Tier one Sacco defies its humble roots by recording an asset base of Kshs. 13.1 billion in 2025, having commenced business with a seed capital of only Kshs. 459,000 fifty years ago
By George Gichuki
Founded in 1976 by a group of eight hundred and fifty seven teachers from the then Nyeri district, NewFortis Sacco opened another chapter in its rich history by successfully holding the fiftieth Annual General Meeting (AGM). The colourful event took place in the third Saturday of January 2026. Starting their journey in a very humble way, each founding member of the lender religiously saved Kshs.20 every month. Their goal was to have a solid finance kitty from which they would borrow on favourable terms. That was in line with the third principle of co-operatives – member economic participation. Under this principle, members contribute to the capital of their co-operative equitably, and they in turn receive benefits which are proportional to their level of patronage. Needless to say, mobilizing the seed capital among the founding members was a very daunting task. Fortunately, they didn’t give up and with time, they were able to raise Kshs.459,000. At that point, the Sacco started lending.
Back then, it was known as Nyeri Teachers Sacco. In 2015, the Sacco achieved a major milestone. In response to its members’ needs and in view of the market trends, it opened its common bond and rebranded to NewFortis Sacco. This created an opportunity for the Sacco to bring on board members from other professions, the civil service, county governments and the business community. Additionally, it was able to expand into new market territories and develop more innovative products.
Significantly, the Sacco launched front office service activity (FOSA) giving room to the members to deposit and withdraw their savings over the counter, receive salaries and access their loans from the branches among other important transactions. “The Sacco has since experienced exponential growth in membership, deposits, capital base, loan portfolio and infrastructure,” noted the chairman, Mr. John Githinji, during the fiftieth AGM. He further said that this growth has been fuelled by strong corporate governance. “NewFortis Sacco has undertaken a transformational journey that emphasizes professionalism, prudent management practices, adoption of modern technology and efficient service delivery,” emphasized Mr. Githinji.
First
The chief guest, Hon. Wycliffe Oparanya, Cabinet Secretary, Ministry of Co-operatives and Micro, Small and Medium Enterprises (MSMEs), was represented by his Permanent Secretary, Mr. Patrick Kilemi. In his address, Mr. Kilemi emphasized on the need for Saccos to focus on their core business – mobilizing savings from members and offering them credit. He commended NewFortis Sacco for submitting its 2025 audited financial results on time, hence getting an approval from the Sacco Society Regulatory Authority (SASRA) to hold its AGM early in the year. This is a feat that the Sacco has consistently achieved over the years.
The Governor of Nyeri H.E Mutahi Kahiga in his speech encouraged the management of NewFortis Sacco to develop more innovative products that are responsive to the members’ needs, in order to grow its loan book and profitability. “Saccos are important vehicles of financial inclusion and socio-economic development because they assist their members to pool resources and access loan products at favourable terms,” said Governor Kahiga. “ Essentially, the need to advance economically and uplift their living standards motivate people to join Saccos,” he added. The Governor commended NewFortis Sacco for being a prudent steward of members’ funds over the last fifty years.
Growth
In 2025, NewFortis Sacco registered growth across various key parameters. In this regard, its asset base grew to Kshs. 13.1 billion in comparison to Kshs. 8.2 billion in 2020. Additionally, the share capital grew to Kshs. 195.4 million. The marketing effort of the Sacco in 2025 also paid off as demonstrated by the growth in membership to 24,236. “NewFortis Sacco continues to register positive growth in membership; a clear indicator of trust and confidence in our institution,” Mr. Githinji said in his address during the AGM adding: “ Membership has risen from 857 in 1976 to 24,236 currently, while deposits and share capital have also recorded steady growth.”
As at December 2025, NewFortis Sacco registered a profit after tax amounting to Kshs. 159 million, compared to Kshs. 112 million in 2024. Against this background, members received a total of Kshs. 1.1 billion – as dividend on their share capital and interest on their non-withdrawable deposits – at a rate of 14% and 13% respectively.
During the AGM, Mr. Githinji also told the members that the board has proposed the revision of the shareholding ceiling from a maximum of Kshs. 20,000 per member to Kshs.50,000. “This is an opportunity for those members who have been requesting and are willing to increase their shareholding,” Mr. Githinji said while encouraging members to collect their share certificates from the head office.
Strategy
Strategic planning has played a pivotal role in accelerating the growth and overall performance of NewFortis Sacco. To that end, the lender has put in place a three- year strategic plan that is reviewed annually. It is grounded on: strong corporate governance, excellent service delivery and institutional capacity building. In this vein, Mr. Githinji said that the Sacco’s road ahead will focus on: sustained membership recruitment and retention, growth in members’deposits and share capital, enhanced digital and mobile services, strengthening credit risk management as well as continuous education of members and improved financial literacy.
In view of a directive from the Ministry of Co-operatives and Micro, Small and Medium Enterprises Development – Guidelines on Delegate System of Representation in General Meeting of Co-operatives- during the AGM, the chairman said that the Sacco has finalized a governance policy introducing the delegates’ system. Going by this directive, all the co-operatives in Kenya with over five thousand members are expected to adopt a delegate system of representation in their general meetings. The chairman told members that the new system will play a critical role in steering strategy, marketing, governance and inclusivity.
Going digital
Digitalization is a key driver of NewFortis’ Sacco growth in membership and profitability. During the fiftieth AGM, Mr. Githinji told members that in order to keep pace with modern technological trends, the Sacco has upgraded to T24 core banking system. This development has enhanced its efficiency, accuracy and reliability. “The system supports SASRA reporting and fully integrates with our banking platforms,” he assured the members. He added that in order to address the threats associated with digitilization – mainly cyber-attacks – the Sacco continuously upgrades its systems. Regular upgrades also enhance the experience of customers. “We remain committed to expanding digital solutions for better service delivery,” noted the chairman.
