According to recent figures from the Central Bank of Kenya (CBK), Saccos have outpaced traditional banks in terms of loan disbursement. Between January and August of this year, Saccos increased their lending by Sh46 billion, reaching a total of Sh749 billion, up from Sh703 billion, in contrast to a decline in lending from commercial banks.
The 2023 Sacco Supervision Annual Report, published by the Sacco Societies Regulatory Authority (SASRA), indicates a significant growth in the Sacco sector. The report highlights that the gross loans in the Sacco sub-sector surged by 11.50% in 2023, amounting to Ksh 758.57 billion, up from Ksh 680.35 billion the previous year. This increase in lending activity by Saccos is largely attributed to the high demand for personal loans, which are used for purposes such as education, small business operations, housing projects, and other financial needs. Notably, the interest rates offered by Saccos on loans are generally lower than those provided by conventional commercial banks, making them an attractive alternative for borrowers.
