Regulated Savings and Credit Cooperative Societies (SACCOs) disbursed Sh132.09 billion in loans across various economic sectors between March and June 2026.
This is according to Quarterly Statistical and Soundness Report for Quarter Two of 2026, published by the SACCO Societies Regulatory Authority (SASRA).
The report shows that land and housing received the largest share of SACCO financing during the period, with loans amounting to Sh32.10 billion.
Education was the second-largest funded sector, receiving Sh27.83 billion, followed by agriculture, which received Sh25.04 billion.
Trade also accounted for a significant share of SACCO lending, with the sector receiving Sh19.03 billion. Wholesale and retail trade alone accounted for Sh13.25 billion of the loans disbursed to the sector.
SACCOs also continued to support household consumption and social services, which received Sh11.26 billion during the quarter.
The finance, investments and insurance sector received Sh7.62 billion, while manufacturing and servicing activities attracted Sh5.59 billion in SACCO loans.
Mortgage finance accounted for Sh3.14 billion, while human health received Sh3.62 billion during the period.
The distribution of loans demonstrates the wide range of economic activities supported by SACCO financing, from housing and education to agriculture, trade and healthcare.
SACCO Assets Rise to Sh1.25 Trillion
The growth in lending comes amid an increase in the overall size of the regulated SACCO sector.
According to the SASRA report, total assets held by regulated SACCOs had climbed to Sh1.25 trillion by June 2026.
The growth in assets reflects the continued expansion of SACCOs and their increasing importance in Kenya’s financial sector.
SACCOs have traditionally provided members with access to affordable credit for personal needs, business expansion, education, agriculture, housing and other investments.
Despite the growth in lending and assets, the sector continues to face challenges related to loan repayment.
The report places the sector’s Non-Performing Loan (NPL) ratio at 6.56 per cent, which is above SASRA’s regulatory ceiling of 5 per cent.
The elevated NPL ratio means that a significant portion of loans issued by SACCOs is not being repaid within the expected period.
The development could put pressure on SACCOs’ liquidity and profitability if the trend persists.
Author: Andrew Walyaula
Andrew Walyaula is a seasoned multimedia journalist. Email: [email protected]
