The land and housing sector has once again topped the charts as the leading recipient of credit from regulated Savings and Credit Cooperative Organizations (SACCOs), according to the newly released SACCO Supervision Annual Report 2024 by the Sacco Societies Regulatory Authority (SASRA).
The report, which was unveiled yesterday, reveals a steady upward trend in sectoral lending to real estate, which accounted for 33.26% of total SACCO loans in 2024 up from 32.76% in 2023 and 32.24% in 2022. This marks the third consecutive year of growth, underscoring SACCOs’ continued prioritization of land acquisition and housing development among their members.
Trailing behind, the education sector received the least support, with its share of SACCO credit dipping slightly to 0.81% in 2024, down from 0.82% in 2023 and 0.83% in 2022. Despite Kenya’s ongoing push for educational reforms and infrastructure expansion, SACCO lending to the sector remains marginal.
Other key sectors saw modest declines or stagnation include: Trade, the second-largest beneficiary, which slipped to 25.56% in 2024 from 25.62% in 2023, Agriculture, a cornerstone of Kenya’s economy, dropped to 10.89%, continuing a downward trend from 11.04% in 2022.
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Consumption and Social Services held steady at 15.21%, reflecting SACCOs’ role in supporting household needs and community welfare.
Transport and Communication saw a slight dip to 10.15%, while Human Health fell to 4.12%,
The data paints a clear picture of SACCOs’ lending priorities, favoring tangible asset investment over service-oriented sectors. Analysts suggest that the sustained growth in real estate lending may be driven by member demand for property ownership and the perceived security of land-based investments.
Meanwhile, the persistent underfunding of education and health sectors could signal a need for policy recalibration, especially as SACCOs continue to play a pivotal role in grassroots financial inclusion.
By Masaki Enock
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