Stima Sacco is seeking to recover KSh 108 million it invested in the Kenya Union of Savings and Credit Cooperatives (KUSSCO) but says the amount is insignificant to its full-year financial performance, representing just 1.35% of its total investments and 0.8% of core capital.
- •According to the board CEO, Gamaliel Hassan, Stima Sacco’s cash-cash equivalents in 2024 stood at about KSh 9 billion; diminishing the impact of KUSCCO’s input – which was just 1.2% of its cash figure.
- •During the Investors’ Briefing convened at Radisson Blu Hotel in Nairobi, he insisted that Stima Sacco’s financial performance was solid in 2024; based on the growth of its total income by 15% year-over-year to KSh 10.3 billion, up from KSh 9 billion in 2023.
- •The growth was primarily fueled by a 55% surge in investment income to KSh 1.7 billion and a 7% increase in interest income to KSh 7.9 billion.
“We made a provision of KSh 108 million, which means we just set aside that fund and we won’t recognize it as a profit due to the doubtfulness of its recoverability. If we get it back, we shall write it back into our own profitability,” the Sacco’s National Treasurer Mary Maalu told The Kenyan Wall Street.
Stima Sacco will not write off the deposits it had in KUSSCO, preferring to anticipate recovery and include the millions as ‘provisions’. According to Maalu, the interim board of the Central facility is pursuing possible liquidation of assets it owned to repay lost deposits.
Maalu pointed out that the value derived by the Sacco’s members remained unaffected by the KUSCCO fiasco, which has seen multiple Sacco’s write off deposits and other investments in the union. She noted that the Sacco declared a dividend of 16% in 2024, higher than in 2023 when it was at 15%. Interest rebates were retained at 11% – signalling that there was enough surplus.
Stima Sacco’s Numbers
The Sacco controlled its costs by reducing total expenses by 5% to KSh 4.04 billion. This translated into a 29% rise in pre-tax surplus, which reached KSh 6.2 billion.
On the balance sheet, total assets grew 12% to KSh 66.4 billion, driven by an 11% expansion in loans and advances to KSh 50.2 billion, while deposits increased 8% to KSh 46.7 billion. The institution allocated 38% of its revenue to interest on rebates and 6% to dividends, retained 15% as earning, and used 21% for administrative and staff costs.
Stima Sacco’s membership base grew by 10% to 220,650 in 2024, and it aims to expand it further to 260,650 by 2025, an 18% increase. Share capital, a measure of members’ equity in the Sacco, saw the most significant percentage jump, increasing 22% to KSh 4.4 billion.
According to its data, Stima Sacco’s core capital to total assets ratio grew from 17.22% in 2022 to 20.22% in 2024, surpassing its target of 18.80%. Institutional capital to total assets has also improved, reaching 13.54% in 2024, exceeding the projected 12.30%. Meanwhile, the core capital to total deposits ratio surged from 20% in 2022 to 28.7% in 2024, significantly above the 10% regulatory minimum
For 2025, the institution projects a further 12% growth in lending, aiming to push its loan portfolio to KSh 56 billion. The Sacco contends that such ambitions can be achieved once it embraces digitization – in targeting the younger population and its Credit-Scoring module for efficient loan allocation.