Savings and Credit Cooperative Organizations (SACCOs) have been challenged to adopt more aggressive yet prudent financial strategies to ensure long-term sustainability and enhance member empowerment.
Industry leaders, speaking at the 4th Annual Cabinet Secretary for Cooperatives and MSMEs Consultative Forum in Naivasha, emphasized that the dual approach of expanding affordable credit and retaining capital is essential for the sector to remain a formidable driver of the national economy.
Vincent Marangu, Cooperative Banking Division Director at the Co-operative Bank of Kenya, noted that while the sector has shown resilience, there is significant room for expansion. He specifically urged SACCOs to push their annual loan growth targets from the current average of 11% to at least 15%.
“By offering more affordable and accessible credit, SACCOs can simultaneously grow their capital base and support the personal and business ambitions of their members,” Marangu stated. He added that such a strategy would secure a more robust financial future for the cooperatives and the communities they serve.
The sentiment was echoed by Daniel Marube, Cooperative Alliance of Kenya (CAK) CEO, who identified well-managed credit as a primary tool for poverty alleviation. Marube highlighted that “smarter lending” and “careful capital retention” are the twin engines required to navigate current economic challenges and propel the movement into a new era of impact.
The three-day forum, held under the theme “Shaping the Future of Cooperatives: Leadership, Innovation and Sustainable Growth,” brought together stakeholders to address emerging gaps in the sector, including the need for digital transformation and improved governance.
With the SACCO sector managing over Ksh 1.1 trillion in assets as of late 2025, the call for strategic growth comes at a pivotal time. Cabinet Secretary Wycliffe Oparanya, who officially opened the forum, has previously advocated for the consolidation of smaller cooperatives to increase competitiveness and ensure they can meet the stricter capital requirements set by the Sacco Societies Regulatory Authority (SASRA).
The forum concluded with a consensus that transparent governance and a member-centric approach to lending will be the defining factors for Kenya’s cooperatives as they seek to deepen financial inclusion and drive social progress across the country.
