AFFORDABLE HOUSING
Savings and Credit Cooperative Organizations (SACCOs) have become the preferred providers of affordable and easily accessible loans for individuals aspiring to own homes.
According to the 2025 Economic Survey released by the Kenya National Bureau of Statistics (KNBS), 31.8% of real estate companies partnered with SACCOs for financing arrangements in 2023. This trend indicates the growing importance of SACCOs compared to other financial institutions.
A survey conducted by the Sacco Societies Regulatory Authority (SASRA) last year also highlighted SACCOs’ role in promoting inclusive and sustainable homeownership. The results were published in the Sacco Supervision Annual Report 2023.
The SASRA report detailed the considerable impact of Savings and Credit Cooperative Societies (SACCOs) on homeownership and the socio-economic advancement of their members. It revealed that SACCOs are critical to the Kenyan economy by offering affordable lending options. A comprehensive Sectoral Lending Report indicated that regulated SACCOs allocated a total of Ksh 460.47 billion, with a substantial portion—Ksh 124.16 billion—representing 26.97% of total loans directed towards the land and housing sectors.
The report pointed out the positive role that SACCOs play in enhancing the financial well-being of their members and supporting key sectors of the economy. Their consistent funding underscores the trust that Kenyans place in SACCOs to help them achieve their dreams of homeownership and improve their socio-economic status.
According to the report, approximately 11 SACCOs have partnered with the Kenya Mortgage Refinancing Company (KMRC) to offer affordable mortgages with single-digit interest rates, enabling members to realize their dreams of owning adequate homes—goals that were previously unattainable due to high mortgage costs that excluded many.
In 2023, SACCOs revealed a strategic adjustment in their credit distribution priorities, affecting key economic sectors. The data indicates a slight change in sectoral lending, with notable shifts in allocations towards land acquisition, housing, agriculture, education, and trade.
Specifically, the land sector, which includes purchases and acquisitions, received Ksh 63.62 billion, accounting for 13.82% of total sectoral lending, down from 18.59% in the previous year. Similarly, housing—comprising direct purchases or construction—was allocated Ksh 60.57 billion, representing 13.15% of total credit disbursements, down from 14.65% in 2022. This trend suggests a decreased interest in real estate investments compared to the previous year.
In contrast, the agricultural sector saw a notable increase in credit allocation, receiving Ksh 78.10 billion, or 16.96% of the total, rising from 13.76% in 2022. This growth highlights a heightened focus on agriculture, with most funding directed towards crop production, particularly for cash crops like tea and coffee, followed by animal production, agricultural support services, agribusiness, and forestry. Notably, 42% of SACCO membership comes from the agricultural sector, emphasizing its importance to their financial stability.
Education is also a focus for SACCO lending, with Ksh 96.33 billion allocated—representing the second-largest share of total loans disbursed by SACCOs, at 20.92%. This funding, primarily aimed at covering school fees and related expenses, reflects a slight decrease from the previous year’s 21.98%. This indicates a sustained commitment to facilitating educational advancement, albeit with a minor reduction in proportionate terms.
The trade sector also recorded increased credit disbursements, receiving Ksh 58.19 billion, or 12.64% of the overall total, up from 10.85% in 2022.
