Savings and credit cooperative societies (SACCOs) are expanding their digital financial services as they face increasing competition from commercial banks and digital credit providers licensed by the Central Bank of Kenya (CBK).
According to the latest industry report by the Sacco Societies Regulatory Authority (SASRA), the number of approved digital financial products offered by SACCOs rose by 17.97%, from 345 in 2024 to 407 in 2025.
The number of SACCOs offering these products also increased from 236 to 267 over the same period, reflecting growing adoption of technology to improve access to financial services and strengthen competitiveness.
SACCOs have also expanded alternative service delivery channels, including agency banking, USSD platforms and internet-based applications, to reach more members and improve operational efficiency.
The SACCO agency model recorded growth, with the number of agents increasing from 4,247 in 2024 to 4,377 in 2025. The agents were operated by 40 SACCOs in 2024 and 42 in 2025.
Despite these developments, the sector continues to rely heavily on third-party financial institutions, particularly commercial banks and fintech companies, to deliver services through alternative channels.
SACCOs also face structural constraints, including limited access to the National Payments System and the absence of a dedicated liquidity facility to support institutions experiencing financial distress.
SASRA said it remains committed to promoting stable, innovative and resilient SACCOs that protect members’ interests, advance financial inclusion and contribute to Kenya’s socioeconomic development.
