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Stima Sacco set to unveil Sharia-compliant products

Stima Sacco is set to launch new products in the market in a bid to increase shareholder returns and grow its business. Among the products to be rolled out include Sharia-compliant loans, digital lending, three branches every year.

It also plans to join Kenya Mortgage Refinance Company, which is expected to help solve a mismatch for lenders relying on short-term deposits to fund long-term home loans.

Speaking yesterday during 45th Stima Sacco Annual General Meeting (AGM), Chief Executive Officer Chris Useki said new products would boost the society’s income, bring value to shareholders capital and enhance members’ individual socio-economic status.

He said the Sacco has set aside Sh200 million in 2019 to protect its Information Communication and Technology (ICT) infrastructure from being attacked by cyber-criminals.  During the year ending December 31, 2018, he disclosed, the Sacco received a surplus of Sh972 million compared to Sh644 million realised in a similar period in 2017.

Useki said it is focusing on digital banking, with the all-telco M-Pawa Mobile Wallet continuing to play a pivotal role in the growth of non-funded income to the Sacco. Lending grew by eight per cent from Sh23 billion in 2017 to Sh24.9 billion in 2018 while the share capital grew by 25 per cent from Sh1.2 billion in 2017 to1.5 billion in 2018.

Useki attributed the impressive performance to an aggressive growth on the loan portfolio, lending reforms and improved liquidity. Commissioner for Co-operative Development Mary Mungai, said there is the need for Saccos to embrace good governance structures so as to attract more members.

Mungai who represented Cabinet Secretary, Peter Munya, also urged the Sacco to invest in ICT and also encouraged members to take keen interest in what it does.

Rebecca Miano, the national vice chair said the Sacco’s operating model has equipped the business with added resilience to achieve the set strategic objectives, as reflected in the commendable performance in the period under review.

She said the growth in the share capital of the Sacco demonstrates a great commitment by members to the Sacco. She said branch and satellites footprints, rebranding and strategic partnerships attributed to the good performance.

Directors recommend payment of a first and final dividend of 14 per cent per share for the period ended December 2017 and interest rebates on members’ deposit of 10.5 per cent for the year under review. Total payout for the two items will be Sh2.06 billion in 2018 compared to Sh1.98 billion in 2017.

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