Despite rapid advancements in digital banking, Kenya’s Savings and Credit Cooperative Societies (SACCOs) continue to prioritize opening brick-and-mortar branches—especially in rural areas where a significant number of their members, such as peasant farmers, reside.
Annual reports for the year ending December 31, 2024 and outlooks for 2025 reveal that several dynamic deposit-taking SACCOs plan to expand their physical presence. For instance, Tower SACCO has opened branches in Nyeri, Thika, and Mwisho wa Lami since early 2025, with each new branch launched within a month of the other.
Tower SACCO’s Nyeri branch is located near the County Government offices, Thika’s outlet is along the Thika-Garissa highway, and Mwisho wa Lami’s branch is situated along the Narok-Njoro highway. These additions bring Tower SACCO closer to its rural and semi-urban clientele, who often prefer physical offices over digital platforms.
Comparatively, Kenya’s over 40 licensed commercial banks operate more than 1,500 branches, while the 270+ licensed deposit-taking SACCOs manage fewer than 650. This contrast has sparked debate over whether SACCOs should focus on expanding their digital infrastructure instead of building new branches.
ALSO READ:
Incorporate cooperative aspects in school curriculum to boost savings culture, says Sacco boss
“It’s unrealistic to tell SACCOs to go digital when banks are allowed to open multiple branches in urban centers,” said David Marete, CEO of Solution SACCO. “SACCOs don’t have the same financial muscle as banks, and digital-only strategies don’t work everywhere—especially after the pyramid scheme scandals, which involved faceless, branchless operations claiming to be SACCOs.”
He argues that physical branches inspire trust. “When members hear rumors that a SACCO is collapsing but find its branch open, confidence is restored,” Marete added. “There’s a strong link between physical presence and deposit mobilization.”
Solution SACCO, still in a growth phase, is aggressively seeking opportunities to expand its physical footprint. Similarly, Qwetu DT SACCO, based in Taita Taveta County, has plans to launch a Mombasa branch by the end of 2025 or early 2026, building on its existing presence in Voi, Mwatate, and Taveta.
“We believe that physical expansion is still key to growth,” said Evans Otieno, Marketing Manager at Qwetu DT SACCO.
Yetu DT SACCO in Meru is also investing in its infrastructure. With its new headquarters expected to be completed by May 2025, it is anticipated the SACCO will follow up with the launch of new outlets.
ALSO READ:
Tea farmers reap big at Mombasa auction as tea sales climb to Ksh 904 million
While many SACCOs started with a geographically or professionally defined membership—like teachers or farmers—growth often demands broader inclusion. As members relocate or diversify economically, SACCOs must offer services in new areas or risk losing them to competitors. For many, this necessitates opening branches.
Still, there is division in the industry. Some SACCOs are leaning toward digital-first strategies. David Mategwa, National Chairman of Kenya National Police DT SACCO, believes technology is the future.
“We currently have eight branches and don’t plan to open more for now,” said Mategwa. “Physical branches are useful for face-to-face service, but investing in digital platforms is more cost-effective.”
Branch expansion can significantly increase operating costs, including rent, utilities, and staffing. SACCOs must carefully evaluate whether anticipated revenue in a new location justifies the investment.
Despite this, several SACCOs remain committed to physical growth. Univision DT SACCO (formerly Kitui Teachers SACCO) has expressed intentions to expand its presence beyond the current eight branches and three satellite offices. In its 2024 report, Univision outlines a plan to double its balance sheet over the next three years through a mix of branch expansion and digital transformation.
ALSO READ:
Women groups in Kangundo receive empowerment funds National government
Branches in Kitui, Machakos, Wote, and Kyuso—as well as satellites in Kabati and Masii—are central to this strategy, indicating that physical presence remains a core part of member engagement and service delivery.
Most SACCOs now use a hybrid approach—combining physical branches, digital platforms, and agency banking—to maintain accessibility while reducing congestion in banking halls.
However, the Sacco Societies Regulatory Authority (SASRA) has cautioned SACCOs against rapid physical expansion. The regulator is concerned with ensuring sector stability, preventing mismanagement, and safeguarding member deposits. Overexpansion without proper oversight could increase operational risks.
Still, SACCOs argue that rural and informal sector clients often require human interaction. While urban populations may embrace mobile and internet banking, many SACCO clients remain skeptical of fully digital services, especially in the wake of past frauds.
Ultimately, SACCOs must balance physical growth and technological innovation. Expansion plans must reflect not only market opportunities but also evolving member expectations, regulatory compliance, and long-term sustainability.
By Jackson Okoth
Get more stories from our website: Sacco Review.
For comments and clarifications, write to: Saccoreview@
Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates
Stay ahead of the pack! Grab the latest Sacco Review newspaper!
