What You Need to Know
Saccos across Kenya are urged to include more young people in their membership and leadership to ensure future sustainability. Commissioner David Obonyo emphasized that integrating youth is crucial for adapting to a digital financial landscape and maintaining competitive advantage. The call comes as Unaitas Sacco aims to double its asset base by 2030, focusing on youth recruitment and technology.
Africa-Press – Kenya. Saccos countrywide must deliberately bring in more young people as members and officials to secure their future in an increasingly digital and competitive financial landscape, according to a top sector official.
The call comes amid concern that many cooperatives have ageing membership bases and rigid governance systems that lock out younger Kenyans who form the majority of the population and prefer fast, technology-driven financial services.
Speaking at the annual delegates meeting of Unaitas Sacco, Commissioner for Cooperatives David Obonyo emphasised that the survival of the sector will depend on how well it nurtures and integrates young members into leadership and decision-making spaces.
“Can you make the deliberate move to onboard more youth onto Unaitas Sacco? The future of Unaitas is heavily dependent on the youthful membership you will have,” said Obonyo, urging the institution to create pathways for youth representation at delegate and board levels.
He added that Saccos must actively mentor young members into leadership roles to safeguard decades of investment.
“If we are not able to nurture them, we may not have anybody to take care of the investment when we are gone. You were the first Sacco to leave director one position to a lady decades ago. I urge you to do the same for the youth,” he said.
At the same time, the commissioner underscored the need for Saccos to embrace modern technology, noting that data-driven decision-making and robust ICT systems will be critical in attracting and retaining younger members.
He pointed out that institutions must enable seamless interaction between members, management, and boards through digital platforms.
“A Sacco with close to half a million members requires a robust ICT system. That is the only way we can attract young people and allow them to engage even from their homes,” he said.
The push for reforms comes as Unaitas Sacco sets an ambitious growth target of doubling its asset base from Sh30 billion to Sh60 billion by 2030, riding on a strategy anchored on youth recruitment, digitisation, and expansion.
CEO Martin Muhoho said young people represent the largest untapped opportunity for the Sacco movement, making their inclusion critical to long-term growth.
He noted that 75 percent of the institution’s workforce is aged 35 years and below, reflecting a strong youth presence internally.
The Sacco also plans to grow its membership from the current 458,079 to one million while expanding its branch network from 33 to 60 outlets nationwide.
For the financial year ended 2025, the Sacco posted a profit of Sh1.73 billion.
Chairperson Michael Muriithi said members will receive a 12 percent dividend payout, positioning the Sacco among strong performers in the market.
However, Obonyo cautioned against over reliance on high dividend payouts, warning that some institutions have resorted to borrowing to sustain returns.
“If we are not able to sort out this issue of dividends, then our Saccos will have a problem in the next 10 years. It is not sustainable to keep paying very high dividends,” he said, proposing that Saccos instead lower lending rates to empower members to invest and grow their savings.
The commissioner also revealed that regulatory action has already been taken against some Saccos that diverted members’ funds into unregulated investments, including offshore accounts, with orders issued to repatriate the الأموال to Kenya.
He further warned against outdated operational models, noting that the Sacco sector has evolved into a major pillar of the country’s financial system, contributing about 30 percent of national savings mobilisation.
“We must strengthen our institutions. The way we are running Saccos should not be the way we used to run them in the 1990s,” he said, calling for innovation and forward-looking leadership.
The Sacco movement in Kenya has been a significant part of the financial landscape, contributing to national savings and providing financial services to communities. Historically, Saccos have faced challenges such as aging membership and outdated governance structures, which hinder their ability to attract younger members. As the financial sector evolves, embracing technology and youth participation is essential for the sustainability of these cooperatives, ensuring they remain relevant in a competitive market.
