Kenya’s Sacco sector experienced remarkable growth in 2024, with total assets reaching a record KSh1.8 trillion, reflecting a 10 per cent increase from the previous year. This surge underscores the growing confidence and participation of millions of Kenyans in cooperative financial institutions, with members enjoying an average return of 10 per cent in dividends.
The sector’s impressive performance is supported by a robust legal and regulatory framework designed to safeguard members’ savings. The Sacco movement currently holds around 30 per cent of Kenya’s savings, making it a critical pillar of the country’s financial landscape. The establishment of the Sacco Societies Regulatory Authority (SASRA) plays a pivotal role in ensuring regulatory compliance and protecting deposits. SASRA conducts regular inspections and enforces guidelines to maintain the integrity and safety of the sector.
The loan portfolio of Saccos stands at over KSh1.1 trillion, while savings have surpassed KSh1.2 trillion, highlighting the sustained trust and active participation of members. In Nairobi alone, Saccos disbursed more than KSh35 billion in interest and dividends to members by early 2025, showcasing the sector’s stability and profitability.
Looking forward, there is a clear push for the modernization and digital transformation of the sector. Plans are underway to introduce a central liquidity and shared digital platform that will enable cooperatives to collaborate more effectively. This platform is expected to facilitate shared technology adoption and inter-lending among cooperatives, enhancing their operational efficiency and competitiveness.
Leaders in the sector are also advocating for legislative reforms to allow Saccos to integrate more deeply into the national payment system. This move aims to expand the range of services offered by Saccos, improving financial inclusivity and reaching marginalized communities. Enhancing access to financial services is seen as vital to driving inclusive and sustainable development.
Investment in information and communication technology (ICT) and customer-focused research has been a priority for many Saccos. Capacity building initiatives are ongoing, with training programs for Sacco leaders conducted through regional cooperative bodies. These efforts are essential as some Saccos are growing significantly, with projections indicating that within three years, several could have assets exceeding KSh100 billion. Managing such large institutions requires skilled leadership to ensure continued growth and stability.
The cooperative movement’s contribution to addressing social and economic challenges cannot be overstated. Saccos have been instrumental in advancing food security, housing, access to clean water, and environmental sustainability. These impacts align with broader national and global goals for inclusive development.
As part of ongoing efforts to strengthen community engagement and social responsibility, the sector is planning various activities. These include blood donation drives, tree-planting exercises, and exhibitions. Additionally, there is an ambitious plan to secure 100 acres within Ngong Forest to establish a cooperative forest primarily composed of fruit trees. This initiative will allow Saccos to actively participate in environmental conservation and benefit from the sustainable harvesting of forest resources.
The growth trajectory of Kenya’s Sacco sector is a testament to the resilience and potential of cooperative financial institutions. With strong regulation, technology adoption, and capacity building, the sector is poised not only to safeguard Kenyans’ savings but also to offer increasing financial rewards and broader socio-economic benefits. The future looks promising as Saccos continue to evolve into more modern, inclusive, and impactful institutions.
