Over 6,000 new members joined SACCOs in 2023 amid rising popularity

More than 6,000 people joined SACCOs (Savings and Credit Cooperative Organizations) in Kenya last year.
This is a 6.57 percent increase from 2022, according to the latest report by the Sacco Societies Regulatory Authority (SASRA).
The total SACCO membership grew from 6.42 million in 2022 to 6.84 million in 2023.
Many Kenyans are opting for SACCOs over traditional banks due to favorable interest rates and the attractive dividends earned at the end of the year.
Additionally, SACCOs are known for offering easier access to loans. Members can become eligible for loans just three months after joining and regularly contributing.
Technology has also played a key role in the growing popularity of SACCOs. Many SACCOs have embraced mobile money and digital credit services by partnering with fintech companies.
They have also collaborated with commercial banks to offer ATM services, debit and credit cards, Pesalink, and cheque issuance and clearance.
SASRA CEO Peter Njuguna noted that despite the reduction in the number of regulated SACCOs—from 359 in 2022 to 357 in 2023—membership continued to grow.
“The growth in membership despite the drop in the number of SACCOs shows that members of struggling SACCOs, whose licenses are revoked, often join stronger SACCOs with more robust financial positions,” said Njuguna.
The report further shows that the number of large SACCOs with assets exceeding KSh5 billion increased from 47 in 2022 to 53 in 2023.
These large SACCOs now account for 73.34percent of the total assets market share, up from 70.05percent in 2022.
In contrast, the remaining 304 smaller SACCOs with assets below KSh5 billion hold just 26.66percent of the total market share, raising questions about their long-term sustainability.