By Jackson OKOTH

SHOFCO (Shining Hope for Communities) SACCO scooped 7 trophies at this year’s Ushirika Day 2025 Awards.

At a recently held event, officiated by Kenya’s Prime Cabinet Secretary Musalia Mudavadi and attended by Cabinet Secretary in charge of the Cooperatives docket, Shofco SACCO received 7 trophies, placing at the top as the best-performing Community-Based SACCOs in Kenya.

These annual awards are held to celebrate the best performing SACCOs in Kenya, based on the use of technology, credit management, deposits mobilization, member engagement, capitalization, risk management and member engagement.

 The SACCO also clinched trophy for Position 2 Best Performing NWDT SACCO and No. 2 Best in Risk Management, all awards won under the NWDT Community-Based SACCO category.

Shofco SACCO also won position (2) as Most Improved SACCO, Best in Capitalization (2), Best in Technology Optimization (3), and Best in Member Management (3), also in the NWDT Community-Based SACCOs segment.

The SACCO, which draws its membership from individual members, employees in public and private organizations, community groups, parishes, and any other registered groups

Its focus is on savings mobilization and credit initiatives in Kibera, Mathare, Mukuru kwa Njenga slums in Nairobi, Bangladesh in Mombasa, Kakamega and other informal settlements, where the Shofco NGO operates.

SHOFCO SACCO was incorporated in 2015 and started operations in March 2016 with a handful of staff as founding members. The SACCO is located in Kibra, Gatwekera. In 2018, the SACCO amended its bylaws to on board community members in June 2018.

According to audited financial statements for the year ended 31^st December 2024, released at the Society’s Annual Delegates Meeting (ADM) held on Tuesday March 18, 2025, SHOFCO SACCO saw its loan book grow significantly by 89% to KSh514,805,34, compared to KSh272,914,922 disbursed to members in 2023.

The Society’s Board Chairman and Founder Dr Kennedy Odede, says the SACCO’s tremendous success is a strong testament of the institution’s resilience, discipline, vision and an able leadership team.

“We have demonstrated remarkable growth and resilience, achieving significant milestones in the past year. Our financial performance has improved, with notable increases in loan disbursements, member deposits, and overall revenue, reinforcing our commitment to providing accessible and impactful financial solutions,” said Dr. Odede.

He said that the Society has pride and gratitude for the recognition it has received, given its focus of serving those individuals at the bottom of the pyramid who are often left behind of locked completely from the formal financial systems.

He said the awards validates its mission-that dignity and financial empowerment belong in every informal settlement and underserved community in Kenya.

SHOFCO SACCO operates in a unique and unchartered territory that if rife with high risk of loan repayment defaults, given that most of its members are unemployed and work mostly in the unpredictable informal sectors of the economy. Most of its members thus have no steady incomes that can offer guarantees in loan repayments, while also running businesses that are unstable and seasonal in nature.

Being awarded position 1 in Credit Management, according to Dr Odede, is proof that SHOFCO SACCOs strategies in dealing with the unbankable individuals, is working. The Society is riding solely on trust, community spirit and accountability as well as robust digital platforms, to drive its business and provide credit/loan products to its members.

SHOFCO SACCO offers savings products, microloans, business development support, and financial literacy training to thousands of low-income earners, particularly women and the youth living in slum areas.

While the Society had set out to recruit 8,000 new members in 2024, it brought in an impressive 10,714 newcomers, blowing its target by 33.92%. The SACCO attributes success of its aggressive recruitment and appeal to targeted outreach, digital onboarding, and enhanced member engagement programs.

Audited accounts for 2024 shows that the Society more than doubled its balance sheet size to KSh 662.8Million in 2024 from KSh389.9 Million in 2023, a significant 70% growth. The financial organization also grew its revenues to KSh68,578,185, compared to KSh39,505,247 in 2023, an increase of 74%. Members’ Deposits grew by 62% to KSh 362,847,929 compared to KSh224,069,652 in 2023.

According to Dr Odede, the Society has recorded robust growth in most of the financial parameters due to sound financial management and prudent risk practices and optimal investment strategies that ensure maximum returns.

As the Society steps into the future, it has focused on strengthening financial sustainability, diversifying income streams, and enhancing service delivery.

SHOFCO, the umbrella under which the SACCO operates, is s a leading community-based organization mobilizing the largest network of social groups in Kenya to provide holistic, needs-driven services and redefine the potential of citizen-led change.

The NGO has partners across the public, private, and social sectors, set to deliver best-in-class services, ranging from health and education to economic and social empowerment programs.

 These services are informed by community advocacy platforms, which equip individuals with the knowledge and skills to drive meaningful change with communities and the society.