With the recent developments in the co-operative sector, so much change has elevated the movement, giving it new status.
Expectations are high that with a fully-fledged Ministry for Co-operatives, significant changes in the pipeline are expected to elevate the status of the state department of co-operatives development that is currently running affairs of the co-operative movement.
Come February 2023, the state-sponsored Hustler Fund plans to enter its second phase and will target the Co-operative movement to disburse its products to medium- and small-sized enterprises.
 According to Permanent Secretary State Department for Cooperatives Patrick Kilemi, an estimated 16 million Kenyans are already registered on the Hustler Fund Platform, and over Ksh 11 billion in personal loans have been disbursed to Kenyans.
Apart from creating a new Ministry to run affairs of the Co-operative Sector, expectations are high that there will be a lot of movement toward reviewing the outdated Cooperative Act Cap 490 to align it to the new constitution, which considers the Co-operative sector as a devolved function.
The long-awaited inter-Sacco lending facility and the Sacco Deposits Guarantee Fund are policy issues that are expected to sail through Parliament and be implemented by both the Cooperatives Ministry and National Treasury.
 Homeownership is now possible through Saccos
Perhaps the most transformative change in the Co-operative sector is how members acquire houses using the Affordable Housing Scheme- through the state-run Kenya Mortgage Refinance Company (KMRC).
At present, SACCOs provide short to medium-term loans at an average interest rate of 12 per cent per annum. The government contribution to this affordable housing scheme is two- prong.
The State sources funds from development partners, which, through the KMRC, is advanced to primary mortgage lenders or SACCOs for onward lending to end home buyers at affordable single-digit interest rates.
SACCOs enjoy a competitive edge over commercial banks and mortgage firms because their loan facilities are typically unsecured and more accessible.
Housing SACCOs have been able to pool resources, use them for land purchase, and provide finances for construction. There are SACCOS with substantial financial resources that enable them to act as developers of huge real estate projects.
Due to expensive mortgage loans, most individuals have opted to approach co-operatives for finance to self-construct their own homes.
Most borrowers resort towards incremental financing and self-construction loans, which are mainly provided by co-operative societies.
Co-operatives play a crucial role in providing affordable shelter by bridging the gap in the housing finance market in Kenya.
Some of the most significant Co-operatives in Kenya’s housing sector include the National Cooperative Housing Union (NACHU) and Kenya Union of Savings and Credit Cooperative Society Limited(KUSCCO), which provide long-term housing loan products for individuals and co-operative societies and also offer several advantages.
Available figures indicate that there are over 1,980 housing and investment co-operatives in Kenya, with an asset base of Ksh 21 billion providing over 10,000 housing loans. SACCOs provide finance to around 80 per cent to 90 per cent of Kenya’s housing units, while the rest of the players in the financial sector supplies the addition.
With a membership of 14 million, SACCOs have the financial muscle and capacity to provide the much-needed new housing units required to bridge the supply gap.
