Stima Sacco bonanza drives shareholder payouts to new record of 15 per cent

Stima DT Sacco Society Limited National Chairman Eng Albert Mugo.

Stima DT Sacco Society Limited has delivered a strong fiscal report as seen in its latest financial statements to pay members dividends at a rate of 15 per cent and rebates at 11 per cent.

The permutations translated to a total payout of KSh4.06 billion compared to KSh3.56 billion in 2022.

According to the Sacco’s financial report, consolidate deposits increased by 9.4 per cent from KSh39.43 billion in 2022 to Ksh43.13 billion in 2023, while its loan book grew by 9.3 per cent from KSh41.3 billion to KSh45.2 billion.

Its balance sheet grew by 10 per cent from KSh53.8 billion in 2022 to KSh59.15 billion in 2023, while its total revenue increased from KSh7.4 billion to Ksh8.9 billion; the growth being attributed to the Sacco’s commitment to sound financial management and prudent risk practices.

The report was tabled by the National Chairman Eng Albert Mugo during the 50th Annual General Meeting (AGM) held at the College of Insurance in Nairobi on March 23, 2024.

Speaking during the AGM, Mugo said they continue to support their members in realizing their financial goals through giving them loans for home ownership, education, or business expansion.

The membership on the other hand grew from 177,260 in 2022 to 200,145 in 2023, an increase by 12.9 per cent that brings the average annual rise to 12 per cent year-on-year.

The total assets increased by 10 per cent from KSh53.7 billion in 2022 to KSh59.1 billion in 2023, which is attributed to the growth in deposits by 9.4 per cent as well as growth in core capital by 30 per cent from Ksh9.2 billion to Ksh10.6 billion.

“Our financial performance for the fiscal year 2023 has been very strong, and not only ensures our sustainability, but also enables us to reinvest in our members and communities,” said Mugo.

Risk management

During the AGM, members were updated on the Sacco’s risk management framework in dealing with emerging risk areas, which include business continuity, money laundering and terrorism, data privacy, cyber security, and Environmental, Sustainability and Governance (ESG).

The Business Continuity Policy approved by the board has guided the implementation of a business continuity plan, including regularly updating and training on the same to ensure that there are minimal disruptions due to ‘black, grey or white swan’ events like epidemics, Covid-19 being a stark example.

In compliance with the Proceeds of Crime and Anti-Money Laundering Act and Prevention of Terrorism Act, the Sacco registered with the Financial Reporting Centre and actively collaborates with it in line with the Data Protection Act and subsequent regulations.

Already, the Sacco was enlisted in the Office of the Data Protection Commissioner in 2023. This was after a Data Privacy Impact Assessment was conducted by an external consultancy, with the Sacco staff and members currently undergoing training and awareness on the tenets of data protection.

Further, the Sacco, through its Risk and Compliance Department and the Security Operations Centre, conducts frequent trainings for staff and members on mitigating cyber-attacks through systems, ATM card fraud, and mobile and internet banking fraud. It has acquired various tools to actively monitor and mitigate on cyber attacks.

Mugo, however, noted that all systems must undergo Vulnerability Assessment and Penetration testing before going live, adding that in the current financial year, the Sacco has initiated a programme to operationalize ESG in compliance with the International Financial Reporting Standards (IFRS), as well as other statutes promoting environmental, sustainability and climate risk management.

“At Stima DT Sacco, comprehensive risk management is treated as an integral, enterprise –wide component that affects how the Sacco measures and rewards its success. The Sacco has a coordinating Risk and Compliance Department which provides oversight on a day-to-day basis,” he said.

By our reporter

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