Stima Sacco bets on insurance brokerage
Business
By
Esther Dianah
| Feb 13, 2026
Stima DT Savings and Credit Cooperative Society Limited (Stima Sacco) has converted its insurance arm into a fully licensed brokerage, giving it freedom to shop the market rather than sell for a single insurer.
The Sacco announced that the conversion to Mpawa Insurance Brokerage, a fully-fledged insurance subsidiary, marks a shift to financial cooperatives are evolving beyond savings and loans into full service financial ecosystems.
The transition of the agency into a brokerage was approved by the Member Value Shareholders as part of a wider revenue diversification strategy.
At the launch, it was noted that while the previous agency model limited the subsidiary to specific insurance partners, the new brokerage license grants Mpawa the legal autonomy to represent the client rather than the insurer.
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Stima Sacco CEO Gamaliel Hassan, said insurance business is critical to supporting the Sacco's mandate of offering savings and credit solutions.
Dr Hassan explained that the brokerage subsidiary will not underwrite risks directly but will acquire and transfer insurance business to underwriters for a fee, ensuring the Sacco avoids the heavy capital requirements associated with primary underwriting.
The new wing which offers immediate benefits to Stima Sacco’s over 241,000 members and the general public, seeks to eliminate agent interference and biased recommendations and instead focus on the client's specific needs.
Further, it bolsters market competitiveness and act as a professional advocate for clients during the claims process, ensuring fair treatment from insurers.
“Mpawa will provide expert risk assessment to identify coverage gaps for both retail and SME clients,” Hassan said.
Incorporated in 2018, Mpawa Insurance Agency has since demonstrated robust growth, increasing premiums written from Sh147 million in 2019 to Sh267 million in 2021.
Backed by Stima Sacco’s asset base of Sh75.27 billion and a liquidity ratio of over 90 per cent, Hassan said the new brokerage is capitalised to compete in the regional market.
Hassan revealed that Stima Sacco’s loan portfolio on deposits currently stands at about Sh60 billion.
“We then came to a realisation that there was an opportunity somewhere that we were missing,” he said, adding that this informed their journey into non funded income.
Kenya Power Managing Director and CEO Joseph Siror, who also doubles up as the National Chairman of Stima DT Sacco said that the low penetration of insurance can be pegged on the lack of trust on insurers by the general public.
“The foundation of Saccos gives a lot of trust, an opportunity for saccos to develop insurance products around the trust element, which has been for long the biggest impediment for penetration in the insurance sector,” Siror said.