Sacco Memberships and Deposits on the Rise
The latest report from the Sacco Societies Regulatory Authority (SASRA) shows that more people are joining Saccos, and Sacco members are increasingly confident in cooperatives. The significant surge in Sacco memberships indicates a growing trust and confidence in cooperatives as more individuals recognize the benefits of joining and actively participating in cooperative societies.
The report indicates that Sacco membership grew by 6.57% from 6.42 million members in 2022 to 6.84 million members in 2023, despite a decrease in the total number of regulated Saccos from 359 to 357 during the same period. This growth reflects continued public trust and confidence in Saccos, giving them a competitive advantage in the financial market.
The total deposits for regulated Saccos increased by 9.95% in 2023, amounting to Ksh 682.19 billion. This positive performance is attributed to enhanced member contributions, diversified investment portfolios, and increased awareness of cooperative saving and lending benefits.
The report also highlights the role of Saccos in the country’s financial economy, with increased public demand for credit services. Gross loans grew by 11.50% in 2023, reaching Ksh 758.57 billion, compared to Ksh 680.35 billion in 2022. The growth in Sacco lending portfolios is mainly driven by demand for personal loans to finance education, small businesses, housing projects, and other financial activities, with Sacco loan interest rates being relatively lower compared to mainstream commercial banks.
The performance of the Sacco industry in Kenya has been influenced by emerging trends in the commercial trading environment, such as the adoption of digital financial services, mobile banking, and online platforms like Pesalink. These developments have enabled Saccos to reach a larger market and attract a younger audience who prefer tech-driven financial solutions.
Overall, Saccos are proving resilient and adaptable in the face of economic challenges. Their growth trajectory reflects increasing trust from members, which creates a positive outlook for the industry in the future.
