A Murang’a-based savings and credit cooperative (Sacco) has raised concerns that the ongoing tensions between the United States – Israel and Iran could negatively affect its financial performance and the livelihoods of its members.
The management of Amica Sacco, whose membership largely comprises micro, small and medium enterprises (MSMEs) as well as tea and coffee farmers, observes that the ripple effects of the conflict could disrupt incomes and strain financial stability among its members.
Speaking during the Sacco’s Annual General Meeting held on Tuesday, Chief Executive Officer (CEO) Dr. James Mbui expressed hope that the conflict would be resolved soon, noting that prolonged instability could have far-reaching economic consequences.
“Our members depend heavily on tea and coffee exports, some of which go to markets that may be affected by the conflict,” said Mbui, adding “Any disruption in these markets could directly impact their earnings.”
He further warned that a possible rise in global fuel prices, often associated with geopolitical tensions, could drive up production and transportation costs for farmers.
This, he noted, would ultimately reduce profit margins for producers already grappling with existing challenges.
Mbui called on the government to put in place measures to cushion Saccos and their members against potential shocks arising from the situation.
“The tea and coffee sectors have continued to face volatility due to global price fluctuations and climate variability, creating income uncertainty for many farmers,” he said.
“These dynamics inevitably influence members’ saving patterns, borrowing behavior and repayment capacity,” the CEO continued,
In light of these uncertainties, Mbui emphasized the need for financial institutions like Saccos to remain cautious and adaptive.
“In this environment, Saccos like ours must remain prudent in lending, strengthen risk management and continue supporting members through reliable financial services,” he added.
Despite the looming concerns, the CEO noted that Amica Sacco reported strong financial growth last year.
He noted that deposits increased by Sh1.34 billion in 2025, while the loan book expanded to Sh9.23 billion.
The sacco’s revenue also rose to Sh1.59 billion, reflecting resilience amid a challenging economic environment.
Mbui attributed part of this growth to Sacco’s investment in digital transformation revealing that digital platforms now facilitate 74.3 per cent of all transactions and account for 65 per cent of total withdrawal value, underscoring a shift towards more convenient and efficient service delivery.
At the same time, the Sacco assured members of its support during difficult times with Mbui stating that the institution is open to restructuring loans for members facing financial challenges, in a bid to ease their burden and sustain their economic activities.
As global uncertainties persist, the Sacco remains cautiously optimistic while urging proactive measures to safeguard the financial wellbeing of its members.
By Bernard Munyao and Purity Mugo
