Stima Sacco: Inside Kenya’s Largest Savings and Credit Cooperative

Stima Sacco is the largest savings and credit cooperative society in Kenya and ranks among the largest on the African continent by asset base. Founded to serve workers in the country’s electricity sector — the name derives from the Swahili word stima, meaning electricity — it has evolved into an open-bond, deposit-taking Sacco serving members across many sectors of the economy. Its scale, financial strength and product range make it a useful lens through which to understand the broader cooperative movement that underpins financial inclusion in Kenya.

Origins in the Power Sector

Stima Sacco traces its beginnings to the 1970s, when it was established to provide savings and credit services to employees in Kenya’s electricity supply industry. Like many institutional Saccos, it began as a closed-bond cooperative, drawing its membership from a single employer base. Over the decades it progressively opened its common bond, admitting members from across the wider economy and transforming from a staff welfare scheme into a major financial institution. This transition from a closed to an open bond is a recurring theme among Kenya’s most successful Saccos, allowing them to diversify membership and reduce dependence on a single employer.

Scale and Financial Strength

Stima Sacco’s financial indicators illustrate its dominance within the sector. In its 2024 results, total assets grew by 12 per cent to about KSh 66.4 billion, supported by an 11 per cent expansion in loans and advances to roughly KSh 50.2 billion, while member deposits increased by 8 per cent to around KSh 46.7 billion. Total income rose 15 per cent year on year to approximately KSh 10.3 billion, up from KSh 9 billion the previous year, and pre-tax surplus climbed 29 per cent to about KSh 6.2 billion.

These figures place Stima Sacco at the apex of Kenya’s deposit-taking Sacco subsector. The Sacco’s consistent growth in assets, deposits and lending reflects both the depth of member loyalty and the appeal of cooperative finance as an alternative to mainstream banking for many Kenyans seeking accessible credit and competitive returns on savings.

Membership Growth

Stima Sacco’s membership base grew by 10 per cent to 220,650 members in 2024, following a 13 per cent increase the previous year. This steady expansion demonstrates how an open common bond, combined with a reputation for stability and strong dividends, can attract a broad and diversifying membership. The Sacco serves salaried employees, business owners and, increasingly, members in the diaspora who maintain savings and access credit from abroad.

Products and Services

Stima Sacco offers a wide range of savings and credit products designed for different life stages and goals. On the savings side, these include transactional accounts such as the Prime Account, goal-based products like Twiga Savings, the Junior Star Account aimed at children, the Msingi Bora Account oriented toward education expenses, and the Mustard Account designed for retirement planning. On the credit side, the Sacco provides development loans, salary advances and emergency loans, alongside business facilities such as working capital loans, asset finance and trade finance.

The Sacco has also moved into housing finance, offering mortgage products including facilities linked to the Kenya Mortgage Refinance Company and micro-mortgage options for members seeking to build or buy homes incrementally. This expansion into longer-term housing credit reflects a broader trend among large Saccos to compete directly with banks in asset financing and home ownership.

Dividends and Member Returns

A central attraction of any Sacco is the return it pays on members’ share capital and deposits. Stima Sacco declared a dividend of 16 per cent in respect of 2024, higher than the 15 per cent paid for 2023, while interest rebates on deposits were retained at 11 per cent. Competitive and consistent payouts of this kind are a key reason members commit their savings to Saccos rather than to lower-yielding alternatives, and they reinforce the cooperative principle of distributing surpluses back to members.

Regulation and Governance

As a deposit-taking Sacco, Stima Sacco operates under the prudential supervision of the Sacco Societies Regulatory Authority, which licenses deposit-taking Saccos and enforces capital adequacy, liquidity and governance standards. This regulatory framework, introduced to strengthen confidence in the sector, requires regular reporting and adherence to prudential ratios designed to protect members’ deposits. The wider cooperative sector’s contribution to the economy is also captured in national statistics compiled by the Kenya National Bureau of Statistics.

The KUSCCO Question

Stima Sacco was among the Saccos affected by financial difficulties at the Kenya Union of Savings and Credit Co-operatives, the sector’s umbrella body. The Sacco made a provision of about KSh 108 million against amounts whose recoverability from the union was in doubt. Notwithstanding this, Stima reported that its members’ value remained unaffected by the episode, which had seen a number of Saccos write down deposits and investments held with the union. The incident highlighted the importance of strong governance and prudent treasury management across the cooperative movement.

The Diaspora Dimension

Large Saccos increasingly court the Kenyan diaspora, offering savings and investment products that allow Kenyans abroad to build wealth at home, access mortgages and participate in cooperative ownership without returning physically. For diaspora members, Saccos can offer attractive returns, a familiar institutional culture and a vehicle for funding land, housing and business projects in Kenya. Digital channels and mobile platforms have made it easier for members outside the country to transact, contribute regularly and monitor their accounts, deepening the link between the diaspora and the domestic cooperative sector.

Why Saccos Matter for Financial Inclusion

Stima Sacco’s scale illustrates the broader importance of Saccos in Kenya’s financial system. Cooperatives mobilise domestic savings, extend credit to members who might be underserved by commercial banks, and recycle surpluses back into the membership through dividends and rebates. Collectively, Saccos channel a significant share of national savings and credit, supporting home ownership, education, business formation and household resilience. Monetary and financial-sector developments that shape this environment are tracked by the Central Bank of Kenya.

Conclusion

From a staff welfare scheme in the electricity sector to the largest Sacco in Kenya, Stima Sacco demonstrates how the cooperative model can scale into a major financial institution while remaining anchored in member ownership. Its robust asset base, growing membership, diverse product range and competitive returns underline both the strength of the Sacco sector and its central role in advancing financial inclusion — for Kenyans at home and in the diaspora alike.