KSC SACCO Hits Sh501 Million Asset Mark as It Embraces Technology and Expands Member Returns
Karura Community Savings ( KSC) SACCO held its 8th Annual General Meeting on Saturday in Nairobi, unveiling strong financial growth, improved loan performance, and a renewed push toward digital transformation.
The meeting, held at the Sacco’s offices behind Rosslyn Riviera Mall, presented the 2025 audited financial results, dividend declarations, 2026 budget projections, and board updates, offering members a comprehensive review of the institution’s performance and governance.
Assets Cross Half-Billion Mark
Speaking during the AGM meeting, Chief Executive Officer Gideon Gitonga Kigo said the Sacco recorded a historic milestone, with total assets growing to Sh501 million, up from just Sh1 million when the cooperative was founded about eight years ago.
Revenue rose sharply to nearly Sh74 million, almost doubling the previous year’s earnings, reflecting what management described as sustained member confidence and expanding financial services.
Dividend rates remained stable at 8 percent on shares and up to 15 percent on deposits, but actual payouts increased due to the Sacco’s enlarged asset base.
Loan Quality Improves
According to the report, the Sacco reported a significant reduction in non-performing loans (NPLs), aligning with broader sector trends highlighted by the Sacco Societies Regulatory Authority (SASRA).
NPLs dropped from 19.5 percent to 9.5 percent, with the institution targeting the regulatory benchmark of 5 percent.
Management attributed the improvement to enhanced credit monitoring and a gradual shift toward collateral-backed lending, which now accounts for about 85 percent of the loan book.
Officials noted that changing social and economic dynamics have made traditional guarantor-based lending less practical, prompting SACCOs to adopt more flexible security models.
Technology at the Core of Growth
KCS Sacco emphasized its transition into a fully technology-driven institution, including the launch of an AI-powered call centre developed in partnership with Safaricom to improve customer engagement and accessibility.
The Sacco also migrated its core banking infrastructure to Microsoft following a system disruption last year, enabling broader integrations, mobile services, and improved digital resilience.
The digital platform has already expanded the Sacco’s reach beyond Kenya, with members accessing services remotely, including one recognised during the AGM from Ohio in the United States.
Strong Capital and Compliance Position
According to the leadership, KCS Sacco remains well above regulatory thresholds, with a capital adequacy ratio of about 13 percent, surpassing the required 10 percent. Liquidity and institutional capital levels also exceeded statutory minimums, signalling financial stability.
Chairman Epainito Chahale credited the Sacco’s growth to strong governance, member trust, and prudent management, noting that compliance with regulatory standards remains a key priority as the cooperative seeks full certification under evolving sector rules.
Community Investment and Member Focus
Beyond financial performance, the Sacco highlighted its community outreach, including scholarships for needy students and support for local youth sports initiatives, funded from annual surpluses.
Looking ahead, KCS Sacco plans to grow membership, increase investments, and deepen digital services to enhance returns while maintaining strict oversight and accountability.
“Our focus is to remain credible, compliant, and responsive to members’ needs while leveraging technology to expand opportunities,” the leadership said.
