For years, many Kenyans who struggled to access traditional banking services found an alternative in savings and credit cooperatives, with SACCOs growing into a key pillar of financial inclusion by serving workers, low-income earners and communities often left out of the formal banking system.
Stima DT Sacco Chief Executive Officer Gamaliel Hassan said the rise of SACCOs has been driven by their ability to provide financial solutions that match the needs of ordinary citizens, especially those who could not meet the requirements set by commercial banks.
Hassan said the cooperative sector has continued to expand because members have found value in institutions that allow them to save, access credit and build their financial security.
"The SACCO movement in general has grown because citizens have felt that SACCOs meet their needs," he said, adding that Kenya’s financial sector is wide enough to accommodate different institutions serving different groups of customers.
Speaking on Radio Generation on Thursday, Hassan said SACCOs emerged to bridge a gap created when many Kenyans had limited access to formal banking services.
He recalled that in the 1980s, several banks shut down branches, leaving many people without easy access to banking services.
"In the 1980s, a lot of the banks closed many of the branches they were operating, and there were many people who were unbanked," he said.
Hassan said during that period, many workers received their salaries in cash and kept their money at home because accessing banking services was difficult.
"There were people who did not meet the criteria to open a bank account, and I think we've remained true to that. We predominantly have members at the bottom of the pyramid," Hassan explained.
He said the focus on serving ordinary Kenyans remains one of the key differences between SACCOs and other financial institutions, as cooperatives continue to design products based on members’ needs.
According to Hassan, SACCOs have grown by creating opportunities for people who previously had limited options to save, borrow and invest.
Protecting Members’ Wealth
Beyond savings and lending, Hassan said Stima DT Sacco moved into insurance to help members protect the wealth they have built over time.
He said saving and borrowing alone were not enough if members lacked protection against unexpected events such as medical emergencies, fires or accidents that could wipe out years of financial progress.
"Savings for us is king. Save first, build yourself up, invest and borrow wisely. But there was a fourth step that was missing — how do I protect my wealth?" he said.
To address this gap, Stima DT Sacco established Empower Insurance Agency in 2018 before later changing its model into an insurance brokerage.
"Our desire was simple. We give members loans, we protect their deposits and investments, but we also wanted to negotiate better insurance terms for our members," Hassan said.
He said the Sacco’s large membership base gives it stronger negotiating power when seeking better insurance terms and affordable premiums.
With more than 240,000 members, Hassan said the organisation is able to secure competitive insurance packages while extending services beyond its membership base.
He added that the brokerage business complements the Sacco’s wider goal of helping members save, invest, borrow responsibly and protect their financial gains.
Stima DT Sacco recorded strong financial performance for the year ended December 2025, a growth Hassan linked to the strength of the cooperative model and changing customer needs.
The Sacco reported Sh10.8 billion in revenue, while total assets increased to Sh75.27 billion from Sh66.44 billion recorded in 2024.
Membership also increased to 241,324, with the society approving Sh5.11 billion in dividends and interest rebates for members after its annual general meeting.
The Sacco attributed the performance to increased digital transactions, higher investment income and continued growth in its loan portfolio.
Hassan said technology has become central to how members interact with the institution, with more than 93 per cent of members now using digital platforms to access services.
He said the shift towards digital financial services shows how SACCOs are adapting to changing customer expectations while maintaining their role as accessible financial partners for Kenyans.