Stima Sacco raises dividends to Sh396m from Sh306m
Stima Sacco members queue outside the Kimathi Street premises on February 28, 2022 following the FY 2021 AGM meeting that saw members earn rebates and dividends for their savings.
Stima Sacco is set to distribute a higher Sh395.7 million as dividends to members for the financial year ended December 31, 2022, lifting the distribution from Sh306.8 million last year.
The higher payout is despite a 36 per cent drop in surplus for the period from Sh1.432 billion to Sh996.3 million.
The lower surplus is attributable to increased expenses in the period with employee benefits, administrative expenses, and credit impairment losses all increasing in the period.
Administrative expenses for instance touched Sh1.1 billion in the period from a lower Sh835.4 million a year earlier.
The greater expenses offset a marginal three percent rise in net interest income to Sh3.4 billion from Sh3.3 billion in the period from increased interest income which stood at Sh7 billion for the year.
Further, net fee and commission income and other operating income also slowed down in the calendar year trimming the surplus.
The board of Stima Sacco has described the performance as resilient against the backdrop of a challenging operating environment.
Slowed economic growth
“The society performed well at the backdrop of slowed economic growth emanating from prolonged drought, runway inflation as well as uncertainties in the electioneering year,” Stima Sacco said in a statement.
During the year, Stima Sacco loans to members grew to Sh41.3 billion from Sh36.9 billion in 2021 while the sacco raised its investment in government securities to Sh1.97 billion from a flat Sh1 billion previously.
The growth has pushed Stima Sacco asset base to Sh53.8 billion from Sh46.5 billion previously.
Stima Sacco’s membership has over the same period increased by 22,952 members to 177,260 members at the end of 2022 from 154,308 members previously.
The Sacco’s membership has grown by an average of 12 percent per annum since 2018.
Stima Sacco remains adequately capitalised with both capital adequacy ratios and liquidity ratios sticking well above statutory requirements.
