The membership in the country’s Savings and Credit Co-operatives (SACCOs) has increased from 6.42 million in 2022 to 6.84 million in 2023, borrowing over Ksh700 billion within a span of one year.
According to the recently released 2023 Annual Sacco Supervision Report by SASRA the increase in the 357-Regulated Saccos translated to 6.57 per cent increase, with the loan portfolio increasing by 11.50 per cent to reach Ksh758 billion though being a marginal decline from 11.67 per cent in 2022.
Cooperatives, Micro, Small and Medium Enterprises (MSMEs) Cabinet Secretary Wycliffe Oparanya noted that although there was an increase in the growth rate of deposits by 9.95 per cent in 2023 compared to 9.84 per cent in 2022; the growth remains behind that of the loan portfolio which recorded a 11.50 per cent growth.
SASRA board Chairman Jack Ranguma observed that the increase in membership of regulated SACCOs is a further testament of the increasing awareness and trust that Saccos can provide a viable financial intermediation, adding that the report provides insights to operations of regulated Saccos in the country.
“Besides, the report provides a basis for review and development of policy interventions to address emerging challenges in the Sacco industry as identified in the course of our supervisory endeavors,” said Ranguma.
State Department Co-operatives Principal Secretary Patrick Kilemi assured Sacco members that deposits of the Saccos are safe and the government will ensure all their money are protected.
The SACCO Authority has been consistently releasing the annual report since the commencement of its operations in 2010. It called for adequate financial resources to achieve policy outcomes and effectively oversight the regulated SACCO industry.
By Obegi Malack | obegimalack@gmail.com
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