Heavy investment in digitalization, a successful campaign to recruit new members and prudent management of resources contribute to the strong growth of tier one Sacco
By George Gichuki
Ranked tier one by the Sacco Society Regulatory Authority (SASRA), Mentor Sacco successfully held its 49th Annual General Meeting (AGM) in the last Saturday of January. Headquartered in Murang’a town and established in 1976 by a team of visionary teachers, the Sacco has steadily grown and expanded over the years. It has outlets in: Murang’a, Nairobi, Kenol, Ithanga, Thika, Kiambu, Kiria-ini, Kandara, Kangari, Kahuro and Kangema.
Beyond its traditional market territory in Murang’a county, Mentor Sacco has in the recent years embarked on a vigorous campaign aimed at penetrating new regions like Kiambu, Kajiado, Nairobi and Machakos. As part of this campaign, the Sacco has been organizing a series of members’ education and training forums in the said areas, hence creating an opportunity to bring on board new members, while servicing the current ones. To this end, its membership has more than doubled within the last seven years – from 22,609 in 2019 to 51,531 in 2025. During the 49th AGM, the Chairman, Mr. Eliud Mbugua, reported: “The Sacco experienced a robust membership growth – from 44,083 in 2024, to 51,531 in 2025 –representing a cumulative growth of 27.4% over the period.”
Growth in various parameters
Remarkably, the total assets of Mentor Sacco grew from Kshs. 15.8 billion in 2024 to Kshs. 18.5 billion in 2025; an equivalent of 17.2%. “The growth demonstrates strengthening financial capacity and robust asset accumulation courtesy of our co-operative effort,” said Mr. Mbugua. Additionally, the ordinary deposits of the Sacco grew from Kshs. 9.93 billion in 2024 to Kshs. 11.72 billion in 2025, demonstrating that members have a lot of confidence in the lender. By the same token, Mazao, Fosa and Golden deposits grew from Kshs. 2.14 billion, Kshs. 238 million and Kshs. 11.6 million respectively in 2024 to Kshs. 2.94 billion, Kshs. 251 million and Kshs. 21.3 million in 2025. Mr. Mbugua mainly attributed this growth to the awareness that has been created on the benefits of these products during the members’ education and information forums.
The core business of Mentor Sacco is to mobilize savings, provide affordable credit and promote the economic wellbeing of its members. In this regard, the lender’s loan book grew from Kshs. 11.7 billion in 2024 to Kshs. 14.1 billion in 2025. “Over the period, loan to deposit ratio remained healthy at 99.99%, indicating prudent utilization of members’ deposits, while maintaining adequate liquidity,” Mr. Mbugua noted in his presentation.
Significantly, Mentor Sacco registered a profit before tax of Kshs. 392 million in 2025 compared to Kshs. 318 million in 2024. This was a growth of 23.2%. Against this background, members were paid Kshs. 1.64 billion, representing 12.5% interest on non-withdrawable deposits and 15% dividend on share capital. The total member returns in 2025 represented 64.3% of the total revenue. In 2024, the total payment to the members was Kshs.1.4 billion.
Regulatory compliance
In view of a directive that was issued in June last year by the Ministry of Co-operatives and Micro, Small and Medium Enterprises Development – the State Department of Co-operatives- instructing co-operative societies with over five thousand members to change from the traditional AGM to delegate system, Mr. Mbugua said during the 49th AGM that Mentor Sacco is set to comply.
In her address, Mentor Sacco CEO, Mrs. Joyce Ndegwa, said that in the 2025 financial year, the management of Mentor Sacco focused on ensuring that they were operating in full compliance with the Sacco Societies Act, applicable regulations as well as the prudential guidelines issued by SASRA, the Ministry of Co-operatives and Micro, Small and Medium Enterprises Development among other regulatory bodies. “Particular emphasis was placed on capital adequacy ratios, liquidity management, credit and risk management, internal controls and adherence to approved policies and procedures,” Mrs. Ndegwa said.
Digitalization
As a forward looking financial institution, Mentor Sacco has embarked on an ambitious automation journey. One of the major objectives of this initiative is cost management. In 2024 for instance, the Sacco successfully migrated its core banking system, mobile banking, automated teller machine ( ATM) services and related infrastructure to a cutting edge platform within a record period of four months.
Mrs. Ndegwa thanked members for embracing digitalization. “The adoption of these platforms enhances operational efficiency, reduces service delivery costs, and enables the Sacco to reallocate resources towards improved member value and sustainability,” she said. “Increased use of digital solutions supports service continuity, convenience, and stronger member engagement, which are critical to long term retention and competitiveness in a regulated operating environment,” she added.
Business continuity
Mrs. Ndegwa further reported that in 2025, the Sacco continued to mobilize deposits from members and extending credit in a prudent and sustainable manner, in line with its core business. “ Loan appraisal, disbursement, and recovery processes remain a continuous exercise to balance members’ access to affordable credit with effective cost management,” Mrs. Ndegwa said.
She added that Mentor Sacco is committed to responsible lending that supports the transformation of members’ lives, while protecting its financial position. In that vein, she encouraged members to continue patronizing various products and services that the Sacco offers. “When you save consistently and utilize the Sacco services, you enhance our liquidity, reduce reliance on external funding, and enable the Sacco to offer competitive products tailored to your needs,” she told the members.
Mentor Sacco, the CEO said will continue focusing on sustainable growth, enhanced value of members, regulatory compliance, and prudent risk management. “We shall continue to align our operations with approved strategic plans, regulatory expectations, and emerging best practices in the Sacco sector,” she assured the members.
