Stima becomes first large tier Sacco to offer Shariah-compliant products

By Flavia Otieno

Stima Deposit-Taking Sacco is now Shariah-compliant. The Sacco recently launched Shariah-compliant products in response to diverse members’ needs.

Dr Gamaliel Hassan, the Sacco Chief Executive Officer, said after customer segmentation, they understood better their members’ needs enabling them to develop products that will positively impact their customers with satisfaction.

He said they developed new products under Islamic finance principles such as integrity, trustworthy and upholding values of good governance.

The products are open to all Sacco members regardless of their religion and highlight the financial institution’s effort of empowering members for life.

“The new products are a demonstration that customers are at the centre of our service delivery,” said Dr Gamaliel.

The Sacco is the newest entrant in Islamic financing, which is its next frontier as it strives to deliver quality services and redefine financial wellness.

Co-operatives Principal Secretary Ali Noor lauded the Sacco for being the first large Sacco to introduce shariah-compliant products. He urged the management to demystify the Islamic Finance principles through customer sanitization outreach programs.

“I am happy to hear that the Sacco has already trained a number of staff on Islamic Banking,” he said.

Recently, a South African firm, Global Credit Rating (GCR), affirmed Stima DT Sacco stable outlook for outstanding governance and effective funding structure.

 The DT Sacco was rated stable in the recent GCR ratings, with the agency affirming its long and short-term issuer ratings of BB(KE) and B(KE), respectively.

The positive ratings reflected its stable funding structure, intermediate capitalization, adequate liquidity, and improved governance. 

GCR latest noted that the Sacco had sustained a moderate risk position and a limited competitive position in the context of the broader banking/financial institutions sector.

Sacco Societies Regulatory Authority (SASRA) ranks Stima DT Sacco as the second-largest deposit-taking cooperative society with over 140,000 members and assets of Ksh 41billion.

Meanwhile, the PS noted that the government had initiated several measures to support the cooperative movement. He said the cabinet had approved the establishment of Central Liquidity Funds and the Share-technology platform. 

The government is also operationalizing the Deposit Guarantee Fund to protect members’ savings when societies collapse.

The PS revealed 250 non-deposits taking Saccos with deposits above Ksh 100 million will now be under the watch of the Sacco Societies Regulatory Authority (SASRA).

The task force appointed by the Cabinet Secretary to fast-track implementation of the National Co-operative Policy is concluding its assignment, and it is expected to give recommendations that will overhaul co-operative management,” said Noor.