AFFORDABLE HOUSING
SACCOs (Savings and Credit Cooperative Organizations) continue to be the preferred source for affordable and accessible loans for individuals looking to become homeowners. According to the 2025 Economic Survey by the Kenya National Bureau of Statistics (KNBS), 31.8% of real estate firms partnered with SACCOs for financing arrangements in 2023, highlighting the increasing significance of SACCOs compared to other financial institutions.
A survey conducted by the Sacco Societies Regulatory Authority (SASRA) last year also highlighted how SACCOs are positioning themselves as key players in promoting inclusive and sustainable homeownership. The findings were published in the Sacco Supervision Annual Report 2023, which was released last year.
According to the report, SACCOs have been instrumental in the Kenyan economy by offering affordable lending options. A detailed Sectoral Lending Report revealed that regulated SACCOs disbursed a cumulative total of Ksh 460.47 billion, with a significant portion—Ksh 124.16 billion, or 26.97% of total loans—allocated to the land and housing sectors.
The report indicated the positive impact that SACCOs have on enhancing the financial well-being of their members and supporting key sectors of the economy. About 11 SACCOs have partnered with the Kenya Mortgage Refinancing Company (KMRC) to provide affordable mortgages at single-digit interest rates, helping members achieve their dreams of owning decent homes—dreams that were previously out of reach due to expensive mortgage options that excluded many.
Affordable housing has been a cornerstone of the government’s agenda. The cooperative movement plays a significant role in enabling homeownership. As community-based organizations, cooperatives can revolutionize the housing sector through community-oriented, market-based solutions. Cooperatives help members achieve greater prosperity—both directly, through access to credit and higher earnings, and indirectly, by facilitating financial education, mentorship, and training.
Various studies show that members of cooperatives report making better decisions both at home and in their businesses. A World Bank report from last year indicated that cooperatives fulfill 80% of the housing needs in the country, making homeownership more affordable for the middle and low-income population.
Homeownership promotes economic equality, as it has been argued that, on average, homeowners earn higher incomes and tend to have greater savings than renters. The SASRA sectoral report further emphasized the social and economic benefits of being a member of a cooperative society. Access to affordable loans is a major advantage for SACCO members, with SASRA noting that, in addition to offering land and housing loans, SACCOs also finance other sectors.
