Karura Community SACCO Hits KSh 501 Million in Assets, Doubles Revenue and Cuts Loan Defaults

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By Irene Mwende 

Karura Community SACCO has recorded remarkable growth, surpassing performance expectations and achieving historic financial milestones, Chief Executive Officer Gitonga Kigo announced during the Sacco’s Annual General Meeting (AGM).

Speaking after the meeting, Kigo described the past financial year as one of the strongest in the Sacco’s eight-year history, marked by significant expansion in assets, revenue growth, improved loan performance, and enhanced technological adoption.
Assets Hit Half-Billion Mark

The Sacco’s total assets reached a historic KSh 501 million, crossing the half-billion mark for the first time since its establishment.
“As a founder member, I remember when our asset base stood at just KSh 1 million. Today, we are talking about half a billion. This is a major milestone,” Kigo said.

Revenue performance also improved significantly, rising to approximately KSh 74 million, nearly doubling the previous year’s earnings.
Despite maintaining dividend rates at 8% on deposits and 15% on share capital, the payout value increased due to the Sacco’s expanded financial base.

Non-Performing Loans Drop Sharply
The Sacco recorded a significant reduction in non-performing loans (NPLs), dropping from 19.5% to 9.5%, aligning with improved sector performance reported by the Sacco Societies Regulatory Authority (SASRA).

“Our target is to reach 5%, which is the regulator’s recommended rate,” Kigo noted.
He attributed the improvement to enhanced credit monitoring and a shift toward collateral-backed lending. Currently, approximately 85% of the loan book is secured by collateral, reflecting changing member preferences and risk management strategies.

Technology Driving Expansion
Reaffirming its identity as a technology-driven cooperative, the Sacco has rebranded to KCS SACCO and digitized its services to enhance accessibility and efficiency.

The Sacco launched an AI-powered call center in partnership with Safaricom to improve member communication and service delivery.
Additionally, it migrated its core banking system to Microsoft infrastructure after experiencing system downtime with a previous provider.
“The new system allows integration with mobile banking, USSD services, banks, and future digital platforms,” Kigo said. “Technology is central to our growth and service delivery.”

The Sacco’s digital transformation has enabled members outside Nairobi — including those in the diaspora, such as a member recognized from Ohio, USA — to access services remotely.

Strong Capital and Regulatory Compliance
Kigo assured members of the Sacco’s financial stability and regulatory compliance:
Capital adequacy ratio: 13% (above the 10% requirement)
Institutional capital: 47%
Liquity and other prudential ratios: above regulatory thresholds
“Our ratios surpass regulatory requirements, demonstrating that KCS is financially secure,” he said.

Lessons from System Disruptions
Kigo also addressed last year’s system outage caused by a previous service provider, acknowledging the disruption experienced by members.
The Sacco responded by transitioning to a more resilient and integrated platform, which now supports expanded digital services and partnerships.

Looking Ahead
With strong financial performance, improved loan quality, and continued investment in technology, Karura Community SACCO is positioning itself for sustained growth and expanded member services.
Kigo emphasized that innovation, prudent lending, and member trust will remain central to the Sacco’s future success.

“As the world changes, SACCOs must adapt. By embracing technology and sound financial practices, we are building a resilient institution for our members,” he said.

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