By Evans Ongwae

Stima Deposit-Taking (DT) Savings and Credit Cooperative Society Ltd marks its Golden Jubilee this year. The Sacco earned special praise on March 23, 2024, during its 50th Annual General Meeting (AGM).

The Cabinet Secretary, Ministry of Co-operatives and Micro, Small and Medium Enterprises Development, Mr Simon Chelugui, lauded the Sacco for its achievements.

The CS, the chief guest during the meeting, urged the Sacco’s leadership and membership, as well as employees, to maintain its impressive growth trajectory.

Mr Chelugui said: “The substantial increase of close to 10 percent across various parameters over the past year as indicated by your financial statements is truly commendable and reflects the collective efforts of all members.”

He noted that members, management, and the Board have, through their unwavering dedication and commitment, contributed to the success of Stima DT Sacco Society Limited.

The CS told them: “Your collective efforts have brought you to this momentous occasion, marking 50 years of progress and prosperity.”

Mr Chelugui appraised Stima (DT) Sacco members of the positive strides being made in the ongoing reforms within the co-operative sector. He said significant progress has been made towards the enactment of the Co-operatives Bill.

This proposed piece of legislation, the CS explained, “will establish a regulatory framework that not only conforms to constitutional principles, but also incorporates the best business practices, propelling our co-operatives towards a new era of growth and sustainability.”

Stima (DT) Sacco National Chairperson, Eng Albert Mugo, revealed that the organisation had registered strong performance in 2023 in spite of a tough business environment.

He said: “Our audited financial performance for the past year has been remarkable as we have achieved remarkable growth in all our key performance indicators, including assets, deposits, loans, and profitability.”

The consolidated deposits increased by 9.4 percent from Ksh39.43 billion in 2022 to Ksh43.13 billion in 2023. The loan book grew by 9.3 percent from Ksh41.3 billion to Ksh45.2 billion. The Sacco’s balance sheet grew by 10 percent from Ksh53.8 billion in 2022 to Ksh59.15 billion in 2023.

Added Eng Mugo: “Additionally, we have been able to increase our total revenue from 7.4 billion to 8.9 billion. This growth is a testament to our commitment to sound financial management and prudent risk practices.”

Stima DT Sacco continues to support members in realising their financial goals, whether it be through loans for home ownership, education, or business expansion. “Overall, 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 Eng Mugo.

The Board of Directors recommended the payment of a first and final dividend of 15 percent per share on fully paid-up shares as of December 31, 2023. It also recommended payment of interest rebates on members’ deposits at the rate of 11percent for the year under review, subject to requisite approvals.

Therefore, the total pay-out for the two items was Ksh4.06 billion in 2023 compared to Ksh3.56 billion in 2022.

Eng Mugo explained that solid governance plays a role in this success.

He said: “At Stima DT Sacco, we understand that strong governance is the cornerstone of our success. Our governance structure is built on principles of transparency, integrity, and ethical conduct, which are embedded in everything we do.”

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.

In the current financial year, the Sacco has initiated a programme to operationalise Environmental, Social and Governance (ESG). This is in compliance with the International Financial Reporting (IFRS) Standards S1 and S2 as well as other statutes promoting environmental, sustainability and climate risk management.

“As we look ahead to the coming year, we are confident in our ability to continue to deliver strong financial performance and business success for our shareholders,” said Eng Mugo.

Stima (DT) Sacco Chief Executive Officer (CEO), Dr Gamaliel Hassan, expressed happiness that the organisation was attracting more members. He said: “Because we have ensured that we are delivering value to our members, our numbers in the past year have grown from 177,260 to 200,145.

Last year, the Sacco embarked on an expansion drive to bring quality products and services to all Kenyans. This saw it launch branches in Electricity House in Nairobi, Waumini Plaza in Kisi, and Greenwood City Mall in Meru, in addition to the already existing nine. The Sacco also has service points in Naivasha and Embu.

Members may additionally access services via online platforms, be it mobile or digital banking, ATM services, or Stima Sacco Mlangoni agents spread throughout the country.

Dr Hassan said the Sacco has continued to invest in technology to enhance the efficiency and effectiveness of its operations, noting: “This has paid off tremendously, leading us to transition to a core-banking system in January 2023. The decision to transition to a core-banking system reflects our commitment to modernising our operations, enhancing service delivery, and staying ahead of industry trends.”

The CEO added that moving forward, the intention is to leverage on the new core-banking system to drive operational efficiency, enhance risk management capabilities, and deliver a superior member experience.

“With real-time data insights, streamlined processes, and innovative digital services at our disposal, the Sacco is well-positioned to capitalise on emerging opportunities and maintain our competitive edge in the market,” he said.

Dr Hassan noted that over the past five decades, the Sacco has weathered storms, overcome challenges, and seized opportunities, all while staying true to its core values and principles.

He said: “We have grown from humble beginnings to become a beacon of hope and empowerment for countless individuals and families across our nation.”

Looking forward, Dr Hassan opined that the next 50 years “hold boundless opportunities for growth, innovation, and impact. Together, we will continue to push the boundaries of what is possible, leveraging technology, embracing diversity, and championing inclusivity every step of the way.”

While noting that the financial industry is evolving faster than ever, he asserted that the Sacco was evolving with it.

“By developing the next generation of products and solutions, delivering on our purpose, and investing in our people, we will create the next phase of growth for the organisation and lead Stima into the future,” said Dr Hassan.

eongwae@ke.nationmedia.com