New branches, AI adoption as Mhasibu targets 100,000 membership
Business
By
Graham Kajilwa
| Apr 21, 2026
The government has singled out dividend payment as the biggest challenge threatening the stability of Saccos in the country, even as it insists that it has no interest in controlling the management of these entities.
Commissioner for Co-operatives David Obonyo says Saccos, in a bid to stay afloat and front a thriving image of their businesses, resort to debts to appease members with dividends.
This tradition, while highly discouraged, puts Saccos at risk of financial collapse because the money is accessed at a cost that members will eventually have to bear.
Obonyo who was speaking during the launch of Mhasibu Sacco 2026-2030 strategic plan, said the government has noted with concern the financial integrity challenges Saccos face, especially in recent years.
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He pointed out that in the last three years, two Saccos have collapsed and members are at risk of losing their entire deposits.
Such cases, he said, are the reasoning behind the proposed deposit guarantee fund (DGF).
“The government has no interest in controlling Saccos. Our policy guideline is to have self-regulation,” he said. “What we are looking at from our past experience, is to have DGF so that in case such an incident happens, members are cushioned and assured of a minimal refund.”
Obonyo said Saccos need to be honest with their members on where losses are made so that they do borrow money to appease them with double digit dividends. He noted of another trend where there is a push from senior management of Saccos, in cahoots with some board members, seeking loans to pay dividends and rebates then go under with members’ savings.
“The most serious challenge Saccos are facing in this decade is all about dividends. In your strategic plan (Mhasibu Sacco), I believe you have addressed this issue keenly so that we do not have a Mhasibu today and come next year it is in debt,” he said.
Mhasibu Sacco chair Hillary Atito said the Sacco has never at any point sought debts to pay dividends, assuring members of organic growth.
“We have grown over time and we have been able to show our performance. Our reports have been audited repeatedly and reviewed by the regulator,” he said.
In its latest strategic plan, the Sacco is banking on new branches and the adoption of artificial intelligence (AI) to grow its membership to 100,000 in the next five years.
The Sacco also targets to grow its asset base to over Sh30 billion within the same period, as indicated in its latest strategic plan.
The 2026-2030 strategic plan envisions growing assets from Sh12 billion to Sh31 billion, loan boon from Sh10 billion to Sh21 billion, and revenue from Sh1.4 billion to Sh3.65 billion.
“How will this be achieved? Our target for membership is 100,000 by 2030. With engagement today, I am convinced the 100,000 can be achieved within one or two years,” said Eunice Kanyi, Mhasibu chief executive.
Kanyi noted that during the plan period, the Sacco will upgrade its branches. Right now, she said, the Sacco operates satellite offices, which will be upgraded to branches. The Sacco will be opening new branches in Nyeri, Nakuru and Thika.
“All our processes are now fully digital,” she said. “We want to adopt AI. We have specific initiatives aligned to AI, upgrading of our system and mobile app and having the dashboard to enable us in decision making.”