All You Need to Know About Mwalimu National Sacco 

Mwalimu National SACCO is the largest SACCO in Africa by asset size, primarily serving teachers and education professionals. It was established in 1974 to offer financial solutions to teachers and education professionals, the SACCO has expanded to accommodate a broader range of members, including civil servants and businesspersons.

Mwalimu enjoyed vibrant growth for many years - given the large number of teachers. In 2014, the SACCO bought a majority stake in Spire Bank for Ksh2.4 billion, hoping to expand its financial services. 

However, the bank struggled with heavy losses, forcing Mwalimu to inject an estimated Ksh10 billion over the years to keep it running. As the losses mounted, the SACCO was blocked by the Sacco Societies Regulatory Authority (SASRA) from adding more funds, and in 2023, it struck a deal with Equity Bank to take over Ksh1.32 billion in deposits and Ksh945 million in loans, ensuring that members could access their money.

The Spire Bank purchase spelled a challenging time for Kenya’s largest SACCO. At around the same time, Mwalimu was fighting a tax dispute with the Kenya Revenue Authority (KRA), which initially demanded Ksh1.2 billion in unpaid taxes. After a review, the Tax Appeals Tribunal reduced the amount to Ksh44.9 million, but Mwalimu still challenged the decision in court. The High Court dismissed the appeal, stating that the tribunal had already made a final ruling on the facts of the case. 

In 2024, the Sacco faced more financial challenges after its institutional capital to total assets (ICA) ratio dropped from 10.17% in 2022 to 7.7%, falling below the 8% regulatory threshold set by SASRA. This decline was largely attributed to the issues with Spire Bank, which significantly reduced the Sacco’s financial flexibility. The write-off of the failed bank’s liabilities affected Mwalimu’s liquidity, making it one of the institutions that struggled financially that year. However, by streamlining its books and the deal with equity for Spire Bank, the Sacco took steps towards recovery, positioning itself for improved financial stability in the future.

Here are some of its recent returns for members: 

For year ended December 2023: 

• 11.5% in dividends on shares
• 10% interest on deposits

For year ended December 2022: 

• 10.5% in dividends on shares
• 10% interest on deposits

Mwalimu is yet to announce its dividends and interests for the year ended December 2024. 

Read Also: All You Need to Know About Stima Sacco

‍Mwalimu Sacco’s Membership Categories and Requirements

Mwalimu National Sacco membership is open to individuals in the following categories:

• Teachers Service Commission (TSC) Secretariat
• TSC Secondary School Teachers
• TSC Lecturers
• TSC Primary School Teachers (Diploma or Degree holders)
• Spouses and children of members in formal employment
• Ministry of Education staff
• Employees of Mwalimu National Sacco and its subsidiaries

Mwalimu Sacco’s Financial Products and Services

Risk Fund

A compulsory insurance scheme where each member contributes Ksh400 monthly. The fund covers loan balances for deceased members and provides last expense benefits while doubling the shares payable to beneficiaries.

Burial Benevolent Fund (BBF)

A welfare fund supporting members with funeral expenses. Monthly contribution: Ksh150. Benefits include:

• Member: Ksh60,000
• Spouse: Ksh55,000
• Children (max 6): Ksh35,000 each
• Own Parents: Ksh20,000
• Parents-in-law: Ksh15,000

Read Also: Frequently Asked Questions About Saccos in Kenya

Mwalimu Sacco’s Loan Requirements

Mwalimu National Sacco offers various loan facilities:

General Loan Requirements

• Fully completed loan application form
• Most recent certified pay slip (not older than two months)
• Copy of National ID/valid passport
• Guarantors who have contributed for at least three months
• Members must have actively contributed for at least three months

Loan Guarantee and Security

• Loans require guarantors who are also active Sacco members
• Guarantors and applicants must have savings equal to or greater than the loan amount
• Members can self-guarantee if loan amount is equal to savings

Loan Amount and Processing Time

• Borrowing limit: 3 to 6 times one’s savings (subject to third-take-home rule)
• Processing time: Up to 4 working days, emergency loans take 2 days
• No penalty for early loan clearance

Mwalimu Sacco’s Savings and Deposits

Mwalimu National Sacco operates savings and deposit accounts for members:

• FOSA Account: Members automatically get a FOSA account upon joining
• Fixed Deposit Account: Earns interest on locked savings
• Mwalimu ATM/MasterCard: Available upon application, usable across Kenswitch ATMs

Read Also: I Took a Ksh500K Sacco Loan and Did Not Pay Any Interest

Mwalimu Sacco Digital Banking

Mwalimu Sacco provides mobile banking services through Go-Mobile, powered by Spire Bank. Services include:

• Balance inquiry
• Salary advances
• Mini statements
• Transfers between Mwalimu Sacco and M-Pesa

Mwalimu Sacco Account Access and Withdrawal

Deposits Reflection Time

• M-Pesa deposits: 24 hours (on working days)
• Local bank deposits: 12-48 hours
• Diaspora deposits: 2-4 working days

Account Access Methods

1. *USSD (809#) – Login via a temporary PIN sent upon registration
2. Web Portal  – Activate and access online
3. Mobile App – Download and log in after activation

Mwalimu Sacco Membership Withdrawal and Share Offsets

Members who wish to withdraw must:

• Submit a written withdrawal request
• Ensure all guaranteed loans are re-guaranteed before refunds are processed
• Offset any outstanding loans before full withdrawal is approved

Partial withdrawal of shares is only allowed for retired members.

Read Also: 3 Types of Accounts to Know When Saving in a Sacco

Requirements for Joining

To become a member, applicants need to submit the following:

• A fully completed membership application form
• A copy of the National Identity Card (both sides)
• An original, current pay slip
• Three recent passport-size photographs

Applications can be submitted in person at Mwalimu Towers, Upper Hill, Nairobi, or at any Mwalimu National Sacco branch.

Conclusion

Despite challenges over the last years, Mwalimu National Sacco remains a key financial institution for teachers and education professionals in Kenya. Through its diverse loan and savings products, digital banking services, and member welfare programs, the Sacco continues to support financial growth and stability for its members.

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