SACCOs hit Sh1.8 trillion in assets

Savings and Credit Co-operative Societies (SACCOs) in Kenya have continued to grow steadily, with the sector recording a 10 percent growth in 2024 to reach Sh1.8 trillion in total assets.

Members across the country enjoyed an average return of 10 percent in the form of dividends.

Commissioner for Co-operatives Development David Obonyo said the sector remains strong, with the SACCO loan book currently standing at over Sh1.1 trillion, while members’ savings have grown to over Sh1.2 trillion.

“The SACCO movement holds about 30 percent of Kenya’s total savings. I want to assure all Kenyans that we have a strong legal and policy framework in place to protect members’ savings,” said Obonyo.

He was speaking in Nairobi during the launch of pre-Ushirika Day activities organized by the Co-operative Alliance of Kenya (CAK). Obonyo said the government continues to support the sector through the Sacco Societies Regulatory Authority (SASRA), which oversees and regulates SACCO operations to ensure financial stability and protect members’ funds.

He noted that SACCOs in Nairobi alone had paid out more than Sh35 billion to members in dividends and interest this year. To stay competitive, Obonyo emphasized the need for SACCOs to embrace technology. He said the Ministry is working on a legal framework that will allow the creation of a central liquidity and shared services platform. This would help SACCOs pool resources, share digital tools, and lend to each other.

CAK Chairman Macloud Malonza said SACCOs have experienced significant growth and now need to evolve to offer more services. He called for the passing of a new bill that would allow SACCOs to join the national payment system and begin issuing services like bankers’ cheques.

“We want to reach more people, especially in marginalized areas. That’s why this year’s Ushirika Day theme is ‘Driving Inclusive and Sustainable Solutions for a Better World,’” said Malonza.

He added that SACCOs are investing in technology and research to better understand and serve their members. Malonza also noted that leadership training is underway through partnerships like the African Confederation of Cooperative Savings and Credit Associations (ACCOSCA), as SACCOs continue to expand.

“Some SACCOs are growing very fast. In the next three years, we expect some to have assets exceeding Sh100 billion, and that requires strong, professional leadership,” he said.

CAK Chief Executive Officer Daniel Marube said the United Nations has declared 2025 the International Year of Cooperatives in recognition of the movement’s role in improving lives.

He said cooperatives continue to support food security, financial access, affordable housing, clean water, and environmental protection.

“As we prepare for Ushirika Day this year, we will be conducting several community activities, including blood donation drives, tree planting, and exhibitions,” said Marube.

Ushirika Day, celebrated globally every July, recognizes the impact of cooperatives in promoting social and economic development.