Harambee SACCO is diversifying its product portfolio past standard choices to faucet into youth and Micro, Small and Medium Enterprises (MSMEs), as shrinking formal employment compels deposit-taking cooperatives to rethink their progress methods and scale back overreliance on salaried authorities staff.
Harambee SACCO Nationwide Chairman, Macloud Malonza, mentioned throughout a capacity-building workshop for delegates in Mombasa that the SACCO is rolling out its 2026–2030 Strategic Plan this yr, which heralds a serious shift in its operational mannequin.
The Nationwide Chairman mentioned the SACCO posted robust ends in 2025, recording progress in each property and profitability. Membership additionally rose to 84,000, reflecting a rise of 5,000 members from 2024.
Over the subsequent 5 years, the 57-year-old SACCO is focusing on an asset base of Sh80 billion and a return to members of 15 per cent in curiosity on deposits and 25 per cent in dividends.
It additionally goals to develop its membership to 350,000 by leveraging expertise, establishing a youth directorate to draw younger folks, and tailoring merchandise to evolving member wants.
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The Chairman famous that the implementation of Worldwide Monetary Reporting Normal (IFRS) 9, which started in 2018, has elevated the SACCO’s provisioning and anticipated credit score loss ratio to 9.7 per cent, a transfer that has affected distribution charges. Nonetheless, curiosity on deposits was maintained at 15 per cent, whereas the asset base grew from Sh38 billion to Sh41 billion.
A piece of Harambee Sacco members in attendance comply with proceedings on the primary day of a two-day coaching at Pleasure-Inn Paradise Resort, Shanzu, Mombasa, on 19 March 2026.
“We feel that growth must be sustained, but more challenges are emerging in the SACCO sector because people have to look for business opportunities, while those in formal employment are becoming fewer and fewer,” mentioned the Nationwide Chairman.
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“The challenge of dealing with people outside a common bond is also emerging. We are going to upgrade our system so that we can respond to new business segments that are coming up,” he added.
The Chairman defined that the SACCO is eager to faucet into MSMEs, noting that many members retire from authorities service upon attaining 60 years, whereas recruiting new members from newly employed authorities officers has change into more and more troublesome because of stiff competitors within the monetary companies market.
“People are retiring at a higher rate than they are joining. We have to explore alternative business lines so that we can sustain the growth trajectory we have built,” he mentioned.
He inspired younger folks to embrace a financial savings tradition to start out companies and scale current enterprises.
“The earlier you start, the better for your financial security in retirement. Remember, by the time you become non-productive, you do not know how many years you are going to live. You may live for 30 to 40 years, so ensure you do not suffer or become a burden to your children,” he suggested.
Harambee SACCO Chief Govt (CEO), Dr George Ochiri, urged members approaching retirement to not withdraw their deposits and financial savings however to stay throughout the SACCO, citing sturdy merchandise resembling a medical scheme designed to cushion them in retirement.
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He described final yr as the perfect within the SACCO’s historical past, saying it recorded its highest turnover of Sh7.5 billion and has now set its sights on hitting Sh8.1 billion in 2026.
“This year, in particular, we are going to upgrade our system. We want to be as good as any other financial institution, not just in Kenya, but in the world,” mentioned Dr Ochiri.
Nairobi County Director of Cooperatives, Dolphine Aremo, mentioned the sector has continued to register progress as regulators work to advertise the event of cooperatives and strengthen public confidence within the motion.
She mentioned Harambee SACCO is among the many 77 billion-shilling value of cooperatives in Nairobi.
“In fact, in cooperatives, we are already in Singapore. Because if you want a loan, you will get it. We do not need any other Singapore when it comes to cooperatives,” she mentioned.
She suggested cooperatives to design merchandise that resonate with the youth, noting that many want accessing credit score amenities and monetary companies from the comfort of their telephones.
By Sadik Hassan
