Savings and Credit Cooperative Societies (SACCOs) disbursed Sh115.73 billion in loans to key sectors of the economy during the first quarter of 2026, underscoring their growing role in financing businesses, households and productive investments.
According to the Regulated SACCO Industry Quarterly Statistical and Soundness Report for the First Quarter ended March 2026, land and housing attracted the largest share of lending at Sh33.74 billion, followed by education at Sh24.81 billion and agriculture at Sh18.70 billion.
The trade sector received Sh15.74 billion in loans, while consumption and social services accounted for Sh8.82 billion. Finance, investment and insurance received Sh6.63 billion, manufacturing and servicing industries Sh4.50 billion, and the human health sector Sh2.79 billion.
The report notes that regulated SACCOs remain a key source of credit for their members, supporting economic activities across various sectors. Lending is classified using the International Standard Industrial Classification (ISIC) and the Kenya Standard Industrial Classification (KeSIC) to ensure consistency and comparability with national and international statistics.
Land and housing lending recorded the strongest growth during the quarter, rising by 18.01 percent to Sh33.74 billion from Sh28.59 billion in the corresponding period of 2025, representing an increase of Sh5.15 billion.
The latest figures indicate a recovery in property financing after lending declined in 2025. During the first quarter of 2024, SACCOs had disbursed Sh33.40 billion for land and housing before lending fell in the same period of 2025.
The report also shows that property financing remained resilient throughout 2024, with SACCOs disbursing Sh29.59 billion in the second quarter, Sh38.58 billion in the third quarter and Sh36.93 billion in the fourth quarter.
In 2025, land and housing loans gradually recovered, increasing from Sh28.59 billion in the first quarter to Sh29.10 billion in the second quarter, Sh32.70 billion in the third quarter and Sh35.31 billion in the final quarter.
Trade lending also recorded strong growth during the first three months of 2026. SACCOs advanced Sh15.74 billion to the sector, up from Sh13.56 billion in the corresponding period last year, although the amount remained below the Sh16.53 billion disbursed in the first quarter of 2024.
Wholesale and retail businesses received the largest share of trade financing at Sh11.39 billion, followed by transport with Sh2.97 billion, hospitality with Sh1 billion and foreign trade with Sh380 million.
The increase in trade lending came as Kenya’s merchandise trade expanded during the first quarter of 2026. According to the Kenya National Bureau of Statistics (KNBS), exports grew by 10.3 percent to Sh303.8 billion, while imports rose by 14.4 percent to Sh740.8 billion, widening the country’s trade deficit to Sh437.03 billion.
Meanwhile, lending to the manufacturing and servicing industries rose by 16.95 percent to Sh4.50 billion during the review period, up from Sh3.85 billion in the first quarter of 2025, reflecting increased access to credit by businesses in the productive sector.
Author: Andrew Walyaula
Andrew Walyaula is a seasoned multimedia journalist. Email: [email protected]
