STRONGER TOGETHER: A CALL FOR A SUSTAINABLE GROWTH AND RESPONSIBLE GOVERNANCE AT MENTOR SACCO
At a vibrant Mentor Sacco forum attended by members, leaders, and stakeholders, the Director of Cooperatives for Murang’a County, Milfred Mwangi, delivered a deeply insightful address centred on unity, accountability, and the long-term sustainability of cooperatives. Her message went beyond routine remarks; she painted a clear picture of what it truly takes for a Sacco to thrive in a changing financial landscape. She was the main facilitator during Mentor Sacco members’ education and information forum in Lari constituency – Kimende Comprehensive School.
From the onset, she expressed appreciation for Mentor Sacco’s leadership and membership, commending the financial institution for consistently creating spaces for engagement and education. She noted that such forums are not just ceremonial, but essential pillars of cooperative growth.
“Education, training and information is a key principle of cooperatives,” she emphasized. “Imagine being a member of Mentor and you don’t know the different products offered by the Sacco, would you really benefit fully?”
Strengthening Cooperatives through Legal and Institutional Frameworks
Mildfred outlined the critical role played by the department of cooperatives in supporting, guiding, and regulating cooperative societies. She explained that their work begins at formation; where they promote and register cooperatives and continue through their lifecycle to ensure compliance with established laws.
She made reference to the Cooperative Societies Act, Cap 490, Sacco by-laws, and Annual General Meeting ( AGM) resolutions, stressing that these frameworks are not optional , but binding instruments that guide operations. “Once members pass resolutions in an AGM, those resolutions become law that cooperatives must follow,” she said, underscoring the importance of accountability at every level.
She also highlighted the role of policy directives and circulars issued by regulatory authorities, including recent guidelines requiring larger cooperatives to adopt the delegate system of governance to enhance efficiency as membership grows.
Mentor Sacco: A Model Built on Collective Responsibility
In her address, she praised Mentor Sacco as one of the best-performing cooperative societies in Murang’a County, attributing its success to teamwork and disciplined execution of roles across all levels.
Using a compelling analogy, she compared the Sacco to a human body to illustrate interdependence among stakeholders.
“The members are the heart of this Sacco,” she explained. “If the heart stops beating, the body cannot survive. In the same way, if members do not save or borrow, the Sacco cannot exist.” She further described the board of directors as the brain responsible for strategic direction and decision-making, while the supervisory committee was likened to the eyes, ensuring oversight and accountability.
“The supervisory committee is the eyes of the Sacco. They ensure that the management is doing the right thing, just like vision guides the body,” she said. Management, she added, functions as the hands and legs, responsible for implementing decisions and ensuring daily operations run smoothly.
“The success of Mentor Sacco has not come by accident. It has come because every player has played his or her role as expected.”
Beyond dividends: the true measure of Sacco strength
While acknowledging Mentor Sacco’s strong financial performance including a reported 15% dividend payout and 12.5% interest on deposits, the director challenged members to think more deeply about sustainability.
She cautioned against the common tendency to equate high dividends with financial strength, noting that this can sometimes mask deeper structural weaknesses.“A strong Sacco is not only about paying high dividends,” she said. “It is about whether the institution can protect members’ savings and continue operating for generations.”
She pointed to the importance of institutional capital, describing it as the backbone of financial stability within a co-operative. “When we talk about institutional capital, we are talking about the foundation of the Sacco ; the pillars, the walls, the structure that protects members’ savings against risk,” she explained.
She further warned that some institutions that once appeared successful due to high payouts eventually collapsed because they lacked strong financial buffers. “The question we must ask is not just what we are receiving today, but whether the Sacco will still be in existence tomorrow,” she added.
Growth, systems, and the future of member participation
As Mentor Sacco continues to grow – now boasting over 50,000 members and an asset base of a Kshs 18.5 billion – the Director emphasized the need for systems that evolve with growth. “ The systems we used when we were 5,000 members cannot be the ones we use when we are 50,000 members,” she noted.
She addressed concerns surrounding the introduction of the delegate system, assuring members that it is not meant to strip them of power but to improve efficiency in decision-making.
She added that member forums will continue to exist, ensuring that communication and accountability remain strong. “You are still the owners of Mentor Sacco. You are still the beneficiaries,” she reassured.
A shared vision for a sustainable future
Concluding her remarks, by highlighting the forum’s central theme: “Stronger together, building a sustainable Sacco through responsible governance and active membership.” In that regard, she urged all stakeholders, members, leaders, management, and oversight committee to remain committed to their roles, emphasizing that sustainability is a shared responsibility.
She was emphatic that a Sacco is not built on dividends alone, but on discipline, trust, and long-term vision. “ Let us protect and strengthen this Sacco. It belongs to all of us, and its future depends on how responsibly we act today,” she concluded. The address left a lasting impression on attendees, reframing Mentor Sacco not just as a financial institution, but as a living system sustained by the collective effort of its members and leaders.
