Tower Sacco has sustained an impressive growth trajectory cementing its place among top-performing co-operatives playing a significant role in transforming lives. When the history of Kenya’s great Saccos is written, Tower Sacco’s name will be etched in bold golden letters.
For over five years, the Sacco’s strategic growth plan has been splendid, ranking top among the fastest-growing co-operative societies and financial institutions nationally. The Sacco has become a benchmarking centre for others.
Against a sluggish economy and a high inflation rate, Tower Sacco posted exemplary overall performance for the financial year 2022, climbing up the ladder of wealthiest co-operatives in the country.
Diversified financial products and services offered at competitive rates boosted the Sacco’s loan portfolio, which grew by 20.8%. The Society disbursed loans and advances amounting to Ksh9.77 billion compared to Ksh 8.09 billion in 2021, uplifting the social-economic standards of members. The Sacco’s gross outstanding loans stood at Ksh15.2 billion at the close of the year.
The Sacco, targeting an asset base of Ksh30 billion by 2026, saw its total assets grow by 18.1% last year to reach Ksh19.57 billion, up from Ksh16.56 billion in 2021. The membership growth by 10.4% to 186,065 helped grow the Sacco share capital and members’ deposits to Ksh15.95 billion, a 19.3% growth from Ksh13.37 billion in 2021, according to financial statements presented to members during the 47th Annual General Meeting recently.
“Our members have really supported the Sacco growth. We will continue being strategic and innovative in offering our members a wide range of credit facilities at affordable rates,” said Mr John Gitundu, Sacco chairman.
It was a windfall for members who received over Ksh1.65 billion in annual earnings as dividends on shares at the rate of 20% and interest on non-withdrawable deposits at 13%. For over five years, the Sacco has consistently paid dividends at 20%.
Empowering members economically
Behind the Sacco’s towering growth are its leadership and management commitment and strategic focus to offer excellent financial solutions that empower members economically and socially. The Sacco has created over 1,300 millionaires.
Tower Sacco has greatly embraced digital banking channels, including a robust mobile banking platform with a USSD code *655#, Visa ATM cards and Sacco agents. “We have upgraded our internet banking system to allow our diaspora and local members to transact efficiently. Our alternative channels always provide a cheaper and more convenient banking option to our members,” said the Sacco chairman.
According to Mr Gitundu, the Sacco has partnered with various organizations and governments to promote economic thrift among members. These partnerships include with Micro-Enterprise Support Programme Trust to support smallholder farmers and farmers’ co-operatives with access to affordable credit and Women Enterprise Fund to support the economic empowerment of women running micro and small enterprises with Boresha Mama product.
“Our commitment is to support financial access and inclusion within the agriculture sector and fight adverse climate change through offering affordable and flexible financing,” said Mr Gitundu. He said they have entered into a memorandum of understanding with KICC to ensure dairy farmers are paid on time.
In addition, Tower Sacco partnered with the Kenya Mortgage Refinancing Company (KMRC) to fund members’ own decent homes through affordable mortgage facilities.
“Tower is growing to a big national financial institution; we are improving our customer services while ensuring that the Society remains fully compliant with all prudential ratios from the regulator,” said Patrick Njenga, Sacco’s Chief Executive Officer.
 Nyandarua Minister for Tourism, Trade, Co-operative Development and Industrialization Agnes Njunji, who represented Governor Dr Moses Badilisha during the AGM, hailed Tower Sacco for carrying the County flag high nationally. “The Sacco has transformed livelihoods in the County and beyond. We must nurture it to be the bigger national financial institution it is,” she said. Njunji urged co-operatives to fund cottage industries, value addition and agri-business.Â
“Tower Sacco is one of Nyandarua’s best exports to the rest of the country, with an estimated valuation of Ksh19.5 billion. It worth noting that the Sacco has grown from partly 125 members and a share capital of Ksh 90,000 forty-seven years ago,” she said.
 The Sacco landmark Tower Sacco Plaza in Ol’Kalou’s Central Business District has magnified its brand visibility, elevated its status and improved customer experience. President William Ruto is expected to launch the plaza this year.
Besides offering quality financial solutions, the Sacco has an extensive Corporate Social Responsibility programme to give back to the community. It is in the process of registering Tower Sacco foundation that will participate in improving education standards, poverty eradication, food security and health wellness. Every year the Sacco sponsors tens of needy students to join various secondary schools.
HELA MKONONI
GET INSTANT CASH BY DIALING *655#
HOW TO APPLY:
- Select option 3-Loan
- Select option digital loan
- Enter Amount
- Enter pin
BENEFITS
- Instant approval
- Competitive interest rate
- Loan up to 20,000
Register for Tower Mobile Banking by vising your nearest branch.
Tel: +254 723 836 421, +254 733 416 492
Hotline: +254 11 036 700
Diaspora Hotline: 0792 078 936
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