Stima Sacco to pay 14pc dividend, 12pc rebate as profits grow

STIMA SACCO CHAIRMAN ALBERT MUGO, FILE PHOTO | NMG.

THURSDAY, APRIL 5, 2018 16:51

Stima Sacco has announced a 14 per cent dividend payout and a 12 per cent rebate on its its shareholder contributions.

The total payout for the two items will be Sh1.98 billion in 2017, compared with Sh1.16 billion in 2016.

Stima Sacco chairman Albert Mugo said the sacco subsequently posted a surplus before tax of Sh644 million 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.

Mr Mugo also revealed that during this period, membership grew by 16,238, a 19 per cent growth to 103,748 in 2017.

Stima Sacco chief executive Chris Useki said the Sacco is retaining Sh560 million in 2017 of the net appropriation, up from Sh490 million in 2016.

Retention policy

“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 Mr Useki.

Turnover grew from Sh3.4 billion in 2016 to Sh4 billion in the year under review, representing a growth of 18 per cent.

Mr Mugo attributed the strong performance to growth on loan portfolio, lending reforms and improved liquidity.

Lending went up from Sh21 billion in 2016 to Sh23 billion, representing a 10 per cent increase. Share capital also grew by 35 per cent to Sh1.16 billion.

“The growth in share capital demonstrates a great commitment by our members to the sacco,” said Mr Mugo.

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