The Kenya Financial Service Association (KFSA) has reported impressive growth across key financial indicators, a development highlighted during the Annual General Meeting (AGM) of the Malava Financial Service Association held at Friends Church in Malava.

Speaking at the meeting, KFSA Chief Executive Officer Emma Kimani praised the Malava FSA branch for its outstanding performance and inclusive membership model. She noted the branch’s near gender balance within community-based financial organizations and commended its role in promoting financial inclusion. Kimani also pointed to KFSA’s expansion across eight counties and urged the Malava branch to intensify member recruitment efforts to further strengthen its reach.

She encouraged members to continue saving their funds in banks, noting that their money is well insured and earns interest, unlike traditional methods of saving such as keeping money under mattresses, hiding it under stones, or storing it in informal containers.

The AGM, led by Malava FSA Branch Manager Ito Mukhwana, revealed notable growth in several areas. Membership rose from 15,722 to 17,066, while share capital increased from KSh 57.2 million to KSh 65.8 million. Loan disbursements grew from KSh 88.3 million to KSh 97 million, with interest income rising significantly from KSh 19.5 million to KSh 25.8 million.

Members’ savings also improved, climbing from KSh 27.8 million to KSh 29.9 million. The number of loan groups expanded from 740 to 775. The branch now boasts over 17,000 members, total assets worth KSh 150.8 million, and non-performing loans estimated at KSh 11 million.

While loan repayment performance improved compared to 2024, officials acknowledged that low repayment rates remain a concern requiring continued attention. Mukhwana urged members to avoid auctioneer penalties by repaying their loans on time and emphasized the importance of unity and teamwork among members.

He stated that FSAs aim to move members from financial instability to stability, then to independence, and ultimately to financial freedom, where they can fully enjoy the benefits of their savings. He also encouraged members to use their money wisely rather than allowing money to control them.

As part of its expansion strategy, the Malava FSA purchased a plot valued at KSh 970,000 in Ingavira, where it plans to construct a new branch at an estimated cost of KSh 4.8 million. The facility will include offices, a customer care desk, and a strong room to enhance service delivery.

The AGM also highlighted a gender imbalance in membership, with women accounting for approximately 70 percent, although male membership has grown compared to last year. Leaders called for increased participation from men and youth to strengthen economic empowerment across all demographics.

Members were educated on the importance of savings, loans, financial stability, empowerment, and table banking. They were also informed about how microfinance can improve living standards through gradual savings and borrowing to invest in businesses and education.

Chemuche ward MCA Geoffrey Sikolia encouraged members to invest their savings in financial institutions, repay loans promptly, and grow their shares to build financial resilience.

Looking ahead, KFSA plans to introduce mobile banking services such as M-Pesa and Airtel Money to streamline transactions and reduce reliance on cash. Additionally, a medical cover scheme is under consideration to provide members with health benefits and improve overall welfare.

However, challenges remain. Some members were noted to withhold information instead of encouraging others to join financial institutions. Late loan repayments, especially those leading to auctioneer involvement, were also cited as discouraging factors for potential members.