Government securities have emerged as the leading investment choice for regulated SACCOs, with money market funds also gaining traction and now accounting for 9 per cent of total financial investments. According to the Sacco Societies Regulatory Authority (SASRA), this marked a shift in strategy as SACCOs increasingly favour safer, more liquid assets to strengthen their portfolios in a competitive financial environment.
According to the 2024 SASRA’s Sacco Supervision Annual Report, financial investments by regulated SACCOs are largely made up of government securities, placements in other SACCOs, shares in National Cooperative Organisations (NACOs), shares in listed companies, and regulated collective investment schemes such as unit trusts and money market funds.
The analysis shows a sharp increase in SACCO investments in government securities, which rose to KSh 21.35 billion in 2024. This represented 34.87 per cent of total financial investments, up from 27.16 per cent in 2023.
At the same time, placements with NACOs declined significantly, dropping from 41.74 per cent in 2023 to 23.41 per cent in 2024.
The report indicates that SACCOs are divesting from NACOs and increasingly turning to regulated collective investment schemes. Investments in unit trusts and money market funds grew to 9.02 per cent of total financial investments in 2024, compared to just 2.40 per cent in 2023.
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SASRA projects that in the medium to long term, SACCOs will continue to increase their exposure to government securities and regulated collective investments. These options are considered liquid, relatively risk‑free, and can be converted to cash quickly.
The regulator also noted that money market funds have been gaining popularity in Kenya, while the Central Bank of Kenya has made investing in government securities easier through its DhowCSD platform.
By Masaki Enock
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