Land and housing consumed the largest portion of loans Saccos issued to members in 2022, the latest data by Sacco Societies Regulatory Authority (Sasra) indicates.
According to the report, Saccos issued 33.24 per cent of loans to housing and land, a sharp increase compared to 26.9 per cent reported a year earlier.
The sub-sector’s loan portfolio stood at Ksh680.35 billion, meaning KSh227 billion was invested in land and housing, with many Kenyans considering owning land or a house as a pricey investment since it only appreciates.
In the recent past, campaigns to encourage members to save towards building a decent and affordable house have been on the rise, a strategy that is working perfectly well.
The Government has identified housing as a key pedestal in accelerating its economic agenda, where the salaried are supposed to forego 1.5 per cent of their salary towards the project.
While the government has promised to deliver 25,000 housing units a year, Saccos have traditionally been identified as key players in enabling the Government to achieve the target.
According to the data, education took 21.98 of the total loans, while members borrowed 13.76 of their loans toward agriculture.
Consumption and social services were allocated 11.09 per cent, trade 10.85 per cent, finance, investments, and insurance 5.07 per cent manufacturing and serving industries 2.18 per cent as human health took 1.82 per cent.
To make owning a house simpler, a number of Saccos have partnered with the Kenya Mortgage Refinance Company.
About 12 Saccos have a shareholding with KMRC to enable them to access mortgages to lend to their members and make the dream of owning a home achievable.
