Loans and credit facilities to the land and housing sector accounted for the largest share of SACCO lending in 2025, reaching KSh 157.2 billion, or 26.35% of total lending, according to SASRA.
This was an increase from KSh 137.12 billion, which represented 25.26% of the industry’s loan book in 2024. The figures point to sustained demand for real estate-related financing within the SACCO sector.
The trend is consistent with findings in the Economic Survey 2026, which reported that the construction sector grew by 6.8% in 2025, compared with 0.7% in 2024. The expansion was primarily driven by increased civil works, particularly residential building development, which supported demand for SACCO financing.
The education sector remained the second-largest recipient of SACCO lending for the third consecutive year. In 2025, SACCOs disbursed KSh 124.51 billion to the sector, representing 20.87% of total industry lending.
The sector’s continued prominence reflects sustained demand for education financing among SACCO members.
SASRA expects the prevailing lending pattern to persist as SACCOs align their credit strategies with the socioeconomic needs and priorities of their members.
Agriculture accounted for KSh 110.74 billion, or 18.56% of total SACCO lending in 2025, compared with KSh 108.80 billion, representing 20.05% of the loan book in 2024.
The sector’s share of lending declined despite an increase in the amount disbursed. This trend coincided with slower agricultural growth, with the Economic Survey 2026 reporting growth of 3.15% in 2025, down from 4.4% in 2024, largely attributed to adverse weather conditions.
During 2025, SACCO lending to trade, health, consumption, social services, manufacturing and other service industries expanded moderately, reflecting a gradual shift towards supporting a broader range of economic activities.
Conversely, education, agriculture, finance, investments and insurance recorded slight declines in their respective shares of total SACCO lending, indicating a rebalancing of credit allocation across sectors.
Lending to finance, investments and insurance declined to KSh 32.42 billion in 2025, accounting for 5.43% of the SACCO industry’s loan book. The decline suggests a moderation in credit allocation to financial intermediation activities, potentially reflecting changing risk considerations and shifting sectoral priorities.
