Tower Sacco has set its sights on an asset base of Sh80 billion by 2030 as it expands its branch network, accelerates digital services and rolls out new products aimed at deepening financial inclusion among its growing membership.
The Sacco disclosed the ambitious growth strategy during a Special General Meeting held on Saturday at Ol’Kalou Catholic Grounds in Nyandarua County, where members were presented with the institution’s financial performance and proposed 2027 budget.
Chairman Peter M. Ngugi said the Sacco had remained resilient despite sluggish economic activity that had affected the pace of savings and uptake of credit facilities in different regions.
He said the institution would continue mobilising savings and providing affordable credit while supporting members in areas such as housing, land ownership, food security, healthcare, education, entrepreneurship, environmental conservation and asset acquisition.
“Our strategic plan is anchored on attaining an asset base of Sh80 billion by 2030,” Mr Ngugi said in his report to members.
The Sacco recorded significant growth across key performance indicators during the eight months to August 31, 2026.
Its loan portfolio increased from Sh25.48 billion at the end of August 2025 to Sh29.26 billion in August this year, representing a 15 per cent increase.
Member deposits and share capital rose by 19 per cent from Sh27.82 billion to Sh33.14 billion, while loan disbursements during the eight months increased by 21.7 per cent from Sh11.24 billion to Sh13.67 billion.
Membership also grew from 328,401 to 377,690, an increase of 49,289 members or 15 per cent.
The Sacco’s surplus rose by 20 per cent from Sh2.23 billion to Sh2.68 billion over the same period.
Mr Ngugi attributed the membership growth partly to sustained member education, public sensitisation and referrals by existing members.
He urged members to make greater use of Sacco products, saying the institution was also making it easier for new customers to join through its internet banking portal.
The Sacco is also preparing to widen its physical presence following feasibility studies conducted in four markets Kenol, Eldoret, Kajiado and Mombasa.
Mr Ngugi said the studies had established that the markets were suitable for expansion and asked members to approve the opening of the new branches sequentially.
Kitengela in Kajiado County and Mombasa will be prioritised, followed by Kenol and Eldoret.
He said the expansion had been driven by demand from members already living and working in the areas and would increase the Sacco’s visibility, membership and accessibility.
The proposed expansion comes as Tower Sacco marks 50 years of operations.
Members last week celebrated the institution’s Golden Jubilee, reflecting on its growth from a small cooperative organisation into a financial institution with hundreds of thousands of members and a multi billion shilling loan portfolio.
Mr Ngugi said the anniversary had provided an opportunity to reflect on the Sacco’s contribution to members and communities over five decades.
He cited the institution’s education scholarship programme as one of its social investments.
The programme, launched in 2022, has so far supported 33 students from needy backgrounds, with the first group of 13 students now joining universities and tertiary institutions under full scholarships through the Sacco’s Environmental, Social and Governance programme.
The Sacco is also accelerating digitisation, with the chairman saying 99 per cent of deposits and withdrawal transactions were now being conducted through digital platforms.
Members can transact through the USSD service *655#, Paybill number 506900 and the Tower Sacco mobile application.
The digital push has also been extended to lending, with the T-Xpress mobile loan product disbursing Sh181 million in the first eight months of the year.
Other products, including normal, Vuka, emergency, dividend advance, Mapato and salary advance loans, have also been digitised, with additional products being worked on.
Through the Tower Sacco App, members can check their loan eligibility, apply for credit and, where necessary, seek guarantors online.
Mr Ngugi said physical loan application forms would continue to operate alongside the digital platform during the transition period.
“This is convenient and seamless to both the Sacco and the member,” he said, urging members to embrace the technology.
The Sacco has also attained ISO 9001:2015 certification, a milestone the chairman said demonstrated its commitment to improving its systems, processes and service delivery.
He said the certification followed verification by an independent third party auditor and represented a major step in aligning the institution’s operations with internationally recognised management standards.
Tower Sacco was also recognised during the International Co-operatives Day celebrations held in Nairobi on July 4.
It emerged first as the Most Improved Deposit-Taking Sacco among employer-based Saccos with assets of more than Sh30 billion.
It was also ranked second in risk management and efficiency and third in technology optimisation in the same category.
Members were also introduced to a new last-expense insurance scheme developed by Tower Sacco in partnership with CIC Insurance.
The scheme targets premium members who were previously not covered and is expected to take effect on January 1, 2027.
Under the proposed arrangement, members will pay an annual premium of Sh1,200.
The cover provides Sh100,000 for the principal member and another Sh100,000 for one spouse in the event of accidental, illness or natural death.
The proposal generated interest among members, with one participant suggesting that the benefit for the principal member be increased to Sh200,000.
The chairman said the product was intended to reduce the financial burden families face during bereavement and provide members and their spouses with a dignified send off.
The meeting also provided an opportunity for members to seek clarification over proposed changes in the cooperative sector, particularly the planned establishment of a Central Liquidity Fund.
Responding to concerns that Sacco deposits could be channelled into supporting weaker cooperatives, Mr Ngugi said such fears were unfounded.
He said the government had not announced a policy requiring Tower Sacco to transfer members’ deposits to a central fund.
The Sacco’s management further explained that the proposed arrangement had not been made mandatory and that participation would be voluntary for cooperatives with excess liquidity.
Chief Executive Officer Patrick K. Njenga said most of the Sacco’s funds were already advanced to members as loans, leaving only operational cash under its direct control.
He urged members not to be alarmed by information circulating about the proposed fund.
“The deposits are with you in the form of loans,” the CEO told the meeting.
The chairman said the Sacco remained guided by cooperative principles, under which the institution ultimately belonged to its members.
Members from distant parts of the country also highlighted the impact of Tower Sacco’s expanding network.
A member from Samburu commended the Sacco for opening a branch in Maralal and establishing a satellite office in Wamba, reducing the distance members previously travelled to access services.
The chairman said the Maralal branch was serving more than 10,000 members, while the Wamba satellite office had attracted more than 2,000 members.
He said the expansion demonstrated how members’ investments in the Sacco were translating into services and infrastructure in different parts of the country.
The meeting was also informed of the election of a new member of the Supervisory Board to represent Nyandarua Central following the death of former chairman Peter Njenga Kuria on May 23.
The election was held on August 29 at Wanjohi Town.
Mr Ngugi said the exercise was conducted in an orderly manner, describing it as an indication of growing member awareness and participation in the governance of the cooperative.
The election results were to be presented by the returning officer.
The chairman thanked the national and county governments, the cooperative movement, members and other stakeholders for supporting the Sacco’s growth.
He said the institution’s next phase would focus on expanding access, strengthening digital services, increasing membership and improving the value of services delivered to members.
With its membership approaching 380,000, deposits and share capital above Sh33 billion and a loan portfolio of more than Sh29 billion, Tower Sacco is positioning itself for a major expansion as it works towards its Sh80 billion asset target by 2030.
