SACCOs told to strengthen governance as sector assets hit Sh1.21tn

NAIROBI, Kenya — The Kenyan government has urged savings and credit cooperative societies (SACCOs) to boost governance, tighten lending standards, and invest in secure digital systems as the sector's assets have grown to Sh1.21 trillion. This comes after the SACCO Supervision Annual Report 2025, which revealed that membership in regulated SACCOs increased to 7.87 million from 7.39 million in 2024, while total assets surged to Sh1.21 trillion from Sh1.08 trillion.

Members' deposits also grew to Sh832.74 billion from Sh749.43 billion over the same period, reflecting the expanding domestic savings mobilized through the cooperative movement.

Speaking at the Stima DT SACCO Annual Delegates Conference in Mombasa, Cooperatives Cabinet Secretary Wycliffe Oparanya emphasized that these resources, representing years of work and sacrifice, compel SACCOs to strengthen governance, protect savings, and ensure that credit supports meaningful improvements in members' lives. Oparanya stressed that growth must be supported by adequate capital, liquidity, and systems to sustain it, and public confidence depends on institutions honoring their commitments consistently and addressing weaknesses before members suffer losses or disrupted services.

He cautioned against rewarding members with attractive returns that jeopardize institutional resilience, urging SACCOs to allocate surplus earnings towards technology investments, enhanced services, and the ability to withstand economic shocks. Oparanya also encouraged SACCOs to adopt responsible lending practices by assessing borrowers' repayment capacity, monitoring loan performance, and avoiding repeated loan restructurings that might mask deteriorating credit quality.

He urged SACCOs to direct more financing toward productive activities, such as small businesses, agriculture, and housing, highlighting that cooperative credit can foster employment, household stability, and broader economic activity.

The government views cooperatives as a vital financing channel under its Bottom-Up Economic Transformation Agenda, particularly for mobilizing household savings and expanding credit access for enterprises. During the conference, Stima DT SACCO Chief Executive Officer Gamaliel Hassan echoed the call for sustainable growth, operational efficiency, and prudent risk management.

Hassan stated that Stima DT SACCO is focused on strengthening competitiveness, improving productivity, and ensuring that growth translates into tangible financial benefits for members. The SACCO aims to achieve an asset base of approximately Sh113.5 billion by 2029, as outlined in its strategic plan for 2025-2029. Hassan emphasized the SACCO's commitment to enhancing digital platforms, improving cybersecurity, and educating members on safe transactions, while expanding financial solutions spanning savings, credit, home ownership, investment, and retirement planning to meet evolving member needs.