Kenya has established itself as Africa’s leading credit union economy, now ranked 14th globally in terms of total assets, according to the latest World Statistical Report by the World Council of Credit Unions (WOCCU). This rising status marks a significant moment, underscoring the increasingly vital role played by Savings and Credit Cooperative Societies (Saccos) in mobilizing domestic savings, facilitating access to credit, and promoting inclusive economic development.
Approximately two out of every ten working adults in Kenya are members of regulated SACCOs, making the cooperative movement one of the country’s most influential grassroots financial ecosystems. The recently released Annual Sacco Supervision Report 2024 by the SACCO Societies Regulatory Authority (SASRA) paints a compelling picture of sustained growth, resilience, and expanding impact across the sector.
In 2024, Kenya’s regulated SACCOs showed remarkable performance, with strong upward trends across all key performance indicators (KPIs). Total assets in the sector increased by an impressive 10.72%, climbing to Ksh 1.08 trillion in 2024, up from Ksh 976.17 billion in 2023. This growth accelerates from the 9.17% asset increase recorded in 2023, further solidifying SACCOs’ role in national financial intermediation.
Total deposits, including Back Office Savings Activities (BOSA), Front Office Service Activities (FOSA), and fixed deposits, grew by 9.86%, reaching Ksh 749.43 billion in 2024, up from Ksh 682.19 billion the previous year. Gross loans issued by SACCOs surged by 11.41%, hitting Ksh 845.11 billion in 2024, compared to Ksh 758.57 billion in 2023. This increase reflects a growing credit demand among members, particularly for education, housing, agribusiness, and microenterprise financing.
Notably, retained earnings and capital reserves increased by 21.69%, a sharp rebound from the marginal 0.10% decline experienced in 2023. This indicates improved prudential management and profitability across the sector.
The sector’s success was primarily driven by Deposit-Taking (DT) Saccos, which recorded the highest growth metrics in 2024. DT Saccos saw an impressive 13.44% increase in total assets, a significant jump from the 9.09% growth observed in 2023. In contrast, Non-Withdrawable Deposit-Taking (NWDT) Saccos faced a downturn, with total assets declining from Ksh 139.06 billion in 2023 to Ksh 131.29 billion in 2024. This decline was reflected across key indicators: total deposits fell from Ksh 107 billion in 2023 to Ksh 100.11 billion in 2024, and gross loans decreased from Ksh 106.30 billion to Ksh 100.75 billion, indicating a shrinking lending portfolio.
The disparity in performance highlights the growing maturity and regulatory compliance of DT Saccos, which benefit from stronger governance frameworks, diversified portfolios, and access to advanced digital platforms.
The total number of regulated Saccos in Kenya is 355, following significant regulatory changes in 2024. Three NWDT SACCOs successfully transitioned to DT SACCO status by meeting the stringent regulatory thresholds set by SASRA. Meanwhile, two NWDT SACCOs had their licenses revoked due to non-compliance and underperformance, reflecting SASRA’s ongoing commitment to maintaining sector integrity and protecting members.
