Stima SACCO Loan Interest Rate: Current Rates, Charges and How They’re Calculated

Stima SACCO is a licensed deposit-taking SACCO in Kenya, originally formed to serve employees in the electricity/energy sector but now open to the wider public. Loan interest rates are one of the most important things to check before borrowing, because they determine how much you actually pay back on top of the amount you borrow, and Stima SACCO does not charge one single rate across all its loans. Instead, each loan product has its own rate, calculated on a reducing balance basis, and most rates are quoted as an annual percentage.

This article explains the interest rates published for Stima SACCO’s main loan products, how reducing balance interest is actually calculated, what other charges apply on top of interest, and what you should confirm with the SACCO before you borrow.

Stima SACCO loan interest rates by product (as published August 2026)

Stima SACCO reviews its loan products from time to time and publishes a “credit product review” table on its official website. As of August 2026, the published annual interest rates were:

Loan product	Interest rate	Basis	Loan tenor	Notes
Normal Loan	12% p.a.	Reducing balance	Up to 60 months	Amount tied to a multiple (x4) of the member’s Alpha deposits
Premium Loan	13% p.a.	Reducing balance	Up to 96 months	Amount tied to a multiple (x5) of Alpha deposits
Mwangaza Loan (Scheme)	13.9% p.a.	—	Up to 78 months	Max Ksh 5 million; for members on a formal check-off/scheme arrangement
Mwangaza Loan (non-scheme)	14% p.a.	Reducing balance	Up to 48 months	Max Ksh 5 million
SOSA Loan	15% p.a.	Reducing balance	Up to 24 months	Amount tied to a multiple (x4) of Alpha deposits
Make Over Loan	18% p.a.	Reducing balance	Up to 48 months	Max Ksh 1,000,000, tied to the value of the item being financed
Funika Loan	1% per day	—	Up to 30 days	Max Ksh 15,000; a very short-term, high-cost facility, structurally different from the annualised loans above

Two other rates are worth knowing about because they apply to specific, separately administered products rather than the general credit product table:

• Mortgage (KMRC-linked) loans: the mortgage facilities page quotes an interest rate of 9.5% p.a. on a reducing balance basis for members buying property under the Kenya Mortgage Refinance Company (KMRC) arrangement.
• Makaazi Poa (micro-mortgage) loan: the same page quotes 9% p.a. on a reducing balance basis, and this product is restricted to first-time homeowners, with a loan ceiling of Ksh 10.5 million, a tenor of up to 25 years, and minimum deposit and share requirements.
• Asset finance/car loan promotions: the SACCO has advertised asset financing (for example, vehicle purchase) at rates such as 12.75% p.a. on reducing balance during specific promotional periods (such as an “Automark” open day). Promotional rates are usually time-bound, so don’t assume a promotional rate you saw advertised is still running — confirm with Stima SACCO directly.

Stima SACCO’s homepage also advertises loans “as low as 1% per month on reducing balance” as a general marketing statement, without tying that figure to a named product in that spot. Because the SACCO does not specify which exact product this applies to on that particular page, do not treat 1% per month as the rate you will automatically get — ask the SACCO which product carries that rate and what conditions attach to it.

A word of caution on the rates above: SACCOs revise loan interest rates periodically depending on their cost of funds, the interest rate environment set by the Central Bank of Kenya, and their own board decisions. The rates in the table were published on Stima SACCO’s official website as at August 2026. Before you apply, ask your branch or relationship officer, or check the SACCO’s website, to confirm the rate that applies to your specific product at the time you borrow.

Why the rate isn’t the same for every loan

A common mistake borrowers make is assuming “Stima SACCO’s interest rate” is a single number. It isn’t. The rate depends on which loan product you’re applying for, because each product is designed for a different purpose and carries a different risk profile for the SACCO:

• Longer-tenor, larger loans tied to your savings (like the Normal and Premium loans) tend to carry the lowest rates, because they are backed by a multiple of your own Alpha deposits, which gives the SACCO built-in security.
• Shorter-tenor or asset-specific loans (like SOSA or Make Over) carry higher rates, partly reflecting shorter recovery periods and different risk and administrative considerations.
• Very short-term facilities (like Funika, charged at 1% per day) are priced completely differently — as a daily rate rather than an annual one — because they are designed for quick, small-value borrowing rather than long-term financing.

This means the “best” rate on paper isn’t automatically the best loan for you. A Normal Loan at 12% p.a. sounds cheaper than a Funika loan at 1% per day, but if you only need Ksh 10,000 for five days, the Funika loan may cost you far less in absolute shillings than opening a long-term facility for the same short-term need — while a Normal Loan is clearly the more economical choice if you’re borrowing a large sum over several years.

What “reducing balance” actually means

Nearly all of Stima SACCO’s main loan products charge interest on a reducing balance basis. This means interest is calculated each period only on the loan amount you still owe — not on the original amount you borrowed. As you make repayments, your outstanding balance shrinks, and so does the amount of interest charged in the following period.

This is different from a “flat rate,” where interest is calculated once on the full original loan amount and stays the same for every instalment, even as the balance falls. Reducing balance is generally cheaper for the borrower over the life of the loan, because you stop paying interest on money you’ve already repaid.

Illustrative example (not an actual Stima SACCO offer):

Suppose you borrow Ksh 200,000 at 12% p.a. reducing balance, repayable over 12 months.

• In month 1, interest is calculated on the full Ksh 200,000 outstanding. At 12% per year, the monthly rate works out to roughly 1% per month, so interest for that month is approximately Ksh 2,000 (1% of Ksh 200,000).
• Your instalment that month combines this interest plus a portion of the principal, say Ksh 15,000, bringing your outstanding balance down to Ksh 185,000.
• In month 2, interest is now calculated only on the reduced balance of Ksh 185,000 — roughly Ksh 1,850 — rather than on the original Ksh 200,000.
• This continues every month: as the balance shrinks, so does the interest portion of each instalment, while a growing share of each instalment goes toward paying down the principal.

This is illustrative math to explain the mechanism, not a quote of what your actual instalment would be. Your real monthly repayment depends on the exact interest rate for your loan product, the tenor you choose, and how the SACCO’s amortisation schedule is structured. Stima SACCO publishes a loan calculator on its website that lets you enter a loan amount, an interest rate and a repayment period to get an estimated monthly repayment and total interest — useful for a rough guide, though the SACCO itself notes the results are “an approximate guide only,” not a firm offer.

Read also: How to Transfer SACCO Membership in Kenya: Shares, Deposits & Exit Process

Charges beyond the interest rate

The interest rate is not the only cost of a Stima SACCO loan. Based on information published for at least one loan product on the official website, borrowers should also expect:

• A processing fee — one product page quotes 0.75% of the loan amount plus excise duty.
• An insurance fund contribution — the same page quotes 0.75% of the loan amount, which typically goes toward a credit life or loan protection insurance fund that covers the outstanding balance in case the borrower dies or is permanently disabled before the loan is repaid.

These specific percentages were published in connection with one particular loan product rather than confirmed as a blanket charge across every product in the table above, so treat them as an example of the type of additional cost you should expect rather than a guaranteed figure for every loan. Ask for a full, itemised cost breakdown — interest rate, processing fee, insurance/loan protection charge, and any other deduction — before you sign a loan application, and ask whether these charges are deducted upfront from your disbursement or added to what you repay.

What determines how much you can borrow

Interest rate aside, the size of loan you qualify for at Stima SACCO is generally tied to one of two things, depending on the product:

1. A multiple of your Alpha deposits. Several products (Normal, Premium, SOSA, Working Capital, Plot Financing, Emergency School Fees) express the maximum loan as a multiplier of your Alpha deposit savings — for example, “4X” or “5X” your Alpha deposits. The more you have saved in that account, the larger a loan you can typically access under those products, up to the product’s own ceiling.
2. A fixed maximum shillings figure, regardless of your savings — for example, Ksh 1,000,000 for Make Over, or Ksh 15,000 for Funika.

Share capital is separate from your Alpha deposits. It represents your ownership stake in the SACCO as a cooperative, rather than a savings balance you can freely withdraw. Stima SACCO’s own FAQ notes that a member must hold the minimum required share capital at the time of applying for a loan — so having enough in Alpha deposits alone is not sufficient if your share capital falls short of what’s required.

Basic eligibility before interest rates even matter

Before any interest rate applies to you, you first need to qualify to borrow at all. According to Stima SACCO’s published FAQ:

• Individual members generally need at least three months of membership before they can apply for a loan.
• Corporate members generally need at least six months of membership.
• You must meet the specific requirements of the loan product you’re applying for (for example, minimum deposit contributions, which vary by product).
• You must hold the applicable minimum share capital at the time of application.

Beyond these general points, requirements can vary meaningfully from one loan product to another — for instance, minimum deposit contributions differ across products, and asset-backed or mortgage products carry their own age limits, employment conditions and collateral requirements. Confirm the exact requirements for the specific product you want with the SACCO before applying.

Stima SACCO loan vs a typical bank loan: what the rate comparison misses

Kenyans sometimes compare a SACCO’s quoted annual rate directly against a bank’s quoted annual rate and assume the lower number wins. Two things are easy to overlook when doing that:

• Multiplier-based products effectively require you to have savings first. A Normal Loan’s ceiling depends on your Alpha deposits, so unlike an unsecured bank personal loan, you generally can’t access the maximum multiple without having built up savings in the SACCO over time.
• Total cost includes fees, not just the headline rate. A slightly lower annual rate can still work out more expensive once processing fees, insurance/loan protection charges and the loan tenor are factored in — and vice versa. Always ask for the total cost of credit (sometimes called the Annual Percentage Rate or all-in cost) rather than comparing headline interest rates alone.

Common mistakes to avoid

• Assuming one rate applies to every Stima SACCO loan. As shown above, rates range from 9% (mortgage) to 18% p.a. (Make Over) to 1% per day (Funika), depending entirely on the product.
• Confusing a promotional or marketing rate with your product’s standard rate. Advertised rates tied to a specific campaign (like a car-loan open day) may not be the rate that applies outside that promotion, or after the promotion period ends.
• Ignoring processing fees and insurance/loan protection charges when budgeting for a loan, then being surprised that the amount disbursed is lower than the amount applied for.
• Not checking your available share capital before applying, only to have the application delayed or rejected because the minimum share requirement for that product isn’t met.
• Using an old, previously seen interest rate from a blog post, forum, or an outdated printout, instead of confirming the current rate directly with the SACCO before signing.

Frequently asked questions

What is Stima SACCO’s current loan interest rate? There isn’t a single rate — it depends on the loan product. As published on the SACCO’s website as at August 2026, rates range from about 12% p.a. (Normal Loan) up to 18% p.a. (Make Over Loan) on a reducing balance basis, with the short-term Funika loan priced separately at 1% per day, and mortgage-linked products priced lower, at around 9–9.5% p.a. Confirm the exact current rate for your chosen product with the SACCO.

Are Stima SACCO’s interest rates fixed or can they change? SACCOs periodically review loan interest rates, so a rate you see today may be revised in future. Always confirm the applicable rate at the point you apply, not from an old source.

Is Stima SACCO’s interest calculated on a reducing balance? Yes, for the main credit products in the table above, interest is stated as being calculated on a reducing balance basis, meaning you pay interest only on the outstanding loan balance, not the original amount, as you repay.

Are there charges in addition to the interest rate? Yes. Based on information published for at least one loan product, expect a processing fee (quoted as 0.75% plus excise duty on that product) and an insurance fund contribution (quoted as 0.75% on the same product). Ask the SACCO to confirm the exact fees for your specific loan product, since these can differ by product.

Does my SACCO savings affect the interest rate I get? Your Alpha deposits primarily affect how much you can borrow (through the loan multiplier), rather than the interest rate itself, based on the published information. If you’re told your savings history affects your rate specifically, ask the SACCO to explain how, since this isn’t stated as a general rule in the published product table.

Is Stima SACCO regulated? Yes. Stima SACCO is licensed by the Sacco Societies Regulatory Authority (SASRA) as a deposit-taking SACCO and has appeared on SASRA’s published list of licensed deposit-taking SACCOs, including the list gazetted for the 2026 licensing year. You can verify current licensing status directly on SASRA’s website.

Before you apply: what to confirm with Stima SACCO

Because rates, fees, and product terms can be updated, treat this article as a starting point for research rather than a final quote. Before applying for any loan, ask Stima SACCO directly (in person, by phone, or through their official channels) to confirm:

• The exact current interest rate for the specific loan product you want
• Whether that rate is reducing balance or another calculation method
• All fees and charges that will apply — processing fee, insurance/loan protection charge, and any others
• Your maximum eligible loan amount based on your current Alpha deposits and share capital
• The exact repayment period and monthly instalment for the amount you want to borrow
• What happens if you miss a repayment or want to repay early

Stima SACCO does not guarantee loan approval, and eligibility and final loan terms are always subject to the SACCO’s own assessment of each application.

Read also:

• How to Transfer SACCO Membership in Kenya: Shares, Deposits & Exit Process
• What Is BOSA in a SACCO? Meaning, Savings & Loans Explained
• How to Withdraw Money from a SACCO in Kenya: Process and Requirements
• How to Leave a SACCO in Kenya: Withdrawal Process and Getting Your Money Back