Stima Sacco is seeking to raise additional capital of Kshs 500, 000,000 through the sale of shares to its members. The capital is to be raised through an initial share offer of 5,000,000 shares at the price of Kshs 100 per share and an individual can purchase a minimum of 200 shares. Those interested in participating will have the period between 11th July 2011 and 9th September 2011 to submit their applications to the society.
The sale will enable the Society to raise funds to finance the implementation of its 2010-2014 strategic plans and meet some statutory requirements as contained in the Sacco Act, 2008. This Act imposes steep capital adequacy thresholds for deposit-taking Saccos that call for a pragmatic approach to continually manage. Sasra (Saccos Societies Regulatory Authority) prudential guidelines require a Sacco to maintain minimum share capital that is proportionate to its total asset.
The sale will go forth to finance the growth and the expansion of the society as envisaged in its business plan, 2009-2014, besides alleviating the costly overreliance on external credit.
The Society’s business plan, anticipates the growth of membership from 9, 737 to 20,000 members while increasing the net loans portfolio from Kshs 5.4 billion in 2010 to Kshs 10 billion in 2014. The plan also looks forward to the growth of Stima Sacco assets from the current Kshs 6.2 billion to 12 billion in 2014.
Other areas of growth on which the business plan focuses are the growth in dividend and interest rebates from Kshs 380 Million in 2010 to over Kshs 600 million, and to increase the Society share capital from the current 9.5 million to Kshs 417 million.
Stima Sacco being a cooperative society observes the principle of one man one vote and regardless of the number of shares an individual purchases the principle will still be upheld.
African parents don't know how to say sorry.. the closest you will get to a sorry is a 'have you eaten'