Stima Sacco Set to Raise Dividends from Sh306M to Sh396M

Stima Sacco is expected to increase its dividend payment to members for the fiscal year that ends on December 31, 2022, from Sh306.8 million to Sh395.7 million.

Notwithstanding a 36% decline in the period’s surplus from Sh1.432 billion to Sh996.3 million, the larger payout still applies.

Employee benefits, administrative costs, and credit impairment losses all rose throughout the time, which is what caused the higher spending and reduced surplus.

For instance, administrative costs increased to Sh1.1 billion in the period from Sh835.4 million a year earlier.

Increased expenses outweighed a slight three percent gain in net interest revenue, which was up to Sh3.4 billion from Sh3.3 billion for the period and Sh7 billion for the entire year.

Additionally, during the calendar year, net fee and commission income as well as other operating income also decreased, reducing the surplus.

The Stima Sacco board has characterized its performance as resilient in the face of a difficult operating environment.

Stima Sacco said in a statement that despite slower economic development brought on by a protracted drought, high inflation, and uncertainty throughout the election season, society performed admirably.

It increased its investment in government securities from a flat Sh1 billion to Sh1.97 billion throughout the year, while loans to members increased from Sh36.9 billion to Sh41.3 billion.

Stima Sacco’s asset base has increased from Sh46.5 billion to Sh53.8 billion as a result of the growth.

By the end of 2022, Stima Sacco will have 177,260 members, up from 154,308 members at the beginning of the same time.

Since 2018, Sacco’s membership has increased by an average of 12% annually.

Stima Sacco continues to have adequate capitalization, with both capital adequacy ratios and liquidity ratios consistently exceeding legal minimums.