By Azael Masese
Stima Deposit Taking (DT) Sacco exhibits all the attributes and performance indicators of a successful institution. Ranked the second wealthiest Society by the Sacco Societies Regulatory Authority (SASRA), their end year performances have remained mouth-watering. As of 31st December 2021, the Society’s asset base, turnover, loan book and balance sheet had grown by double digit percentage points.
The growth, largely boosted by the implementation of its 2019 -2024 strategic plan in 2020, focuses on key drivers of the strategy which include mobile banking, agency banking and physical branch network, diversification of income streams through strategic partnerships and delivery of alternative business channels such as Shariah banking.
During the financial year ended 31st December 2021, its asset base shot to Kshs 46.8 billion, compared to Kshs 41 billion reported in 2020.
Deposits increased by 9.7 per cent from Kshs 31.19 billion to Kshs 34.21 billion in 2021, with the loan book hitting Kshs 36.35 billion in 2021, compared to Kshs 32.80 billion reported in 2020.
Its share capital grew from Kshs 2.02 billion to Kshs 2.38 billion while the balance sheet grew by 13 per cent from Kshs 41.06 billion to Kshs 48 billion.
During the period under review, its turnover grew by 16 per cent to Kshs 6.86 billion compared to Kshs 5.89 billion in 2020.
Stima DT Sacco paid out dividends and interests on deposits at the rate of 14 per cent and 10.75 per cent for the 2021 financial year.
Total pay-out for the two items was Kshs 2.99 billion in 2021, compared to Kshs 2.72 billion in 2020.
The Sacco achieved surplus for the year of Kshs 1.43 billion compared to Kshs 1.03 billion previously. Over the last five years, the Sacco’s membership has increased by 9 percent annually to over 154,000 as at 31st December 2021.
Statistically, and if all goes to plan, membership will jump to more than 167,000 to realize increased deposits and loan uptake.
The membership of over 154,000 is derived from the energy, utilities, education, services, diaspora, individuals, groups/ Chamas, small and micro enterprises (SMEs) among other sectors.
In key fronts, Stima DT Sacco has not disappointed, setting the pace among its peers in unchartered waters.
It was the first conventional Sacco to launch a Shariah compliant product line and the1st to introduce instant ATM services.
Eager to differentiate its products and services, it was the first to offer cheque truncation services.
The Sacco prides itself in being the first deposit-taking Sacco to be licensed by SASRA and holds license number one. It is also the first Sacco to introduce mobile banking services.
The Society also took a critical step by becoming a critical partner with the Kenya Mortgage Refinance Company, to provide long term funding to primary mortgage lenders.
The move will consequently boost the country’s efforts of achieving affordable and quality housing as part of the Big 4 Agenda.
In its efforts to diversify revenue stream, enhance its balance sheet and improve its books of accounts, the Society started MPawa Insurance Agency to provide its members and staff with covers.
Before the agency was established, the Society paid millions in form of commissions to other parties.
Established in 1974 to serve employees of the then East African Power & Lighting Company, the Sacco’s efforts are geared towards making it a one stop shop and meet all the financial needs of its members.
Its seamless salary processing solution, dubbed Salo Chap Chap, ensures that members receive their salaries, allowances, and pension payments in a timely and efficient manner.
The Sacco launched its Agency Banking initiative, dubbed Stima Sacco Mlangoni, to bring services closer to members. This seeks to improve financial inclusion and ensure the Sacco reaches a wider customer base. The initiative is one of the methods the Sacco is using to extend its branch network in a cost-effective way, via authorized agents in remote areas.
In 2022, Stima DT Sacco launched several products and services such as an Omni Channel that encompasses Mobile, Internet and Agency Banking.
These are aimed to enable members access the same service experience as well as the same products across digital channels.
The Diaspora Remittance Solution is currently providing a seamless platform that enables members in the Diaspora send monies to the Sacco with automated and hassle-free forex conversions.
