𝗛𝗮𝗿𝗮𝗺𝗯𝗲𝗲 𝗦𝗔𝗖𝗖𝗢 𝗱𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗲𝘀 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝘁𝗼 𝘂𝗻𝗹𝗼𝗰𝗸 𝗬𝗼𝘂𝘁𝗵, 𝗠𝗦𝗠𝗘 𝗺𝗮𝗿𝗸𝗲𝘁𝘀

Harambee SACCO is diversifying its product portfolio beyond conventional offerings to tap into youth and Micro, Small and Medium Enterprises (MSMEs), as shrinking formal employment compels deposit-taking cooperatives to rethink their growth strategies and reduce overreliance on salaried government workers.

Harambee SACCO National Chairman, Macloud Malonza, said during a capacity-building workshop for delegates in Mombasa that the SACCO is rolling out its 2026–2030 Strategic Plan this year, which heralds a major shift in its operational model.

The National Chairman said the SACCO posted strong results in 2025, recording growth in both assets and profitability. Membership also rose to 84,000, reflecting an increase of 5,000 members from 2024.

Over the next five years, the 57-year-old SACCO is targeting an asset base of Sh80 billion and a return to members of 15 per cent in interest on deposits and 25 per cent in dividends.

It also aims to expand its membership to 350,000 by leveraging technology, establishing a youth directorate to attract young people, and tailoring products to evolving member needs.

The Chairman noted that the implementation of International Financial Reporting Standard (IFRS) 9, which began in 2018, has increased the SACCO’s provisioning and expected credit loss ratio to 9.7 per cent, a move that has affected distribution rates. However, interest on deposits was maintained at 15 per cent, while the asset base grew from Sh38 billion to Sh41 billion.

“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,” said the National Chairman.

“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 explained that the SACCO is keen to tap into MSMEs, noting that many members retire from government service upon attaining 60 years, while recruiting new members from newly employed government officers has become increasingly difficult due to stiff competition in the financial services 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 said.

He encouraged young people to embrace a savings culture to start businesses and scale existing 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 advised.

Harambee SACCO Chief Executive (CEO), Dr George Ochiri, urged members approaching retirement not to withdraw their deposits and savings but to remain within the SACCO, citing robust products such as a medical scheme designed to cushion them in retirement.

He described last year as the best in the SACCO’s history, 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,” said Dr Ochiri.

Nairobi County Director of Cooperatives, Dolphine Aremo, said the sector has continued to register growth as regulators work to promote the development of cooperatives and strengthen public confidence in the movement.

She said Harambee SACCO is among the 77 billion shillings' worth 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 said.

She advised cooperatives to design products that resonate with the youth, noting that many prefer accessing credit facilities and financial services from the convenience of their phones.