Savings and Credit Cooperative Societies (SACCOs) increased lending to the trade sector by 16.1 percent during the first quarter of 2026, reflecting growing demand for financing by businesses.
According to the Regulated SACCO Industry Quarterly Statistical and Soundness Report for the First Quarter ended March 2026, SACCOs disbursed Sh15.74 billion in trade loans between January and March 2026, up from Sh13.56 billion issued during the same period in 2025.
However, the latest lending remained below the Sh16.53 billion advanced in the first quarter of 2024.
The report shows that trade lending fluctuated over the past two years. In 2024, SACCOs disbursed Sh13.85 billion in the second quarter, Sh16.58 billion in the third quarter and Sh16.27 billion in the final quarter.
In 2025, trade loans increased from Sh15.02 billion in the second quarter to Sh16.78 billion in the third quarter before easing slightly to Sh16.63 billion in the fourth quarter.
Wholesale and retail businesses accounted for the largest share of trade financing during the first quarter of 2026, receiving Sh11.39 billion. The transport sector received Sh2.97 billion, while the hospitality industry accessed Sh1 billion. Foreign trade accounted for Sh380 million in loans.
The increase in trade lending comes as Kenya’s merchandise trade expanded during the first quarter of 2026, although the country’s trade deficit widened.
Kenya National Bureau of Statistics shows total exports grew by 10.3 percent year-on-year to Sh303.8 billion, while imports rose by 14.4 percent to Sh740.8 billion, resulting in a trade deficit of Sh437.03 billion.
The report also indicates that lending to the manufacturing and servicing industries increased significantly. SACCOs disbursed Sh4.50 billion to the sector during the first quarter of 2026, representing a 16.95 percent increase from Sh3.85 billion advanced during the corresponding period in 2025.
SACCOs disbursed a total of Sh115.73 by March this year.
Author: Andrew Walyaula
Andrew Walyaula is a seasoned multimedia journalist. Email: [email protected]
