BEYOND DIVIDENDS: WHY STABILITY, GROWTH, TECHNOLOGY AND GOOD GOVERNANCE MATTER AT MENTOR SACCO
As members of Mentor Sacco convened for an education and information forum at Mugoiri Catholic Church hall in Kiharu constituency, the focus extended beyond financial performance and annual returns. The gathering provided an opportunity to reflect on the Sacco’s long-term vision, sustainability agenda, leadership priorities, and the collective responsibility of members in shaping the institution’s future.
Speaking passionately during the session, Mr. Francis Karingu from the State Department for Cooperatives reminded members that a Sacco is more than just a place to save money or access loans. It is a vision built by people, sustained by trust and strengthened through unity.
As a proud member of Mentor Sacco himself, Mr. Karingu applauded the institution for the remarkable role it has continued to play in transforming lives through financial inclusion, development of innovative products and reliable services.
“We are proud to be associated with Mentor Sacco because of the impact it continues to create in the lives of members,” he noted. “This institution is proof that Saccos can truly transform communities.” But beyond the praise came a deeper conversation, one that challenged members to think differently about the growth and future of their Sacco.
More Than Just Dividends
Karingu posed a thought-provoking question to members: “Would you rather receive slightly lower returns today or lose your savings tomorrow?” The question immediately shifted the focus from short-term investment to long-term stability.
He explained that while dividends and interest on savings are important, they should never be the only measure of a strong Sacco. Behind every stable financial institution are governance structures, financial discipline, proper risk management and strategic planning.
According to him, Saccos are likely face challenges when they focus on paying attractive returns to their members, while ignoring the long-term financial health of the institution. “A strong Sacco is not only built on what it pays members today, but on its ability to protect members’ savings and remain stable for years to come,” he emphasized.
He further highlighted the importance of capital adequacy and the role played by the Sacco Societies Regulatory Authority (SASRA) in ensuring Saccos remain financially secure. Contrary to common misconceptions, he clarified that regulations are not meant to punish institutions , but to safeguard members’ investments and guarantee sustainability.
Embracing Change for Growth
One of the major agenda items during the session centered around the transition to the delegate system , a governance structure now being adopted by large Saccos across the country.
Using a simple but relatable example, Mr. Karingu compared Mentor Sacco to a growing family. “ A family that once comfortably operated in a single room cannot continue functioning the same way twenty years later after growing in size,” he quipped. “ There is need for change, systems evolve and adjustments become necessary ; this also applies to Mentor Sacco,” he added.
What worked years ago when membership numbers were smaller may no longer be effective today with a membership running into tens of thousands. “Growth requires adjustment,” he emphasized. “As institutions expand, systems must also evolve to support that growth,” he added.
He explained that the delegate system is designed to improve efficiency, communication and representation by allowing members to elect representatives who will speak and make decisions on their behalf during the general meetings.
Far from taking away members’ voices, he assured members that the system would strengthen governance and make decision-making more effective in their Sacco.
Keeping pace with technology
Mr. Karingu also touched on the importance of technology in the modern financial space, noting that Saccos can no longer afford to operate using outdated systems while the world continues to evolve rapidly. In that regard, he challenged members to reflect on whether their Sacco is keeping up with changing technological advancements and the growing competition within the financial sector. “Technology has changed many things,” he said, emphasizing that institutions must continuously adapt to remain competitive and relevant.
From digital financial services to improved systems and faster service delivery, he noted that embracing innovation is no longer optional but necessary for growth and sustainability. His remarks highlighted the growing need for Saccos to modernize operations, strengthen digital systems and align themselves with the changing needs of members in today’s fast-moving world.
Leadership is a responsibility
Mr. Karingu also challenged members to think carefully about the type of leaders they elect. According to him, leadership within a Sacco goes beyond qualifications on paper. Delegates and leaders must be approachable, responsible, disciplined and genuinely concerned about the welfare of members.
“These are people entrusted with representing your financial interests,” he said. “They should be people who listen, understand members’ concerns and advocate for the growth of the institution.”
His sentiments underscored the importance of electing leaders based on integrity, discipline and vision rather than popularity alone.
A powerful reminder about financial planning
In one of the most emotional moments of the session, Mr. Karingu shared a real-life story involving a deceased Sacco member whose savings became a source of conflict because beneficiary details had not been properly updated.
The story served as a powerful reminder to members about the importance of updating next-of-kin information and planning ahead. “ The small things that we ignore today can create major challenges tomorrow,” he cautioned.
He therefore encouraged members to take personal responsibility for their financial records and ensure their loved ones are protected in the future.
Members remain the heartbeat of Mentor Sacco
As he concluded his address, Mr. Karingu reminded members that Mentor Sacco success has always been built on the trust, resilience and commitment of its members. He urged them to continue supporting the institution, embracing change and actively participating in its growth journey. “You are the heartbeat of this organization,” he said. “Without members, Sacco cannot be established,” he added. His message was clear, the future of Mentor Sacco will not only depend on leadership or management, but also on the willingness of members to adapt, embrace technology, engage and work together towards a common vision. And as the institution continues to grow, one thing remains certain: stability, innovation, unity and good governance will remain the foundation upon which its future is built.
