Sidian Bank is doubling down on its collaboration with SACCOs as it charts an ambitious growth path, with Chief Executive Chege Thumbi crediting the strategy for the lender’s swift ascent into Tier II status.
Thumbi revealed that the bank now works with more than 120 SACCOs nationwide, delivering a range of tailored products and financial solutions. He noted that these alliances have become central to the institution’s scaling efforts.
The numbers are striking. Sidian’s nine-month profit after tax surged 470 per cent to KSh 1.47 billion, up sharply from KSh 257.6 million recorded over the same period the previous year.
The lender is also eyeing a significant branch expansion, aiming to grow its network from the current 30 outlets to more than 100 in the years ahead.
Speaking at the annual leaders’ summit of the Kenya Teachers SACCOs Association in Kisumu, Thumbi said shareholders were injecting fresh capital as both the balance sheet and overall capital base continued to strengthen. He underscored that SACCO partnerships remain pivotal to the bank’s growth trajectory.
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The model reflects a broader shift in the financial sector, where banks provide capital-intensive and compliance-heavy services such as trade finance and liquidity support, while SACCOs leverage their deep-rooted community presence and distribution networks.
At the summit, KETSA, which brings together teachers’ SACCOs across the country, focused discussions on innovation and repositioning cooperatives as comprehensive financial service centres.
With more than 300,000 teachers in Kenya and an extended ecosystem estimated at up to five million family members and dependants, the sector represents substantial untapped opportunity beyond traditional savings and lending.
KETSA leaders called on SACCOs to modernise operations, embrace digital tools, attract younger demographics, and diversify offerings to include products such as health savings schemes, pooled insurance solutions, and sector-specific support programmes.
