NAIROBI , Kenya, Oct 29 — Cooperatives Cabinet Secretary Wycliffe Oparanya has urged savings and credit cooperative societies (SACCOs) to strengthen governance, tighten lending standards and invest in secure digital systems as the sector’s assets rise to Sh1.21 trillion.

Oparanya said the growth in savings and membership increases the responsibility of SACCO leaders to protect members’ funds, maintain financial stability and ensure that expansion translates into better services and sustainable returns.

According to the SACCO Supervision Annual Report 2025, membership in regulated SACCOs increased to 7.87 million from 7.39 million in 2024, while total assets rose to Sh1.21 trillion from Sh1.08 trillion.

Members’ deposits also increased to Sh832.74 billion from Sh749.43 billion over the same period, highlighting the growing pool of domestic savings mobilised through the cooperative movement.

“These resources represent years of work and sacrifice. Their growth places a greater obligation on all of us to strengthen governance, protect savings and ensure that credit supports meaningful improvements in members’ lives,” Oparanya said during the Stima DT SACCO Annual Delegates Conference in Mombasa.

“Growth must be supported by the capital, liquidity and systems needed to sustain it. Public confidence depends on institutions honouring their commitments consistently and addressing weaknesses before members suffer loss or interrupted services.”

The Cabinet Secretary called on SACCO boards and management teams to balance returns to members with the need to build reserves and maintain sufficient financial capacity to meet obligations.

He warned against distributing attractive returns at the expense of institutional resilience, saying surplus earnings should also support technology investments, improved services and the capacity to withstand economic shocks.

Likewise, he  urged SACCOs to adopt responsible lending practices by assessing borrowers’ repayment capacity and monitoring loan performance, while avoiding repeated loan restructuring that could conceal deteriorating credit quality.

He encouraged institutions to channel more financing towards productive activities, including small businesses, agriculture and housing, arguing that cooperative credit could support employment, household stability and wider economic activity.

The remarks come as the government positions cooperatives as a key financing channel under its Bottom-Up Economic Transformation Agenda, particularly in mobilising household savings and expanding access to credit for enterprises.

At the same conference, Stima DT SACCO Chief Executive Officer Gamaliel Hassan said the institution was focusing on sustainable growth, operational efficiency, stronger revenue streams and prudent risk management to improve value for members.

“Our focus is on sustainable growth, stronger revenue streams, operational efficiency and prudent risk management. We are committed to strengthening our competitiveness, improving productivity and ensuring that our growth translates into meaningful financial benefits for our members,” Hassan said.

Stima DT SACCO reported assets of approximately Sh75.27 billion in 2025 and is targeting Sh113.5 billion under its 2025–2029 strategic plan.

Hassan said the SACCO would continue improving its digital platforms to enhance convenience and accessibility, while strengthening cybersecurity and educating members on safe transactions.

The institution also plans to develop financial solutions spanning savings, credit, home ownership, investment and retirement planning as it responds to members’ changing needs.

Oparanya challenged Stima’s board and management to translate the strategic plan into measurable annual targets, with delegates expected to scrutinise financial results, loan quality, service standards and member satisfaction.

He also called for greater transparency in procurement, recruitment, lending and investment decisions, alongside timely action on audit recommendations and the disclosure of conflicts of interest.

The Cabinet Secretary said SACCOs should also develop products suited to young people, women entrepreneurs and small-business owners, while expanding financial literacy to help members make informed borrowing and savings decisions.