All About Tower Sacco That Paid Members 13% Interest on Deposits in 2026

SACCOs have played a central role in how Kenyans save, borrow, and build wealth. From funding education to helping members buy land or start businesses, these member-owned institutions have quietly shaped financial progress across the country.

But in an era where Kenyans are demanding better returns, faster services, and more flexible financial products, SACCOs are increasingly under pressure to deliver more value.

One SACCO that has recently stood out is Tower Sacco, particularly after announcing 13% interest on deposits and 20% dividends on share capital for the 2025 financial year. The payouts to the investors translated into Ksh2.88 billion paid out to members.

Tower Sacco was founded in 1976 by a group of primary school teachers in Ol’Kalou to create an opportunity for its members to save and access affordable credit.

Over the years, it has grown into one of Kenya’s largest SACCOs, with over 250,000 members and an asset base of more than Ksh34.6 billion

At the end of 2025, loans and advances stood at Ksh25.2 billion, while its total revenue was Ksh5.28 billion

The SACCO is regulated by the Sacco Societies Regulatory Authority (SASRA) and operates 29 outlets across 8 counties, supported by over 300 agents, as well as mobile and internet banking platforms.

Tower SACCO’s Savings Products

Tower Sacco offers a wide range of savings accounts tailored to different financial needs.

1. Savings Account (FOSA)

This is a flexible, everyday account that allows members to access funds easily through USSD (*655#), mobile banking, agents, and ATMs.

Key features of this account are that there are no ledger fees or hidden charges. Members withdraw up to Ksh300,000 daily via mobile banking, and there is no notice required for large withdrawals. Furthermore, members  are allowed to appoint someone to transact on their behalf upon filling a mandate form.

2. Premium Deposit Account

Designed for groups, farmers, businesses, and institutions, this account encourages structured saving and has no ledger fees.

The minimum contribution is set at Ksh500 monthly with a Ksh500 registration fee and requires a 60-day notice for withdrawal.

For this account, loan eligibility is based on consistency.

3. Fixed Deposit Account

For members looking for predictable returns, this account offers a minimum investment of Ksh20,000 with flexible periods (3, 6, 9, or 12 months). There is no notice needed for withdrawing the fixed amount before or after the maturity date.

4. Smart Savers Account

If you are a business person, Boda Boda rider, member of a Chama, Merry-Go-Round member, into table banking groups or you basically have a savings goal, this account is for you

It is a more flexible savings option designed for individuals with specific financial goals, such as starting a business or making a large purchase. With this account, there is no minimum balance, and interest is calculated daily and paid monthly.

Holders of the account enjoy flexible top-ups with no limits, have no minimum balance nor ledger fees, track progress via a mobile app, are free to reinvest interest or transfer it to another savings account and earn competitive interest.

Equally, the SACCO has specialised accounts such as a Junior Account for children, a Golden Years Account for retirement savings, and an Education Account for school fees planning.

The credit union also has a Holiday Account for travel savings.

Tower SACCO Loan Products

Like most SACCOs, Tower SACCO offers a variety of loan products to its members. These include salary-based loans, asset financing, and business loans. Here’s a breakdown of some of their popular options:

1. Salary Loans

These loans are available to members whose employers have a check-off arrangement with the SACCO. Approval is typically done within hours.

Types of salary loans include:

Vuka Loan: A development or buy-off loan ranging from Ksh 100,000 to Ksh 3.5 million, repayable over up to 96 months. You do not need to be a Tower SACCO member to qualify, and no guarantors are required. Your salary acts as collateral.

Normal Loan: Members can access loans of up to five times their savings.

FOSA Loan: Members can borrow up to six times their savings.

Emergency Loan: Designed for urgent needs, these loans are repayable within 12 or 24 months. There is no fixed limit—it depends on your ability to repay.

Salary Advance: Members can access up to Ksh 50,000, provided they earn a minimum salary of Ksh 2,300.

2. Asset Finance Loan

These are short-term loans aimed at helping members purchase movable assets such as motor vehicles, tractors, or specialized machinery.

3. Premium Loans

Short-term loans designed to support business owners with working capital needs.

4. Mortgages

These loans are ideal for members looking to build rental properties or business premises. No guarantors are required, as the loan is secured using a title deed. There is no maximum loan limit.

Tower SACCO also offers Kilimo Advance Loans (for dairy and horticulture farmers), Mazao Bora Loans, Mapato Loans, and FOSA Flex Loans.

To qualify for most loans, members need to maintain a minimum deposit of Ksh 20,000 and hold a capital share of Ksh 10,000. Some loans, however, are available even to non-members, giving wider access to those who need them.

Wrapping Up

SACCOs remain one of the most powerful financial tools available to Kenyans. They combine savings discipline, access to affordable loans, and the benefit of shared ownership.

However, as with any financial decision, the key is alignment. Before joining, it is important to evaluate your savings goals, your borrowing needs and your ability to remain consistent in contributions