In a powerful demonstration of financial resilience and strategic growth, Tabasamu Sacco has reported a remarkable 65 percent increase in annual surplus, signaling a new phase of expansion and institutional strength for the Kwale-based cooperative.
The announcement formed the centerpiece of the Sacco’s 48th Annual Delegates Meeting (ADM) held on February 28, 2026, at the Jacaranda Beach Resort, where delegates, board members, and stakeholders gathered to review the institution’s performance and chart the next phase of growth.
Addressing the packed hall, Chairman of the Board of Directors Juma Juma Mwavitu unveiled a financial report that surpassed nearly all internal benchmarks for the 2025 financial year, positioning the Sacco as one of the fastest-growing cooperatives in the coastal region.
A Financial Powerhouse in the Making
Tabasamu Sacco’s balance sheet reflected steady expansion across key financial indicators. Total assets grew by 16 percent, rising from Ksh 1.3 billion in 2024 to Ksh 1,521,943,032 by the end of 2025, an achievement that underscores growing member confidence and effective financial management.
Revenue performance also strengthened significantly. The Sacco recorded Ksh 311.1 million in total revenue, representing a 27.2 percent increase compared to the previous year.
The most striking figure, however, was the net surplus, which climbed dramatically to Ksh 55,141,607 before tax and appropriations, up from Ksh 35.8 million in 2024. This sharp increase reflects improved operational efficiency, expanding lending activity, and disciplined financial oversight.
“The society is growing into a big financial institution in this country,” Mwavitu told delegates in his report. “The only way to get out of the yoke of financial slavery is through savings. It is through savings that a person can achieve financial freedom.”
In recognition of the strong financial performance, the Board recommended a 10 percent dividend on share capital and a 5 percent interest payment on member deposits, a move expected to further strengthen member confidence and participation in the Sacco.
Supervisory Oversight: Balancing Growth with Risk
While the Board celebrated the Sacco’s strong financial performance, the Supervisory Committee, led by Chairman Joseph Mtende, offered a measured perspective focused on governance, risk management, and institutional sustainability.
The supervisory report noted that the Sacco is steadily progressing toward achieving its 2027 Strategic Plan goal of a Ksh 1.5 billion loan portfolio, with the current net loan portfolio standing at Ksh 1.03 billion.
However, the committee emphasized that as the Sacco expands its lending activities, prudent risk management will remain critical to maintaining long-term financial stability.
“Due diligence should be done at the appraisal stage to ensure the risk of loan default is identified and mitigated, especially for business loans,” the supervisory report stated.
Encouragingly, the Sacco’s Portfolio at Risk (PAR) has remained well within regulatory limits, staying below the 5 percent threshold set by the Sacco Societies Regulatory Authority (SASRA). This indicates a strong loan recovery framework and disciplined credit management practices.
Strategic Expansion and Digital Transformation
The ADM also served as a platform to unveil Tabasamu Sacco’s next phase of expansion, both physically and digitally.
A feasibility study for a new branch in Samburu has already been completed and approved by SASRA, with operations expected to begin on May 1, 2026. The move is part of the Sacco’s broader strategy to expand its footprint and bring financial services closer to members.
Additionally, the Sacco plans to relocate its Lunga Lunga marketing office to a more strategic location to enhance visibility and improve member engagement in the area.
On the technological front, the institution has taken important steps toward modernizing its operations. The Sacco recently hired a dedicated Systems Administrator and implemented IP phone systems to improve communication and coordination across branches.
These investments form part of a broader digital transformation agenda aimed at improving efficiency, strengthening internal systems, and enhancing service delivery to members.
Community Impact and Membership Growth
Beyond financial performance, the reports highlighted Tabasamu Sacco’s commitment to its social mandate and cooperative values.
Guided by the cooperative principle of “Concern for the Community,” the Sacco sponsored 145 students to pursue vocational training and short courses in Samburu and Lunga Lunga sub-counties during the year. The initiative aims to empower young people with practical skills that can improve livelihoods and strengthen local economies.
Membership growth also remained positive. The Sacco’s total membership reached 7,574, with active members increasing by 9 percent to 5,506, reflecting growing trust in the institution’s products and services.
However, the meeting also paused for reflection as delegates observed a minute of silence in honor of 12 members who passed away during the year, including former delegate Mr. Rashid Dodo.
The Road to 2027
As the 48th ADM concluded, the overall tone was one of cautious optimism and renewed determination.
With assets now exceeding Ksh 1.5 billion, a growing membership base, expanding branch network, and a strong financial performance, Tabasamu Sacco is steadily positioning itself as a dominant financial player in the coastal region.
The Sacco has set an ambitious target of Ksh 2 billion in total assets by 2027, a goal that leadership believes is well within reach if the current growth momentum is sustained.
“Long live Tabasamu Sacco, long live the cooperative movement,” Mwavitu concluded, echoing a sentiment of unity, stability, and progress that was clearly reflected in the year’s impressive financial results.
