Tower Sacco has marked 50 years of service with a renewed commitment to digital transformation, financial inclusion and expansion, setting an ambitious target of growing its asset base to KSh80 billion by 2030.
The golden jubilee celebrations brought together the Sacco’s board, management, staff, members, partners and other stakeholders to reflect on five decades of growth and chart the institution’s next phase of development.
The celebrations were led by the Board of Directors under chairman Peter Ngugi and the management team headed by chief executive officer Patrick Njenga. CIC Group chairman Dr Nelson Kuria was the chief guest.
The occasion also provided an opportunity for the Sacco to showcase its ISO certification as part of efforts to strengthen quality management, service delivery and continuous improvement.
A major highlight of the celebrations was the launch of digital loan services, allowing members to apply for and access selected credit facilities digitally without necessarily visiting a branch.
Mr Njenga said the Sacco’s journey had been defined by transformation, inclusivity and community empowerment, from its modest beginnings to its current position as a major cooperative financial institution.
He said the institution started with 15 people who shared a vision of creating a platform through which members could save, access affordable credit and improve their livelihoods.
“Over five decades, we have consistently focused on mobilizing savings, providing affordable credit, promoting savings culture, enhancing financial literacy and maintaining prudent management,” Mr Njenga said.
He thanked members for their loyalty and responsible borrowing, while recognizing successive boards and employees who had contributed to the Sacco’s growth.
“Our goal is to reach an asset base of KSh80 billion by 2030, a challenging yet achievable target,” he said.
Mr Njenga said the next phase would focus on improving service delivery, embracing technology and making services more accessible to members regardless of their location.
He added that digitalization and innovation would remain central to the Sacco’s strategy as it seeks to make services faster, easier and more efficient.
The Sacco’s history dates back to 1975, when a group of teachers began working towards establishing an institution through which they could pool their resources and access credit.
According to chairman Peter Ngugi, the Sacco was formally registered on September 15, 1976.
The beginnings were modest, with members paying an entrance fee of Sh20. In 1977, the highest loan advanced to an individual member was Sh15,000.
Five decades later, the institution has a loan book running into billions of shillings, with individual members able to access loans worth millions of shillings.
Mr Ngugi said the Sacco began paying dividends to members in 1980, a tradition that has continued over the years.
At the close of 2025, members received returns of 20 per cent on share capital and 18 per cent on share deposits, according to the chairman.
The institution has also undergone major structural and technological changes.
In 1999, it introduced Front Office Service Activity (FOSA), while in 2002 it obtained a pay code that enabled teachers to receive their salaries through the Sacco.
A major turning point came in 2010 when the Sacco opened its common bond, allowing people from different sectors and professions to join.
This was followed by rebranding in 2012, a move that significantly expanded the institution’s membership base and reach.
Mr Ngugi said investment in information and communications technology had subsequently become a major component of the Sacco’s growth strategy.
The Sacco commissioned a privately managed wide area network in May 2020, which has since become a key communications backbone for its branch network.
Twenty five of its 31 branches are currently connected to the infrastructure, representing more than 80 per cent of its branch footprint.
About 90 per cent of the network sites use green energy, according to the chairman, reflecting an effort to combine technological expansion with environmental sustainability.
The institution has also expanded its digital channels through mobile banking, USSD services, agency banking and internet banking.
Members can access services through the Sacco’s USSD platform, agency outlets and other digital channels, reducing the need for physical visits to branches.
The Sacco has also developed support for members living and working outside Kenya, enabling them to manage their financial affairs and pursue investments back home.
Mr Ngugi said the institution had digitized most of its loan services, including self guaranteed, emergency and check off loans, through its online portal.
Other products include development, premium, short and long term loans, working capital facilities and loan consolidation services.
The Sacco is also strengthening its investment and wealth creation products while expanding mortgage financing through partnerships, including with the Kenya Mortgage Refinancing Company.
Through Tower Tech Insurance, it is also seeking to expand insurance solutions available to members.
Mr Ngugi said the Sacco was exploring the introduction of group funeral expense insurance for members to cushion families against the financial burden that often accompanies the loss of a loved one.
The celebrations also attracted representatives from the wider cooperative movement and financial sector.
A representative of the Kenya Teachers Circle Association (KETSA) described Tower Sacco as one of the association’s foundational members, noting its contribution to the development of the wider cooperative movement.
The representative said Tower Sacco’s members and leaders had participated in KETSA’s governance structures and helped shape the association’s direction and priorities.
“Tower Circle holds a special place within KETSA as one of the foundational members of the association,” he said.
He said the Sacco’s 50 year journey demonstrated what could be achieved through discipline, resilience, innovation and shared responsibility.
Equity Bank also congratulated the Sacco on the milestone, with its representative highlighting the partnership between the two institutions in areas including digital transformation, liquidity support, investment solutions and capacity building.
The representative said the cooperative model had demonstrated the power of collective effort in improving members’ economic wellbeing and contributing to national development.
He challenged members and leaders to maintain the momentum as the Sacco pursues its KSh80 billion asset target.
“The KSh80 billion the CEO and board chairman have spoken about is possible and achievable,” he said, pledging continued support from the bank.
Mr Njenga said the institution’s future would not only be measured by its financial growth but also by its social impact.
He said Tower Sacco would continue supporting bright but needy students and empowering communities as part of its commitment to transforming lives.
The CEO said the values of integrity, trust, service, innovation and transformation had guided the institution for five decades and would remain central to its future.
For the Sacco’s leadership, the golden jubilee is therefore both a celebration of its history and a launchpad for its next chapter.
“50 years ago, a seed was planted. Today, we stand beneath its shade, and tomorrow, we will plant new seeds for future generations,” Mr Njenga said.
As Tower Sacco enters its sixth decade, its leadership says the focus will be on expanding access, deepening digital services, strengthening member welfare and building an institution capable of serving generations to come.
The golden jubilee, they said, marks not the end of a journey but the beginning of another phase of growth, innovation and greater impact.
