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Oct. 12 (Bloomberg) -- Stima Sacco Ltd., Kenya’s fourth- biggest credit union, said it received 43 percent more bids than the 500 million shillings ($5 million) worth of stock on offer in a sale to existing shareholders.
The credit cooperative, which sold 5 million shares at 100 shillings each between July 11 and Sept. 9, received applications worth 713 million shillings, Chairman Joseph Njoroge told reporters in the capital, Nairobi.
“We are the first sacco to have mobilized funds from our members in terms of shares,” said Njoroge, who is also the managing director of Kenya Power Ltd., the country’s sole electricity distributor. The credit union currently has no plans to list on the stock exchange, he said
Savings and credit cooperatives, known as saccos, account for about one-third of savings in East Africa’s biggest economy. Deposit-taking saccos had 171.3 billion shillings of assets at the end of 2010, while another 3,756 cooperatives that don’t collect deposits had assets of 39 billion shillings, according to the Sacco Societies Regulatory Authority.
Savings held by the saccos have risen at an average pace of 20 percent annually over the past five years, the authority said in March.
--Editors: Paul Richardson, Ana Monteiro.
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