Biashara DT Sacco chairman Joseph K. Njamuku addressing the AGM yesterday.
By MKT Reporter
Biashara DT Sacco Ltd has reported robust financial growth for the year ending December 31, 2025, even as it grapples with rising loan defaults in a challenging economic environment.
Speaking during the Sacco’s Annual General Meeting held yesterday, Chairman Joseph Njamuku said the institution recorded significant gains across key performance indicators, driven by strategic focus on savings mobilization, cost reduction, and loan portfolio management.
The Sacco’s total assets grew by 13.4 percent to KSh4.19 billion, up from KSh3.7 billion in 2024, signaling steady progress toward achieving Tier I status. Core capital also rose by 12.9 percent to KSh1.44 billion.
Member deposits increased by 19.2 percent to KSh2.52 billion, reflecting growing confidence among members.
However, the Chairman noted that deposits remain insufficient compared to the expanding loan book, with the loan-to-deposit ratio standing at 136.1 percent.
“We must strengthen our savings culture to support sustainable lending,” Njamuku urged members.
Loan disbursements surged by 22 percent to KSh3.74 billion, while the loan portfolio expanded by 17.4 percent to KSh3.43 billion.
The growth was attributed to increased demand for credit and aggressive member-focused lending strategies.
Net surplus before tax rose modestly by 6.5 percent to KSh266.4 million.
Based on this performance, the Board proposed an 18 percent dividend on share capital and 12 percent interest on member deposits, translating to a total payout of KSh113 million.
Membership grew by 8.4 percent to 229,436, while the Sacco expanded its agency network to 660 outlets, improving accessibility and service delivery.
Despite the strong performance, rising loan defaults emerged as a major concern.
The Sacco’s portfolio at risk increased to 15.96 percent in 2025 from 12.26 percent in the previous year, with defaulted loans amounting to KSh47.2 million.
This prompted the Sacco to significantly increase its loan loss provisions to KSh46.8 million.
“The growth in our loan book has been accompanied by increased default rates, which requires urgent and collective action,” Njamuku said.
To address the issue, the Sacco has introduced stricter loan appraisal processes, enhanced monitoring, and increased accountability in credit decision-making. Members were also encouraged to engage the Sacco early when facing repayment difficulties.
On the regulatory front, the Sacco is adapting to stricter oversight by the Sacco Societies Regulatory Authority (SASRA), including new corporate governance reporting requirements and a directive to adopt a delegate system for large membership organizations.
Among its key achievements, the Sacco completed Phase One of the Biashara Sacco Plaza at a cost of KSh165 million, fully financed from internal reserves. The building is already generating rental income, with part of the space leased out at a monthly income of KSh388,000.
The Sacco has also made strides in digital transformation, launching an online member portal to support diaspora engagement and improve service delivery.
Looking ahead, Biashara DT Sacco plans to strengthen asset quality, roll out a digital loan platform pending regulatory approval, and expand its physical presence by opening new branches in selected growth areas.
As the Sacco marks 20 years of FOSA operations, Njamuku expressed confidence in its future, calling on members to remain committed.
“Our success depends on collective effort. Together, we can overcome current challenges and build a stronger, more resilient Sacco,” he said.
Hundreds of the Sacco members attended the AGM that was held at ACK Hall in Nyeri town.
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