SACCO membership and usage in Kenya continue to grow, with the latest 2024 FinAccess Household Survey (SACCO Sub-Sector Report) showing an increase from 9.6 percent in 2021 to 11.7 percent in 2024. The growth is attributed to more households joining SACCOs that offered relatively affordable loans during the high-interest-rate period.
The FinAccess Surveys also highlighted major differences in how Kenyans access SACCO services across counties.
It revealed that Kirinyaga County leads with 35.6 percent of adults accessing SACCOs, while Mandera County records the lowest access at 0.1 percent. This gap reflects the distribution of SACCO infrastructure; Kirinyaga hosts more SACCO headquarters and branches, improving accessibility for residents.
The 2024 Survey was conducted from the year 2021 to 2024; and it is managed by the Central Bank of Kenya (CBK) in collaboration with the Kenya National Bureau of Statistics (KNBS) and Financial Sector Deepening Trust (FSD) Kenya.
According to the report, mobile channels including USSD, mobile apps, Paybill services, POS, and ATMs have become the most preferred access points for SACCO services, recording a usage rate of 70.6 percent. This marks a shift from traditional SACCO touchpoints such as branches and headquarters, which stood at 66.1 percent.
The survey highlights clear demographic differences in service preferences. Rural users showed a significantly higher reliance on traditional channels at 75.1 percent, compared to 51.7 percent of urban users. Older members, particularly those aged 55 and above, also favored traditional access methods, with 80.2 percent using branches compared to 41.8 percent who opted for mobile channels—underscoring a substantial generational gap in technology adoption.
Historically, SACCO members primarily accessed services at SACCO headquarters, but usage of these facilities has sharply declined to 1.1 percent, reflecting the sector’s embrace of digital transformation. Modern service delivery avenues—including agency banking, internet platforms, and mobile technologies have significantly reshaped how members interact with their SACCOs.
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Despite the digital shift, confidence in branch-based services remains strong. Rural branch usage stands at 66.7 percent, notably higher than the 52.0 percent recorded in urban areas. Urban members, however, lead in the adoption of digital payment options such as Paybill services, with 28.5 percent using the channel compared to 14.3 percent in rural areas. The report also notes that women are more likely than men to use Paybill services, likely due to its convenience and ease of use.
Mobile app and USSD usage continues to grow, with urban users leading at 56.8 percent compared to 44.1 percent in rural areas. Gender disparities persist, with men recording a slightly higher usage rate at 51.6 percent compared to 47.8 percent for women. This gap is partly attributed to the perceived complexity of mobile-based technologies.
The survey further reveals why some members discontinue SACCO usage. Voluntary withdrawal (51.7 percent) and inability to maintain accounts (46.2 percent) were the most commonly cited reasons. Urban respondents were more likely to withdraw voluntarily, at 51.1 percent, compared to 47.4 percent in rural areas.
Overall, the findings underscore a rapidly evolving SACCO landscape one driven by technological advancements but still marked by disparities in access and digital literacy. The report recommends targeted training and simplified digital platforms to enhance inclusivity and accelerate adoption across all demographics.
By Obegi Malack
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