Christened Mpawa, unveiled firm offers many benefits to members seeking value and convenience in a fast evolving financial landscape
By George Gichuki
Stima DT Sacco has marked what may become one of the most significant structural shifts within Kenya’s savings and credit co-operatives sub sector. The official launch of Mpawa Insurance Brokerage, a fully owned subsidiary of the tier one Sacco, is more than a ceremonial unveiling of a new company, it is a statement of intent.
For decades, Saccos in Kenya have been largely defined by two pillars: savings mobilisation and credit provision. But the current economic realities, evolving regulatory regime as well as members’ needs are forcing a paradigm shift. Stima DT Sacco’s move into insurance brokerage services represents a growing realization across the Sacco sub – sector: sustainable growth can no longer be dependent on lending alone. Instead, diversification — particularly into bancassurance and insurance premium financing — is becoming the new frontier.
Why Saccos are rethinking their business models
Traditionally, the revenue of Saccos has been heavily dependent on interest from loans. While this model has supported their growth over the years, it has also exposed Saccos to concentration risk. Economic downturns, loan defaults, and interest-rate pressures directly affect their overall performance. At the same time, members’ financial needs have evolved. Once members have grown their wealth by accessing loans from a Sacco, they also need to protect it from inherent risks. That is where insurance comes in. The National Chairman of Stima DT Sacco, Dr. (Eng.) Joseph K. Siror emphasized this during the launch of Mpawa Insurance Brokerage: “Financial progress without risk protection is incomplete.”
This shift captures a broader transformation within Saccos in Kenya. The modern Sacco is no longer simply a lender; it is increasingly becoming a full financial services provider.
From agency to brokerage: the birth of Mpawa
Mpawa was not created overnight. The entity began in 2018 as a special-purpose vehicle designed to address insurance needs among Stima Sacco members. Within a few years, the demand for its products and services grew significantly. Its gross written premium portfolio for instance grew from Kshs. 148 million to over Kshs. 600 million by 2025.
That growth revealed something important: members trusted their Sacco more than the traditional insurance channels. The board therefore resolved to transition Mpawa into a fully licensed brokerage firm; a strategic step allowing it to represent clients rather than insurers.
Mpawa board Chairman Eng. Geoffrey Mulli explained: “We want members to access comprehensive and competitive insurance solutions tailored to their needs.” Unlike insurance agencies which are tied to specific underwriters, a brokerage firm sources products across the market, negotiates better terms, and provides independent advisory services. This model is convenient and friendly to the members.
Bancassurance in Saccos: completing the financial ecosystem
The launch of Mpawa Insurance Brokerage firm places Stima Sacco among a growing number of financial institutions embracing bancassurance — the integration of insurance products into financial service delivery. This is a new revenue stream for Saccos through commissions. By the same token, this will enhance the retention of members and reduce the risk of its portfolio risk. More importantly, members will access various insurance products conveniently, their premiums will be lowered and they will be able to access trusted advisory services.
By and large, Kenya’s insurance penetration remains low. Therefore, Saccos, which already maintain strong relationships with members, are uniquely positioned to bridge this gap. Eng. Mulli aptly clarified the role of the brokerage firm: “Our responsibility is to represent the customer and negotiate favourable terms.”
Insurance premium financing
One of the most innovative aspects of the new venture is insurance premium financing. Traditionally, insurance premiums must be paid upfront; often a barrier for individuals as well as micro, small and medium enterprises ( MSMEs). Through Sacco-based financing, members can: access insurance products conveniently and fast, pay premiums in instalments, and maintain healthy cashflow. Effectively, this converts insurance from a large expense into a financial product.
For Saccos, this creates a powerful synergy – loans protect members’ assets, while insurance protects the loans themselves. The result is a lower default risk and stronger institutional stability.
Strategic benefits to members
The brokerage model creates multiple direct advantages for members including : competitive insurance pricing, professional advisory services, faster claims support and enhanced financial resilience. Dr. (Eng.) Siror, in that regard noted : “Members will benefit from responsive claims support and professional advisory services.” In practical terms, this means a member can now obtain a loan, insure the financed asset, and receive advisory support; all within the same cooperative ecosystem.
Technology, data and new revenue
Beyond insurance sales, Mpawa represents a long-term strategic play. The brokerage firm will leverage technology platforms, partnerships, and data insights to improve retention and efficiency while generating commission income sustainably. This is a critical development. Unlike the income generated from lending, which fluctuates with economic cycles, commission-based income is recurrent and more stable.
By diversifying its income stream, Stima Sacco will reduces its dependency on interest income and strengthens financial resilience.
A Signal to the cooperative movement
The launch carries broader implications for Kenya’s cooperative movement. Saccos collectively serve millions of Kenyans. However, many still rely almost entirely on revenue from lending. Stima DT Sacco model foresees a different future, one where Saccos evolve into multi-service financial institutions offering: savings, credit, investment, insurance and advisory services. In effect, Saccos may become the closest equivalent Kenya has to community-based financial supermarkets.
According to Dr. Gamaliel Hassan, the Chief Executive Officer, this development aligns with the long term vision of Stima DT Sacco – building an institution that delivers comprehensive , member- centred financial security. “ Mpawa is not an auxiliary offering; it sits at the heart of our heart to create a comprehensive financial ecosystem for our members and stakeholders,” said Dr. Hassan during the launch.
The bigger picture: protection vis-à-vis financial inclusion
Financial inclusion mainly focuses on access to credit. But effective inclusion requires protection against shocks, illness, accidents, disasters, and business losses. Without insurance, one crisis can wipe out years of financial progress. By integrating insurance into cooperative finance, Stima Sacco is addressing a critical missing link the empowerment of members. The launch of Mpawa Insurance Brokerage marks a major turning point for Stima DT Sacco . Through bancassurance and insurance premium financing, the lender has demonstrated how forward looking Saccos can diversify income, mitigate risks, and deepen members’ value.
