WOCCU and WFCU partner with Kenyan SACCOs to help close SME financing gap
One-year initiative delivers US$ 2.5 million in financing to small business owners often overlooked by traditional banks
NAIROBI, August 28, 2026 — Ninety-three small and medium enterprises [SMEs] in Kenya have secured a combined US$ 2.5 million in financing through a year-long initiative led by World Council of Credit Unions [WOCCU] and Worldwide Foundation of Credit Unions [WFCU], expanding access to capital for business owners often overlooked or turned away by traditional banks.
Backed by WFCU donors and partners throughout the global credit union movement, WOCCU worked with three Savings and Credit Cooperative Organisations [SACCOs] – Unaitas, Boresha SACCO and Kenya Police SACCO – and the African Confederation of Co-operative Savings and Credit Associations [ACCOSCA] Academy to challenge a long-standing assumption in Kenyan lending: that financing SMEs was too risky. In some cases, the challenge was not a lack of collateral, but limited capacity to assess business risk and repayment capacity.
Through technical assistance tailored to each SACCO, staff learned to evaluate businesses based on cash flow and prospects – not solely on existing assets – and to build stronger, lasting relationships with entrepreneurs.
The results demonstrate the impact of that shift. The 93 SMEs maintained non-performing loans below 1 percent – well below the program’s target ceiling. The initiative also produced five training manuals, which were piloted with SACCO staff through the ACCOSCA Academy and designed for use well beyond the three participating institutions.
Gaceri Wallace experienced that impact firsthand. She and her husband opened a small electrical and electronics shop in Thika sixteen years ago, growing it slowly as capital allowed. A loan through Unaitas let her stock enough inventory to meet demand instead of turning customers away. The business has since expanded to two outlets, added two employees, and monthly sales have grown from Ksh 1.5mln [US$ 11,600] to Ksh 2.0mln [US$ 15,500] – profits that are helping her family build a home.
Geoffrey Kagwanja Karuma built a similar success story in Murang’a County, where he began producing animal feed after seeing local farmers struggle to find a reliable source of quality feed. Financing through Unaitas let him buy in greater volume and reach farmers, cooperatives and retailers across the area. The business now generates roughly Ksh 1.6mln [US$ 12,400] in monthly sales, with growth that has rippled through the local supply chain.
“It has really improved my life, and I am truly grateful,” said Jacinta Wanjiru, another SME owner who found financing through the programme.
Inside the SACCOs, the change extended beyond loan volume.
“The business of the member is more important than the collateral,” said Beatrice Mathu, Relationship Manager at Unaitas SACCO, describing how staff learned to evaluate applicants.
Nephat Murimi, SACCO’s Head of SME Lending at Unaitas, said the new appraisal tools have laid the groundwork for a dedicated SME strategy the institution plans to introduce across all branches.
Kenya’s regulated SACCO sector manages more than Ksh 1 trillion [US$ 7.7 billion] in assets, while nearly 29,000 credit unions across Africa serve 46mln members. To extend the initiative’s reach, WOCCU is working with the ACCOSCA Academy to distribute the five training manuals – covering SME market research, loan appraisal, Know Your Customer/Anti-Money Laundering [KYC/AML], emerging risk and Environmental, Social, and Governance [ESG] – to SACCOs across Kenya and the broader region.
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