The Sacco industry reported a steady performance in key market parameters for the financial year ending on December 31, 2023, but there was slower year-to-year growth. According to data presented by Sasra during its third Sacco Industry Annual Regulatory Policy Roundtable 2024 in early June, the total assets of the 357 licensed and regulated Saccos increased to Ksh971.96 billion, up from Ksh890.30 billion recorded the previous year. This represents a 9.17% growth, which is 1.14 percentage points slower than the growth registered in 2022.
Deposits also rose to Ksh682.19 billion in 2023 from Ksh620.45 billion in 2022, marking a 9.95% increase but 0.11 percentage points slower. The loan book showed an increase to Ksh758.57 billion in 2023 from Ksh680.35 billion the previous year, reflecting an 11.50% increase and 0.26 percentage points slower year-on-year.
The asset base for DT Saccos rose to Ksh832.89 billion in 2023 from Ksh763.50 billion, while NWDT Saccos grew their asset base to Ksh139.06 billion compared to Ksh126.80 billion reported a year earlier. Additionally, the number of regulated Saccos with an asset base of Ksh5 billion and above increased to 53 from 47, with a combined asset base of Ksh712.82 billion, up from Ksh623.63 billion in 2022.
Furthermore, large-tiered DT Saccos increased from 42 to 47 with an asset base of Ksh672.57 billion, up from Ksh592.14 billion, while NWDT Saccos rose to six with Ksh40.25 billion in 2023 compared to five in 2022 with Ksh31.49 billion. On the other hand, regulated Saccos with an asset base of Ksh1 billion to Ksh5 billion decreased from 80 to 78 with Ksh176.41 billion, down from Ksh185.59 billion.
Regarding membership, it increased from about 6.42 million in 2022 to 6.84 million, representing a 6.57% jump, which, however, slowed down by 0.45 percentage points. Mr. Peter Owili from Sasra pointed out that while this is a challenge, it presents an opportunity for a change in strategy. He commented that six DT Saccos lost more than 20% of their members, with one reducing by between 10% and 20%, indicating negative growth. This reduction poses a challenge to Saccos on how they recruit members and the services they offer.
Mr. Owili emphasized that the business of the Sacco is about members and the level of confidence they have in improving their transactions. He suggested that despite the apparent increase, there are opportunities to capture the market. In 2023, 22 DT Saccos reported a membership growth of 20% and above, while 47 saw an increase between 10% and 20%. The majority, 76 DT Saccos, experienced a membership growth of 0% to 10%, with 22 DT Saccos losing between 0% and 10% of their members.
