GCR Ratings reaffirms A-(KE) rating for Kenya’s third-largest deposit-taking SACCO

Credit ratings agency GCR Ratings has reaffirmed the Kenya National Police Deposit Taking SACCO Society Limited’s national long-term issuer rating at A-(KE) and short-term rating at A2(KE), with a Stable Outlook.

The rating reflects the institution’s solid financial footing.

The SACCO — ranked third among 176 licensed deposit-taking SACCOs in Kenya — grew its total assets to KSh 66.4 billion in 2025, up from KSh 59.8 billion the previous year. Its loan book expanded by 10.4% to KSh 57.2 billion, while membership climbed to 76,280.

Despite this growth, the SACCO’s market share held steady at 5.5% across assets, deposits, and loans — a sign of consistent, if not expanding, market presence.

One of the SACCO’s standout qualities is its capital position. Its core capital-to-total-assets ratio stood at 33.0% — nearly double the industry average of 17.9% — and comfortably above the regulatory minimum of 8.0%. GCR noted full provisioning coverage of non-performing loans as an additional strength.

The SACCO’s non-performing loan (NPL) ratio improved from 1.7% in 2024 to 1.1% in 2025, driven by intensified recovery operations and the deployment of dedicated collections staff. Borrower concentration risk is also low, with the top 20 borrowers making up less than 1% of the total loan book.

Liquidity Healthy, Funding Stable

The SACCO’s liquidity ratio rose to 33.0% — more than double the 15.0% regulatory minimum set by the SACCO Societies Regulatory Authority (SASRA). While this is lower than the 61.0% recorded in 2023, GCR attributed the decline to a deliberate strategic shift toward higher-yielding member loans rather than any weakening in liquidity management.

Funding remains stable, with nearly 90% of member deposits in non-withdrawable accounts totalling KSh 36.6 billion. The deposit base is well spread, with the top 20 depositors holding just 1.3% of total deposits.

GCR flagged several constraints on the SACCO’s competitive position: a limited product range, heavy reliance on interest income, and concentration within a single member segment — the Kenya Police Service.

GCR Ratings is a pan-African credit ratings agency headquartered in Johannesburg, South Africa.