Stima Sacco has restructured Sh450 million in loans, an equivalent to 1.5 per cent of its net lending by the end May as it seeks to cushion members from the coronavirus crisis.
The sacco, whose membership grew from 114,071 in 2018 to 131,616 last year, has offered repayment breaks of up to two months based on a case-by-case basis, as beneficiaries hit by cash flow hitches seek flexible terms.
“Our loan book currently stands at Sh30 billion. Out of this, we have restructured about 1.5 per cent,” acting chief executive Gamaliel Hassan told the Business Daily.
The society followed in the footsteps of commercial banks that renegotiated loan repayment plans with customers affected by the pandemic crisis.
Banks had restructured loans worth Sh679.6 billion or 23.4 per cent of the total loan book by the end of May.
Stima said restructuring its loan book would see its earnings shrink by about 1.5 per cent this year. It grew its net income in 2019 by 3.9 per cent to Sh881.6 million compared to Sh848.8 million in the previous year.