Mwalimu National DT Sacco, Kenya's largest Sacco by assets, has posted a 76.3% surge in surplus to 1.27Bn for the year ended 31 December 2025, its strongest result since 2020, as loans expanded 19.3% to 56.3Bn and total assets crossed 76.3Bn.
- •Net interest income grew 11.0% to 3.53Bn, but administrative expenses rose 17.7% to 3.00Bn, outpacing core revenue growth.
- • Impairment charges rose 5.4% to 960.3M, extending a trajectory that has seen provisions rise 34-fold from 27.8M in FY2022.
- •SASRA flagged Mwalimu Sacco in 2023 for breaching the 8% institutional capital to total assets threshold, which fell to 7.7% following the Spire Bank divestiture.
Loans and advances grew 19.3% to 56.3Bn, the fastest single-year expansion since 2019, into a member base whose repayment capacity has been squeezed by government tax increases on teacher salaries. Management acknowledged NPLs above SASRA's 5% regulatory floor as recently as 2024.
The SASRA Supervision Report 2024 showed industry NPLs rising to 8.2% from 7.5%, driven by borrower distress. Mwalimu's credit quality, against that backdrop and with a loan book growing at nearly double the industry rate, warrants close scrutiny.
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Interest Income (Loans) | 8.76Bn | 7.99Bn | ▲+9.6% |
| Net Interest Income | 3.53Bn | 3.18Bn | ▲+11.0% |
| Other Income | 1.84Bn | 1.14Bn | ▲+61.4% |
| Administrative Expenses | (3.00Bn) | (2.55Bn) | ▲+17.7% |
| Impairment Charges | (960.3M) | (911.4M) | ▲+5.4% |
| Net Operating Profit Before Tax | 1.41Bn | 856.9M | ▲+64.3% |
| Surplus for the Year | 1.27Bn | 718.9M | ▲+76.3% |
| Loans and Advances to Members | 56.3Bn | 47.2Bn | ▲+19.3% |
| Member Deposits | 56.5Bn | 52.2Bn | ▲+8.3% |
| Total Assets | 76.3Bn | 68.9Bn | ▲+10.8% |
| Total Equity | 11.4Bn | 10.0Bn | ▲+13.7% |
| Dividend Rate | 13.00% | 13.00% | ▶ Unchanged |
| Interest on Member Deposits | 10.05% | 10.00% | ▲+5bps |
Lingering Questions
Other income, a category not itemized in the abridged statements, surged 61.4% to 1.84Bn and was the single biggest driver of profit growth in the year.
Without visibility into its composition, whether fee income, investment gains, property disposals, or a reversal tied to the KSh 44.9Mn tax liability that cleared from the balance sheet this year, the quality of the FY2025 surplus cannot be fully assessed.
The surplus, if retained, should support restoration of institutional capital to total assets threshold. But in 2026, the Sacco faces its largest single scheduled write-off under the Spire capital restoration plan: KSh 1.70Bn in the same year it is chasing a KSh 100.0Bn asset target that requires double its current growth rate.
Total equity grew 13.7% to 11.4Bn. The dividend held at 13%, though with surplus nearly doubling, members at the next ADM will note that peer Saccos paid 15% to 20% on smaller bases.
