By Lenah Bosibori
Karura Community Sacco (KCS) has launched an artificial intelligence-powered call center to enhance customer service, marking a significant step in its digital transformation as it reported strong financial performance during its latest Annual General Meeting in Nairobi.
Speaking at the launch, CEO Gideon Gitonga said the system, developed in partnership with Safaricom, will improve communication between the Sacco and its growing membership, including those in the diaspora.
“As the organization grows, communication becomes more complex. This system will significantly improve how we engage with our members,” he said.
The Sacco has also upgraded its core banking platform, following a technical hitch in 2025, through a partnership with Microsoft, enabling improved integration, enhanced mobile services, and greater operational efficiency.
Gitonga noted that the transition followed a system failure last year that disrupted services and triggered member complaints, prompting the Sacco to adopt a more reliable and scalable platform.
“Challenges pushed us to rethink our systems. We now have a stronger, more agile platform that supports our growth and improves service delivery,” he said.
The digital shift comes amid strong financial growth, with the Sacco’s asset base rising to KSh 501 million and revenues nearly doubling to KSh 74 million over the past year.
Karura Community Sacco Chairman Epainito Chahale said the institution recorded strong performance over the past year, attributing the growth to effective leadership, dedicated staff, and growing member confidence.
“Generally, we would say the Sacco has performed very well this year compared to last year. This is because of the good leadership we have, very competent staff, and committed members who trust the Sacco. We have worked hard to build that trust,” he said.
Chahale noted that the improved performance is reflected in higher returns to members, with dividends rising from 7% in the previous financial year to 8%, while interest on share capital increased from 8% to 10%.
“We believe in giving back to the community through the profits we generate. One of the key ways we do this is by supporting the most vulnerable, through scholarship programs for needy children, which help empower the next generation. As leadership, we are committed to ensuring that the community grows alongside the Sacco. We do not want to leave anyone behind. That is why we also support local initiatives such as the Karura Community Football Club, which nurtures talent and strengthens community engagement.”
His remarks come amid broader sector improvements highlighted by the Sacco Societies Regulatory Authority, which recently reported a decline in non-performing loans to a five-year low, signaling increased stability across the Sacco industry.
Loan performance also improved significantly, with non-performing loans dropping from 19.5% to 9.5%, driven by stricter lending practices, enhanced monitoring systems, and a shift toward collateral-backed lending, which now accounts for about 85% of the loan book.
“With structured lending and better systems, members are able to repay more effectively, strengthening overall financial stability,” Gitonga said.
The Sacco is targeting a further reduction in non-performing loans to 5%, supported by flexible loan restructuring options that make repayment more manageable for members. Leadership attributed the Sacco’s performance to strong governance, competent staff, and growing member trust, noting that credibility and accountability remain central to its operations.
The institution is also advancing toward full regulatory compliance, with capital adequacy at 13% above the required threshold and institutional capital standing at 47%. Officials expect certification from the regulator within the year.
Beyond financial services, the Sacco continues to invest in community initiatives, including scholarships for needy students and support for youth programs such as the Karura Community Football Club.
With plans to expand membership, strengthen digital platforms, and grow investments, Karura Community Sacco is positioning itself as a resilient, technology-driven institution focused on both financial sustainability and social impact.