Regulated Savings and Credit Cooperative Societies (SACCOs) recorded strong growth in 2025, with their total assets increasing by 12.5 per cent to Sh1.21 trillion from Sh1.08 trillion in 2024.
The growth reflects continued expansion of the regulated SACCO sector and sustained confidence among Kenyans in SACCOs as part of the country’s financial services industry.
SACCO Societies Regulatory Authority (SASRA) Chairperson Jack Ranguma, during the release of SACCO Supervision Annual Report 2025 said the sector’s contribution to Kenya’s nominal Gross Domestic Product (GDP) remained unchanged at 6.63 per cent in 2025.
Ranguma said the stable contribution was in line with the growth in nominal GDP and reflected continued stability in the regulated SACCO sector.
Membership also increased during the year, rising to 7.87 million in 2025 from 7.39 million in 2024.
He said the continued growth in membership demonstrated the confidence Kenyans have placed in regulated SACCOs as part of the domestic financial services sector.
“During the year, the regulated SACCOs exhibited stability in their operations as depicted by key parameters of financial soundness indicators (FSIs) including capital, liquidity, and asset quality,” Ranguma said.
He noted that regulated SACCOs recorded a significant improvement in the quality of their loan books compared with 2024.
“I am encouraged with the continuing mainstreaming of the financial soundness indicators (FSIs) of Regulated SACCOs into the country’s monetary financial statistics as periodically reported to the national and international financial institutions for the assessment of the country’s financial sector stability, thereby underscoring the critical role SACCOs play in the national economy,” Ranguma said.
Despite the growth recorded by the sector, the amount of money deducted from employees but not remitted to SACCOs increased during the year.
SASRA reported that total non-remitted funds owed to regulated SACCOs stood at Sh3.92 billion as of December 31, 2025, up from Sh3.49 billion in 2024.
The number of regulated SACCOs affected by non-remittances also increased from 85 in 2024 to 89 in 2025.
County governments and county assemblies accounted for the largest share of the unremitted funds at 48.09 per cent.
Public universities and tertiary colleges accounted for 18.52 per cent, while state corporations accounted for 12.26 per cent.
The non-remittance of deducted funds can affect SACCO members by delaying the accumulation of savings and repayment of loans, while also creating liquidity and operational challenges for affected societies.
SASRA urged employers to fulfil their statutory obligations by remitting funds deducted from employees within the required timelines.
“The Authority urges all employers to fulfil their statutory obligations by remitting deducted funds promptly in order to safeguard members’ savings and preserve confidence in the entire SACCO industry,” Ranguma said.
Author: Andrew Walyaula
Andrew Walyaula is a seasoned multimedia journalist. Email: [email protected]
