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SISDO is a specialized micro finance institution registered as a Non-Governmental Organization (NGO) under the Non-Governmental Organizations Coordination Act, 1990. SISDO was established in 1993 as Smallholder Irrigation Schemes Development Organization (SISDO) through the advice of the Ministry of Agriculture and approval of the Ministry of Economic Planning with the mandate to develop the smallholder irrigation sub-sector. SISDO's mission then was to develop the irrigation and drainage systems for small-scale farmers on a sustainable basis and to promote horticultural production through provision of credit.

In the year 2003, the institution became a full-fledged Micro finance Institution (MFI) and in 2006 changed its name to SISDO. Today, SISDO is an independent MFI with its own governance and management structures with a focus on rural and urban financial services delivery to low-income communities. This strategy shift was undertaken to provide SISDO with the latitude to become more flexible and expand its outreach on a sustainable basis. SISDO continues to target smallholder crop, dairy farmers and more recently agribusinesses and other micro entrepreneurs with on-going activities that require capital to fund growth. The target clients are characterized by lack of access to financial services from formal financial institutions.