The latest Sacco Supervision Annual Report for 2023 reveals that total loans disbursed by Saccos amounted to KSh 758.57 billion. This represents an 11.50% increase from the previous year, highlighting a growing demand for credit services offered by regulated SACCOs. The increase in loans was primarily funded by savings and deposits from members, which grew by 9.95% to reach KSh 682.19 billion in 2023, solidifying the role of regulated SACCOs in mobilizing domestic savings.
The total membership of regulated SACCOs also grew by 6.57% to reach 6.84 million members in 2023.
According to Sacco Societies Regulatory Authority (SASRA) Board Chairman Jack Raguma, the growth in membership reflects an increasing trust and confidence in regulated SACCOs, contributing to the deepening of financial inclusion.
In 2023, regulated SACCOs employed a total of 11,883 individuals, with a significant portion being on permanent, pensionable, or long contractual terms. However, SASRA warns that the use of electronically and digitally enabled channels for financial services delivery may lead to a static or decreasing growth in the number of employees within the regulated SACCO system over the long term, as part of efforts to reduce operational expenses.
Despite the overall positive growth, SASRA noted a concern regarding the concentration of the SACCO industry’s assets and deposits, with a large portion being controlled by a small number of regulated SACCOs. Specifically, 53 regulated SACCOs control 73.34% of the industry’s total assets, leaving the remaining 304 regulated SACCOs to share the remaining 26.66%. Similarly, 39 regulated SACCOs control 65.27% of the total deposits, while the remaining 318 regulated SACCOs share the remaining 34.73%.
