two million units, or 80 percent deficit.
In view of these results, the Board of Directors has recommended the payment of a first and final dividend of 14 per cent per share on fully paid up shares as at December 31, 2020.
Similarly, they have also recommend payment of interest rebates on members’ deposits at the rate of 10.75 per cent for requisite approvals. Therefore, the total payout for the two items will be Kshs. 2.72 billion in 2020 compared to Kshs. 2.35 billion in 2019.