Harambee SACCO Records KSh 41.29 Billion Assets Growth Amid Pressure On Liquidity, Member Retention

By Suleiman Mbatiah

Strong capital growth and improved returns have reinforced confidence in a leading cooperative, but leadership has flagged governance, liquidity constraints, and member retention as critical priorities after falling short of its promised 10 percent deposit returns in 2025.

Harambee DT SACCO Society reported steady financial expansion in 2025, with total assets rising to KSh 41.29 billion and net surplus increasing to KSh 1.67 billion, underscoring resilience despite operational and structural pressures.

The Sacco paid a 15 percent dividend on share capital but delivered 9.1 percent interest on member deposits, missing its 10 percent target and prompting renewed focus on liquidity management and earnings optimization.

The sacco’s Chief Executive Officer Dr. George Ochiri, said the institution remains financially strong but must address underlying inefficiencies to sustain growth and deliver consistent value to members across its expanding base.

“We have built strong capital and earnings momentum, but we must now fix liquidity gaps and improve member retention to deliver fully on our promises,” said Dr. Ochiri during the 2026 delegates symposium in Mombasa County.

Membership grew to 79,942 active members in 2025 from 74,991 in 2024, while dormant accounts rose to 4,910, highlighting retention challenges even as outreach and recruitment efforts continued to expand.

The Sacco increased its branch network to six, up from five, and continued investing in digital channels to improve service uptime, though expansion plans such as additional satellite offices and Nairobi branch renovations were delayed.

Loans and advances grew to KSh 34.27 billion, reflecting strong credit demand, while member deposits rose to KSh 27.56 billion, reinforcing the institution’s core funding base amid increased reliance on external borrowing.

Core capital strengthened to KSh 6.11 billion, with capital adequacy ratios improving above regulatory thresholds, including core capital to total assets at 14.8 percent and core capital to deposits at 22.2 percent.

Institutional capital, however, remained below the recommended benchmark at 7.7 percent of total assets, signaling a need for continued internal capital build-up to support long-term sustainability and absorb financial shocks.

Total revenue rose to KSh 7.21 billion in 2025, driven largely by interest income of KSh 5.59 billion, while expenses increased to KSh 3.28 billion, reflecting operational expansion and rising cost pressures.

“We delivered strong growth in loans, deposits and revenue, but cost pressures and liquidity constraints limited our ability to meet all performance targets,” Dr. Ochiri said, noting the need for tighter financial discipline.

Liquidity remained a concern, with liquid assets recovering to KSh 941 million from KSh 477 million in 2024, but still below earlier levels, reflecting strain from increased lending and delayed inflows.

The Sacco also recorded higher external borrowings at KSh 2.50 billion, alongside growing long-term liabilities of KSh 29.67 billion, indicating a more leveraged balance sheet as it pursued expansion and lending growth.

Operationally, the institution cited dependency on check-off systems for membership growth and a high rate of member exits as key risks, alongside governance gaps and slow adoption of technology in some segments.

Despite these challenges, the Sacco highlighted milestones including the opening of its Nanyuki branch, fabrication of a Kisii satellite branch, and enhanced stakeholder engagement through delegate training programs.

A notable financing initiative saw the Sacco extend a KSh 35 million loan to a member to acquire a fleet of 10 new matatus operating under SIFALINES Shuttle, supporting small business growth.

Dr. Ochiri said the institution’s strategy for 2026 to 2030 will focus on financial performance, governance strengthening, technology adoption, operational efficiency, human resource development, and branch network expansion.

“We are now ready for take-off, but disciplined governance, innovation and member-centric products will determine how far and how fast we grow,” he said, outlining the Sacco’s forward strategy.

Financial analysts say the sacco’s strategic evolution from 2019 to 2026 reflects a shift from recovery to growth to readiness to scale operations while addressing structural weaknesses identified in recent performance.